Construction conglomerate WestStar Industrial (ASX:WSI) has reported its wholly-owned subsidiary, SIMPEC Pty Ltd, has been awarded an $8 million contract for piping construction at the Tianqi Lithium Kwinana processing plant in Western Australia.
The successful tender is the largest single contract received by the construction contractor business to date.
SIMPEC will work on both piping and insulation at the processing plant’s Pyromet area, with the estimated $700 million refinery approaching completion in early 2019.
At completion the project is estimated to be one of the biggest lithium hydroxide plants in the world, with an estimated total output of 48,000 tonnes per annum.
The major project win represents improving momentum for the construction upstart and repeat business with Tianqi’s Kwiniana project head contractor MSP Engineering.
MSP has also worked with SIMPEC on the construction of a process-water tanks package as well as high-voltage fibre optic cables and concrete pits at the Talison lithium mine in Greenbushes.
The work was awarded as part of the Chemical Grade Plant 2 Project upgrade which is due for commissioning in the second quarter of 2019.
Greenbushes is estimated to host the world’s largest known lithium spodumene reserves and has a current mine life of approximately 40 years.
Commenting on the growing order book with globally significant lithium projects, WestStar Industrial director Bert Mondello said, “This award will no doubt place SIMPEC in a strong position to win further work and larger contracts.”
“With a strong pipeline and increased tendering activity, we are confident that further awards will result early next year.”
“The group order book is now at $25 million only half way through the year with much of this total falling within FY19, against full year revenue of $9 million for WestStar last year,” he said.
SIMPEC has tendered for more than $150 million of work throughout the financial year and is increasingly attracting work on major projects.
Last week the company received a contract for works at Rio Tinto’s West Angelas mine, and has also conducted work at BHP’s South Flank mine and Illuka Resources mineral sands process plant in Cataby, Western Australia.