The parties have signed an early contractor involvement agreement (ECI Agreement) for early works associated with contract mining services. Under the ECI Agreement, the parties will work exclusively over the coming months to further optimise the mining solution and conclude contract documentation
The scope of the mining services contract will include mining of ore at a rate of 23.4Mtpa, overburden removal, pit backfill and land recontouring, transfer of concentrate from the Wet Concentrator Plant (WCP) to the Mineral Separation Plant (MSP) and general mining-related earthworks. The contract mining term is expected to cover the first five years of Coburn's production.
Coburn is a world-class long-life mineral sands deposit hosting exceptional zircon and titanium mineral sands products. The mining method is conventional open pit dry mining in free-dig sand with in-pit tailings deposition, progressive backfill and rehabilitation.
Macmahon's experience in large bulk materials handling and mining, including dozer push operations, means it is well credentialled to meet Coburn's mining requirements. Macmahon's solution provides Strandline with a long-term safe, reliable and highly efficient mining solution for Coburn. The financial terms of the mining contract will utilise an alliancing-style commercial framework based on the mine plan, methodologies and productivity estimate assumptions contained in the Coburn Definitive Feasibility Study (DFS), released Apr-2019.
The Coburn DFS shows the Project will generate strong financial returns with a pre-tax NPV of
'We are pleased to establish this relationship with Macmahon and look forward to further optimising the mining solution and contract documentation in readiness for development,'
'Coburn has a world-scale inventory, it is in a Tier-1 location, we have binding offtake agreements in place with top-shelf customers, reputable contractors on board developing solutions and project funding discussions progressing strongly.'
ABOUT MACMAHON
Macmahon's surface mining business has more than 50 years' experience in bulk and selective mining operations. Headquartered in
ABOUT STRANDLINE
Contact:
Tel: +61 8 9226 3130
Email: enquiries@strandline.com.au
FORWARD LOOKING STATEMENTS
This report contains certain forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside of the control of Strandline. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay, approvals and cost estimates. Actual values, results or events may be materially different to those contained in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement reflect the views of Strandline only at the date of this announcement. Subject to any continuing obligations under applicable laws and ASX Listing Rules, Strandline does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement to reflect changes in events, conditions or circumstances on which any forward looking statements is based.
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