RCR, Laing win $150m BHP iron contract

26 May 2009 | 04:37 Code : 19189 Geoscience events
RCR Tomlinson, in joint venture with Laing O’Rourke, is the latest compan...

RCR Tomlinson, in joint venture with Laing O’Rourke, is the latest company to be awarded work within BHP Billiton’s Pilbara iron ore expansion efforts, securing a $150 million contract. The JV will undertake the design and construction of primary and secondary crushing facilities as part of the miner’s Rapid Growth Project 5. RCR today said design work will start immediately with construction scheduled for completion in the first quarter of 2011. It is the second BHP iron ore contract for Laing O’Rourke, which last month secured a $200 million rail duplication contract as part of a JV with NRW Holdings. Meantime, Paul Dalgleish has today started his appointment at RCR’s new chief executive. He takes over from John Noordhoek who will assume chief operating officer responsibilities.The announcement is below: RCR Tomlinson Ltd (ASX: RCR), together with joint venture partner Laing O’Rourke, is pleased to announce that a contract has been received from BHP Billiton Iron Ore, for the design and construction of primary and secondary crushing facilities including overland conveyors. The contract is associated with BHP Billiton Iron Ore’s Rapid Growth Project 5 in the Pilbara and is valued at approximately $150 million. Design work will commence immediately with construction completion scheduled for the first quarter 2011. The contract will be carried out by LORRCRPT, a 68/32 joint venture between Laing O’Rourke Australia Construction Pty Limited, RCR Engineering Pty Ltd and Positron Trident Pty Ltd. RCR Chief Executive Officer, Mr John Noordhoek, said that the contract award was a significant result for the joint venture. "This contract is a great outcome and is a credit to the joint venture team," said Mr Noordhoek. "It is particularly pleasing that we have been given the opportunity to showcase our capabilities on a significant resource development project with BHP Billiton." "This announcement, together with the recent signing of a strategic supply agreement with BHP Billiton Iron Ore for the supply of apron feeders for the next 5 years on new projects, provides the opportunity to continue to strengthen our valued relationship with BHP Billiton Iron Ore," said Mr Noordhoek. Mr Noordhoek stated that RCR has undertaken work previously for BHP Billiton Iron Ore. "RCR, together with our joint venture partner, offers a turnkey design and construct option that includes civil, mechanical and electrical/instrumentation. "Our ability to continue winning new work from blue chip clients in the current climate is a testament to the strength and quality of our broad product and service offering," said Mr Noordhoek.The Engineering and Positron business units will begin work on the bulk of the proposed contract from July 2009, following immediate commencement of the initial design phase

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