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Rio awards Monadelphous $235 million contract

To increase the amount of iron ore that can be shipped from its Cape Lambert Port in Western Australia, Rio Tinto (ASX: RIO) has awarded Monadelphous Group (ASX: MND) a $235 million contract for a number of services.

The contract includes structural mechanical and piping works for the supply and installation of a screenhouse, two car dumpers and associated conveyor and transfer stations. Monadelphous Managing Director Rob Velletri said “This award builds on our long-term relationship with Rio Tinto”. The contract will be important for revenue and sales for the mining services company going forward.

However Project B will also be vital for Rio if it wishes to increase the amount of iron ore it ships from its facility at Cape Lambert. When Cape Lambert was originally built it had a capacity of 55 million tonnes annually but with project B (which is adjacent to the originally facility) that could double.

Work is scheduled to be completed by the fourth quarter of the 2014 calendar year.

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Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

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