NRW has announced it has been selected by Fortescue Metals Group (FMG) as the preferred contractor to deliver the Stage 1 earthworks, roadworks and drainage works of Fortescue’s Eliwana Rail Project.
Fortescue and NRW will move to finalise outstanding matters prior to formal contract execution. The project value is circa $57 million and NRW will utilise its existing civil construction fleet for the project.
Highlights of the overall mine and rail project include:
- Estimated capital cost of $1.275 billion;
- 143km of rail, a new 30Mt/y dry ore processing facility (OPF) and infrastructure;
- Production commences December 2020 with a life of mine strip ration of 1:1;
- Underpins the introduction of a 60 per cent Fe grade product (Fortescue Premium) in the second half of FY19; and
- Financed from operating cashflows at a capital intensity of $42/t.
In May 2018, Fortescue’s CEO Elizabeth Gaines said development of the Eliwana project will maintain Fortescue’s low-cost status, providing us with greater flexibility to capitalise on market dynamics, while maintaining a minimum 170Mt/y production rate over 20 years.
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