AusGroup selected as preferred supplier for Karara

11 August 2011

AusGroup Limited subsidiary AGC Industries Pty Ltd (‘AGC’) a leading Australian based fabrication, construction and integrated services company, announces today that it has been selected by Karara Mining Limited as their preferred supplier for the structural mechanical piping (SMP) works on the Karara Iron Ore Project located in the mid-west region of Western Australia.

Following the award of the Early Works Contract in March 2011, AGC will continue to support Karara Mining as it enters peak construction in the lead up to the first shipment of magnetite concentrate scheduled for June 2012.

The adoption of an integrated team approach will ensure both Karara Mining and AGC work together to deliver the best possible result.

“We have a strong working relationship with AGC and are confident that this partnership will enable us to draw on the best from both teams allowing us to complete construction of the Karara Concentrator on time and within budget.” Said Mr Tim Netscher, Gindalbie’s Managing Director.

Stuart Kenny, CEO and Managing Director for AGC added: “This announcement demonstrates the successful relationship between AGC and Karara Mining. I am delighted that our track record of delivering safely and consistently in the development of the world-class Karara magnetite deposit has been recognised.”

To date, AGC have successfully delivered 80% of the Early Works contract, proving our exceptional commitment to Karara and the ongoing delivery of the project. AGC currently have a workforce of 60 onsite at Karara with the potential to increase to approximately 400 in peak SMP activities.      

Continue reading the joint announcement issued by Gindalbie Metals Limited (ASX: GBG) in the attached supplement titled ‘Karara joins forces with AGC for major construction contract’. 

Ends