BHP Billiton Iron Ore has awarded a A$240m ($171.54m) contract to engineering company Monadelphous Group to provide general maintenance services at its mine sites, located in the Pilbara region of Western Australia (WA).
Valid for a term of three years, the contract requires Monadelphous to provide services for shutdowns, outages and minor capital works at BHP’s Mt Whaleback, Jimblebar, Eastern Ridge, Mining Area C and Yandi mine sites. The company also has an option to secure two one-year extensions.
The contract is set to enhance the relationship between the parties. Over the past two decades, Monadelphous has served BHP on both construction and maintenance projects.
Monadelphous Group managing director Rob Velletri said: “The award of this contract is a testament to our reputation for delivering customer-focused engineering solutions and maintaining a high standard of safety and quality.
“We look forward to further developing our relationship with BHP over coming years, growing our operational footprint in the Pilbara and continuing to strengthen our long-term commitment to the region and the communities in which we operate.”
Monadelphous operates under two divisions, Engineering Construction, and Maintenance and Industrial Services.
In a separate development, BHP and its joint venture partner reached a final settlement agreement with Brazilian prosecutors regarding compensation over dam failure at the Samarco mine in November 2015.
Nineteen people were killed in the accident, which is regarded as Brazil’s largest ever environmental disaster. Besides, the disaster also caused large scale property destruction in Minas Gerais and Espírito Santo states.
The settlement deal involves compensation payments for affected people.