Resource Development Group has entered into an agreement with Rio Tinto to be the preferred contractor for its iron ore operations.
A new Panel Contract Agreement gives RDG's subsidiary, Engenium, preferred contractor status for a program of engineering and project delivery services work in the Pilbara over the next two years.
"We are pleased to be working with Rio Tinto as the preferred contractor under this agreement. We have had a very successful working association with the company and this agreement marks another significant milestone in our long term relationship," Engenium's managing director Wayne Peel said.
The new agreement includes the design, engineering, procurement, contract management, project management, and commissioning works associated with Rio's planned sustaining capital and maintenance projects in the Pilbara.
RDG's chief Jeff Brill explained that this contract "provides access to a significant scope of work being undertaken by one of the world's largest mining companies.
"The iron ore operations of Rio Tinto continue to expand, but more importantly, the recent expansions require significant ongoing maintenance."
This agreement comes just hours after Rio awarded Monadelphous a $320 million contract.
According to the company, the construction contract involves structural, mechanical, and piping works for Rio Tinto's Marandoo mine Phase 2 expansion project, which is around 45 kilometres east of its Tom Price mine.
This latest contract is part of Monadelphous' wider framework agreement with Rio for its broader 333 expansion plans to dramatically increase its iron ore output in the Pilbara.