News & Media
Orica signs landmark ‘rock on ground’ mining services contract with Sydvaranger Gruve AS (Northern Iron Limited) in Norway
27 Mar 2014
Orica (Orica Norway AS) has signed a landmark ‘rock on ground’ (ROG) mining services contract with Sydvaranger Gruve AS, becoming the largest ROG services contract globally for Orica.
The six year contract is for the supply of total rock on ground blasting services to the Sydvaranger Iron Ore mining operation, situated in northern Norway. Sydvaranger is a subsidiary of the Australian mining company, Northern Iron Limited, which is a 100% owner of the mine.
The large services based mining contract will see Orica supply the full range of broken rock services for approximately 140 million tonnes of broken rock over six years for the open cut mining operation. This will incorporate design, explosives loading and drill and blasting operations at the site. Orica will provide the necessary explosives, drill fleet, personnel and management to deliver the blasted volumes required throughout the duration of the contract term.
Orica Norway AS Managing Director Jeff Court said: “The partnership with Sydvaranger represents Orica’s first major integrated rock on ground services contract in Norway. Across Europe, the agreement will be the largest single sales contract and globally becomes the largest ROG services contract for Orica”.
“The Orica/Sydvaranger partnership aligns well with Orica’s strategy of offering differentiated value add services to global mining customers in key commodity groups. Through this agreement Orica will leverage global best practice and leading technology to deliver an enhanced competitive edge to Northern Iron’s Sydvaranger operation,” Mr Court said.
Commenting on the contract award, Managing Director of Northern Iron Limited, Antony Beckmand said: “We are delighted to be partnering with Orica to manage our explosives, drill and blast operations at our Sydvaranger mine site. With Orica’s global expertise, technical support, research and development and proprietary knowledge, we expect the Orica / Sydvaranger partnership will deliver both safe and efficient operations.”
“The ROG contract improves the integration and accountability of our mining processes which is an important step toward achieving further improvements in productivity whilst minimising production costs,” Mr Beckmand said.
Orica Norway AS was awarded the contract following the completion of a competitive tender and due diligence process. The transition of services across to Orica at Sydvaranger will align with the expiry of current contracts over the remainder of 2014.
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