ACM and AEL win Sandfire mining contracts

Australian Contract Mining (ACM) and Abesque Engineering Limited (AEL) have been awarded the mining and processing contracts for Sandfire’s DeGrussa project.

ACM won the initial three year underground mining services contract, which began last month, with the contractor mobilising to the copper gold site.

It has an estimated worth of $129 million over the first three years, with Sandfire able to renew the contract for an additional two years on the same terms and conditions.

Abesque Engineering, a subsidiary of the Forge Group, was awarded the process plant package engineering, procurement and construction (EPC) contract for the processing facility at DeGrussa.

The EPC contract, which is worth around $65 million, consists of the design, supply, installation and eventual commissioning of the minerals processing facilities.

Site works are set to begin in September this year, with completion scheduled for August next year.

The plant will have a capacity of 1.5 million tonnes per annum and produce around 230 000 dry tonnes of copper concentrates per annum.

Sandfire managing director Karl Simich said he was happy to announced the awarding of these contracts for underground mining and process plant construction.

“The underground mine will form the centerpiece of the DeGrussa operation once the initial open pit operation is concluded, and we expect to be mining underground for many years into the future.”

Image: Blasting at Sandfire’s DeGrussa project.

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