NRW wins $80m Fortescue contract

NRW Holdings has been tasked with building plant infrastructure at Fortescue Metals Group's Queens Valley project in the Pilbara, subcontracting takeover target Primero Group to complete the works.

It comes one day after a Fortescue-operated train carrying rail ballast collided with a truck, understood to be operated by NRW for works associated with Fortescue's Eliwana operations.

It is reported the truck failed to stop at a temporary crossing.

Chief executive Elizabeth Gaines said the Fortescue train was travelling at slow speed.

"Safety is Fortescue's highest priority and most importantly no one was injured in the incident," Ms Gaines said in a statement.

"We are conducting a full investigation on the cause and key learnings from the incident."

Meanwhile, Fortescue has awarded an $80 million contract to NRW to design and build a primary crushing plant and overland conveyor belt for the Queens project, which forms part of the Solomon Hub.

The hub sits 60 kilometres north of Tom Price where the Andrew Forrest-chaired business plans to expand its iron ore operations.

NRW, which also built a crushing facility at Fortescue’s Cloudbreak mine last year, will complete the works through its RCR Mining Technologies subsidiary, which it acquired from collapsed business RCR Tomlinson for $10 million in 2019.

RCR will work on the project with ASX-listed Primero Group under a $30 million subcontract, while civil construction and earthworks will be completed by NRW’s civil division.

NRW chief executive Jules Pemberton said the contract win was another milestone for the business, which recently announced plans to acquire Primero through a $100 million off-market takeover. It would mark NRW's fifth acquisition.

Primero managing director Cameron Henry previously said the deal was an attractive offer for shareholders.

The subcontract for works at Queens Valley is Primero's second package of works for Fortescue and brings the contractor's order book for the current financial year to $310 million.

"We look forward to once again delivering critical processing infrastructure, for a tier one iron ore client," Mr Henry said.

Shares in Primero closed down 1.2 per cent to trade at 56 cents, and NRW down 1.7 per cent to $2.98.