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NRW cements Karara Mining services contract

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.”

NRW in line for A$702 million Karara Mining iron ore gig

NRW has received a letter of intent from Karara Mining Ltd to carry out mining services works at the Karara iron ore mine in the Gascoyne region of Western Australia.

Subject to reaching agreement with Karara, the anticipated value of the contract is around A$702 million ($529 million) over a five-year duration with a project workforce averaging circa-250 personnel.

MACA, through its recently acquired Mining West business, currently holds the contract mining agreement at Karara.

The works to be performed include load and haul, drill and blast, and run of mine re-handling. The drill and blast component will be undertaken by NRW’s wholly-owned subsidiary, Action Drill & Blast Pty Ltd. In addition, the work includes train loading and re-handling of the product stockpiles together with “miscellaneous day works” at the mine site, camp and access roads.

Karara is the largest mining operation and the first major magnetite mine in the Mid West region. It produces a premium, high-grade concentrate that it exports 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,” NRW said.

NRW estimates an equipment capital expenditure of around A$170 million to be progressively spent over the term, which will include the purchase of three 600 t face shovel excavators and a fleet of 220 t trucks.

NRW CEO, Jules Pemberton, said: “With a strong local presence in the area through our Geraldton-based DIAB Engineering business and our mining contract with Gascoyne Resources at the Dalgaranga mine site, we look forward to continuing to support the existing and highly experienced workforce on site through this transition, as well as creating employment opportunities for the Gascoyne region community.”

Karara CEO, 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 negotiation of an agreement with NRW and commencement of mining services early next year.”