Engineering and construction contractor Decmil Group will construct port and rail facilities for Gina Rinehart’s Roy Hill iron ore mine in the Pilbara, under a $71 million contract announced today.
Decmil said design works had commenced, while on-site works would be subject to Roy Hill obtaining a suitable financing package for the $10 billion project.
The $56.6 million rail works package will include construction of rail terminal buildings including a rolling stock workshop, wheel lathe building, warehouse and laydown areas, car parking and wash down facilities.
Decmil will also construct port facilities including workshops, overhead cranes, hydraulic cleaning rooms and administration buildings under a $14.5 million deal.
The company expects work to commence under both contracts next year.
Chief executive Scott Criddle said the company regarded the contract as a very significant win.
“Roy Hill is an important new iron ore project and Decmil is delighted to be involved,” Mr Criddle said.
“Decmil has a long history of working within the iron ore sector in the Pilbara and will bring the full extent of our experience and expertise to the design and construction of these facilities for Roy Hill.”
The Roy Hill project is 70 per cent owned by Gina Rinehart's Hancock Prospecting; the balance is held by Japan’s Marubeni, South Korea’s Posco, plus STX Corp, and China Steel Corp.
POSCO and Marubeni each have 12.5 per cent while STX and China Steel hold 2.5 per cent. POSCO and STX had originally taken a small stake in the project in 2010.
Late last month Roy Hill appointed Samsung C&T as its engineering contractor, in a $US5.8 billion deal.
Engineering group Parsons Brinckerhoff was also signed as a project management consultant early last month.
A comprehensive financing package for the mine is expected in coming months.
First ore from the Roy Hill project is expected to be produced in the third quarter of 2015, delayed from initial plans for late 2014.
