Major Australian mining contractor NRW Holdings has won a A$600 million, three-year extension of its contract with OneSteel Manufacturing iron ore business SIMEC Mining in South Australia.
SIMEC owns and runs the Middleback Ranges, circa-10 million tonnes per annum hematite iron ore hub about 60km from Whyalla. Under the contract extension NRW will continue to deliver mine planning, load and haul, and maintenance services until at least the end of January, 2025, with SIMEC having the option to extend the contract to 2028.
NRW earned circa-$267 million on $2.3 billion revenue in FY21 and was guiding for $2.4-2.5 billion of revenue in FY22. About 30% of its business is currently tied to iron ore mining.
The ASX-listed company’s shares have fallen 8% this year and nearly 44% in the past 12 months. Its current market value is $753m.