Monadelphous Group Limited has secured a contract valued at approximately $165 million for its wholly owned subsidiary Kerman Contracting to design and construct non-process infrastructure facilities at Rio Tinto’s Brockman Syncline 1 project in Western Australia’s Pilbara region. The scope of work encompasses a heavy mine equipment workshop, equipment washdown facilities, tyre change stations, and fuel storage and refuelling infrastructure, with construction commencing this year and expected completion in 2028.
The contract represents a meaningful addition to Monadelphous’ order book and reflects continued confidence from Rio Tinto in Kerman’s capabilities and delivery track record. What makes this award particularly significant is that it builds on work Monadelphous already secured at the same BS1 project late last year, when the company won a multidisciplinary construction contract. The company is also actively performing work at Rio Tinto’s Hope Downs 2 operation, suggesting Kerman has successfully positioned itself as a trusted partner across multiple Rio Tinto assets in the Pilbara region.
For investors, the contract win offers several positive signals with material implications for the business outlook. A $165 million project providing work through 2028 contributes to forward order book visibility and revenue visibility across the next two to three years. Non-process infrastructure work has typically commanded solid margins in the sector, and the diversified nature of Kerman’s scope, spanning both construction and facility design work, should provide stability across different phases of project execution and varying economic conditions. The Rio Tinto relationship remains among the most valuable in the Australian services space, with its Pilbara operations representing some of the industry’s most complex and capital-intensive assets.
Kerman’s positioning as a specialist in non-process infrastructure is becoming increasingly valuable to major miners seeking to optimise operational efficiency. These facilities, while not directly involved in ore extraction, are essential to mining operations, supporting equipment maintenance and logistics across the entire mining complex. The Brockman Syncline 1 project itself represents a significant expansion opportunity for Rio Tinto, and securing a role in its development, even within non-process scope, demonstrates Kerman’s relevance to the company’s strategic expansion plans in the region.
The near-term focus for investors should be on project execution milestones and any indication of further contract awards at BS1 or other Rio Tinto assets. Monadelphous’ ability to deliver on this contract on time and within budget will strengthen its competitive position for future opportunities with Rio Tinto and other major miners. The company’s managing director, Zoran Bebic, highlighted that the award reflects Kerman’s expertise and track record while strengthening its forward order book. This announcement is classified as price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Monadelphous Group Limited (ASX: MND)
Monadelphous is an Australian engineering services company that provides construction, maintenance, and industrial services to the resources, energy, and infrastructure sectors. The company operates through two divisions: Engineering Construction, which delivers large-scale project management and construction services, and Maintenance and Industrial Services, which provides mechanical and electrical services for plant and equipment management. It operates primarily in Australia with additional operations in China, Mongolia, Papua New Guinea, and the Philippines.
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