Weir Group Regulatory News (WEIR)

Weir wins £95m aftermarket order to support Iron Bridge magnetite Project in Australia

The Weir Group, a leading provider of premium mining technololgy, has won a £95m order to provide aftermarket components and service to the Iron Bridge magnetite Project in Western Australia.

The aftermarket contract follows Weir's success in winning a record £100m order for original equipment for the Iron Bridge project in 2019, including its innovative Enduron® High Pressure Grinding Rolls (HPGRs) that enable dry processing of ore and use at least 30% less energy than traditional alternatives.

The Iron Bridge magnetite Project is a US$2.6bn joint venture between Fortescue Metals Group's subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd and is located in the Pilbara region, around 145 kilometres south of Port Hedland.

Both the aftermarket order and revenues will be recognised over the seven year period of the agreement which starts in 2022, in line with the Project's initial production.

Ricardo Garib, President of Weir Minerals said:

"This is another landmark order for Weir. Having helped design an energy and water efficient magnetite processing plant, we are delighted to provide operational support for Iron Bridge from 2022. It is an excellent example of the value that Weir's innovative engineering and close customer support can create for all our stakeholders and reflects the key role we have to play in making mining operations more sustainable and efficient."

Weir's Enduron® HPGRs are increasingly replacing conventional mills in comminution (crushing, screening and grinding) circuits. In addition to their energy and water savings they also reduce grinding media consumption, while their wearable components last longer, reducing maintenance costs. Additionally, HPGRs contribute significantly to carbon dioxide emission savings.

Stuart Hayton, Managing Director of Weir Minerals Netherlands, where the Enduron® HPGRs are designed and manufactured commented:

"This is an important project for Weir and for the broader mining industry. We know comminution is one of the most energy intensive parts of the mineral process and with our Enduron® HPGRs we have a unique ability to offer significant cost, energy and water savings to customers around the world. As the mining industry evolves we are commited to continuing to innovate, reducing miners' costs and environmental impact."

This latest contract award means Weir now has more than £200m of orders from the Iron Bridge Project including its Enduron® HPGRs, GEHO® and Warman® pumps, Cavex® Hydrcyclones and Isogate® valves.

To support the Project and future growth, Weir will build a new service centre in Port Hedland, Western Australia, thereby providing employment and training opportunities in the area, with a particular emphasis on supporting greater Aboriginal representation in the broader mining workforce.

About The Weir Group PLC

Founded in 1871, The Weir Group PLC is a premium mining technology business whose purpose is to make customers' operations more sustainable and efficient. The Group 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. Weir's highly engineered technology enables these critical resources to be produced using less energy, water and waste - reducing customers' total cost of ownership. The Group has c.13,000 employees in over 60 countries.