Monadelphous awarded $100m Kathleen Valley construction contract

Engineering company Monadelphous (ASX:MND) has been awarded a $100m multidisciplinary construction contract with Liontown Resources (ASX:LTR).

The contract is for the construction of the wet plant at the Kathleen Valley lithium project in the Northern Goldfields of WA.

The contract scope includes the installation of 1200t of structural steel, 20,000m of piping, 600 mechanical equipment items, 200 platework items, the SAG mill, magnetics circuit, flotation circuit, tails treatment, tantalum recovery circuit and concentrate dewatering.

Combining the structural, mechanical, piping (SMP) and electrical and instrumentation (E&I) work enables vertical integration of mechanical and electrical construction of the wet plant and underpins confidence to deliver first production mid next year.

Liontown managing director and chief executive Tony Ottaviano commented on the contract.

“Valued at approximately $100m this [the contract] marks the final major construction contract to be awarded for Kathleen Valley,” he said.

“The vertically integrated approach of combining the SMP and E&I packages enables Monadelphous to efficiently deliver both programs of work to a very high standard and played a large part in its successful tender.”

Work is expected to take nine months and be completed in mid-2024.

Monadelphous managing director Zoran Bebic said the award extends the company’s portfolio of construction work.

“We are extremely pleased to have been awarded this significant contract in the growing energy transition metals sector, and look forward to continuing to develop our relationship with Liontown Resources,” he said.