Downer secures $100m worth of BHP contracts

Contractor Downer EDI Mining has today bagged $100 million worth of BHP Billiton contracts.

Making the announcement this morning Downer said it has secured two contracts for works at BHP’s Western Australian iron ore operations.

The first contract, valued at approximately $40 million is for the design and construction of rail works at BHP’s ore car repair workshop.

Scheduled for completion later this year the scope of works includes implementing the signalling and communications system as well as the construction of new track equipment rooms, new cable and routes.

The second contract, estimated to be worth $60 million is for the company’s shiploader one and two project.

It involves upgrading two conveyors at Nelson Point in Port Hedland as well as deconstructing the existing shiploaders.

Works are due for completion early next year.

BHP announced the new shiploader project in November last year, approving the $US301 million investment to increase the reliability of its inner port facilities.

Last month the miner said it is targeting “capital efficient growth” at its WA operations, looking to increase supply chain capacity to between 260 and 270 million tonnes per annum.

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