Italy's Ansaldo STS wins signal contract in Australia

MILAN, July 6 (Reuters) - Italian rail technology company Ansaldo STS has won contracts worth 289 million euros ($357.81 million) to help upgrade Rio Tinto's mining operations in Australia, the company said on Friday.

Ansaldo, which is 40 percent owned by Italian defense giant Finmeccanica, will provide a signalling system for trains delivering iron ore as part of Rio Tinto's 1,500km rail network stretching across Australia.

The signalling deal worth 253 million euros was signed with another contract to install an electronically controlled pneumatic breaking system, worth 36 million.

Under the agreement Ansaldo is to deliver the projects over five years to support Rio Tinto's operations in the Pilbara region in Western Australia.

The Genoa-based company employs 700 people across Australia.

Ansaldo's shares were up 1 percent, outperforming a 0.6 percent fall in Italy's blue-chip stock index by 0739 GMT.