Calibre Group has won a $23 million contract on the Roy Hill iron ore project, with the work proceeding ahead of the project’s debt funding being finalised.
The contract was awarded by engineering group Samsung C&T, which won a US$5.8 billion EPC contract for Roy Hill in March.
Calibre will undertake the detailed design for 330 kilometres of heavy-haul railway, passing loops and other associated infrastructure.
The project will involve up to 60 people and is due to be completed by the end of the calendar year.
The Roy Hill project, expected to cost about $10 billion in total, involves development of a 55 million tonne per annum iron ore mine, a rail link to Port Hedland, and new shipping berths and support infrastructure.
A Roy Hill spokesperson told Business News the project team was still engaged in talks with international export credit agencies and commercial banks to secure the debt financing, estimated to be US$7 billion.
In the meantime, shareholders including Hancock Prospecting, POSCO and Marubeni have provided funding to allow work to proceed.
“Our equity partners continue to provide finance to allow the further development of the project,” the spokesperson said.
Signs of progress include a corporate headquarters and remote operations centre under construction at Perth Airport, a 2,000-bed village being built at the mine site, a 1,200-bed accommodation camp nearing completion at South Hedland, and earthworks for the mine processing plant.
NRW Holdings is undertaking work at the mine site, under a $67 million contract.
