- Strandline Resources (STA) has engaged mineral sands mining contractor, Mine Site Construction Services (MSCS), for the Coburn project in WA
- MSCS is providing and operating the mining fleet associated with ore mining, overburden removal, pit backfill and land recontouring at the project
- Strandline says awarding the long term contract is a key step for the Coburn project, which is expected to begin production in the final quarter of 2022
- Company shares are trading flat at 20.3 cents at 2:58 pm AEST
Strandline Resources (STA) has engaged mineral sands mining contractor, Mine Site Construction Services (MSCS), for the Coburn project in Western Australia.
MSCS is a WA-based, family-owned contract firm with 40 years’ industry experience specialising in mining services, civil engineering, earthmoving, infrastructure and quarrying services.
Under the long term deal, MSCS will be responsible for conventional open pit dry mining of ore at a rate of 23.4 million tonnes per annum, overburden removal, pit backfill and land recontouring, and general mining-related earthworks at STA’s Coburn Project.
The contract mining term is expected to cover the first seven years of production and provide a safe, reliable and efficient mining solution for Coburn.
Strandline Managing Director Luke Graham said the contract was a key step in its strategy of becoming a high-margin producer of critical minerals.
“We are delighted to establish this important long-term relationship with MSCS, a highly experienced WA-based mining contractor,” he said.
“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 definitive feasibility study.”
The Coburn Project has an initial mine life of 22.5 years and projected revenue of $4.4 billion during that time. However, there’s potential to extend the mine life a further 15 years by converting mineral resources.
MSCS is preparing to mobilise to site to conduct mine establishment and pre-strip activities.
Strandline is on track to begin producing heavy mineral concentrate in the December quarter of 2022 and has already secured binding offtakes with top-tier customers for all of the initial production.
Company shares were trading flat at 20.3 cents at 2:58 pm AEST.