“NRW in box seat for $57m Eliwana work for FMG Daniel NewellThe...

“NRW in box seat for $57m Eliwana work for FMG
Daniel NewellThe West Australian
Monday, 31 December 2018 7:52AM

NRW Holdings is in line to pick up a $57 million contract to undertake earthworks for a new rail line servicing Fortescue Metals Group’s Eliwana mine in the Pilbara.

The civil and mining contractor told the market this morning that it had been named preferred contractor for stage one earthworks, roadworks and drainage works of the line at the new $US1.275 billion ($1.8 billion) iron ore project.

NRW’s shares were up 1¢ to $1.65 at 7.35am.




Eliwana will enter production in late 2020 as a replacement for the ageing Firetail mine, opening up other deposits in FMG’s Western Hub for development via the 143km railway.

It is the first of three big new mines recently approved for construction.

BHP has started work on it $US3 billion South Flank project and Rio Tinto has approved the $US2.2 billion Koodaideri development.

Eliwana is key to FMG’s plans to produce a higher-grade iron ore product attracting better prices from its Chinese buyers.

The company’s lower-grade ore — it averages 58 per cent iron content — has attracted a widening discount from steel mills chasing premium products.

Eliwana’s ore, which will be blended with ore from the group’s Cloudbreak and Christmas Creek mines, is part of FMG’s new 60 per cent-grade West Pilbara Fines product offering, which first shipped two weeks ago.”

https://thewest.com.au/business/contracting/nrw-in-box-seat-for-57m-eliwana-work-for-fmg-ng-b881061674z