SIMPEC to power up FMG’s Eliwana iron ore mine

SIMPEC has been given another assignment at Fortescue Metals Group’s Eliwana iron ore mine and rail project in Western Australia, with a circa-A$5 million ($3.4 million) contract to construct the 25 MW diesel power generation facility at the operation set to keep it busy until July 2020.

The contract, which commences this month, was awarded to the WestStar business by Energy Power Systems. It is SIMPEC’s first full vertical installation package comprising of civil, structural, mechanical, piping, electrical and instrumentation works, the company said.

Under the agreement, SIMPEC will supply (partially), install, test and commission the 25 MW facilities for Eliwana, with the delivery executed over three separable portions.

Back in April, SIMPEC was awarded its largest single contract to date, with ATCO Structures and Logistics granting it a circa-A$10 million contract to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana. The contract was scheduled to commence in the middle of the year and take nine months to complete.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.