MLG OZ LTD (ASX:MLG) has been awarded a A$70 million open pit mining and crushing contract by DEVELOP GLOBAL LTD (ASX:DVP), marking a key step toward first lithium production and cashflow from the Pioneer Dome Lithium Project in Western Australia’s Eastern Goldfields.
The contract covers the Cade Pit, the inaugural mining stage at Pioneer Dome, and is expected to run for about 12 months, with MLG providing drill and blast, load and haul, crushing and screening, and other supporting surface activities.
Major contract supports December-quarter production
Develop said the award was one of the major commercial milestones needed to keep Pioneer Dome on track for production and cashflow in the December quarter of 2026, following a final investment decision earlier this month and a binding offtake agreement with Trafigura covering at least 750,000 tonnes of direct shipping ore lithium.
MLG’s mobilisation is targeted for mid-July 2026, with mining operations scheduled to begin in August and crushing to start from September.
The contract is expected to generate about A$70 million in revenue for MLG across its 12-month term, with the full amount contracted within FY27.
Pioneer Dome positioned as fast-to-market DSO project
Pioneer Dome is being developed as a capital-light, fast-to-market direct shipping ore project designed to take advantage of stronger lithium market conditions. Develop’s final investment decision was based on mining 850,000 tonnes of DSO from an open pit, with pre-production capital costs estimated at A$35 million to A$40 million.
The project is fully funded through a US$400 million financing and offtake package with Trafigura, which also includes Develop’s Sulphur Springs copper-zinc project.
Develop said Trafigura had committed to DSO offtake from Pioneer Dome, with terms including a time and volume-linked floor price and pricing optionality.
Regional capability key to MLG selection
MLG was selected after a competitive tender process focused on reducing execution risk and appointing a contractor with strong operational capability in the Goldfields region and relevant experience in surface mining and hard-rock lithium.
Develop said MLG’s Kalgoorlie headquarters, regional workforce and nearby maintenance facilities supported its selection, along with its lithium crushing experience, including previous work at Mineral Resources’ Bald Hill lithium mine.
MLG chief executive officer Mark Hatfield said the award was a strategically important step for the company.
“The award of the Pioneer Dome contract is a strategically important step for MLG. It positions us alongside one of the most credible emerging mineral producers on the ASX and draws on MLG’s prior experience in the lithium services market.
“This integrated scope of work, spanning drill and blast, load and haul, crushing and site services under a single accountable framework, showcases the depth of MLG’s self-perform capability and reinforces the value of its integrated service model for clients seeking a trusted, end-to-end services partner.
“We look forward to working closely with Develop to deliver this initial stage of activity safely and efficiently, and to building a strong relationship as Develop progresses its broader plans for Pioneer Dome,” Mark concluded.
Drilling supports grade upside
Alongside the contract award, Develop reported further strong infill drilling results from Pioneer Dome, with assays now received for 123 of 234 holes from a 20,000-metre drilling program completed in May 2026. Results highlighted high-grade lithium mineralisation and low iron and mica impurities across the proposed Stage 1 open pit and the Stage 2 underground mine being evaluated.
Recent significant results included 32 metres at 1.71% lithium oxide from 79 metres, 29 metres at 1.70% lithium oxide from 66 metres and 29 metres at 1.69% lithium oxide from 66 metres.
The average length-weighted infill drilling intersection within the proposed Cade Stage 1 open pit and Stage 2 underground area was 15.8 metres at 1.45% lithium oxide and 53.8ppm tantalum pentoxide on a true-width basis.
The assay results and a new geological interpretation are scheduled to be incorporated into an updated mineral resource estimate and grade-control model in the September quarter.
“Pioneer Dome is ready to go”
Develop managing director Bill Beament said the award of the MLG contract was “a major piece of the Pioneer Dome puzzle”.
“With our FID taken, Trafigura offtake locked in, all approvals in place and now our mining contractor appointed, Pioneer Dome is ready to go.
“This means we are very well-positioned to capitalise on the strong lithium market, particularly the surging demand for DSO material, with production and cashflow to ramp up in the December quarter.
“There is also potential to increase the resource grade, as demonstrated by the latest strong infill drilling results. These reveal consistently thick zones of more than 1.45% Li2O throughout both the planned open pit and underground.
“These high grades bode well for the impending updates to the resource model and mine plans”.