REG - Weir Group PLC - Weir awarded £53m redefined flowsheet contract

WeirAnnouncement

20/08/2024 07:00

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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 (http://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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