04/07/2017 - 12:42

Thiess wins $650m Fortescue contract

04/07/2017 - 12:42

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CIMIC Group subsidiary Thiess will continue operating at Fortescue Metals Group’s Solomon hub under a $650 million contract extension awarded today.

Fortescue's Solomon hub in the Hamersley Ranges.

CIMIC Group subsidiary Thiess will continue operating at Fortescue Metals Group’s Solomon hub under a $650 million contract extension awarded today.

Thiess will continue to provide mining services at the Solomon hub in the Hamersley Ranges, which comprises the Firetail and Kings Valley mines, until 2020.

Thiess’s scope of work includes maintenance of mobile and ancillary plant, autonomy solutions and non-process infrastructure management.

The maintenance works on non-processing infrastructure has been sub-contracted to a 50:50 joint venture with Wirlu-Murra Yindjibarndi Enterprises.

“We are thrilled to be extending mining operations at Solomon, building on our track record of delivery for Fortescue Metals Group where we’ve operated since 2011,” Thiess managing director Michael Wright said.

“Our partnership approach is what will enable mining operations at first quartile cash costs, with autonomous solutions and asset management services delivering asset utilisation that is world class.

“This contract is a testament to the team’s passion and ability to transform improvement initiatives into innovative solutions that continue to drive long-term client value.”

Cimic shares were 0.2 per cent higher to $39.03 at midday.

Fortescue shares were 1.4 per cent higher to $5.33 each.

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