VDM subsidiary wins $14.5m Pilbara contracts

VDM Group Ltd subsidiary, Wylie & Skene Pty Ltd, has won new contracts with Rio Tinto Ltd and Fortescue Metals Group Ltd in the Pilbara totalling $14.5 million.

Wykie & Skene have been awarded a design and construction contract for 20 houses in Karratha for Rio Tinto subsidiary, Pilbara Iron, worth $11.5 million.

The contract includes an option for a further 10 houses which would increase the contract to just over $17 million and follows on from an existing contract with this client for 16 houses also in Karratha.

Construction is to commence immediately with about $3 million of works to be concluded this financial year and the balance in fiscal 2009.

Wylie & Skene has also secured a $3 million contract to build a warehouse facility for Fortescue Mining Group contractors, Gulf Transport, at FMG's Cloudbreak minesite.

The project for FMG includes heavy vehicle maintenance facilities and administration buildings and a ROM reinforced earth wall. The contract will be completed this current financial year.

VDM chief operating officer of construction Mark Nagle said it was pleased to extend its relationship with Rio Tinto for whom it had constructed workshops, warehouses, medical centres, laboratories and over 200 houses over a 30 year period, and similarly seeing the beginning of a long term relationship with FMG.