Kwinana engineering and fabrication firm Ausclad Group of Companies Ltd has secured one of its largest contracts on the $2 billion Boddington Gold Mine project, which has provided work opportunities for a wide range of contractors in Western Australia.
Kwinana engineering and fabrication firm Ausclad Group of Companies Ltd has secured one of its largest contracts on the $2 billion Boddington Gold Mine project, which has provided work opportunities for a wide range of contractors in Western Australia.
Ausclad, which is listed on the Singapore Stock Exchange under the name Ausgroup Ltd, last week reported its second year of rapid growth in sales and profit.
Sales revenue increased 17 per cent to $281 million, while net profit jumped 77 per cent to $19.9 million.
The result included an 11-month contribution from its Singapore subsidiary Cactus Engineering, which specialises in servicing the sub-sea oil sector.
Cactus contributed $28.9 million in revenue.
Ausclad’s strong results come at a time when companies in the steel fabrication sector have expressed concern about the trend towards offshore manufacturing of process plants and infrastructure.
A notable example was the state government’s recent decision to award a contract for a new floating dock for the Australian Marine Complex, which involves most of the fabrication occurring in Vietnam.
Despite this trend, Ausclad managing director Stuart Kenny said the large volume of work opportunities meant he was optimistic about Ausclad’s prospects.
Mr Kenny said an estimated $53 billion was due to be spent on infrastructure and resources projects in WA over the next few years.
Similarly, he said an estimated $US52 billion ($A65 billion) was due to be spent in the global sub-sea oil sector over the coming five years.
Cactus recently bought an additional property in Singapore for $8.9 million to triple its land area to support further expansion in this sector.
Another leg of Ausclad’s growth strategy was the recent formation of a joint venture with Europe’s Hertel Group to bid for insulation and fireproofing work on two giant oil projects in Singapore – Exxon Mobil’s $US10 billion SPT expansion project and Shell’s $US4 billion eastern petrochemicals complex project.
Ausclad’s Boddington contract, worth $60 million, involves fabrication and on-site installation services at the new gold ore processing plant.
The contract scope includes installation of four of the largest ball mills in the Southern Hemisphere, for which Ausclad will mobilise one of the biggest cranes in Australia.
The Boddington expansion project involves reopening and expanding the gold mine, 130 kilometres south of Perth, following its closure in 2001.
More than 25 contractors, including earthmoving contractors BGC and Brierty and concreting contractors Georgiou Group and Macmahon Holdings, have so far been awarded contracts on the project, jointly owned by Newmont Corporation (66.7 per cent) and AngloGold Ashanti.
The project, which is jointly managed by engineering firms Aker Kvaerner, Clough Ltd and Murray & Roberts Ltd, commenced in mid 2006 and is due to be completed in late 2008 or early 2009.
The mine is expected to produce up to one million ounces of gold per year.
