Capital Ltd announces potential major ramp up in mining services contract scope for Reko Diq – International Mining

Capital Ltd has announced that it has a Letter of Intent from Barrick, the operators of the in-development Reko Diq copper-gold mine in Pakistan, to significantly expand its service offering at its 50% owned major copper-gold project in Pakistan beyond the reverse circulation and diamond drilling geotechnical services it has provided since early 2023.

It says these additional works will utilise the majority of Capital’s combined mining fleets and covers two components. Firstly an early works civils and mining services contract award. Reko Diq Mining Company (RDMC) has received internal Board approvals for Capital to carry out these works, with both parties working to finalise contract T&Cs. The initial contract is anticipated to have a three year term with works focused on the construction phase of the project prior to first production. The first items of equipment are due to arrive on site in the first half of 2025 prior to commencing the agreed scope and ramping up in the second half of 2025.

A second component is an additional longer term tailings storage facility (TSF) services contract award. Subject to the conclusion of a definitive agreement, Capital will phase further items of equipment to arrive on site through 2025 with a gradual ramp up in operations from Q4 2025 onwards, currently envisaged to be at run rate utilisation from the second half of 2026. Post completion of the Sukari mining contract, this equipment requires selective rebuild and maintenance work which will be completed at the workshop facilities in Egypt prior to shipping the equipment to Pakistan.

Capital Ltd’s Capital Mining business utilises a range of equipment including 28 heavy mining trucks, two heavy water trucks, 11 excavators, four graders, nine dozers and five wheel loaders. The trucks include Caterpillar 785s with specially designed custom engineered trays from Austin Engineering which have a unique frame design that allows more ore per haul, increasing capacity, efficiency and productivity of load and haul operations. It also operates Caterpillar 777s with the excavators including Caterpillar 330, 340, 390, 395, 6020 and 6040 models; plus D9 and D10T dozers.