Barminco Holdings has signed a four-year mining services contract to undertake a number of underground mining services including mine development and production.
The contract, valued at approximately $95 million, will run with a one year option to extend.
The site could be in production by as early as mid-2019.
This long-term contract further adds to Barminco’s presence across north-west Queensland, having operated at the nearby Dugald River zinc project for over six years.
The Mount Colin copper mine is located between Cloncurry and Mount Isa in north-west Queensland and is projected to contain an ore reserve of approximately 1.3Mt at an average grade of 2.9 percent copper as well as 0.4g/t gold.
It should take up to two years to steady the mine to a production rate of 400,000 tonnes per annum according to Round Oak Minerals Chief Executive Officer Rob Cooper.
Round Oak has a toll treatment agreement with Glencore for the ore mined from Mount Colin, which will be processed at the Ernest Henry operation.