Aus Tin commences owner mining at Granville after ‘frustrating’ delays

Aus Tin Mining has terminated its contract with Jemrok at the Granville East mine in Tasmania following the collapse of the mining and civil contractor.

Jemrok had operations in New South Wales, Victoria and Tasmania, and was headquartered in Wynyard. The contractor worked in civil infrastructure, mining services and vehicle maintenance.

The contractor’s liquidation has caused a period of lost production at Granville, but Aus Tin expects ore mining to resume in the coming fortnight.

Aus Tin has adopted owner mining as opposed to appointing another contractor to minimise further disruption at Granville. 

“The appointment of liquidators to Jemrok and the subsequent termination of the contract concludes a frustrating period of delays and declining productivity at Granville,” Aus Tin chief executive Peter Williams said.

“We look forward to assuming full control over mine production and working with the new employees and suppliers for the delivery of increased ore to the processing plant with a commensurate increase in concentrate production.”

Aus Tin previously contracted Jemrok for crushing and ore haulage services, but Aus Tin is now progressing discussions with a third party for these services.

The company’s general manager of operations will also directly oversee mining operations to maximise mining efficiency of ore grade and waste removal. Aus Tin will also utilise existing equipment at the site and employ ex-Jemrok employees.

Aus Tin’s decision followed multiple reports of a decline in productivity at Granville, first in January and then in February 2019. The company expects to continue sales of concentrate within a month.

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