Fortescue Metals Group has signed a $150 million crane services contract with Monadelphous and extended a drilling and construction agreement with Vysarn in the Pilbara, Western Australia.
Monadelphous has partnered with Fortescue at its Solomon operations since 2017, and the Eliwana operations since last year
The latest contract will see the engineering company provide general crane repairs, maintenance and shutdown activities for Fortescue across its operations in the Pilbara region.
Monadelphous managing director Rob Velletri said the contract further strengthened the relationship between the two companies.
“We are pleased to have secured this long-term contract with Fortescue and look forward to continuing to support their operations in the Pilbara with the ongoing provision of quality crane services,” Velletri said.
The Solomon and Eliwana mine operations are 140 kilometres apart and provide Fortescue with the Fortescue blend – a combination of higher iron grade, low cost Firetail ore with low phosphorous Chichester ore.
The contract comes after Monadelphous’ annual report showed a 15.9 per cent decrease in revenue for their maintenance and industrial services division.
Meanwhile, Fortescue has extended its contract with Vysarn for hydrogeological borefield drilling and construction to 36 months, with an option for a two-year extension.
The original contract, signed in November 2019, involved a 24-month contract with a one-year extension option.
The amendment was made by Vysarn’s wholly-owned subsidiary Pentium Hydro and will continue to be carried out at four of Fortescue’s locations across the Pilbara.
These include the Solomon and Eliwana operations, plus the Cloudbreak and Christmas creek mine sites.
The amendment also added a provision for a dual tube flooded reverse drilling rig, with the equipment expecting deployment in April.