Rio Tinto awards $100m Amrun power station contract to Aggreko

Activities at Amrun. Image: Rio Tinto

Rio Tinto has awarded Aggreko AusPac a contract to build and operate a 20MW power station at the $2.6 billion Amrun bauxite project in North Queensland.

The $100 million contract involves installation of a high-efficiency diesel power system, including engine efficiency upgrades and a heat-recovery system to be deployed over the duration of the contract.

It will be Aggreko AusPac’s longest independent power project (IPP), with a 15-year term and a five-year option to extend.

A team of more than 20 Aggreko employees including engineers, project managers and technicians will deliver the installation by December 2017, with the station to go live in April 2018.

Rio Tinto Amrun general manager Marcia Hanrahan commented: “The contract to build this power station signifies another important milestone for delivery of the Amrun project.”

Amrun, which involves the construction of a bauxite mine, processing and port facilities, is about 40km south of Rio’s East Weipa and Andoom mines on the Cape York Peninsula in North Queensland.

Production and shipping are expected to launch in the first half of 2019, ramping up to full production by the end of the year.

Construction of the project is expected to provide employment for around 1100 people. Once operational, Amrun will help to support ongoing employment for the existing workforce of around 1400 employees and contractors at Rio’s Cape York bauxite operations.

In March, Rio announced that more than $900 million worth of contracts had been awarded to Queensland suppliers during the continued development of the project.

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