Rio Tinto A$100 million contract awarded for new Amrun power station

20 June 2017

Rio Tinto has awarded a A$100 million contract to build a new 20MW power station at its world-class Amrun bauxite project in Far North Queensland.

Aggreko Australia Pacific won the contract to build and operate the station which includes a high efficiency modular diesel power system.

The installation will include engine efficiency upgrades and a heat-recovery system to be deployed over the 15-year term of the contract. A five-year option is available to extend the agreement.

Rio Tinto Amrun project general manager Marcia Hanrahan said "The contract to build this power station signifies another important milestone for delivery of the Amrun project. We look forward to partnering with Aggreko on this exciting new venture.

"The power delivery expertise and operational capabilities that the Aggreko team will bring will be critical to the success of our operations."

A team of more than 20 Aggreko employees including engineers, project managers and technicians will come together to deliver the installation by December 2017 with go-live set for April 2018.

Aggreko Australia Pacific managing director George Whyte said "Our people on the ground in Weipa and the wider Aggreko team look forward to working with Rio Tinto on this project."

Aggreko has been operating in Australia since 1980. The company employs more than 300 people at 22 locations and has seven depots throughout Australia.

The company was established more than 50 years ago and has grown in experience and expertise in power generation to become the world leader and go-to provider for critical services.

A major part of the company’s business is providing efficient, effective modular power where it is needed across the world, including support to national grids and various industrial applications, such as mining and oil production.

Notes 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.

Production and shipping are expected to commence in the first half of 2019, ramping up to full production by the end of the 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. The Amrun project will continue creating opportunities for indigenous people from Cape York and the surrounding region.