The revenue from these contracts will be realised across the Resources and the Energy sectors of the Company and will contribute to a solid base load of activity for the Company’s manufacturing facilities.
The awards include:
- a contract to fabricate, modularise and carry out commissioning of a ship loader for BHP Mitsubishi Alliance (BMA) for their Hay Point loading port in Central Queensland;
- a term contract for five years, plus two one-year extension options, with Woodside Energy Ltd (Woodside) to support their onshore and offshore facilities in Australia; and
- a contract for the supply of modules for the Iron Bridge Magnetite project, a joint venture between Fortescue Metals Group subsidiary FMG Iron Bridge and Formosa Steel IB.
BHP Mitsubishi Alliance (BMA) has engaged Civmec to fabricate, modularise and commission the 1,800-tonne SL2A ship loader using pre-contract capital ahead of a large infrastructure replacement project at Hay Point Coal Terminal that is still subject of final board approval by BHP and Mitsubishi. The contract awarded to Civmec includes the supply and assembly of the complete ship loader, up to the no-load commissioning stage. The large material handling equipment will be fabricated at the Company’s Henderson manufacturing facility in Western Australia and will be assembled undercover in the Company’s newly built Assembly Hall from where it will be delivered FAS (Free Along Side) to the Australian Marine Complex Wharf for loading onto a heavy lift ship.
Work will commence immediately, with completion anticipated in the second half of calendar year 2022. The award of this scope of work will provide an estimated peak of 150 jobs in Perth.
The Woodside contract is a term contract for five years, plus two one-year extension options which will see Civmec supply services supporting Woodside’s existing onshore and offshore production facilities and capital projects in Australia.
Iron Bridge JV Contract
The Iron Bridge JV contract includes the supply of 4,700 tonnes of conveyor, trusses and trestles for the Iron Bridge Magnetite Project. Work will commence in October 2020, with the majority of the work to be completed in FY2021. The scope will be predominately delivered from the Company’s Henderson facility in Western Australia.
In addition to the above contracts, Civmec has recently secured new and increased scope packages across its Resources and Energy sectors, including the replenishment of orders for the fabrication of tray bodies for dump trucks from the Newcastle manufacturing facility.
Civmec’s Chief Executive Officer, Mr Patrick Tallon, said: “We are extremely pleased to be given this opportunity to further support BHP in the delivery of a ship loader. This contract follows on from other smart modules and machines delivered by Civmec for BHP projects as part of our partnership delivering high quality, complex machines.”
He added: “We are also privileged to have secured a long-term contract with Woodside, having delivered several projects to them in the past. This contract will provide us with a base load of work and allow us to work with Woodside as a partner to optimise efficiencies and savings in the delivery of our services to them over the longer term.”
Mr Tallon also noted that: “We are delighted to extend our relationship with Fortescue with further work awarded on the Iron Bridge Project. Having recently commenced the onsite activities for the recently awarded civil concrete package for the same project and as we draw closer to completion on the Eliwana project for Fortescue, it is pleasing to get the opportunity to further underpin the relationship.”