Decmil Australia has won a contract extension to help BHP bolster its iron ore operations at the $US3.4 billion ($4.6 billion) South Flank project and Mining Area C in the Pilbara.
The extension includes the upgrade and expansion of the existing Mulla Mulla Village, including refurbishing, relocating and installing 632 additional rooms.
The second stage works also involve the supply and installation of new verandas, as well as internal roads, drainage and concrete footpaths.
Decmil will commence works at Mulla Mulla immediately.
The Mulla Mulla contract is a continuation of a $13 million early works package in August 2017 and a $75 million stage one package awarded by BHP in November 2017. Works at the Mulla Mulla site now total around $153 million.
Meanwhile, South Flank will be one of the world’s largest iron ore operations and is expected to create over 3100 jobs in the region. It will replace output from the ageing Yandi mine, with first production targeted in the 2021 calendar year.
South Flank will contribute to lifting BHP Western Australia Iron Ore (WAIO)’s average iron ore grade from 61 per cent to 62 per cent.
Decmil has previously supported BHP projects including a tailings storage facility at Olympic Dam in South Australia and a nickel mine and processing plant at Ravensthorpe in Western Australia.