Monadelphous builds $212m South Flank contract portfolio

Western Australia iron ore. Image: BHP

BHP has awarded a second construction contract at the South Flank iron ore project in the Pilbara, Western Australia to Monadelphous.

The $104 million contract includes structural, mechanical, piping and electrical and instrumentation works for the project’s inflow infrastructure.

Monadelphous now has $212 million of combined construction work at South Flank with the latest award. The contractor was also awarded a $108 million construction works contract for the project last month.

The work under the inflow infrastructure contract is expected to start immediately and is scheduled for completion by March 2021.

Monadelphous managing director Rob Velletri said the award of a second contract at South Flank enabled the contractor to realise efficiency synergies between the two packages of work.

“We are pleased to secure further work on this significant project and look forward to continuing our long track record of successfully working with BHP,” Velletri said.

Monadelphous’ first contract win involves supporting South Flank’s outflow systems by providing structural, mechanical, electrical, piping and instrumentation.

The first contract is expected to create around 400 jobs and will last until May 2021, according to Monadelphous.

BHP’s Western Australian Iron Ore (WAIO) division is developing South Flank to replace production from the ageing Yandi mine.

The miner is targeting first production at the site in 2021, with an initial mine life of at least 25 years.

BHP owns 85 per cent of the project, with Mitsui and ITOCHU splitting the remaining 15 per cent.

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