L&T picks Red Sea International for Mansourah, Massarah gold mines
Modular building manufacturer's contract for project on which L&T and Outotec are working is estimated to be worth $9m
Tadawul-listed Saudi Arabian manufacturer of modular buildings in the GCC, Red Sea International Company, has been appointed to supply two camps and office complexes for Indian contracting giant Larsen & Toubro (L&T) to support the contractor’s operations at the Mansourah and Massarah Gold Project (MMGP) site in the kingdom, where it is working alongside Finland's Outotec following a contract award from Saudi Arabian Mining Company (Ma'aden) subsidiary, Gold And Base Metals Company.
In a stock market missive, Red Sea International Co said it would also provide civil works, manufactured modular buildings, and installation and commissioning services for L&T.
Red Sea International Co said that the value of the contract exceeded 5% of its total revenues as per the audited financial statements for 2018.
Tadwaul statements show the company posted total revenues of $185.5m (SAR695.7m) in 2018, which brings the value of its L&T contract to approximately $9.3m (SAR34.8m).
Red Sea International Company inked the contract with L&T on 15 September 2019, with the project due to be implemented over a period of seven months.
The financial impact of the contract will reflect in the company's accounts for Q3 2019 to Q2 2020.
A construction contract worth $606m (SAR2.7bn) was awarded to L&T and Outotec in May 2019, and at the time, Ma’aden said in a stock market filing that initial production was expected to start at the facility in Q2 2022.
This would be followed by commercial production in the following quarter. The mine will produce an average of 250,000 ounces of gold each year.