Roy Hill Iron Ore Project, Western Australia

Owners: Hancock Prospecting (70%), POSCO (12.5%, Marubeni Corporation (12.5%), STX Corporation (2.5%), China Steel Corporation (2.5%)

Location: Chichester Ranges

Timeframe: Construction from late 2013-2015, with expected first ore on ship planned for September 2015

Cost: Reported to be approx. $10 billion

Employment: During construction, the workforce will peak at 3,500 people (with a total of 8,500 expected over the life of construction) and it will have an operational manning of around 2,000 personnel.

Status: The Roy Hill project will be a world-class iron ore mine. The deposit is the last of the large low phosphorous ore bodies in Australia outside the control of the majors and is located 120km north-east of Newman in the Pilbara region of Western Australia. The project will consist of: - Mining operation for 55Mtpa hematite iron ore; - Crushing, screening and processing lump and fines products; - Stockpiling and train loading; - A 344km standard gauge, single line, dedicated heavy-haul railway from the mine site to Port Hedland; - Port facility located at Port Hedland for receiving, stockpiling, screening; - Exporting 55Mtpa (wet) of direct shipped hematite iron ore as lump and fines products; and - An Integrated Corporate Headquarters and Remote Operations Centre in Perth.

A new 344-kilometre heavy haul railway will be constructed to link the mine and port, with new ore handling facilities, an ore stockyard, and two berths developed at Port Hedland. Early works have already been completed or are well advanced, including:

• port dredging
• internal mine roads, a 2.5-km sealed airstrip, and 2,200 bed permanent accommodation village
• four rail construction villages each holding 300 beds
• a 1,200 bed permanent village in Port Hedland
• a $50M integrated corporate headquarters and remote operations centre based in Perth.

Awarded Contracts and Employment Opportunities include:

• Parsons Brinckerhoff; has signed an initial contract in March 2013 as the Project Management Consultant (PMC) for Roy Hill Holdings.
• ISS Facility Services Australia Ltd; provision of camp management services, including catering, accommodation and transportation services.
• Brookfield Multiplex; will build the permanent accommodation village at the mine site.
• BGC Contracting; won construction contracts to build the aerodrome, airport roads, and village roads and is expected to generate 4,000 jobs during the construction phase.
• Compass; has won the contract for construction of the Port Accommodation.
• Perkins Builders; has been appointed to build Roy Hill’s state of the art corporate headquarters and remote operations centre near Perth international airport.
• Kerman Contracting; is constructing the four rail camps.
• Matthews Drilling; water drilling.
• Medicals; Aspen Medical.
• Ausdrill; Geotechnical bulk sample exploration.
• Scope Australia; Area buildings and facilities.
• Ausco Modular; constructing and providing the rail camp and ancillary buildings on site.
• Monadelphous; awarded on 25 February 2013, the contract is for the supply and installation of structural, mechanical, piping, electrical and instrumentation works for the construction of the Western Turner Brockman iron ore plant. Work is scheduled to be completed in the fourth quarter of 2013. The contract will require structural, mechanical, piping, electrical and instrumentation engineering and trades.
• Decmil; will design and construct rail and port facilities along with associated infrastructure to service the project.  The $71m contract was awarded in April 2013 and work is due to commence in 2014 pending Final Investment Decision.
• NRW; awarded a $67 million contract in May 2013 to complete earthworks and piping at the mine.