A new milestone has been reached on Fortescue Metals Group’s (FMG) $1.69 billion Eliwana iron ore project in Western Australia’s Pilbara region with NRW Holdings being appointed as the contractor to deliver Stage One of the rail component of the project.
NRW’s scope of works under the $57 million contract will include the delivery of earthworks, road works and drainage works as part of the first stage of the Eliwana rail project.
FMG’s board gave the go ahead to the development of the Eliwana iron ore mine and rail projects in May 2018. The project will comprise of a 143-kilometre rail and a 30Mtpa dry ore processing facility and infrastructure.
With this project, FMG is set to underpin the introduction to market of a 60 per cent iron grade product as well as allow the company to maintain a low cost status and provide “greater flexibility”. The Eliwana project will also help maintain a minimum 170Mtpa production rate over a period of 20 years.
On a previous statement, FMG said that the project is expected to create up to 1,900 jobs during construction and a further 500 full time jobs once Eliwana is operational.
Production at Eliwana is anticipated to commence in 2020.
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Source: Australian Mining; The West Australian; International Mining