Worley Parsons wins $92.5 million iron ore contract

WorleyParsons has won a $92.5 million contract for the development of the Kami Iron Ore project in Canada.

The contract is for the engineering, procurement and construction management with the Alderon Iron Ore Corporation and the Kami Mine Limited Partnership.

Production is scheduled to begin in late 2015, a company announcement said. The mine life is expected to be 30 years.

“We are pleased that the Alderon team has chosen WorleyParsons for the development of this world-scale iron ore project. This contract builds upon the successful and important relationship we have developed with Alderon,” the company’s CEO Andrew Wood said.

The Kami mine site is next to the Canadian mining towns of Wabush and Labrador City in Quebec.

Kami’s first phase will produce eight million tonnes of high-grade ore per year, averaging 65.2 per cent iron, according to Alderon. The capital cost is expected to be $US1.27 billion ($1.24 billion), and this excludes sustaining capital. Operating costs are expected to be $US42.17 million ($43.44 million).

Worley Parsons was awarded a $65 million contract for a concentrator at a Mongolian copper molybdenum mine in March last year.

The contract was for the delivery of the Tsagaan Suvarga concentrator project for the Mongolyn Alt Corporation (MAK).

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