Downer EDI has won a contract from Fortescue Metals Group to provide early mining and maintenance services at the Eliwana iron ore mine.
Valued at around A$450m ($294.2m), the 5-year contract is the second Eliwana project package to be executed by Downer.
Locate in the Pilbara region of Western Australia, the Eliwana iron ore and rail project is being developed by Fortescue Metals Group with an investment of A$1.27bn (£950m).
Over its anticipated mine life of 20 years, the Eliwana project is estimated to have an annual production rate of 170 million tonnes (Mt).
The project involves the construction of an open-pit mine, a dry ore processing facility with a capacity of 30Mtpa, and a 143km rail line.
Downer will complete early works operations at the Eliwana mine site
Under the contract, Downer will complete early works operations over a period of two years as the mine site is established.
After the initial two-year term, the Eliwana operations will transition to Fortescue’s autonomous mining fleets.
Following that, Downer will remain at the site and offer maintenance services for a further three years.
Downer CEO Grant Fenn said: “Downer has a long-standing relationship with Fortescue and we are very pleased to be expanding our services.
“We are proud to be supporting the development of the Western Hub and the communities that will benefit from the mine.”
In June last year, Fortescue Metals Group had broken ground on the Eliwana project and the first iron ore from it is expected to be produced in December 2020.
The Eliwana project is expected to create 1,100 construction and 650 operational jobs.
Employing nearly 56,000 people across more than 300 sites, Downer is the major provider of integrated services in Australia and New Zealand.
