EQ Resources Limited (EQR) announced the signing of a Mining Services Agreement with Golding Contractors Pty Ltd, an NRW Holdings Limited subsidiary, for the resumption of Mt Carbine open pit mining operations.
According to EQR, this concludes the Parties’ positive first phase of engagement. Several areas have been settled at this time, including pit design, equipment selection, contractor involvement, stakeholder engagement, and scheduling.
The Parties decided to divide the Contract into two phases to ensure a clear understanding of the cost schedule in light of the specific nature of hard rock tungsten mining. This was done to assist de-risk the Project and assure scope delivery without requiring considerable risk pricing upside in the Contract. The duration of Phase 1 is projected to be 12-18 months, and it will be completed on a rates and cost-plus basis. Following that, the Parties propose to convert to a rise and run matrix rates based on fleet composition and material type.
“We’re very happy with the relationship we’ve developed with Golding over the past year. It’s been a collaborative process and has been a positive engagement throughout. It feels we’ve gained a long-term partner rather than just a contractor. Their level of professionalism, proactive approach to problem solving and willingness to work with the EQR team has really set them apart,” EQR CEO Kevin MacNeill said.
With Golding staff on-site full-time, the transition to open-cut production is moving towards first ore delivery and processing. Equipment has begun to arrive, staff appointments are being made, and infrastructure for the mining offices is being built. As the Project moves towards open-cut mining, Golding will employ some EQR equipment and staff.
“I am delighted that the Golding team have now executed the contract with EQR. This Contract is the culmination of a period whereby the Parties have been working closely together under an early engagement contract. This has been a very positive experience for Golding and the team are now very excited to move to the next phase with EQR,” Golding CEO Geoff Caton said.
