Arrium Awards $720 million Iron Ore Mining Project

Arrium Awards Iron Ore Mining Project

BGC Contracting has been awarded a 5 year, $720 million contract by Arrium for its Iron Knob and South Middleback Range South Australian iron ore projects.

The services BGC will provide include drilling, blasting, hauling, loading, dumping and train load-out.

BGC’s current mining contract was due to be completed this year, however, this contract will be replaced by a new one running until 2022, Arrium administrators KordaMentha confirmed.

BGC CEO Greg Heylen identified the company's key strength as being its ability to quickly adapt, due to being privately owned and vertically integrated.

“This has been a challenging time for the mining sector” stated Heylen however he noted that vertical integration played a large role in BGC’s success as it has allowed BGC to “improve efficiencies on the project, which has resulted in lower cash costs for Arrium.”

iSeekplant-Social-Follower-Ebook

Arrium executive general manager Matt Reed shared Heylen’s amicable position identifying the major role BGC played in helping Arrium lower it’s mining costs.

The decision to award the contract to BGC will allow them to provide more certain employment for workers and subcontractors in the region.

The Iron Knob and South Middleback Range iron projects are located close to Whyalla in South Australia, They provide lump and fine products to steel markets around the world, though primarily in China.

With this vote of confidence and massive injection of cash in the projects there is sure to be a raft of opportunity for plant hire in the region. Click here to make a free supplier profile and take advantage.

To search for machines or plant hire suppliers, click here

Subscribe to receive news on projects as it happens

Get the latest updates in Major Projects and Industry News straight to your inbox