Engineeering and construction group Forge Group has been awarded a $100 million contract to expand a West Australian iron ore mine owned by mining giant Rio Tinto.

Construction at the Yandi mine, in the Pilbara region, will begin in January, with 220 people expected to be employed during 11 months.

The $100 million contract for structural, mechancial and piping work will enable annual iron ore production to expand from 53 million to 56 million tonnes.

“This contract is a continuation of our positive working relationship with Rio Tinto and acknowledgement of our track record of delivery in Australia’s iron ore sector,” Forge Group construction managing director David Simpson said in a statement.

Forge shares gained six cents to $5.36.