FMG contracts Civmec

Civmec has secured its second major contract with Fortescue Metals Group, this time to complete the earthworks and concrete package for Iron Bridge.

Henderson-based Civmec says the new work has boosted its order book to $901 million, sending the company’s shares up 7.5 per cent at 12:30pm AEST to trade at 43 cents.

The Iron Bridge magnetite project, budgeted at $US2.6 billion ($A3.75 million), is a joint venture between Fortescue subsidiary FMG Iron Bridge and Formosa Steel.

The proposed magnetite mine, located about 145 kilometres south of Port Hedland, is set to produce 22 million tonnes of high grade magnetite concentrate per year.

Civmec has been tasked with building the structural works for the dry plant, as well as for the primary, secondary and tertiary crushing areas, screening areas, air classification and primary grinding areas.

Civmec chief executive Pat Tallon said the company was pleased to continue its relationship with Fortescue.

“The Iron Bridge joint venture has demonstrated and refined each step of the magnetite ore processing system and conducted full-scale trials to ensure the effectiveness of the process and gain confidence in the overall project success,” Mr Tallon said.

Civmec expects to employ more than 200 workers at peak construction, and says it will engage with local Aboriginal enterprises.

Works will begin immediately, and are expected to complete in the first quarter of 2022.

First ore shipment is scheduled for mid-2022, FMG says.

Its shares were up 0.1 per cent at 12:35pm AEST to trade at $14.04.