The Monadelphous Group Ltd (ASX: MND) share price may draw attention today after announcing its subsidiary Kerman Contracting has secured a major $165 million contract with Rio Tinto Ltd (ASX: RIO) on the Brockman Syncline 1 project in Western Australia, with work to commence in 2026 and conclude in 2028.
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What did Monadelphous report?
- Kerman Contracting awarded a $165 million design and construction contract by Rio Tinto at Brockman Syncline 1 (BS1) in the Pilbara
- Scope covers heavy mine equipment workshop, washdown facilities, tyre change, fuel storage and refuelling infrastructure
- Project commencement set for 2026, with expected completion in 2028
- Contract further strengthens Kerman's and Monadelphous' forward order book
- Builds on Monadelphous' previously secured multidisciplinary construction work at BS1
What else do investors need to know?
Monadelphous continues to deepen its partnership with Rio Tinto, a key client for the company. The new contract broadens both Kerman's and Monadelphous' track record in non-process infrastructure within the Pilbara mining region.
Kerman Contracting is already actively involved in Rio Tinto's Hope Downs 2 site, underscoring the group's trusted relationship and reputation for reliable delivery. This latest win supports the company's strategy to target large-scale, long-term contracts in the resources sector.
What did Monadelphous management say?
Monadelphous Managing Director Zoran Bebic commented:
Kerman's award of this work builds on the multidisciplinary construction contract that Monadelphous secured at BS1 late last year. It is also very pleasing to see Kerman secure another contract with Rio Tinto, in addition to the work currently being performed at Hope Downs 2.
What's next for Monadelphous?
With this significant new contract on the books, Monadelphous expects to further strengthen its forward earnings visibility and cement its position as a major contractor in the resources industry. The company is likely to leverage this success in future tenders and continue focusing on growing its non-process infrastructure capability.
Investors can look forward to updates as the project moves through design and construction over the next few years, starting 2026.
Monadelphous share price snapshot
The Monadelphous share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months. During this time, the company's shares have risen a sizeable 46%.
