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R90 million coal contract

Brain Harley

B&W managing director,
Brian Harley

JSE-listed electrical and instrumentation (E&I) contractor, B&W, was awarded a R90 million contract on the Douglas- Middelburg Optimisation (DMO) project in Mpumalanga, South Africa. The contract was awarded to B&W for and on behalf of BHP Billiton by Bateman Africa which is the EPCM contractor for the materials handling and stockyard aspects of the DMO contract.

B&W’s contract comprises, inter alia, the electrical construction and related works for 14 substations and 21 conveyors with an aggregate length of 25 km of conveyor belts.

B&W director and project manager of this contract, Tom Lombard, says that the numbers speak for themselves. “The contract will require 320 km of electric cable, 80 000 m of instrument cable and more than 16 km of racking. It is one of the biggest E&I projects received over the last two years.”

Norman Collier, Bateman Africa senior project manager, says that several E&I contractors were evaluated for the job. “Price was not our only consideration. We looked at their safety records, the general quality of their work and, most especially, their capacity to execute the work successfully in accordance with our budgets and timelines and B&W came out tops,” Collier says.

BHP Billiton Energy Coal South Africa’s (BECSA) DMO contract, worth approximately R9 billion, is large in anybody’s terms. Its scope includes utilising reserves across Douglas and Middelburg Mine Services Collieries (DMMSC) and the development of new mining areas.

A spokesman for BECSA says the project will enable the company to maintain coal exports from the DMMSC operations as well as to fulfill domestic contractual commitments until 2034.

Brian Harley B&W managing director says, “Our business has been geared towards infrastructure for some time and we all know that there is R780 billion earmarked for this over the next three to five years. Also we have been successful in extending our operations across border, significantly increasing our pool of work.”