Primero secures additional $20m Koodaideri contract

The Koodaideri project. Image: Rio Tinto

Rio Tinto has awarded Primero a material contract extension for the Koodaideri iron ore project in Western Australia.

The award is valued at around $20 million and involves the construction of the Koodaideri airport terminal and other infrastructure.

Primero will deliver the construction works alongside its existing Koodaideri contract that is targeted for completion next year.

The contract is valued at around $150 million in total, and includes an engineering, procurement and construction contract that was awarded to Primero in December last year.

Primero will hire around 180 personnel at the peak of the project, with site construction work already under way.

“It is pleasing to be awarded further core NPI (non process infrastructure) work from such a great project partner and tier 1 client as Rio Tinto,” Primero managing director and chief executive Cameron Henry said.

“We continue to deliver to plan across all major project works and are increasingly optimistic about the operating and growth outlook for the next year and beyond.”

Primero reported that the timing of all its major projects for the 2021 financial year remained largely unaffected by COVID-19.

The company has not experienced any major reduction in scope or contracted works volume for these projects.

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