Decmil in Silvergrass win

Osborne Park-based contractor Decmil has won a $40 million contract from Rio Tinto for work on the Silvergrass greenfields iron ore mine.

Decmil will design, construct and commission new facilities at the mine, with work on the nearby Nammuldi central mine included in the arrangement.

Work will get under way immediately and be completed in late 2017.

Rio made a final investment decision on Silvergrass in August, with an expected capital expenditure of $338 million.

RCR Tomlinson then won a $120 million contract to build the new mine’s processing infrastructure.

Decmil’s other recent contract wins included a $22 million road duplication in Victoria, and a $17 million extension of a well services contract for QCG.

Shares in Decmil were 2.5 per cent higher at $1.06 at the time of writing, while shares in Rio Tinto were up 1 per cent to $59.95.