The contract will entitle PRG to a 30 per cent share of the profit from the stage one development of the C4 iron deposit.

It will involve all aspects of operations including mining and transport of stage one of the C4 iron deposit.

PRG will construct the Wiluna West haul road, open pit and other infrastructure, as well as perform surveys, mining, crushing and screening.

However, the contract may come to a halt if projected profitability falls below $10 a tonne.

“This project has added to a record year for PRG. Our business has gone from strength to strength and we are extremely happy to have the opportunity to deliver this project in partnership with GWR,” PRG managing director Scott Dryland said.

The next steps for the C4 development include grade control drilling program, completion of agreements with Port of Geraldton for services and finalising offtake agreements for product sale.

The proposed C4 development will open up the entire 131 million tonnes of high grade Wiluna West project for exploitation.

The C4 deposit is 1.4 kilometres long and contains a combined direct shipping ore (DSO) hematite and JORC 2004 mineral resource estimate of 21.6 million tonnes at 60.7 per cent iron.

“The Wiluna West iron ore project, an exceptional, DSO iron ore development project, will produce a high grade, low impurity iron ore. The company aims to take advantage of the current strong iron ore prices,” GWR chairman Gary Lyons said.