Development of Rio Tinto’s $2.6 billion Amrun bauxite project in North Queensland continues to gather pace following the award of $160 million of contracts to construction company Civmec.
Amrun involves the construction of a bauxite mine, as well as associated processing and port facilities, at the site near Weipa on the Cape York Peninsula.
The contracts will see Civmec build a processing facility, including bauxite beneficiation plant and associated water, electrical and lighting systems. The construction company will supply 11,800 tonnes of Australian steel and precast concrete to the project from its manufacturing facilities in Newcastle, New South Wales and Henderson, Western Australia.
Construction of the facilities will start immediately, with Civmec expected to employ over 500 personnel between its own facilities and the Amrun site. The project is due for completion at the end of 2018.
Civmec has also been awarded a second contract, which includes the part supply, fabrication, surface treatment, mechanical and electrical install and modularisation of a stacker, reclaimer and shiploader for bauxite material handling.
Patrick Tallon, Civmec chief executive officer, said the contracts would create jobs and provide a boost to the Australian economy.
“These awards demonstrate that Civmec, as a leading heavy engineering constructor, has bridged the gap between the Australian and overseas fabrication options,” Tallon said,
“With our high quality, schedule assurance and price competitiveness, Rio Tinto has acknowledged that a local delivery is the best option for this important Australian project.”
Rio Tinto approved the bauxite project, which will provide ongoing employment for about 1100 people, in late 2015. First production is planned for 2019.