Brierty (ASX: BYL) has executed a four-year $185 million contract with Karara Mining for the hematite mining and associated services at the Karara Iron Ore Project in Western Australia.

Karara Mining is a joint venture between Gindalbie Metals (ASX: GBG) and Chinese steel producer AnSteel. Brierty is no longer in a trading halt on the release of today's announcement.

In February, Brierty had been named preferred contractor on Karara, and with contract terms now settled, the company has commenced delivery of mining services including drill and blast; load and haul; crushing and screening; road haulage and train loading.

Brierty is benefitting from an ongoing mining boom in Western Australia where infrastructure and land development investment has increased, particularly with Chinese interests in iron ore.

Peter McBain, chief executive officer of Brierty, said “the contract is a cornerstone mining project and provides Brierty with the ability to leverage additional opportunities from the development of the burgeoning Midwest region of Western Australia.”

Karara selected Brierty as contractor based on the strength of its team, service capability and professional approach. The project hosts a JORC Reserve of 977.5 million tonnes at 36.5% iron with an estimated concentrate of 1.027 billion tonnes at 68.6% iron. The Karara Project produces eight million tonnes per annum of high grade magnetite concentrate and has a 60 – year mine life. The joint venture also produces four million tonnes per annum of iron pellets at a new plant in China.

The project has the capacity to expand production to more than 30 million tonnes per annum for more than 30 years.

The company expects Direct Shipping Ore hematite deposits at the project to produce an initial level of two million tonnes per annum in 2012.