Fortescue Metals awards Thiess major mining contract

Fortescue Metals Group has awarded Thiess a $100 million contract for Phase One development works on the Solomon Hub iron ore mine in Western Australia’s Pilbara region.

The work will prepare the Solomon area for long term mining operations and is expected to take 18 months to complete.  Work will include initial pioneering and mine establishment such as haul roads, stockpile pads and the mining of early ore and waste.

Whilst Thiess has long term contracts for its Construction and Services businesses, the Fortescue contract is the first in some time for Thiess’ mining business in Western Australia.  Thiess has since re-established a mining office in Perth to support this and other mining projects.

The contract win means Thiess is now well positioned to bid for further works on the mine development and the main services contract which commences in approximately 12 months, providing extended work opportunities.

Thiess is currently mobilising people – mainly trades and operators - and equipment to Solomon and commencing preliminary works on-site.

The Solomon Hub mine is part of Fortescue’s Three Hub Strategy in the Pilbara, which will see overall annual production boosted to in excess of 155 million tonnes over the coming years. The Solomon Hub mine is expected to start producing iron ore in 2012.