SIMPEC secures Western Australian contract extensions

Talison Lithium's Greenbushes mine in Western Australia.

SIMPEC has received $5 million worth of scope extensions to its structural, mechanical and piping (SMP) and electrical and instrumentation (E&I) contracts in Western Australia.

The WestStar Industrial business has been contracted to supply and install electrical and communication systems for Rio Tinto’s Robe River joint venture project, West Angelas, as well as Fortescue Metals Group’s 800-room camp at the Eliwana mine in the Pilbara.

SIMPEC is also contracted for a range of piping works at Tianqi Lithium’s Kwinana processing plant, Talison Lithium’s Greenbushes mine and Iluka Resources’ Cataby mineral sands development.

The company was awarded $5 million in contract extensions across the disciplines at the start of the month, in addition to the $2.5 million announced last month.

Its latest extensions have increased the value of work for parent company WestStar to around $10 million in July, bringing WestStar’s contracted future works to $25 million during the 2020 financial year.

“SIMPEC’s on site performance continues to pay dividends in the form of further works. We have built and continue to build a strong portfolio of works in the resources industry across multiple commodities,” SIMPEC managing director Mark Dimasi said.

WestStar acquired SIMPEC in an all-scrip deal worth around $2.2 million in August 2017.

The parent company continues to “tender strongly” for new work and “expects outcomes” from its tendering activities in due course.

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