04/10/2021 - 11:05

Strandline awards contract for $338m Coburn project

04/10/2021 - 11:05

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Strandline Resources has signed a seven-year agreement with Welshpool-based contractor Mine Site Construction Services to progress its $338 million Coburn mineral sands project.

Strandline awards contract for $338m Coburn project
Strandline's contract with MSCS isexpected to cover the first seven years of production. Photo: Strandline Resources

Strandline Resources has signed a seven-year agreement with Welshpool-based contractor Mine Site Construction Services to progress the development of its $338 million Coburn mineral sands project.

Under the agreement, MSCS will be responsible for conventional open pit dry mining of ore at a rate of 23.4Mtpa, overburden removal, pit backfill and land recontouring and earthworks at the Gascoyne mine.

The contract, which is expected to cover the first seven years of production, incorporates provisions to encourage strong indigenous engagement, local content and emissions reduction initiatives.

In a statement released to the ASX this morning, Strandline confirmed MSCS had already begun mobilisation of the site for mine establishment and pre-strip activities ahead of first production in the December quarter of 2022.

Strandline managing director Luke Graham said the execution of the contract marked another key step in the company’s plan to become a leading producer of critical minerals.

The company has already locked in more than half of its operating contracts, including for the supply of electricity, LNG and fuel on site.

The news comes five months after the company made a final investment decision on the project, which is being supported by a $150 million loan from the Northern Australia Infrastructure Facility and a $US60 million senior secured bond issue.

The construction of the project is expected to create 300 direct jobs and support a further 150 jobs over its 22-year mine life.

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