SRG secures long-term BGC contract

Diversified contractor SRG has secured a five-year, $100 million agreement with Perth-based mining and construction firm BGC Contracting.

The new contract will extend the terms of SRG’s current drill-and-blast operations at the South Middleback Ranges and Iron Knob mine sites in Whyalla, South Australia, where BGC is the head mining contractor.

The new agreement will utilise assets from SRG’s existing drill rig fleet, requiring minimal additional capital outlay in the short term, and increasing the company’s work in hand to $340 million.

“This is a significant achievement for SRG and our mining team and one which further reinforces our strong working relationship with BGC Contracting," SRG managing director David Macgeorge said.

"I am pleased that this long-term contract with BGC now brings our work in hand to a record $340 million and further demonstrates SRG’s strong progress through the development phase of our strategy."

SRG’s share price was up 0.5 cents to $1.40 today.