Civmec Limited (ASX: CVL) has kicked off 2026 with a bang, securing contract awards and extensions worth more than $400 million from Tier-1 mining clients. The Western Australian engineering giant announced that it had locked in significant work packages with BHP Group (ASX: BHP) and Fortescue (ASX: FMG), reinforcing its position as a leading contractor in Australia’s resources sector.
The contracts are expected to be delivered across the second half of FY26 and into FY27. They reflect Civmec’s strategic focus on early contractor involvement and order book diversification while demonstrating the strength of long-standing relationships with blue-chip mining clients.
BHP Port Debottlenecking Project 2: A Flagship Win
Among the newly awarded contracts, Civmec Limited secured a significant package with BHP for the BHP Port Debottlenecking Project 2 (PDP2) at Nelson Point, Port Hedland.
 
Port Hedland Ports [BHP]
The scope includes concrete and earthworks for the installation of a sixth car dumper (CD6), which is also being manufactured by Civmec at its Henderson fabrication facility in Western Australia.
Key elements of the PDP2 contract:
- Bulk excavation for the new car dumper structure
- Formwork, rebar and concrete placement works for CD6
- General concrete works for new conveyors and transfer stations
- Establishment of a new batch plant for on-site concrete supply
- Design and installation of new piling for CD6
- Management of temporary works including a dewatering and recharge system
The PDP2 project forms part of BHP’s $1.4 billion infrastructure investment aimed at maintaining Western Australia Iron Ore production at 305 million tonnes per annum. The new car dumper will increase equipment availability, allowing the port to operate with at least five car dumpers more than 90 per cent of the time, up from around 60 per cent currently.
Civmec CEO Patrick Tallon expressed the Company’s pride in the award.
“We are absolutely delighted to be entrusted with this significant package of work,” Tallon said.
“We are honoured to be trusted to deliver, particularly given the location and complexity of the scope, which plays to Civmec’s strengths. BHP were among our earliest clients and sustaining this healthy relationship makes this award especially meaningful.”
Fortescue Charger Facilities: Supporting the Green Transition
Civmec has also been awarded a contract for the construction of Light Mobile Equipment and Support Mobile Equipment charger facilities and pit power infrastructure at Fortescue Charger Facilities at Eliwana and Flying Fish mine sites.
The work scope includes:
- Construction, installation, verification and commissioning of multiple charger facilities
- Prefabricated DC distribution units integrated with AC chargers
- Civil works and electrical integration for modular, transportable pit power substations
These substations are designed for modular deployment and will support Fortescue’s rollout of electric excavators and drills as part of the miner’s ambitious decarbonisation objectives. Fortescue aims to achieve Real Zero terrestrial emissions by 2030 through a comprehensive transition to electric mining equipment and renewable energy.
The charger infrastructure contract builds on Civmec’s ongoing delivery of civils and structural, mechanical, piping, electrical and installation work for Fortescue’s Christmas Creek Green Iron Project.
Christmas Creek Green Iron Project [Fortescue]
Maintenance Contracts: Building Recurring Revenue Base
Beyond the headline-grabbing BHP and Fortescue wins, Civmec Limited continues to secure additional maintenance contracts in Port Hedland and Gladstone. These wins reflect increasing demand for the Company’s integrated service capability and reinforce its focus on scaling maintenance solutions across major resource hubs.
The expansion of Civmec’s maintenance footprint in both regions provides the Company with a growing base of recurring revenue, supporting margin stability and long-term business resilience.
Strategic Positioning and Market Impact
The $400 million contract haul represents a material addition to Civmec’s forward order book, providing enhanced revenue visibility through FY27. The awards validate the Company’s strategy of pursuing early contractor involvement, service diversification, and long-term partnerships with Tier-1 clients.
Patrick Tallon highlighted the broader implications of these wins.
“This successful conversion of opportunities from our strong pipeline reinforces our strategic focus on sustainable growth and demonstrates the confidence our clients place in our capabilities,” he said.
The contracts position Civmec squarely within Australia’s energy transition narrative. Its significant exposure to Fortescue’s decarbonisation projects could attract further investor interest, particularly from ESG-focused funds seeking exposure to the critical minerals and clean energy transition.
Industry Context: Mining Investment Cycle Strengthens
The contract awards come as Australia’s mining sector experiences renewed investment momentum. BHP, Rio Tinto and Fortescue continue to channel capital into sustaining and replacement projects across the Pilbara, supporting long-term production targets despite softer commodity price environments.
BHP’s Port Hedland expansion follows the completion of Port Debottlenecking Project 1 (PDP1), which delivered improved car dumper and ship loader performance. The miner recorded full-year production of 290 million tonnes in FY25 on a 100 per cent basis, alongside record shipments through Port Hedland facilities.
Fortescue’s pivot toward decarbonisation has created a pipeline of infrastructure opportunities for contractors capable of delivering complex electrical and civil works. The miner has committed to replacing around 800 pieces of heavy mining equipment with zero-emission alternatives by 2030, backed by 2-3GW of renewable energy and battery storage deployment across the Pilbara.
Investor Outlook and Share Price Performance
Market reaction to the announcement has been positive, with investors recognising the strategic value of the contract wins.
According to recent trading data, Civmec shares closed at $1.16 on 2 January 2026, up 1.754 per cent on the day of the announcement. The stock has demonstrated strong momentum through the second half of 2025, supported by improving order book visibility and operational execution.
CVL Price Chart [ASX]
The Company’s diversified order book spans energy, resources, infrastructure, marine and defence sectors, providing resilience across economic cycles. Management has emphasised capital discipline and operational efficiency as key priorities heading into FY26.
About Civmec Limited
Civmec Limited is an integrated, multi-disciplinary construction and engineering services provider to the energy, resources, infrastructure, marine and defence sectors.
Headquartered in Henderson, Western Australia, with regional offices in Newcastle, Gladstone and Port Hedland, Civmec offers a comprehensive range of services including:
- Heavy engineering and fabrication
- Shipbuilding
- Modularisation
- Structural, mechanical and piping (SMP) works
- Electrical, instrumentation and control (EIC) services
- Precast concrete
- Site civil works
- Industrial insulation
- Maintenance
- Surface treatment
- Refractory services
- Access solutions
The Company is dual-listed on the Australian Securities Exchange (ASX: CVL) and Singapore Exchange (SGX: P9D).
Final Thoughts
Civmec’s $400 million contract haul underscores the Company’s strong competitive position within Australia’s resources sector. The wins with BHP and Fortescue validate management’s focus on early contractor engagement, technical capability and long-term client relationships.
As Australia’s mining sector navigates the twin challenges of maintaining production capacity and transitioning toward lower emissions, contractors like Civmec that can deliver complex infrastructure projects stand to benefit from sustained capital deployment.
With delivery timelines extending into FY27 and a growing maintenance revenue base, Civmec appears well-positioned to capitalise on the multi-year investment cycle unfolding across the Pilbara.
