11/08/2008 - 15:03

Iron boom lifts Mount Gibson, Worley

11/08/2008 - 15:03

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The surging iron ore industry delivered a big boost today for West Perth-based miner Mount Gibson Iron Ltd, which reported a doubling of profit, and engineering company WorleyParsons Ltd, which signed a $260 million contract with Fortescue Metals.

Iron boom lifts Mount Gibson, Worley

The surging iron ore industry delivered a big boost today for West Perth-based miner Mount Gibson Iron Ltd, which reported a doubling of profit, and engineering company WorleyParsons Ltd, which signed a $260 million contract with Fortescue Metals.

Mt Gibson has posted a record net profit of $113 million for the 2008 financial year, a 137 per cent jump from the previous year's figure.

In its 2008 financial report, the miner's increase in net profit after tax was underpinned by production increases from its Tallering Peak iron ore mine and the first full year of operation from its Koolan Island iron ore mine.

Nearly 2.6 million tonnes of iron ore were shipped from Tallering Peak, up from 2.3 million tonnes, while 2.9 million tonnes was shipped out from Koolan Island, up from 150,00t from the previous year.

Sales revenue over fiscal 2008 was up 166 per cent from the previous year to $432.7 million, and operating profit before tax was up 288 per cent to $164 million.

At the end of the year, the company had $48.7 million cash on hand.

Meanwhile,WorleyParsons has been awarded a lucrative contract for the second phase expansion of Fortescue Metals Group Ltd's iron ore development project in the Pilbara.

The engineering, procurement and construction management contract has an estimated value for services of about $260 million over two years, WorleyParsons said in a statement.

WorleyParsons completed work on the first phase of the $2.8 billion Pilbara Iron Ore and Infrastructure Project by the Pilbara Infrastructure Pty Ltd, a Fortescue Metals Group company, earlier this year.

Initial work on the second phase expansion of the project commenced in July 2008.

FMG currently has the capacity to export 55 million tonnes per year and has committed to expand capacity to 100 million tonnes per year, and potentially more in future years.

 


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