04/08/2014 - 14:14

Watpac wins $29m contract

04/08/2014 - 14:14

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Construction and mining services company Watpac has won a contract to provide services to Hanking Gold Mining’s Cornishman pit at its Southern Cross operation.

Watpac wins $29m contract
A Watpac Civil & Mining truck on site.

Construction and mining services company Watpac Civil & Mining has won a contract to provide services to Hanking Gold Mining’s Cornishman pit at its Southern Cross operation.

Works are to begin in the coming month.

Hanking Gold is a member of China Hanking Holdings, and plans to become a low-cost Australian gold producer through organic growth, merger and acquisitions.

Mining services companies have been affected by the change from construction to production in major resources projects.

Watpac chief executive officer Martin Monro said the contract award was a boost for the group’s civil and mining business.

“While the outlook for the resources sector has been mixed, Watpac civil and mining have continued to perform well over the past 12 months, and the announcement of this contract with Hanking Gold is an example of the team’s efforts to maintain a healthy forward work book,” he said.

“Watpac has developed extremely strong credentials in the iron ore, gold and mineral sands space in Western Australia in recent years and it is very pleasing to see our brand is recognised for our knowledge and expertise in this space despite a difficult market.”

The contract will be for drill, blast and conventional mining services over 19 months, and will employ up to 50 people.

Watpac was up 2.4 per cent to 87 cents at the time of writing.

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