Leighton subsidiary Thiess has secured a major $100 million contract with Fortescue Metals Group (ASX: FMG) for Phase One development works on the Solomon Hub iron ore mine in Western Australia’s Pilbara region.

The 18 month contract is for initial pioneering and mine establishment works such as haul roads, stockpile pads and the mining of early ore and waste. The work will establish the Solomon area for long term mining operations.

Thiess said it won the iron ore mine contract in a competitive process, and is now well positioned to bid for further works on the mine development and the main services contract which commences in approximately 12 months.

Michael Wright, Executive General Manager of Thiess’ Australian Mining business, said Thiess is currently mobilising people and equipment to Solomon and commencing preliminary works on-site.

“This is an exciting win for us and the start of a strong relationship with Fortescue”, Mr Wright said.

The Solomon Hub mine is part of Fortescue’s Three Hub Strategy in the Pilbara, which will see overall annual production boosted to in excess of 155 million tonnes over the coming years. The Solomon Hub mine is expected to start producing iron ore in 2012.