BGC Contracting has secured a $520m contract extension with US-based Cliffs Natural Resources at its Koolyanobbing iron ore project in the Yilgarn region, 400km north-east of Perth, Australia.

The current five-year contract is set due to come to an end in 2017, and will be extended through to 2022 under the new deal.

BGC will continue providing completing mining services for the project, which include drilling, blasting, loading, hauling and dumping.

Other services include crushing, and screening, as well as train load-out.

"We have helped them succeed at Koolyanobbing in what has been a difficult market for all iron ore miners."

BGC Contracting CEO Greg Heylen said: "BGC’s long-standing relationship with Cliffs has seen the two companies work collaboratively over the better part of the last decade and during this time we have continuously and reliably delivered on the contract.

"This has been a tough period as the iron ore price has fallen, and I believe that by maintaining strong relationships with Cliffs at all levels of our organisation, we have helped them succeed at Koolyanobbing in what has been a difficult market for all iron ore miners."

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By GlobalData

BGC Contracting has been working at the Koolyanobbing project since April 2004.

The project was acquired by Cliffs Natural Resources from Portman Iron Ore in December 2008.

The Koolyanobbing operation is in Western Australia, 54km north of Southern Cross and comprises the company’s Asia-Pacific Iron Ore business unit.

Ore from the project is transported by trains from the northernmost deposits to the crushing facility.

Ore is blended, crushed and screened at the plant into a direct lump and fines shipping product, which is transported 583km by rail to the Port of Esperance, on Australia’s southern coast.