Calibre snares Roy Hill work Thursday, 29 August 2013
Lauren Barrett
CALIBRE Group has bagged a $A23 million contract to undertake design works for a railway and other infrastructure associated with the massive Roy Hill iron ore project in Western Australia.
Samsung C&T Corp, which was awarded the engineering, procurement and construction contract for the massive development, handed the design contract down to Calibre’s engineering and project delivery business, Calibre Global.
Under the contract, the company will be responsible for the detailed design of about 330km of heavy-haul main line railway, passing loops and other associated civil infrastructure for Roy Hill.
Calibre noted that the design work was not subject to Roy Hill project debt financing.
The project will require up to 60 personnel at its peak, with work on the design stage expected to be completed by the end of the second quarter in the 2014 financial year.
“The award follows the earlier signing of a memorandum of understanding with Samsung and we believe it positions the company well for further potential work with Samsung on Roy Hill,” Calibre acting managing director and chairman Ray Horsburgh said.
Roy Hill, 115km north of Newman, is expected to be one of Australia’s biggest iron ore mines in decades, with a peak production of 55 million tonnes per annum of iron ore.
As well as a heavy-haul railway, the development will include new berths at Port Hedland.
Gina Rinehart’s Hancock Prospecting holds a 70% interest in the project and is chasing about $7 billion of the project’s estimated $10 billion capital costs.
The company previously expressed confidence in securing a financing package for the development of Roy Hill by the end of the year, however, a specific deadline has not been given.
Production is scheduled to begin in 2015.
Shares in Calibre gained 2% yesterday to 51c.
CGH Price at posting:
51.5¢ Sentiment: None Disclosure: Not Held
