Strandline Resources has awarded Mine Site Construction Services (MSCS) with a seven-year mining services contract at the Coburn mineral sands project in Western Australia.
The contract will see MSCS mine 23.4 million tonnes of ore per year, remove overburden, and provide pit backfill, land recontouring and mining-related earthworks.
Strandline managing director Luke Graham said this marked a significant milestone for the company’s operating costs at Coburn.
“This agreement, when combined with the previously-announced operating contracts, including for the supply of electricity, LNG and fuel on site, means Strandline has already locked-in over half of its operating costs in line or better than the assumptions contained in the Coburn DFS (definitive feasibility study),” Graham said.
“We are delighted to establish this important long-term relationship with MSCS, a highly-experienced WA-based mining contractor,” he said.
Built on three generations of family ownership, MSCS has 40 years of combined experience behind the company, spanning mining services as well as civil engineering, earthmoving, infrastructure and quarrying.
MSCS’ specific experience in bulk materials handling and mining, including large dozer push operations in mining sands applications, leaves it well placed to meet Strandline’s requirements at Coburn.
MSCS will soon mobilise for mine establishment and pre-strip activities before Strandline aims for first production of heavy mineral concentrate in the final quarter of 2022.
The contract also included conditions to enhance the operation’s environmental and social governance (ESG) by managing strong Indigenous relations and emissions reduction initiatives.
The contract followed a final investment decision by Strandline in May, supporting a DFS which indicated a 22.5-year mine life and a throughput of 23.4 million tonnes per annum.
This DFS was accompanied by a scoping study which discussed the potential to extend the mine life to 37.5 years (out to 2060).