Rio contracts Decmil for $30m

Decmil Group has secured further work at Rio Tinto’s Robe Valley operations in the Pilbara to supply heavy and light vehicle facilities.

It follows an $8.7 million contract awarded to Decmil in October for work at Robe Valley's Mesa A iron ore site, where the Osborne Park-based contractor is currently building a laboratory.

The lab is expected to be finalised by August next year.

Under a new $30 million contract, Decmil will supply heavy and light vehicle facilities at the hub's Mesa J site, where it was first contracted by Rio in 1999.

The work includes designing and building a laydown area, along with a mobile equipment maintenance workshop and heavy and light vehicle tyre change facilities.

Decmil will also supply a new heavy vehicle wash facility and bulk lube storage unit after deconstructing the existing facilities.

Work is expected to complete by the end of next year.

Chief executive Dickie Dique said Decmil had capitalised on a buoyant iron ore market, with the contractor having secured $41 million in work at Fortescue Metals Group’s Iron Bridge magnetite project in September.

“This validates our enhanced strategic focus on utilising our core capabilities to target a significant tender pipeline with blue chip customers in the resources sector,” he said.

The Robe Valley hub is located about 140 kilometres south-west of Karratha, where Rio is upgrading and expanding its operations.

Rio owns a 53 per cent operating interest in Robe Valley, while Mitsui Iron Ore Development owns 33 per cent and Nippon Steel Australia 14 per cent.