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Fortescue Metals Group Limited (ASX:FMG) has consolidated the mining services at it’s Christmas Creek site into a single contract and awarded it to Downer EDI Limited (ASX:DOW).
The work had previously been shared between Downer and MacMahon Holdings however the amalgamation of the mining services will allow better use of equipment and resources following a two month transition period.
FMG CEO Nev Power said, “This decision allows Fortescue to achieve additional productivity and efficiency gains by bringing the two Christmas Creek mining operations together, significantly reducing mining costs”.
The contract is worth $650 million and will run through to September 2016 with the option for a one year extension.
Fortescue Metals Group Limited (ASX:FMG) produced a net profit of $403.6 million for the half year ended 31st December 2014.
(20min delay)