BGC wins $100m mining contract

BGC has been awarded a contract worth more than $100 million to restart operations at Arrium Mining's Iron Knob mine in South Australia.

The Iron Knob operations will consist of two new pits, Princess East and Princess West, as well as the existing Monarch Pit, with Arrium ultimately targeting annual production of 8 million bank cubic metres.

BGC's contracting arm will provide the initial cutbacks on each of these pits, with initial plans for a single digger operating for seven months before a second dig fleet is introduced as the project ramps up.

"We are delighted to have earned Arrium's continued confidence on the back of our work at South Middleback and look forward to playing a part in returning the iconic Iron Knob project to production," BGC Contracting chief executive Greg Heylen said.

The contract adds to BGC's existing five-year contract for mining services at Arrium's South Middleback operations, which the contractor secured in 2012.

The Iron Knob contract will span four years with the potential for an extension.