Calibre wins $22m Rio Tinto contract

Perth-based mining services provider Calibre Group has been awarded a $22 million contract to provide management services for the brownfields expansion of Rio Tinto’s West Angelas iron ore mine in the state’s north-west.

Rio Tinto and its joint venture partners Robe River Iron Associates, Mitsui, Nippon Steel and Sumitomo Metal Industries announced yesterday they had agreed to spend $599 million to lift production at West Angelas.

The development will increase production by an additional 6 million tonnes, taking it from its current capacity to 35mt per annum.

The decision to increase capacity at the mine was originally announced as part of a Pilbara-wide strategy in November last year, which included expanding iron ore tonnage from Brockman 2 and 4, Yandicoogina, Paraburdoo and West Angelas. 

At the time, Rio Tinto chief executive Sam Walsh said it was more attractive for Rio to invest in a combination of brownfield expansion and low-cost productivity gains to achieve its expansion plans of 360mtpa at a reduced capital cost.

Calibre will commence the West Angelas project immediately, providing additional heavy equipment, extensions to the processing plant and existing non-process infrastructure and enhancements to site utilities and services at the mine.

“We are pleased to be able to secure this new opportunity,” Calibre managing director Peter Reichler said.

“This continues Calibre’s long association with Rio Tinto at West Angelas, where Calibre was the EPCM provider for the capacity expansion from 16mtpa to 25mtpa in 2004-2006.

“Calibre provides itself on its ability to stay relevant to the changing needs of its clients by working closely alongside them to help deliver their productivity and value goals,” Mr Reichler said.

Shares in Calibre are trading at 45 cents per share, as of 7am, WST.