14/01/2010 - 15:43

$105m BHP boost for NRW Holdings

14/01/2010 - 15:43

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BHP Billiton has boosted NRW Holdings contract value for work at the Rapid Growth Project 5 by $105 million, taking the total amount to close to $200 million for the mining services company.

$105m BHP boost for NRW Holdings

BHP Billiton has boosted NRW Holdings contract value for work at the Rapid Growth Project 5 by $105 million, taking the total amount to close to $200 million for the mining services company.

NRW yesterday went into a trading halt, pending details of a significant contract variation. Shares in the company last traded at $2.05.

The Perth company today said the total variation of the existing contract, which is a joint venture with Laing O'Rourke and John Holland, is $145 million, with NRW's share at $105 million.

The contract is for the duplication of the southern rail line within the project.

When the RPG5 contract was first awarded, the work was valued at about $200 million, with NRW's portion at $90 million.

NRW said it will deploy an additional 170 personnel to the site, taking the total number of NRW employees there to 400.

The contract variation is on the back of a $200 million contract win from Rio Tinto last month for the design, development and operation of the Western Turner Syncline Section 10 deposit.

The Rio contract is a joint venture with the traditional landowners, the Eastern Guruma people.

NRW is also carrying out bulk earthworks at Port Haven for BHP's RPG5, with that contract valued at $29 million, which was boosted late last year.

NRW has experienced a stellar share price surge over the past year, jumping from 22 cents a year ago to its last traded price of $2.05.

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