SRG, BGC Contracting sign term extension deal for Arrium’s SA iron ore projects

Complex services company SRG has secured a long term agreement with BGC Contracting to extend the terms of its drill and blast operations at Arrium’s South Middleback Ranges and Iron Knob mine sites in South Australia.

The works conducted under this five-year agreement are set to generate around $100 million in revenue, which will increase SRG’s work in hand to $340 million. The agreement will use SRG’s existing drill rig fleet, with few added capital purchases needed in the near term.

SRG managing director David Macgeorge said the agreement reinforces its working relationship with BGC Contracting.

“I am pleased that this long term contract with BGC now brings our work in hand to a record $340 million and further demonstrates SRG’s strong progress through the Development Phase of our strategy,” he said.

BGC Contracting won the $720 million five-year contract for Arrium’s two iron ore projects in March this year, and will provide a range of mining services including drilling, blasting, hauling, loading, dumping and train load-out.

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