Forge Group Limited
(ASX:FGE) has secured a $1.47 billion engineering, procurement and construction contract at the Roy Hill iron ore mine project in Western Australia, alongside JV partner, Spanish contractor Duro Felguera.
Forge anticipated an earn of approximately $830 million from the contract, which was awarded by Samsung C&T, the chief contractor for the $10 billion project.
The construction group says partner Duro Felguera brings on board vast experience in executing turnkey projects for the mining, energy, industrial and oil and gas sectors.
Works include construction of a iron ore processing plant with an annual capacity of 55 mega tonnes, as well as structural earthworks, foundations, steelwork, mechanical and electrical requirements.
Forge says the contract and its considerable work schedule will remain on hold until Roy Hill confirms satisfactory progress with its debt financing, targeting a start date in December ahead of hopeful completion by September 2015.
Forge generated a net profit of $62.9 million in fiscal 2013.
