A Queensland-based firm has won the right to expand the Tonkolili iron ore mine.

The Tonkolili project in Sierra Leone needs a new iron ore processing plant, which it is hoped will boost the site’s output by 10 million tonnes per annum.

The expansion will be provided by Queensland company Ausenco Ltd.

The contract has been awarded for Ausenco to do the Front End Engineering and Design (FEED) for phase 2 of the expansion, focussing on the process plant and related infrastructure.

Ausenco has been given no time to waste, with work set to kick off as soon as possible and shooting for completion this year.

“Tonkolili [owned by African Minerals Limited] is amongst the most advanced new iron ore projects of significant scale in recent years and is operating on one of the largest iron ore deposits in the world,” said Ausenco CEO Zimi Meka.

"This contract award further increases Ausenco's work on hand in the APAC/Africa region, builds upon our experience in West Africa, and expands our experience in the iron ore sector," he said.

Ausenco previously operated and maintained phase one of the project from 2011 to 2012, and carried out the engineering and procurements for phase 1B plants.

The firm has not said how much to project is worth but insiders say initial expenditure for the new concentrator and other facilities will come from a $300 million restricted funds bank, the balance will reportedly be sourced through other financing arrangements.