Decmil latest preferred contractor for Rio

Construction and contracting group Decmil Australia has announced a five-year preferred contractor agreement with Rio Tinto to provide civil works for its $US18 billion iron ore expansion in the Pilbara.

Decmil chief executive Scott Criddle said the contract would formalise the long-term relationship between the two companies and would help ensure Rio to adhere to its schedule of projects for the expansion.

Rio is planning to expand its current capacity of 225 million tonnes per annum to 283Mtpa by 2013 and 333Mtpa in 2015.

"The preferred contractor agreement that Rio Tinto has entered into with Decmil Australia reflects the strength of the relationship between the two companies.

“The long term nature of this agreement provides both organisations with greater certainty in long-term planning.

"This agreement also represents a continuation of our strategy of securing recurring revenue streams with key clients in key sectors."

The agreement is the third such deal Rio has signed for its 333 expansion program, after the company announced contracts with Southern Cross Electrical Engineering and NRW Holdings last year.