Sodexo to help Rio Tinto with Argyle diamond mine transition

Sodexo will continue to provide services to Rio Tinto’s Argyle diamond mine, in the Kimberley region of Western Australia, after the two companies agreed to renew their contract for another two years.

The move, valued at A$15.4 million ($10.6 million), further cements Sodexo’s commitment to Rio Tinto, which also includes delivering services to the leading global mining group’s Pilbara operations in the state.

Sodexo will work with Rio Tinto as it transitions the iconic diamond mine from a production site into rehabilitation, with the almost 37-year-old mine set to close at the end of 2020.

The contract was signed in November 2019, with the renewed period beginning retrospectively in February 2019. Sodexo is engaged until January 2021.

Sodexo will continue to deliver services to the site in the remote East Kimberley region of Western Australia, including managing aerodrome operations, village and industrial cleaning, village catering, retail, accommodation management, bus services, onsite industrial laundry operations and handyman services, it said.

Darren Hedley, Sodexo CEO of Energy & Resources Asia-Pacific, said: “The renewed contract is a great result for Sodexo, and thanks must go to our dedicated team for their commitment to building a strong relationship with our client, after we acquired Morris Corporation that had previously held the contract for three years.”

One of Sodexo’s recent focuses has been re-energising the site to enhance facilities and provide economic outcomes, thinking beyond standard village operations, it said.

As Argyle moves into its rehabilitation phase, Sodexo will work with Rio on areas including operational consolidation, while engaging with all stakeholders to support this transition, the company added.