ASX-listed Vault Minerals will transition load-and-haul operations at its King of the Hills (KoTH) openpit in Western Australia to an owner-operator model from January 1, 2027, following the expiry of its current mining services contract at the end of 2026.

The decision comes after a comprehensive tender process and assessment of operating models, with Vault concluding that owner mining will deliver greater long-term value and operational control.

Vault said in a statement on Wednesday that the move would provide “superior cost efficiency” and “enhanced cost control” by allowing direct management of mine operations. The company also cited “operational agility”, “workforce stability”, and “strategic alignment” among the key advantages of the owner-operator model.

“Owner operation is materially more cost-effective over the life-of-mine,” Vault stated, adding that owning equipment also creates “enduring value, with potential for resale or redeployment”.

The transition follows a significant increase in KoTH openpit ore reserves announced in May 2025, extending the mine’s life to 13 years. Stockpiles generated during that period will also provide baseload mill feed for Vault’s Leonora operations for an additional five years.

To support increased activity – forecast to rise by about 35% – Vault plans to deploy a larger and more productive fleet, including two 360-t and one 260-t excavators, supported by 190-t haul trucks and ancillary equipment. Average material movements are expected to reach about 14-million bank cubic metres a year over the life of the ore reserve.

A transition plan will be implemented throughout the 2026 financial year and the first half of the 2027 financial year to ensure a seamless start to owner mining.

Vault will retain contract drill and blast services at KoTH, with a preferred contractor selected for a five-year term starting January 2027, subject to final contractual agreements.

The company confirmed there would be no change to its Leonora production or all-in sustaining cost guidance for 2026, nor to its 2027 and 2028 outlook. Deposits of about A$2-million for long-lead fleet items are expected to be paid in the second quarter of 2026, with equipment financing and hybrid funding options currently under review.