Gindalbie inks AGC for major Karara works

Gindalbie Metals says it is in the home straight for the commissioning of its Karara iron ore project in the Mid West, after signing on AGC Industries as its preferred supplier for structural mechanical piping works.

Under the new contract, AGC, which is a subsidiary of AusGroup, will construct the main concentrator buildings, mechanical installations, structural steel and piping and conveyers for the Karara project.

AGC has already been working at Karara for the past four months on an early works agreement, first announced in March.

Gindalbie managing director Tim Netscher said the new deal built on a strong working relationship between the two firms.

“AGC have been on site for some time and have proven their capabilities and most importantly shown excellent safety standards,” Mr Netscher said.

“The SMP activities will see a rapid transformation of the landscape at Karara as the components of the concentrator plant start to come together.

“The on site workforce will peak and construction activies will reach their climax as we move towards our goal of commissioning the world-class Karara project.”

AGC is currently 80 per cent through the early works program, and has around 60 workers on site. It expects to have a peak construction workforce of around 400.

Gindalbie is aiming to commission the main concentrator plant at Karara by early next year.

At close of trade today Gindalbie stocks had dropped 2 cents, to trade at $0.66.