06/03/2008 - 09:47

Monadelphous eyes $290m BHP Billiton contract

06/03/2008 - 09:47

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Engineering company Monadelphous Group Ltd appears to have snared its biggest contract to date, a $290 million contract for structural, mechanical and piping works at BHP Billiton Iron Ore's Newman Hub.

Monadelphous eyes $290m BHP Billiton contract

Engineering company Monadelphous Group Ltd appears to have snared its biggest contract to date, a $290 million contract for structural, mechanical and piping works at BHP Billiton Iron Ore's Newman Hub.

The Applecross-based company has received a letter of intent from BHP Billiton Iron Ore to enter into the contract associated with its Rapid Growth Project 4, subject to final agreement.

Preliminary works have been approved and will commence immediately with completion of the contracted works scheduled for the second quarter of 2009.

Monadelphous Group managing director Rob Velletri said that the proposed works followed on from a long and successful history of major contracts associated with BHP Billiton Iron Ore's development projects including recent contracts associated with Rapid Growth Project 3.

"We are extremely pleased to be given the opportunity to continue our valued long term association with BHP Billiton Iron Ore", he said.

The proposed contract will be the largest ever undertaken by Monadelphous and continues to demonstrate the company's leading capabilities in resource development construction.

Mr Velletri said the contract, together with a string of major contract wins worth over $500 million announced since July 2007, would strengthen the company's forward workload and underpin opportunities for growth in the 2008/09 financial year.

Monadelphous shares had gained 29 cents, or 2.42 per cent, to $12.29 each by 1153 AEST.

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