WestStar Industrial locks in $2.7m Talison lithium mine contract

WestStar Industrial ASX WSI Talison Lithium mine Greenbushes contract
The Talison lithium mine in Greenbushes, Western Australia.

ASX-listed industrial play WestStar Industrial (ASX: WSI) has won a A$2.7 million contract at the world’s largest lithium mine, the Talison Lithium mine in Greenbushes, Western Australia.

The company’s wholly-owned engineering contractor business SIMPEC has been awarded a contract by MSP Engineering for the design, supply and construction of process water tanks for the A$320 million expansion at the project known as the Chemical Grade Plant 2 Project.

The tanks – to be delivered over a 6-month period – will form part of a complex, state-of-the-art mineral and chemical processing facility.

MSP Engineering is the head contractor for the design and construction of Chemical Grade Plant 2 project which is slated to more than double capacity at the Greenbushes mine.

Currently, the mine produces 80,000 tonnes per annum of lithium carbonate equivalent, and the expansion, which is due to start commissioning in the second quarter of next year, will see capacity reach 180,000 tonnes per annum, or 1.3 million tonnes of concentrate, by 2021.

SIMPEC Managing Director Mark Dimasi said the company was optimistic that the contract would translate into further awards and even greater market traction for the company.

The contract win continues SIMPEC’s strong run of repeat orders from major resource companies, with WestStar also awarded two contracts from BHP this calendar year to provide ore handling plant construction at the $4.5 billion South Flank iron ore project in Western Australia.

Over the past six months, SIMPEC has tendered for more than $150 million of work and has actively tendered several scopes of work with MSP Engineering.

WestStar’s also owns two other businesses including Precast Australia – a concrete fabrication business – and property developer Distinct Developments.

Earlier this year, Precast was awarded a contract with Built Environs to supply concrete for its Department of Defence contract at Garden Island near Perth.

Distinct Developments – formed in May – recently won a contract for the design and management of an inner city mixed-use commercial property development in West Perth, which has a total construction value of around $9 million.

WestStar shares were trading 6% higher around midday at $0.018.

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