NRW wins $137m Rio contract

Shares in NRW Holdings have closed trade up 10.65 per cent, after it secured an earthworks contract at Rio Tinto’s $3.5 billion Koodaideri iron ore project in the Pilbara.

The contract, which NRW said is worth at least $137 million, will encompass 70 weeks’ worth of work, and commence from August.

The works will have a peak workforce of 300.

The scope of the contract includes the construction of approximately 73 kilometres of new rail embankment, a new 44 kilometre mine access road and associated road works along the Koodaideri rail alignment.

NRW chief executive Jules Pemberton said he was delighted that NRW was awarded the contract.

“NRW has a long history of civil construction expertise in the Pilbara and has been involved in the successful delivery of numerous greenfield and brownfield projects for Rio Tinto since 2002,” he said.

“Since then NRW has also constructed more than 900 kilometres of rail formation across the Pilbara providing work for thousands of Australians and supporting local industries, traditional landowners and suppliers.”

Last month, Rio awarded Worley a contract to perform engineering, procurement and construction management services.

In January, NRW secured a $65 million civil works contract at Koodaideri mine.

The works will run for 11 months from April, and will require 175 employees at its peak.

Shares in NRW closed trade at $2.91, making it the biggest mover among the ASX200.