Liontown Resources has awarded mining contractor Byrnecut a $1 billion contract for underground mining services.
The fixed contract will run for a term of four years, during which Byrnecut will be instrumental in the development and production of the Kathleen Valley lithium project in WA.
“Today marks a significant milestone for Kathleen Valley as we have issued a letter of award for the underground mining services contract to Byrnecut,” Liontown managing director and chief executive officer Tony Ottaviano said.
“Byrnecut will invest more than A$125 million in new equipment, highlighting their commitment to the successful delivery of underground mining services at Kathleen Valley.”
The contract is the largest Liontown has ever awarded, and provides for the full suite of mining services for its underground operations at Kathleen Valley.
“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.”
The $1 billion is comprised of operating costs, sustaining capital and early enabling works for the planned four million tonnes per annum expansion of the site.
“Byrnecut is a Tier-1 underground mining services contractor with a global footprint. Its underground expertise is highly respected and well recognised throughout the mining industry and investment community, underpinned by the people they attract and retain,” Ottaviano said.
“As part of the tender process, I was pleased to learn that around 400 people have worked for Byrnecut for 10 years or more. I believe this is evidence of a highly engaged and motivated team, which is vital to operating safely in an underground mining environment.”