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Forge Group JV wins billion dollar Roy Hill minecontract

A joint venture between the Forge Group and Duro Felguera has won a $1.47 billion contract for EPC works at the Roy Hill iron ore mine.

The contract, awarded by Samsung C&T is for the engineering, procurement, and construction work of the processing facility at the Pilbara mine.

According to Forge the value of the contract for them is around $830 million.

The scope of the works include construction of the 55 million tonne per annum iron ore processing plant, all the detailed earthworks, foundations, steelworks, mechanical equipment, plate-work, piping, electrical equipment, instrumentation and controls, cabling, conveyors and in-plant roads.

However full works are on hold until Roy Hill confirms its debt financing position.

Site construction will start in December and are scheduled for completion by September 2015.

At the peak of the project it will employ around 1300 people.

Forge's managing director David Simpson said "the Roy Hill EPC contract is a major development for Forge Group and a vote of confidence in the Australian resources sector".

Simpson went on to say "Roy Hill is Forge's largest single contract to date".

Within the past week Samsung C&T has also awarded $20 million contracts to NRW for the Roy Hill mine's rail earthworks, and given the $23 million 330km heavy haul main line rail contract to the Calibre Group.

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