Fortescue contracts CIMIC for Iron Bridge

CIMIC Group’s construction business has secured $128 million in new work including with Fortescue Metals Group for its Iron Bridge magnetite project.

Sydney-based CPB Contractors will deliver concrete and complete detailed earthworks for a wet processing plant at Iron Bridge – a joint venture between Fortescue subsidiary FMG Iron Bridge and Formosa Steel.

The $US2.6 billion project will deliver 22 million tonnes of magnetite concentrate per annum, with first shipment scheduled for mid-2022.

Work under the CPB contract will begin this year, scheduled for completion in 2021.

CPB has also been contracted by Sunwater, a Queensland government-owned water service provider, to complete works at Paradise Dam, near Bundaberg.

Work began in May to lower the spillway, with ancillary works to be completed next year.

CPB managing director Diego Zumaquero said the CIMIC subsidiary was recognised for its infrastructure services.

The new work follows $200 million in contracts awarded to CIMIC’s shutdowns and maintenance business, UGL.

CIMIC is currently negotiating a 50 per cent-sale of its mining services division, Thiess, with a UK-based investment firm.

CIMIC was trading 4.2 per cent higher at 11:36am to $23.66 per share. Fortescue shares were up 1.4 per cent to trade at $18.74.