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Metallica Minerals in haulage contract with LCR Group

Published by , Digital Assistant Editor
Dry Bulk,

Metallica Minerals Ltd’s wholly owned subsidiary has entered into a schedule of rates contract with the LCR Group (LCR) to undertake all mining and haulage operations on behalf of the joint venture at the Urquhart Bauxite project.

LCR will be responsible for the supply of all equipment and personnel for the mining and haulage operations and will perform all short term planning and management to deliver bauxite from the Project to Hey Point, where it will be transhipped via existing infrastructure into ocean going vessels.

The contracting model developed by Metallica will deliver a low capital project with a compressed development schedule. LCR have agreed to capitalise their mobilisation, as well as the design and construction of the haul road linking the Project to Hey Point.

These costs will be paid back via monthly installments across a 2.5 year period, thereby delivering a low capital start-up for the Project.

It is anticipated that mining will commence within 4-6 weeks after mobilisation is completed.

The contract agreed with LCR is in line with the costs that were included in the Pre-Feasibility Study.

LCR have confirmed that they have the equipment and personnel available and put aside for the Urquhart Bauxite project, including a fleet of 130 t road trains for the efficient haulage of bauxite to the Hey Point barge loading facility, an approximate distance of 15 km.

Metallica CEO, Mr Simon Slesarewich, commented: “Metallica is excited to work with an experienced and relationship based group like LCR on a long term basis, thereby delivering certainty and value for all stakeholders. This contract further de-risks the delivery of production from the Urquhart Bauxite project in Q3 CY2017.”

LCR Group CEO, Col Partington, added: “LCR is delighted to team up with the Joint Venture to deliver the Urquhart Bauxite project. The cultural fit and the longevity of the contract has given LCR certainty to commit capital and resources that will ensure the success of the Project that will see Metallica becoming Australia’s next bauxite producer.”

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