PERTH (miningweekly.com) – ASX-listed AusTin Mining will switch to owner mining at its Granville East mine, in Tasmania, following the liquidation of contract miner Jemrok.
AusTin has terminated its contract with Jemrok and is now progressing with the necessary arrangements to start owner mining, which is expected to cost between A$100 000 to A$130 000 a month, depending on blasting requirements.
The miner told shareholders that the decision to adopt an owner mining model as opposed to appointing a new contractor was based on minimising disruption to the project by using existing equipment at site, as well as ex-Jemrok employees. The owner-mining model is also expected to deliver greater control and improvement in mine productivity, following a decline in productivity in early 2019.
“The appointment of liquidators to Jemrok and the subsequent termination of the contract concludes a frustrating period of delays and declining productivity at Granville,” said AusTin CEO Peter Williams.
“We look forward to assuming full control over mine production and working with the new employees and suppliers for the delivery of increased ore to the processing plant with a commensurate increase in concentrate production.”