Wins for AusGroup, Ansaldo

GINDALBIE Metals and its Chinese joint venture partner Ansteel have awarded two significant contracts collectively worth over $63 million for its Karara iron ore project in the Mid West.

AusGroup subsidiary AGC Industries announced last week it had won a $60 million early works contract to supply structural, mechanical and piping installation works for the iron ore process plant at Karara.

The AusGroup contract involves all mechanical disciplines, scaffolding, rigging and procurement of piping for the main process plan contract, which is being negotiated.

AusGroup said it expected the main contract to be valued at more than $200 million.

AusGroup managing director John Sheridan said the early works deal was a significant opportunity to develop a long-term relationship with Gindalbie and Ansteel. With the contract award, the group’s order book stands at $262 million.

The awarding of the contract follows AusGroup’s announcement of a S$19 million ($A14.6 million) share placement. AusGroup is based in Perth but listed on the Singapore Exchange, and has operations in both Australia and Singapore.

The company is undertaking the placement to raise funds for working capital purposes and to reduce its borrowings.

Also at Karara, Italian railway and mass transit signalling firm Ansaldo STS has won a $3.1 million turnkey signalling contract for an 85-kilometre rail line from the Karara mine site to Tilley Junction at the Port of Geraldton.

Ansaldo will design and install a signalling system for the line, including flashing light-only level crossings.

When completed, the new branch line from the Karara mine site to Tilley Junction will be incorporated into WestNet Rail’s existing mainline system, providing Karara Mining with direct access from its mine to the Port of Geraldton.

Staff reporters