Engineering company Monadelphous Group Ltd has entered into an agreement to acquire Melchor Contracting, a Perth-based structural concrete and associated works business, subject to the satisfaction of conditions precedent that are usual in transactions of this nature.
Melchor Contracting offers a full structural concrete package capability, including detailed earthworks, formwork, reinforcement fixing and concrete placement in the resources, energy and infrastructure sectors. It currently employs around 300 people and generates revenue of approximately A$100 million per annum.
The acquisition of Melchor Contracting it said “is aligned to Monadelphous’ markets and growth strategy, broadening the company’s multidisciplinary construction offering to include civil capability.”
Monadelphous will make an initial cash payment of A$10 million to acquire Melchor Contracting, followed by a purchase price adjustment in accordance with the final working capital position at completion. The company expects the transaction to be completed in the first half of the current financial year.
Melchor’s ongoing projects include all in-situ concrete works for BHP’s West Musgrave copper nickel operation including reinforcement, formwork and concrete placement for the primary crusher, vertical roller mills and two reclaim tunnels.
For the Greenbushes Chemical Grade Plant 3 (CGP3), it is working for client Lycopodium on detailed earthworks, formwork, reinforcement, concrete, supply & installation of cast-in items & HD bolts, installation of primary crusher drainage & ROM backfill, plus installation of the fine ore stockpile tunnel. Greenbushes is the world’s largest lithium mining operation. The site comprises a large open-pit mine and four processing plants.
The construction of Chemical Grade Plant 3 (CGP3) was approved in March 2022 following the conclusion of a front-end-engineering and design process and updated capital cost estimate. Once complete, CGP3 is expected to contribute an additional 520,000 t/y of spodumene concentrate to the production profile once construction is completed in early 2025. Greenbushes is owned by Talison Lithium, a JV between US major Albermarle Corporation and JV partner Tianqi Lithium and IGO.