NRW Holdings Limited (ASX: NWH) shares are ending the week on a positive note.
In morning trade, the ASX 200 stock is up almost 5% to $2.91.
Why is this ASX 200 stock rising?
Before getting onto why its shares are rising today, let's take a quick look at what this stock actually does.
NRW is a leading provider of diversified contract services to the resources and infrastructure sectors in Australia.
It highlights that it has extensive operations in all Australian states except Tasmania. Management notes that this geographical diversification is complemented by its ability to deliver a wide range of services.
These cover civil construction, including bulk earthworks, road and rail construction, and concrete installation, as well as contract mining and drill and blast services through its NRW Civil & Mining, Golding Contractors, and Action Drill & Blast businesses.
It is another business, Primero Group, that is giving the ASX 200 stock a boost today.
What was announced?
This morning, NRW revealed that the wholly owned Primero subsidiary has been awarded a contract by Rio Tinto Ltd (ASX: RIO) for Hope Downs 2 Satellite & Bedded Hilltop Non-Process Infrastructure (NPI) Facilities. It notes that the contract forms part of the Hope Downs 1 Sustaining Project, which is found in the Pilbara region of Western Australia.
According to the release, the contract will see Primero become responsible for the design, supply, installation, construction, testing commissioning, and handover of NPI works required for the Rio Tinto Hope Downs 1 Operations.
The contract has an approximate value of $157 million and is scheduled for completion in December 2026.
The design and procurement work will commence immediately with site works expected to commence in fourth quarter of 2025. This is once all external approvals have been granted.
Commenting on the news, Primero's managing director, Michael Gollschewski, said:
This award represents the continuation of our long-term relationship with Rio Tinto through the delivery of world-class infrastructure projects.
This sentiment was echoed by the ASX 200 stock's CEO and managing director, Jules Pemberton. He said:
This contract reinforces Primero's reputation as a leading provider of engineering and construction services. We look forward to the successful completion of the project.
Today's gain will be a welcome relief to shareholders. Prior to today, its shares were down approximately 30% since the start of the year.
