SRG Global has locked in a $55 million infrastructure contract with Fortescue at the Eliwana iron ore mine in WA.
The company provides asset maintenance and industrial services in the mining and construction sector.
This latest contract covers the construction of a 21km haul road for Eliwana mine’s autonomous truck fleet.
The contract will commence this month with a nine-month duration.
SRG Global managing director, David Macgeorge, said the company was pleased to extend its longstanding relationship with Fortescue.
“We look forward to delivering these works for Fortescue in addition to the asset maintenance works we are performing across a number of Fortescue’s site locations,” he said.
“SRG Global’s success in expanding our service offering to existing clients positions us well for long-term sustainable growth as we continue to convert our strong pipeline of opportunities.”
SRG Global’s share price rose by 3 per cent following the announcement.
Eliwana is Fortescue’s newest mine, which commenced operations at the end of 2020 in the Pilbara region of WA. The site has a 30 million tonnes per annum dry ore processing plant and 143km of railway for transporting ore.
The development set Fortescue back around $1.9 billion.
Looking elsewhere, another of Fortescue’s iron ore projects – Belinga mine in West Africa – is expected to start mining in the second half of the year.
The joint venture between Fortescue and Ivindo Iron SA is located in north-east Gabon and has worked to open growth opportunities for Fortescue throughout Africa.
“Geological mapping and sampling programs have confirmed our initial thoughts that this new West African iron ore hub may well one day prove to be among the largest in the world,” Fortescue founder and executive chairman Andrew Forrest said.