BGC Contracting awarded $520 million Cliffs Koolyanobbing Extension

Leading mining and civil construction firm BGC Contracting Pty Ltd has been awarded a five-year contract extension with Cliff Natural Resources at its Koolyanobbing Iron Ore Project in Western Australia.

The current mining contract, previously due to be completed in 2017, will be extended through to 2022, and is valued at more than $520 million.

Under the contract, BGC Contracting will continue to provide the full range of mining services, including drilling, blasting, loading, hauling, dumping, crushing, screening and train load-out.

BGC Contracting CEO Greg Heylen said the contract extension was recognition of the Koolyanobbing team’s ability to meet Cliffs’ safety and production targets during a challenging period for iron ore producers.

“BGC’s long-standing relationship with Cliffs has seen the two companies work collaboratively over the better part of the last decade and during this time we have continuously and reliably delivered on the contract,” Mr Heylen said.

“This has been a tough period as the iron ore price has fallen, and I believe that by maintaining strong relationships with Cliffs at all levels of our organisation, we have helped them succeed at Koolyanobbing in what has been a difficult market for all iron ore miners.”

The Koolyanobbing project is located in the Yilgarn region, 400km north-east of Perth, and provides lump and fine products internationally to the world’s steel markets.

BGC Contracting has had a long-standing relationship with the project since April 2004, initially delivering off-road haulage services before expanding its involvement to include contract mining operations in 2007.