Aye Corumbá! Ausenco work terminated

In a statement, the construction and engineering firm said it had received a notice from Rio terminating its services on the $US2.15 billion expansion plan, which represented around 6% of projected 2009 revenue and 7% of 2010 estimated revenue.However, the company estimated the contract termination would have a net impact of less than 3% on 2009 project revenue.According to Ausenco, the reduction in revenue would be partly offset by two recent engineering, procurement and construction management (EPCM) contract wins for Bemax Resources and Uranium One, announced in December last year. Ausenco chief executive officer Zimi Meka said the company continued to convert existing opportunities totalling around $A17 billion into EPCM projects. “We believe we are positioned to convert a number of these studies into projects in 2009 either through negotiation or tender,” Meka said. Shares in Ausenco were trading at $2.26, down 20c, at midday.

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