The four-year contract includes a possible extension and is expected to represent a substantial addition to BGC's existing contract with Arrium's South Middleback operations.

The scope of BGC's work for Arrium in the region includes providing mining plant and maintenance for a full suite of mining services, waste and ore excavation haulage, drill and blast, product handling and train loading.

"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 chief executive Greg Heylen said.

The project will encompass two new pits, Princess East and Princess West, as well as the historic Monarch pit, which started operating in the late 1800s and is widely accepted to be the origin of iron ore mining in Australia.

BGC will provide the initial cutbacks on each of the pits.

Initial plans are for a single digger operating for seven months, after which a second dig fleet will be introduced as the project ramps up to its target annual production of 8 million bank cubic metres.



Arrium recently undertook the first blast in the area in more than 15 years as the first significant step in the mine's development.

The project has been scheduled for first ore in the second half of the year.

For BGC, the Iron Knob contract builds on a string of major wins in recent months, highlighted by the September award of a $420 million contract for the Roy Hill iron ore project in Western Australia and a $300 million contract for work with Atlas Iron.