Tag Archives: Monadelphous

Monadelphous adds to mining work with BHP, Rio and Codelco contracts

Monadelphous Group Ltd says it has secured a number of new construction and maintenance contracts in the resources sector totalling approximately A$200 million ($146 million).

In Queensland, Australia, Monadelphous has been awarded a new three-year contract with Queensland Alumina Ltd to continue to provide general mechanical maintenance services at its operations in Gladstone. The company has also secured a 10-month extension to its existing contract with BHP Mitsubishi Alliance for provision of dragline shutdown and maintenance services to its operations in the Bowen Basin.

Monadelphous has secured a number of contracts in the iron ore sector in the Pilbara region of Western Australia.

This includes two contracts with BHP under its existing WAIO Site Engineering Panel Agreement. The first is for the refurbishment of cells and rotating equipment on BHP’s Nelson Point Car Dumper 1, with work expected to be completed in the December quarter of 2021, and secondly, an extension to the haul road at the Jimblebar mine, with work expected to be completed in the June quarter of 2022.

A contract has also been secured with Rio Tinto for construction associated with the Marandoo Dewatering Sump Project, with work expected to be completed in the March quarter of 2022.

In Chile, Monadelphous’ maintenance and construction services business, Buildtek, has secured a construction contract with Codelco for work associated with the development of a new underground section of the El Teniente copper mine in Rancagua. Work is expected to be completed in the March quarter of 2023.

The company acquired a majority stake in Buildtek back in 2019.

Monadelphous Managing Director, Rob Velletri, said these new contracts and extensions continued to demonstrate the company’s solid track record of delivering for its customers.

“We are pleased to have secured this work and look forward to continuing to build on our valued long-term customer relationships,” he said.

Monadelphous boosts fabrication design, supply options in Western Australia

Engineering firm Monadelphous is further integrating its supply chain in the south-west region of Western Australia with the acquisition of RTW Steel Fabrication and Construction.

Located in Capel, Western Australia, RTW offers industry-leading steel fabrication, processing and construction services for mining, industrial and commercial projects throughout Western Australia, Monadelphous said. It has been a long-term supplier of these services to Monadelphous and many other leading businesses, it added.

Monadelphous’ South-West Area Manager, Mark Holdman, said the acquisition of a local steel fabrication business in the region contributes to Monadelphous’ further growth in the region.

“RTW, as part of the Monadelphous team, complements our existing operations in the south-west and consolidates our presence in the area,” he said. “But, more importantly, it gives us the opportunity to offer additional services to existing customers including design, estimating, supply/fabrication and installation.”

Monadelphous Group banks engineering work with BHP, Rio and Codelco

Monadelphous Group Ltd has secured several new construction and maintenance contracts in the resources sector totalling around A$215 million ($163 million).

Included within this slate of new work is a contract for smelter campaign maintenance works at the BHP owned Olympic Dam copper mine in South Australia. Monadelphous said work will commence immediately and is expected to be completed in December 2021.

Monadelphous has also been awarded a two-year extension to its existing maintenance services contract at Olympic Dam. The contract scope includes civil, structural, mechanical, building maintenance and electrical services, as well as the addition of underground rail maintenance services.

In the iron ore sector in the Pilbara region of Western Australia, Monadelphous has been awarded several contracts, including several sustaining capital contracts under its panel agreements with BHP and Rio Tinto; and a contract with Rio for the provision of construction and support services associated with the Gudai-Darri iron ore project, with work expected to be completed by the end of 2021.

In Chile, the company’s maintenance and construction services business, Buildtek, has secured a number of new contracts, including a three-year contract with Codelco for the operations and maintenance of water infrastructure at the Chuquicamata underground mine in Calama. Buildtek has been providing these services on this site since 2018.

In addition, the engineering company has secured two new contracts with Codelco for maintenance activities associated with the concentrator plant at El Teniente mine in Rancagua; and a contract with BHP Minera Escondida for the construction of modularised pump stations and associated infrastructure of the Escondida copper mine in Coloso.

Finally, Monadelphous, in collaboration with global heavy lifting services company Fagioli, has secured a contract with NMT International (Australia) to deliver specialist heavy lifting and haulage services at the Iron Bridge magnetite project, a joint venture between Fortescue Metals Group subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB. The strategic collaboration with Fagioli enables Monadelphous’ specialist Heavy Lift business to increase capacity and broaden capability for the Australian resources and energy markets, it said.

Monadelphous set to take on more BHP work in Australia, Chile

Monadelphous Group has gained a further foothold in numerous BHP majority-owned projects as part of its latest construction and maintenance contract awards in the resources and energy sectors that come with a combined value of around A$100 million ($72 million).

Under its recently awarded WAIO Site Engineering Panel Framework Agreement with BHP, the company has been awarded the following contracts in the Pilbara region of Western Australia:

  • A contract for the supply and installation of the Jimblebar Transfer Station project, with work expected to be completed by December 2020; and
  • A contract for the refurbishment of Car Dumper 3 at Nelson Point, Port Hedland, with work expected to be undertaken during the second half of 2020.

Further, Monadelphous has also been awarded a contract under its WAIO Asset Panel Framework Agreement with BHP for the Port Availability Improvement project to provide multidisciplinary brownfield modification works to conveyors and transfer chutes across the Nelson Point and Finucane Island facilities, in Western Australia. The work is expected to be completed in the second half of the 2021.

Then, in Chile, Monadelphous has secured several new contracts through its maintenance and construction services business, Buildtek, which it acquired late last year.

This includes two contracts with Minera Escondida BHP, for the construction and assembly of a communications tower and associated infrastructure at the Escondida copper mine, as well as an upgrade to the conveyor system feeding the Filter Plant Warehouse at Coloso Port, both in the Antofagasta region.

These contract awards were announced the day before Monadelphous released its 2020 financial year results, which showed the company generated A$1.65 billion of revenue in the 12 months and produced a net profit after tax result of A$36.5 million.

REMA TIP TOP adds more conveyor belting to Monadelphous South Flank contract

REMA TIP TOP Australia says it has been contracted by Monadelphous to install a further 24 km of conveyor belting and provide expert splicing services for the “outflows infrastructure” at BHP’s South Flank iron ore project, in the Pilbara of Western Australia.

It follows a contract to install more than 50 km of conveyor belting at South Flank that was awarded last year. Monadelphous, meanwhile, was awarded a major infrasture package for the mine build in February 2019.

The new contract is the third in a series of agreements that sees REMA TIP TOP supporting Monadelphous to deliver key infrastructure projects for the region’s largest miners.

This includes an agreement to provide splicing capabilities across more than 10 km of new overland conveyor and modifications to three existing plant conveyors at Rio Tinto’s West Angelas Deposits C & D project.

REMA TIP TOP Industry Australia CEO, Michel Ciepelinski, said: “This new contract is a testament to Monadelphous’ faith in our ability to deliver. We have demonstrated that we have both the skills and capacity to provide expert services in full conveyor solutions and this new agreement extends our successful relationship.

“Now, more than ever before, we are committed to helping Australian industry keep moving and its projects like this that are critical in ensuring our economy and the nation maintains momentum.”

The new contract will see the delivery of belt installation works across 13 conveyors, which tie into the existing BHP Mining Area C stock yard.

Monadelphous engineering and maintenance divisions hit by COVID-19

Engineering company Monadelphous Group says both its Engineering Construction and Maintenance divisions have been hit by measures to curb the spread of the COVID-19 virus.

In reaction to this, it said its Chairman, Managing Director and Non-Executive Directors had agreed to a 30% reduction in salary and fees for the next six months, while the Executive and General Management teams would take 10-20% salary cuts over the same period.

In a market update issued last week, Monadelphous said COVID-19 operational impact measures taken by governments and industry across the world to prevent further spread of the virus had impacted the economy, resulting in the delay, suspension, deferral or reduction of services across a range of the company’s projects and worksites, as well as materially disrupting productivity levels.

“Monadelphous continues to take all necessary measures required to proactively manage the business through this unprecedented period to ensure the safety of its employees and sustain business continuity,” it said.

In the Engineering Construction division, which recently secured major contracts on BHP’s South Flank, Rio Tinto’s West Angelas (pictured) and Albemarle Lithium’s Kemerton projects, Monadelphous said it had experienced supply chain issues causing delays on large resources construction projects currently in progress. It had also witnessed several temporary deferrals to potential new construction contract award dates.

In its maintenance division, the company has experienced a material reduction in activity levels, particularly in fly-in-fly-out operations with customers reducing non-essential work, delaying discretionary maintenance spend and deferring shutdowns, it said.

On top of this, and following several water projects approaching completion recently experiencing an escalation in contract disputes and “disappointing levels” of profitability, Monadelphous said it planned to discontinue its Water Infrastructure business operations in New Zealand, plus consolidate its east coast engineering construction operations into a single Eastern Australian business unit. This followed a strategic and operational review of the business in Australia and New Zealand.

Rob Velletri, Monadelphous Managing Director, said: “We will continue to work closely with our customers during these challenging and uncertain times. Our disciplined and prudent management, loyal workforce and strong balance sheet mean that we are well positioned to deal with the challenges ahead, and the opportunities that will arise in time. I am confident that the actions we have taken to refocus the Water Infrastructure business will deliver more profitable and sustainable pipeline of opportunities over the longer term.”

Mondium secures WTS2 iron ore contract from Rio Tinto

Rio Tinto has awarded Perth-based Mondium a A$400 million ($276 million) contract to design and construct the Western Turner Syncline Phase 2 (WTS2) mine in the Pilbara of Western Australia.

Mondium, a joint venture involving Monadelphous and Lycopodium, will undertake all engineering and design, procurement and site construction works associated with the WTS2 development, including the process plant, overland conveyor and non-process infrastructure.

Back in November, Rio said it would invest $749 million in the development of WTS2 at its Greater Tom Price operations, facilitating mining of existing and new deposits and including construction of a new crusher as well as a 13 km conveyor. In addition to this, the haul truck fleet at the mine will be fitted with Autonomous Haulage System technology to enable autonomous haulage from 2021.

Mondium’s work is expected to create 450 jobs starting in the March quarter, with completion slated for 2021. Rio said Mondium and it would work closely to ensure the contract provides local and Indigenous employment as well as business opportunities in the region.

Rio Tinto Iron Ore CEO, Chris Salisbury, said: “We’re committed to supporting WA businesses, buying locally and supporting our communities through the creation of jobs. We’re pleased to award this contract to Mondium who share those values.”

Mondelphous strengthens BHP ties in Western Australia

Monadelphous Group has secured a number of contracts across Western Australia with BHP as part of a package of construction and maintenance agreements worth circa-A$110 million ($75 million).

The news comes on top of existing maintenance and other contracts the company has previously secured with the major mining company.

These include a contract at the BHP-owned Mining Area C iron ore mine site in the Pilbara, where Monadelphous will provide upgrades to existing conveyer equipment, and power switching and stackers. Work is expected to be completed in the September quarter of 2020.

The engineering firm has also won a contract for the provision of services associated with the demolition and rehabilitation of a number of end-of-life facilities at Nelson Point in Port Hedland. This contract is expected to commence in January 2020 and will be completed in the September quarter of 2020.

Monadelphous will also carry out a 12-month extension to its existing contract with BHP’s Nickel West division for the provision of maintenance, shutdowns and off-site repair services at the Kalgoorlie nickel smelter.

Lastly with BHP, the company has been awarded a contract with thyssenkrupp Industrial Solutions (Australia) for the construction of a reclaimer and two stackers at BHP’s South Flank project in the Pilbara. thyssenkrupp has previously said these will be the largest rail mounted stacker/reclaimers in the world, with a loading capacity of 20,000 t/h.

Monadelphous’ work is expected to be completed in the March quarter of 2021.

In Queensland, meanwhile, the ASX-listed company has secured a three-year contract for the provision of general mechanical and maintenance services as part of Incitec Pivot’s scheduled turnarounds for its Queensland manufacturing facilities, it said.

Monadelphous signs up Track’em for construction material management

A leader in cloud-based tracking technology in the resource sector says it has been selected by engineering company Monadelphous Group to track its construction materials across some of its major mining and mineral projects.

Track’em will assist Monadelphous by giving it continuous visibility and control over construction materials required for the delivery of specific projects, the Australia-based tech firm said.

Kashif Saleem, Founder and CEO, Track’em, said: “Through our tracking software, Monadelphous will have continuous insight into the location, status and custodian of their materials. Track’em is committed to delivering powerful and data-driven intelligence and we look forward to working closely with Monadelphous to drive successful delivery.”

Besides managing materials across locations and custodians, the engineering company will also use Track’em’s patented building information modelling (BIM) integration to enrich its BIM models with a digital twin of construction progress and material status, according to Saleem.

He concluded: “With our technology, engineers and planners will have visibility on progress in real time, without having to be physically present on site. On top of our industry-leading technology, Monadelphous will be able to leverage our highly valued 24/7 local phone support, providing further peace of mind.”

Track’em says it has tracked over 10 million items in engineering and construction projects across the world’s largest mining, and oil and gas projects, helping asset owners, engineering companies and contractors deliver projects on time and budget.

Monadelphous after Chile mining exposure with Buildtek, Maqrent deal

Engineering company Monadelphous Group is expanding its South America presence through the acquisition of 75% stakes in Chile-based construction and maintenance services contractor, Buildtek SpA, and plant and equipment hire company, Maqrent SpA.

Buildtek provides multidisciplinary construction and maintenance services to the mining sector in Chile, having facilities in Antofagasta, Rancagua and Calama, and a head office in Santiago. Maqrent provides a range of plant, machinery and equipment for hire to Buildtek and external customers in the mining and construction sectors. Customers include major resources and energy companies such as Codelco, BHP, Albemarle, Anglo American and GNL Quintero. The business achieved an annual turnover in excess of CLP20 billion (A$24.7 million) in the last financial year.

Monadelphous Managing Director, Rob Velletri, said the acquisition formed part of the company’s markets and growth strategy, through the expansion of its existing services into new geographical regions. The announcement was the result of “significant efforts” over a number of years to understand the South American market, he added.

“The acquisition enables our entry into the growing Chilean resources market through an established and well-recognised operator. We will support Buildtek and Maqrent as they continue to grow and expand in the South American market,” he said.

Monadelphous is paying CLP5 billion in cash to acquire 75% of the companies, with an option to purchase the remaining 25% in three years’ time. The companies were founded in 2007 by Victor Valech and employ around 700 people. Valech will continue to manage and run the operations in Chile, with support from Monadelphous.