AusGroup subsidiary AGC Industries received an early works contract from Karara Mining worth A$60m ($62.08m).

AGC Industries will undertake structural, mechanical and piping installation works at the company’s iron ore process plant in Geraldton, Western Australia.

Mobilisation work on site will begin in April 2011.

The contract involves all mechanical disciplines, scaffolding, rigging and procurement of piping for the A$200m ($206.96m) main contract, which is currently being negotiated.

AusGroup’s managing director John Sheridan said we are delighted to be chosen by Karara for the mechanical works services contract.

"We see this as a significant opportunity to develop a long term relationship with this important client." Sheridan said.