Forge Group (FGE) has won a $100 million construction contract from Rio Tinto (RIO).
In a statement to the Australian Securities Exchange, Forge said the contract would more than double Rio Tinto's iron ore output at its Yandi Sustaining Project in Western Australia's Pilbara region.
The structural, mechanical and piping works will begin in January next year, with the works set to expand Rio Tinto's iron ore production from 23 million to 56 million tonnes per annum in the Yandicoogina mining area, northwest of Newman.
The project would employ up to 220 jobs at its peak, Forge said.
Forge Group managing director and chief executive officer David Simpson said the company was proud to be part of Rio Tinto's expansion plans.
“This contract is a continuation of our positive working relationship with Rio Tinto and acknowledgement of our track record of delivery in Australia’s iron ore sector," he said.
“Forge Group is well positioned for continued success in the 2014 financial year and beyond."