Metallica Minerals appoints LCR Group to undertake mining and haulage operations

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Metallica Minerals appoints LCR Group to undertake mining and haulage operations

Emerging bauxite producer, Metallica Minerals Limited has announced that its wholly owned subsidiary has entered into a schedule of rates contract with the LCR Group to undertake all mining and haulage operations on behalf of the Joint Venture at the Urquhart Bauxite project. LCR will be responsible for the supply of all equipment and personnel for the mining and haulage operations and will perform all short term planning and management to deliver bauxite from the project to Hey Point, where it will be transhipped via existing infrastructure into ocean going vessels.

The contracting model developed by Metallica will deliver a low capital project with a compressed development schedule. LCR have agreed to capitalise their mobilisation, as well as the design and construction of the haul road linking the project to Hey Point. These costs will be paid back via monthly instalments across a 2.5 year period, thereby delivering a low capital start-up for the Project.

It is anticipated that mining will commence within 4-6 weeks after mobilisation is completed. Mobilisation is due to commence following satisfaction of a number of conditions precedent, including the grant of a mining lease for the Project. No costs or liabilities will be incurred by the Joint Venture until those conditions are satisfied.

LCR was selected as the contractor for the Project following a rigorous selection and tender process. The contract agreed with LCR is in line with the costs that were included in the Pre-Feasibility Study. LCR have confirmed that they have the equipment and personnel available and put aside for the Urquhart Bauxite project, including a fleet of 130t road trains for the efficient haulage of bauxite to the Hey Point barge loading facility, an approximate distance of 15km.

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