Velletri stated in the company’s annual report 2020 that demand from China was actively ramping back up, making a case for a positive outlook for iron ore on the back of a strong prices.

Monadelphous is contracted to provide its engineering construction and industrial services across several iron ore projects in Australia, including at BHP’s South Flank project and Rio Tinto’s West Angelas Deposits C and D operation in Western Australia.

Its joint venture Mondium also secured its largest, $400 million engineering, procurement and construction (EPC) contract with Rio Tinto for the Western Turner Syncline phase two mine in Western Australia during the 2020 financial year.

“While the economic outlook in the wake of COVID-19 remains uncertain, the resources sector is expected to provide a steady inflow of opportunities over (the) coming years,” Velletri said.

“… In the longer term, demand for maintenance services is expected to grow on the back of aging assets and customers deferring non-essential work in prior periods.

“… The short to medium-term financial performance of the business will be dependent on the extent and duration of the impact to the company’s operational activity and productivity levels resulting from the spread of COVID-19.”

Monadelphous has secured $1.2 billion of new contracts and contract extensions since the start of the 2020 financial year.

It is also working with Rio Tinto to resolve a legal action made against the former for a fire incident at the miner’s iron ore processing facility at Cape Lambert last year.