ausenco thriving

Mining's experts ride the downturn
Jamie Freed
March 9, 2009

Ausenco thriving
The engineering group Ausenco usually comes into the mining mix at the project development stage. It does the engineering, procurement and construction management services for projects, which gives it a leading role in the development of new mines around the world.

Unfortunately, some of Ausenco's customers, such as OZ Minerals and Rio have, run into financial difficulties as of late and have had to defer projects like the Martabe goldmine in Indonesia and an expansion of the Corumba iron ore mine in Brazil.

But now that Vale has bought Corumba from Rio, it could decide to reactivate the expansion. And OZ is supposedly close to selling Martabe to a syndicate led by the former Oxiana boss Owen Hegarty for $200 million, although the deal seems to be taking longer than expected amid speculation of financing difficulties. If Martabe is sold, Ausenco will be in the box seat to restart work on the project, although it is possible its fee may be renegotiated in light of the downturn.

Despite the downturn, Ausenco has recently gained contracts, such as Brockman Resources's Marillana pre-feasibility study in the Pilbara and Vale's Ellensfield coal study in Queensland. It already has a relationship with OZ's suitor, China Minmetals, based on work in Peru.

Source: The Sydney Morning Herald