Rio awards Monadelphous $235 million contract

The contract will help the mining giant reach its production guidance in the near future.

Owen Raszkiewicz

Owen Raszkiewicz is a Motley Fool Contributor. Owen has been a Contributor since 2013, having also spent time as a Fool writer/analyst. He also worked as an Investment Analyst at Zenith Investment Partners, Australia's top research house specialising in managed funds. Owen has appeared on Channel 10's The Project and was invited on the BBC. He holds a Masters of Applied Finance, Masters of Financial Planning, Bachelor of Technology, Advanced Diploma of Financial Services and Diploma of Mortgage Broking Management. In addition, Owen has passed Level 1 of the Chartered Financial Analyst (CFA) Program. He has taken the Banking + Finance Oath (BFO). When he is not writing, Owen is Managing Director of Rask Finance, an Australian financial education company. You can email him: [email protected].

Published September 5, 2013 1:32 pm AEST

To increase the amount of iron ore that can be shipped from its Cape Lambert Port in Western Australia, Rio Tinto (ASX: RIO) has awarded Monadelphous Group (ASX: MND) a $235 million contract for a number of services.

The contract includes structural mechanical and piping works for the supply and installation of a screenhouse, two car dumpers and associated conveyor and transfer stations. Monadelphous Managing Director Rob Velletri said "This award builds on our long-term relationship with Rio Tinto". The contract will be important for revenue and sales for the mining services company going forward.

However Project B will also be vital for Rio if it wishes to increase the amount of iron ore it ships from its facility at Cape Lambert. When Cape Lambert was originally built it had a capacity of 55 million tonnes annually but with project B (which is adjacent to the originally facility) that could double.

Work is scheduled to be completed by the fourth quarter of the 2014 calendar year.

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Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.

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