Monadelphous secures $120m contract

Applecross-based engineering company Monadelphous Group Ltd has secured a construction contract with BHP Billiton Iron Ore Pty Ltd worth approximately $120 million.

The contract is for structural, mechanical and piping works associated with the expansion of the Mining Area C iron ore processing facilities in the Pilbara region of Western Australia.

Monadelphous signed a $180 million contract in March to work on the project, known as the Asset Development Projects Rapid Growth Project 3, at BHP's Nelson Point and Finucane Island sites in Port Hedland.

A statement issued by the company said it was pleased to continue to participate in BHP Billiton Iron Ore's expansion projects, having now been successful in securing major contracts in all iron ore expansion phases since 2002.

The full announcement is pasted below
Leading national engineering group Monadelphous Group Ltd is pleased to announce that the company has been awarded a second major construction contract by BHP Billiton Iron Ore Pty Ltd associated with their Asset Development Projects Rapid Growth Project 3.

The contract is for structural, mechanical and piping works associated with the expansion of the Mining Area C iron ore processing facilities in the Pilbara region of Western Australia. The contract is valued at approximately $120 million and is scheduled for completion in September 2007.

The latest contract follows on from the announcement in March 2006 of the award to Monadelphous of a $180 million contract associated with the expansion of BHP Billiton Iron Ore's port operations at Nelson Point and Finucane Island in Port Hedland, Western Australia. That contract is due for completion in the December quarter of 2007.

The company is very pleased to continue to participate in BHP Billiton Iron Ore's expansion projects having now been successful in securing major contracts in all iron ore expansion phases since 2002.

The award of this contract continues to demonstrate the company's leading capabilities in successfully executing large scale engineering construction projects.

This win follows a string of major contract wins by Monadelphous worth over $500 million announced since December 2005 and will underpin further revenue growth for the company in 2006/07 financial year.

Monadelphous Group Ltd is currently scheduled to issue its 2005/06 full year financial results next Tuesday 22 August, 2006.