OZ Minerals has replaced its underground mining services contractor, Downer EDI, with Byrnecut Australia at its Carrapateena mine as part of a new five-year alliance.

Byrnecut will provide both underground mining and associated services in the deal, worth A$130 million annually, while employees for Downer will be offered roles with the new provider. Downer announced recently that it would be divesting its mining services arm.

OZ Minerals said on 20 January it commenced a transition period for the incoming and outgoing companies, which is projected to take seven weeks. Full responsibility will be assumed by Byrnecut on 4 March; the specific scope of work includes production, development mining and steady-state operations at nameplate capacity.

“This transition will include the transfer of equipment from Downer to Byrnecut, [as] Byrnecut will now provide underground mining services to both the Carrapateena and Prominent Hill mines,” Oz Minerals said. "Byrnecut ... has been providing underground mining services to Prominent Hill for the past 10 years, with their Prominent Hill contract having been renewed in 2020.”

Carrapateena, which produced its first concentrate in late 2019, is located north of Port Augusta in South Australia’s Gawler Craton region.

Source: ozminerals.com