Alinta Energy has awarded engineering group UGL a $136 million contract to design and construct a high voltage power system which will supply electricity to the massive Roy Hill iron ore mine.
UGL will design, procure and construct the Newman to Roy Hill high-voltage power system, which is the first stage of Alinta's East Pilbara Link project.
The project includes a 120-kilometre power line, a 220-volt substation at the Newman power station, and a diesel engine power station, electrical distribution system and substation at Roy Hill.
"Alinta looks forward to construction of the transmission line, which is an important milestone for Alinta's future in the Pilbara region, including its contract to supply power to the Roy Hill mine," Alinta executive director power generation Ken Woolley said.
Early works have started on the project, which is expected to be completed by March next year.
Alinta said last week it had entered into negotiations to supply more Pilbara businesses with electricity following the termination of a long-standing state agreement, which restricted its ability to provide power.
The utility said it had initiated the break-up of the deal in order to facilitate a more competitive energy market in the north-west.