Leighton $2.8 billion Pilbara mining deal | iMINCO

Leighton $2.8 billion Pilbara mining deal

leightons mining jobsLeighton Contracting has been awarded a $1.3 billion contract variation to mine the Kings deposit at the Solomon Hub for Fortescue Metals Group (FMG).

This takes the total value of work under the Chichester Ranges, Solomon Hub agreement to $2.8 billion, the largest single contract award in the history of Leighton.

Pilbara Mining Jobs

In September 2012 Leightons secured the full service, five-year contract (with two-year extension option) to deliver whole-of-mine management at the Pilbara iron ore project. The contract extends Fortescue’s partnership with Leightons following the award in September 2012 of an initial $1.5 billion five-year contract to deliver whole-of- mine management at the nearby Firetail deposit. Fortescue`s decision to award the Kings deposit activates the full scope of the contract.

“We`re pleased with Leighton Contractors` performance at Firetail and we`re delighted to award them the contract at Kings,” Fortescue CEO Nev Power said.

“Our production capacity of 155mpta will be achieved with the completion of Solomon, consolidating our position as one of the world’s largest, low cost producers of iron ore.”

Kings remains under construction but the company today said it is due to come online in the next couple of months.

The contract includes operating and maintaining the open cut mining fleet, mine planning, ore quality control, ore processing facilities and associated infrastructure, such as the airport and village. Fortescue is providing the bulk of the capital to purchase the mining plant and equipment.

“This award is an indication of our strong relationship with Fortescue and our ability to meet the challenges of the project during the ramp up to this phase,” Leighton managing director Craig Laslett said.

“This contract is the result of Leighton Contractors` 30 years of experience in contract mining, mine services and mine management for our clients,” Mr Laslett said.

Soloman Hub

The Solomon Hub, located approximately 60km north of Tom Price in Western Australia, will produce 60 million tonnes of iron ore each year from the Kings and Firetail deposits, and employ more than 1,000 people.

Leighton Contractors and Fortescue will also continue to support commitments to providing opportunities for Indigenous contractors and joint ventures, to further expand Indigenous employment.

Mr Laslett said plans to sub-contract more than $100 million of work at the Solomon Hub to Indigenous organisations were well advanced and Leighton Contractors had committed to ramping up to 20 per cent Indigenous engagement at the project within three years.

Aboriginal employees currently comprise almost 12% of Fortescue’s direct workforce and the company has awarded $651 million worth of contracts to Aboriginal contractors and joint ventures under its “Billion Opportunities” program.

“We believe that we have both an opportunity and a social obligation to support and foster the growth of Indigenous businesses in all of the industries within which we work,” he said.

“In this area our strategy and focus is on training and employment, and assisting Indigenous people, corporations and communities to build successful and sustainable business partnerships.”

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Leighton`s $2.8 billion Pilbara mining deal with Fortescue Metals Group

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