26/05/2020 - 15:19

Downer wins further work at Eliwana

26/05/2020 - 15:19

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Downer has secured a $450 million contract with Fortescue Metals Group for early mining and maintenance services at the Eliwana iron ore mine in the Pilbara.

Downer has secured its second package of works at Fortescue's Eliwana iron ore mine in the Pilbara.

Downer has secured a $450 million contract with Fortescue Metals Group for early mining and maintenance services at the Eliwana iron ore mine in the Pilbara.

This is the second Eliwana project package awarded to Downer, after the NSW-based company secured a bulk earthworks contract in late 2019.

Under the new agreement, Downer will complete early works operations over two years as the mine site is established, after which operations will transition to Fortescue's autonomous mining fleets.

Downer will remain at the Eliwana mine site and provide maintenance services for a further three years.

Chief executive Grant Fenn said the company was a leading provider of mining services in Australia.

"Downer has a long-standing relationship with Fortescue and we are very pleased to be expanding our services," he said in an ASX announcement.

"We are proud to be supporting the development of the Western Hub and the communities that will benefit from the mine."

Fortescue approved the development of the $US1.275 billion ($A1.9 billion) Eliwana mine in May 2018, which includes 143 kilometres of rail and a 30 million tonnes per annum processing plant.

First production is anticipated for December this year.

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