Weir Group PLC Weir awarded £53m redefined flowsheet contract

RNS Number : 9999A

Weir Group PLC

20 August 2024

 

20 August 2024

Press Release

Weir awarded £53m redefined flowsheet contract for Reko Diq greenfield copper-gold project in Pakistan's Balochistan Province

The first call-off order of £26m, which includes both ENDURON^® large format High Pressure Grinding Rolls (HPGR) and wet screens, will be recognised in Q3 with the remaining orders booked later in 2024 and early 2025.

The Weir Group PLC (Weir), a global mining technology leader, has been awarded a £53m contract to provide industry-leading energy efficient, sustainable solutions to the Reko Diq copper-gold project, a 50% owned greenfield development by Barrick Gold Corporation (Barrick). The tier one copper project is located in the Chagai district of Balochistan and is targeting first production in 2028 with an estimated mine life of 40+ years.

During the first phase of the project, Weir will provide fine grinding, separation and tailings solutions. Featured equipment includes Weir's market leading ENDURON^® HPGRs, ENDURON^® Elite wet and dry vibrating screens, WARMAN^® slurry pumps, and CAVEX^® hydrocyclones. Among the equipment to be provided are Weir's large format HPGRs - the highest capacity design in the market.

The initial £53m contract award will be recognised in the order book in accordance with a phased call-off aligned with manufacturing lead times, with £26m recognised immediately and the remaining orders to be booked in Q4 2024 and Q1 2025.  After commissioning of the equipment, aftermarket support will be provided via an on-site purpose-built service centre staffed with Weir technical personnel.

The receipt of orders associated with the contract award during 2024 does not result in a change to Weir's full year 2024 financial guidance as of 30 July 2024.

Commenting on the contract award, Jon Stanton, Chief Executive Officer of Weir said:

"We are delighted to have secured this significant contract which represents further industry acceptance of Weir's differentiated sustainable and cost-effective redefined flowsheet solution, with our market leading HPGR technology particularly suited for the water-scarce climate and geology of the Reko Diq copper-gold project. Our engineers have designed an innovative solution that comprehensively addresses the particular challenges of this project and is a great example of working in close partnership with an ambitious customer who shares in our purpose to sustainably and efficiently deliver the natural resources essential to create a better future for our world."

"Barrick is pleased to be partnering with Weir in delivering sustainable mining and processing in the new mining frontier of Balochistan. The Reko Diq project will grow Barrick's strategically significant copper and gold portfolios, benefiting all its Pakistan and Balochistan stakeholders," said Mark Bristow, Barrick President and CEO.

About The Weir Group PLC

Founded in 1871, The Weir Group PLC is one of the world's leading engineering businesses with a purpose to make its mining and infrastructure customers' operations more sustainable and efficient. Weir's highly engineered technology enables critical resources to be produced using less energy, water and waste while reducing customers' total cost of ownership. Weir is ideally positioned to benefit from structural trends that support long-term demand for its technology including the need for more essential metals to support economic development and carbon transition. The Group has c.12,000 employees operating in over 50 countries with a presence in every major mining region of the world. Find out more at www.global.weir.

Weir's ordinary shares trade on the London Stock Exchange (ticker: WEIR LN) and its American Depositary Receipts trade over-the-counter in the USA (ticker: WEGRY).

 

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