Construction and mining contracting company Watpac is set to deliver mining services at Hanking Gold’s new Axehandle Gold mine in the Yilgarn region, Western Australia, under an $80m contract.

The mine, which is part of the existing Southern Cross Operations, is located about 5km from the Cornishman pit.

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"This contract is not only a major boost for the group, significantly increasing the work in hand for our civil and mining business, but is also a welcomed project for Western Australia."

Under the terms of the contract, Watpac will use equipment sourced from its own fleet to provide services with regard to the removal and stockpiling of topsoil, bulk excavation of overburden and ore.

Watpac managing director Martin Monro said: "Over the last 12 months, we have focused on quality outcomes for our civil and mining clients and this strategy has shown that a strong focus on relationships, local networks and operational excellence are valued despite a challenging market.

"This contract is not only a major boost for the group, significantly increasing the work in hand for our civil and mining business, but is also a welcomed project for Western Australia."

Watpac expects to begin works at Axehandle soon, and create more than 100 jobs at peak operation.

Diversified international mining company Hanking Gold is a member of China Hanking and has more than 20 years of mining experience in China, Indonesia and Australia.