Monadelphous Group Ltd (ASX: MND) shares are trading higher after the company announced it had won a major contract with BHP Group Ltd (ASX: BHP), continuing the company's bullish run in recent months.
The company said it had been awarded the construction contract for a car dumper project at Finucane Island in Port Hedland, Western Australia, which was part of BHP's iron ore operations.
Monadelphous went on to say:
The contract, valued at approximately $175 million, includes civil, structural, mechanical, piping and electrical works associated with the replacement of key equipment during a planned major shutdown.
Monadelphous Managing Director Zoran Bebic said the contract win reflected the company's deep experience in delivering such projects, built up over many years.
He added:
We are pleased to build on our long-standing relationship with BHP and look forward to the safe and reliable execution of the car dumper works, following the successful delivery of the Car Dumper 3 Project at Nelson Point last year.
Image source: Getty Images
ASX mining stock backing up another recent win
The new contract is the second major contract win in as many months for Monadelphous, which in December announced it had been awarded a $250 million contract with Rio Tinto Ltd (ASX: RIO) for the Brockman Syncline 1 iron ore development.
The company said at the time:
The multidisciplinary contract, valued at approximately $250 million, includes fabrication and supply, detailed earthworks and concrete, structural, mechanical, piping and electrical and instrumentation works associated with the construction of a new primary crusher and overland conveyor, as well as modifications to existing plant. Work under the contract will commence immediately and is expected to be completed in 2027.
ASX mining stock outlook strong
At the company's AGM in late November, chair Rob Velletri said the company had in 2025, secured about $2.3 billion in new contracts and contract extensions, which was a record, plus had added another $570 million since the end of the financial year.
Mr Bebic said at the time the company was forecasting revenue for the half year ending December 30 of about $1.5 billion, with full-year revenue expected to be about 20% to 25% higher than the previous year.
Shares in Monadelphous Group have more than doubled over the past year, and were changing hands for $27.09 on Tuesday morning, up 0.3%.
The stock has increased from lows of $13.36 over the past year. The company was valued at $2.7 billion at the close of trade on Monday.
