Atlas Iron awards several work contracts for McPhee Project in WA

Atlas Iron is a step closer to commencing construction and commissioning of its McPhee Project in Western Australia with the award of major haulage, mine load and haul as well as drill and blast contracts. 

The new contract awards take the total number of major contracts awarded to date to over 50 per cent. All contracts are still subject to relevant government approvals being granted. 

The mine load and haul contract has been awarded to MACA Mining Pty Ltd while a separate contract for drill and blast mining services has been awarded to the Nyamal joint venture East West Pilbara-Ozland. 

East West Pilbara (EWP), an Indigenous contractor, is a Nyamal-owned business. The joint venture with Ozland has previously been awarded civil and construction works at the Miralga Mine and this has been recognised as an industry first. Due to this contract award, Atlas Iron was given the prestigious Australian Mining Prospect Award for Indigenous and Community Engagement. 

Lastly, the haulage contract was awarded to MGM Group and REGROUP. This contract has been split into two with MGM securing 60 per cent of the contract and REGROUP receiving the remaining 40 per cent. 

REGROUP is a full-service civil construction, mining services, labour resourcing and equipment hire company and this is the company’s first instance of being engaged as a contracting partner. 

“The McPhee Project is another step in the successful integrated Hancock Group development approach focussing on the product strategy for the broader group. 

“Atlas will continue to engage local and Indigenous contractors and maintain a practical approach to operations,” Hancock Prospecting Group CEO Group Projects Sanjiv Manchanda said. 

The McPhee Project is located in the northeast Pilbara region, about 100 kilometres north of the Roy Hill Mine and 30 kilometres north of Nullagine. 

The McPhee Project is expected to haul up to 10 million tonnes per annum (Mtpa) of crushed ore to Roy Hill where it will be processed, transported to port and shipped. 

Operations at McPhee is anticipated to begin in FY2024, with the first ore to reach Roy Hill in FY2025. This timeline is subject to regulatory approvals expected to be granted in early 2023 which, in turn, will enable contractors to mobilise to the project site and begin works. 

The McPhee Project is expected to create 250 jobs at peak construction period and up to 290 direct permanent jobs as well as many more indirect jobs in haulage, transport and supplies. 

Source: Atlas Iron (1, 2, 3); Australian Mining; International Mining