FMG picks Thiess for Iron Bridge

Queensland-based Thiess has won a $700 million contract to provide mining and maintenance services on Fortescue’s new Iron Bridge magnetite project in the Pilbara.

Thiess will start work at the site this month under an initial three year contract, which comes with options to extend.

Chief executive Michael Wright said it was a significant project win for the company, which last month lobbed a bid to purchase WA contractor MACA.

“Thiess’ appointment reinforces our mining capability, reputation for mobilisation and operational performance, our focus on technology and our strong ESG commitment and credentials,” he said.

“We are looking forward to working with the Iron Bridge team to deliver outstanding results in mining and sustainability to ensure we exceed the client’s expectations.”

Previously, Thiess worked on Fortescue Metals’ Solomon Hub in 2014 and at BHP’s Nickel West Operations in 2018.

Though its only listed WA contract at present is on the Mt Holland lithium mine, which is owned jointly by Wesfarmers and Sociedad Química y Minera de Chile (SQM), acquiring MACA would grant Thiess a bigger operating presence in Western Australia.

Thiess is jointly-owned by unlisted construction business CIMIC, which also owns CPB Contractors, and private equity investor Elliott Advisers.

It is estimated to employ more than 12,000 people globally.

Iron Bridge is held in a joint venture between FMG’s magnetite subsidiary and Formosa Steel, owned by Taiwanese conglomerate Formosa Plastics Group.

Development progress at Iron Bridge project has been hindered by COVID-19 related labour constraints as well as broader supply issues and inflated costs, which drove up capital costs for the project $US3.6 billion to $US3.8 billion from a previously forecast US$3.3 billion to US$3.5 billion.

First ore is expected in the March 2023 quarter and is slated to produce up to 22 million tonnes per annum of 67 per cent magnetite concentrate product once up and running.