Calibre Gets A$150 Million Order at Rio Tinto Iron Ore Project

   By Robb M. Stewart 
 

MELBOURNE--Engineering firm Calibre Group Ltd. (CGH.AU) has received a 150 million Australian dollar (US$157.7 million) work order to expand the life and output capacity at one of Rio Tinto PLC's (RIO) iron ore mines in Western Australia state, the company said in a release Tuesday.

Calibre said it will provide engineering, procurement, construction and maintenance services at the Yandicoogina mine, where Rio Tinto is seeking to continue mining through 2021 and expand production capacity to 56 million metric tons a year from 53 million tons.

The US$1.7 billion project is expected to be completed in the first half of 2015. Calibre said at the peak of construction it will need about 800 workers, including 200 employees from Calibre.

The service order had been listed as pending in the company's order book ahead of its listing on the Australian exchange earlier this month following a A$75 million initial public offering.

Calibre recently laid off 50 workers and redeployed 30 who were linked to a rail project for BHP Billiton (BHP) as the mining company has sought to cut costs at its own iron ore operations in Australia.

Write to Robb M. Stewart at [e-mail]

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