Rio extends Primero contract

Primero Group will complete further work on Rio Tinto’s Koodaideri iron ore project in the Pilbara under a new $20 million contract to build an airport terminal and associated infrastructure.

Primero said the new work was an extension to the existing $115 million non-process infrastructure contract awarded to the company late last year, which involved the design and construction of the Koodaideri mine site area and associated facilities.

The company said its order book forecast for the 2021 financial year now stood at $220 million, up from $100 million, while it continued to operate in line with its FY20 guidance of $195 million.

Primero managing director Cameron Henry said all of the company’s major projects were being delivered to plan.

“(We) are increasingly optimistic about the operating and growth outlook for the next year and beyond,” he said.

Primero, which entered into a legal dispute with Wartsila Australia last month, said a decision had been reserved for judgement by the Supreme Court of South Australia regarding a $16.9 million adjudication payment.

Osborne Park-based Primero said this represented approximately 25 per cent of the total money owed to the company under its previous contract with Wartsila for work at the Barker Inlet Power Station, completed late last year.

Shares in Primero were up 1.2 per cent at 1:55pm AEST to trade at 26 cents.