South32 contracts SRG for $120m

SRG Global has secured a new, $100 million contract with South32 for work at its alumina operations in Western Australia, as well as a $25 million extension.

SRG will provide specialist refractory services at South32’s Worsley alumina operations under a new, eight-year contract. The scope of work includes gunning, casting and installation of refractory products and anchors.

South32 has also extended SRG’s existing, three-year access services contract by another two years.

That contract was first awarded to SRG in 2019, and will continue until 2027.

South32 holds an 86 per cent interest in Worsley, while Japan Alumina Associates owns 10 per cent and the Australian arm of Sojitz Resources owns four per cent.

SRG managing director David Macgeorge said the company was excited to expand its partnership with South32.

“This continues our focus on cross-selling our diverse capability to add value to key clients and our strategy of transitioning the earnings profile of the business to annuity style asset services contracts,” he said.

SRG has secured more than $250 million in contracts since June 30, including the recently awarded work on the Capital Square development, in the Perth CBD.

Shares in SRG were up 7 per cent at 1:04pm AEST to trade at 31 cents.