Jovi Ho Wed, May 25, 2022
Dual-listed construction and engineering services provider Civmec Limited has recently secured circa A$120 million ($116.82 million) of new contracts across multiple operating sectors.
These include a car dumper replacement, a subsea project and maintenance contracts, announced the company on May 25.
Civmec is listed on both the Singapore Exchange (SGX) and the Australian Stock Exchange (ASX).
BHP has awarded a contract to Civmec for the replacement of BHP’s Car Dumper 3 (CD3) at BHP’s Nelson Point facility in Port Hedland, which was commissioned in 1998.
The new CD3 has a design life of 30 years and is intended to fit in the existing concrete vault with minimal structural modifications.
Procurement activities for this project have commenced, with fabrication commencing in 1QFY2023 and completion in 4QFY2023.
At peak, this contract will employ approximately 85 people, says Civmec.
In addition, Subsea 7 has awarded the contract for subsea structures on the Woodside-operated Scarborough Project performed by Subsea Integration Alliance, a non-incorporated strategic global alliance between Subsea 7 and OneSubsea, the subsea technologies, production, and processing systems division of Schlumberger.
Totalling over 1,700 tonnes of subsea structures, the project deliverables, welding procedure qualification campaign and shop detailing will commence immediately with fabrication commencing in 4Q2022 through to FAT (Factory Acceptance Testing) being carried out from 2Q2023 with progressive loadout to 3Q2024, this project will employ 80 people at peak.
Next, Roy Hill have awarded the SMP&E (Structural Mechanical Piping and Electrical) Works for the ROM4 Crusher 5 project at Roy Hill’s Mine Facility to Civmec.
The site is situated 115km north of Newman, Western Australia.
This follows the current SMP&E contract for the Wet High Intensity Magnetite Separator (WHIMS) project, which is nearing completion and will see the same project management team transitioning to the ROM4 project, says Civmec.
Mobilisation will commence in 4QFY2022 with completion in 2QFY2023 with peak manning planned to be approximately 130.
Finally, Roy Hill have also extended Civmec’s Roy Hill – Shutdown and Maintenance Support Services Agreement by an additional five years through to March 2027.
“As one of Civmec’s long term customers, Roy Hill is an important stakeholder for our maintenance business. Our investment in the local community and our commitment to building our Port Hedland Workshop facility is evidence of our pledge to being a long-term partner to Roy Hill and our intent is to further strengthen this relationship,” reads a press release.
Patrick Tallon, CEO of Civmec, says: “These new contracts demonstrate the Company’s track record of delivering for its clients. We are very pleased to secure this work and are committed to maintaining our long-standing client relationships.”
Shares in Civmec closed flat at 64.5 cents on May 25.