Boom Logistics, Australia’s leading provider of crane logistics and related industrial services, has confirmed that following a competitive tender process, it has secured a five year contract to supply crane services to the BHP Billiton Olympic Dam maintenance operation. This represents a new business opportunity for Boom and the contract is scheduled to commence on 1 June 2012. Olympic Dam is an underground mine 564 km north of Adelaide, and is a globally important producer of copper, uranium, gold and silver. In October 2011, BHP Billiton announced approval for $1.2 billion of pre-commitment capital for the first phase of the Olympic Dam Expansion project to develop the operation into a major new open pit mine. This funding will facilitate the procurement of long lead items such as trucks and accommodation, infrastructure development and early site works for the first phase of the project.
The Boom Mobile Cranes Services contract involves setting up a purpose built maintenance facility in Roxby Downs, establishing a contract management team and providing dedicated cranes and labour to deliver all crane related maintenance works at Olympic Dam. Revenue from this new contract will be approximately A$100 million over the next five years with capital investment in the order of A$20 million. Over the last four years, Boom has progressively been aligning its Crane Logistics business with the mining and resources sector. At the end of 2011, this sector accounted for 58% of its yearly revenue and this level will continue to increase as a result of this contract win and in-line with growth expectations in this sector.
Brenden Mitchell, CEO of Boom said: “This new contract is in line with our strategy of building long term sustainable revenue in the resources sector with quality customers committed to safety. It also confirms our value proposition and consolidates our position as the leading crane logistics provider across Australia. Our experience and knowledge of BHP Billiton’s operations in Western Australia, Queensland and NSW, and our commitment to our customers’ quality and safety frameworks, were some of the key factors in securing this new contract. This contract further broadens Boom’s national footprint by establishing a more substantial presence in South Australia. This contract will strengthen our position in FY13 and beyond.”
