Liontown Resources (ASX:LTR) has awarded ‘tier-one’ mining contractor Byrnecut a billion-dollar Underground Mining Services contract for the development and production of the Kathleen Valley Lithium Project in Western Australia.
Liontown, which has a market capitalisation of $5.9 billion, says the appointment of Byrnecut is a ‘significant’ milestone for the project. The $1 billion fixed and variable contract is expected to span 4 years.
Byrnecut will invest more than $125 million in new equipment for the work under the contract, which Liontown says highlights the contractor’s commitment to delivering the underground mining services.
Byrnecut will begin mobilisation to the site in the September quarter 2023.
Liontown notes that the award of the underground mining services is still subject to the finalisation of a binding full-form contract. Now that the commercial terms have been agreed upon, this information will allow Liontown to finalise its operating costs review for the Kathleen Valley Project, which will be the subject of a future update.
Commenting on the award, Liontown Resources Managing Director and Chief Executive Officer (CEO) Tony Ottaviano says: “Byrnecut is a tier one underground mining services contractor with a global footprint. Its underground expertise is highly respected and well-recognised throughout the mining industry and investment community, underpinned by the people they attract and retain.
“We remain on track for first production from Kathleen Valley by mid-2024″
We remain on track for first production from Kathleen Valley by mid-2024, and I look forward to partnering with Byrnecut for the next stage of our project development.”
Liontown Resources is an ASX-listed battery minerals company focused on its transition from from an explorer to producer. As of 30 June 2023, the company had $305.93 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Liontown Resources
