BGC win iron ore contract

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BGC Contracting has won a five year contract extension with Cliffs Natural Resources.

The $520 million contract will see BGC Contracting extend their operations at the Koolyanobbing iron ore project past the original end date of 2017 to 2022.

It has been on site since 2004, initially providing off-road haulage, which was expanded to include mining operations in 2007.

Under the contract BGC will continue to provide mining services, in including drilling, blasting, loading, haulage, dumping, crushing, screening, and train load-outs.

Greg Heylen, BGC Contracting’s CEO, explained the extension came on the back of the contractor’s “ability to meet Cliffs’ safety and production targets during a challenging period for iron ore producers”.

“This has been a tough period as the iron ore price has fallen, and I believe that by maintaining strong relationships with Cliffs at all levels of our organisation, we have helped them succeed at Koolyanobbing in what has been a difficult market for all iron ore miners,” Heylen said.

The project is located in WA’s Yilgarn region, 400 kilometres north east of Perth.