AFR let me look at the full story after all... I am bringing it here for posterity and in case anyone else was not able to read it .
The mention of long contracts in the Pilbara instantly made me think of the ten year coal contracts that seem to be happening in Queensland
...although Jules immediately qualifies this by referencing the 12 to 18 month projects NRW already won in 2018. (which seem relatively short to me).
-South Flank is mentioned - a 15 month contract there for $157 million was announced last July and due to start September 1 2018
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC6g++yhiZruBxke92GA== (sondue to finish this December)
-And the FMG contract announced New Year’s Eve.
“Pilbara mine maker NRW Holdings sees no costs surge as big three build
By James Thomson
06 Jan 2019 — 11:00 PM
One of the iron ore sector's most experienced mining contractors is seeing no evidence of a mining-boom style outbreak in labour costs, as sector giants BHP, Rio Tinto and Fortescue Metals Group all push ahead with plans to construct new mines in Western Australia's Pilbara region.
Perth-based mining and civil contractor NRW Holdings last week won a $57 million contract for the earthworks, roadworks and drainage works for the rail component of Fortescue's $US1.9 billion Eliwana mine.
The company is also involved in BHP's $US2.9 billion South Flank iron mineand has previously worked with Rio Tinto, which is building the $US3.5 billion Koodaideri mine.
BHP, Rio Tinto and Fortescue Metals are all building new mines. Tony McDonough / Fairfax
The three projects are at the early stages of development, but NRW chief executive, Jules Pemberton, said the surge in activity was nothing like the construction boom of 2011 to 2013, when the iron ore miners raced to build new mines to expand their output and meet demand from China.
The three mines under development are all designed to replace existing operations.
"That's the difference," Mr Pemberton said. "It's not a growth projects phase, these are replacement tonnes, generally."
The previous mining construction boom also coincided with a ramp-up in oil and gas projects, exacerbating skills shortages and pushing up labour costs.
That isn't happening this time.
"There will be some overlap between the projects, and that might mean there is potential for some particular skill shortages, but we are not seeing that at this point of time," Mr Pemberton said.
The company's own workforce is a good example of how different things are. Its staff numbers peaked at 5000 during the mining boom, but are sitting at around 2300 today – and that includes the workforce of Queensland contractor Golding, which NRW acquired last year.
NRW has a rich history in the Pilbara, having completed earthworks for about 900 kilometres of rail lines in the Pilbara, or a third of the region's entire network.
"We are a capable contractor that has a track record of experience in the Pilbara," Mr Pemberton said. "Iron ore has been a pretty big part of our history."
That history is helping this time around too; NRW deliberately retained talented project managers from the region, despite the fact work has been limited over the past five years.
"The projects coming back in the Pilbara is great, because we've kept very good capabilities in the region."
This also meant NRW has been able to avoid the mistake of "winning the job and then securing the talent".
The fact these new mine contracts are longer in duration than the recent work NRW has done in the Pilbara is actually a help in securing workers, Mr Pemberton said.
"When you've actually got some of these larger jobs that go for a year or 18 months, we tend to attract a few people back to our business."
The Golding deal has helped NRW diversify its business, pushing into the Queensland coal sector, and into east coast infrastructure, which is enjoying boom-time conditions.
The company has guided for revenue of $1.1 billion in the 2019 financial year, which would represent growth of 60 per cent.
The company's shares have fallen 4.2 per cent over the last year, and closed at $1.53 on Friday.”
https://www.copyright link/business...osts-surge-as-big-three-build-20190104-h19qs4
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