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Downer EDI wins Roy Hill mine contract

Engineering group Downer EDI has won a $500 million contract with mining magnate Gina Rinehart's Roy Hill iron ore project.

Downer is expecting to employ more than 220 people over four years as it performs pre-strip and supplementary mining activity at Hancock Prospecting's open cut mine in Western Australia's Pilbara region.

Construction work is expected to begin in early 2014 ahead of full-scale mining operations by the end of next year.

Up to $110 million will be spent on capital for new equipment during the 2014/15 financial year.