NRW has followed up on a letter of intent with Karara Mining Limited for mining services works at the Karara Iron Ore mine in Western Australia, sealing a formal contract with the company.

The contract value is circa A$702 million ($502 million) over a five-year duration, with the project workforce averaging an estimated 250 personnel.

Located 200 km southeast of Geraldton in the Shire of Perenjori, Karara is the largest mining operation and the first major magnetite mine in the Mid West. It produces a premium, high-grade concentrate product for export to steelmakers.

With an expected mine life of 30-plus years, Karara’s operation includes a large open-pit mine, complex ore processing and beneficiation plant and significant infrastructure and logistics networks.

The works to be performed include load and haul, drill and blast and run of mine re-handling with the drill and blast component to be undertaken by NRW’s wholly owned subsidiary, Action Drill & Blast Pty Ltd.

In addition, the work includes train loading and rehandling of the product stockpiles together with miscellaneous dayworks at the mine site, camp and access roads.

Key mining equipment required for the project including three 600 t excavators and a fleet of 220 t trucks is being progressively mobilised to site for commissioning, with works commencing in March 2022.

NRW Chief Executive Officer, Jules Pemberton, said: “I am delighted that NRW has now been formally awarded the contract and I look forward to a long and successful partnership with Karara Mining.”

Karara Chief Executive Officer, Changjiang Zhu, said: “NRW is an established Western Australia-based mining and civil contractor with extensive open-cut mining experience gained through a number of successful mining operations in the state. Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising a broad range of mining, construction and engineering services. We look forward to commencement of mining services early next year.”