NRW (ASX:NWH) share price rises on Fortescue deal

The NRW Holdings Limited (ASX: NWH) share price is heading higher today after a massive deal with Fortescue Metals Group Limited (ASX: FMG).
The post NRW (ASX:NWH) share price rises on Fortescue deal appeared first on The Motley Fool Australia. –

A satisfield miner stands in front of a drilling rig, indicating a share price rise in ASX mining companies

The NRW Holdings Limited (ASX: NWH) share price is heading higher today.

At the time of writing, shares in the diversified resources company are up 3.32%, trading for $2.02. To compare, the S&P/ASX 200 Index (ASX: XJO) is 0.4% higher.

Today’s price lift comes as the company announces new contracts today with mining companies Fortescue Metals Group Limited (ASX: FMG) and Strandline Resources Ltd (ASX: STA).

Fortescue contract

In today’s announcement, NRW Holdings advised it has been awarded a $27.2 million contract for the design and construction of a primary crushing plant (PCP) at Fortescue’s Cloudbreak iron ore mine in Western Australia.

This is the third time NRW has done business with Fortescue, after delivering the Hopper 9 crushing plant the Cloudbreak mine, and the Solomon Hub conveyor and crushing plant, which will be delivered concurrently with this project.

With Fortescue Metals the seventh-largest company listed on the ASX by market capitalisation and iron ore prices rising to record levels, this could be good news for the NRW share price.

NRW CEO Jules Pemberton said:

I’m delighted that our Minerals Energy and Technology team of RCR Mining Technologies, DIAB and Primero are able to collaborate once again on another project for Fortescue and continue to innovate through smarter engineering solutions.

Strandline contract

In another ASX release, NRW says it has been awarded a $135 million contract with Strandline Resources for engineering, procurement and construction (EPC) of the Coburn Minerals Sands project.

As Motley Fool reported earlier, the project consists of two components – a wet concentrate plant (WCP) and a minerals separation plant (MSP). According to the statement, the two plants will be used to treat minerals before they undergo a separation process to produce “chloride ilmenite, rutile, zircon and zircon concentrate.”

NRW says the project should be completed by Q4 of calendar 2022.

NRW share price snapshot

Over the past 12 months, the NRW share price has increased 20.2%. However, just in the last 3 months, the company’s value has actually fallen 29.4%.

NRW Holdings has a market capitalisation of $892.2 million.

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post NRW (ASX:NWH) share price rises on Fortescue deal appeared first on The Motley Fool Australia.

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