Downer gets A$500m Roy Hill contract

18th November 2013 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Project house Downer has been awarded a A$500-million contract for early mining services at the Roy Hill opencut iron-ore mine, in the Pilbara.

Downer would perform the prestrip and supplementary mining activity over an initial four-and-a-half years, while Roy Hill Iron Ore would predominantly undertake mining on an owner/operator basis.

The contract would be executed by the end of November.

Downer said the contract would start with infrastructure construction early in 2014, before proceeding to full-scale mining in the second half of the year.

The Roy Hill mine would produce 55-million tons a year, with production set for 2015. The project would involve a fleet of 18 haul trucks and two excavators, and would employ about 220 people.