NRW preferred for Karara mining services


NRW has received a letter of intent from Karara Mining for a mining services contract worth around $700 million at the Karara iron ore mine in Western Australia.

The five-year contract would employ around 250 people in the Gascoyne region and is subject to the two companies agreeing on terms.

The contract would involve load and haul, drill and blast, and run-of-mine re-handling.

NRW chief executive officer Jules Pemberton said his company had great experience providing contracts of this nature.

“NRW has a long history as a high-quality provider of mining services to our clients in the iron ore industry, and I look forward to a long and successful partnership with Karara Mining,” he said.

NRW has previously been contracted by Karara from 2010 to 2012, when it was awarded $210 million for preliminary construction work at Karara’s crushing and processing facility.

The Karara mine is reportedly the largest of its kind in the region, with a mine life of over 30 years.

Karara chief executive officer Changjiang Zhu said NRW had impressed the company with its expertise in similar operations.

“NRW is an established West Australian based mining and civil contractor with extensive open cut mining experience gained through a number of successful mining operations in the state,” Zhu said.

“Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising broad-range mining, construction and engineering services.”

NRW expected around $170 million would be spent on equipment over the five-year term, including three 600-tonne excavators and a fleet of 220-tonne trucks.

Zhu said the agreement and following mining services were expected to commence in early 2022.


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