WestStar Industrial’s (ASX: WSI) engineering contractor business SIMPEC has been awarded a $5 million contract by Tianqi Lithium Kwinana for the provision of stage one engineering and commissioning support services at Tianqi’s LHPP1 lithium processing plant in Kwinana.
It signals an extension to SIMPEC’s current contract at LHPP1 and will comprise structural, mechanical and piping (SMP) and electrical and instrumentation (E&I) work to assist Tianqi Lithium Kwinana with handover of the plant to operations.
The new contract boosts WestStar’s total contract value for the first four months of the 2020 financial year to approximately $23 million.
In July, the company announced SIMPEC had been awarded $5 million in scope extensions at its contracts across Western Australia, increasing the value of work awarded to WestStar during that month to approximately $10 million.
In September, SIMPEC was awarded a separate $5 million short-term contract by Energy Power Systems Australia for the construction of a 25-megawatt diesel power generation facility at the Eliwana mine and rail project owned by Fortescue Metals Group (ASX: FMG).
The scope covers full services for the facility, including design and partial supply, construction, fabrication, transportation, erection, installation, construction verification, pre-commissioning, testing, commissioning and handover of all civil, structural, mechanical, piping, electrical, control systems and instrumentation works.
The facility will be delivered in three stages and the contract will end in July 2020.
Also in September, WestStar subsidiary PreCast Australia was awarded a $3 million contract by Georgiou Group to supply wall panels for the construction of a $55 million Costco Warehouse near Perth airport.
The development will have 14,000 square metres of building area – or more than three times the size of a normal supermarket.
PreCast Australia has also been engaged by BHP Group (ASX: BHP) to supply and deliver 200 precast concrete elements to the South Flank iron ore project in WA’s Pilbara region.
The project is expected to become the largest iron ore processing facility ever built in the state, and will include an 80-million tonnes per year crushing and screening plant, an overland conveyor system and rail-loading facilities.
At mid-morning, shares in WestStar were trading 7.69% higher at $0.028.