NRW Holdings has bagged a contract worth AUD70 million ($47 million) for bulk earthworks for the Iron Bridge Magnetite Project in Western Australia from the joint venture between Fortescue Metals Group subsidiary FMG Magnetite and Formosa Steel IB.

The contract will be subject to the finalization of various outstanding contractual items, said NRW Holdings. However, the mining contractor has been asked to start mobilization.

The Iron Bridge Magnetite Project is located in the Pilbara region, 145km south of Port Hedland. It involves the development of a new magnetite mine, which includes the construction of processing and transport facilities as well along with associated infrastructure.

The magnetite project is expected to see have a production of 22 million tons per annum of 67% iron magnetite concentrate from the North Star, Eastern Limb, West Star, and Glacier Valley magnetite iron ore deposits.

Under its contract, NRW Holdings will undertake bulk earthworks and drainage for the processing plant, roads, and infrastructure. The contract is likely to have a duration of nearly 45 weeks and at its peak will involve 200 site-based personnel.

Commenting on the Iron Bridge Magnetite Project contract, Jules Pemberton – NRW Holdings CEO and Managing Director said: “NRW is pleased to be involved in this exciting new project with Fortescue and looks forward to its successful execution.”

The iron magnetite project is owned by FMG Iron Bridge and Formosa, which hold stakes of 69% and 31%, respectively.

Last year, Fortescue Metals Group’s subsidiary FMG Magnetite and its joint venture partner Formosa Steel IB approved the development of Stage 2 of the Iron Bridge Magnetite Project with an investment of $2.6 billion.

FMG Magnetite is a subsidiary of FMG Iron Bridge, a Hong Kong-registered company, which, in turn, is owned by Fortescue Metals Group (88%) and a subsidiary of Baosteel Resources International Company (Baosteel), which owns the remaining stake of 12%.

The first stage of the Iron Bridge Magnetite Project has seen $500 million investment towards the construction of large scale pilot and demonstration plants, for validating key equipment and magnetite production processes designed for the full-scale Stage 2 ore processing facility (OPF).

  Australia, Baosteel, FMG Magnetite, Formosa Steel IB, Fortescue Metals Group, Iron Bridge Magnetite Project, Jules Pemberton, NRW Holdings, Western Australia