Saracen Minerals has selected Byrnecut Australia as the preferred tenderer for the $440 million underground mining contract at its Carosue Dam operation in Western Australia.
The contract comes after a competitive tender process that attracted several Tier 1 underground contractors.
It is the largest single contract in Saracen’s history, driven by its operation’s growing mine life.
The contract is for underground development and production stoping at the Karari and Deep South underground mines (Carosue Dam). The initial term is four years with the potential for a one year extension.
Byrnecut holds major underground mining services contracts for a number of operations, including Newcrest’s Telfer gold mine, Northern Star’s Jundee gold mine, St Barbara’s Gwalia gold mine and Sandfire’s DeGrussa copper-gold mine.
Saracen managing director Raleigh Finlayson said the company looked forward to partnering with Byrnecut to build on the underground operations at Carosue Dam.
“This is the largest single contract in Saracen’s history, with the scale and duration of the contract driven by our confidence in a large and rapidly growing gold system at Carosue Dam,” he said.
Finlayson also thanked current contractors RUC Cementation Mining and Pybar Mining Services for their contribution to ramp up of the Karari and Deep South underground mines to more than 160,000oz gold per annum.
The formal award of the contract is subject to agreement of the final terms and conditions.