26/06/2018 - 14:48

NRW confident of WA iron ore work

26/06/2018 - 14:48

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Shares in local contractor NRW Holdings were up 9.2 per cent today after the company said its order book had increased to near record levels of $2.05 billion, while also saying the business was well placed to be involved in Western Australia’s major upcoming iron ore projects.

Jules Pemberton says NRW is well placed to take advantage of the strength of the resources industry.

Shares in local contractor NRW Holdings were up 9.2 per cent today after the company said its order book had increased to near record levels of $2.05 billion, while also saying the business was well placed to be involved in Western Australia’s major upcoming iron ore projects.

Perth-based NRW said it was confident of gaining work on iron ore replacement and sustaining projects in WA, expected to start during the first half of the 2019 financial year.

BHP Billiton recently approved development of its $4.5 billion South Flank project, while Fortescue Metals Group gave the green light to its $1.7 billion Eliwana mine in May.

Rio Tinto is expected to make a decision on the Koodaideri mine in the coming months.

“NRW continues to be very well placed to capitalise on the significant strength in the Australian resources and Infrastructure sectors,” managing director Jules Pemberton said.

“Our increasingly diverse and geographic service offering is further broadening and currently includes projects for key clients across the bulk commodities, lithium, gold, public infrastructure and urban development sectors.”

The company also said that recent contracts, including a $93 million extension with Stanmore Coal and the $420 million Baralaba coal contract had taken the company’s order book above $2 billion.

“With an order book of $2.05 billion and $875 million already committed for delivery in FY19, we are well positioned to expect revenue growth in excess of 40 per cent over the 2018 financial year,” Mr Pemberton said.

Other recent contract wins also include about $65 million of new work and contract extensions in the Golding Civil and Urban businesses and a $7 million trial rehabilitation project at the Argyle diamond mine.

NRW shares finished up 9.2 per cent at $1.60 each.

 

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