Strandline Resources has executed a mining services agreement with mineral sands mining contractor Mine Site Construction Services (MSCS) as part of its preparations to commence production at the Coburn mineral sands project in Western Australia.
According to the company’s statement, the scope of the mining services agreement includes conventional open pit dry mining of ore at a rate of 23.4Mtpa, overburden removal, pit backfill and land recontouring and general mining-related earthworks.
Strandline Managing Director Luke Graham said the contract mining term is expected to cover the first seven years of production and provides a safe, reliable and efficient mining solution for Coburn.
“We are delighted to establish this important long-term relationship with MSCS, a highly experienced WA-based mining contractor,” Mr Graham continued.
“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 DFS.”