Primero Group lands contract addition at Rio Tinto’s Koodaideri project

Multi-disciplinary engineering and contracting firm, Primero Group, says it has been awarded a material contract extension to the existing Koodaideri Non-Process Infrastructure (NPI) contract awarded in late 2019 by Rio Tinto.

Under the extension, the company will construct the Koodaideri Airport Terminal and Infrastructure, with the contract valued at around A$20 million ($14 million). This will involve the construction delivery of the works to be completed in parallel with the existing contract programmed for completion in 2021.

The contract value of the entire NPI contract now stands at circa-A$150 million, compared with the A$115 million under the original award. The difference represents additional “options selections” that Rio confirmed and included for implementation at the project earlier this year.

Primero’s workforce on the project will peak at approximately 180 personnel and site construction work is well underway, the company noted.

Construction on Koodaideri Phase 1 started in 2019 with first production expected in late 2021. Once complete, the $2.6 billion mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend, Rio says.

With this recent NPI contract addition, Primero’s financial year 2021 contracted order book now stands at approximately A$220 million, the company said.

Primero Managing Director and CEO, Cameron Henry, said: “It is pleasing to be awarded further core NPI work from such a great project partner and Tier 1 client as Rio Tinto. We continue to deliver to plan across all major project works and are increasingly optimistic about the operating and growth outlook for the next year and beyond.”