The Monadelphous Group Limited (ASX: MND) share price could be on the rise on Friday following the announcement of a major new contract win for the engineering company.
What was announced?
This morning Monadelphous revealed that it has been awarded a major construction contract with Rio Tinto Limited (ASX: RIO) associated with the West Angelas Deposits C and D Project, located in the Pilbara region of Western Australia.
According to the release, the contract is estimated to be worth over $100 million to the company. It includes the supply and installation of structural, mechanical, piping and electrical and instrumentation works associated with the construction of new iron ore facilities. It also includes work relating to modifications of the existing plant.
The work will commence immediately and is expected to be completed by April 2021.
Monadelphous' managing director, Rob Velletri, was pleased with the contract win and believes it is a testament to the quality of the company and its proven track record in delivering large-scale construction projects.
Earlier this year the company was awarded a similar contract by fellow mining giant BHP Group Ltd (ASX: BHP) at its South Flank Project in the Pilbara region of Western Australia worth $104 million.
This was the second contract Monadelphous had been awarded at the site and may have been what convinced Rio Tinto that it was the right company for the job.
It is thanks to contracts like these that the Monadelphous share price has been a strong performer in 2019.
Since the start of the year the company's shares have put on a gain of over 36%, making it one of the best performers in the industry along with NRW Holdings Limited (ASX: NWH) and Worleyparsons Limited (ASX: WOR). These two shares are up approximately 47% and 40%, respectively, since the turn of the year.
