Australian construction firm VDM Group Ltd. (VMG.AU) said Tuesday it received a A$25.2 million (US$25.9 million) contract from BHP Billiton Ltd. (BHP) to design and build an ammonium nitrate storage facility for the mining giant's Jimblebar project.

The project is located in the iron ore-rich Pilbara region of Western Australia, approximately 39 kilometers east of Newman.

VDM said in a statement work on the site is due to begin in February and is scheduled for completion in December.

BHP is the second-largest iron ore producer in Australia after Rio Tinto PLC. Both are investing billions of dollars to expand production of the steelmaking ingredient in the Pilbara.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

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