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Downer wins $514m contract for OZ Minerals’ Carrapateena mining project

EBR Staff Writer Published 17 April 2018

OZ Minerals has given an A$660m ($514m) underground mining services contract to Downer EDI for the second phase of its Carrapateena copper gold project in South Australia.

The contract will have a duration of nearly six and a half years, with Downer to undertake full responsibility of site underground mining operations from 1 July. Until then, the Australian integrated services company will mobilize to the Carrapateena mine location to begin a 10-week transition period.

Located 160km north of Port Augusta, the Carrapateena copper gold mine is being constructed by OZ Minerals at a cost of A$916m ($724m).

Under its contract, Downer will setup the site and develop it to the top of the ore body and infrastructure excavation. It will also be responsible for production setup and bedding in steady-state operations at nameplate site capacity.

OZ Minerals said in a statement: “The underground mining contract review is aligned with the start of the next stage of Carrapateena’s mine development, which began in April following receipt of all primary approvals, including the Mining Lease, from the State and Federal Governments at the end of March 2018.”

The Australian mining company said that Downer will work with Pybar Mining Services, the early works contractor of the copper-gold project, during the transition period to enable development continuity, among other things.

The Carrapateena mine is regarded as one of the largest undeveloped copper reserves in Australia. As per the estimates of OZ Minerals, the Carrapateena mine is expected to produce 65,000 tonnes of copper and 67,000 ounces of gold annually throughout its estimated lifetime of 20 years.

To be developed under a two-phased work program, the Carrapateena project is expected to create around 1000 jobs from the construction stage to production stage.

The Australian copper miner expects to commission the Carrapateena copper gold mine in the fourth quarter of 2019.

The phase one of the project involves construction of some of the necessary infrastructure such as an accommodation village and airstrip along with continued development of the dual access underground decline.

Phase 2 will see the construction of processing and above ground infrastructure such as processing plant, underground materials handling system, tailings storage facility, power line and access roads.