NRW has announced it has been selected by Fortescue Metals Group (FMG) as the preferred contractor to deliver the Stage 1 earthworks, roadworks and drainage works of
Fortescue’s Eliwana Rail Project. Fortescue and NRW will move to finalise outstanding matters prior to formal contract execution. The project value is circa A$57 million. NRW will utilise its existing civil construction fleet for the project.
Highlights of the overall mine and rail project include:
• Estimated capital cost of $1.275 billion
• 143 km of rail, a new 30 Mt/y dry ore processing facility (OPF) and infrastructure
• Production commences December 2020 with a life of mine strip ratio of 1.1
• Underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of FY19
• Financed from operating cashflows at a capital intensity of A$42/t
In May 2018, Fortescue’s Chief Executive Officer, Elizabeth Gaines said: “Development of the Eliwana project will maintain Fortescue’s low cost status, providing us with greater flexibility to capitalise on market dynamics while maintaining a minimum 170 Mt/y production rate over 20 years.”