Civmec wins $23m Monadelphous construction contract

Northbridge-based VDM Group Ltd subsidiary Civmec Construction and Engineering Pty Ltd has been awarded a $23 million construction contract by Monadelphous Group Ltd for work at Xstrata's Mt Isa mine.

The full text of a VDM announcement is pasted below

VDM Group Limited (ASX: VMG) is pleased to announce that its subsidiary Civmec Construction and Engineering Pty Ltd has been awarded a construction contract at Xstrata's Mount Isa mine for Monadelphous Group Limited.

The project involves the construction of foundations for two ball mills, a sag mill and miscellaneous works. The foundations and miscellaneous works will use 10,000m3 of concrete of which 1,800m3 will be precast with a number of the panels weighing in excess of 50 tonnes.

The project, valued at $23 million, is scheduled to commence immediately and will employ up to 50 people.

Commenting on the project, VDM Chief Operating Officer - Construction, Mr Stuart Cuthbert, said: "Civmec is pleased to secure this contract with Monadelphous which is a high-quality contractor and respected client of Civmec. This project provides ongoing work and further opportunities for Civmec in Queensland where we have just completed a $30 million joint venture for the PCQ at Abbott Point."

Civmec has had significant experience on the Mount Isa mine site, previously having a regional office there for four years while working for MIM Limited.

Queensland Operations Manager, Mr Mike Buchanan, said: "This new project provides an excellent opportunity to continue our close relationship with Monadelphous and re-establish ourselves in the Mount Isa region".