Rex Minerals Ltd has executed a Letter of Intent with Hitachi Construction Machinery (Australia) Pty Ltd (HCA), completing a critical preparation stage for the Hillside Copper-Gold Project.
This LOI covers HCA’s allocation of Ultra-class mining equipment to Rex. The equipment will cost more than $100 million and will comprise four excavator units ranging in size from 250 to 600 tonnes, as well as twelve haul trucks with a capacity of 300 tonnes.
According to Rex, the LOI secures the build slots for certain long-lead-time products to satisfy the Hillside Copper-Gold Project timeframe and crucial mining equipment availability.
The LOI is subject to final specifications and pricing, and Hillside retains access to all financing options and operating models, including the ability to assign the equipment to a third-party mining services provider should Rex choose to do so.
HCA intends to provide South Australian-based facilities and after-sales support in addition to the Ultra-class fleet. This assistance will involve parts inventory, simulation-based staff training, technical support, and equipment servicing.
“This strategy of locking in the fleet via an LOI secures the Ultra-class fleet for Rex without any immediate financial commitment, and ensures that we can push forward with and adhere to our project timeline,” Rex Chief Executive Officer Richard Laufmann said.
“We are excited to be working with Hitachi after completing an exhaustive examination of our potential mining fleet options. As detailed in this announcement, the activity levels for all disciplines in relation to Hillside are increasing and the process remains focused on first production by Q4 CY2025,” Laufmann added.
Additionally, Rex reported continuous progress at the Hillside Copper-Gold Project on several fronts, including Project Equity Partnering, Debt Funding, and Design Engineering.
