Monadelphous secures second contract on BHP South Flank project

Monadelphous has won its second contract for works on BHP’s South Flank Iron Ore project in Western Australia’s Pilbara region. The new $104 million contract adds to Monadelphous’ previous award, bringing the company’s value of secured work to $212 million.

Works under the new contract will include structural, mechanical, piping and electrical as well as instrumentation works related to the South Flank’s inflow infrastructure.

“We are pleased to secure further work on this significant project and look forward to continuing our long track record of successfully working with BHP,” Monadelphous Managing Director Rob Velletri said.

Monadelphous is expected to begin works on the inflow infrastructure immediately, and it is due to be completed by March 2021.

In February 2019, the company secured the first construction contract for South Flank with a contract value of $108 million.

The South Flank Iron Ore project is located approximately 120 kilometres north west of Newman. The multi-billion dollar project will include the construction of an 80Mtpa crushing and screening plant, an overland conveyor system, stockyard and loading facilities as well as the sourcing of new mining fleet, substantial mine development and pre-strip works.

BHP’s Board has approved a $3.9 billion investment for the development of South Flank in June of last year, with major construction works commencing soon after.

The South Flank Iron Ore project is anticipated to generate up to 2,500 construction jobs and about 600 ongoing operational positions.

South Flank is expected to have a mine life of 25 years, with first production to begin in 2021.

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Source: Monadelphous Group; Australian Mining; The West Australian