Shares in engineering outfit VDM moved up slightly after announcing it had won a $79 million contract with a Rio Tinto subsidiary to refurbish the Pannawonica township in the Pilbara.
Shares in engineering outfit VDM moved up slightly after announcing it had won a $79 million contract with a Rio Tinto subsidiary to refurbish the Pannawonica township in the Pilbara.
The contract with Rio's Robe River Mining was awarded to VDM's wholly-owned subsidiary Wylie and Skene for a major refurbishment of the Pannawonica township including the refurbishment of existing buildings and construction of new buildings.
The works include the refurbishment of 233 houses, upgrade and refurbishment of 19 existing commercial and infrastructure buildings, and the construction of a new service station and light vehicle workshop within the town.
The project is expected to be completed within 30 months with revenue expected to be booked in FY10 to FY12.
The company said the contract broadens the spread of the group's order book across the major corporations of Rio Tinto, BHP Billiton, CP Mining, Woodside Petroleum and Fortescue Metals Group.
Wylie and Skene's managing director, Mark Nagle believes that this contract win highlights the depth of VDMs Group's relationships with blue chip clients including a 35-year relationship with Rio Tinto.
"We have completed a number of significant projects for Rio Tinto over recent years including mine infrastructure at the Brockman 4 Project plus significant number of houses at both Tom Price and Karratha," he said in a statement.
"This large refurbishment project at Pannawonica builds on the success we have enjoyed with major clients including Rio Tinto and Woodside Petroleum over the past few years."
VDM said the new contract brought the value of its order book to about $400 million.
VDM shares were up three cents, or 6.98 per cent, to 46 cents at AEST1319
Full announcement below:
ASX RELEASE
WYLIE AND SKENE LTD AWARDED $79 MILLION CONTRACT
Highlights
- Wylie and Skene Pty Ltd has been awarded $79 million contract with Rio Tinto's subsidiary Robe River Mining Co Pty Ltd
- VDM's Group order book value grows to $400 million
- Contract is expected to be completed within 30 months with revenue expected to be booked from FY10 to FY12
- Broadens spread of orders across major corporations including Rio Tinto, BHP Billiton, CP Mining, Woodside Petroleum and Fortescue Metals Group
Perth, 22 December 2009: VDM Group Ltd (VMG: ASX) is pleased to announce that it's wholly owned subsidiary Wylie & Skene Ltd has been awarded a $79 million contact with Rio Tinto's subsidiary Robe River Mining Co Pty Ltd.
The award of this contract grows VDM Group's total order book to approximately $400 million.
This contract broadens the spread of VDM Group's order book across the major corporations of Rio Tinto, BHP Billiton, CP Mining, Woodside Petroleum and Fortescue Metals Group.
Under the terms of the Robe River contract Wylie and Skene will undertake a major refurbishment of the Pannawonica township including the refurbishment of existing buildings and construction of new buildings. The works include the refurbishment of 233 houses, upgrade and refurbishment of 19 existing commercial and infrastructure buildings, and the construction of a new service station and light vehicle workshop within the town.
The project is expected to be completed within 30 months with revenue expected to be booked in FY10 to FY12.
The award of this contract with Robe Rover follows the recent Master Services Agreement with Rio Tinto whereby Wylie and Skene will perform construction, refurbishment and maintenance works at the townships of Dampier, Karratha, Tom Price, Paraburdoo, Wickham and Cape Lambert.
Wylie and Skene's Managing Director, Mark Nagle believes that this contract win highlights the depth of VDMs Group's relationships with blue chip clients such as Rio Tinto.
"This contract continues a relationship that Wylie and Skene has built with Rio Tinto over 35 years," Mr Nagle said.
"We have completed a number of significant projects for Rio Tinto over recent years including mine infrastructure at the Brockman 4 Project plus significant number of houses at both Tom Price and Karratha.
"This large refurbishment project at Pannawonica builds on the success we have enjoyed with major clients including Rio Tinto and Woodside Petroleum over the past few years. "
This contract has been awarded following a number of recent successes including:
- Two accommodation villages, a warehouse and structural mechanical works on the Sino Iron Ore Project for MCC Mining (WA) and CITIC Pacific Mining at Cape Preston - combined contract value of $111 million;
- Administration Building for BHP Billiton Iron Ore at Yandi - contract value of $14.2 million; and
- Instruction to restart the construction of 14 houses in South Hedland for FMG that had been suspended earlier in the year.
These recently awarded contracts to Wylie and Skene now exceed $200 million.
