Tier-1 mining contractor Byrnecut has been awarded the Underground Mining Services for our world-class Kathleen Valley Project.

The appointment of Byrnecut is a significant milestone for our project, which is underpinned by a Mineral Resource Estimate of 156 Mt at 1.4% Li₂O and 130ppm Ta₂O₅. Byrnecut’s demonstrable record and capability across the entire underground value chain, from mine start to full and ongoing production and at a size and scale required at Kathleen Valley, was critical to its success in the tender process.

The letter of award follows a transparent and competitive tender process that commenced in March 2023 and concluded this month, on schedule. The tender and award covers all aspects of underground construction, including significant early capitalised development (approximately 60 kilometres of a total 90 kilometres during the contract period) and production across the Mt Mann and Northwest Flats orebodies as we expand to support the initial plant throughput capacity of 3 Mtpa. Given the services will cover both production and capitalised long-term development, the full contract value of approximately A$1 billion over four years comprises operating costs, sustaining capital, and early enabling works for the planned 4 Mtpa expansion, as part of the longer-term operation of the underground mine.

The evaluation process also included Health, Safety, Environment and Quality (HSEQ), innovation, community engagement and performance history. Importantly, Byrnecut is committed to working in collaboration with the Tjiwarl Traditional Owners to increase Indigenous participation in mining.

Byrnecut was ultimately selected in recognition of its extensive expertise in large-scale underground mining, including state-of-the-art and technologically advanced mining equipment and processes, robust safety and training systems and logistical support.

Byrnecut will invest more than A$125 million in new equipment highlighting their commitment to the successful delivery of underground mining services. They will begin mobilising to site throughout the September quarter, aligned with the on-schedule conclusion of open pit mining activities at Mt Mann.  Mt Mann will be the central location for the future portals – six in total – into the underground operations, with development to commence in the December quarter.  

The award of the Underground Mining Services to Byrnecut is subject to finalisation of a binding full-form contract. Now that the commercial terms have been agreed, this information will allow us to finalise our operating costs review for the Kathleen Valley Project which will be the subject of a future update.

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