Adelaide Hills Kanmantoo mine owner Hillgrove, SA mining services provider Exact Mining end deal a year ahead of schedule SOUTH Australian mining services contractor Exact Mining will stop work at Hillgrove's Kanmantoo copper mine in the Adelaide Hills today, which employs close to 140 of its staff. Mine owner Hillgrove informed shareholders a settlement agreement between the two parties will be concluded today in relation to "a mutual termination of the mining services contract" - a year ahead of schedule. Wayville-based Exact Mining has worked on major projects in South Australia, including the Olympic Dam operations, and has experienced strong demand for its pit mining, quarry management and civil earthworks expertise. Hillgrove outsourced mining operations to Exact Mining in 2010, leading to the official mine opening early last year. Hillgrove managing director Greg Hall, who was appointed in February this year, said the company sees this as an opportunity to review its mining and technical arrangements to reduce costs at Kanmantoo. He refused to detail the reasons for the termination, saying it was a mutual arrangement and said the settlement would remain confidential. Hillgrove views this as a short-term transition to a stronger, more competitive outcome... Through this changeover process the Kanmantoo Copper Mine is forecast to remain cash flow positive," Mr Hall said. Last month, at his first annual general meeting with shareholders, Mr Hall said the company was in discussions "with our mining contractor to lift mining performance to achieve our production targets." Production had been significantly hampered due to problems with the mine's primary crusher until April this year when a new crusher circuit was installed. Alternate contract arrangements have already been made to produce copper at 60-70 per cent of capacity with alternate mining fleet arriving on site in two weeks. The company expects to return to normal operations in six weeks. Hillgrove said it would keep the market updated on details of long-term replacement mining services and potential impact on production. Exact Mining declined to comment on the development or discuss the impact on staff, saying it was bound by a confidentiality agreement.