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[Ferro-Alloys.com] NRW Holdings Limited has announced that a letter of intent has been received from Karara Mining Ltd to award a contract for the mining services works at the Karara Iron Ore mine in the Gascoyne region of Western Australia. Subject to reaching agreement with Karara, the anticipated value of the contract is approximately AUS$702 million over a 5 year duration with a project workforce averaging around 250 personnel. The works to be performed include Load & Haul, Drill & Blast and ROM Re-Handling with the drill & blast component to be undertaken by NRW’s wholly owned subsidiary, Action Drill & Blast Pty Ltd. In addition, the work includes train loading and re-handling of the product stockpiles together with miscellaneous dayworks at the mine-site, camp and access roads.

 

Procurement of key mining equipment will start immediately after execution of an agreement with Karara and the site mobilisation and establishment will commence during the months leading up to the works commencing on site in March 2022.

 

NRW estimates equipment CAPEX of approximately AUD 170 million to be progressively acquired over the term which will include the purchase of three 600 tonne Face Shovel Excavators and a fleet of 220 tonne trucks.

 

Located 200 km south-east of Geraldton in the Shire of Perenjori, Western Australia, Karara is the largest mining operation and the first major magnetite mine in the mid-west. It produces a premium, high-grade concentrate product for export to steelmakers. With an expected mine life of 30+ years, Karara’s operation includes a large opencast mine, complex ore processing, and beneficiation plant and significant infrastructure and logistics networks.

 

source：SteelGuru Business News