Mondium wins $400m Rio contract

Rio Tinto has awarded Perth-based engineering company Mondium a $400 million contract for works at the Western Turner Syncline phase two mine, located in the Pilbara.

Under the contract, the Monadelphous and Lycopodium joint venture will carry out engineering, procurement and construction works for the WTS2 mineral processing facilities and associated infrastructure, including the process plant and overland conveyer.

Works will commence in the first quarter of 2020 and are scheduled for completion in 2021.

Mondium managing director Andrew Carnie said the contract was a major strategic milestone for the company in its growth strategy.

“Mondium has been working hard to execute projects successfully and prove our capability,” he said.

“We are thrilled to be making great strides in our growth strategy and to have secured this significant contract with Rio Tinto.”

The secured works come on top of significant contracts awarded to the company last year, including a $100 million EPC contract at Talison Lithium’s Greenbushes project and a $52 million early start engineering contract at Mineral Commodities’ Munglinup graphite project.

Mondium was formed in October 2016, with Monadelphous holding a 60 per cent stake.

Monadelphous managing director Rob Velletri agreed the $400 million contract to Mondium was an historic win for the joint venture.

“The award illustrates the strong progress Mondium has made in cementing itself as a preferred and trusted provider of EPC services,” he said.

Lycopodium managing director Peter De Leo said he was pleased to further extend the company’s relationship with Rio Tinto.

“Over the years, Lycopodium has successfully delivered numerous projects for Rio Tinto and this most recent award to Mondium further strengthens the partnership between our organisations,” he said.

Shares in Lycopodium were up 2.07 per cent to trade at $5.92, while shares in Monadelphous were down 0.23 per cent to trade at $17.16 at 3:30 AEDT.