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Fortescue awards $1.3bn Kings contract to Leighton Contractors

Fortescue Metals Group (FMG) has awarded Leighton Contractors a $1.3 billion contract for its Kings iron ore deposit at the Solomon mining hub.

June 24, 2013
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The contract includes operating and maintaining the open-cut mining fleet, mine planning, ore quality control, ore processing facilities and associated infrastructure such as the airport and village, FMG said on Monday June 24.

The contract followed the one agreed in September last year, when FMG entered into a five-year pact worth $1.5 billion with Leighton for the Firetail deposit.

The 40-million-tpy Kings is currently under construction and is expected to be completed within months, according to FMG’s statement.

While the iron ore miner said it would miss its shipment target of 82-84 million tonnes for financial year 2013 by 2 million tonnes, it still expected to see production capacity reach 155 million tpy by the end of calendar year 2013.