20/09/2021 - 10:00

Austin wins $30m in contracts

20/09/2021 - 10:00

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David Singleton-led Austin Engineering has won a suite of new contracts, including with mining services companies NRW Holdings and Perenti.

Austin has won its first contract with NRW Holdings. Photo: Austin Engineering

David Singleton-led Austin Engineering has won a suite of new contracts, including with mining services companies NRW Holdings and Perenti.

Austin has been contracted to supply truck bodies and other equipment to NRW Civil & Mining and Perenti, which will be manufactured at Austin’s Kewdale facility in Perth.

The contracts are worth about $15.5 million.

In Chile, the company secured a $10 million, three-year mining equipment support contract to supply truck bodies and buckets to Sierra Gorda’s open-pit copper and molybdenum mine.

Austin also won a $4.5 million contract to supply five underground mine chute structures to PT Freeport Indonesia’s Grasberg gold and copper mine in Papua, Indonesia.

The structures will be manufactured at Austin’s Batam facility. It expects to finish the work this year.

Austin, which appointed David Singleton as its new chief executive in May, said the Asia Pacific region accounted for almost 70 per cent of the company’s revenue in fiscal 2021.

“We are buoyed to have recorded such a strong month of contract wins around the globe, including a new customer NRW Holdings,” Mr Singleton said in an ASX announcement.

“We are delivering the highest quality mining equipment with proven efficiency gains for customers, and at competitive pricing.

“We are expecting strong order flow to continue through this half of the year.”

He said Austin’s global strategy was to employ more innovation and technology-led design solutions and introduce more products in the coming years.

The company recently began upgrades at its Kewdale facility, which are intended to reduce the time taken to manufacture and deliver its products to clients.

That will be followed by upgrades to Austin’s Batam facility in Indonesia.

The contractor also announced today it had finalised a $35 million debt refinance with HSBC.

Austin's shares were up 2.2 per cent at 11:24am AEST to trade at 24 cents.

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