NWH 0.26% $3.92 nrw holdings limited

In December 2011 Macmahon Holdings was contracted to build the...

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    In December 2011 Macmahon Holdings was contracted to build the Solomon spur line – announced to be 81kms at a price of approximately $330m. However, later information referred to 53kms. In 2014 NWH was contracted to build 28.4kms for $73m. I am not 100% sure of the facts, but it appears that Macmahon did not complete that project, and FMG called on NWH to do so.

    That spur line was built through difficult terrain through the Chichester Range, and it required four major bridges over the Fortescue River. so it cost more per km than average. A comment at http://australianminingreview.com.au/the-road-ahead/ states, “Interestingly, the railway line to Eliwana would be 12 per cent longer than the Solomon railway line, but lower cost.” Consequently, I am still confident that my $250m–$300m guesstimate for Eliwana Rail is in the ball park. That NWH won the Eliwana Rail Stage 1 contract puts it in the prime position to get the rest of the Eliwana Rail Project, and NWH's history in the Solomon spur saga, would have put NWH in FMG's good books too.

    The foregoing link also has interesting comments on the Iron Bridge project, another project where NWH won a Stage 1 contract a few years ago. Also, in that link there are comments on ore processing and conveying infrastructures that makes the RCR capability a significant enabler to secure more FMG work. That relocatable conveyor at Cloudbreak that is mentioned, was supplied by RCR.

    There are a number of other Eliwana work packages that NWH could win. The alignment of the thrice-three heavenly bodies mentioned some weeks ago seems to be morphing into a 33 cube, so tie your hats on, we are heading for an exhilarating ride. As for the weather:

    Never mind the weather
    As long as we´re together
    We´re off to see the wild west show
 
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