Atlas awards Pardoo mining contract

19/05/2008 - 14:08

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West Perth based Atlas Iron Ltd is planning to begin operations and export of iron ore from its Pardoo Project in October, awarding Northern Territory based CDE Capital Pty Ltd the mining contract for the project.

Atlas awards Pardoo mining contract

West Perth based Atlas Iron Ltd is planning to begin operations and export of iron ore from its Pardoo Project in October, awarding Northern Territory based CDE Capital Pty Ltd the mining contract for the project.

The mining contract for the Pardoo operation, which is located 75 kilometres east of Port Headland, comprises of the excavation, drill and blast and hauling of ore and waste at the mine site over four years.

 

Full announcement below:

Atlas Iron Limited is planning to commence operations and export of iron ore in October
this year from its Pardoo Project located 75 kilometres east of Port Hedland in the Pilbara of Western Australia.
The company is pleased to advise that it has now awarded the first of its key Pardoo Operations Contracts, the
Mining Contract, to CDE Capital Pty Ltd (CDE).
CDE is a privately owned, majority indigenous controlled, Northern Territory based Mining and Civil contractor.
Current operations include mining contracts at Tanami Gold's Coyote Mine, civil works and mining equipment
hire at CopperCo's Lady Annie Mine and Plant and Labour Hire at Xstrata's MacArthur River Mine.
The Pardoo mining contract scope comprises the drill and blast, excavation, and hauling of ore and waste at
the Pardoo minesite over a period of 4 years.
CDE was selected from a competitive tender process managed by Atlas over a six month period and facilitated
by mining industry contract specialists INTECH. The competitive tender process has also resulted in mining
costs consistent with those anticipated during the Pardoo Definitive Feasibility Study.
"CDE Capital is a highly professional operator and a good fit for our Company. They have a great track record
in fostering indigenous business enterprise in and around mining operations", commented David Flanagan,
Atlas' Managing Director. "We are focused on achieving the best outcome in the communities where we
operate and contract award to CDE within a competitive tender process is an excellent result", he added.
The mining contract agreed includes real performance incentives for the contractor to achieve goals aligned
with that of Atlas including;
achieving concrete outcomes consistent with the Company's native title agreement;

delivering ore for blending consistent with the mine plan; and
implementing and maintaining strong safety and human resource management systems.
Furthermore, the Company has the capacity within the contract to implement the proposed Pardoo mine
upgrade to 3 Mtpa, coincident with the commissioning of the new Utah berth public access port facility in late
2009.
Atlas is on target to award it's "Road Train Haulage" and "Crush and Screen" contracts to facilitate export of
first ore from Port Hedland in October 2008.

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