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Macmahon Holdings has secured an early contract agreement with Strandline Resources for the Coburn mineral sands project in Western Australia.

Under the contract, Macmahon will provide and operate a mining fleet for ore mining, overburden removal, pit backfill and land recontouring.

Mining of ore is planned at a rate of 23.4 million tonnes a year. The contract is expected to last for the first five years of Strandline’s production at Coburn.

Strandline managing director Luke Graham said the agreement with a highly reputable mining contractor formed a key part of the company’s strategy to prepare for near-term development.

“We … look forward to further optimising the mining solution and contract documentation in readiness for development,” Graham said.

“Coburn has a world-scale inventory, it is in a Tier 1 location, we have binding offtake agreements in place with top-shelf customers, reputable contractors on board developing solutions and project funding discussions progressing strongly.”

The contract will be built upon the mine plan, methodologies and productivity estimate assumptions outlined in the definitive feasibility study for the Coburn project.

Strandline uses a mining method that features conventional open pit dry mining in free-dig sand, in-pit tailings deposition, progressive backfill and rehabilitation.