Tag Archives: Action Drill & Blast

NRW’s Golding to take contract mining reins at Stanmore’s South Walker Creek mine

NRW Holdings Limited’s wholly owned subsidiary, Golding Contractors Pty Ltd, has executed an agreement to acquire the mining services contract, associated fleet and transfer of the employees that HSE Mining Pty Ltd has deployed to Stanmore Resources Limited’s South Walker Creek (SWC) mine site, in Queensland, Australia.

The transaction value of A$85 million ($56 million) less assumed employee liabilities of approximately A$15.3 million, will be funded via NRW’s asset finance facilities.

The transaction will see Golding employ approximately 550 HSE personnel and operate the heavy mining equipment presently deployed at SWC. The mining services contract to be novated to Golding as part of the acquisition is expected to generate annual revenue of approximately A$250 million, and unless further extended by agreement between Golding and Stanmore, expires in August 2025.

South Walker Creek is an open-cut mine 35 km west of Nebo in Queensland’s Bowen Basin. The mine has been operating since 1996 and adopts a multi-bench, open-cut mining method uising a dragline, and truck and hydraulic excavators. With a mine life of 25-plus years, South Walker Creek produced 4.9 Mt of high-quality low volatile PCI coal in the 2021 financial year. Stanmore Resources acquired BHP’s 80% interest in BMC in May 2022, becoming the operator of South Walker Creek.

Jules Pemberton, Managing Director and CEO, said: “I am delighted that NRW has been successful in acquiring the HSE Mining assets and inventory and securing the novation of the mining services contract with Stanmore at South Walker Creek. NRW, through our Golding and Action Drill & Blast businesses, has had a long association with Stanmore and I look forward to our teams continuing to deliver industry leading services. I also look forward to welcoming the HSE personnel into the Golding and broader NRW team.”

HSE and Golding are working through the transition arrangements, with financial close to occur at the end of July 2024.

NRW’s Action Drill & Blast set for long-term contract at Greenbushes lithium mine

NRW Holdings Limited’s wholly owned subsidiary, Action Drill & Blast Pty Ltd, has been issued a Notice of Award by Talison Lithium Australia Pty Ltd for drill and blast services at the Greenbushes lithium mine in Western Australia.

This award follows the longstanding relationship Action has had with Talison Lithium since Action commenced drill and blast activities on site in 2011, NRW said.

The seven-year (plus two-year option) contract is valued at circa A$300 million ($203 million) over the initial seven-year period and is scheduled to commence in July 2023.

The scope of works under the contract include ore, easte, pre-split and RC grade control drilling together with loading, stemming and initiation of bulk explosives.

Plant requirements for the project will be sourced from within the Action business together with new equipment capital expenditure of circa-A$30 million over the life of the contract.

The contract will require a peak workforce of some 160 personnel, including the 56 currently employed on site. The majority of the workforce will be sourced from the local community, building on current relationships and training programs, NRW said.

NRW Holdings banks Olive Downs, Mt Webber work

NRW Holdings has added more work to its roster with confirmation of projects from the Olive Downs coking coal project in Queensland and the Mt Webber iron ore mine in Western Australia.

Golding Contractors, a subsidiary of NRW, has secured the rail civil construction contract for the Pembroke-owned Olive Downs project.

The civil works to be undertaken include a new 19-km rail loop for the new steelmaking coal project, including all earthworks, drainage culverts and construction of two new rail bridges. The scope also includes importing capping material up to underside of ballast.

The contract is valued at circa-A$52 million ($35 million) and is expected to have a duration of 14 months. In addition, Golding has also been awarded circa-A$15 million of bulk earthworks, drainage and roadworks relating to the new coal handling processing plant at Olive Downs.

Olive Downs is being developed to produce up to a forecast 15 Mt/y of saleable coal over its 79-year mine life.

NRW has also received an executed contract extension from Atlas Iron Pty Ltd for the mining and crushing services works at Mt Webber.

Some 220 km south of Port Hedland in the Pilbara Western Australia, Mt Webber has two mining areas in Fender and Dalton, which produces a high-grade lump and fines product that is used in the Atlas Iron supply chain.

The works to be continued include load & haul, drill & blast and run-of-mine re-handling and crushing and screening. The drill & blast and crushing components are to be undertaken by NRW’s wholly owned subsidiaries, Action Drill & Blast Pty Ltd and Primero Pty Ltd. Primero has designed, constructed and will operate a new PGX-1000 crushing plant to allow crushing and screening of up to 1,000 t/h.

The anticipated value of the contract extension is circa-A$60 million over a duration commencing July 2022 and expected to be completed by the end of 2024 with a project workforce averaging around 80 personnel.