Liontown Resources executes $1b underground mining contract with Byrnecut Australia

Liontown Resources (ASX:LTR) has executed a $1b contract with Byrnecut Australia for underground mining services at the Kathleen Valley lithium project.

In August 2023, a letter of award was issued and the execution of the contract between both companies is the final milestone in the highly competitive and technically comprehensive tender process.

Preparatory works are underway at Kathleen Valley ahead of Byrnecut’s mobilisation in the coming weeks, with the development of multiple declines from the Mt Mann box cut estimated to commence on schedule in November 2023.

The $1b contract will last four years and comprises operating costs, sustaining capital and capital associated with the operation of the underground mine.

Liontown managing director and chief executive Tony Ottaviano is pleased to award the contract to Byrnecut.

“I am pleased to announce this final milestone in the underground mining services contract,” he said.

“As I have previously said, Byrnecut is a globally experienced and professional tier-1 underground mining services contractor.

“We look forward to partnering with their motivated teams to achieve our production and ramp up targets at Kathleen Valley, with first production on track for mid-2024.”