The new contract covers the design, construction and commissioning of non-process infrastructure facilities and an explosives compound.

Construction is set to start at the end of the first quarter of 2015.

“This contract award builds upon recent successes on previous Rio Tinto projects,” Kerman managing director Chris Kerman said.

“It’s our team that creates good project outcomes and we have worked hard to retain high calibre people in our business.

“We are confident that this as one of our strengths will be a big factor in the success of this project.”

The new contract is part of a wider scope of works aimed at expanding the Nammuldi iron ore project by mining below the water table.

Part of the surplus water produced through the new expansion will be directed to Rio’s Hamersley Pastoral Station to be used as irrigation water.

Kerman is a privately owned design and construction firm.