Cavico Corp. (NASDAQ: CAVO),
a leading infrastructure development company based in Vietnam, today announced that its majority-owned subsidiary, Cavico Construction and Infrastructure JSC (Cavico Infrastructure) has signed a contract with Binh Thuan Minerals and Building Materials JSC for construction work at the Nui Tao Stone Mine. The expected revenue value of contract is $12 million.
Cavico Infrastructure will extract and process the stone from the Nui Tao Stone Mine, and then market the stones to customers in Vietnam. The mine is located in Phuoc The village, in the Binh Thuan province in southern central Vietnam. According to the terms of the eight and a half year agreement, Cavico will extract and process approximately 1.5 million cubic meters of block stone, widely used in construction, in an area located on 30,000 square meters of land.
Nui Tao Stone Mine is owned by Binh Thuan Minerals and Building Materials JSC. The mine is located on 76,852 square meters of land and has 3.7 million cubic meters of stone reserve. Binh Thuan Minerals is licensed to extract 133,334 cubic meters of stone per year.
“There is a great deal of demand for construction stones in this province,” stated Mr. Hai Thanh Tran, vice president of Cavico Corp. “In particular, there are several critical projects that have been approved by Vietnam’s Prime Minister within this region that require construction stones, such as projects for Vietnam’s largest thermoelectricity generating company, worth $6.1 billion. In addition, this region has ports which will transport general products throughout the country. Cavico’s ability to apply its knowledge of the region and identify growth opportunities as well as leverage its highly skilled labor force, will allow it to build its portfolio of projects in the Binh Thuan province in the future. We plan to continue our dialogue with developers in the region on additional construction contracts and opportunities to help further develop this growing and promising area.”