Barminco has been awarded the underground development contract for the Dugald River project by MMG.
The contract, worth approximately $100 million, will run over two and half years and will see the development of two exploration declines to access the mine’s zinc, lead and silver orebody.
It will progress at around 900 metres annually.
The contract has been working with MMG since 2001, providing underground mining at its Rosebery mine in Tasmania.
Work on the decline at Dugald will begin immediately and will continue until June 2014.
It will employ around 100 people.
"Our partnership with MMG has grown over many years and it is very pleasing to be extending this relationship to the Dugald River project, and increasing our presence in the burgeoning mineral producing region of northwest Queensland," Barminco CEO Neil Warburton said.
The mine is located near Cloncurry, in Queensland.