23/10/2015 - 10:37

BC Iron replaces Nullagine contractor

23/10/2015 - 10:37

Bookmark

Save articles for future reference.

Iron ore miner BC Iron has continued its run of cost saving initiatives at its Nullagine operation by awarding a $40 million road haulage contract to QUBE Holdings.

The Nullagine joint venture is 75 per cent owned by BC Iron and 25 per cent by Fortescue Metals Group.

Iron ore miner BC Iron has continued its run of cost saving initiatives at its Nullagine operation by awarding a $40 million road haulage contract to QUBE Holdings.

Qube will replace current road haulage contractor Toll Group at the Nullagine project, which is 75 per cent owned by BC Iron and 25 per cent owned by Fortescue Metals Group.

Qube will begin work under the contract from the beginning of December for an initial two years, with options for a further year extension.

In a statement, BC Iron said the new contract would deliver significant savings compared with the existing road haulage contract at Nullagine.

“Nullagine’s total road haulage cost is expected to decrease by about 30-35 per cent upon commencement of the contract,” the miner said.

“BC Iron is currently considering the new contract rates, as part of its ongoing cost management focus.”

In April, BC Iron terminated a mining services contract with Watpac Civil & Mining three months early and awarded a similar contract to Viento Group, as part of cost cuts at Nullagine.

Last week, Business News reported that Qube and Mineral Resources would be trialling new 'super quad' road trains in the Pilbara.

BC Iron shares were 3.4 per cent lower to 28.5 cents each at 10:30am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options