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16 May 2024

Daily Newsletter

CIMIC Group companies secure $500m BHP contract

The joint venture (JV) will design and build a primary crusher, a 12km overland conveyor, a radial stacker and associated stockpiling systems.

Archana Rani

A JV of CIMIC Group companies Sedgman and CPB Contractors has been awarded a contract worth A$757m ($500.58m) by BHP for the WRCP, located on Nyiyaparli Country around 21km south-west of Newman.

The project encompasses an end-to-end solution for the design and construction of a new 30mtpa primary crusher, a radial stacker, a 12km overland conveyor and associated stockpiling systems.

Over the past 12 months, Sedgman and CPB Contractors have collaborated with BHP to advance engineering, design and long-lead procurement for the project.

The construction phase is due to commence at the end of May 2024.

Sedgman managing director Grant Fraser said: “We are pleased to continue our long-standing relationship with BHP and extensive work with CPB Contractors to deliver value for the Western Ridge Crusher Project.”

The Western Ridge Crusher, which is due to be commissioned in the first quarter of fiscal year 2027, is a sustaining tonnes proposal for BHP’s Newman iron ore operations.

It is expected to deliver an average of 25mtpa to replace production from depleting orebodies around Newman.

CPB Contractors managing director Jason Spears said: “CPB Contractors has a legacy delivering major projects for BHP in Western Australia and a current workforce based in the Pilbara region.

“We will continue to work closely with the local community to leverage employment, business and social opportunities with a focus on skills, training and diversity.”

In a separate announcement, Dyno Nobel, a subsidiary of Incitec Pivot, has secured a long-term contract extension with BHP Mitsubishi Alliance (BMA) in Queensland's Bowen Basin region.

The five-year agreement involves the supply of explosives products, technology solutions and services to BMA's Goonyella, Saraji, Peak Downs and Caval Ridge mines.

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