PERTH (miningweekly.com) – Project house Decmil Group has been awarded some A$71-million worth of contracts at the proposed Roy Hill iron-ore operation, being developed by Hancock Prospecting.
Decmil has been selected to design and construct the rail and port facilities for the Roy Hill operation, along with the associated infrastructure to service the project.
Design has started, Decmil said, with on-site delivery subject to project financing.
The rail non-process infrastructure buildings and associated services works package, worth A$56.6-million, consisted of the design and construction of rail terminal buildings, including a rolling stock workshop, wheel lathe building, loco washdown, warehouse and lay-down areas.
The port non-process infrastructure building and associated services package, worth A$14.5-million, includes the design and construction of port landside facilities, including workshops, storage areas and external cold rooms.
Work on both projects was likely to start in 2014, Decmil said.
Production at Roy Hill had previously been delayed from 2014 to mid-2015, as potential lenders continued to assess the project.
The project is 70% owned by billionaire Gina Rinehart's Hancock Prospecting, and 30% owned by a consortium led by South Korean steel giant Posco, with Japanese trading company Marubeni, South Korea's STX Corp and Taiwan's China Steel.
Roy Hill was expected to produce some 55-million tons a year of iron-ore, and would have a dedicated 344 km railway line. Watroba noted that, to date, Hancock and its project partners had spent some $1-billion on developing the project.