Vault Minerals will transition load and haul operations at its King of the Hills (KoTH) open pit to an owner-operator model starting in January 2027.
The transition will follow the scheduled expiry of the current mining services contract on 31 December 2026.
The company said the strategic shift follows a rigorous tender process undertaken in parallel with a detailed assessment of the owner-operator model for KoTH.
Vault’s decision, it said, reflects a clear preference for the long-term value and operational advantages offered by owner mining.
The company said it based its decision on a range of factors, including cost efficiency and control, operational agility, workforce stability, capital investment benefits, and strategic alignment.
“The transition is underpinned by the significant increase in KoTH open pit Ore Reserves announced in May 2025, which supports a 13-year life of mine. In addition, stockpiles generated during this period will provide baseload mill feed for the Leonora operations for a further five years,” the company said.
Vault said that to support its forecast 35 per cent rise in activity, it will deploy a larger and more productive fleet, including two 360-tonne and one 260-tonne excavators, supported by a fleet of 190-tonne haul trucks and ancillary support equipment.
Average annual material movements are expected to reach around 14 million bank cubic metres over the life of the ore reserve.
The company said a comprehensive transition plan has been developed and will be progressively implemented throughout FY26 and the first half of FY27 to ensure a seamless commencement of owner-operator mining from 1 January 2027.
Vault has elected to retain contract drill and blast services at KoTH, with a reputable provider selected as the preferred contractor for a five-year term commencing 1 January 2027, subject to finalisation of contractual arrangements.
There is no change to Vault’s Leonora production or all-in sustaining cost (AISC) guidance for FY26, nor to the FY27 and FY28 outlook provided in September 2026. Deposits of around $2 million for long-lead fleet items are expected to be paid in Q2 FY26, with Vault currently reviewing equipment financing and hybrid funding options.
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