Pictured: Goodline owner and Weipa local John Kennedy with Goodline heavy mobile equipment.

OREANDA-NEWS. A company founded in Weipa has won the first significant construction contract on Rio Tinto’s $2.6 billion Amrun project.

Goodline been awarded a $25 million contract to build the barge and ferry berths and other facilities that will allow construction workers, equipment and materials to be safely transported across the Hey River from Weipa to service the Amrun project site.

The company was established in Weipa in 1999 and now employs more than 1,000 staff across Australia, providing construction and maintenance services to support the mining industry.

Goodline owner and Weipa local, John Kennedy, said “Having operated in Western Cape York for more than 15 years, we’re excited to be part of a project that will help ensure there is a strong future for the region.

“As a business that started from humble local beginnings in Weipa, I take great pride in the fact we can successfully compete with other major contractors from Australia’s construction industry.

“We’ll have a team of around 35 people drawn from our existing workforce on this project and many of them have a local connection to Weipa.”

Work on the river facilities will begin in March 2016 and is expected to finish by the end of 2016.

The Amrun project construction workforce will average around 600 people over the three year period.

Rio Tinto general manager Amrun Development Greg Rashford said “To be part of the Amrun project, contracting companies will need to share Rio Tinto’s commitment to providing jobs and strengthening the economy for the people of Cape York and Queensland.

“I’m very pleased to see the first significant construction contract go to a company with such strong ties to the Weipa community.

“One of the reasons Goodline’s bid was successful is its plan to provide opportunities for local and indigenous people and we look forward to seeing them deliver these outcomes for the Weipa community.”

As part of the tender process, Goodline submitted a Local and Indigenous Participation plan that identified work items to provide subcontracting opportunities for local and indigenous businesses. It has also committed to ensuring suitable training programs will be deployed and sustainable employment opportunities provided for our local indigenous people.

Note to editors

Rio Tinto announced its $2.6 billion investment in the Amrun project in late 2015.

The project is about 40 kilometres south of Rio Tinto’s existing East Weipa and Andoom mines on the Cape York Peninsula in far north Queensland and involves the construction of a bauxite mine, processing and port facilities.

The planned initial output is 22.8 million tonnes a year1, replacing production from the depleting East Weipa mine and increasing annual bauxite exports from Cape York by around 10 million tonnes.

Production and shipping are expected to commence in the first half of 2019, ramping up to full production by the end of the year. The project’s design provides options for future expansion to 50 million tonnes a year.

At its peak, construction of the project is expected to provide work for around 1100 people. Once operational, Amrun will help to support ongoing employment for the existing workforce of around 1400 employees and contractors at Rio Tinto’s Cape York bauxite operations.

Rio Tinto has a long history of partnering with Traditional Owners on Cape York. Aboriginal and Torres Strait Islander people make up around 24 per cent of employees and the Amrun project will continue creating opportunities for indigenous people from Cape York and the surrounding region.

1This production target is underpinned as to 80 per cent by proved ore reserves, and as to 20 per cent by probable ore reserves covering the first ten years of production, which have been scheduled from current pit designs by Competent Persons in accordance with the requirements of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, 2012 Edition.