Fortescue Metals Group has signed a $ 150 million crane service contract with Monadelphous and extended its drilling and construction contract with Vysarn at its Western Australian iron ore operations.
Monadelphous has worked with Fortescue on its Solomon operations since 2017 and with the Eliwana operations since last year
With the latest order, the engineering firm will perform general crane repair, maintenance and shutdown activities for Fortescue in all operations in the Pilbara region.
Monadelphous executive director Rob Velletri said the deal further strengthened the relationship between the two companies.
“We are pleased to have entered into this long-term contract with Fortescue and look forward to continuing to support their operations in the Pilbara by continuing to provide high quality crane services,” said Velletri.
The Solomon and Eliwana mines are 140 kilometers apart and supply Fortescue with the Fortescue mix – a combination of low cost Firetail ore with higher iron content and Chichester ore with lower phosphorus content.
The contract comes into existence after Monadelphous’ annual report shows a 15.9 percent decline in sales for the maintenance and industrial services business.
Meanwhile, Fortescue has extended its hydrogeological drilling and construction contract with Vysarn to 36 months, with the option of a two year extension.
The original contract, signed in November 2019, included a 24-month contract with a one-year extension option.
The change was made by Vysarn’s wholly owned subsidiary Pentium Hydro and will continue to be made at four Fortescue locations in the Pilbara.
These include the Solomon and Eliwana operations and the Cloudbreak and Christmas Creek mine locations.
The amendment also added a provision for a two-pipe flooded reverse drilling rig, which is expected to be deployed in April.