Forrestania Resources has awarded a mining contract valued at around $104.2m (A$145m) for its Johnson Range Project in Western Australia to MEGA Resources.
The contract will see MEGA carry out all open-pit mining activities, which include drill and blast operations, mining, transport of ore and waste, infrastructure development and operational support for the duration of the project.
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The mining activities are set to take place over a two-year time frame.
Forrestania made the selection following a competitive tender process.
MEGA was chosen based on its operational capability, management team experience, mining fleet and record of delivering integrated mining solutions.
MEGA director Kiran Visireddy said: “We are pleased to have been selected by Forrestania Resources as the mining contractor for the Johnson Range Project.
“This award reflects the strength of our team, our operational capability and our commitment to safely delivering quality outcomes for our clients.
“We look forward to working closely with Forrestania to successfully execute the project and establish a productive long-term partnership built on safety, performance and collaboration.”
The Johnson Range Project is a key part of Forrestania’s growth plans. The appointment of MEGA as mining contractor is considered to be a significant milestone, moving the project from the planning to execution stage.
The contract sets out a framework intended to provide operational flexibility and cost management while meeting required safety and environmental performance standards.
Work on the project is expected to commence after final project preparation activities have concluded.
Forrestania executive chairman David Geraghty said: “The award of the Johnson Range mining contract is a significant step forward for Forrestania and reflects the considerable effort undertaken by our team to establish a robust execution strategy.
“MEGA Resources was selected as the preferred contractor based on its technical capability and alignment with Forrestania’s performance expectations. We look forward to working closely with MEGA to safely and efficiently deliver the Johnson Range Project and create value for our shareholders.”
Earlier this month, Forrestania selected MEGA to undertake the open-pit mining development at the Tycho Gold Project in Australia.
