Fortescue awards $650m Solomon contract extension to Thiess

Image: Fortescue Metals Group.

Iron ore miner Fortescue Metals Group has extended its mining services contract with Thiess at the Solomon Hub in the Pilbara region of Western Australia.

The contract extension, which is expected to generate $650 million for Thiess, strengthens a relationship at the site between the two companies that started in 2011.

Thiess, CIMIC’s mining services business, will now continue to deliver services at Solomon until 2020, including maintenance of mobile and ancillary plant, autonomy solutions and non-process infrastructure management.

Michael Wright, Thiess managing director, said the mining services provider was thrilled to build on its track record at Solomon.

“Our partnership approach is what will enable mining operations at quartile cash costs, with autonomous solutions and asset management services delivering asset utilisation that is world class,” Wright said.

“This contract is testament to the team’s passion and ability to transform improvement initiatives into innovative solutions that continue to drive long-term client value.”

Solomon, 60km north of Tom Price in the Hamersley Ranges, comprises the Firetail and Kings Valley mines, which together produce around 72 million tonnes of iron ore each year.

CIMIC chief executive officer Adolfo Valderas added: “This contract extension reflects Thiess’ ability to develop strong, flexible and sustainable partnerships with our clients, through value-driven solutions.”

Fortescue last week announced it was planning to convert up to another 12 793F trucks with Caterpillar autonomous haulage technology (AHS) at Solomon Hub.

The miner has deployed Caterpillar AHS at Solomon since 2012 with 56 trucks now operating at the site. According to Fortescue, this move has achieved a 20 per cent improvement in productivity.

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