Underground hard rock mining contractor Barminco has won a three year development and production mining contract at the Mount Lyell copper, gold and silver mine in Tasmania.
Barminco is set to begin works on September 1.
The project will employ 200 people. The company is currently recruiting from the local workforce for Mount Lyell.
Spokeswoman for Barminco Katryn Fremlin told Australian Mining the contract will run for three years.
But she was unable to disclose the contract value.
Its decline development will be 3600 metres per annum and it will produce 2.47 million tonnes of ore a year.
“We are delighted to be working on this project with CMT,” Barminco CEO Peter Stokes said.
“During a time of market volatility where efficiencies are paramount, the award of this contract demonstrates our ability to value-add as a contractor and our capacity to deliver on our growth strategy.”
Australian Mining recently reported on Barminco breaking its own operational record at MMG’s Dugald River mine.
“We did 700 metres advance with a single jumbo in one month,” Stokes said.
He said the company’s record makes him believe in contractors on site, which may become scarce as mines try cut costs by adapting the owner/operator model, and increase profits within their own business.
Barminco won an underground mining contract for AngloGold Ashanti’s Sunrise Dam mine in 2011.
The contract was worth an estimated $500 million making it the second largest underground mining contract ever awarded in Australia, and the largest for Barminco.
Mount Lyell is Barminco’s second largest contract after Sunrise Dam.
Mount Lyell in Queenstown, Tasmania, is the oldest operating mining field in Australia, operating for more than 100 years.