Pybar Mining Services has secured a A$65m ($48.8m) contract to build a 600m-deep, 7,500m-long decline with ground infrastructure and surface ventilation at OZ Minerals' Carrapateena iron-oxide copper-gold deposit in South Australia.
Construction of the Carrapateena decline is set to begin shortly.
OZ Minerals managing director and CEO Andrew Cole said: “Carrapateena has compelling project economics and by starting the decline now, we are further de-risking the project and creating more shareholder value.
“Building the decline now creates approximately $90m in net present value.”
Under the contract, Pybar’s services will include construction of a 20m-deep box-cut, a total of 7,500m of decline and lateral development.
Other services being provided are 1,500m of surface ventilation raises, and supply of all surface infrastructure to support the development.
Cole further added: “This is absolutely the time to be building a project as we are getting access to the best teams at the best prices.”
Over the next two weeks, Pybar will be mobilise to site and as part of the agreement, it will use latest equipment to help increase efficiency at the mine.
The first firing for the decline is expected to take place in September this year.
Pybar Mining Services CEO Paul Rouse said: “When you look around the globe, Carrapateena has to be one of the most exciting and compelling new mining projects around."
Carrapateena deposit is in South Australia on the eastern margin of the Gawler Craton and located close to key infrastructure in safe mining jurisdictions.