Primero picks up more iron ore, battery minerals work

ENGINEERING firm Primero Group has won roughly A$55 million in new contracts.
Primero picks up more iron ore, battery minerals work Primero picks up more iron ore, battery minerals work Primero picks up more iron ore, battery minerals work Primero picks up more iron ore, battery minerals work Primero picks up more iron ore, battery minerals work

Staff reporter

The company has been awarded the engineering, procurement and construction contract for the non-process infrastructure at Fortescue Metals Group's Eliwana mine and rail project in the Pilbara.

Work began in late July based on a limited notice to proceed, with the full contract now awarded to Primero following a successful early contractor involvement process.

The contract includes the complete engineering design, procurement and construction of heavy vehicle workshops and wash-down and refuelling infrastructure required for the new Eliwana mine.

Also in the Pilbara, Primero won two master services agreements with Rio Tinto for non-process infrastructure and structural, mechanical and piping services across the company's iron ore operations.

The two contracts have an initial term of three years, with an option for a two-year extension.

The work covers sustaining capital and maintenance projects required over that period across all Rio sites in the Pilbara.

Primero has also been awarded the EPC contract for Hazer Group's hydrogen/graphene commercial demonstration plant situated in WA.

The company has been awarded the early contractor involvement design works contract for a 130km water delivery pipeline and associated pumping stations for Covalent Lithium's Mt Holland feasibility study in WA.

The wins follow the award of preferred EPC status for Strandline Resources' Coburn mineral sands project earlier this week.

Primero was also buoyed by news from Piedmont Lithium, which awarded the firm preferred EPC status for a planned spodumene plant in North Carolina in July.

Piedmont announced a sales deal with Teslas this week, which it said would likely accelerate the Piedmont project.

Primeros' committed order book for FY21 now stands at approximately $285 million.

These revenues are expected to be delivered at an underlying FY21 EBITDA margin of approximately 6-8%.

In addition, Primero holds preferred EPC contractor status across multiple projects totalling approximately $900 million, including the Strandline and Piedmont preferred EPC positions.

Shares in Primero jumped 7% to 35c after earlier hitting a 52-week high of 42.5.