South32 has awarded a long-term engineering services contract at the Worsley Alumina bauxite operations in Western Australia to SRG Global.
WA-based SRG Global will provide engineered access solutions to the site, including scaffolding and rope access technicians.
The works will commence next month for an initial three-year term, with the option to extend the contract by a further three years to 2025. The extensive nature of the contract will require SRG Global to increase its full-time workforce by 100 people.
The initial three-year contract term is valued at $32 million, increasing to $60 million for the full six years should the contract be extended.
South32’s mines bauxite from the Worsley Alumina mine near the town of Boddington, which is transported via conveyor for over 50 kilometres for conversion into white alumina powder at a refinery near the town of Collie in the South West region.
SRG Global managing director David Macgeorge said the contract represented a significant advancement for the company’s plans to deliver recurring term revenue within the asset services sector.
“The opportunity to work with a world-renowned mining company like South32 at its long-established Worsley Alumina project in South West WA is a great achievement for SRG Global,” Macgeorge said.
“The effort our team put in during the competitive tendering process is admirable and I commend them on a fantastic result.”
SRG’s other recent mining contracts include a three-year drill and blast contract at several Evolution Mining operations, and a five-year ground support services contract at KCGM’s Mt Charlotte gold mine in WA.
Worsley is one of South32’s larger global operations, accounting for $1.47 billion in revenue and $422 million in underlying earnings before interest and taxes in the 2018 financial year. South32 is the majority owner at 86 per cent ownership, with the remainder split between Japan Alumina (10 per cent) and Sojitz Alumina (4 per cent).