The Thiess Sedgman Projects joint venture is to design and construct a modular iron ore processing plant at Solomon mine in Western Australia under a $64m contract awarded by Fortescue Metals.
Having an annual capacity of 7.5 million tonnes, the plant will eliminate the need for a new wet plant at the Firetail ore processing facility (OPF), the company said.
The Solomon Hub includes the Firetail mine and the Kings mine. It has two OPFs, three crushing hubs, a 125MW power station, an airstrip and three camps to house 3,000 people.
The iron ore hub is expected to mine 60 million tonnes per annum (mtpa), with 20Mtpa produced at Firetail and 60mtpa at Kings Valley Projects.
Firetail mine, which comprised the stage I of Solomon's $3.5bn development, was opened in May 2013. The Kings was opened in March this year under stage II.
The Solomon OPF will be the first major iron ore plant to be developed by the Thiess Sedgman JV.
Sedgman CEO and managing director Peter Watson said: "Sedgman and Thiess have an established track record of delivering coal process and materials handling projects over the last 12 years and we are excited to be able to broaden this relationship to the iron ore sector.
"The award of this contract followed an early contractor involvement process and is testament to the process design and delivery capability that TSP was able to demonstrate to Fortescue."
In April, Fortescue modified the scope of works of the contract awarded to Leighton Contractors and took over the operations of the two Solomon OPFs.
The company said the takeover enables it to manage all OPFs across its operations and optimise its product portfolio at 155Mtpa.