https://newsletter.en.creamermedia.com
Business|Construction|Contractor|Copper|Energy|Engineering|Export|Financial|Gas|Hydropower|LNG|Mining|Power|PROJECT|Projects|rail|Solar
Business|Construction|Contractor|Copper|Energy|Engineering|Export|Financial|Gas|Hydropower|LNG|Mining|Power|PROJECT|Projects|rail|Solar
business|construction|contractor|copper|energy|engineering|export|financial|gas|hydropower|lng|mining|power|project|projects|rail|solar

Clough's collapse leaves more than $8bn in projects in limbo

The expansion of the Oyu Tolgoi copper mine may be affected by the collapse of Clough.

The expansion of the Oyu Tolgoi copper mine may be affected by the collapse of Clough.

6th December 2022

By: Reuters

  

Font size: - +

More than $8-billion worth of gas, power, rail and mining projects across Australia, Mongolia and Papua New Guinea face delays following the collapse of engineering firm Clough on Monday.

Projects that could be hit include the expansion of the Oyu Tolgoi copper mine in Mongolia, run by Rio Tinto, and major power plant and transmission projects essential to maintaining a stable grid in Australia from 2023.

Clough, with a global workforce of 2 500, was placed into voluntary administration by its South African parent, Murray & Roberts Holdings, after a deal to sell the business to Italian construction giant Webuild fell through.

Deloitte, appointed as administrator, said it would assess Perth-based Clough's financial position over the next two to three days and begin an accelerated sale and recapitalisation process, aiming to get projects back on track.

It said the goal is to source "immediate interim funding to be able to continue work on as many projects as possible as quickly as possible".

Webuild and Clough are partners on a A$5-billion ($3.4-billion) rail project in Australia's Queensland state and the A$5-billion expansion of Australia's biggest hydropower scheme, Snowy 2.0, which is already facing a delay of nearly two years into 2028.

Government-owned Snowy Hydro said it was working to ensure Clough's workers involved in the Snowy 2.0 project stayed on the project and a spokesperson for Energy Minister Chris Bowen said he had been told that none of the blue-collar workers on site were employed through Clough.

"We are working closely with the joint venture to ensure construction on the project progresses smoothly," a Snowy Hydro spokesperson said.

Clough is also handling construction of the A$768-million ($515-million) Waitsia Stage 2 gas project, owned by a unit of Japan's Mitsui & Co and Australia's Beach Energy.

The Waitsia Stage 2 project was due to start producing gas for export through the North West Shelf liquefied natural gas (LNG) plant in late 2023. Mitsui said it would work with all its partners to ensure the project proceeds.

"Given that an administrator has only just been appointed for Clough, it would be premature to speculate on the precise impacts for the Waitsia Gas Project Stage 2," Mitsui E&P Australia said in a statement.

Clough is also the contractor on a key project needed to shore up Australia's power supply, the 320 MW Tallawarra B gas-fired power station owned by EnergyAustralia, a unit of Hong Kong's CLP Holdings.

An EnergyAustralia spokesperson said the company would work with stakeholders, including General Electric and the administrators, to enable construction to continue so it could "play its part in ensuring the lights stay on in summer 2023/24".

Another major project involving Clough is a 900 km power transmission line, EnergyConnect, owned by TransGrid, essential for hooking new solar and wind farms to the grid.

TransGrid said it would work with Clough's partner Elecnor to deliver the A$2.3-billion project and expects to meet its completion deadline of late 2024.

Rio Tinto had no immediate comment on the impact of Clough's collapse.

Edited by Reuters

Comments

Projects

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 22 November 2024
Magazine round up | 22 November 2024
22nd November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.095 0.187s - 191pq - 2rq
Subscribe Now