Rio Tinto (ASX: RIO) announced on Thursday that it awarded to NRW Holdings the contract to build the miner's Cape Lambert iron ore plant. The scope of construction work includes conveyor link earthworks, relocation of water pipelines and rail formation earthworks.

The expansion project aims to boost Rio's iron ore output to 353 million tonnes a year. The contract specifies that NRW will undertake the construction work through a joint venture with the Ngarluma and Yindjibarndi Foundation.

The award of the $133 million contract followed the inking by Rio Tinto Iron Ore of a framework agreement with NRW which is the preferred contractor by the mining giant over the next five years.

NRW will undertake the project over 48 weeks and will have a workforce of 270 weeks at peak times. It provides some relief for NRW which was affected by Fortescue Metal Group's decision to defer $1.6 billion of capital expenditure in the Pilbara and lay off 1,000 employees.

NRW estimated the Fortescue move would hit its revenues by $100 million.

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