15/05/2009 - 09:29

Monadelphous wins $100m BHP, Rio deals

15/05/2009 - 09:29

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Engineering company Monadelphous has secured contracts valued at $100 million with the world's largest miners, BHP Billiton and Rio Tinto.

Monadelphous wins $100m BHP, Rio deals

Engineering company Monadelphous has secured contracts valued at $100 million with the world's largest miners, BHP Billiton and Rio Tinto.

Applecross-based Monadelphous was awarded several contracts by BHP, with work to focus on the miner's Blackwater and Peak Downs coal mines in Queensland.

The company will also provide structural and mechanical pre-works at Nelson Point as part of its Rapid Growth Project 6 in the Pilbara, which has not yet been formally approved.

The mining giant last year approved Rapid Growth Project 5 after it dropped its bid for Rio.

For Rio, Monadelphous will install an automated alumina delivery system and associated infrastructure as part of the major's Boyne smelter development project.

Monadelphous will also construct the coal handling preparation plant for Rio's Clermont mine.

Both Rio contracts are in Queensland.

Shares in Monadelphous were up 20 cents to $10.70 at 11:08 AEST.

 

 

The announcement is below:

 


Leading Australian engineering company Monadelphous Group Limited (ASX: MND) ("Monadelphous" or "the company") today announced it has secured contracts with a combined value of $100 million in the aluminium, coal and iron ore markets with major customers BHP Billiton and Rio Tinto. The majority of the contracts are in central Queensland.

In a first for the company, Monadelphous will be working on two dragline shutdowns for BHP Billiton Mitsubishi Alliance (BMA) at its Blackwater coal mine in the Bowen Basin in central Queensland. Also in the Bowen Basin, the company has been awarded a contract to fabricate and construct a radial stacker for BMA's Peak Downs coal mine.

In Gladstone, central Queensland, Monadelphous has been awarded a package of work to install an Automated Alumina Delivery System and associated infrastructure as part of Rio Tinto's Boyne Smelter Development Project.

The company has also received a notice of award from Rio Tinto for construction of a Coal Handling Preparation Plant (CHPP) and associated coal handling plant as part of its Clermont Mine Project.

In Western Australia, Monadelphous has been awarded a contract with BHP Billiton Iron Ore for structural and mechanical pre-works at Nelson Point as part of its Rapid Growth Project 6.

All projects are scheduled for completion in the second half of calendar 2009, except for the work at Boyne Smelter which at this stage is expected to end in second half of calendar 2010.

Commenting on the new contracts Monadelphous Managing Director Rob Velletri said, "these wins in central Queensland continue to reinforce our national capability. We are especially pleased to be working for BMA as this is our first dragline maintenance contract outside the Hunter Valley and a major milestone in the achievement of our coal market growth strategy in the Bowen Basin.

"The contracts follow a long and successful history of major contracts with BHP Billiton and Rio Tinto and reinforce our relationship across Australia."

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