Bibra Lake-based Mineral Resources says it is finalising the largest build, own, operate (BOO) crushing contract ever awarded in Australia for Fortescue Metals Group's Christmas Creek iron ore project in the Pilbara.
Bibra Lake-based Mineral Resources says it is finalising the largest build, own, operate (BOO) crushing contract ever awarded in Australia for Fortescue Metals Group's Christmas Creek iron ore project in the Pilbara.
The announcement is below:
The Mineral Resources Limited (ASX:MIN) subsidiary, Crushing Services International, is in the process of finalising documentation on the largest BOO crushing contract ever awarded in Australia to provide crushing and processing services for the Fortescue Metals Group (FMG) Christmas Creek iron ore project in Western Australia.
Substantial pre contract works have already been authorised and are underway. The build, own, operate (BOO) contract which includes the design, construction, assembly and operation of a 19 million tonne per annum crushing, washing, screening and fines processing operation forms the initial Stage 1 circuit for the nominal 50 mtpa Christmas Creek operation which is a key plank in the FMG iron ore growth strategy.
The contract is for a 10 year contract period and the plant has been designed with a modular general arrangement to facilitate future upgrades and duplication to achieve the overall projected future site tonnage throughput. The run of the mine feed ore shall be delivered to the ROM pad by the FMG mining contractor and then crushed, washed and processed to achieve an all in -8mm fines product in stockpile for future load out over the FMG rail facility.
Peter Wade, Managing Director of Mineral Resources, said the successful implementation of Build, Own, and Operate crushing and processing projects is one of the company's core strengths and forms the basis of the group's significant contacting operations.
"Mineral Resources is working on a number of significant BOO crushing and processing contracts in Western Australia and the Northern Territory for major blue chip resource clients and being awarded the Christmas Creek contract is testament to our proven track record in crushing and minerals processing operations".
"Mineral Resources looks forward to delivery of the long term production output for the Christmas Creek iron ore project to assist FMG achieve its long term growth targets" Mr Wade said.
"The award of this contract recognizes our ability to work closely and collaboratively with respected clients to add value to their operations."
"We expect to construct and bring into operation this state-of-the-art crushing and processing plant for tonnage export in the first quarter of 2011" he said today.
This contract adds significantly to the base work load of Mineral Resources contracting and processing operations for the 2011 and subsequent years and will provide long term security and value for shareholders in both FMG and MIN.
MIN has separately supplied and installed for FMG a 1000tph capacity HPGR crushing circuit at the FMG Cloudbreak Operation and has also entered into a design and construct contract for a 5000tph oversize crushing circuit also at the Cloudbreak operation.
