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Civmec inks engineering project with Australian iron ore firm Fortescue

DUAL-LISTED construction group Civmec Limited has secured a new project with Australian iron ore giant Fortescue Metals Group, bringing the value of new work since the start of the financial year to about A$120 million (S$112.68 million). 

The latest project involves work on the primary crushing and ore processing facility for Fortescue's new Eliwana mine and rail, located in the Pilbara region of Western Australia.

Civmec's scope is for the full vertical delivery of the facility's iron ore loading, primary, secondary and tertiary crushing, ore screening and associated conveyor systems, up to no load commissioning. The scope also includes shop detailing, fabrication, delivery and site installation of civil, structural, mechanical, piping and electrical works.

About 300 locals will be employed for the project, both at Civmec's heavy engineering facilities where the fabrication will be undertaken, and in Pilbara for onsite works.

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Work will begin in the coming months, with completion expected by late-2020.

Civmec's chief executive officer Patrick Tallon said: "We are pleased to extend our relationship with Fortescue in the delivery of this exciting new contract. We have worked extensively with Fortescue for some time to secure this award, with the package of work utilising many of our core disciplines in a single, vertical solution offering."

The group also recently secured additional contracts within its maintenance division, and subsea fabrication work for the oil and gas sector. With the Eliwana project, these recent contract awards take Civmec's current order book to about A$850 million.