October 07, 2008

DJ Leighton bags Mesa A iron ore contract from Rio Tinto

Australia's largest construction company Leighton Holdings Ltd announced that its HWE Mining unit has won an AUD 344 million contract to provide mine development services at Rio Tinto Ltd’s Mesa A iron ore operation.

HWE Mining will design and build the ore handling and train loading plant, as well as associated infrastructure, and in addition it will carry out pre strip work to establish the Mesa A operation by late 2009.

The project, located 50 kilometers from Pannawonica in Western Australia state's Pilbara region, is the first major contract to be awarded by Rio Tinto Iron Ore to HWE Mining.

Mr Craig Laslett executive GM of Leighton Contractors Mining Division said the project would provide HWE Mining with a platform from which it hoped to win further work from Rio Tinto.

On completion of the mine development program in late 2009, the Mesa A mine will be operated by Rio Tinto and is expected to produce 25 million tonnes of iron ore a year, Leighton said.