https://www.engineeringnews.co.za

Australia's Downer EDI secures $295.7m Eliwana mine contract from Fortescue

26th May 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) - Australia's Downer EDI has secured a A$450-million ($295.70-million) contract from Fortescue Metals Group for early mining and maintenance services at Eliwana iron-ore mine in the Pilbara region of Western Australia, the engineering contractor said on Tuesday.

Fortescue, the world's No. 4 iron-ore miner, approved the development of the $1.28-billion Eliwana mine and rail project in May 2018, in a bid to boost the price for its iron-ore.

Production from the mine is set to start in December 2020 and is expected to yield higher quality ore, which will help Fortescue maintain a 170-million-tonne-a-year production rate for over 20 years.

Downer said this is the second Eliwana project package it would execute, the first being the bulk earthworks contract that commenced in late 2019.

Under the new agreement, Downer will complete early mining operations over two years as the mine site is established and then stay on for a further three years to provide maintenance services as operations transition to Fortescue's autonomous mining fleets.

The contract brings some relief to Downer, which withdrew its fiscal 2020 earnings forecast and deferred payment of an interim dividend in March in the wake of uncertainty surrounding the coronavirus outbreak.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Egoli Gas (Pty) Ltd
Egoli Gas (Pty) Ltd

As a reticulator, Egoli Gas provides natural gas to homes and businesses via underground pipes.

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.054 1.138s - 140pq - 2rq
Subscribe Now