Monadelphous contract at BHP’s South Flank to create 400 jobs

Image: BHP

Engineering contractor Monadelphous has been awarded a $108 million construction works contract at BHP’s South Flank iron ore project in the Pilbara, Western Australia.

Perth-based Monadelphous will support South Flank’s outflow systems by providing structural, mechanical, electrical, piping and instrumentation works.

The contract will create around 400 jobs and is expected to last until May 2021.

Monadelphous has received the contract as it celebrates a record half-year result for its maintenance and industrial services division, guided by demand from the mining and oil and gas sectors.

This area of the company recorded 25 per cent growth over the previous corresponding period in the company’s half-year 2019 financials.

Monadelphous managing director Rob Velletri said ongoing maintenance and support on ageing resources contracts, and the ramp up of offshore liquefied natural gas (LNG) projects contributed to this growth.

“We’ve also continued to increase our presence in the infrastructure market, securing a number of new contracts, and additional work in both the renewable energy and water and irrigation sectors,” Velletri said.

However, half-year revenue was down 5 per cent on the previous corresponding period to $830.5 million and earnings before interest, tax, depreciation and amortisation (EBITDA) down 10.2 per cent to $55.8 million.

This was due in part to the completion of construction at the onshore Ichthys liquefied natural gas (LNG) project at Darwin in the Northern Territory.

Monadelphous has been awarded around $770 million in new contracts since the start of the financial year, including the South Flank project.

The company has a long-standing association with BHP. In 2008, Monadelphous secured its largest iron ore contract (worth around $290 million) with the mining major at its Newman Hub iron ore processing facility.

Last year, Monadelphous also secured a $240 million maintenance services contract at BHP’s Whaleback, Jimblebar, Easter Ridge, Mining Area C and Yandi sites.

“BHP has been one of our core customers, for both construction and maintenance projects, for more than 20 years,” Monadelphous managing director Rob Velletri said.

“We are looking forward to partnering with them on this strategically important project, and continuing to build on our proven construction capability within the iron ore sector in the Pilbara.”

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