Emerging bauxite producer, Metallica Minerals has entered into a schedule of rates contract with the LCR Group to undertake all mining and haulage operations on behalf of the Joint Venture at the Urquhart Bauxite project. LCR will be responsible for the supply of all equipment and personnel for the mining and haulage operations and will perform all short term planning and management to deliver bauxite from the project to Hey Point, where it will be transhipped via existing infrastructure into ocean going vessels.Life of Mine schedule of rates mining and haulage contract awarded to LCR GroupCosts in line with the PFSDelivers minimal capex start upEquipment and personnel available to commence operationsThe contracting model developed by Metallica will deliver a low capital project with a compressed development schedule. LCR has agreed to capitalise its mobilisation, as well as the design and construction of the haul road linking the project to Hey Point. These costs will be paid back via monthly instalments across a 2.5 year period, thereby delivering a low capital start-up for the project.It is anticipated that mining will commence within four to six weeks after mobilisation is completed. Mobilisation is due to commence following satisfaction of a number of conditions precedent, including the grant of a mining lease for the project. No costs or liabilities will be incurred by the Joint Venture until those conditions are satisfied.LCR was selected as the contractor following a rigorous selection and tender process. The contract agreed with LCR is in line with the costs that were included in the PFS (see ASX Release 30 December 2016).LCR has confirmed that it has the equipment and personnel available and put aside for the Urquhart project, including a fleet of 130 t road trains for the efficient haulage of bauxite to the Hey Point barge loading facility, an approximate distance of 15 km.Metallica CEO, Simon Slesarewich: “Metallica is excited to work with an experienced and relationship based group like LCR on a long term basis, thereby delivering certainty and value for all stakeholders. This contract further de-risks the delivery of production from the Urquhart bauxite project in Q3 CY2017.”LCR Group CEO, Col Partington: “LCR is delighted to team up with the Joint Venture to deliver the Urquhart bauxite project. The cultural fit and the longevity of the contract has given LCR certainty to commit capital and resources that will ensure the success of the project that will see Metallica becoming Australia’s next bauxite producer.”LCR is one of Australia’s leading privately held industrial services businesses, operating through two key divisions – Mine Services and Bulk Haulage, as well as Mobile Lifting and Transport. LCR is owned by a committed and highly experienced management team and Archer Capital and operates across the East Coast of Australia and Papua New Guinea.LCR’s Mine Services and Bulk Haulage business is a leading service provider to clients in the resources sector in Queensland and New South Wales, including; Idemitsu Australia Resources, Jellinbah Group, Yancoal Australia, Vale and Wesfarmers. The group is an expert in providing efficient services that link mines to fixed transport infrastructure.LCR owns and manages a well-invested fleet of over 100 pieces of mobile plant, which is sourced from leading original equipment manufacturers.