M&R lands four contracts in Australasia worth R4bn

LISTED engineering and construction group Murray & Roberts (M&R) has been awarded four contracts in Australasia valued at R4 billion.

M&R said yesterday that the contracts included the development of a copper mine in Mongolia and projects to be undertaken by its oil and gas platform in the metals and minerals market in Australasia.

The group said the Mongolia mine development would be undertaken in a joint venture between its oil and gas and underground mining platforms.

M&R group investor and media executive Ed Jardim said the Mongolian project would account for more than half the value of the contracts.

Jardim confirmed that a recent award to Clough, M&R’s Australia based oil and gas engineering and construction wholly-owned subsidiary company was the second largest of the contract awards.

Clough in May this year announced that it had been awarded an early works engineering, procurement and construction (EPC) contract to progress the non-process infrastructure for the BHP South Flank Iron Ore Project.

The early works form part of BHP’s initial funding for the South Flank sustaining project, which was announced by BHP in June last year.

However, full development of the South Flank Iron Ore Project remains subject to approval by BHP’s board of directors.

Peter Bennett, the chief executive and managing director of Clough, said at the time that they were very pleased to have been selected as BHP’s delivery partner.

“Clough has been delivering EPC solutions in other sectors over the last few years and it is a natural progression to utilise this capability for our mining clients too.

“These early works provide a strong platform to continue building the relationship between our companies. The engineering and construction of this facility will be self-performed by Clough’s WA (Western Australia) based team, with the scope including civil, structural, mechanical, piping, electrical and instrumentation,” he said.

M&R said yesterday that all four projects would be delivered over a period of up to two years.

The group said emphasis had been placed on complementary growth markets, such as Australasia’s metals and minerals and infrastructure sectors, previously well serviced by its oil and gas platform, because of a constrained oil and gas market over the past four years.

“These project awards are a demonstration of the platform’s ability to secure project opportunities in complementary markets,” it said.

Shares in M&R dropped 1.63 percent on the JSE yesterday to close at R17.50.