Monadelphous wins $110m in contracts

Engineering group Monadelphous has secured several new construction and maintenance contracts, including three with BHP, worth a combined value of around $110 million.

Monadelphous was awarded a contract at BHP’s Mining Area C iron ore site in the Pilbara to provide upgrades to existing conveyer equipment, power switching and stackers.

Works at the site are expected to complete in the third quarter of 2020.

Under a separate contract with BHP, Monadelphous has been tasked with mine demolition and rehabilitation services at a number of facilities at Nelson Point in Port Hedland, with works commencing this month and due for completion in 3Q20.

The company also received a 12-month extension for its existing contract with BHP Nickel West for maintenance, shutdowns and off-site repair services at the Kalgoorlie nickel smelter.

Monadelphous will also construct a reclaimer and two stackers at BHP’s South Flank project in the Pilbara under a separate contract with thyssenkrupp Industrial Solutions Australia.

Works are expected to provide around 70 jobs and are scheduled to complete in 1Q21.

Further, Monadelphous secured a three-year contract for general mechanical and maintenance services for Incitec Pivot’s scheduled turnarounds for its Queensland manufacturing facilities.

Today’s announcement comes on top of a recent $100 million contract with Rio Tinto for maintenance work across its iron ore mines in Western Australia, announced in November last year.

Monadelphous shares are down 1.23 per cent to trade at $16.87 per share, as at 4:10pm AEDT.