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Cimic shares up after $US310m contract win

CIMIC's shares have jumped after the construction heavyweight secured mineral processing contracts in South Africa worth $US310 million ($418 million).

The group's mineral processing company, Sedgman, has been awarded three contracts by Resource Generation's subsidiary Ledjadja Coal for the design and construction of the Boikarabelo coal handling and preparation plant in South Africa, as well as its ongoing operations and maintenance.

CIMIC chief executive Michael Wright says the contract is an important addition to its mineral processing portfolio.

CIMIC said the design and construction contract, together with an ancillary works contract, will bring revenue to Sedgman of about US$210 million over 26 months.

The operations and maintenance contract will deliver revenue of US$100 million over four years once the facility is completed.

Work is expected to commence once the Boikarabelo project funding has been finalised, with debt providers currently in the final process of credit approvals.

CIMIC shares were up $1.21, or 2.5 per cent, to $49.54 at 1532 in a flat Australian share market.

Austrlaian Associated PressBack to Breaking News

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