Byrnecut secures $1bn mining contract for Kathleen Valley project

Liontown Resources Limited has awarded a major contract to Byrnecut Australia Pty Ltd for underground mining services that will underpin the development and production of the Kathleen Valley Lithium Project in Western Australia. 

Under the $1 billion contract, Byrnecut will undertake all aspects of underground construction such as significant early capitalised development and production across the Mt Mann and Northwest Flats orebodies that will support the initial plant throughput capacity of 3Mtpa at the Kathleen Valley project over a four-year period. 

“Today marks a significant milestone for Kathleen Valley as we have issued a letter of award for the Underground Mining Services contract to Byrnecut. 

“Byrnecut is a Tier-1 mining services contractor with a global footprint. Its underground expertise is highly respected and well recognised throughout the mining industry and investment community, underpinned by the people they attract and retain. As part of the tender process, I was pleased to learn that around 400 people have worked for Byrnecut for 10 years or more. I believe this is evidence of a highly engaged and motivated team, which is vital to operating safely in an underground mining environment,” Liontown Resources Limited Managing Director and CEO Tony Ottaviano said. 

The billion-dollar contract will cover operating costs, sustaining capital, and early enabling works for the planned 4Mtpa expansion which is part of the longer-term operation of the mine. 

Byrnecut was chosen as the preferred tenderer in recognition of the company’s extensive expertise in large-scale underground mining including state-of-the-art and technologically advances mining equipment and processes, robust safety and training systems and logistical support. 

The evaluation process Byrnecut underwent included Health, Safety, Environment and Quality (HSEQ), innovation, community engagement and performance history. The company will also be committed to working in collaboration with the Tjiwarl Traditional Owners to increase Indigenous participation in the delivery of the project. 

As part of Byrnecut’s commitment to the successful delivery of underground mining services at the Kathleen Valley Lithium Project, the contractor will be investing more than $125 million in new equipment. 

“Our collaboration with Byrnecut has already delivered value in the form of updated ‘one mine, two orebodies’ mine plan, which was optimised as an outcome of the tender evaluation process. 

“Byrnecut will invest more then $125 million in new equipment, highlighting their commitment to the successful delivery of underground mining services at Kathleen Valley,” Mr Ottaviano said. 

Byrnecut will begin mobilising to the project site throughout September of this year, aligning with the on-schedule conclusion of open pit mining at Mt Mann – which will be the central location for the six future portals into the underground mine. Mine development is expected to commence in December. 

The award of the Underground Mining Services contract is subject to finalisation of a binding full-form contract. Liontown Resources will release further updates once the company finalises its operating costs review for the Kathleen Valley Lithium Project. 

“At around $1 billion this is the largest contract to be awarded by Liontown and is reflective of operational requirements, external factors and the four-year duration. 

“We remain on track to first production from Kathleen Valley by mid-2024 and I look forward to partnering with Byrnecut for the next stage of our project development,” Mr Ottaviano said. 

The Kathleen Valley Lithium Project is located about 60 kilometres north of Leinster and 680 kilometres north-east of Perth. The mine is accessible via sealed highways that connect to mineral exporting ports at Geraldton and Esperance. The mine is also located close to other local infrastructure such as a high voltage power line, a natural gas pipeline and sealed airstrips that has the capacity to take 100-seat jets. 

Source: Liontown Resources Limited (1, 2); Australian Mining; International Mining; Mining Technology