Tag Archives: UGL

UGL banks A$200 million of work from Rio Tinto, Roy Hill and BHP

UGL says it has secured several construction and maintenance contracts with Rio Tinto, Roy Hill and BHP with a combined value of more than A$200 million ($143 million).

The contracts will be executed over a multi-year period, providing mechanical, electrical, instrumentation and access services for maintenance, shutdowns and sustaining capital projects, the CIMIC Group subsidiary said.

The contracts include civil, structural, mechanical, piping, electrical, communications and instrumentation work for Rio Tinto at the Mesa J PP2 Rescreening Plant in Western Australia. The project, part of Rio’s Robe Valley Sustaining iron ore project, will see around 160 people employed. Works will commence immediately and continue until September 2021, UGL says.

Also with Rio Tinto, UGL has secured a contract extension for scheduled major shutdown services at Rio Tinto’s Gove alumina refinery, in the Northern Territory of Australia.

Back in the Pilbara, UGL will install a run of mine crusher and materials handling circuit for Roy Hill’s iron ore operation. Comprising supply, structural, mechanical, electrical and instrumentation works, the project will employ some 100 people, it said.

Lastly, the company was appointed to BHP’s engineering services panel to provide civil, structural, mechanical, piping, electrical, instrumentation and rail services for shutdowns and sustaining capital projects across BHP’s Western Australian iron ore mine site and port operations, and rail facilities in the Pilbara.

CIMIC Group Chief Executive Officer, Juan Santamaria, said: “These contracts are demonstration of UGL’s 30 years of experience in building partnerships with leading mining companies and delivering solid performance of maintenance and shutdown services.”

UGL Managing Director, Jason Spears, added: “These new contracts and contract extensions highlight UGL’s capabilities in the mining sector and expand on our strong relationships with our clients. We look forward to carrying out these contracts in a safe and reliable manner.”

CIMIC eyes more coal work as Q1 financials hold up

Australia-based engineering-led group, CIMIC, posted “robust” operating profit margins in its March quarter results, remarking that the mining market is proving resilient throughout the turbulence caused by the fallout of the COVID-19 pandemic.

Revenue came in at A$3.3 billion ($2.1 billion) for the three-month period, slightly down on last year’s A$3.4 billion, while net profit after tax was A$166 million, compared with A$181.1 million in the March quarter of 2019.

Its operating profit margin was 8.4% for the period.

Throughout the quarter, the company said it had witnessed stable investment in capital expenditure to sustain mining operations. Its UGL subsidiary secured contracts to provide maintenance, shutdown and project services for clients in the mining sector, and its Thiess and Sedgman subsidiaries secured framework agreements with Rio Tinto Iron Ore, in Western Australia, and variations to operations contracts in New South Wales, respectively.

The future prospects for the company look good with, as at March 31, around A$90 billion of tenders relevant to CIMIC expected to be bid and/or awarded for the remainder of 2020, and around A$400 billion of projects coming to the market in 2021 and beyond, it said.

Some major projects the company is currently bidding on include the Lake Vermont mining extension contract in Queensland, Australia. CIMIC’s Thiess is currently working on this Jellinbah Group-owned coal asset through a schedule of rates contract that sees it carry out coal mining, clearing and grubbing, topsoil removal, drill and blast, overburden removal and rehabilitation of final landforms. It also provides all mobile plant and equipment and operates and maintains the client’s coal handling and preparation plant at the site, according to Thiess.

Another contract the company is eying up for more work is the Kaltim Prima Coal (KPC) mining extension in Indonesia. Again, Thiess has a schedule of rates contract in place at the 11 Mt/y Sangatta coal operation and the company hopes it can continue its relationship with the mine with a 2022 contract extension.

CIMIC’s UGL to service Alcoa alumina refineries, Bowen Basin clients

CIMIC Group says its services specialist, UGL, has been awarded new contracts worth A$180 million ($123 million) with Alcoa, in Western Australia, and “multiple clients” in the coal-rich Bowen Basin of Queensland.

These new contracts will be executed over a three-year period, providing mechanical, electrical, instrumentation and access services for maintenance, shutdowns and sustaining capital projects, it said.

The work with Alcoa is across the Wagerup and Pinjarra alumina refineries and involves “multi-discipline services” over three years.

In Queensland, UGL is due to carry out maintenance, shutdown and project services across multiple sites and with multiple clients in the Bowen Basin.

UGL Managing Director, Jason Spears, said: “We are excited to be leveraging our 30 years of experience in the mining industry to support key organisations in the resources sector. Our strong working partnerships with leading mining organisations support UGL’s reputation for solid performance and safe delivery of maintenance and shutdown services.”

CIMIC’s UGL adds mining and rail work to roster

CIMIC Group company UGL has been awarded new rail and mining services contracts across Australia that are set to generate combined revenues of around A$260 million ($177 million).

In the mining services sector, UGL has been awarded contracts, of up to three years, to deliver multi-disciplinary services including mechanical and piping, electrical and instrumentation, painting and insulation services, the company said without naming the client.

In the rail sector, UGL has secured additional work from Transport for NSW in operations and maintenance, and manufacturing services as part of its membership of the RailConnect NSW joint venture. In addition, its expertise as a leading manufacturer of locomotives and rolling stock has resulted in a contract to build four new diesel locomotives for Pacific National.

CIMIC Group Chief Executive Officer, Michael Wright, said: “CIMIC Group is Australia’s premier rail and mining services provider. Our end-to-end capability offered through our operating companies enables us to provide seamless, whole-of-life solutions for our infrastructure and resources clients.”

UGL Managing Director, Jason Spears, said: “We are extremely pleased to be recognised as a trusted and established partner to our clients in the rail and mining services sectors.

“These contracts reflect our strong ongoing relationships, and our reputation for the delivery of outcomes focused on safety, quality, technical innovation and expertise, and reliability.”

CIMIC exceeds profit guidance in 2018, positive on 2019 and beyond

CIMIC says it is expecting to top its net profit after tax 2018 result this year, supported by, among other things, continued strong performance out of the mining sector.

The engineering company, which has a number of mining-related subsidiaries, recorded net profit after tax of A$781 million ($557 million) in 2018, alongside revenue of A$14.7 billion. The former was up 11% year-on-year and at the top end of guidance of A$720-$780 million, while the latter rose 9% year-on-year. CIMIC said all its operating companies recorded growth during 2018.

And, the good news for CIMIC shareholders is that the company estimates its net profit after tax will increase in 2019, with guidance pitched at A$790-$840 million, subject to market conditions.

CIMIC Group Executive Chairman, Marcelino Fernández Verdes, said: “In 2018, we focused on enhancing the capability of our operating companies to provide integrated solutions, ensuring we deliver enduring value for our clients across the lifecycle of their assets, infrastructure and resources projects.

“This collaborative approach has driven an excellent result for our shareholders, is providing exciting opportunities for our people, and will power the next phase of our transformation through digitalisation and innovation.”

In mining, specifically, the company referenced some notable achievements in its results release. This included significant mining services contracts at the Mt Arthur coal operation in the Hunter Valley, Australia, and at the Encuentro Oxides mine in Chile for Thiess; maintenance and shutdown support services by UGL across BHP Billiton Mitsubishi Alliance coal mines in Queensland’s Bowen Basin; and engineering, procurement and construction of the Pumpkin Hollow copper concentrator in Nevada, US, by Sedgman.

The company also secured a A$150 million contract extension at BHP’s Caval Ridge coal mine (pictured) in Queensland.

CIMIC said: “Looking forward, at least A$130 billion of tenders relevant to CIMIC Group are expected to be bid and/or awarded in 2019, and around A$300 billion of projects are coming to the market in 2020 and beyond, including about $120 billion worth of public-private partnership (PPP) projects.”

Fernández Verdes added: “Our pipeline of work has further increased and we have a positive outlook for 2019 and beyond. This is led by the strong performance of the mining sector, an increasing level of infrastructure opportunities in Australia, and the trends towards more outsourcing of services and for greater investment in PPPs.”

UGL wins A$180 million maintenance contract at BMA coal operations

CIMIC Group company UGL has secured a new multi-year contract for maintenance and shutdown support services across BHP Billiton Mitsubishi Alliance (BMA) coal mines in the Bowen Basin of Queensland, Australia.

The demand-based contract will deliver revenue to UGL of approximately A$180 million ($126 million), CIMIC said.

Under the new contract UGL will deliver:

  • Coal Handling Preparation Plant (CHPP) maintenance and scheduled plant outage maintenance services, and;
  • Infrastructure maintenance services, including field equipment, remote fuel farms, sewerage and water treatment plants.

CIMIC Group Chief Executive Officer Michael Wright said: “This contract award signifies UGL’s position as a market leader in the delivery of maintenance and shutdown services and the strength of our capability in the Australian mining and services sectors.”

UGL Managing Director Jason Spears said: “We are proud of our long-standing partnership with BMA. This contract reflects our solid reputation for supporting the BMA operations teams through the safe delivery and performance of maintenance and shutdown services.”