Southern Cross win Rio Tinto electrical contract

Southern Cross Electrical Engineering has won a power supply contract for Rio Tinto’s Coastal Water Project.

The contract consists of a 37 kilometre overhead power line in Pannawonica and is part of Rio infrastructure development for a sustainable water supply for its iron ore operations in the Pilbara.

It is worth approximately $17 million.

Work will begin in July and scheduled for completion in February next year.

South Cross managing director Simon High said this contract, along with its recent Cape Lambert Port 433kV overhead line provides solid work for the company for the next nine months.

Monadelphous also recently won contracts for the construction of Rio’s water supply system for its Coast Waters Project.

It will construct and install a potable water supply system that will deliver 10 gigalitres of potable water annually from the Bungaroo Valley to the West Pilbara Supply Scheme at Millstream.

The system includes a bore field, around 15 kilometres of collector main and 87 kilometres of transfer pipeline and a transfer pump station.

This contract is part of Rio’s $300 million investment to ensure a water supply for its operations in the region.

Under its proposal Rio will give up its current priority entitlements to the Millstream water supply, and in return the Government of Western Australia has agreed to amendments to its secondary processing obligations.

Sam Walsh, Rio’s iron ore chief executive said “the decision is a major boost to our operational capability and an important investment to support our Pilbara expansion. We will ensure the future reliability of our water supply without any interruption to current operations.

Work is expected to begin in the first quarter of this year, and is scheduled for completion in the first half of 2013.

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