AMEC joint venture is awarded AU247 million contract for Fortescue Metals Group Cloudbreak ore handling plant upgrade


Perth, Australia, (1 November 2011) "- The CEPT joint venture comprising AMEC, the international engineering and project management company, and KAGC, has been awarded a target price AU$247 million (£160million) Engineering, Procurement and Construction (EPC) contract for the Cloudbreak ore handling plant wet front end project, Western Australia.

AMEC's share of the contract is approximately AU$55 million (£36 million).

The CEPT (Cloudbreak Enhancement Project Team) JV comprises AMEC and KAGC, a joint venture between Kiewit Australia Pty Ltd and AGC Industries Pty Ltd (AGC). 

AMEC's principal role within the EPC contract will be detailed engineering, procurement of equipment and site support. Work on the contract has already commenced and is due for completion before  September 2012.  AMEC began work on the Early Contract Involvement (ECI) phase for Cloudbreak in March 2011, and this was completed in June 2011.

Malcolm Brown, President AMEC Minproc, commented: "This major award for AMEC reaffirms our position as a leading services provider within the Western Australian iron ore industry. It complements a number of iron ore studies in which we are currently involved and are looking forward to taking through to project stage."

Owned by Fortescue Metals Group and located 50 kilometres north of Newman in the Pilbara region of Western Australia, the Cloudbreak mine currently produces 39 million tonnes of iron ore each year.  The Cloudbreak wet front end is a process enhancement to the Cloudbreak mine, to enable processing of below water table ore.

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