The project is being developed at Cape Preston, 100km southwest of Karratha.
Under the contract, VDM will proceed with the Line 2AG mill and ball mill mechanical installation package for the mine’s developer, MCC Mining.
The works, being undertaken by VDM’s western operations, are anticipated for completion by August 2012.
The deadline for the completion of the works is in line with MCC’s target of commissioning the first of six production lines by the end of August.
The $6 billion Sino Iron project, which has been plagued by delays and cost blow-outs, will have a 25-year mine life with scope to produce 70 million tonnes of iron ore per annum.
Other contracts recently awarded to VDM include a $13 million contract for road, drainage and restoration works, handed down by Gladstone Regional Council.
In addition, the company was awarded about $10 million in construction work for its Western operations, while a further $8 million in contract variations have been approved for VDM’s western operations on existing projects.
Work in hand for VDM is now valued at more than $140 million.
VDM managing director Andrew Broad said the new contracts demonstrated the company was pursuing its growth opportunities.
“It is encouraging that VDM is continuing to win work across our key focus areas in Western Australia and Queensland, with the majority of recent awards being repeat business with valued clients such as MCC Mining,” Broad said.
The group has seemingly bounced back from the troubles experienced in 2011 when it delivered a net loss after tax of $35.5 million for 2010-11.
VDM is hoping a recent management shake-up and restructure plan will ensure the company returns a profit at the end of the upcoming financial year.
Shares in VDM were unchanged in morning trade at 6.4c.
This article first appeared in ILN's sister publication MiningNews.net.
