Sunday 18th Aug, 2019

Rio Tinto awards key Koodaideri engineering contract

Iron ore rock formation. Photo: Shutterstock

WorleyParsons has won a contract to perform engineering, procurement and construction management services at Rio Tinto’s Koodaideri iron ore project.

The contract follows the completion of a detailed engineering study for the Koodaideri project, located in the Pilbara region of Western Australia.

“We are pleased to expand our relationship with Rio Tinto on this important project,” said Andrew Wood, chief executive officer of WorleyParsons.

The project will be carried out over a three-year period from the Perth project office with additional support teams on the mine and rail locations.

WorleyParsons will use data-centric engineering processes to also produce a digital asset for Rio Tinto.

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The $3.8 billion Koodaideri project was approved by Rio Tinto in 2018 and will start production in late 2021. It will integrate extensive automation and digitalisation technologies and is estimated to create 600 permanent operational jobs over a 30-year lifespan.

Sydney-headquartered engineering company WorleyParsons is known for its works in the hydrocarbons, mineral, metals, chemicals, power and infrastructure sectors. The company almost doubled in size following the acquisition of Jacobs Engineering’s energy, chemical and resources division for $4.6 billion in October last year.

The cost of the company’s Koodaideri contract with Rio Tinto has not been divulged, but comes off the back of similar high-profile contracts at the iron ore site with NRW Holdings ($65 million) in January this year and Pindan ($45 million) in December 2018.