AUSENCO'S BILLION DOLLAR BRAZILIAN BABY

AUSENCO Limited (ASX: AAX) is at the centre of a billion dollar Brazilian contract through its local subsidiary.

Ausenco do Brasil Engenharia Ltda., the Brazilian subsidiary of AAX, has been awarded engineering, procurement and construction management delivery for Ferrous Resources’ US$1.28 billion expansion of the Brazilian Viga 15 iron ore project.The contract is through a consortium led by Brazilian company ARCADIS Logos.  

AAX CEO Zimi Meka (pictured) says the award fortifies the company’s ongoing relationship with privately operated Brazilian company Ferrous Resources.

AAX delivered engineering services on the initial phases of the project in 2011.

“We are delighted to be engaged for the Viga 15 project’s expansion phase and look forward to working with ARCADIS Logos jointly to deliver a successful outcome,” says Meka.

The consortium between ARCADIS Logos and AAX will attend to the design and construction management of the Viga Beneficiation Plant, including access infrastructure, and water and power distribution.

The basic engineering phase of the contract will commence immediately with December 2017 set as the target completion date.

AAX reported a slump in its half year net profit after tax late last month, down $1.5 million to $2 million, which spurred a 13.56 per cent decline in its share price.

The announcement of the Viga award was received with a 4.08 per cent increase in the company’s share price to 51 cents per share.