04/05/2009 - 09:20

NRW, VDM win $240m CITIC port contract

04/05/2009 - 09:20

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A joint venture between NRW Holdings and VDM Group has won a $240 million contract from CITIC Pacific for work at the port area of the Sino iron project at Cape Preston.

A joint venture between NRW Holdings and VDM Group has won a $240 million contract from CITIC Pacific for work at the port area of the Sino iron project at Cape Preston.

The bulk earthworks contract involves drilling, blasting and excavation of more than 6.5 million cubic metres of rock with a portion to be used in the construction of a 3.6 kilometre long breakwater.

Site works are scheduled to start this month and run for around 15 months. Total site-based personnel will peak at nearly 500.

The magnetite iron ore mine, which has a resource of over 2 billion tonnes of iron, is due to start production mid next year.

CITIC plans to export 27 million tonnes of product each year.

Shares in NRW were up 3.5 cents to 81.5c while shares in VDM climbed 4.5c to 30c at 11:09AEST.

 

The announcement is below:

 

NRW Civil & Mining and VDM Contracting Joint Venture Awarded Major Contract

Sino Iron Project Port Area Bulk Earthworks

NRW Civil & Mining (ASX: NWH) is pleased to announce that NRW, in a 50:50 Joint Venture with VDM Group Ltd (ASX: VMG) has been awarded the above contract as part of CITIC Pacific Mining's Sino Iron project located at Cape Preston in the Pilbara region of Western Australia.

The contract, which has an estimated value of $240 million, is part of the major infrastructure requirements for the project. The mine has over 2 billion tonnes of magnetite resource and plans to export 27 million tonnes of product each year.

The JV's contract involves the drilling, blasting and excavation of over 6.5 million cubic metres of rock. Of this volume 2.5 million cubic metres will be used in fill and pavement materials for bulk earthworks in the area, and 4 million cubic metres in the construction of a 3.6km long breakwater.

Site works are scheduled to commence in May 2009 and run for approximately 15 months with total site-based personnel peaking at close to 500.

 

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