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Monadelphous gets $320m Rio contract
Rio Tinto's Marandoo iron ore mine.

WA engineering group Monadelphous has been awarded construction and maintenance work worth $320 million with Rio Tinto's iron ore operations in the Pilbara.

Monadelphous has received a notice of award for a construction contract that involves structural, mechanical and piping works for Rio's Marandoo Mine Phase 2 expansion project, 45km east of Tom Price.

The contract was awarded under a framework agreement, announced in February, for Monadelphous to provide construction services as part of Rio's broader program to increase the capacity of its Pilbara iron ore operations to 353 million tonnes per annum. Work on the project has commenced and is scheduled to be completed in the third quarter of 2013.

Monadelphous has also been awarded three-year extensions to two shutdown and maintenance services contracts for Rio's coastal and inland west operations. These contracts have been expanded to include services previously provided by Monadelphous under separate structural integrity contracts, which involve refurbishment work on iron ore assets.

"We're pleased to continue our extensive support for Rio Tinto in the Pilbara through the ongoing maintenance work and our first contract under the framework agreements," Monadelphous managing director Rob Velletri said.

Monadelphous closed down 41 cents, 2 per cent, to $20.61.