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Monadelphous lands another major deal as it secures a construction contract with Albemarle

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By Colin Hay - 
Monadelphous ASX MND construction contract Albemarle

Monadelphous Group (ASX: MND) has continued a major run of contract success with the signing of a significant construction contract with the local arm of global critical and new energy products developer Albemarle.

The approximately $200 million contract will be part of Albemarle’s expansion of the Kemerton lithium hydroxide plant in the south-west region of Western Australia.

The $1 billion plus Kemerton lithium hydroxide processing plant is considered to be one of world’s most modern facilities and the biggest in Australia.

Monadelphous’ work on the new expansion includes front-end pyromet structural, mechanical, piping, electrical and instrumentation works associated with new lithium processing trains 3 and 4.

The new contract award comes on the back of the Australian engineering company’s successful delivery of construction packages on trains 1 and 2, and the recently awarded long-term maintenance and sustaining capital projects contracts at the Kemerton operations.

Monadelphous managing director, Zoran Bebic, said work on the new contracts will commence onsite later this year and is expected to be completed in the second half of 2025.

Wave of contracts

He said this award, in addition to the company’s win of new work with Fortescue Metals Group (ASX: FMG) at the Christmas Creek mine site, are highlights of a new wave of major construction projects coming to market.

“We are extremely pleased to have secured these key construction opportunities and look forward to continuing to deliver high quality solutions for customers, as well as supporting local communities through the provision of employment and supply opportunities.”

The addition of trains 3 & 4 in the future is expected to see a doubling of annual production to 100,000 metric tonnes at full capacity at Kemerton. Future trains would be wholly owned and operated by Albemarle.

Flood of new contracts

The news on the Albemarle agreement comes less than a week after Monadelphous revealed it had secured new contracts and contract extensions with Fortescue Metals, BHP (ASX: BHP) and Rio Tinto (ASX: RIO) totalling approximately $150 million.

The scope of work contract for Fortescue Metals Group will include the supply and construction of an overland conveyor and transfer station at the Christmas Creek mine site in the Pilbara region of Western Australia.

It also includes civil, structural, mechanical, piping, electrical and instrumentation works, commences immediately and is expected to be completed in the first half of 2024.

On top of that deal, Monadelphous secured a two-year extension to its existing maintenance services contract at BHP’s Olympic Dam operations in South Australia.

The scope of work at Olympic Dam includes mechanical and electrical maintenance, shutdown and project services.

Monadelphous also agreed to two-year extension to its existing contract with Rio Tinto to continue providing mechanical, electrical and access maintenance services for fixed plant shutdowns at its Gove operations in the Northern Territory.

That Rio Tinto extension came on top of two earlier contracts with Rio under its Sustaining Capital Projects Panel Agreement to undertake upgrades to the conveyor gravity take up systems at Tom Price and Cape Lambert Port A in the Pilbara.

BHP work landed

In mid-June Monadelphous revealed it landed two further BHP pieces of work.

The company was successful in securing a further three-year framework agreement for BHP’s Western Australian Iron Ore Asset Projects providing multidisciplinary works to BHP’s operations in the Pilbara.

On the other side of the country, the company won a three-year contract with BHP Mitsubishi Alliance (BMA), with two one-year extension options, to continue providing shutdown and maintenance services and minor capital projects on BMA’s draglines and coal preparation plant operations in the Bowen Basin in Queensland.