Valmec has been awarded A$23 million ($14.9 million) worth of new projects across Australia, including another works package from Newmont for its Tanami gold mine in the Northern Territory.
The contract with Newmont Mining Services Pty is for an additional package of infrastructure works at the Tanami Expansion 2 (TE2) project, Valmec said.
The energy services company was awarded the original A$6 million TE2 contract back in June 2019, with the majority of the works expected to be completed by November 2019.
Newmont’s board signed off on the TE2 project in October 2019. The project is expected to exceed the company’s required internal rate of return with profitable production and mine life extending beyond 2040. The expansion includes construction of a 1,460 m shaft, additional capacity in the processing plant, and supporting infrastructure to enable profitable recovery of ore at a depth of 2,140 m below surface.
Valmec, meanwhile, said the group’s current order book totalling circa-A$65 million remains “robust”, with several larger upstream energy and infrastructure projects also expected to be committed before June 30, 2020.
Valmec’s Managing Director, Steve Dropulich, said: “Together with Valmec’s current suite of services in onshore gas infrastructure, our latest awarded projects and service contracts are testament to the resilience of our market offerings, even within these challenging COVID-19 economic conditions.”