Moly Mines Ltd has awarded a $1.1 billion, seven year mining and earthmoving contract for the Spinifex Ridge Molybdenum Project to Perth-based contracting group Macmahon Holdings Ltd.
Moly Mines Ltd has awarded a $1.1 billion, seven year mining and earthmoving contract for the Spinifex Ridge Molybdenum Project to Perth-based contracting group Macmahon Holdings Ltd.
Moly Mines managing director Dr Derek Fisher said the contract was the largest single contract to be awarded for the project and represented yet another major milestone towards the development of Spinifex Ridge.
"The signing of the mining contract is a significant step forward in developing the world's next major molybdenum mine. The timing of this contract ensures that the equipment required to develop the mine will be available on time following receipt of required works approvals and full project financing." Dr Fisher said.
During this contract the open pit mine will be developed to a size of 1.2 kilometre x 1.1 km and to a depth of over 400 metres. Mining development is expected to commence in mid 2008, with a 32 million tonne waste pre-strip
completed prior to the commissioning of the processing facilities.
"As a Western Australian company it is particularly pleasing to be able to sign this major deal with a Perthbased
contractor," Dr Fisher said.
"Macmahon has demonstrated its capability to perform this major project and we are confident they will undertake the mining activities required in a professional and reliable manner."
During the seven year term of the contract Macmahon will mine more than 180 million cubic metres of material and employ a permanent site workforce of approximately 270 operators.
The mining contract is the latest in a number of key project contracts awarded since the completion of the definitive feasibility study in September 2007.
Capital cost construction contracts awarded to date total A$146 million and relate to critical path items.
Long lead items for the processing plant including the primary crusher, high pressure grinding rolls and ball mills are under order and have confirmed delivery dates. The accommodation camp contract was awarded in January 2007.
In December 2007, Moly Mines completed the toll treatment agreement and strategic alliance with Molymet, the worlds leading independent downstream processor of molybdenum concentrates.
Spinifex Ridge is located approximately 140km southeast of the town of Port Hedland in the East Pilbara Shire of Western Australia and has an expected mine life of over 20 years with a JORC and NI43-101 compliant Measured and Indicated Resource of 469 million tonnes contains an average grade of 0.06 per cent molybdenum and 0.09 per cent copper.
