Civmec – a construction and engineering services provider in Australia – has been issued a notice of award as well as several other projects that brings its total order book to more than A$1.1 billion ($1.07 billion).
The notice of award is for the Mount Holland lithium project in Western Australia, which will be undertaken by the subsidiaries of Wesfarmers and Sociedad Química y Minera de Chile S.A. The agreement was administered by Covalent Lithium the 50:50 joint venture manager of the two companies.
Civmec has been tasked to construct a refinery which will receive the lithium concentrate produced at the main Mount Holland site. The lithium concentrate will subsequently be converted into high-purity lithium hydroxide monohydrate.
Civmec’s scope of work includes structural and piping fabrication, refractory lining and insulation works.
Located at Kwinara in Western Australia, the refinery is within 10km of Civmec’s flagship facilities in Henderson. The company expects works on the project to commence in 2022 and last till 2024.
Aside from this, Civmec has secured an infrastructure contract to build a bridge as part of the Transport for New South Wales Sydney Gateway road project.
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Upon completion, the A$2.6 billion project will provide high-capacity connection from the St Peters interchange to the Sydney Airport.
Works for the project will be carried out at Civmec’s Newcastle facility in New South Wales.
Meanwhile, Civmec has been getting more work for maintenance and shutdowns from Roy Hill – a long-term client. It has also been looking out for opportunities in maintenance, in hopes of securing a greater market share in the East and West coast of the country.
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“Demand for heavy engineering and construction services in the private and public sectors in Australia remains strong and these new contracts underscore, yet again, our strength as a top-tier contractor,” says Patrick Tallon, CEO of Civmec.
He adds that the company’s efforts to generate more recurring income has been paying off as they have been getting more work involving maintenance and capital works from both new and existing clients.
Shares in Civmec closed up 0.5 cents or 0.76% at 66 cents on Dec 9.
Cover image: file photo
This article was updated at 5.48pm on Dec 13, to reflect Civmec's clarification on SGX on its order book
