Contractor shake-up at HBJ

Northern Star Resources, owner of the HBJ gold operation in Western Australia, has terminated the mining development and services contract of its partner, Westgold division Australian Contract Mining (ACM).
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Northern Star has nullified the ACM contract effective December 23

Staff Reporter

Westgold said it has notified Northern Star, which has cancelled the deal on a ‘without cause basis,' has indicated an effective date of December 23.

Officials pointed out that ACM was present to provide complete mine development and production services to NST at HBJ following Westgold's sale of South Kalgoorlie Operations earlier this year to NST.

In addition to this news, Westgold - which has been dewatering and refurbishing the Big Bell underground operation in the Murchison region over the last two-plus years - can now confirm first ore from the asset.

The company called it a milestone for the ramp-up to its Cue gold operations, and said it believes most of the equipment in use at HBJ now can be placed into immediate use at other operations' expansion projects. It also feels it will be able to continue employment for a majority of the residential and FIFO workers now at HBJ.

Westgold said the early termination will likely be earnings neutral for the group.