Babylon Pump and Power has secured a contract for the supply of off-site repair services with Rio Tinto in Western Australia.
The contract does not provide any commitment or guarantee of revenue; however, Babylon’s board has deemed this contract to be material.
The contract is for the supply of off-site repair services for pumps and generators for multiple Rio Tinto sites.
“Babylon’s Board is grateful for the confidence Rio Tinto has placed in the company and looks forward to continuing a strong and positive working relationship with Rio Tinto,” Babylon stated in an ASX announcement.
Babylon Operations was established in February 2017 by Michael Shelby, an oil and gas executive with international experience.
The company focussed on the oil and gas and mining sectors, providing specialised equipment rental, experienced operators and technicians, and repair and maintenance of customer equipment with an emphasis on large diesel engines.
In November 2017, Babylon Operations was acquired by IM Medical, changing the nature of its activities to industrial services.
The contract between Rio Tinto and Babylon will commence immediately upon signing and has an initial term of three years with a two-year extension period.
This contract extends Babylon’s working relationship in the mining sector. The company has also supplied and installed power generation equipment at the BHP’s Mining Area C surplus water pipeline project since October 2018.