Engineering company Monadelphous Group says it has been awarded a second construction contract, valued at A$104 million ($74 million), at BHP’s South Flank iron ore project in the Pilbara region of Western Australia.

The contract includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s inflow infrastructure and brings the total value of work secured by Monadelphous on this project to A$212 million, the company said.

The company’s previous contract – awarded last month – includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s outflow infrastructure.

Work under the inflow infrastructure contract is expected to start immediately and be completed by March 2021, according to Monadelphous.

Monadelphous Managing Director, Rob Velletri, said the award of a second contract at South Flank enables Monadelphous to realise efficiency synergies between the two packages of work, and underlined the strength of its long-term relationship with BHP.

BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output. This will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.