Liontown Resources has officially executed its $1 billion contract with Byrnecut Australia for underground mining services at the Kathleen Valley lithium project in WA.
The contract was previously announced in August of this year and is set to run for a term of four years.
Liontown said the contract was highly competitive and technically comprehensive and that the company is excited to be working with Byrnecut.
“I am pleased to announce this final milestone in the underground mining services contract,” Liontown managing director and chief executive officer Tony Ottaviano said.
“As I have previously said, Byrnecut is a globally experienced and professional Tier-1 underground mining services contractor.
“We look forward to partnering with their motivated teams to achieve our production and ramp up targets at Kathleen Valley, with first production on track for mid-2024.”
Liontown has begun preparatory works at Kathleen Valley ahead of the mobilisation of Byrnecutt in the coming weeks.
Development of declines from the Mt Mann box cut is set to commence on schedule in November.
The contract is worth $1 billion over four years and includes operating costs, sustaining capital and capital associated with the operation of the underground mine.
“At around $1 billion this is the largest contract to be awarded by Liontown and is reflective of operational requirements, external factors and the four-year duration,” Ottaviano said.
“We remain on track for first production from Kathleen Valley by mid-2024 and I look forward to partnering with Byrnecut for the next stage of our project development.”