PERTH (miningweekly.com) – Minerals sands developer Strandline Resources has inked a long-term mining services agreement with contractor Mine Site Construction Services (MSCS).
The scope of the mining services agreement includes conventional openpit dry mining of ore at a rate of 23.4-million tonnes a year, overburden removal, pit backfill and land recontouring and general mining-related earthworks. The contract mining term is expected to cover the first seven years of production and provides a safe, reliable and efficient mining solution for Coburn.
MSCS is now preparing to mobilise to site to conduct mine establishment and pre-strip activities. Strandline remains on track to achieve first production of heavy mineral concentrate in the December quarter, 2022.
Strandline MD Luke Graham said the execution of the mining services contract marked another key step in the company’s strategy to become a leading high-margin producer of critical minerals.
“We are delighted to establish this important long-term relationship with MSCS, a highly experienced Western Australia-based mining contractor,” Graham said.
“This agreement, when combined with the previously announced operating contracts, including for the supply of electricity, liquefied natural gas (LNG) and fuel on site, means Strandline has already locked-in over half of its operating costs in line or better than the assumptions contained in the Coburn definitive feasibility study.”
Coburn has an ore reserves of 523-million tonnes and an initial mine life of 22.5 years at a planned average mining rate of 23.4-million tonnes a year, with the potential to extend its mine life to more than 37 years.