Civmec makes waves with Covalent contract

16 December, 2021

Work will be conducted at Covalent Lithium’s Kwinana refinery in Western Australia, thanks to a contracted pipeline with Civmec. The pipeline is expected to be 1.15 billion.

The construction and engineering services provider has currently signed with the likes of BHP, Roy Hill and Rio Tinto, after deals in October brought its order book past $1 billion.

The refinery contract now requires structural and piping fabrication, SMP erection, refractory lining, insulation, and electrical and instrumentation installation.

Furthermore, Infrastructure contracts between Cimec and the NSW government have been signed.

Civmec chief executive officer Patrick Tallon said “Demand for heavy engineering and construction services in the private and public sectors in Australia remains strong and these new contracts underscore, yet again, our strength as a top-tier contractor. Our efforts to generate more recurring income are also paying off as we are getting more work involving maintenance and capital works from both existing and new clients.”

Covalent Lithium is a 50/50 joint venture (JV) between Wesfarmers and Chilean chemical company Sociedad Química y Minera de Chile.

The go ahead on the Kwinana refinery was received in September, thanks to the 1.8 billion pooled together by the Covalent JV towards Mount Holland’s development.

The refinery will receive about 45,000 tonnes of lithium hydroxide per year and will be constructed by Civmec. The Lithium hydroxide will come from Covalent’s Mount Holland lithium mine.

The lithium will be used for products like lithium batteries to store renewable energy after it has been converted into high-purity lithium hydroxide monohydrate.

Construction of the refinery is expected to be completed in 2024 if it commences as estimated in 2022.

This article is an extract from Australian Mining.