Co-Operation Agreement between Sedgman Limited, Guoxin Tendering Group, Guoxin International Development, and Max Christmas Pty Ltd

Monday 10 March 2014

On Monday 10 March 2014, an Agreement was signed in Beijing at the office of Guoxin Group, between Sedgman Limited, Guoxin Tendering Group, Guoxin International Development, and Max Christmas Pty Ltd.

Sedgman Limited is a publicly listed company with expertise in the design, construction and commissioning of minerals processing plants projects within Australia and internationally.  Leighton Holdings holds a 35.5% investment in Sedgman.  Sedgman currently has a three year pipeline of AUD$4.3Billion in the minerals processing industry worldwide and in recent years, has procured over $150Million of services and equipment directly from China in support of its international operations.

Guoxin International Development (GID) is the investment vehicle and an international business arm of Guoxin Group, the largest tendering and procurement company in China, with over 1,000 professional staff working in 31 offices in various cities in China, focused on State large natural recources, energy and public utilities related infrastructure development projects, working closely with the Chinese central governments, leading Chinese major banks, financial and investment institutions, leading Chinese natural resources, energy and related infrastructure investors, developers and EPC contractors, and leading Chinese engineering and technical advisory institutions.  Since it was founded, the total contract value of procurement through tendering is over 2 Trillion Chinese RMB (equivalent to AUD$360Billion).

Max Christmas founded his own company in Australia in 1971 and has been involved in Asia since 1981 with major development corporations.  He has been involved in some $6Billion worth of property dealings since his company's inception.  He has the ability to source deals through extensive relationships;  the capability for acquisition and deal execution;  and significant operational and asset management expertise.

This agreement will provide Sedgman with the opportunity to strengthen competitiveness in the Engineeering, Procurement and Construction market and provide Guoxin with the opportunity to expand their procurement services.

Max Christmas advised that this agreement is a significant step for business relations between China and Australia.  A senior Delegation from Guoxin Group visited Australia in March 2013, after visiting senior officials of the Federal and State Governments.  In March, they signed an agreement with Max's company and outlined their new direction in developing the relationship with Australia's mining industry.  Max, who had previous experience with engineers through his connections with Japanese and Chinese companies, was aware of their importance in expediting efficiency.  The two countries, as well as the rest of the world, have a massive need to create employment for their people.  The key is efficiency, with both countries to interlock the infrastructure necessary to supply the certainty of a level playing field for a period of 25 years.

William Wu of GID expressed that this agreement will take GID's business to another level and we see this as an opportunity for GID to go international together with Guoxin's investment arms, such as Infrastructure Capital International Fund, working together with Infrastructure Capital Group, which is one of the leading Australian investment management companies with its investment in infrastructure Australia wide (over AUD$4Billion).  Mr Yuan Bingyu of Guoxin Group added that in addition to the current business for tendering and procurement, one of Guoxin Group's important business strategies is to bring this business to the international market, as well as develop its financial and investment business.  Late last year Guoxin Group and China Development Bank formed Urban Transportation Fund Management Company to step into the financial and investment business, so as to support its current business for international trading.

Nick Jukes, Chief Executive Officer of Sedgman Limited, indicated he was excited by the opportunity to work with Guoxin, a reputable and successful tendering group, to optimise the Company's overall procurement strategy.  Mr Jukes said he is confident that the network and wealth of experience provided by Guoxin will assist the Company to continue to deliver flexible, high value solutions for their clients globally.

The cooperation between Guoxin and Sedgman has received significant support from Max Christmas, together with the Australian Federal Government and Queensland Government.  Prime Minister Tony Abbott and Premier Campbell Newman both sent letters of support to Mr Yuan Bingyu, President of Guoxin Group, and Max Christmas respectively, to express their congratulations on the significant achievement for Guoxin Group to enter the Australian market via GID.