BGC wins $720m contract for works on two Arrium Mining projects in SA

Arrium Mining has awarded BGC Contracting Pty Ltd a new contract worth over $720 million for works on the Iron Knob and South Middleback Ranges iron ore projects near Whyalla in South Australia.

BGC’s current mining contract with Arrium – due to be completed in 2017 – is going to be replaced with the new five-year contract.

Under the new contract, BGC will be providing a full range of mining services which includes drilling, blasting, loading, hauling, dumping and train load-out.

“BGC Contracting’s breadth and vertical integration of services has enabled us to improve efficiencies on the project, which has resulted in lower cash costs for Arrium and the Administrators.

“During this time we have continued to meet Arrium’s safety and production targets and we look forward to continuing our work with Arrium’s team in the future,” said BGC Contracting’s Chief Executive Officer Greg Heylen.

According to Arrium Mining Executive General Manager Matt Reed, the collaborative approach of BGC and Arrium to recent challenges in the mining sector resulted in significant improvements for both companies.

“We had a lot of work to do, but BGC has played a major role in bringing our mining costs down by working in partnership with our operations team. We look forward to developing this partnership with BGC over the coming years and continuing to reduce our costs as we create a world-class business,” Mr Reed said.

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Source: BGC Contracting