Capital has announced the award of a new mining services contract with Ivindo Iron SA, majority-owned by Fortescue, at its namesake project in Gabon.

The earthmoving and crushing services contract has been announced at the same time as the company has extended its revolving credit facility.

Ivindo is in the northeast of Gabon and is one of the world’s largest undeveloped, high-grade haematite iron ore deposits with the potential to become a globally significant iron ore mine, according to Ivindo Iron, which is the operating entity for the Belinga project and a company that Fortescue has a 72% indirect interest in.

Earlier this year, Fortescue, through Ivindo Iron SA, signed the Mining Convention for the Belinga iron ore project in Gabon with the Gabonese Republic, paving the way for first mining to begin in the second half of 2023. Belinga is part of the wider Ivindo project.

The Capital contract has a term of up to five years and will generate approximately $30 million of revenue per year once fully operational, the London-listed company says. It involves both earthmoving and crushing services. Capital says it will use existing equipment and is in the process of purchasing circa-$15 million of additional equipment to service the contract.

Capital has already begun mobilising equipment to the site. This mining and crushing services contract is in addition to the three-year reverse circulation and diamond drilling services contract with Ivindo, announced earlier this year, where drilling recently commenced.

Peter Stokes, Chief Executive Officer, said: “We are thrilled to have been awarded the mining and crushing services contract at Ivindo. This is our second significant mining services contract and continues our strategy to diversify our revenue stream through an expanded service offering. We look forward to working closely with Ivindo Iron to expand our relationship from drilling services to mining and crushing services and ensure a rapid ramp up on this world-class deposit.”