New $200m Monadelphous deal

Monadelphous has been contracted for $200 million worth of construction work on Albemarle’s billion-dollar Kemerton lithium hydroxide plant expansion in the state's South West.

The engineering firm will deliver front-end pyromet structural, mechanical, piping, electrical and instrumentation works associated with Kemerton’s two new lithium processing trains under a contract announced today.

The work will begin on the facility’s third and fourth processing trains later this year, with expected completion in 2025.

Monadelphous delivered construction packages on Kemerton’s first two processing trains and was recently awarded five-year maintenance and sustaining capital projects contracts by Albemarle covering its Kemerton operations.

The firm was also recently on the receiving end of contracts from Rio Tinto, BHP and South32.

Monadelphous managing director Zoran Bebic said the Kemerton construction contract, along with a recently announced construction contract at Fortescue Metals Group's Christmas Creek mine, meant the firm was involved in a new wave of construction projects coming to market.

“We are extremely pleased to have secured these key construction opportunities and look forward to continuing to deliver high quality solutions for customers, as well as supporting local communities through the provision of employment and supply opportunities,” he said.

Albemarle vice-president capital projects Australia, Josh Rowan, said the producer looked forward to continuing its relationship with Monadelphous. 

"We are very pleased to have Monadelphous back onboard for the construction of processing trains three and four," he said. 

"Their ability to deliver the works safely and at schedule is critical to the project's success."

Albemarle announced plans to double the processing trains at its Kemerton plant in May, in a move the state government says will make the facility the largest and most advanced lithium hydroxide plant in the world outside of those in China. Mr Rowan said first steel for the expansion was recently delivered to site, and construction work was not far away. 

When up and running in 2026, the full facility will have capacity to produce 100,000 metric tonnes annually of battery grade lithium hydroxide, by processing spodumene output from the Greenbushes mine near Bridgetown.

A contract for work including the delivery of 25 carbon steel tanks and eight kilns as part of the facility expansion was awarded to Civmec in May.

Earlier this week, a revised MARBL joint venture agreement was struck between the New York-listed miner and Chris Ellison’s Mineral Resources, included confirmation Albemarle will take full ownership of the Kemerton plant by purchasing MinRes’ 15 per cent share of the facility.

Albemarle will pay up to $580 million for MinRes’ stake, a move which was first mooted under an initial agreement signed between the pair in February.

The transaction is subject to approval from the Foreign Investment Review Board.

Monadelphous shares were up 5.7 per cent at 12.20pm today.