NRW set for $111m contract in SA

NRW Holdings is in line to receive a $111 million contract for work on OZ Minerals’ Carrapateena gold-copper project in South Australia, which today was given the green light for development.

In a statement today, Perth-based NRW said it was finalising negotiations for an initial package of work into a lump sum contract, which would be worth about $111 million.

The scope of work under the package consists of the western access road, a tailings storage facility, and construction of a quarry and airstrip.

A joint venture between Ausenco and Downer has been lined up for construction of the processing plant, along with non-processing and underground infrastructure at Carrapateena, while Pybar Mining Services will provide decline development work to the project, which has a total development capex of about $916 million.

NRW managing director Jules Pemberton said OZ Minerals’ decision to proceed with development of Carrapateena was pleasing for the Perth contractor, which had participated in the project’s early contractor involvement process.

“NRW has worked closely with OZ Minerals during the ECI process to identify cost benefits and cost certainty across the project, from design optimisation and constructability through to project scope sequencing and resource scheduling,” he said.

“NRW looks forward to continuing to work closely with Oz Minerals as the construction commencement date approaches and more particularly, to the successful delivery of the project.”

OZ Minerals chief executive Andrew Cole said the first phase of construction, which includes the accommodation village, airstrip and the dual access decline, was scheduled to begin next month.

He said the second phase, which includes construction of the processing plant, the tailings storage facility and the western access road, would begin in the second quarter of next year.

NRW shares gained 8.6 per cent to $1.13 each at 10:45am.

The last time NRW shares were worth more than $1.10 each was in mid-2014.