Sinclair Knight Merz (SKM) has signed a renewed agreement with Rio Tinto for Engineering, Procurement and Construction Management (EPCM) services for the delivery of iron ore projects in the Pilbara region of Western Australia.
The renewed agreement extends SKM's term through to mid 2015, by which time, SKM will have been providing EPCM services to Rio Tinto on a continuous basis for over 15 years.
"During this time, SKM has supported Rio Tinto’s growth by increasing its Pilbara iron ore shipping capacity from 100 million tonnes per annum (Mtpa) in 2000, to the current capacity of 230Mtpa. At present, SKM is supporting Rio Tinto to increase shipping capacity to 353Mtpa by 2015," said SKM General Manager – Mining and Metals, Phil Lory.
Under the renewed agreement, SKM has been awarded a contract for EPCM services for the second phase of Rio Tinto's Cape Lambert Port B project – one of the largest resource projects ever undertaken in Australia, involving the development of a new iron ore port facility adjacent to the existing Cape Lambert Port A facility.
This award follows the award to SKM in early 2011 to provide EPCM services for the first phase of the project.
The Cape Lambert Port B project will provide additional iron ore shipping capacity of 123Mtpa, increasing Rio Tinto's total port capacity from 230Mtpa to 353Mtpa.
Cape Lambert Port B is being delivered in two overlapping phases of 53Mtpa and 70Mtpa, with the first major milestone for the project (283Mtpa) expected to be achieved by Q4 2013, and the 353Mtpa milestone to be achieved in 2015.
SKM currently has over 500 personnel engaged on Cape Lambert Port B between project, site and remote offices.