NRW chosen as preferred mining services contractor for Karara mine WA

Karara Mining Limited has issued a letter of intent to NRW Holdings for a contract award for mining services at the Karara Iron Ore Mine in Western Australia’s Gascoyne region. 

The five-year contract is estimated to be valued at $702 million – subject to an agreement with Karara Mining – and the project is expected to employ up to 250 personnel. 

“I am delighted that NRW has been selected by Karara as its preferred contrator for mining services. NRW has a long history as a high-quality provider of mining services to our clients in the Iron Ore Industry and I look forward to a long and successful partnership with Karara Mining,” NRW Holding Chief Executive Officer Jules Pemberton said. 

Scope of works under this contract include load and haul, drill and blast as well as ROM re-handling. Drill and blast works is going to be undertaken by NRW’s wholly owned subsidiary Action Drill & Blast Pty Ltd. 

Works will also include train loading and rehandling of product stockpiles along with various dayworks on-site and delivery of camp and access roads. 

Following the execution of an agreement with Karara Mining, procurement of key mining equipment will commence, with site mobilisation and establishment to get underway during the months leading up to the beginning of works in March 2022. 

NRW Holdings is estimating to have an equipment capex of approximately $170 million, which will be progressively received over the contract term. The equipment capex will include the purchase of three 600 tonne Face Shovel Excavators together with a fleet of 220 tonne trucks. 

“NRW is an established West Australian based mining and civil contractor with extensive open cut mining experience gained through a number of successful mining operations in the state. Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising a broad range of mining, construction and engineering services. We look forward to negotiation of an agreement with NRW and commencement of mining services early next year,” Karara Mining Chief Executive Officer Changjiang Zhu said. 

The Karara Iron Ore Mine is located approximately 200 kilometres south east of Geraldton. The mine is one of the largest mining operations as well as the first major magnetite mine in the Mid West and it is comprised of a large open pit mine, complex ore processing and beneficiation plant, and vital infrastructure and logistics networks. 

The Karara mine has an expected mine life of 30 plus years, producing premium, high-grade concentrate products which will be exported to steelmakers. 

Source: NRW Holdings; Australian Mining; Karara Mining Limited