Bellevue Gold Ltd (ASX:BGL) has awarded the mining contract for the Bellevue Gold Mine in Western Australia to Develop Ltd.
The four-year contract is valued at around A$400 million and will see Develop’s Underground Services division undertake construction, development and production activities at the underground mine.
Develop was awarded the contract following a six-month competitive tender process, which included rigorous analysis by an independent third party at each stage.
The terms of the contract are in line with the total pre-production cost forecasts contained in Bellevue’s stage two feasibility study, announced on September 2, 2021.
Work at the mine will start in the June quarter of 2022.
Bellevue managing director Steve Parsons said Develop’s team of world-class underground mining specialists were perfectly suited to the Bellevue Project.
“Develop has built an exceptional team with extensive underground mining knowledge and experience in Western Australia gold operations. Applying their immense experience to the Bellevue mine further de-risks the project on both an operational and financial level.
“Develop has recruited a significant number of underground personnel and secured the latest equipment for use in underground construction and mining.
“The combination of the Develop team and the outstanding people we have at Bellevue means our project is in extremely talented hands.”
Highly experienced team
Develop is led by managing director Bill Beament, the former executive chair of gold miner Northern Star Resources. He was also previously general manager of operations at major underground mining contractor Barminco.
The entire team is highly experienced and ensures BGL is in capable hands.
The Develop Underground Services team includes Paul Nilsson, manager mining underground, and Aaron Armstrong, maintenance manager underground. Both men have held senior management roles for more 10 years at Northern Star Resources Ltd (ASX:NST) and Barminco.
The project manager is Jordan Hall, who spent 19 years working for leading mining contractor Byrnecut, predominantly in senior management roles at major WA projects such as the Jundee gold mine and Golden Grove base metals project.
Develop has recently recruited a significant number of underground personnel and secured key equipment. This capability ensures Develop has ready access to a deep pool of underground mining specialists and the latest machinery for use at Bellevue.
“Our team is perfectly suited to the Bellevue project, with decades of underground development and production experience, particularly in WA gold projects,” Beament said.
“We have access to an extensive pool of specialists across the required disciplines, many of whom are unquestionably world-class, and we are well-advanced in securing the latest equipment.
“Our business model has attracted extensive interest from industry people, we have strong track records of operational excellence on all levels and we are ready to deploy our skills and expertise.”
ESG focused
Develop is also focused on delivering services with good environmental, social and governance (ESG) practices, and Bellevue said its strong commitments to ESG targets align with Develop’s core beliefs.
“This is an enormous opportunity for both companies,” Beament said.
“Bellevue is an exceptional gold asset with a great production outlook and low all-in sustaining costs in the heart of WA.
“It is one of the largest contracts in the WA gold mining industry. It is also one of the most environmentally ambitious projects, with the aim of producing Australia’s first carbon-neutral gold.
“I have no doubt that applying the combined skills and experience of the Bellevue and Develop teams to this exceptional asset will ensure strong returns for all stakeholders.”
On Bellevue’s ESG goals, Parsons said, “We have a clear strategy to be Australia’s first carbon-neutral gold producer and as the mining contractor, Develop will play a key role in helping ensure we meet this ambitious target.”