Primero rides high on $100m lithium contract

Primero Group has been awarded a contract at Core Lithium’s Finniss project in the Northern Territory, marking the latest in a spate of agreements for the company.

The contractor will provide build-own-operate (BOO), and operations and maintenance at Core’s lithium project for an initial four-year period as part of the $100 million contract.

Primero was engaged as the preferred engineering procurement and construction (EPC) and front end engineering design (FEED) contractor in January following the early approval of Core’s mining licence.

In addition, Primero has also scored early contractor involvement (ECI) deals at Agrimin’s Mackay sulphate of potash (SOP) project and Hazer Group’s hydrogen pilot plant, both in Western Australia. These contracts show potential for follow-up EPC contracts, according to Primero.

The company has been going through a busy spell since becoming a publicly-listed company on the ASX in July 2018. Its revenue forecast has jumped by 80 per cent over the past financial year.

Primero has been engaged by a number of miners, including Galaxy Resources, Pilbara Minerals, Piedmont Lithium and Neometals.

It is also working on several energy contracts, including the delivery of a gas pipeline for Kalium Lakes’ Beyondie SOP project and the upgrade of the Hill 60 power station for Energy Developments Limited.

Primero managing director Cameron Henry said the current revenue run rates demonstrated the company’s ability to manage growth and deliver on multiple projects in Australia and internationally.

“The award of early engagement contracts with both Agrimin and Hazer Group, and the addition of a new blue chip client such as Energy Developments Limited, delivers further validation of the strength of our business model and calibre of our team,” Henry said. 

“These awards evidence the capability of our group to work in new commodities, and in developing technologies, that require very high levels of competence and expertise to deliver.”

The company’s forecast revenue for the 2019 financial year has subsequently been revised to $150 million as a result of the latest works with Core, Hazer and Agrimin.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.