Downer EDI has won a massive $100 million dollar contract with BHP for work on the company’s Western australian port developments.
This is a critical contract (there are 2 contracts) as more and more development money is funneled into WA’s iron ore industry in a bid to increase mining productivity.
As the race to get more iron ore out of the ground intensifies in Western Australia, and other mining companies like Gina Rinehart’s Roy Hill in the Pilbara start to pose a threat to the future hold on the iron ore export market, the big global mining companies are doing what they can to secure a solid future in the industry.
pouring cash into BHP WA mining projects
That means pouring cash into BHP Western Australian mining projects that support the logistical infrastructure projects such as rail links to the remote iron ore mines in the Pilbara.
Hundreds of kilometres of rail lines connect iron ore mines to the coastal loading facilities, with iron ore trains and kilometres of carriages laden with iron ore flowing along the lines every day. Subsequently there is a need for workshop and repair facilities to keep the rolling stock in tip top condition.
Design and construction of rail works – $40 million
One of the contracts worth $40 Million is for the design and construction of rail works at BHP’s repair workshop. This contract focuses on commissioning signalling and communications systems as well as the building new track equipment rooms, new cable and additional routes.
Nelson Point expansion project – $60 million
The other half of the $100 million contract is worth about $60 million and will focus on BHP’s shiploader one and two project. This project was announced in 2013 as the existing shiploaders can not meet capacity requirements at the Nelson Point facility in Port Hedland.
BHP is another Australian mining company with its sights set on targeting ”capital efficient growth”¯ at its WA operations and was looking to increase it’s iron ore production to around 260 and 270 million tonnes per year.
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