FLSmidth Minerals has been awarded a contract to provide two mobile overburden handling systems to Fortescue Metals Group (FMG) for their iron ore mine in the Pilbara region in the north of Western Australia. FMG is an Australian company listed on the Australian stock exchange. The parties have agreed not to disclose the value of the contract.
The equipment will be supplied by FLSmidth Minerals' subsidiary FLSmidth RAHCO Inc.
After RAHCO's acquisition by FLSmidth Minerals in the beginning of 2007 (cf. Stock Exchange Message no. 7- 2007), the company is now capable of handling much larger projects than before. As such, the Fortescue order is about three times RAHCO's total sales in 2006.
The two mobile overburden handling systems are automated materials handling systems for the removal of overburden in the mining operation up to 16,000 metric tonnes per hour.
Installation of the first system will begin in July 2008 with start-up by the end of 2008. The second system will follow four months later.
Including this order FLSmidth Minerals has been awarded over USD 200m in materials handling equipment over the past three months by global mining companies, including South Africa's Anglo Coal, Chilean Centenario Copper and Brazilian Companhia Vale do Rio Doce (CVRD).
The orders result from synergies between the recently acquired materials handling companies within the FLSmidth Group combined with the Group's position as one of the global leaders in large capacity material handling systems for the mining industry.
"FLSmidth Minerals today has the ability to reduce the operating costs of the mining companies through the combination of our long history of engineering expertise in minerals crushing technology and the acquired leading materials handling technologies in MVT, Koch and RAHCO," Group Chief Executive Officer J¸rgen Huno Rasmussen comments.
The orders will contribute positively to FLSmidth's earnings until all the equipment has been commissioned in the first half of 2009