Decmil wins more work at Roy Hill

Decmil Group has won about $40 million worth of work at Hancock Prospecting’s Roy Hill iron ore project in the Pilbara, building on its portfolio of port, rail and fuel infrastructure work already under way at the site.

The scope of work involves Decmil providing underground services including installation of conduits, pits, fire water pipework and HV cables, and structural mechanical work on the train load-out facilities and tailing and desanding systems for the projects EPC contractor, Samsung C&T.

It follows news yesterday that the project is on track to begin shipping iron ore in about six months.

Decmil chief executive Scott Criddle said the company’s existing projects at Roy Hill were progressing well.

The contract win will be welcomed by the engineering and construction contractor, which recently posted a 4.9 per cent fall in first-half profit, to $24.3 million, as a result of lower construction margins in the tough market.

In 2013, the company was awarded a $37.5 million contract for the design and construction of diesel fuel infrastructure at Roy Hill, and about $71 million worth of contracts to build rail and port facilities at the project, along with associated infrastructure.

Decmil shares were 5.4 per cent higher at $1.25 per share at 9:50am.