NRW Holdings confirmed it has received a letter of intent from Karara Mining awarding it a five-year mining services contract at the Karara iron ore mine in Western Australia’s Gascoyne region.

With a value of approximately A$702 million, the scope of the work includes load and haul, drill and blast, and run-of-mine rehandling. The drill and blast component will be performed by NRW subsidiary Action Drill & Blast.

Additionally, the works include train loading and rehandling of product stockpiles, as well as miscellaneous duties at the mine site, camp and access roads.

Work is projected to begin in March 2022, preceded by the acquisition of key mining equipment including three 600-tonne face shovel excavators and a fleet of 200-tonne trucks. NRW said it will likely spend about $170 million over the contract’s term.

“NRW has a long history as a high-quality provider of mining services to our clients in the iron ore industry, and I look forward to a long and successful partnership with Karara Mining,” said CEO Jules Pemberton.

“With a strong local presence in the area through our Geraldton based DIAB Engineering business and our mining contract with Gascoyne Resources at the Dalgaranga mine site, we look forward continuing to support the existing and highly experienced workforce on site through this transition, as well as creating employment opportunities for the Gascoyne region community.”

Karara, located in the Shire of Perenjori, is the largest mining operation and the first major magnetite mine in the Australian Midwest. With an expected life span of more than 30 years, the complex includes an open-pit mine, complex ore processing, a beneficiation plant and significant infrastructure and logistics networks. 

Source: NRW Holdings

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