SGW sons of gwalia limited

Downer EDI bags $850m mining dealBlair SpeedyMay 05, 2005...

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    Downer EDI bags $850m mining deal
    Blair Speedy
    May 05, 2005
    ENGINEERING services group Downer EDI has won $850 million worth of contracts in the booming mining sector, with another $220 million worth of engineering work expected to be awarded shortly.

    The new contracts included work on the $2 billion expansion of Alcan's alumina refinery at Gove in the Northern Territory.

    Downer's mining division, Roche, will build a new processing plant from scratch for the Foxleigh coal mine it operates in Queensland with QCC Resources. It will also upgrade a plant and build another new one for Xstrata's coal mining operations in NSW.

    The company also won plant refurbishment contracts with sand mining operations in Australia, Mozambique and Zambia, and another to upgrade the Wodgina tantalum plant in Western Australia for the administrators of failed miner Sons of Gwalia.

    Snowden Consulting Group, the Perth-based mine engineer acquired by Downer in December, has won contracts with Rio Tinto's iron ore expansion in the Pilbara, BHP Billiton's nickel laterite mine in Colombia and a data management contract with Anglo American.









    Managing director Stephen Gillies said all divisions are trading in line with current forecasts for the third quarter and the company remains confident of posting an increased full-year profit.

    "In February, we advised the market that earnings would be at least 12 per cent ahead of 2003-04 and current trading reinforces these expectations," he said.

    Following the sale of Downer's foundry business to Bradken in March, Mr Gillies said the company was making progress on further sales of "non-core" assets, with the process expected to be wrapped up next month.

 
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