Primero wins $100m in contracts
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Primero Group has increased its order book to $195 million for the 2020 financial year after securing $100 million worth of engineering and construction contracts with Rio Tinto and Fortescue Metals Group.
Primero was awarded an engineering, procurement and construction (EPC) contract for works at Fortescue’s Christmas Creek iron ore mine in the Pilbara, where it will build a wet iron ore beneficiation plant to process and upgrade fines material from the Christmas Creek 2 ore processing facility (OPF2).
Construction works are expected to employ around 150 personnel, Primero said.
The company also won its second major contract with Rio Tinto Iron Ore in recent months, with secured works on Rio's Robe Valley sustaining project in the Pilbara.
Under the contract, Primero has been tasked with building the Mesa K Non-Process Infrastructure (NPI) facilities.
The scope of works include the construction of mining infrastructure, such as ammonium nitrate and emulsion mixing and storage facilities, and administration facilities.
Primero expects to employ more than 80 personnel to carry out the works, which are scheduled to complete in the third quarter of 2020.
The secured works build on the company's existing $115 million EPC contract with Rio for works on the Koodaideri mine, also in the Pilbara.
Primero managing director Cameron Henry said the recently secured contracts add to the company's already strong order book.
“Our teams have worked hard over the past 12 to 18 months in positioning Primero to be a provider of choice for the next phase of major capital projects in the Pilbara,” he said.
"We have delivered on this strategy with the recent conversion of these opportunities into substantial contract awards from these tier one clients."
The company’s contracted orders for FY20 now stand at approximately $195 million, up $30 million on the update provided in December, and about $170 million for FY21 (up $70 million).
Further, Primero said it had now completed works at the Barker Inlet Power Station, which involved the supply of 211 megawatts of power to South Australia under a contract with Wartsila.