OTOC (OTC) has received a Notice to Proceed for early works in relation to the construction of the Nauru processing centre to the value of $6.2 million. Canstruct Pty Ltd has advised OTOC that it intends to enter into a contract with OTOC for the construction of the Nauru Processing Centre to the value of approximately $22.7 million, subject to agreeing satisfactory commercial terms and approval by the Commonwealth. The $6.2 million of early works forms part of the proposed $22.7 million contract with preliminary preparatory work to commence immediately and OTOC personnel expected to be on site in December. The overall work includes the supply of labour and material for Stage 1 of the Nauru Processing Centre which will comprise a 900 person facility. The Notice to Proceed was issued to OTOC because of its proven construction ability in remote locations and further diversifies OTOC’s 2013 earnings profile with a mix of resources construction, government contracting, and surveying and urban planning revenue streams.
CEO of OTOC Mr Adam Lamond said “The Company is pleased with the opportunity to continue its diversification into new sectors and together with OTOC’s existing mining and resources order book, and further strengthens the Company’s strong competitive position going into 2013. OTOC views this opportunity as an important entry into a sector that will see significant growth in the next few years.” The Nauru early works, along with the recently awarded $32 million Brockman 4 Operations Village, further strengthens OTOC’S 2013 order book.
OTOC Limited is a leading provider of resources and infrastructure services through its wholly owned operations OTOC Australia and Whelans. Established in 2003, OTOC Australia specialises in the installation of mine site accommodation and non-process infrastructure for mining and oil and gas projects. OTOC Australia has a successful track record of delivering turnkey mining camp solutions for blue-chip clients including BHP Billiton, Rio Tinto and FMG. Whelans is a leading consultancy in the provision of surveying, mapping and town planning, with a focus on the resources sector. Whelans has 110 professional staff operating from offices in Perth, Karratha, Broome, Kununurra and Kalgoorlie. Canstruct is a civil engineering and building company which has been engaged by the Federal Government to project manage the construction of the Nauru Processing Centre. The Project, through the Contractors, will be seeking to provide opportunities for local training and employment for the delivery of the Nauru Processing Centre.