22/02/2010 - 08:59

NRW wins $120m Karara contract

22/02/2010 - 08:59

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Civil and mining contractor NRW Holdings has won a $120 million contract from Gindalbie Metals for staged earthworks and concrete construction at the Karara iron ore project in the Mid West.

Civil and mining contractor NRW Holdings has won a $120 million contract from Gindalbie Metals for staged earthworks and concrete construction at the Karara iron ore project in the Mid West.

Gindalbie said in a statement today that the 14-month contract will involve between 400 to 500 NRW personnel on site.

The award of today's contract comes a week after WorleyParsons and AMEC Minproc were awarded key project management and construction services contracts, valued at a combined $140 million.

Gindalbie said today that major additional contract packages, including Geraldton Port works, rail spur line construction and water pipeline construction, will be awarded in the coming months.

 

 

The announcement is below:

 

Gindalbie Metals Limited (ASX: GBG - "Gindalbie") is pleased to announce the award of a further major construction contract for the Karara Iron Ore Project in Western Australia. The Joint Venture company, Karara Mining Limited (KML), has awarded a staged earthworks and concrete construction contract, with a total value of $120 million, to the ASX-listed specialist civil and mining contractor, NRW Holdings Limited (ASX: NWH).

The earthworks and concrete package encompasses most of the preliminary construction work upon which the concentrator will be built. As well as site earthworks and concrete foundations, the contract includes construction of site drains, site roads, a retention pond and the all-weather airstrip. The contract has a 14-month duration and will involve between 400-500 NRW personnel on site.

The total earthworks and concrete package will involve the pouring of more than 40,000m3 of concrete, for which Boral has recently installed a special-purpose batching plant on site to ensure a steady and reliable source of concrete throughout the project construction period.

Originally established in Western Australia's Eastern Goldfields in 1994 as a privately owned civil constructing and general plant hire firm, NRW has grown to become one of Australia's leading diversified suppliers to the Mining and Resources Sector. NRW listed on the Australian Securities Exchange in 2007 and today counts global resource giants such as BHP Billiton, Rio Tinto and Fortescue Metals Group amongst its key client base.

The award of the earthworks contract follows the award in December 2009 of a $70 million contract for construction of the main camp and accommodation village for the Karara Project to Western Australian company Doric Constructions (Australia) Pty Ltd.

Major additional contract packages targeted for award in the next few months include Geraldton Port works, rail spur line construction, water pipeline construction and Karara mining and tailings management.

"This awarding of this construction package is another step forward for the Karara Project. Importantly, the early contractor engagement process implemented for the project is starting to show dividends with the work being well tendered by a select number of experienced contractors. Following an extensive process we are very pleased to announce the award of this major contract for the Karara Project to another Western Australian company," said Gindalbie's Managing Director, Mr Garret Dixon. "The earthworks package is one of the key construction packages for the Project and involves a major logistical effort. We are looking forward to working closely with the management of NRW Holdings in delivering this major contract."

Commenting on the contract award, NRW's Managing Director Civil & Mining, Mr Willie Rooney said: "The award of this contract is a tremendous step forward in the diversification of the NRW skill base with the significant concrete component and, represents the opportunity to build a strong relationship with Gindalbie and Ansteel for future works." Mr. Rooney went on to note that "it was particularly gratifying to be part of a world class project in the emerging Mid West region of Western Australia."

Located 500km north-east of Perth and 225km east of Geraldton, Karara is a major new integrated iron ore project being developed under a 50/50 joint venture between Gindalbie and leading Chinese steel and iron ore company, Ansteel. Karara is the Mid West region's largest resources project.

Construction Update

On-site clearing and earthworks are now well advanced with over 80 hectares of land cleared for the main plant site, covering the area required for the Karara Concentrator and associated site infrastructure.

A concrete batch plant has also been installed on site and site communications have been fully established, with phone coverage now available across the entire site as well as surrounding areas including the Lochada camp. The communications systems installed for Karara have also greatly enhanced mobile telephone coverage in the surrounding areas.

The Lochada camp, located between Karara and Morawa, has been completed and is being commissioned, and, with the existing Karara Exploration Camp will provide accommodation for up to 420 personnel including part of the initial construction workforce for Karara while the main construction camp is completed.

Doric Constructions (Australia) Pty Ltd mobilised to site in early February for construction of the main Karara camp, which will provide construction and permanent accommodation and facilities for up to 1350 personnel. Off-site fabrication activities are already underway for accommodation units and other key items for the camp construction contract. Approximately 120 personnel are currently on site, and this is expected to progressively increase to several hundred by the end of this month.

Detailed engineering and design of the Karara Processing Plant is at an advanced stage, with the completion recently of the 60% design model review in China. Detailed engineering and design for the rail spur and water pipeline has been effectively completed.

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