Rio Tinto has awarded its first contract since announcing its $338m development of Silvergrass.

By Cameron Drummond

PERTH-based engineering company RCR Tomlinson was awarded a contract to deliver a primary crusher and conveyor system for Rio Tinto’s $338 million Silvergrass iron ore project in the Pilbara region of WA.

The $120 million contract includes engineering, procurement and construction work of the crusher; nine kilometres of overland conveyor; and its associated 33kW power line.

The conveyor system will be installed in place of a road haulage system linking the mine site to Rio’s processing facility at Nammuldi.

Construction is expected to commence in the fourth quarter of 2016, following approval grants.

RCR managing director Dr Paul Dalgleish said the contract award demonstrated the company’s innovative approach to cost competitive solutions.

“This win, when added to recent successful projects and new contract awards, firmly places RCR as a market leader in the engineering, procurement and construction of mineral processing plants in the mining and minerals sector,” Dr Dalgleish said.

“Our design was innovative and provides Rio Tinto with a solution that uses capital efficiently [and] we look forward to delivering this important turnkey project for Rio Tinto.”