Fortescue Metals Group has handed out new work to Monadelphous Group and Pentium Hydro at its iron ore operations in the Pilbara of Western Australia.
Engineering company Monadelphous has secured a new five-year crane services contract, valued at around A$150 million ($117 million), with the miner.
The contract is for the provision of crane services supporting general repairs, maintenance and shutdown activities at Fortescue’s Solomon (pictured) and Eliwana operations.
Monadelphous has provided crane services to Fortescue’s Solomon operations since 2017 and, last year, expanded those services to Fortescue’s Eliwana operations.
Vysarn Ltd subsidiary Pentium Hydro, meanwhile, advises that it has amended, via a Deed of Amendment, the agreement for hydrogeological borefield drilling and construction services with Fortescue’s wholly owned Chichester Metals Pty Ltd and FMG Solomon Pty Ltd subsidiaries, previously announced in November 2019.
This amendment will see the term of its contract increased to 36 months, with the option of a two-year extension exercisable by Fortescue. The scope of work has also been amended to include the provision of dual tube flooded reverse drilling services, with an additional drill rig expected to be deployed by April.
At the same time, the companies have amended the revenue model for the contract.
Revenue from works in the original contract was based on key performance indicators for a number of production and monitoring bores and was subject to metres drilled and drill rates. Revenue from works will now be based on a combination of day rates and a schedule of hourly rates, Vysarn said.