Fortescue contracts RDG for $58m

Resource Development Group has secured work at Fortescue Metals Group’s Solomon Hub, while a contract with Chinese-owned Minjar Gold has been terminated.

RDG, through its Central Systems division, will design and build central facilities at the Solomon Hub under a $57.5 million contract.

The Hub, situated 60 kilometres north of Tom Price, comprises the Firetail and Kings Valley iron ore mines, which have a combined production capacity of 75 million tonnes per annum.

Central Systems is expected to finish building the facilities by June next year.

The RDG subsidiary is also designing and building an overpass at Fortescue’s Cloudbreak mine site, part of the Chichester Hub.

RDG announced the work in June alongside a one-year contract with Minjar Gold, a subsidiary of China’s Tianye SXO Gold Mining. Those had a combined value of $26 million.

The Minjar contract, awarded to RDG’s Crushing Service Solutions subsidiary, involved crushing and screening services to a gold plant near Southern Cross.

That contract has now been terminated, RDG said today. The group did not cite a reason for the termination.

Its shares were up 4.3 per cent at 3:23pm AEST to trade at 7.3 cents.