Rio Tinto awards $90 million contracts to WA firm

Rio Tinto awards $90 million contracts to WA firm

Rio Tinto (LSE:RIO) has awarded contracts worth US$90 million for key projects in Western Australia and Queensland to a Western Australian firm.

Construction and engineering firm Decmil won the contracts for mine infrastructure at Rio’s Nammuldi and Silvergrass iron ore mines in the Pilbara and the Amrun bauxite project in far north Queensland.

In Western Australia, Decmil will undertake a $40 million contract for the design, construction and commissioning of new facilities at the existing Nammuldi central mine and the Silvergrass mine areas.

Decmil will complete a variety of construction objectives at the Queensland project including: construction of heavy mining equipment workshops, refuelling and wash stations, workshops and welding bays, waste transfer stations and Amrun’s administration buildings – up to 105 workers will be employed to build the mine-site infrastructure.

“The Decmil contracts are yet another example of how Rio Tinto partners with local suppliers to deliver economic benefits for Australia above and beyond taxes, royalties and direct employment,” said Stephen McIntosh, Rio Tinto Growth & Innovation group executive.

“Construction of the Silvergrass iron ore mine will ramp up in the first quarter of next year which will support about 500 jobs during construction.”

McIntosh added that the $2.6 billion Amrun project will continue to support Australian suppliers.

“The Amrun project has already awarded contracts valued at more than $850 million to Australian-based suppliers. Our world-class bauxite project in far north Queensland is one of Rio Tinto’s most important growth projects and we are very pleased that Australian suppliers are securing contracts at Amrun.

“More than 550 Australian businesses have been engaged to date on Amrun and more than 50 Indigenous men and women are employed to work on the project.

“With a range of other major contracts still to be awarded at Amrun, we look forward to further highly-competitive bids from Australian suppliers.”