BGC Contracting has secured a five-year contract worth more than $720 million for Arrium\u2019s Iron Knob and South Middleback Ranges iron ore projects near Whyalla in South Australia.<\/p>\n
Arrium administrators KordaMentha confirmed that BGC\u2019s current mining contract, which was to be completed this year, will instead be replaced by this new contract until 2022<\/span>.<\/p>\n BGC will provide a range of mining services under the new contract including drilling, blasting, hauling, loading, dumping and train load-out.<\/span><\/p>\n BGC CEO Greg Heylen said the contract reflected the strong partnership the company has had with Arrium over the past four years.<\/p>\n He added that BGC\u2019s strengths were in it being privately owned and vertically integrated, which allowed it to adapt to changes in the market.<\/p>\n \u201cThis has been a challenging time for the mining sector as it dealt with the decline in the commodities markets in the short term,\u201d Heylen said.<\/p>\n \u201cBGC Contracting\u2019s breadth and vertical integration of services has enabled us to improve efficiencies on the project, which has resulted in lower cash costs for Arrium and the administrators.<\/p>\n \u201cDuring this time we have continued to meet Arrium\u2019s safety and production targets and we look forward to continuing our work with Arrium\u2019s team in the future.\u201d<\/p>\n Heylen also said he looked forward to providing more certain employment for workers and subcontractors in the Whyalla region.<\/p>\n Arrium Mining executive general manager Matt Reed said the collaboration provided benefits for both companies, with BGC playing a major role in helping Arrium lower its mining costs.<\/p>\n \u201cWe look forward to developing this partnership with BGC over the coming years and continuing to reduce our costs as we create a world-class business,\u201d Reed said.<\/p>\n","protected":false},"excerpt":{"rendered":"