Two contractors announced for works on $1.7bn Eliwana mine WA

Works are progressing well at Fortescue Metals Group’s (FMG) $1.7 billion Eliwana Iron Ore Project in Western Australia, with two new work contracts awarded to BGC Contracting and SIMPEC.

BGC Contracting was awarded a $24 million contract for the delivery of bulk earthworks for the permanent accommodation village and access roads. The company will also build a new airstrip and a 16-kilometre construction access road.

The earthworks and civil works done by BGC Contracting will be vital in developing initial road facilities for the mine and these works will also pave the way for the construction of future rail and other associated infrastructure.

Works under this contract will commence immediately and will take up to six months to complete.

“We look forward to working with Fortescue in the delivery of this project in the resources sector.

“There has been a real increase in resource sector and construction opportunities, particularly in Western Australia and Queensland, and we look forward to this next phase in our growth strategy,” BGC Contracting CEO Greg Heylen said.

On the other hand, SIMPEC has been awarded a $10 million contract by ATCO Structures and Logistics for works on the 800-room permanent accommodation camp at the Eliwana mine. Works will include design, supply, construction, test and commissioning of electrical, communications and dry fire systems.

“This Tier one project award is a significant achievement for SIMPEC allowing the company to construct alongside some of Australia’s biggest construction companies,” SIMPEC Managing Director Mark Dimasi said.

The Eliwana Iron Ore Project - located in the Pilbara region, approximately 90 kilometres West Northwest of Tom Price - was approved for development in May 2018. The project is comprised of a 143-kilometre rail line and a 30Mtpa dry ore processing facility.

The Eliwana project is expected to support up to 1,900 jobs during construction and about 500 full-time positions once it is operational.

Once Eliwana begins operation, it will help underpin the introduction of a 60% iron grade product as well as allow FMG to maintain a low cost status.

Production at Eliwana is anticipated to begin in 2020.

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Source: BGC Contracting; SIMPEC; Australian Mining (1, 2); Fortescue Metals Group