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Iluka Resources has restarted production at synthetic rutile kiln 2 (SR2), part the Capel rutile operations in Western Australia, after lifting a suspension on activities at the operation.
The Perenti Global subsidiary is expected to undertake mobilisation and site establishment activities and develop a 3.5 kilometre underground exploration decline at Red Chris.
The contract is valued at $38 million over a 16-month period.
Perenti managing director and chief executive Mark Norwell said the company had been looking to grow its presence in North America.
“Geographic expansion has been a key focus of our 2025 strategy and this early-stage work at Red Chris builds on our regional growth capabilities after commencing in North America just over a year ago,” Norwell said.
“The underground exploration decline works are a significant opportunity and puts the company in a strong position to access the much wider scope of works associated with the potential block cave development that Newcrest aims to progress towards in the coming years.”
The Red Chris project is a 70:30 joint venture between Newcrest and Vancouver-based Imperial Metals Corporation, and lies on the territory of First Nations people, the Tahltan Nation.
Perenti’s chief executive for mining Paul Muller highlighted the importance of the company’s strong relationship with local communities and Traditional Owners.
“We acknowledge and respect the Tahltan as the First Nations people of the area and we look forward to working together at the Red Chris project,” Muller said.
“Our focus at Red Chris will be on delivering safe, reliable and efficient development services and we look forward to building long and productive relationships with Newcrest, the members of the Tahltan Nation and all of our stakeholders in British Columbia.”
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