Decmil Group Limited (DCG) is pleased to announce its wholly-owned subsidiary, Decmil Australia Pty Ltd, has secured a milestone five-year framework agreement with Rio Tinto’s Iron Ore business. Rio Tinto is investing more than US$18 billion in the next five years to expand its iron ore operations in the Pilbara, Western Australia, in two major stages, from current capacity of 225 million tonnes per annum (Mt/a) to 283 Mt/a in 2013 and to 353 Mt/a in 2015. The agreement places Decmil Australia in a preferred contractor position for civil works for the Western Stream of RTIO’s 333 Programme. It formalises the ongoing long-term relationship between the organisations and positions Decmil in an early contractor involvement role. Under the agreement, Decmil and Rio Tinto have agreed to work together to deliver mutual benefit through the guaranteeing of available resources – both equipment and workforce – in a timely manner by Decmil; while ensuring Rio Tinto can adhere to its scheduling of projects for the 333 Programme.
DGL Chief Executive Officer Scott Criddle said, “the preferred contractor agreement that Rio Tinto has entered into with Decmil Australia reflects the strength of the relationship between the two companies. The long term nature of this agreement provides both organisations with greater certainty in long-term planning. “This agreement also represents a continuation of our strategy of securing recurring revenue streams with key clients in key sectors.”
http://www.traderdealer.com.au/fundamentals/dcg
