Byrnecut will take over as OZ Minerals’ underground mining contractor at the Carrapateena mine in South Australia after incumbent contractor, Downer, announced plans to divest its mining services business.
This will take place across the next seven weeks in a transitional period between OZ Minerals, Byrnecut and Downer.
OZ Minerals’ contract with Byrnecut will continue for five years and is valued at around $130 million per year.
Byrnecut has provided underground mining services to OZ Minerals’ Prominent Hill mine in South Australia for the past 10 years and secured a contract renewal in 2020.
Downer chief executive Grant Fenn said the company planned to transfer the majority of its existing roles to Byrnecut.
“Downer’s exit from underground mining follows the sale of Open Cut Mining West, Downer Blasting Services, the Snowden consulting business and our share in the RTL Mining and Earthworks joint venture,” he said.
“We will work closely with OZ Minerals and Byrnecut over the next seven weeks to ensure a smooth transition of services at Carrapateena.
“This includes the objective of providing roles for the majority of Downer’s existing workforce and the transfer of equipment from Downer to Byrnecut.”
The transition will also provide the transfer of Downer’s equipment to Byrnecut.
“OZ Minerals thanks Downer for the work undertaken over the past two and a half years, and for their major contribution in reaching development milestones at Carrapateena,” OZ Minerals stated.
Byrnecut will take full control of Carrapateena’s mining services starting March 4.