PRESS DIGEST-Australian Business News - May 1

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

An independent expert's report on investment fund Macquarie Communications Infrastructure Group (MCG) (MCG.AX) is believed to contain warnings that the company may struggle to refinance debt and be forced to undertake a large equity raising. The report has been conducted by consultants Deloittes for the Canadian government pension fund CPP Investment Board, in preparation for CPP's A$1.4 billion takeover bid for MCG. Page 41.

--

Telecommunications company Telstra (TLS.AX) has called on the Federal Government to set firm dates for the renewal or auction of licences for radio frequency spectrum used for mobile telephony and broadband. Telstra yesterday supported claims by the Australian Mobile Telecommunications Association that the industry has a pressing need for more spectrum, and warned that further uncertainty would harm the economy. Telstra said three-quarters of internet access will be performed via mobile devices within 10 years. Page 41.

--

Mining company BHP Billiton (BHP.AX) will today release an environmental impact statement (EIS) for the proposed expansion of its metals and uranium project at South Australia's Olympic Dam. The EIS for the A$15 billion project is more than 1000 pages long and comes with an accompanying DVD to help explain the complex mining development. Despite the release of the EIS, the project is unlikely to start in the immediate future, with BHP having laid off around 200 workers from the project this year. Page 42.

--

Mining company Lihir Gold (LGL.AX) yesterday released its March-quarter production report, including record production of 318,000 ounces of gold. The result was above previous guidance, and the company reaffirmed its full-year guidance of producing between 1.04 million and 1.2 million ounces. Despite the strong overall performance, there are concerns about the company's Ballarat gold mine in Victoria, with analysts raising the possibility that the mine's value will suffer a write-down in first half results. Page 42.

--

THE AUSTRALIAN (www.theaustralian.news.com.au)

West Australian-based BankWest yesterday posted a A$139 million loss for the 2008 calendar year. BankWest, which was recently acquired by Commonwealth Bank of Australia (CBA) (CBA.AX) from the Halifax Bank of Scotland (HBOS), was forced to increase its provisions from A$87.8 million to A$825.3 million as part of the sale. However, CBA will be able to claim back around A$400 million from HBOS as part of the original sale agreement. CBA chief executive Ralph Norris maintained that BankWest would still "create significant value for the CBA group." Page 17.

--

Melbourne-based bauxite producer Alumina (AWC.AX) yesterday announced its intention to raise up to A$1.02 billion in a discounted rights issue. Alumina chief executive John Bevan said that it would issue a seven-for-10 non-renounceable entitlement offer at A$1-a-share in an effort to refinance around US$520 million of debt due in 2010. Mr Bevan said the "uncertain times" had forced the company "to address our 2010 risk of not being able to renew our debt facility." Page 17.

--

Coal mining company Gloucester Coal's (GCL.AX) major shareholder, the Hong Kong-based Noble Group, is to continue with its push to purchase the company despite a ruling by the takeover regulator which prevents Gloucester's shareholders from voting on a merger. Gloucester's board yesterday said it still favours a merger with mining company Whitehaven Coal (WHC.AX), despite Noble offering a higher cash bid of A$396 million. Noble director Will Randall says the ruling "puts the control back into the same people who created the lockdown." Page 18.

--