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WestStar Industrial’s (ASX:WSI) SIMPEC wins $145m contract

Industrial
ASX:WSI      MCAP $14.39M
28 July 2021 11:20 (AEST)
WestStar Industrial (ASX:WSI) - SIMPEC Managing Director, Mark Dimasi

Source: Australia's Mining Monthly

WestStar Industrial (WSI) was up as much as 20 per cent this morning after its subsidiary, SIMPEC, was awarded a contract for the Iron Bridge Magnetite Project.

This project is a joint venture between Fortescue Metals Group (FMG) subsidiary FMB Magnetite and Formosa Steel.

Located roughly 145 kilometres south of Port Hedland in Western Australia, the Iron Bridge Magnetite Project is currently developing a new magnetite mine and related infrastructure.

Under the $145 million contract, SIMPEC will support the construction of the site’s wet processing plant.

The plant is a significant part of the mine and will be pivotal to the production of 22 wet million tonnes per annum of high-grade, magnetite concentrate product.

First production is estimated in December 2022 and is expected to ramp up in 12 to 18 months.

SIMPEC Managing Director Mark Dimasi is excited in what is the company’s largest contract win to date.

“This is an important milestone achievement for SIMPEC in the delivery of our company’s mission to deliver major projects in the industry,” Mr Dimasi said.

“The award of the Wet Plant Project represents our largest contract win to date with a first-tier client.

“We look further to further developing our relationship with the Iron Bridge joint venture and thank them for the opportunity to deliver such a high-profile project.”

WestStar was still up a healthy 13.3 per cent with shares trading at 3.4 cents at 11:17 am AEST.

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