AusGroup Awarded Karara Early Works Contract

31 March 2011

AusGroup Limited is pleased to announce the award of an AU$60 million Early Works contract by Karara Mining Limited (‘Karara’).

The contract has been awarded to AusGroup’s subsidiary, AGC Industries Pty Ltd and will consist of structural, mechanical and piping installation works at the company’s iron ore process plant located approximately 210 kilometres east of Geraldton, Western Australia.

Mobilisation to site will commence in April 2011.

The Early Works contract involves all mechanical disciplines, scaffolding, rigging and procurement of piping for the main contract which is currently being negotiated. The main contract is expected to be valued in excess of AU$200 million.

AusGroup’s Managing Director John Sheridan said, "We have been working with Karara for some time on this opportunity and we are delighted to be chosen  by Karara for the mechanical works services contract. We see this as a significant opportunity to develop a long term relationship with this important client."

With this contract award, the Group’s order book stands at AU$262 million.