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Strabag awarded tunnelling contract for Sirius Minerals’North Yorkshire Polyhalite Project

Published: March 29, 2018; 10:01 · (Vindobona)

Sirius Minerals Plc. has hired the European construction group Strabag SE to build an approx. 13 km tunnel section for the underground transport system of the Woodsmith Mine near Whitby, England. The design-and-build contract was signed on 28 March.

Strabag awarded tunnelling contract for Sirius Minerals’North Yorkshire Polyhalite Project / Picture: © Vindobona

The Woodsmith Mine will begin extraction from the world's largest deposit of
polyhalite, a mineral used in the production of fertilizer, in 2021. The section
to be built by STRABAG is part of a 37 km tunnel with a diameter of 4.7 m for an
environmentally friendly conveyor system to transport the mined polyhalite to
Wilton for processing. The STRABAG contract also includes the construction of a
tunnel ramp as well as the tunnel portal at Wilton. The actual tunnelling works
will cover the distance from the Wilton portal to a shaft at Lockwood Beck, with
150 m to be built via cut-and-cover construction, 800 m through conventional
tunnelling and 11,900 m using a tunnel boring machine. Site mobilisation is to
begin immediately.

Early contractor involvement (ECI): the key to success
STRABAG was closely integrated in the project design through an early contractor
involvement (ECI) process. This has allowed the company to develop efficient new
solutions that convinced the client of its capabilities.

Simon Carter, Sirius' Chief Development Officer, points out that "Sirius has
undertaken a competitive procurement process in respect of Drive 1 to ensure
that the best tunnelling option was developed. STRABAG was the winning tenderer,
providing a compelling offer in terms of price, schedule, safety management and
risk allocation."

"We are very proud to have acquired this project. It shows that the early
involvement of the contractor in the preconstruction phase offers many
advantages and can make a decisive contribution to the success of the project.
Early contractor involvement makes it possible to recognise potential for
optimisation at an early stage and to use this potential over the entire
duration of the project," says Thomas Birtel, CEO of STRABAG SE.

The project is currently the second tunnelling project for STRABAG in the United
Kingdom. The company is part of a consortium that last year was awarded two lots
for the HS2 high-speed rail line.

Further inquiry note:
Diana Neumüller-Klein
Head of Corporate Communications
Tel: +43 1 22422-1116

end of announcement euro adhoc

Attachments with Announcement:

issuer: STRABAG SE
Donau-City-Straße 9
A-1220 Wien
phone: +43 1 22422 -0
FAX: +43 1 22422 - 1177
ISIN: AT000000STR1, AT0000A05HY9
indexes: WBI, SATX, ATX
stockmarkets: Wien
language: English

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