Earlier this week Australian metals miner South32 awarded a pair of services contracts for operations at Worsley Alumina to SRG Global worth approximately A$125 million.
According to a filing with the Australian stock exchange, South32 has contracted for specialist Refractory Services from SRG Global, which includes gunning, casting, and installation of refractory products at South32’s Worsley plant. This contract will commence later this month and run for a term of 8 years for approximately A$100 million.
The second contract agreed to between the firms came in the form of an extension to a contract already in place for SRG to provide engineered Access Service to the Worsley plant. The parties extended the agreement for another two years through the middle of 2027 for the price of around A$25 million.
SRG’s Managing Director David Macgeorge emphasized the importance of the two new agreements to his firm in a related press release.
“These contracts are a terrific achievement for SRG Global and we are excited to be expanding our partnership with South32 to continue to deliver long-term value for their Worsley operations.”
“This continues our focus on cross-selling our diverse capability to add value to key clients and our strategy of transitioning the earnings profile of the business to annuity style Asset Services contracts,” he continued.
Based in Perth, Western Australia, South32 began in 2015 as a spin-off of BHP Billiton. The firm operates mines in Australia and South Africa, and markets aluminium, manganese, silver, zinc, lead, nickel, coking coal, and thermal coal.