Fortescue awards $145m Iron Bridge contract

The engineering and construction arm of ASX-listed WestStar Industrial has secured its biggest contract to date, for work on Fortescue Metals Group's Iron Bridge magnetite mine in the Pilbara.

WestStar’s SIMPEC has been tasked with building the wet process plant and associated infrastructure at Iron Bridge, where production is scheduled to start in the second half of 2022.

The contract is valued at $145 million, which WestStar Industrial managing director Mark Dimasi says is SIMPEC's biggest contract win.

WestStar expects more than 500 personnel are required to complete the work, which includes module, tank and mechanical installation as well as large bore piping and electrical and instrumentation services.

The company acquired SIMPEC in mid-2017.

“To achieve this in just over four years of being part of the group is a remarkable achievement,” Mr Dimasi said.

“Its proof that our people and culture are building a reputable company that clients trust.

“We look forward to further developing our relationship with the Iron Bridge joint venture and thank them for the opportunity to deliver such a high-profile project.”

WestStar closed up 13.3 per cent on today's news to trade at 3.4 cents per share.

Its SIMPEC business is already completing work on Fortescue’s Chichester and Solomon hubs, under contracts worth a combined $9.1 million.

That includes a $7 million subcontract from Central Systems to install electrical, instrumentation and communication infrastructure at Fortescue’s Solomon Central Facilities Workshop.

Those works are due to be completed in the current quarter.

The other contract was awarded from Fortescue to remove two primary crushers at the Cloudbreak mine (part of the Chichester Hub).