Transport & Logistics

Downer wins $100m BHP contracts

31 Jan 2014, by Informa Insights

Downer EDI Mining has finalised two contracts with BHP Billiton totalling $100 million for rail engineering and shiploader projects.

The deals will see the contractor carry out work on BHP’s iron ore operations in Western Australia. One contract, worth $40 million, will involve the design and construction of rail works at the resource giant’s ore car repair workshop.

This will include implementing a signalling and communications system and the delivery of new track equipment rooms, new cables and routes.

Downer EDI also confirmed it will be working on BHP’s Shiploader 1 and 2 project, which encompasses upgrading two conveyors at Nelson Point in Port Hedland and the deconstruction of existing shiploaders.

BHP announced in November last year that US$301 million (AU$342 million) would go towards developing its inner port facilities.

The projects are due to be completed in early 2015.

The BHP Billiton contracts are the latest in a number of high-profile deals Downer has clinched in recent months. In November, the contractor revealed it received notice of award for a 4.5-year contract with Roy Hill Iron Ore.

Valued at around $500 million, the arrangement will see the company provide a range of early mining services at the Pilbara-based project. Work will include drill and blast operations, as well as the hauling of ore overburdens.

“Downer received the notice of award based on its strong capabilities, comprehensive services and its expanding presence in Western Australia,” said the organisation’s CEO Grant Fenn.

Rail_Multi-Disciplinary_Engineering_Workshop_P14GT07WEBPDF-1Other WA jobs on the company’s books include an $80 million contract for electrical work on the Yandi Sustaining project.

This will involve undertaking the electrical and instrumentation component of new process infrastructure being implemented at the site’s Junction South West and Junction South East.

Due to be completed in 2015, the work is part of a deal with Hamersley Iron, which is a subsidiary of Rio Tinto

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