Fortescue Metals Group (FMG) is expanding its relationship with Downer EDI with a new contract award valued at $450 million for early mining and maintenance services at the Eliwana iron ore project in the Pilbara, Western Australia.
This second works package follows a bulk earthworks contract awarded to Downer in 2019.
The five-year contract includes the delivery of early works over a two-year period while the mine site is being developed. Operations will then transition to FMG’s autonomous mining fleets once early works are completed.
After the initial two years, Downer will remain on site to provide maintenance services for another three years.
“Downer has a long-standing relationship with Fortescue and we are very pleased to be expanding our services. We are proud to be supporting the development of the Western hub and the communities that will benefit from the mine,” Downer Chief Executive Officer Grant Fenn said.
The Eliwana Mine and Rail development is a $1.7 billion project comprised of a 143-kilometre rail line and a 30Mtpa dry ore processing facility.
The rail component of the Eliwana project will also deliver two bridges and an underpass for the Karratha-Tom Price Road.
Approximately 2,400 jobs are expected to be supported by the delivery of the Eliwana project.
Earlier this year, the Eliwana rail project was granted development approval by the State Government and it was also given a Special Rail License. You can read more about it here.
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Source: Downer EDI Limited; Australian Mining; Fortescue Metals Group; Mining Weekly; International Mining