RDG said its 80%‐owned subsidiary, Crushing Service Solutions, had recently demobilised its CSS staff and equipment from Tianye SXO Gold Mining's one million tonne per annum Minjar processing plant near Southern Cross, reportedly due to early contract termination, but it did not give any further explanation.

 

The contract, only announced in June, was for 12 months.

 

The services company said it was reviewing operations at CCS, and was considering its future direction to ensure profitability.

 

In August, when RDG announced earnings of $4.9 million, largely due $1.7 million from asset sales, with just $100,000 in operating cashflow, the company described its crushing and screening business as challenging, saying after two years it was clearly difficult to make consistent and stable profits from short term crushing and screening projects.

 

The bad news at Southern Cross was more than offset by the award of a $57.5 million design and construction contract for central facilities at Fortescue Metals Group's Solomon hub in the Pilbara, 60km of Tom Price.

 

Solomon comprises the higher-grade Firetail and Kings Valley mines which together have a production capacity of 75Mtpa. Work is underway for an expansion to include the Queens Valley mining area 

 

RDG's contract is expected to be completed in mid-2021. 

 

The company's subsidiary, Central Systems, won a contract to design and construct an overpass at FMG's Cloudbreak mine.

 

The company also confirmed that drilling had begin on its Ant Hill and Sunday Hill manganese tenements, in the Pilbara.

 

RDG acquired a 100% interest in the leases in June from Mineral Resources, which became a 75% shareholder, and agreed to advance loans of up to $35 million.

 

RDG's stock closed up 4% at 7.3c yesterday, valuing it at $177 million.