Downer EDI, a provider of engineering and infrastructure management services, has secured a contract worth approximately A$120m from Karara Mining to construct a 180km, 330kV power transmission line from the Karara iron ore project to Eneabba in Western Australia.

At Eneabba, the transmission line will connect to Western Power’s South West Interconnected Service, allowing Karara to draw power under its 15-year supply agreement with Verve Energy.

Gindalbie Metals, which jointly develops the Karara iron ore project with China-based Ansteel, said that the power line represents one of the key pieces of infrastructure investment – together with rail, water and port facilities, where additional capacity is being built into the Stage One project with a view to the potential future expansion of Karara’s production level.

Gindalbie managing director Garret Dixon said that the Downer EDI contract ensured that the Karara project will have adequate transmission capacity to meet its production potential of more than 30mtpa for more than 30 years.