Samsung C&T takes over Forge contract at Roy Hill mine

Lead contractor at Gina Rinehart’s Roy Hill mine, Samsung C&T, has announced it will take over the work left by the collapsed Forge Group.

The announcement comes just months after Forge and Spanish firm Duro Felguera were awarded a $1.47bn contract by Samsung to provide engineering, procurement and construction services at Roy Hill.

The joint venture was scrapped earlier this month when Forge went into administration.

Yesterday Samsung said it would take over the scope of work left by Forge and engage "more experienced and sound local contractors".

"After the insolvency of Forge Group, Samsung C&T has been working with the client Roy Hill closely and co-operatively and resumed the civil works promptly," Samsung said.

"Critical progress is under control and the rail and port packages are under smooth progress as scheduled."

The company said it was confident the mine would produce first ore in September 2015 as work ramps up at the $10 billion project.

The project includes a new 55 million tonne per annum iron ore mine, 344 kilometres of railway and a new port at Port Hedland.

Roy Hill Holdings is 70 per cent-owned by Rinehart's Hancock Prospecting. Selling off 30 per cent of the project last year, the remainder is now owned by South Korea's Posco, Japan's Marubeni and Taiwan's China Steel Corporation.

Analysts predict the mine has the potential to add 7 per cent to Australian iron ore supply.

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