Ausgroup wins $100m contract

Perth-based engineering and construction contractor AusGroup has added to its order book by winning a $100 million contract with BHP Billiton Iron Ore.

AusGroup, which is listed on the Singapore stock exchange but run from Perth, said its Australian subsidiary, AGC Industries, was awarded the contract for the structural, mechanical, piping and heavy haulage of the Rapid Growth Project 5 at BHP's Yandi operation.

The scope of work includes construction of an ore handling plant, stockpile and conveyor systems; fabrication of 2,000 tonnes of conveyor components; and transportation of 43 structural modules - ranging from 100 to 300 tonnes - from Port Hedland to the Yandi mine site, located 140km northwest of Newman in Western Australia's Pilbara region.

Mobilisation to site will begin in February 2010.

AusGroup's Managing Director John Sheridan said "We are delighted to secure this contract, on such an important project. We are looking forward to delivering this project to the complete satisfaction of our client."

With this contract, the Group's order book is $500 million.

Other recent wins include $64 million of contracts at Woodside's Pluto LNG project, including a $34 million contract for onshore painting and insulation.

Earl;ier this month, the group reported a slump in first-quarter net profit to $1.7 million on revenue of $73.9 million.

It attributed the decline in revenue to the impact of reduced activity levels in the Group's Australian operations caused by the Global Financial Crisis; and client driven schedule changes resulting in delays to several Australian contracts.