Metallica appoints mining and haulage contractor for Urquhart Bauxite project

<p>An Australian bauxite developer Metallica Minerals Limited (Metallica) today announced that the company has appointed the LCR Group (LCR) to undertake all mining and haulage operations on behalf of the Joint Venture at the Urquhart Bauxite project. For this, its subsidiary has signed a schedule of rates contract with LCR.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Screenshot001-15.jpg" alt="news" width="408" height="227" /></p> <p>Metallica CEO, Mr Simon Slesarewich said,&ldquo;Metallica is excited to work with an experienced and relationship based group like LCR on a long term basis, thereby delivering certainty and value for all stakeholders. This contract further de-risks the delivery of production from the Urquhart Bauxite project in Q3 CY2017.&rdquo;</p> <p>The LCR Group will be responsible for the supply of all equipment and personnel for the mining and haulage operations. &nbsp;The Group will also perform all short-term planning and management to deliver bauxite from the project to Hey Point, where it will be transhipped through existing infrastructure.</p> <p>LCR Group CEO, Col Partington commented: &ldquo;LCR is delighted to team up with the Joint Venture to deliver the Urquhart Bauxite project. The cultural fit and the longevity of the contract has given LCR certainty to commit capital and resources that will ensure the success of the Project that will see Metallica becoming Australia&rsquo;s next bauxite producer.&rdquo;</p> <p>{googleAdsense}</p> <p>The mining is expected to start within 4-6 weeks after mobilisation is completed. The company said that the mobilisation will begin after the satisfaction of a number of conditions precedent, including the grant of a mining lease for the Project.</p> <p>The contracting model which is being developed by Metallica will deliver a low capital project with a compressed development schedule. LCR have approved to capitalise their mobilisation, as well as the design and construction of the haul road linking the Project to Hey Point. The costs will be paid back through monthly instalments across a 2.5 year period.</p>