WestStar will ‘jingle all the way’ to the bank with another Rio Tinto contract
Link copied to
WestStar’s (ASX:WSI) mining services business has scored yet another multi-million-dollar contract from big miner Rio Tinto – taking the WestStar Group order book to $30m in less than six months.
It’s SIMPEC’s third contract win in December and the second from Rio Tinto — and this time the company secured it directly from the tier one miner itself.
SIMPEC boss Mark Dimasi told Stockhead that delivering projects for a Tier 1 companies like Rio Tinto “puts SIMPEC on a different stage, and with good project management and execution should promote our brand in this space”.
SIMPEC will design and construct a Remote Draft Survey system — to increase ship turnaround and safety — at the massive Cape Lambert iron ore port, near Karratha in Western Australia.
This work will kick off almost immediately and be completed in the second quarter of next year.
SIMPEC has tendered for more than $150m of work over the past year.
WestStar director Philip Re told investors an order book of $30m only halfway through the year was a tremendous result for SIMPEC and the whole WestStar Group.
“SIMPEC is building great momentum and traction in the market and we look forward to the award of further contracts,” he said.
Last week, WestStar shares spiked over 92 per cent to an intra-day high of 2.5c after its revealed SIMPEC had won an $8m contract for Tianqi’s lithium plant in Western Australia.
It is the largest contract awarded to SIMPEC.
WestStar shares also rallied the week before when SIMPEC won a $4m contract for Rio’s West Angelas iron ore mine in the Pilbara.