By Robb M. Stewart
MELBOURNE--Engineering firm UGL Ltd. (UGL.AU) said in a
statement Wednesday that it has secured a 99.5 million Australian
dollar (US$101.4 million) contract from BHP Billiton (BHP) for work
on the Jimblebar iron ore mining operation in Western Australia,
including building and installing equipment for stockpiling and
crushing ore.
Last month AusGroup Ltd. (5GJ.SG) said that it was given a A$48
million contract for mechanical and piping work at Jimblebar, while
Downer EDI Ltd. (DOW.AU) said it received a A$71.7 million contract
for electrical work.
BHP is pushing ahead with expansion of the mine despite a fall
in market prices for the steelmaking ingredient. Benchmark prices
fell to their lowest in 31 months last week as demand from top
consumer China remained soft.
July iron ore exports from Port Hedland, the export hub used by
BHP, fell on month, for the second month in a row, as shipments to
China declined.
BHP is reviewing the pace and sequence of new iron ore growth
projects, although it has affirmed its commitment to projects under
way in the remote western Pilbara region.
Last year it approved spending US$3.4 billion to develop the
Jimblebar mine and rail links as part of a wider expansion of its
mining capacity in the Pilbara.
The company is seeking to fill its annual allocation of 240
million metric tons at Port Hedland's inner harbor, and has
ambitions to grow its mining and export capacity beyond that.
Write to Robb M. Stewart at robb.stewart@dowjones.com
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