Strandline Resources has executed a long-term mining services agreement with Mine Site Construction Services (MSCS) at the Coburn mineral sands project in Western Australia.
MSCS’s experience in bulk materials handling and mining, including large dozer push operations in mining sands applications, means it is well credentialed to meet Coburn’s mining requirements, the company says.
The terms of the mining contract are in accordance with the mine plan, methodologies, pricing and overall operating cost assumptions contained in the Coburn definitive feasibility study, released in June 2020, which outlined a mine life of 22.5 years at a mining rate of 23.4 Mt/y.
The scope of the mining services agreement includes conventional open-pit dry mining of ore at a rate of 23.4 Mt/y, 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, Strandline says.
The mining contract incorporates provisions to maximise environmental and social governance, including implementing strong indigenous engagement, local content and emissions reduction initiatives.
MSCS is now preparing to mobilise to site to conduct mine establishment and pre-strip activities.
Strandline says it remains on track to achieve first production of heavy mineral concentrate in the December quarter of 2022.
Strandline Managing Director, 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, 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.”