Strike Resources, after an extensive evaluation, has entered into Early Contractor Involvement Services Agreements with the preferred contractors to provide drill and blast, mining, crushing and screening services and civil works (including the haulage road and mine site) for its Paulsens East iron ore mine in Western Australia.

Dynamic Drill and Blast has been selected for the provision of drill and blast services, and Lucas Total Contract Solutions has been selected for the provision of mining, crushing and screening services, plus the civil works required for Paulsens East, including construction of the 18 km haulage road (from the mine site to Nanutarra Road), establishment of the Mining Operations Centre (MOC) and siteworks for the mining village.

Strike, which is developing a 1.5 Mt/y direct shipping iron ore operation, says it is working with both parties to finalise the detailed scope of services, schedules and formal contractual terms of engagement.

Dynamic, who worked with Strike to plan, licence and develop magazine and explosives storage facilities for the project in consultation with the Department of Mines, Industry, Regulation and Safety (DMIRS), said the contract is estimated to have a four-year initial term.

On top of this, Strike said the final objection on its proposed haulage road, Miscellaneous Licence (ML) L47/934, has now been withdrawn after the execution of an Access Deed with the underlying tenement holder. With the execution of this deed, the last outstanding ML related to Paulsens East is expected to be granted by DMIRS during the next two-to-four weeks.

“Once L47/934 is granted, and subject to DMIRS having no further issues with any technical or environmental aspects of the Mining Proposal, DMIRS is expected to approve the Mining Proposal for Paulsens East shortly thereafter,” the company said.

Strike also recently made an investment in acquiring a second-hand ore sorter, ancillary materials handling and control room equipment, together with conveyors that were recently sold at auction, resulting in a significant saving in project capital costs at Paulsens East.

“Strike is planning to use specialised ore sorters as part of its processing flowsheet, to assist with the optimisation of the production of high-grade lump ore from the mine,” it said. “To deliver the required throughput for the mine, a total of up to three ore sorters will be required.”

Further long-lead items secured include an order for 13 Ultra Quad Road Trains (comprising 13 prime movers and 52 trailers) for exclusive use on Paulsens East.

On the communications side, Strike has now entered into a contract with Telstra to commence works on establishing suitable communications infrastructure for the mine site and village. Due to the remote location, a dedicated microwave tower on site is required together with associated voice and data equipment. The construction of the tower and provisioning of the service will be critical for safe and effective communications during the construction and operational phase of the mine.

William Johnson, Managing Director for Strike, said: “With Campbells Transport already selected as its preferred haulage contractor, the company has now selected all of its key contractors for Paulsens East. The securing of further long lead time items together with the ore sorter and associated equipment are important steps as the company advances towards making a final investment decision on Paulsens East.”