SMS locks in $640m gold contracts

SMS Mining Services has secured contracts at two planned gold projects in Western Australia worth a combined $640 million.

Perth-based SMS has been chosen as preferred contractor for a $420 million mining contract at Capricorn Metals’ Karlawinda project near Newman.

The contract comprises mining services including load and haul, drill and blast, and mine development over nine years.

“We are excited to be part of Capricorn Metals story,” managing director Daniel Sweeney said.

“We look forward to forging a successful long-term partnership and supporting the company in bringing the Karlawinda gold project into production in 2019.”

SMS was also announced as the preferred mining services contractor for the planned revival of Adaman Resources’ Kirkalocka gold mine near Mt Magnet.

The $220 million contract includes load and haul, drill and blast, and mine development over six years.

SMS owns a 33 per cent stake in privately-owned Adaman Resources, along with Rivet Group and Mitchell Group.

Adaman purchased the project from Chinese company Minjar Gold in May for $12 million.