MinRes subsidiaries win work, raise funds

A pair of Mineral Resources subsidiaries have made progress on two fronts, one winning a processing plant contract worth an estimated $450 million at Rio Tinto’s Nammuldi iron ore mine, while another part-owned subsidiary has raised $1.38 million to repay debts.

MinRes announced late Friday that its subsidiary Crushing Services International had won an engineering, procurement and construction (EPC) contract for a 25 million tonne ore processing facility at the Nammuldi mine.

The contract will run for 12 to 14 months, the company said.

MinRes said it expected the contract to contribute revenue over the next two financial years, with 60 per cent coming in FY2014.

In a research note, Bell Potter Securities said that based on similar sized contractors, it estimated the Nammuldi deal to be worth about $450 million.

MinRes has previously built two similar plants at Fortescue Metals Group's Christmas Creek mine.

In more news today, MinRes said its 64.2 per cent-owned ASX-listed subsidiary Mesa Minerals had completed a placement of more than 91 million shares at 1.5 cents each to clients of Bell Potter Securities.

Mesa said the placement would raise around $1.38 million before costs.

The funds will go towards reducing debt to MinRes as Mesa continues with the development of its proprietary manganese processing technology.

The company has completed field test work for a proposed granulated manganese sulphate plant in the Pilbara, and is now focusing on off-take arrangements, economic modelling and optimum concept design.

Mesa owed MinRes more than $5.1 million as of June 30.

Mesa Minerals shares last traded at 1.5 cents.