Viento has won the open pit mining, crushing, and screening contract for BC Iron and Fortescue Nullagine iron ore joint venture.
The contract, worth around $40 million, will see Viento provide the mining and crushing and screening works for around two million tonnes per annum of ore at the Warrigal open pit, for a period of two years.
Viento welcomed the win, which follows the recent completion, by Viento, of the site's Outcamp 4 and 5 haul roads.
"This is an exciting opportunity for Viento to extend our capabilities beyond contracting and into contract mining and processing," Viento ED John Silverthorne said.
According to BC Iron, the contract is expected to aid the JV in reducing C! cash costs by $2 to $3 per wet metric tonne,
"If these savings are translated to other mining areas in the second half of CY15, this would equate to overall savings achieved to date of $4 to $6 per wet metric tonne, or 15 to 25 per cent of the Nullagine mine site costs," BC Iron said in a company statement.
This is predicted to drive down cash costs at the site for the Dec-14 to Jun-15 period to the lower end of the $47 to $51 per wmt range.
BC Iron's managing director Morgan Ball welcomed Viento's strategy to help slash costs at the operation.
"Our contracting strategy is key to our 2015 cost reduction efforts and it is pleasing to achieve meaningful savings for the Warrigal hub," Balll said.
"The pricing and competitiveness seen in the tender process provides comfort that further cost savings can be achieved through the reassessment of the main mining, crushing and screening contract and the road haulage contract in the second half of 2015."
As part of the contract Viento will provide and operate the load and haul, and crushing and screening equipment, and will also purchase a Vermeer 1655 surface miner from Fortescue.
The contract is slated to start next month.