The modular iron ore processing facility will have a 7.5 million tonnes per annum capacity and will be a key element in FMG’s vision for operating Solomon without a new wet plant.

The contract is the JV’s first major iron ore project and represents a milestone in its diversification strategy.

“Sedgman and Thiess have an established track record of delivering coal process and material handling projects over the last 12 years and we are excited to be able to broaden this relationship to the iron ore sector,” Sedgman CEO and MD Peter Watson said.

“The award of this contract followed an early contractor involvement process and is testament to the process design and delivery capability that [Thiess Sedgman Projects] was able to demonstrate to Fortescue.

“We look forward to delivering a successful outcome for the project and further strengthening our relationship with Fortescue.”

Earlier this year, FMG recorded a 76.7% increase in total resources at Solomon to 2.6 billion tonnes grading 56.8% iron.

This accounted for all development properties within a 50km radius of the Solomon operating hub, which includes the Firetail and Kings Valley projects.

The miner said it was trying to determine whether the ore was suitable to transport by conveyor network or road haulage to process facilities in the region.

Solomon’s Serenity area was highlighted as hosting channels covering 18km with average width of mineralisation, across the valleys, of about 800m.

The project’s Sheila Valley system, meanwhile, was found to contain mineralisation up to 1km wide.

Shares in Sedgman were last trading 1.9% higher at 53.5c, while FMG was up 1.9% at $4.66.