PERTH (miningweekly.com) – Junior Mincor Resources has awarded an underground mining contract for its Kambalda nickel operation, in Western Australia, to Pit N Portal.

The contract will span the first five years of underground mining at the new Cassini nickel mine, where early surface work was recently completed, as well as a three-year contract, and a possible two-year extension period, at the Northern Operations, which include the brownfield Durkin North and Long nickel mines.

Mincor on Thursday said that it was targeting the start of mining operations in the second half of this year, subject to board approval and a final investment decision on the Nickel Restart plan.

Mincor MD David Southam said that the award of the contract to a Kalgoorlie-based business was consistent with the company’s commitment to maximise local content and to support local businesses and communities, as well as to create opportunities for a residential workforce.

“We selected Pit N Portal based on a wide range of criteria including safety, performance, contract cost, experience and capability, ability to meet our mobilization timelines, and the size and quality of their contract fleet.”

Southam noted that project financing for the Kambalda project was progressing well, with several global and domestic banks and resource specialist financiers now having been short-listed following the evaluation of indicative term sheets.

“We have also started preparing the organisation for operational readiness, having recently identified preferred candidates for the position of GM for each of our operational centers. These appointments will be formalized shortly prior to, or post, a final investment decision.”

A previously completed definitive feasibility study into the Kambalda restart estimated that the project will require a capital investment of A$68-million to produce 63 000 t of nickel-in-concentrate over a five-year mine life.