Develop Global Limited has awarded a A$70 million ($48 million) open-pit mining and crushing contract to Kalgoorlie-based MLG Oz Limited for its Pioneer Dome lithium mine.
The contract ensures Pioneer Dome is on track for production in the December quarter of this year, being one of the major commercial steps in the lead up to production and cashflow at Pioneer Dome, following the Board’s Final Investment Decision earlier this month and execution of a binding offtake agreement with Trafigura1 covering a minimum of 750,000 t of DSO lithium.
The scope of the contract includes drill and blast, load and haul, crushing and screening and all other supporting surface activities. It has an approximate duration of 12 months.
MLG was selected following a competitive tender process focused on reducing execution risk and selecting a contractor with strong operational capability in the Goldfield’s region and relevant experience in surface mining and hard-rock lithium, Develop says. MLG’s Kalgoorlie headquarters, significant regional workforce and maintenance facilities close to Pioneer Dome underpinned its selection. MLG also has extensive lithium crushing experience, including its role at Mineral Resources’ Bald Hill lithium mine.
To complement MLG, Develop will augment the owner’s team at Pioneer Dome with experienced production staff.
MLG’s mobilisation is targeted for mid-July 2026, with mining operations scheduled to commence in August 2026 and crushing from September 2026.
Develop Managing Director, Bill Beament, said: “Awarding this contract to MLG is a major piece of the Pioneer Dome puzzle. With our FID taken, Trafigura offtake locked in, all approvals in place and now our mining contractor appointed, Pioneer Dome is ready to go. This means we are very well-positioned to capitalise on the strong lithium market, particularly the surging demand for DSO material, with production and cashflow to ramp up in the December quarter.
“There is also potential to increase the resource grade, as demonstrated by the latest strong infill drilling results. These reveal consistently thick zones of more than 1.45% Li2O throughout both the planned open pit and underground. These high grades bode well for the impending updates to the resource model and mine plans.”