Monadelphous Group Secures Approximately $200 Million BHP Contract for Nelson Point Port Debottlenecking Project
Key Takeaways
- •Monadelphous will be responsible for installing and commissioning all structural, mechanical, piping, electrical, and instrumentation works for BHP's new car dumper 6 and its associated materials handling facilities at Nelson Point in Port Hedland.
- •The PDP2 project represents a $1.4 billion investment by BHP designed to sustain a production target of 305 million tonnes per annum at the world's largest bulk export terminal.
- •Construction work under the contract is scheduled to begin immediately, with completion anticipated in 2028.
- •This BHP contract follows other recent Monadelphous awards, including a $165 million Rio Tinto contract for the Brockman Syncline 1 project and multiple contracts with Fortescue and Santos.
- •Prior to market open, MND shares held steady at $30.06, with the company carrying a market capitalisation of approximately $3.013 billion.
Monadelphous Group (ASX:MND) has been awarded a major construction contract valued at approximately $200 million by BHP, tied to the Port Debottlenecking Project 2 (PDP2) at the Nelson Point port facility in Port Hedland, the world's largest bulk export terminal located in Western Australia's iron ore-rich Pilbara region.
The contract covers the installation and commissioning of all structural, mechanical, piping, electrical, and instrumentation works required for the construction of the new car dumper 6 (CD6) and its associated materials handling facilities. As a critical piece of infrastructure for unloading iron ore from inbound trains, the addition of CD6 will facilitate increased throughput at the port. Work is set to commence immediately, with completion expected in 2028.
Monadelphous Managing Director Zoran Bebic said the contract award reflects the company's strong customer value proposition, built on long-term client relationships and a proven track record of delivery.
"We look forward to working closely with BHP to successfully deliver PDP2 and increase Port capacity," Bebic said.
The PDP2 is a $1.4 billion infrastructure investment by BHP at Nelson Point. It includes the construction of CD6, new conveyors, and supporting systems designed to sustain a production target of 305 million tonnes per annum. Construction of the sixth rail car dumper began approximately six months ago. BHP has described the initiative as one of its largest port projects to date, aimed at unlocking capacity, boosting productivity, and improving supply chain resilience.
The BHP contract adds to a series of recent wins for Monadelphous that span the major iron ore producers operating in the Pilbara. In late July, the company announced that its non-process infrastructure business, Kerman Contracting, had secured a $165 million contract with Rio Tinto for the Brockman Syncline 1 (BS1) project in the Pilbara. That contract covers the design and construction of non-process infrastructure facilities, including a heavy mine equipment workshop, as well as heavy and light mine equipment washdown, tyre change, fuel storage, and refuelling facilities.
Earlier in July, Monadelphous announced the award of $200 million in new construction and maintenance contracts across the resources and energy sectors. Among those awards, the company secured two contracts each with Fortescue and Santos.
Prior to market open, MND shares were steady at $30.06, with a market capitalisation of $3.013 billion.
