Friday 24th Jan, 2020

Rio Tinto awards $250M in West Angelas contracts

Photo: Rio Tinto

Rio Tinto has awarded $250 million worth of construction contracts to two contractors for work at the Robe River Joint Venture’s West Angelas iron ore mine in the Pilbara.

BGC Contracting and Monadelphous Group, both Western Australian contractors, were selected for the works.

BGC will undertake earthworks and civil construction for the two new deposits at the mine.

The contract will include building the concrete foundation for the iron ore mine’s facilities, deliver utilities infrastructure and build heavy and light vehicle road networks to connect the existing processing plant with the deposits.

BGC will begin work on site in early October, with the contract scheduled for completion in December 2020.

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BGC Chief Executive, Greg Heylen, said the contract will display the multidisciplinary capability of BGC’s construction team to deliver large earthworks and civil works projects.

“This latest contract award is a further step in the company’s diversification strategy,” Heylen said.

Monadelphous will supply and install structural, mechanical, piping and electrical instrumentation works for the construction of new iron ore facilities.

The company will commence work immediately and is scheduled for completion in April 2021. Its contract is worth more than $100 million, according to a Monadelphous ASX announcement.

Rio Tinto Iron Ore Chief Executive, Chris Salisbury, said the contract awards were further demonstration of the company’s commitment to buy locally as it invested in a strong pipeline of development projects.

“This pipeline will continue to provide opportunities for WA businesses to compete as we look to local components to support our mines of the future,” Salisbury said.

Rio Tinto expects to deliver first ore from the expansion projects in 2021. The development of the new West Angelas deposits will help the company sustain production of its premium Pilbara Blend iron ore product.