GR Engineering has won $312 million worth of work from OZ Minerals a day after shareholders approved BHP’s $9.6 billion takeover of the company.
GR Engineering Services has won two contracts valued at $312 million to build the mineral processing plant at OZ Minerals' West Musgrave project a day after shareholders approved BHP’s $9.6 billion takeover of the company.
The Ascot-based engineering consulting and contracting company secured the contracts from OZ Minerals to design and construct a mineral processing plant at the copper and nickel operation.
The contract award comes just a day after OZ Minerals shareholders voted to approve BHP’s $9.6 billion takeover to acquire 100 per cent of the company after entering the deal in December.
BHP’s takeover offer was upped from the $8.3 billion after it was rejected by the target’s shareholders in August.
In December, OZ Minerals’ board unanimously recommended shareholders vote in favour of the scheme in the absence of a proposal deemed superior by an independent expert.
The newly approved scheme of arrangement is expected to become effective on April 18 and implemented on May 2, pending approval from the Federal Court of Australia.
In today’s announcement on the ASX, GR Engineering said it subsidiary Mipac would also be engaged to provide specialist electrical and instrumentation services.
The full scope of work includes the engineering design, drafting, project management and commissioning alongside structural, mechanical, piping, electrical and instrumentation construction works.
The two contracts are estimated to deliver $312 million over two years.
GR managing director Tony Patrizi said they were pleased to have been engaged by OZ Minerals to play a key role in the delivery of the project.
“This is an important project for GR Engineering as we have worked with OZ Minerals over many years on projects within the OZ Minerals group, including the West Musgrave project, and see this award as a strong endorsement of our proven delivery capabilities,” he said.
“We look forward to continue working collaboratively to deliver a safe and successful outcome on the West Musgrave project.”
Construction is underway at the $1.7 billion West Musgrave project after the final investment decision was reached in September.
OZ Minerals projects executive Debbie Morrow said the West Musgrave project was set to be one of the largest, lowest cost, lowest emissions copper nickel projects.
She said they were delighted to be working with GR Engineering on the design and construction of the minerals processing plant.
On the ASX, GR Engineering shares were up 1.91 per cent to trade at $1.87 at 12.50PM AEST.
OZ Minerals shares were down 0.035 per cent to $28.16 and BHP’s shares were also down 0.86 per cent to trade at $46.
