Shares of Glasgow-based global mining and engineering giant Weir Group edged 2% higher on Tuesday after it won a £95 million order to provide aftermarket components and service to the Iron Bridge magnetite project in Western Australia.
“The aftermarket contract follows Weir’s success in winning a record £100m order for original equipment for the Iron Bridge project in 2019, including its innovative Enduron High Pressure Grinding Rolls (HPGRs) that enable dry processing of ore and use at least 30% less energy than traditional alternatives,” said the Glasgow company.
“The Iron Bridge magnetite project is a US$2.6bn joint venture between Fortescue Metals Group’s subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd and is located in the Pilbara region, around 145 kilometres south of Port Hedland.
“Both the aftermarket order and revenues will be recognised over the seven year period of the agreement which starts in 2022, in line with the project’s initial production.”
Weir Group has 13,000 employees in over 60 countries and a stock market value of around £4.4 billion.
Weir Minerals president Ricardo Garib said: “This is another landmark order for Weir.
“Having helped design an energy and water efficient magnetite processing plant, we are delighted to provide operational support for Iron Bridge from 2022.
“It is an excellent example of the value that Weir’s innovative engineering and close customer support can create for all our stakeholders and reflects the key role we have to play in making mining operations more sustainable and efficient.”
This latest contract award means Weir now has more than £200 million of orders from the Iron Bridge Project.
To support the project and future growth, Weir will build a new service centre in Port Hedland, Western Australia, providing employment and training opportunities in the area, with a particular emphasis on supporting greater Aboriginal representation in the broader mining workforce.