Engineering group Murray & Roberts’ (M&R’s) mining platform has been awarded two contracts worth R1.2bn for work in the US and Canada.
The group reported earlier in 2021 that its order book stood at a record R60.5bn at the end of December, primarily consisting of an energy, resources and infrastructure platform, which trades under the name Clough, an Australia-based business.
M&R said on Tuesday, via the JSE’s stock exchange news service, (Sens) that its subsidiary, Cementation USA, had secured an underground characterisation development and infrastructure project in Utah for mining giant Rio Tinto’s US division, Kennecott Utah Copper.
The value of this contract was about $70m (R1bn).
The initial scope of the project included lateral development and associated infrastructure works.
The specialist engineering group, which started life in 1902 as a builder in the Cape Colony, has spent the past few years diversifying its businesses to decrease its exposure to cyclical natural resources contracts.
Its diversification has included its oil and gas business taking hydroelectric , or gas-to-power projects, and specialised infrastructure work.
M&R CEO Henry Laas said the award positioned Cementation USA well for “potential significant scope growth” on this project.
Meanwhile, M&R subsidiary Cementation Canada secured the completion of phase 1 of its Jansen Potash project in the province of Saskatchewan, for BHP Canada.
The scope of that project included post liner excavation, steel and equipping of a mine shaft. The value of the complete project award, which is subject to a sanction decision for the project, is about $170m (R2.4bn).
Cementation Canada has, in the interim, received a works order to proceed with the first work package to the value of $12m (R172m).
Cementation Canada would apply to deliver other phases of the project.
M&R said that, during the past year, mining companies in the Americas found that Covid-19 caused long-term chaos for their businesses.
It had created short-term order book pressure for engineering and contracting companies.
“These awards are evidence of new mining investments returning to the region. The forecast improvement in capital investment in the mining industry is encouraging.” it said.
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