Emerging Australian iron ore miner BC Iron Limited has announced that it has awarded its second series of major construction and services contracts for the Nullagine iron ore joint venture (BC Iron - 50 percent/Fortescue Metals Group - 50 percent) in Western Australia's east Pilbara region.
The contracts, worth in excess of $300 million, include the mining-crushing-screening contract and the contract for the construction of a 55 km dedicated haul road from the joint venture's Nullagine operations to Fortescue's Christmas Creek rail line. Work on the haul road is scheduled to commence in June and be completed prior to Christmas this year.
The mining contract commences in September this year. The contract is for an initial five-year term with production commencing at around 3 million mt per year and ramping up to 5 million per year during the contract.
Both of the contracts have been awarded to Australian construction, civil engineering and mining company Watpac Limited.
As SteelOrbis previously reported, subject to final environmental and regulatory approvals, production is scheduled to start in the second half of 2010.