Civil and mining contractor NRW Holdings Limited announce its subsidiary, NRW Pty Ltd has secured a milestone framework agreement with Resources Company Rio Tinto Iron Ore business.
The agreement represents a formalization of the ongoing long term relationship between Rio Tinto and NRW and places NRW in a preferred contractor position for two streams of earthworks consisting of project-specific contracts as required by Rio Tinto over the upcoming five years. This is the first of a dozen such agreements covering different work streams and sites that Rio Tinto will implement.
The projects covered in the framework agreement are a part of the major expansion of Rio Tinto’s operations in the Pilbara, Western Australia to a capacity of 333 Mt/a. Beyond the delivery of the earthworks packages, the framework also encompasses NRW in an early contractor involvement role, through which time and cost efficiencies will be identified and maximum value delivered to the 333 Program.
NRW and Rio Tinto have agreed to work together to deliver mutual benefit through the guaranteeing of available resources both equipment, and workforce - in a timely manner by NRW; whilst ensuring Rio Tinto can adhere to its scheduling of projects to successfully carry out the 333 Program. In this way, NRW’s long serving workforce will enjoy greater continuity of work and NRW will be able to maximize the efficiency of its plant and equipment fleet as the projects are coordinated around available resources.
NRW Chief Executive Officer Jules Pemberton applauded the signing of the agreement, “This is a landmark achievement for NRW and represents the culmination of years of successful projects for Rio Tinto and months of hard work in negotiating the agreement. It will deliver optimal results to all NRW stakeholders including our loyal workforce; our shareholders and of course Rio Tinto in the surety of a quality delivery.”
The commitment of both Rio Tinto and NRW to Indigenous engagement and business opportunities delivers further benefit as existing NRW Indigenous joint ventures such as the NRW / Ngarluma and Yindjibarndi Foundation Limited Joint Venture and the NRW / Eastern Guruma Pty Ltd Joint Venture will benefit from the framework agreement.
These Indigenous joint ventures are already undertaking works encompassed under the two Streams as follows:
1. Port Stream
The NRW / NYFL Joint Venture was awarded the Cape Lambert Port Car Dumper and Bulk Earthworks package in March 2011, valued at USD 100 million and employing an anticipated 196 people.
2. Western Pilbara Stream
The NRW /Eastern Guruma Joint Venture was awarded the Western Turner Brockman earthworks package in April 2011 valued at USD 160 million and with an anticipated workforce of over 550.
These two contract awards, together valued at approximately USD 260 million will commence in year one of the five year agreement. Future potential work packages covered under the framework agreement for the Port Stream consist of similar bulk earthworks as part of the planned future upgrade of Rio Tinto Cape Lambert Port to 333Mt/a, currently awaiting funding approval. Under the Western Pilbara Stream there are three further earthworks packages for three futures mine developments planned by Rio Tinto also awaiting funding approval as part of the 333 Program.
Mr David Joyce Rio Tinto Managing Director of Expansion Projects, Iron ore, reiterated Rio Tinto commitment to delivering its Pilbara expansion successfully. “Rio Tinto continues to work hard to ensure the timely delivery of our 333 Program, and to develop and encourage indigenous business capacity. Our relationships with contractors such as NRW and its indigenous partners are an important aspect of our business.”
