Monadelphous wins Rio water contracts

 Monadelphous has won contracts for Rio Tinto’s water supply system in the Pilbara, as well as work with Chevron Australia.

The first contract is for Rio Tinto’s Coastal Waters Project at the Bungaroo Valley in the Pilbara.

It will see the contractor construct and install a potable water supply system that will deliver 10 gigalitres of potable water annually from the Bungaroo Valley to the West Pilbara Supply Scheme at Millstream.

The system includes a bore field, around 15 kilometres of collector main and 87 kilometres of transfer pipeline and a transfer pump station.

This contract is part of Rio’s $300 million investment to ensure a water supply for its operations in the region.

Under its proposal Rio will give up its current priority entitlements to the Millstream water supply, and in return the Government of Western Australia has agreed to amendments to its secondary processing obligations.

Sam Walsh, Rio’s iron ore chief executive said “the decision is a major boost to our operational capability and an important investment to support our Pilbara expansion. We will ensure the future reliability of our water supply without any interruption to current operations.

Work is expected to begin in the first quarter of this year, and is scheduled for completion in the first half of 2013.

Its second contract, awarded by Chevron, is for the preparation and construction of a CO2 injection pipeline and well sites at the Gorgon gas project on Barrow Island.

The two contracts are worth approximately $180 million.


To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.