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Power company wins $48m mining contract

ABB has won a $48 million contract to supply equipment and construction for power projects to help the Rio Tinto mining group keep up with worldwide iorn ore demand.

ABB will supply turnkey, high-voltage substations to enable Rio Tinto in increase production at its iron-ore mines in the Pilbara region of Western Australia from 163 million tonnes to 220 million tonnes annually.

The projects were awarded under a preferred supplier frame agreement between ABB and Rio Tinto which covers electrification relating to Rio Tinto’s power systems upgrade in the Pilbara region, said a notice distributed to the media from ABB.

The projects are for the turnkey construction of a 220kV switching station at the Seven Mile power station and a 220/33kV bulk supply substation at Cape Lambert. These are the first of eight projects to be awarded by Rio Tinto in connection with its power systems upgrade in Pilbara.

“We are very pleased that Rio Tinto has chosen ABB as their partner for this major power systems upgrade,” said ABB power systems division head, Roland Vitelli.

“Rio Tinto is an important customer for ABB and our track record of past contract deliveries, coupled with technology innovation, systems expertise and reduced delivery times has built a relationship of trust. Through this we are now able to help Rio Tinto achieve its goals of increased mining capacity.”

The projects are for the turnkey construction of a 220-kilovolt (kV) switching station at the Seven Mile power station and a 220/33kV bulk supply substation at Cape Lambert. These are the first of eight projects to be awarded by Rio Tinto in connection with its power systems upgrade in the Pilbara region.

The current order includes all design, equipment, civil and electrical works, and project management. The installations are expected to be operational by the end of 2009, according to ABB.

ABB will also supply power transformers, instrumentation transformers, disconnectors and a range of high- and medium-voltage switchgear supplied from various ABB factories around the world.

Since 2003, Rio Tinto has committed about $7 billion to upgrading port, rail, power and mine assets in the Pilbara region to increase capacity and capitalise on strong international demand.

For more information, visit ABB Australia’s website on www.abbaustralia.com.au

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