Rio Tinto has awarded additional contracts to Primero for the Koodaideri and Mesa K projects in the Pilbara, Western Australia at a combined value of $20 million.
This adds to the $115 million contract awarded last year for Koodaideri’s engineering, procurement and construction (EPC), as well as design, fabrication and supply of the mine infrastructure area.
The latest contract win sees additions to the Koodaideri contract, which reflect additional options that have been included for implementation.
Primero will also perform additional civil works at Rio Tinto’s Mesa J processing plants two (PP2) wet processing facility, which is being developed as part of the Robe Valley sustaining projects.
Both projects have progressed concurrently, with the Mesa K contract expected to be completed this year.
Primero plans to finish additional works at Koodaideri in line with the original time frame of mid-2021.
Despite the current climate, the engineering group has continued to operate at a run-rate of $195 million, which is consistent with its 2020 financial year order book guidance.
“Current business activities with respect to the company’s recent major project contract awards from Rio Tinto and Fortescue Metals Group are still predominantly focussed on off-site design engineering and procurement work,” Primero stated.
“Major planned site activities for these contracts are only scheduled to ramp up during the second half of calendar 2020.
“Given the accelerating spread of COVID-19 (coronavirus disease of 2019) and the significant preventative measures being undertaken globally, there is a high level of uncertainty with respect to any potential future impact on Primero’s operations and financial position.”
None of Primero’s employees has tested positive for coronavirus.