Rio Tinto awards $160 mln worth Amrun bauxite contracts to Civmec

Developmental work at Rio Tinto's Amrun bauxite project is gathering pace. The global metals and mining giant has awarded a $160 million worth works contract for the $2.6 billion worth bauxite project in North Queensland's Weipa to Civmec. The construction firm will build a bauxite processing facility including bauxite beneficiation plant and associated water, electrical and lighting systems and shiploader at the site near Cape York Peninsula.

The Amrun bauxite project will also see Civmec mobilising 11,800 tonnes of Australian steel and precast concrete from its manufacturing facilities in Newcastle, New South Wales and Henderson, Western Australia to the site.

According to the company sources, construction of the facilities is scheduled to start immediately and will see completion around 2018 end. The first bauxite from the project is expected to be shipped in the first half of 2019.

Stephen McIntosh , who is a growth and innovation group executive at Rio Tinto, said the Amrun bauxite project was an example of the mining company partnering with local vendors to create jobs and greater benefits for the economy.

“More than 500 Australian businesses have been engaged to date on Amrun, both directly and indirectly via contractors,” Mr McIntosh said.

The bauxite project which achieved Rio Tinto's approval in late 2015 will provide employment for about 1100 people in Queensland, Australia.

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Civmec also bagged a second contract including the part supply, fabrication, surface treatment, mechanical and electrical install and modularisation of a stacker, reclaimer and shiploader for bauxite material handling at the Amrun project.

Civmec chief executive officer, Patrick Tallon said the contracts would not only create jobs but would also provide a boost to the Australian economy.

“These awards demonstrate that Civmec, as a leading heavy engineering constructor, has bridged the gap between the Australian and overseas fabrication options,” Tallon said, “With our high quality, schedule assurance and price competitiveness, Rio Tinto has acknowledged that a local delivery is the best option for this important Australian project.”