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The contract is expected to cut haulage costs at the project by 30-35% and JV manager BC Iron said the improvement could potentially lower its cost guidance for the financial year.
The miner previously forecast C1 costs at $A42-45 per wet metric tonne but said Qube’s rates had “slightly exceeded” expectations.
BC reported strong September quarter results earlier this week, boosting its cash balance and cutting costs at the Nullagine project.
Moving forward, Qube will start work on December 1. If it performs well it has the potential of scoring a one-year extension.
The contractor is already a big name in the bulk haulage sector, handling more than 85 million tonnes per annum with a number of mining companies.
BC Iron owns 75% of the Nullagine JV while Fortescue Metals Group holds the remaining 25%.
