Civmec makes waves with Covalent contract


Civmec has pushed its contract pipeline to $1.15 billion with work to be conducted at Covalent Lithium’s Kwinana refinery in Western Australia.

The construction and engineering services provider has currently signed with the likes of BHP, Roy Hill and Rio Tinto, after deals in October brought its order book past $1 billion.

Now, Covalent Lithium will put Civmec to the test with the refinery contract calling for structural and piping fabrication, SMP erection, refractory lining, insulation, and electrical and instrumentation installation.

The contractor was also awarded an infrastructure contract with the New South Wales Government, and Civmec chief executive officer Patrick Tallon said these deals were a great sign.

“Demand for heavy engineering and construction services in the private and public sectors in Australia remains strong and these new contracts underscore, yet again, our strength as a top-tier contractor,” Tallon said.

“Our efforts to generate more recurring income are also paying off as we are getting more work involving maintenance and capital works from both existing and new clients.”

Covalent Lithium is a 50/50 joint venture (JV) between Wesfarmers and Chilean chemical company Sociedad Química y Minera de Chile.

In February, the Covalent JV pooled $1.8 billion towards Mount Holland’s development and received the go-ahead on the Kwinana refinery in September. 

The refinery, to be constructed by Civmec, will receive about 45,000 tonnes of lithium hydroxide per year from Covalent’s Mount Holland lithium mine, located 400 kilometres east of Kwinana.

The refinery will convert lithium concentrate into high-purity lithium hydroxide monohydrate for use in products like lithium batteries to store renewable energy.

The Kwinana refinery will be conveniently located for Civmec, about 10 kilometres south of the company’s flagship heavy engineering facility in Henderson.

Construction of the refinery will commence in 2022 and is expected to be completed in 2024.

Outside the Covalent contract, Civmec added that its pipeline continues to grow in a range of commodities.

“The company is also getting more work for maintenance and shutdowns from long-term client Roy Hill. It also recently completed work for a nickel producer in the Goldfields of Western Australia,” Civmec stated.

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