Civmec Limited (ASX:CIV) has been awarded about A$100 million worth of new contracts to carry out manufacturing, construction and maintenance activities for the resources sector. This brings its total order book to A$1.2 billion as of 30 March 2023.
Albemarle Lithium
Civmec secured three new contracts for the proposed Albemarle Lithium Kemerton Expansion Project.
Tanks Contract
Civmec has been awarded a contract to fabricate 25 carbon steel tanks for the Project. These tanks will be fully fabricated, welded and assembled in Civmec’s Henderson facility before being transported to the Kemerton site. Delivery will be staged across 2023.
Civil Works
Following the successful delivery of a major section of the civil works for stage 1, Civmec has been awarded a contract for detailed earthworks and concrete works at the site which will require over 25,000m3 of concrete. Civmec will supply all required materials, labour, supervision and management, plant and equipment. At its peak this activity will employ over 200 people.
Manufacture of Kilns
A third package of work was awarded by Metso for the manufacture of eight kilns required for the Project, ranging in length from 33 to 56 metres and approximately four metres in diameter. The kilns have a total combined weight of approximately 900 tonnes.
FMG Iron Ore
Civmec recently secured two packages of work for Fortescue Metals Group.
The first package involves further fabrication work for the Iron Bridge Magnetite project, a joint venture between Fortescue subsidiary FMG Iron Bridge and Formosa Steel IB.
Civmec will fabricate loose and modularised structures for a dry rejects extension comprising approximately 300 tonnes of structural steel, conveyor modules and platework which will be completed out of both its Henderson and Newcastle manufacturing facilities.
The second package is for the fabrication and supply of a process water tank for Fortescue’s Cloudbreak operations. The works will commence immediately.
Maintenance Awards
The Group’s maintenance teams on both the east and west coast have continued to increase their market share with new purchase orders being granted across several sites. The refineries and smelters division was awarded its largest single order from existing client Queensland Aluminium (QAL), as well as separate orders from other clients in the sector.
Works for other Clients include refractory, general SMP maintenance and scaffolding activities for upcoming shutdowns at the respective sites.
The resources and energy team of Civmec’s maintenance division also continues to secure purchase orders from new and existing clients. These orders range from involvement in preparatory works for a major site shutdown, early contractor involvement services and delivery of general maintenance and efficiency improvement processes across clients mine sites and port facilities.
We are very pleased to continue our relationship with Albemarle Lithium following the construction of their first two trains at Kemerton,” CEO, Patrick Tallon, said.
“The award of these contracts is testament to how our teams continue to deliver successful projects for our clients. These contracts are for the fifth Lithium project that we have been involved in, demonstrating how we are making a positive contribution to decarbonise the world’s energy supplies.
“Meanwhile, the recent awards across our maintenance division, particularly our more recent successes in increasing our client base, reaffirms our maintenance teams’ ability to demonstrate value to our clients. These maintenance contracts are an integral part of our long-term strategy to build a recurring and sustainable stream of income.”
