The NRW Holdings Limited (ASX: NWH) share price surged 5.52% today after the company announced it had been awarded a new contract.
NRW Holdings provides diversified services to the resources, civil infrastructure and urban development sectors. The company has structured its business reporting into four segments: Civil, Mining, Drill & Blast, and Mining Technologies.
In an announcement to the market this morning, NRW stated it has received a notice of award for the Bulk Earthworks contract for the Iron Bridge Magnetite Project. The project is a joint venture between Fortescue Metals Group Limited (ASX: FMG), Iron Bridge and Formosa Steel.
On Tuesday last week, NRW reported a tragic accident that had resulted in an employee's death. Since then, the NRW share price has lost some ground, although it's recovered some of those losses today. Over the past 12 months, the NRW share price has risen strongly by 54%.
Details of Bulk Earthworks contract
NRW Holdings noted in its market release that the award still remains subject to finalisation of a number of outstanding contractual items. In the meantime, NRW has been directed to commence mobilisation.
The Iron Bridge Magnetite Project is the development of a new magnetite mine (including processing and transport facilities) and associated infrastructure. The project will support production of 22 million wet metric tonnes per annum (wmtpa) of high grade, magnetite concentrate product.
The Iron Bridge site comprises the North Star, Eastern Limb, Glacier Valley and West Star magnetite iron ore deposits. The site is located 145km south of Port Hedland.
Pleasingly, the contract scope for NRW includes the bulk earthworks and drainage for roads, processing plant and infrastructure for the new mine site development.
The value of the contract is circa $70 million and is expected to have a duration of approximately 45 weeks. At its peak, there will be approximately 200 site-based personnel required for the project.
