Downer EDI and joint venture partner Waanyi have been awarded a life of mine contract to provide mining services for the
East Fault Block and South Block resources beside the open pit at Century mine in north-west Queensland.
The execution of the mining services agreement with the Waanyi Downer Joint Venture (WDJV) forms part of a compensation arrangement between New Century Resources and the Waanyi people.
It allows for the potential development of the South Block and East Fault Block Resources, should that proceed following the completion of an expansion feasibility study, due by the end of September 2018.
New Century is initially looking to reprocess tailings as it restarts operations at the former MMG zinc mine, with an expected start-up cost of $62.5 million. Once in production, the company plans to invest a further $63 million over a 15-month period to ramp up to 15Mtpa.
The expansion prefeasibility study is looking at the potential to mine other mineral resources on the lease in addition to the tailings reprocessing activities, which remain on track to commence in August 2018.
The scope of work to be carried out by the WDJV includes:
waste and ore removal and haulage;
equipment supply and maintenance;
drilling services; and
technical and mine management.
This mining services contract is in addition to the contract awarded in April 2018 to the Waanyi Downer joint venture partners for the provision of training services to Aboriginal and Torres Strait Islander people and communities to the Century mine.
The WDJV is chaired by Warren Mundine, former Head of the Prime Minister’s Indigenous Advisory Council.
“The Waanyi people are central to this,” Mr Mundine said. “The focus has always been, and must
remain that the operation is on Waanyi country and must benefit the Waanyi People.
“This is why this arrangement has been so successful to date, and will continue to be, because of this focus. I’d like to think
this partnership is unique and a case study for other operations around the country.”