EQ Resources Limited (EQR) announced it has executed a Mining Services Agreement with Golding Contractors for the restart of the open pit mining operations at Mt Carbine, Queensland, making EQ Resources Limited the 100 per cent owner of the Mt Carbine Tungsten Mine.
The parties have agreed that the first 12–18 months will be completed on a rates and cost-plus basis to establish a site-specific baseline cost. Thereafter, the parties intend to transition to rise and run matrix rates, on fleet composition and material type basis.
The committed contract period is 70 months and represents an estimated value of $179 million.
The estimated material movement over the contract period includes:
- Approximately 16.3 million tonnes of mine waste material
- Approximately six million tonnes of mined ore
- Approximately 2.9 million tonnes of low-grade stockpile material
This completes a first phase of engagement between the parties as set out on 4 July 2022.
Several areas have been finalised over this period, including pit design, equipment selection, contractor engagement, stakeholder engagement, and scheduling.
The parties agreed to split the contract into two phases to ensure a refined understanding of the schedule of costs in regard to the unique nature of mining hard rock tungsten. This was done to help de-risk the project and ensure scope delivery without having to build significant risk pricing upside into the contract.
EQR Chief Executive Officer, Kevin MacNeill, said, “We’re very happy with the relationship we’ve developed with Golding over the past year. It’s been a collaborative process and has been a positive engagement throughout.
“It feels we’ve gained a long-term partner rather than just a contractor. Their level of professionalism, proactive approach to problem solving and willingness to work with the EQR team has really set them apart.”
With Golding personnel onsite full-time, the ramp up toward open cut production is accelerating toward delivery and processing of first ore. Equipment has started arriving, personnel appointments are underway as well as infrastructure establishment for the mining offices.
Golding will incorporate some EQR equipment and personnel as the project transitions into mining the open cut.
Featured image: Golding personnel are onsite full-time as the acceleration toward delivery and processing of first ore from the Andy White Open Pit continues. Image credit: EQR.
