Strandline Resources Limited has announced the execution of a long-term Mining Services Agreement (MSA) with Mine Site Construction Services (MSCS).
MSCS will provide and operate the mining fleet associated with ore mining, overburden removal, pit backfill and land recontouring for the Coburn mineral sands project in the Gascoyne region of Western Australia.
The contract mining term is expected to cover the first seven years of production and provides a safe, reliable and efficient mining solution for Coburn.
MSCS’s experience in bulk materials handling and mining, including large dozer push operations in mining sands applications, means it is well credentialed to meet Coburn’s mining requirements.
Strandline Managing Director Luke Graham said the execution of mining services contract marked another key step in the Company’s strategy to become a leading high-margin producer of critical minerals.
“This agreement when combined with the previously announced operating contracts, including for the supply of electricity, LNG and fuel on site, means Strandline has already locked-in over half of its operating costs in line or better than the assumptions contained in the Coburn DFS,” Mr Graham said.
The mining contract incorporates provisions to maximise environmental and social governance (ESG), including implementing strong indigenous engagement, local content and emissions reduction initiatives.
MSCS is now preparing to mobilise to site to conduct mine establishment and pre-strip activities.
Strandline remains on track to achieve first production of heavy mineral concentrate in the December quarter, 2022.