Leighton Contractors awarded $1.5 billion contract for mining and operations at Pilbara mine

25 Sep 12

Leighton Contractors Pty Limited has been awarded a $1.5 billion full service, five-year contract – with two-year extension option – to produce 20 million tonnes per annum (Mtpa) of iron ore at the Firetail deposit for Fortescue Metals Group (Fortescue).

Leighton Contractors, through its Mining Division, will deliver whole-of-mine management at the mine, including operating and maintaining the open cut mining fleet, ore handling plants and associated infrastructure.

Firetail forms part of the ‘Solomon Hub’ located approximately 60km north of Tom Price.

Leighton Holdings CEO, Hamish Tyrwhitt, said the Fortescue contract was clear evidence of the Group’s approach to allocating capital strategically and building a platform to deliver long-term sustainable growth.

“Leighton Contractors has worked with Fortescue to negotiate a win-win outcome whereby they provide the bulk of the capital to purchase the mining plant and equipment, and we bring our core competency of contract mining to add value for the client,” said Mr Tyrwhitt.

The Managing Director of Leighton Contractors, Craig Laslett, said the project aligned with the company’s long-term growth strategy.

“It is underpinned by our expertise in iron ore, in which we have mined and processed approximately 500 million tonnes over the last five years,” he said.

“The contract also provides the opportunity to improve efficiencies through the introduction of latest technology into the mining industry.

“Today’s announcement is the culmination of almost a year of collaboration and we’re proud to be an integral part of this important project.”

Mr Laslett added that the contract included a commitment by Leighton Contractors to engage graduates  of Fortescue’s Indigenous training and employment program VTEC, and to support Fortescue’s  commitment to provide opportunities for Aboriginal contractors and joint ventures to further expand Indigenous employment opportunities.