Decmil awarded $84m earthworks contract
Decmil (ASX:DCG) has received an $84m earthworks contract at Perdaman Industries’ Ceres Urea plant project in WA.
Under the contract, Decmil will complete bulk earthworks including drilling and blasting, construction of a causeway, supply and installation of culverts, establishing portable water lines and general site clearing activities.
The contract was received from the Saipem Clough joint venture (SCJV) between engineering consultant Saipem Australia and construction engineering company Clough Projects Australia.
Work has begun and is expected to be completed by July 2024.
Decmil chief executive Rod Heale is pleased to have received the contract.
“We are delighted to have been awarded this package of works by SCJV, which falls right in our project value sweet spot of between $50m and $150m, enabling us to maximise supply chain benefits and achieve economies of scale,” he said.
“Pleasingly, our orderbook is growing strongly whilst adhering to our highly selective tender strategy centred on high-quality larger-sized contracts.”
The $6b Ceres Urea plant project was officially launched in May 2023 and has received Project of State Significant status by the WA Government.
The plant has a capacity of 2.14mtpa of urea, an end product of protein metabolism used in fertilisers, a flame-proofing agent and the manufacture of plastics and glues.
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