GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) is pleased to announce that it has entered into an engineering, procurement and construction (EPC) contract (Contract) with Western Areas Limited (ASX:WSA) (Western Areas) associated with the Forrestania Mill Recovery Enhancement Project in Western Australia (Project). The Contract has been entered into on a guaranteed maximum price basis.
Detailed engineering and procurement will commence immediately, with revenue of approximately $7 million to be realised in the first half of FY2016. The decision to proceed with the six month construction phase of the Project is likely be made by Western Areas later this financial year, to facilitate commissioning and ramp-up of the Project in July 2016. The total value of the work under the Contract is approximately $22 million, inclusive of those works associated with construction of the Project.
GR Engineering’s Managing Director, Geoff Jones, commented that:
“It is pleasing to continue our long association with Western Areas and its Cosmic Boy processing facility in Forrestania. The Cosmic Boy processing plant was designed and constructed by GR Engineering in 2009 and was subsequently upgraded by the Company in 2010. GR Engineering’s ability to secure repeat business such as this supports its reputation of delivering successful project outcomes with dependability and reliability.”