Decmil Group has announced it will build a 200-bed rail camp for Fortescue Metals Group in a deal worth $28 million.
The contract, which is part of FMG's T155 rail expansion program, will see Decmil construct 200 single person accommodation rooms, with the option to increase to 514 rooms, a wet mess, gym and recreational facilities, as well as administration rooms at a site just south of Port Hedland.
Decmil Group chief executive Scott Criddle said construction was due to commence early next month, with a scheduled completion in the second quarter of this year.
“We are delighted to build on our relationship with Fortescue Metals Group through this contract,” Mr Criddle said in a statement.
“This is the latest in a series of projects that Decmil has carried out for Fortescue Metals group, including the construction of an airstrip and provision of staff accommodation at Christmas Creek.”
The contract is the second significant win this month for Decmil, which also signed a $90 million contract for work at BHP Billiton Mitsubishi Alliance’s Caval Ridge coal mine in Queensland.
Decmil also announced earlier this month that it had entered a five-year preferred contractor agreement with mining giant Rio Tinto, to provide civil works for its $US18 billion iron ore expansion.
At 10:00AM WST, Decmil shares were up nearly 3 per cent, at $2.51.