Watpac awarded gold mine contract

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Image credit: http://www.rameliusresources.com.au/sites/4ea12f9550ee853e00000006/contents/content_instance/554ff12a50ee8540990000f9/files/20150511_Go_Ahead_for_Kathleen_Valley_Gold_Mine.pdf

Watpac Limited has announced that it has been awarded a $17 million contract by Ramelius Resources to provide mining services for the recently approved Kathleen Valley gold project in WA. 

Image credit: http://www.rameliusresources.com.au/sites/4ea12f9550ee853e00000006/contents/content_instance/554ff12a50ee8540990000f9/files/20150511_Go_Ahead_for_Kathleen_Valley_Gold_Mine.pdf
Image credit: www.rameliusresources.com.au

Under the terms of the agreement, Watpac will be in charge of clearing the surface for the open pit mine, as well as removing top soil, drilling and blasting the main pit.

Aside from the abovementioned responsibilities, the company will also provide a year-long excavation and dump truck mining for the Mossbecker and Yellow Aster pits at the same project.
Ramelius said open pit mining was expected to begin on July 1 with first ore being trucked to the Checker mill at Mt Magnet later in the September quarter.

Ramelius acquired Kathleen Valley last year in a $4 million deal with Xstrata Nickel Australasia, a subsidiary of mining giant Glencore.

“This is Watpac’s third project with Ramelius, and is testament to our approach of working closely with our clients to maximise their production and cost efficiencies. We have a highly capable and dedicated team in our Mining & Civil business and believe Watpac can continue to operate successfully in this market notwithstanding the current challenging conditions,” Watpac Managing Director, Martin Monro said in the company’s ASX Announcement.

“Watpac has been undertaking mining services works at Ramelius’ Mt Magnet Gold Mine since 2011, and we also delivered the Coogee Open Pit project for Ramelius in 2014. We are delighted to be building on our already strong relationship with Ramelius and look forward to commencing operations at Kathleen Valley,” said Watpac General Manager Mining & Civil, Russell Hall.

Watpac is currently providing mining services at Hanking Gold’s Southern Cross gold operations, Pluton Resources’ Cockatoo Island iron ore project and Iluka Resources’ Tutunup South mineral sands mine, as well as upgrade works for the Water Corporation of WA at Logue Brook Dam and the construction of a new Tailings Storage Facility at Sirius Resources’ Nova deposit.

The company reported a net profit of $6.2 million for the first half of the 2015 financial year.