Fortescue and Leighton Contractors vary and extend Solomon contract

Apr 2, 2014

Fortescue Metals Group Limited and Leighton Contractors have agreed to modify the scope of works at Fortescue’s Solomon Hub iron ore project.

Under the revised contract, Fortescue will assume full operational responsibility for the two Solomon Hub Ore Processing Facilities (OPFs) and the Train Load Out Facility (TLO). The transition will enable Fortescue to manage all OPFs across its operations and optimise its product portfolio at 155 million tonnes per annum.

Fortescue and Leighton Contractors have worked closely together through the ramp up of the Solomon Hub to achieve the planned 60mtpa run rate during March.

Fortescue Chief Executive Officer Nev Power thanked the Leighton team for their support and said he looked forward to continuing the positive and mutually rewarding relationship.

“Through our strong relationship with Leighton Contractors, we have ramped up the Solomon Hub to achieve a 60mtpa run rate in a little over 12 months,” Mr Power said.

“This is a strategic business decision that recognises ore processing expertise as a core Fortescue skill across the business.”

The revised operating arrangements at the Solomon Hub include the award of a six month extension of the contract to Leighton Contractors and an increase in the scope of other minor works being undertaken. The total contract value remains similar to the original contract award.