As Australia’s most significant mining project advances towards production, the Iron Bridge Project in Western Australia is continuing to support domestic business with engineering and construction company Decmil Group (ASX: DCG) the latest to secure a $41m contract at the site.
Winning a competitive tender, Decmil will commence design and construction of a bulk fuel storage and transfer facility which will service heavy vehicles at the site which will also include workshops, warehouses and offices.
“Crucially, this award at such a major project enhances our credentials to potentially secure more work in a resurgent iron ore and magnetite sector,” said Decmil CEO, Dickie Dique.
Construction of the fuel facilities is expected to be completed by May 2021 where the USD $2.6 billion site has been steadily building its facilities over the past 12 months with plans to commence production by mid-2022. The project is a joint venture between Fortescue Metals Group (ASX: FMG) and Formosa Steel IB.
The Iron Bridge contract win comes two months after Decmil was named by the West Australian Government as preferred proponent to build a $175 million ring road around Albany, Western Australia.
The two contracts are the beginning of a transition year for Decmil which endured a rough FY20 that resulted in a $140 million statutory loss due to write-downs on disputed contracts and assets. In response to the results, Dique was appointed as CEO to lead Decmil’s turnaround strategy, replacing the outgoing Scott Criddle who had commenced with the Company in 1993 and held the top post since 2010.
Dique had previously served as Chief Operating Officer at Decmil between 2004 to 2011 where he was personally involved with delivering projects valued at $1.8 billion with strong, double digit operating margins.
Under their proposed restructure, Decmil is targeting a $7-8 billion project pipeline that will drive growth beyond FY21.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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