Downer has been awarded a $660 million contract which will see them deliver underground mining services at OZ Minerals’ South Australian Carrapenteena copper-gold mine.
The contract will begin at the start of the 2019 financial year and will last for six and a half years. Downer will begin mobilising on site this week as it initiates a 10 week transition period to take over from the current contractor, Pybar. Over this 10 week period, Downer will take over all responsibilities from Pybar.
The $660 million contract will see Downer deliver all underground mining services contracts at Carrapateena. This will include site setup and development, production setup and excavation infrastructure setup.
Grant Fenn, Downer chief executive officer, has spoken about winning this significant contract, stating, “This new contract is an excellent example of the breadth of services we can offer to customers in the mining and resources sector.”
In July 2016, Pybar was initially awarded a $65 million contract from OZ to build the Carrapateena decline.
In an ASX announcement, OZ stated, “Downer and Pybar will work together during the transition period to facilitate development continuity and employee support and opportunities.”
Below are details on the Carrapateena mine from OZ Minerals' website.
Carrapateena is located in South Australia on the eastern margin of the Gawler Craton.
One of Australia’s largest undeveloped copper deposits, the project will be a 4.25 Mtpa underground operation, with an estimated mine life of 20 years. Infrastructure on site includes an accommodation village, airstrip, processing plant and tailings storage facility.
Construction of Carrapateena is underway and commissioning is scheduled for Q4 2019 after which the project will ramp up to steady state production.
There are two main phases to construction:
Phase one Q3 2017 – Q1 2018 (underway): construction commences on the accommodation village and airstrip, and development of the dual access decline continues.
Phase two Q2 2018 – Q4 2019: subject to mining lease approval, phase two includes construction of above ground infrastructure, processing plant, tailings storage facility, western access road, power line and installation of the underground materials handling system.