The $10 billion Roy Hill project remains on track to start mining next year and achieve its first iron ore exports in the third quarter of 2015, its project director said today.
Sanjiv Manchanda also told a business lunch the project would deliver many opportunities for Australian contractors and workers.
“We are fairly confident that the current Australian labour market will deliver our construction skill needs,” he said.
“Sub-contractors are advising us of good access to people through their normal channels of recruitment.”
Roy Hill attracted controversy last year when it applied for an Enterprise Migration Agreement, which would allow it to bring 1,715 temporary foreign workers into Australia.
The project is still seeking an EMA, as a means of providing “surety” to lenders who must supply $7 billion in debt funding for the project.
Mr Manchanda, who was standing in for Roy Hill chief executive Barry Fitzgerald, said the project still needed to secure its debt funding, but declined to elaborate.
In the interim, the project’s equity investors, including Hancock Prospecting, POSCO and Marubeni have provided funding to enable work to proceed.
The project involves development of a 55 million tonnes per annum mine, a rail link to Port Hedland and new wharves and support infrastructure.
Mr Manchanda outlined the progress that has been achieved on many fronts, under the direction of EPC contractor Samsung C&T and project management consultant Parsons Brinckerhoff.
“The centre line for the rail has been cleared, dredging has been completed at Port Hedland, and the dedicated airstrip at the mine site, which is the longest in the Pilbara and capable of handling 737 aircraft, is complete and operational,” he told the American Chamber of Commerce in Australia lunch.
Four rail camps of 300 rooms each are operational, the 2,000 room mine village is well advanced, with 900 rooms available now, while the 1,200-room village at South Hedland is also advanced, with another 900 rooms completed.
The corporate headquarters and remote operations centre at Perth airport is scheduled for completion in November this year.
NRW, Brookfield Multiplex, Decmil, Calibre Group and Ertech are among the contractors to have been awarded work already, and Mr Manchanda said there would be further opportunities.
“The current competitive market requires contractors to actively pursue opportunities on the project,” he said.
“I encourage you to keep on using the Project Connect web site.”
Looking ahead to future milestones, he started by acknowledging the project had to secure its debt funding.
“We have to commence the major site works, which are planned for the fourth quarter of this year.
“We will commence mining, which will start with pre-stripping the waste, next year in 2014.
“We remain on track for first ore on ship planned for third quarter 2015.”
