Monadelphous scoops up $200 million mining services contract from Albemarle, WA

Perth-based engineering firm Monadelphous (ASX:MND) has secured a $200 million contract with US-based chemicals manufacturer Albemarle (NYSE:ALB) to expand its Kemerton lithium hydroxide plant in Western Australia.

Under the contract, Monadelphous, which has a $1.27 billion market capitalisation, will undertake front-end pyromet structural, mechanical, piping, electrical, and instrumentation works associated with 2 new lithium processing trains.

Monadelphous says the award follows the delivery of construction packages on the first 2 trains and recently awarded long-term maintenance and sustaining capital projects contracts at Albemarle’s Kemerton operations.

Work under the new contract with Albemarle will begin on-site later this year and is expected to be completed in the second half of 2025.

Commenting on the contract, Monadelphous Managing Director Zoran Bebic says: “This award, in addition to the award announced last week with Fortescue Metals Group (ASX:FMG) for work at the Christmas Creek mine site, represents the first in a new wave of major construction projects to come to market.

We are extremely pleased to have secured these key construction opportunities”

We are extremely pleased to have secured these key construction opportunities and look forward to continuing to deliver high-quality solutions for customers, as well as supporting local communities through the provision of employment and supply opportunities.”

On 20 July 2023, Monadelphous was awarded a contract with Fortescue Metals Group (ASX:FMG) to supply and construct an overload conveyor and transfer station at the Christmas Creek mine site in the Pilbara region of Western Australia.

The company also secured a 2-year extension to its existing maintenance services contract at BHP’s (ASX:BHP) Olympic Dam operations in South Australia.

Further, Monadelphous was awarded a 2-year extension to its existing contract with Rio Tinto (ASX:RIO) to continue providing mechanical, electrical, and access maintenance services for fixed plant shutdowns at its Gove operations in the Northern Territory. These 3 contracts combined are valued at about $150 million.

Albemarle is a US-based chemical manufacturer that specialises in bromine and lithium solutions for use in lithium-ion batteries to support the global energy transition. In Western Australia, Albemarle operates the Greenbushes Lithium Mine and is developing the Kemerton lithium hydroxide processing plant.

Monadelphous is a Perth-based engineering firm that provides construction, maintenance, and industrial services to the resources, energy, and infrastructure sectors.

The company’s Engineering Construction division provides large-scale multidisciplinary project management and construction services, while the Maintenance and Industrial Services division specialises in planning, managing, and executing mechanical and electrical maintenance services, shutdowns, fixed plant maintenance services, and sustaining capital works.

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Images: Monadelphous Group Ltd
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.