Valmec, WestStar win contracts

04/12/2018 - 15:46

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Valmec has secured $25 million worth of construction contracts, including at Mineral Resources’ Wodgina project, while fellow local contractor Weststar Industrial was awarded a $4 million contract at Rio Tinto’s West Angelas mine near Newman.

Valmec, WestStar win contracts
Valmec secured $25 million worth of contracts.

Valmec has secured $25 million worth of construction contracts, including at Mineral Resources’ Wodgina project, while fellow local contractor Weststar Industrial was awarded a $4 million contract at Rio Tinto’s West Angelas mine near Newman.

In a statement to the ASX, Valmec announced the new agreement would include extending the company’s existing contracts at Origin Energy’s Australia Pacific LNG project in Queensland, signed in 2015, until 2020.

Based on historical performance, Valmec said this would have an estimated value of $15 million per annum.

Valmec managing director Steve Dropulich said the company was pleased to be entrusted by Origin.

“To have the opportunity to enter our fourth year of this contract is a testament to the quality and dedication of the Origin and Valmec integrated teams, and being able also to deliver value in execution whilst continuing to maintain our high standards in safety performance,” he said.

The contractor also announced it was currently working on facility construction for Mineral Resources at the Wodgina pipeline, compression installation for Beach Energy in the Cooper Basin, and infrastructure development works for Pilbara Ports Authority and Water Corp.

These three new works have a combined value of around $10 million.

This brings Valmec’s total order book heading into 2019 to approximately $60 million.

Weststar Industrial’s subsidiary, SIMPEC, was awarded a $4 million contract by portable building manufacturer ATCO Structures and Logistics at Rio Tinto’s West Angelas mine.

The contract will see Simpec supply and install the electrical and communication systems for a 600-room construction camp at the site.

The news comes a week after the company won its second contract at Iluka Resources’ Cataby mineral sands project, located about 150 kilometres north of Perth.

Simpec managing director Mark Dimasi said the contract win was a tribute to the company’s efforts at the Cataby project.

“What a commendable achievement to secure a project with ATCO Structures and Logistics for the Rio Tinto West Angelas mine site, further enhancing our exposure to camp construction works,” he said.

The contract brings Weststar’s order book to $17 million.

The ASX sent Weststar a query yesterday after the company’s shares had opened at 13 cents each and closed at 19 cents each on November 27.

Shares in Valmec were steady at 26 cents each at the close of trade.

Shares in Weststar were up 7.7 per cent each at 14 cents each at the close of trade.

 

 

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