Construction Under Way on Rio's Yandicoogina Mine Expansion in Western Australia

---

Researched by Industrial Info Resources Australia (Perth, Australia)--With appointments of most of the major contractors finalized, the construction on Rio Tinto's (NYSE: RIO) Yandicoogina iron ore mine expansion is under way and scheduled for completion by the end of 2014. The Yandicoogina mine is located approximately 80 kilometres northwest of the Western Australian mining town of Newman, in the Pilbara region, and has been operational since 1998.

The mine has undergone multiple expansion projects in the past, the most recent in 2008, in which the total capacity was increased from 36 million metric tons per year to an estimated 52 million metric tons per year. The current expansion should extend the life of the mine until 2021 and increase the total processing capacity to a total of 56 million metric tons per year by installing an additional wet processing plant; a sizer plant; an additional 8,000-ton-per-hour stacker; and the required supporting infrastructure.

The $1.7 billion expansion involves a number of design, engineering and construction firms. Rio appointed Calibre Global (SCT:CXB) in August 2012 as the engineering, procurement and construction (EPC) contractor to oversee the execution of the project, including the appointment of major contractors. NRW Holdings was awarded a $90 million contract that included services such as bulk earthworks, excavation and embankment construction. In a recent announcement in September 2013, Rio awarded the structural, mechanical and piping (SMP) contract to Forge Group (Perth). A smaller construction company, Civmec (Perth), was awarded the miscellaneous site civil works. NRW Holdings has nearly completed its scope of work for the project and is expected to vacate the site by early October. Civmec began its civil works in mid-September, and Forge group expects to commence construction in January 2014.

The Yandi extension project is expected to employ about 800 people during its peak phase, with almost 220 people from Forge Group. The company recently won another $100 million contract on Hancock Prospecting's Roy Hill iron ore project in Pilbara.

View Plant Profile - 1052407
View Project Report - 300096329 86000727

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.