RBR takes key steps towards securing slice of $70b LNG construction boom
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Special Report: The eagerly-awaited $70 billion LNG construction boom is about to kick-off in Mozambique – and RBR Group is positioning itself to grab a slice of the action.
RBR Group (ASX:RBR), which has a market capitalisation of just $17 million, told investors in its latest ASX update that it had now “laid the foundations to secure a slice of the $70 billion Mozambique LNG construction boom”.
RBR is the only ASX-listed company which gives investors a direct exposure to this opportunity in Mozambique.
As a result of its extensive efforts over the past five years, the company says it is now perfectly placed to be a key supplier of labour and training services to the three huge LNG projects, which are expected to need 50,000 workers during construction.
“The Final Investment Decision (FID) on the first of three impending LNG projects expected in coming quarter,” RBR said this week.
The FID is seen as a key milestone for RBR because it will de-risk the company by opening the door to a raft of potentially lucrative contracts.
In its latest operations update, RBR said it had secured a contract to begin assessing the suitability of Mozambican workers for the LNG construction activity.
“During the period, RBR grew its database of Mozambican workers to more than 250,000,” the company said.
“This is the biggest database of its kind in the country and includes Mozambican workers on the books of TEBA, which specialises in the supply of migrant workers to the South African mining industry.
“These workers all have a grounding in health and safety and some type of skill and RBR intends to use the TEBA workers as a source of local labour for the LNG projects.”
RBR said it had also partnered with Kuiper International, a leading labour broker specialising in oil and gas tradespeople, to secure access to skilled expatriates.
“This will enable RBR to offer fully functional crews of tradespeople, utilising its Mozambican labour licence,” the company said.
“RBR’s training subsidiary, Futuro Skills Mozambique, secured Mozambique’s first and currently only accreditation from the UK’s Engineering Construction Industry Training Board (ECITB) to assess, train and issue ECITB qualifications in health and safety, as well as five key technical disciplines: rigging, scaffolding, welding, pipe-fitting, and steel erecting.
“All locals working on the construction of the LNG projects will be required to meet the relevant ECITB standard.”