News

The close working relationship between mining billionaires Gina Rinehart and Chris Ellison has again been highlighted after Roy Hill extended a contract with the crushing division of Mineral Resources at its namesake Pilbara mine.

The “multi-year” contract extension comes hot on the heels of the two companies striking a landmark deal to jointly develop new port facilities at Port Hedland as each looks to expand iron ore exports.

The new contract between Roy Hill and MinRes CSI Mining Services extends a crushing contract between the two parties that has been in place since 2017.

However, the new arrangement will see CSI deliver an expanded scope of work that includes crushing, screening and haulage services.

MinRes said CSI was uniquely positioned as a key service provider to Roy Hill, given its strong track record of exceeding performance targets and detailed understanding of the mine and its operational processes and procedures.

“In delivering the new contract, CSI will deploy an innovative new screening solution to deliver industry-leading efficiencies,” he said.

“The screening solution is an exclusive product to CSI and not available on the market, giving CSI a distinct design advantage.”

Mrs Rinehart turned to CSI in 2017 when Roy Hill was experiencing crushing difficulties because of the hardness of its ore.

MinRes mining services boss Mike Grey said CSI’s track record at Roy Hill demonstrated that it could mobilise quickly and exceed production targets while maintaining an industry-leading safety record.

Roy Hill chief operating officer Anthony Kirke said the new and expanded multi-year contract reflected the strong relationship between the two companies.

The port joint venture deal announced this week, which also involves Mrs Rinehart’s Hancock Prospecting, aims to secure and develop a new iron ore export facility at Stanley Point Berth 3 at South West Creek in Port Hedland.

The proposed berth is one of two earmarked for development by the State Government.

Under the terms of the deal, Roy Hill would develop and operate the project, providing rail haulage and port services.

However, any development would be subject to extra capacity being allocated to the players involved as well as government approval to build the hotly contested berth and MinRes and Hancock each making final investment decisions to proceed.