Mineral Resources (MinRes) has awarded a $46 million contract to Develop Global for underground development at the Mount Marion lithium mine in Western Australia.
Develop Global will establish an exploration decline at the mine, which is owned in a joint venture between MinRes and China’s largest lithium producer, Gangfeng Lithium.
“The award of this contract to Develop is a significant vote of confidence in our world-class underground mining team,” Develop managing director Bill Beament said.
“The strength of this team is shown by the outstanding results we are generating at the Bellevue gold mine, where the project is running on time and on budget.”
Develop began underground work at Bellevue Gold’s Bellevue mine in Western Australia in 2022 under a $400 million contract expected to cover almost four years.
“The Mount Marion contract is consistent with our stated strategy of securing two or three contracts within our mining services team,” Beament said.
“Our team is eager to make a significant contribution to the Mount Marion project by applying its extensive skills and experience to the underground development.”
Key works to be carried out initially include establishing surface facilities to support underground mining activities, portal establishment, installation of underground mine infrastructure.
Once ancillary projects are complete the company will move to excavate underground capital development and drill platforms, develop through the orebody to obtain important geological and operational data, and set up an extensive diamond drilling campaign.
The contract is set to begin in early 2024 and continue for at least 18 months.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.