GasNet's success in securing the contract marks the company's first big step outside of the Victorian market where the group owns and maintains Victoria's high-pressure transmission pipeline network which supplies around 1.4 million households and over 40,000 commercial and industrial users.
Group CEO Christine O'Reilly said that since the company's listing in early 2002 the focus has been on bidding for the few available greenfields contracts in Australia.
Following the successful acquisition of the Telfer contract GasNet will now turn its focus to the Blacktip pipeline in the Northern Territory and the impending sale of the Moomba to Adelaide pipeline by Epic Energy.
"The Dampier to Bunbury pipeline sale will be too hotly contested and probably a bit too rich, but currently there are a couple of good opportunities available in Australia," said O'Reilly.
Construction of the Telfer pipeline will be funded by a mixture of cash, non-recourse debt and roughly $20 million of new equity to be raised through a placement through a 100% owned subsidiary of GasNet Australia Investment.
Newcrest's huge $1 billion Telfer mine redevelopment is scheduled to resume production in 2005.
The project plan calls for parallel production units with twin semi-autogenous grinding (SAG) units and conventional flotation.
The substantial power requirements will be met using gas from the North West Shelf and on-site power generation from gas fired turbines.
