CIVMEC, Laing O'Rourke awarded $146m contract

VDM Group Ltd subsidiary, Civmec Construction & Engineering Pty Ltd, together with its joint venture partner UK-based Laing O'Rourke have been awarded a $146 million project by Argyle Diamonds.

CIVMEC will work with its 75 per cent joint venture partner to deliver the project of which CIVMEC's portion is $36.5 million in value.

The contract involves constructing crushing, screening, conveying and dewatering requirements to Argyle's underground mine and to upgrade the above ground infrastructure and ancillary facilities, together with the overland conveyor, to cater for the additional ore quantity.

CIVMEC will undertake all civil work including earthworks and concrete works associated with the conveyor systems, the crushers, dewatering plant and associated infrastructure.

Full announcement pasted below:

VDM Group Ltd (ASX: VMG) subsidiary Civmec Construction & Engineering Pty Ltd (CIVMEC) together with its joint venture partner has been awarded a contract by Argyle Diamonds to construct their crushing, screening, conveying and dewatering requirements to their underground mine and to upgrade the above ground infrastructure and ancillary facilities, together with the overland conveyor, to cater for the additional ore quantity.

CIVMEC will work with its 75% joint venture partner Laíng O'Rourke ("LOR") to deliver the project valued at $146 million, of which CIVMEC's portion is $36.5 million in value.

CIVMEC will undertake all civil work including earthworks and concrete works associated with the conveyor systems, the crushers, dewatering plant and associated infrastructure.

LOR will undertake all mechanical, structural and electrical works.

Construction is due to commence in January 2008; the contract will generate revenue of $12.1 million this financial year for Civmec, with completion due in September 2010.

Commenting on the contract CIVMEC's Managing Director, Stuart Cuthbert, said: "CIVMEC are known leaders in their field of underground construction and it's great to get this significant project with a highly respected partner in Laing O'Rourke for a quality client such as Argyle Diamonds."