Leading civil and mining contracting firm NRW Holdings Limited (ASX: NWH) has started the new financial year with a flurry of contract wins and updates, adding more work in Queensland’s Bowen Basin and WA’s Pilbara mining regions and announcing a $400 million government cash injection into the Bunbury Outer Ring Road project in WA’s South West.
Following yesterday’s news of almost $900 million of contract wins in Queensland and WA, NRW said today that its Golding Contractors subsidiary had secured the rail civil construction contract for the Pembroke Olive Downs coking coal project in the Bowen Basin.
The civil works to be undertaken include a 19km rail loop for the new steelmaking coal project, including all earthworks, drainage culverts and construction of two new rail bridges. The scope of works also includes importing capping material up to underside of ballast. The contract is valued at circa $52 million and is expected to have a duration of 14 months.
In addition, Golding has also been awarded circa $15 million of bulk earthworks, drainage and roadworks relating to the new CHPP at Olive Downs.
In the Pilbara, NRW executed a contract extension from Atlas Iron for mining and crushing services works at the Mt Webber iron ore mine. The works to be continued include load and haul, drill and blast and ROM re-handling and crushing and screening. The work will involve NRW subsidiaries Action Drill & Blast and Primero.
The anticipated value of the contract extension is circa $60 million, commencing now and expected to be completed by the end of 2024 with a project workforce averaging about 80 personnel.
NRW has also provided an update on the Bunbury Outer Ring Road (BORR) project. NRW is a major construction partner (40% share) in the project along with Acciona, MACA, Aurecon and AECOM. BORR is the biggest transport infrastructure project ever undertaken in the South West.
The State and Federal governments have committed an additional $400 million for the construction of BORR. The updated budget of $1.25 billion will deliver Stages 2 and 3 of the project, with major benefits for the economy both during construction and once in operation.
The Federal Government recently commissioned an independent cost review into the project, which resulted in additional funding being allocated in the Federal Budget. This additional investment addresses cost pressures and allows local businesses to continue to participate in the project, with around $450 million in targeted local spend.
The project is well underway with design significantly advanced and major construction activities concentrated in the northern section of the works.