Fortescue Metals Group Ltd (ASX:FMG) and mining services specialist Roche Mining today announced that it had entered into a long term alliance by forming the Pilbara Mining Alliance ("PMA").
Fortescue Metals Group Ltd (ASX:FMG) and mining services specialist Roche Mining today announced that it had entered into a long term alliance by forming the Pilbara Mining Alliance ("PMA").
Over the initial five year term, it is envisaged that the PMA will be responsible for moving more than 850 million tonnes of material and managing in excess of A$1.9 billion of Fortescue's operating costs.
Under the alliance, Roche Mining will be responsible for mine planning, engineering, site establishment and pre-production mining and ongoing mining production. Fortescue will provide the equipment for the mine production.
The PMA will initially focus on the development of Fortescue's flagship deposits at Cloud Break and Christmas Creek and the operation of these mines and the associated ore processing centre. Longer term, PMA will also offer its services and expertise to other mine developments and operations, particularly in the Pilbara region.
Fortescue's Executive Director of Operations, Mr Graeme Rowley said the Alliance was a significant milestone, bringing together Fortescue's vast Pilbara resources with a highly qualified mining group in Roche.
"Roche is natural partner for Fortescue's project having been involved in many facets of the project development to date, including the recent mining study, the reserve and resource delineation programs and metallurgical test work," Mr Rowley said.
"This is a very welcome achievement as Roche has fully developed capabilities across all aspects of the mining cycle through its various subsidiaries, Snowden Mining Industry Consultants, Roche (MT) (formerly Mineral Technologies) and Roche Mining (JR) (formerly JR Engineering). Fortescue's established long term relationship with Snowden and Roche Mining (MT), and their intimate understanding of Fortescue's geology, mineralogy and proposed mining systems, means that PMA will be able to commence its activities immediately with a fully informed core management team.
Chief Executive of Roche Mining, Robert Logan, said that Roche is pleased to partner with Fortescue in ensuring the most cost effective Greenfield mining operation.
"This is a significant contract for Roche and demonstrates our ability to provide a comprehensive mining solution from the front end consulting with Snowden through to full production," Mr Logan said.
Roche Mining is a division of Downer EDI Limited (ASX:DOW) and is one of Australia's major providers of mining services, including mine planning, underground and open pit mining services, materials handling and processing, blasting services and mineral separation. Before entering into this arrangement, Roche Mining held over 30% of the contract mining market in Australia and has extensive experience in operating large scale bulk material mining equipment including bucket wheel excavators and conveying systems
