Webjet signs global expansion deal, 85% of Queensland coal mines still shut: Economy roundup

Online travel booking agency Webjet has signed a number of new deals designed to increase its services overseas, including a partnership with call centre and services firm World Aviation Services Limited Malta.

The company said in a statement the 50% joint venture will “facilitate the entry into certain emerging European markets in 2011”.

The company also announced that its Singapore website will commence by the end of the month, with its Canadian site also set to begin operations this week.

Webjet has also entered into a “major hotel supply arrangement” with Hotel Club, which provides a total of over 100,000 hotels worldwide. Managing director David Clarke said in a statement the deals will help the company expand overseas.

“The combination of these significant partnerships will significantly propel our development over the next several years.”

“As part of these plans we are also substantially strengthening our management resources to ensure that full focus is maintained on our core Australian business, simultaneously with the necessary resources to rapidly develop our international operations.”

The company also announced several management changes, including chief executive Richard Noon taking up responsibility of group finance and IT development.

Lend Lease wins government approval for community development

Developer Lend Lease has been awarded state government approval of its concept plan for the Calderwood urban development in Illawarra.

Lend Lease chief executive and managing director Steve McCann said it would provide “a much needed supply of affordable land and housing in the Illawarra region”.

“This is a prime location for urban development and we are looking forward to working with the NSW Government and Shellharbour and Wollongong Councils to deliver long term economic and social benefits for the Illawarra region,” he said.

Only 15% of coal mines operating

The Queensland Resources Council has said only 15% of the 57 coal mines in Queensland are fully operational following the floods, with 60% operating under restricts and 25% still closed.

While QR National has been working to open coal lines, QRC chief Michael Roche has said there are still major problems.

The damage to the mining industry is estimated at about $2.3 billion, with rail lines and ports closed during the past few weeks. Many pits have also been flooded.

“However, it is also clear that the restoration of rail services to mines west of Brisbane and in the Surat Basin are going to take much longer,” Roche said.

Shares flat as US market closed

The Australian share market has opened flat today following a weak lead from European stocks overnight, with US markets closed due to the Martin Luther King public holiday.

The benchmark S&P/ASX200 index was up to 10 points or 2.2% to 4773.5 at 12.20 AEST, while the Australian dollar maintained its position at US99.3c.

AMP shares lost 0.8% to $5.14, as Commonwealth Bank shares gained 0.2% to $51.11. NAB lost 0.2% to $24.10 as Westpac rose 0.6% to $22.33.

High dollar hurting Moly Mines

Moly Mines has said in a statement its molybdenum project in Western Australia is in jeopardy due to the high Australian dollar.

The company also said the Spinifex Ridge project’s future will depend on more favourable exchange rates.

“This has a pronounced effect on forecast future project cash-flows and the projects valuation and may present challenging economic hurdles for the project,” the company said in a statement.

Singapore Exchange on track to complete merger

Singapore Exchange has recorded a 14% rise in December quarter profit, with the company also saying the regulatory process relating to the ASX merger is proceeding well.

“We continue to work with the relevant stakeholders, including (Australia’s) Foreign Investment Review Board, with the aim of completing the proposed combination in 2011,” SGX chief executive officer Magnus Bocker said in a statement.

The company reported it earned $64.1 million in adjusted net profit during the December quarter.

Goodman Fielder chief steps down

Goodman Fielder chief executive Peter Margin has said he will step down from the company at the end of April to “pursue the next stage of his career”.

“Peter leaves to pursue the next stage of his career and, on behalf of the Board and management, I thank him for his significant contribution to Goodman Fielder and wish him well for the future,” chairman, Max Ould said in a statement.