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RCR wins $600m EPC contract from Fortescue

Integrated engineering company RCR Tomlinson has received a notice of award for a major EPC contract for Fortescue Metals Group for the Kings Ore Processing Facility and the Firetail Ore Processing Facility at the Solomon Iron Ore Project in Western Australia.

The contract is valued at more than $600 million and will be delivered under a negotiated arrangement with incentives. Work will commence immediately and is scheduled for completion in December 2012.

The scope of work encompasses engineering, procurement, construction and pre-commissioning of Fortescue’s Kings Ore and Firetail Processing Facilities at the Solomon Mine and includes RCR core competencies of structural, mechanical, piping and electrical (“SMPE”) works.

The award is subject to final contract documentation which is expected to be completed before the end of November 2011.

RCR Managing Director, Paul Dalgleish, said that the contract award is a significant milestone for RCR and extends RCR’s existing relationships with Fortescue.

“This contract award follows the recent receipt of equipment orders for apron feeders and belt feeders to RCR’s Mining business by Fortescue for the Solomon Project, totalling $30 million,” noted Dalgleish.

“The contract award reflects RCR’s focus on building strategic relationships and demonstrates our ability to secure larger projects and leverage our intellectual property rich businesses into delivery of turnkey solutions,” said Dalgleish.

[Image courtesy RCR.]

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