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Contracts awarded for over $382M in metal projects

The Ausdrill team. (Photo credit: Ausdrill)

Part of a diversified mining services company has secured work on more than $382 million of metal projects in Western Australia.

A subsidiary of Ausdrill recently won mining services contracts for the $299m Odysseus Nickel Project (30km north of Leinster), $38.5m Rosemont Gold Project (100km north of Laverton), $30m Woodie Woodie Manganese Mine (400km southeast of Port Hedland), and $15m Bellevue Gold Project (400km northwest of Kalgoorlie).

QMEB can reveal the underground mining services contracts is for a three-year term and will create a combined $171m in revenue for hard-rock underground miner Barminco.

Rosemont has been a fully operational open-pit mine since March 2013 and is one of three projects proponent Regis Resources operates in the Duketon deposit area. Regis recently approved the mine’s expansion to an underground operation directly below the existing Rosemont open pit. Barminco will carry-out the development and production work at the underground deposit.

Barminco has already commenced work, including portal development at the southern end of the Rosemont main open pit. About 100 staff are expected to be employed at the project.

“[We] look forward to working with the Regis team as Rosemont expands into underground production,” Barminco chief executive officer Paul Muller said in a statement to the Australian Securities Exchange. “This project adds to Barminco’s extensive experience in the WA Goldfields, with current mining projects at Sunrise Dam and Agnew.”

Regis congratulated Barminco’s successful tender for the project.

“The company is very pleased to partner with a highly experienced and well regarded underground mining contractor in Barminco,” managing director Jim Beyer said. “This is the next step in delivering the underground strategy that Regis has been pursuing at Duketon … Rosemont underground is a key component of our exciting strategy to increase annual production and mine life at Duketon.”

Meanwhile, Barminco has already started a 14-month decline rehabilitation and development work at the Odysseus mine for proponent Western Areas.

Ausdrill will in February start providing exploration drilling services for a year to Consolidated Minerals at the Woodie Woodie mine. Five reverse circulation drill rigs and a diamond drill rig will be drawn from the existing fleet.

Ausdrill is already providing drilling services to Bellevue Gold at the Bellevue project for a year. Four diamond rigs will be drawn from the existing fleet.

Jobs are advertised on Barminco’s careers page.

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