Byrnecut has won the underground mining contract for Sandfire’s DeGrussa copper mine.
Valued at around $200 million, it comes as Sandfire’s existing contract with Australian Contract Mining expires.
The new contract runs for three years, and has an option to extend for an additional two years.
According to Sandfire it is the largest single operational contract at DeGrussa, and will see 150 people employed on site.
“The implementation of the new contract is expected to reduce gross mining costs at DeGrussa by over 10%,” Sandfire explained.
“This will see a reduction in anticipated mining, decline development, and underground sustaining capital.”
Sandfire’s CEO Karl Simich said the miner was looking forward to working with Byrnecut.
“I would like to take this opportunity to thank ACM for their significant contribution to the success of the DeGrussa operation over the past three years during the underground mine development and the successful ramp-up of the operation to a steady-state level of 1.5 mtpa.”
Sandfire has established an implementation team to work with Byrnecut and ACM to manage a transition of the two contractors with limited disruption to mining operations and production.