EQ Resources’ (ASX: EQR) Mt Carbine mine is transitioning to owner-operator mining. This change comes after 14 months of mining on a cost-plus basis to establish site-specific baseline costs and procedures. The owner-operator model will result in cost savings, operational control, and mining flexibility while upskilling EQR’s local workforce.
EQR executed a Mining Services Agreement with Golding Contractors in May 2023.
The contract was split into two phases to ensure a detailed understanding of the schedule of costs from mining hard rock tungsten. This was done to help de-risk the Project and ensure scope delivery without having to build significant risk premiums into the Contract.
Phase 1 was estimated to take 12-18 months on a cost-plus basis, after that, as outlined in the earlier release, the parties intended to transition to a rise and run matrix rates on fleet composition and material type basis.
After 14 months of mining operations on a cost-plus basis, the decision to finalise the Phase 1 contract with Golding and transition to owner-operator mining reflects extensive planning and evaluation to determine the most effective operating model as EQR continues to grow and maximise the value of the Andy White orebody. The first 14 months of mining by Golding has established an expert framework and infrastructure for the mining operations, OH&S, and personnel development.
Along with securing continuity in leadership, Mt Carbine has also secured the majority of employees previously engaged by Golding and have brought them into the Mt Carbine operations team. This continuity in experience and understanding as well as supporting local employees is the key to the continued success of the mining operations.
As owner-operators, Mt Carbine is forecasting a reduction in operational costs by internalising the mining and moving operations to a 24h per day mining roster, from a current 12h per day. This increases tonnes moved monthly and reduces overall unit cost and provides earlier access to the higher-grade vein packages as verified by the recent drilling campaign.
“Our teams have worked smoothly together over the past 14 months as we re-opened the Andy White open pit at Mt Carbine,” CEO, Kevin MacNeill, said.
“Our existing staff and transferred staff have taken on board much of Golding’s mining expertise over that period, and we are thankful for Golding's assistance in the transition to owner-operator mining.”
