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fortescue wins key contract for wa mine This baby will move hard soon......

Fortescue wins key contract for WA mine


Iron ore developer Fortescue Metals Group Ltd has signed a key contract to develop the port infrastructure for its $3.7 billion Port Hedland project in Western Australia.

Fortescue awarded the lump sum contract for an undisclosed price to McConnell Dowell, which will design and build the marine structures at Port Hedland.

This is one of the key material contracts for the iron ore mine development, Fortescue said.

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"It represents approximately 10 per cent of the total construction and procurement budget and is one of the largest (in value) project agreements," Fortescue said in a market announcement.

"The contract value has been agreed at the budgeted price thereby maintaining the integrity of the overall project budget."

McConnell Dowell has already been working on the design component of the port under a separate contract, which has now been rolled over into this larger contract.

Work on the site is expected to begin within the next six weeks, with early work at the port site already underway.

Fortescue has also started work on a motel development at South Hedland that will provide 445 rooms for construction workers.

After the project is complete the motel will become a permanent tourist facility for the region.

Another two accommodation villages have been planned along the rail route to the mine.

The project is due to start producing iron ore at the rate of 45 million tonnes a year from early 2008, escalating Fortescue to the number three iron ore miner in Australia.