Tag Archives: Rob Velletri

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

Base metals, Equipment maintenance, Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , , , , , ,

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 engineering and maintenance divisions hit by COVID-19

Energy minerals, Mine operation news, Mining maintenance, Mining services, Steel and iron ore, , , , , , ,

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.”

Monadelphous after Chile mining exposure with Buildtek, Maqrent deal

Mining mergers and acquisitions, Mining services, , , , , , ,

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.