Decmil Group has been awarded a $13 million contract for work at BHP Billiton's South Flank iron ore project near Newman.
Perth-based Decmil will provide civil and enabling works for the expansion of the Mulla Mulla accommodation village, which BHP needs to support its current operations at its Mining Area C iron ore hub, and also support South Flank if the project receives development approval.
Work under the contract will begin shortly.
The $3 billion South Flank project is BHP’s preferred choice to replace production from its 80 million tonnes per annum Yandi iron ore mine when it reaches the end of its project life in the coming decade.
South Flank is expected to be submitted for board approval in the middle of next year, with first ore foreshadowed for 2021.
Decmil shares were 4.3 per cent higher to 96 cents each at 10:45am.