NRW wins $133m Rio Tinto port works

NRW Holdings has announced a $133 million contract win, for works at Rio Tinto’s Cape Lambert port expansion in the Pilbara.

The good news for the contractor comes after a spate of negative announcements, including a decision by Fortescue Metals Group to defer $1.6 billion of capital expenditure in the Pilbara  and lay off 1,000 people, a move that NRW  said would result in a $100 million hit to its revenue.

BHP Billiton had previously decided to halt its $20 billion outer harbour developement.

Rio Tinto has so far stuck to its committed plans. 

The Perth-based contractor said it expected revenue to come in at $1.2 billion for the 2013 financial year in the wake of Fortescue’s announcement, down from previous forecasts of $1.3 billion.

Fortescue announced earlier this week that it was slashing hundreds of jobs across the Pilbara and defering $1.6 billion in capital spending as it scaled back its ambitions to expand production capacity to 155 million tonnes of ore per year.

The scope of works includes conveyor link earthworks, relocation of water pipes and rail formation earthworks.

NRW said the contract would last 48 weeks and support a workforce of 270.

“As with the original contract, these works will be undertaken in joint venture with the Ngarluma and Yindjubarndi Foundation,” NRW said in a statement.

At close of trade today, NRW stocks had lost 0.9 per cent, trading at $2.23.