Atlas Iron says it has awarded the major haulage, mine load and haul as well as drill and blast contracts for its McPhee project in Western Australia, bringing the iron ore project one step closer to construction and commissioning.

With these contracts, the total number of major contracts awarded for the project is over 50%, with five of nine now awarded. All contracts are subject to the relevant government approvals being approved.

The McPhee project is 100 km north of the Roy Hill mine, and is situated between the townships of Marble Bar and Nullagine. The project scope includes haulage of up to 10 Mt/y of crushed ore to Roy Hill for processing, transport to the port and shipping. For this scope, the haulage contract was split between MGM (60%) and REGROUP (40%).

MACA has been awarded the mine load and haul contract, and a separate contract for drill and blast mining services has been awarded to the Nyamal joint venture, EWP-Ozland.

Indigenous contractor, East West Pilbara (EWP), is a Nyamal-owned firm, with EWP-Ozland previously awarded civil and construction works at Atlas Iron’s Miralga Mine, which has been recognised as an industry first, it said.

This announcement marks the first instance of REGROUP, a full-service civil construction, mining services, labour resourcing and equipment hire company, being engaged as a contracting partner.

CEO Group Projects at Hancock Prospecting Group, Sanjiv Manchanda, noted: “The McPhee project is another step in the successful integrated Hancock Group development approach focusing
on the product strategy for the broader group. Atlas will continue to engage local and Indigenous contractors and maintain a practical approach to operations.”

McPhee is expected to commence operations in the 2024 financial year with first ore reaching Roy Hill in thr 2025 financial year. This is subject to the regulatory approvals being granted in early 2023, which will enable the contractors to mobilise to site and commence the works under their respective contracts.