September 30, 2008

ABB Receives Rio Tinto Contract to Upgrade Power Infrastructure in Pilbara

ABB has won equipment supply and construction orders worth $48 million for power projects to help the Rio Tinto mining group increase capacity at its iron-ore mines in the Pilbara region of Western Australia.

ABB will supply turnkey, high-voltage substations to enable Rio Tinto to increase annual production from 163 million tons of iron ore to 220 million tons to meet increased world demand. The projects were awarded under a preferred supplier frame agreement between ABB and Rio Tinto which covers electrification relating to Rio Tinto's power systems upgrade in the Pilbara region.

The projects are for the turnkey construction of a 220kV switching station at the Seven Mile power station and a 220/33kV bulk supply substation at Cape Lambert. These are the first of eight projects to be awarded by Rio Tinto in connection with its power systems upgrade in Pilbara.

The current order includes all design, equipment, civil and electrical works, and project management. The installations are expected to be operational by the end of 2009.

Peter Leupp, head of ABB's power systems division, said: "We are pleased to contribute to the reliability of power supplies needed for Rio Tinto to boost capacity in its mines. Rio Tinto is an important customer and ABB's track record of past contract deliveries, coupled with technology innovation, systems expertise and short delivery times, has built a relationship of trust."