Fortescue Metals Group Limited (FMGL) has announced that it will transition to a full owner operator model at its Christmas Creek mining operations.
The company said that the change will take effect from the completion of the current mining services contract with Downer EDI Limited which ends of 30 September 2016, and that production from the mine will not be impacted during the transition.
According to CEO Nev Power, a comprehensive change management plan has been developed which will allow for the safe and orderly changeover of operations.
“The Downer team have been involved with mining at Christmas Creek since the outset and have played an important role in Fortescue’s development of our world class facilities in the Chichester Hub,” Mr Power said.
“Adoption of an owner model will further reduce Fortescue’s costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations. Our clear focus remains on safety, production and costs. Our ability to generate strong earnings and cash flow will enable further improvement in our balance sheet and return to our shareholders.”
Downer has provided mining services to Fortescue at the Christmas Creek mine since September 2010. The company said that it intends to provide a safe and orderly handover of the Christmas Creek mine operations to Fortescue over the course of the next six months.