16 Aug Rio Tinto awards $120m iron ore contract to RCR Tomlinson
Rio Tinto (ASX:RIO) has awarded diversified engineering and infrastructure company RCR Tomlinson a US$120 million contract to deliver a primary crusher and overland conveyor system for the Silvergrass iron ore mine in Western Australia.
Rio approved $338 million for the final phase of the Silver grass mine on 2 August.
The investment will replace road haulage with a primary crusher and a more effective conveyor system linking Silvergrass to the existing processing plant at the Nammuldi mine.
Silvergrass is expected to begin producing ore by October next year and will deliver 219 million tonnes of low-phosphorus Marra Mamaover a 12-year mine life, at a rate of around 20 million tonnes annually.
RCR said its work will include the engineering procurement and construction of a new primary crusher, 9km of overland convey and a 33kV power line.
Construction is expected to begin in the fourth quarter of this year.