CIMIC Group’s subsidiary Thiess has received a A$190m ($134.94m) contract from BHP Nickel West to continue the provision of mining services at Leinster mine in Western Australia.

Under the terms of the contract, Thiess is required to provide underground mining services and equipment to support Leinster’s lateral development and ore production for a term of at least two years.

“We have a deep understanding of the mine and our team is well placed to help support its next phase of development and production.”

CIMIC Group CEO Michael Wright said: “This contract recognises our close working relationship with BHP Nickel West at Leinster underground mine. It acknowledges our ability to work flexibly with BHP Nickel West to meet the mine’s growing development and production needs.”

The scope of work includes load and haul, shotcreting, cable bolting and full fleet maintenance services.

Thiess managing director Douglas Thompson said: “We are pleased to continue our work with BHP Nickel West at the Leinster underground mine. We have a deep understanding of the mine and our team is well placed to help support its next phase of development and production.”

The Leinster underground nickel mine is located within BHP Nickel West’s Leinster Nickel operation, in the northern goldfields of Western Australia.

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By GlobalData

Thiess began work at the Leinster project in 2016, when the team used sub-level open stoping mining methods to excavate about 610m of horizontal development to access around 230,000t of ore.

In recent months, reports emerged regarding the potential sale of BHP’s Nickel West business as part of the company’s ongoing disposal process.

Last month during investor and analyst briefing Q&A, BHP chief executive Andrew Mackenzie said: “We’re happy to retain Nickel West for now, but it could go either way in the future and the people who run that asset are well aware of that.”