Downer EDI has announced today it has been awarded a 4.5 year contract with Roy Hill Iron Ore Pty Ltd for the provision of early mining services at the Roy Hill open cut iron ore mine in the Pilbara, Western Australia.
Under this contract, Downer will be performing pre-strip and supplementary mining activity over the initial years while Roy Hill will be predominantly undertaking mining on an owner-operator basis. The contract is expected to be executed by the end of November.
Valued at approximately $500 million, the contract is anticipated to commence with infrastructure construction early in the 2014 calendar year before proceeding to full-scale mining in the second half of the year. The services to be provided include drill and blast and load and haul of overburden and ore.
The project will involve a fleet of 18 haul trucks and two excavators, and will employ over 220 people. Capital required for the project will be approximately $110 million – $40 million for new equipment and $70 million provided from existing equipment. Capital will be spent in the 2015 financial year.
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