Downer signs $350m extension contract with Karara Mining

Downer EDI Limited has signed an extension contract with Karara Mining Ltd worth approximately $350 million. This agreement extents their current six-year contract – worth $570 million – on Karara’s iron ore mine to a further four years.

Gindalbie Metals originally awarded Downer EDI Mining the contract to mine its Kirara iron ore project back in 2012, which included provisions to drill and blast as well as load and haul services on site.

Under the original contract, Downer was to provide mining services till February 2018, but will now work at Karara until March 2022. 

Downer Chief Executive Officer, Grant Fenn, said he was very pleased to be continuing the relationship. 

“This extension is an endorsement of Downer’s strong safety and productivity performance and we look forward to bringing further value to Karara’s operations by reducing operating costs, increasing productivity and enhancing safety,” Mr Fenn said.

The world-class Karara Operation is located 200km east of Geraldton, Western Australia and consists of a substantial, long-life, magnetite concentrate deposit.

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Source: Downer Group