Watpac Ltd’s
(ASX:WTP) civil and mining division has been awarded two major contracts by Western Australian iron ore company BC Iron
(ASX:BCI) worth in excess of $300 million.
The two contracts are for the mining, crushing, and screening activities at site, and the haul road construction project for the Nullagine Iron ore Joint Venture in the Pilbara of Western Australia.
The project is a 50/50 joint venture between BC Iron and Fortescue Metals Group Ltd (ASX:FMG).
Work on the haul road is scheduled to commence in June, with the mining contract to start in September.
Watpac says the mining contract is a five year term with initial production around 3 million tonnes per annum, ramping up to 5 million tonnes per annum during the contract.
Managing director Greg Kempton says the award of the projects was a significant milestone for the company.
For the 2009 financial year Watpac posted a profit.
