Diversification Strategy Captures $114M Qld Mining Contracts
Leading Australian mining and civil construction firm BGC Contracting Pty Ltd is delivering on its strategy to diversify its contract spread, announcing two key contract wins in Queensland.
BGC Contracting have been awarded a $97 million contract at Incitec Pivot Limited’s Phosphate Hill site and a $17 million contract with Resolute Mining’s Carpentaria Gold.
The five-year Phosphate Hill Mining contract, from October 2016, will see BGC Contracting providing mining services at the site to feed the onsite ammonium phosphate fertiliser manufacturing plant. The site is located 150km south of Mt Isa.
BGC Contracting CEO Greg Heylen said it was pleasing to re-engage and build upon a strong existing relationship with Incitec Pivot, having been a member of the Alliance (together with United Group Limited and Lend Lease Infrastructure Services Pty Ltd) to construct an ammonium nitrate plant in Moranbah, completed in 2012.
“In addition to a strong balance sheet to provide the required mining fleet, I believe our proven industry benchmark safety culture, performance and commitment to innovation proved to be an attractive formula for our client,” Mr Heylen said.
“We plan to introduce a number of innovations to the Phosphate Hill mining operations, including satellite guided excavations and new mining methodologies.”
The $17 million contract with Carpentaria Gold will support the restarting of open pit mining at Nolans East. The project is located in the Ravenswood district south of Townsville in Queensland. BGC Contracting will provide drilling, blasting, excavating, ore and waste haulage, engineering services and general mine site management.
The initial 15-month contract will run from August this year to November 2017, after which the next stage of the Ravenswood Extension Project may be approved.
Mr Heylen said that the company was developing strong relations in the gold sector and being able to offer Carpentaria Gold a cost-effective solution, combined with proven hard-rock and gold experience with the ability to support future growth had been important factors in the successful tender.
These two successful awards were part of a strategy to diversify into commodities beyond iron ore mining and into new geographical regions outside Western Australia and South Australia.
“These are important strategic wins for BGC Contracting as they fit well with our broader growth and diversification strategies,” he said.