A six-and-a-half-year contract valued at $660 million has been awarded to Downer EDI by OZ Minerals for underground mining services at the Carrapateena copper-gold project located approximately 160 kilometres north of Port Augusta in South Australia.
Downer’s scope of works will include:
“We look forward to working closely with OZ Minerals to ensure this important project is delivered safely and efficiently,” Downer Chief Executive Officer Grant Fenn said.
The company is set to mobilise to the site immediately, with a 10-week transition period. Downer will commence underground mining activities from 1 July 2018.
According to a statement from OZ Minerals, Downer is going to be working with Pybar Mining Services – who was awarded a $65 million contract to build the Carrapateena decline in 2016 – during the transition period, which will facilitate development continuity as well as employee support and opportunities.
Downer, together with its joint venture partner Ausenco, was also awarded a $312 million engineering, procurement and construction (EPC) contract in December 2017 to deliver a new processing plant and non-process infrastructure for the Carrapateena project.
Earlier this month, OZ Minerals was granted the mining lease for the $916 million Carrapateena copper-gold project by the South Australian Government together with the Environmental Protection and Biodiversity Conservation (EPBC) Act approval from the Australian Government.
The Carrapateena copper-gold project is expected to begin production by the second half of 2019, with its construction and operation projected to support up to 1,000 jobs in the region.
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Source: Australian Mining, OZ Minerals, Downer Group