Golding Contractors has secured mining services contract, worth about $117.1m (A$179m), from EQ Resources to restart the open pit mining operations at its Mt Carbine tungsten mine in Australia.
Located 120km north-west of Cairns in Far North Queensland, the Mt Carbine project comprises tenements namely ML4867, ML4919, EPM14871, EPM14872 and EPM27394.
Under the terms of the contract, Golding Contractors will provide all mine planning, scheduling and operations including moving waste, ore and low-grade stockpile material to the processing plant.
During the contract period, the approximate material movement will include nearly 16.3 million tonnes of mine waste material, about six million tonnes of mined ore and an estimated 2.9 million tonnes of low-grade stockpile material.
The contract is expected to run for about 70 months.
Golding Contractors CEO Geoff Caton said: “This Contract is the culmination of a period whereby the Parties have been working closely together under an early engagement contract.
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“This has been a very positive experience for Golding and the team are now very excited to move to the next phase with EQR.”
EQR said that the two firms will split carry out the contract in two phases to “ensure a refined understanding of the schedule of costs in regard to the unique nature of mining hard rock tungsten”.
“Phase 1 is estimated at 12-18 months which will be completed on a rates and cost-plus basis, thereafter, the Parties intend to transition to a rise and run matrix rates, on fleet composition and material type basis,” the firm noted.
The mine produced tungsten between 1974-1987. It was closed due to drop in the prices at that time as a result of oversupply from Chinese producers.