British-Australian miner Rio Tinto has signed a $6 million contract with Alltype Engineering to advance the development of its Koodaideri project, Kallanish notes.

The project was signed through management contractor Laing O'Rourke. According to the contract, Alltype Engineering will complete the phase-one structural, mechanical and piping packages for the Koodaideri operation. It will also perform procurement, fabrication, surface protection, pre-assembly and modularisation works at the greenfield mine development.

The AUD 3.5 billion ($2.5 billion) project will begin production in 2021, Rio Tinto says. It will eventually produce some 43 million tonnes/year of iron ore which will sustain the miner's output of Pilbara Blend.

The project, which is located in the Pilbara, includes a 166km rail line to connect the mine to Rio's existing rail network. A study has also been approved into a second phase which would lift the mine's capacity to around 70m t/y.