15/09/2009 - 14:36

VDM wins $14.2m BHP iron ore contract

15/09/2009 - 14:36

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VDM Group's order book has been boosted to $346 million after subsidiary Wylie and Skene was awarded a $14.2 million contract for works on BHP Billiton's Rapid Growth Project 5 in the Pilbara.

VDM wins $14.2m BHP iron ore contract

VDM Group's order book has been boosted to $346 million after subsidiary Wylie and Skene was awarded a $14.2 million contract for works on BHP Billiton's Rapid Growth Project 5 in the Pilbara.

 

 

The announcement is below:

 

 

VDM Group Ltd (ASX:VMG) is pleased to announce that its wholly owned subsidiary, Wylie and Skene Pty Ltd, has been awarded a contract to construct an administration building at BHP Billiton Iron Ore's Yandi mine site as part of their Rapid Growth Project 5 (RGP5) Expansion.

The award of this contract to Wylie & Skene at $14.2 million lifts VDM Group's order book value for the 2009 / 2010 financial year to $346 million.

Wylie & Skene's contract for this project involves the construction of a high quality administration building which will be built on site. This style of construction departs from the recent trend by many mining companies of installing pre-fabricated "transportable" style administration buildings on mine sites. BHP Billiton has chosen to construct a higher quality class of building on this premier project.

The building involves the use of items fabricated off site such as structural steel and pre-cast concrete to allow quick on site construction but provides high quality finishes internally to achieve the desired level of quality. Wylie & Skene have previously constructed high quality permanent facilities for the company at Yandi including accommodation facilities, kitchen and dining facilities and ammonium nitrate storage and handling facilities.

Wylie & Skene's Managing Director, Mark Nagle said "The award of this contract continues a long relationship that we have built with BHP Billiton Iron Ore having previously constructed accommodation villages at Yandi, Newman and Area C, Non Process and Administration facilities at Jimblebar, Ore Body 18, Ore Body 25, Area C and Yandi plus Locomotive Service and Workshop Facilities at Port Hedland. We are no stranger to this style of work, or this location and our team is looking forward to delivering this high quality aspect of the RGP5 project for our highly valued customer."

This contract has been awarded immediately following a number of recent awards including:
- 1,750 person accommodation village as part of the Sino Iron Ore Project for MCC Mining (WA) at Cape Preston - contract value of $93.5 million

- Expansion of a separate accommodation facility as part of the Sino Iron Ore Project for MCC Mining (WA) at Cape Preston - contract value of $2.6 million

- Warehouse as part of the Sino Iron Ore Project for MCC Mining (WA) at Cape Preston - contract value of $1.9 million

These recently awarded contracts including the Yandi administration building take the value of recent awards to Wylie & Skene to $112.2 million. These contract awards add to what is a healthy order book but leave substantial spare capacity within the VDM Group to take on significant further works.

VDM Group are currently working on a number of major projects in the Pilbara Region of Western Australia for major clients including CITIC Pacific Mining, MCC Mining (WA), Rio Tinto and BHP Billiton constructing a variety of facilities including breakwaters, accommodation villages, mine site non process and administration facilities plus the installation of some very large ball mills.

VDM Group's Chief Executive Officer, Jim Van der Meer said, "The award of this project on the back of other recently awarded projects is an absolute delight and is attributable to the hard work that our team have been putting in. We have some very large clients and to be able to call BHP Billiton Iron Ore a long term repeat customer is testimony to the strength of our client base and hence the future of the VDM Group in what is fast becoming the second wave of mining and oil and gas resource based expansion projects in WA."

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