Penrice has held similar contracts with Urban Superway, previously supplying 167,000 tonnes of quarry aggregates.
This new project is a real positive for the company as it has posted losses in recent times. Penrice Soda has found it difficult to do business in the current conditions due to little activity in civil projects in South Australia. Therefore, this contract was highly sought after.
The Urban Superway business represents around 15 per cent of Penrice?s quarry business sales to the civil market and will contribute materially to an expected increase in profitability for the FY2012.
Penrice reported an unaudited after tax loss of $4.3 million for the first four months of the current financial year.
Over the next two years Penrice will supply civil products from its Angaston mine to Urban Superway which is a joint venture comprising John Holland Pty Ltd, Macmahon Contractors Pty Ltd and Leed Engineering & Construction Pty Ltd.
Urban Superway is building a 4.8km upgrade to South Road in Adelaide worth $842 million. It is due for completion in 2013.
Source: Penrice Soda Holdings Limited