Vault Minerals will shift load-and-haul operations at its King of the Hills (KoTH) open-pit mine in Western Australia to an owner-operator model, effective 1 January 2027.
This transition will be made after the expiry of its present mining services contract at the end of next year.
Following a rigorous tender process and thorough assessment, Vault has decided that the owner-operator model offers superior cost efficiency and enhanced cost control, enabling direct management of operating costs and improved optimisation.
The company said operational agility will improve, as Vault can dynamically adjust mine plans, schedules and priorities to match evolving conditions and strategic goals.
Vault added that this model offers workforce stability because a dedicated site-based team would foster continuity, productivity and strong safety behaviours.
The company further pointed to capital investment benefits from ownership of mining equipment, emphasising that the equipment provides enduring value with potential for resale or redeployment.
Vault also anticipates that owner-operated mining will facilitate continuous improvement and the integration of innovation, technology and operational efficiencies throughout the mining value chain.
The shift follows a significant increase in KoTH open-pit ore reserves, announced in May 2025, which extended the mine’s life to 13 years.
Vault added that stockpiles generated during this period will supply baseload mill feed for its Leonora operations for an additional five years.
To accommodate an anticipated 35% increase in mining activity, Vault intends to roll out a larger and more productive fleet, comprising one 260 tonne (t) and two 360t excavators, supported by 190t haul trucks and ancillary equipment.
Over the life of the ore reserve, average material movements are projected to reach around 14 million bank cubic metres per year.
A transition plan will be executed throughout the 2026 financial year and the first half of the 2027 financial year to enable a smooth start to owner-operated mining arrangements.
Vault plans to retain contract drill and blast services at KoTH, selecting a preferred contractor for a five-year term beginning 1 January 2027, contingent on final contractual agreements.
The company said that deposits of around A$2m ($1.3m) for long-lead fleet items are expected to be paid in the second quarter of 2026, and that equipment financing and hybrid funding options are currently being evaluated.
Earlier this year, in February, Vault announced an A$80m expansion of its KoTH processing facility.
