NRW-Guruma wins $160m Rio contract

A joint venture between civil contractor NRW Holdings and indigenous contractor Eastern Guruma has been awarded a $160 million contract by Rio Tinto Iron Ore.

The 12-month contract is for earthworks and primary civil works at two of Rio's iron ore developments in the Pilbara - the Brockman 4 project and the Western Turner Syncline Stage 1.

Rio said the contract will support the expansion of Brockman's output from 22 million tonnes pa to 40 M/t pa and Western Turner to 15 M/t pa. This is part of Rio's drive to lift its Pilbara capacity to 333 M/t pa by 2015.

Rio's chief executive iron ore and Australia Sam Walsh said the contract higlighted the importance of building indigenous business capacity.

"We have made clear through all contract tenders that indigenous involvement is a high priority, and this announcement is further evidence of that."

Work on the two sections will be undertaken simultaneously and is due to commence in four weeks.

NRW said its peak workforce is expected to be approximately 550 people.

Chief executive Jules Pemberton said "Rio Tinto Iron Ore is one of NRW's long term clients and in addition to other recently awarded contracts this represents further expansion of our civil division".

"Having worked for RTIO on Brockman 4 previously and currently undertaking mining operations at Western Turner Syncline, we understand the projects and look forward to performing the works."

The $200 million contract for the construction and operation of the Western Turner Syncline, awarded in December 2009, was the inaugural contract for the NRW-Eastern Guruma joint venture.

Eastern Guruma board member Tania Stevens thanked RTIO for the opportunity saying the company understands the need for sustainable opportunities to be provided to indigenous Australians.

Caption: Rio Tinto President, Pilbara Operations Greg Lilleyman (centre) with members off the NRW-EG JV at the opening of Western Turner Syncline mine.