Tag Archives: African Mining Services

Perenti’s AMS to add A4 open pit services to Sandfire Motheo copper mine contract mining works

Perenti Limited’s surface mining business in Africa, African Mining Services (AMS), has been awarded the contract for open-pit mining services at the Sandfire Resources A4 open pit within the larger Motheo copper mine in Ghanzi, Botswana.

The contract is valued at $235 million over a term of 73 months.

Under the terms of the contract, AMS will deliver all surface mining services associated with development and production activities at the A4 open pit.

The A4 open pit is located around 8 km to the west of Sandfire’s existing T3 open pit, where AMS has successfully progressed from development into production works. Perenti anticipates A4 pre-production and development work to commence in September 2023, with pre-strip mining to start in October 2023.

The T3 and A4 open pits are expected to be operated as a larger, integrated mining operation and, therefore, will leverage the resulting benefits of scale and the operational synergies to optimise the return on capital aligned with our financial targets. The primary synergies include the optimisation of existing infrastructure, mining equipment, maintenance facilities and both technical and operational management.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said: “We are excited about the opportunity to expand our partnership with Sandfire Resources. Motheo is a long-life asset in the Kalahari Copper belt, and
the expansion of our role here is in keeping with our strategy of disciplined growth within top-tier mining jurisdictions with high quality partners. Sandfire is now one of our largest clients and over the term of the combined contracts, the T3 and A4 open pits are expected to generate total revenue of over A$1.1 billion, delivering strong returns for Perenti and its shareholders.”

Paul Muller, President of Contract Mining, said: “Since Barminco commenced operations in 2019 and AMS later in 2021, Perenti has established itself as the leading international mining contractor in the Kalahari Copper belt. With the award of our third mine in the region, we look forward to playing our part in Sandfire’s expansion of their world-class Motheo copper mine. Beyond this, I am proud of the contribution Barminco, AMS and Perenti continue to make to the development of Botswana’s mining industry and the community more broadly.”

Caterpillar, Barloworld, AMS and Sandfire collaborate at Motheo in Botswana

When Sandfire Resources produces the first ore from its new Motheo copper mine in Botswana, southern Africa, later this year, the company will officially be on its way to developing a long-life copper production hub in the central portion of the Kalahari Copper Belt of Botswana and Namibia.

That first ore from Motheo is just the beginning of the company’s long-term growth plans in the region. Before the development of the mine was even completed, Sandfire had already announced plans to enlarge the operation by exploiting an additional deposit and building an expanded processing plant to handle production.

Recognizing the potential of the Kalahari Copper Belt, Sandfire and its chosen operations partner for Motheo — Perenti Group’s African Mining Services (AMS) — made a commitment to the highest standards of productivity, safety, responsibility and sustainability.

A critical contributor to meeting that commitment will be the use of mining technology. And key partners in that effort will be Caterpillar and Cat® dealer Barloworld Equipment, who are working with Perenti/AMS to provide a suite of technology solutions that will deliver innovation to the mining operation.

Crew with mining truck

“We know that Sandfire Resources, our customer Perenti, and the entire team at Motheo is committed to using technology to build the safest, most productive operation possible,” Nathan Wescombe, a Senior Account Manager at Caterpillar, said. “We’re proud that Perenti has chosen Cat technologies to help them become the operator of choice within the region and deliver innovation to their mining practices.”

To ensure the successful deployment of technology in an area of the world where mining technology is not the norm, Caterpillar conducted a three-day information-gathering and change management workshop to consult with key stakeholders to help ensure they are technology-ready.

“Change management is a key to the implementation of technology in any operation,” Leslie Fengu, a Senior Regional representative for Caterpillar’s Mining Technology Solutions division, said. “And it’s even more critical in an area where it’s being introduced for the first time. Fortunately, Caterpillar has a team that has plenty of experience in helping our customers manage this change – understanding the challenges, developing possible solutions to address them, and providing ongoing support through implementation and beyond.”

Held in August 2022, the workshop was very well attended, met with positive feedback, provided critical knowledge of the operation, and identified opportunities moving forward to ensure success for all stakeholders, according to Caterpillar.

Greg Lawson, a General Manager at Perenti/AMS, said: “Incorporating technology into our operations is an important piece of our global strategy. Having the support of Caterpillar and Barloworld as we implement these solutions in a new region is proving to be instrumental in helping us realise our goals. We appreciate the value of their expertise not only in the technology itself but also in addressing the significant change management that goes along with its implementation.”

The Motheo copper mine

Motheo Copper Mine is located in the Kalahari Copper Belt, a major zone of strata-bound copper-silver deposits extending for 1,000 km along the northern margin of the Kalahari Craton in Namibia and Botswana.

The greenfield project is being developed by owner Sandfire Resources, an Australia-based mining and exploration company with a global presence. Open-pit mining services are provided by contractor AMS, the Africa-based surface mining arm of Perenti Group, a global mining services company also based in Australia.

Motheo represents the foundation for Sandfire’s long-term growth plans in Botswana and is expected to generate approximately 1,000 jobs during construction and 600 full-time jobs when fully operational.

After a positive feasibility study in December 2020, Sandfire’s board approved the development of Motheo. The feasibility study identified a robust initial 12.5-year operation with annual production of high-quality copper concentrate estimated at 3.2 Mt. Site construction commenced in 2021, with first production scheduled for mid-2023.

The Motheo Copper Mine will be based on an open-pit operation for the original deposit, identified as T3. The drill-and-blast operation will focus on 10-m benches, using suitable blasting methods to minimise dilution. Trucks will be loaded by 250-t excavators. Direct run-of-mine ore will be delivered directly to the crusher or placed on stockpiles for future rehandling.

AMS selected a fleet of Cat trucks to handle hauling duties, supported by a variety of other Cat machines. Barloworld recently delivered 20 139 t Cat 785 trucks, four D10T dozers, two 777 water trucks and two 18 motor graders to the mine.

Beyond the quality expected from the Cat machines, a major factor in the equipment purchase was related to the Cat MineStar™ technology products that accompany them. AMS, Caterpillar says, selected three separate but integrated solutions that will impact the efficiency and production of the operation, the uptime of machines and the safety of its people:

  • MineStar Edge™, a cloud-based equipment management and production recording platform that provides access to highly accurate production data and gives visibility to the entire mining operation;
  • Health – Equipment insights, a user-friendly data visualisation and reporting tool that allows sites to easily access, view and analyse machine health information and gain insights to help reduce unplanned downtime and prevent failures; and
  • Cat Driver Safety System, an in-cab detection technology that can help sites identify operator fatigue and distraction and address it in real time.

Introducing technology in Botswana

Sandfire and Perenti are no strangers to mining technology. Sandfire’s DeGrussa copper-gold mine in Australia was an early adopter of autonomous mining, using Cat MineStar Command for underground to automate a fleet of underground loaders. The Perenti Group, too, recognises the value of technology in mining, and has added a dedicated services and products business to its portfolio to provide technology and consulting services to the mining industry.

But bringing a technology mindset to this region is not business as usual. For Caterpillar, this is just the third such implementation in southern Africa and the first in Botswana. Cross-departmental interconnectedness is paramount for Perenti and AMS to realise its return on investment as the Motheo team strives to deliver on business demands, Fengu, whose knowledge of the region and its history are extremely valuable to technology implementation in Botswana, said.

“Disruptive technologies, such as those chosen by AMS, require a site-wide approach to achieve successful implementation and sustainable operations,” he said. “Supervisors and their teams are required to effectively manage the implementation and functional changes that will be required with technology, adapting staffed conventional mining techniques to get the most value out of the new mining system.”

To ensure the success of these systems in a country where they have not operated previously, Caterpillar identified an opportunity to leverage the knowledge and capability of its Cat Solutions & Services team, as well as other Cat and Barloworld technology experts. The initiative was led by Caterpillar Technology Change Enablement Manager, Brett Haskins, working with Joel Patterson and Jenny Krasny as key consultants.

“We organised a workshop to develop a deeper understanding of how we could assist in this change, walk through opportunities to help them become more comfortable with the technology and better appreciate how it can help support their roles in the operation,” Wescombe said.

Understanding the site and its culture

This workshop included site observations, interviews, education and facilitated discussions designed to understand the current culture – with a lens toward building operational readiness to capitalise upon the benefits that MineStar Solutions can provide.

The visit occurred over three days with a high level of engagement from every area and level of the deployment. The visit was designed to maximise exposure to the day-to-day goings-on in the operation. Pit operations, departmental interactions and daily activities were observed to determine site mining practices, with a view to assess site readiness to apply MineStar and take advantage of the offerings.

“Understanding the history of change in all organisations was an important part of the workshop and visit,” Wescombe said. “We wanted to learn about change that had been managed well and identify areas for improvement. We did that by asking a lot of questions of people from every aspect of the operation. We engaged the site at all levels – from equipment operators to a representative from Perenti’s office in Perth, Australia.”

The discussions invited participants to share concerns or perceived challenges surrounding daily operations. They were encouraged to contribute ideas around how the daily operation and a change to the site’s mining system can be effectively managed from their perspective.

Workplace culture was also explored, gaining insight into how the site is managed and identifying areas of success and opportunities for improvement. Fengu said: “The goal of this effort was to help reduce incidents and unintended operational consequences, and to provide guidance to remedy any shortcomings through application of the technology.”

In addition, the workshop was designed to strengthen the collaborative relationship between the site, corporate office, Barloworld and Caterpillar. Caterpillar says it and its dealer are essential stakeholders who are pivotal to the successful deployment of MineStar Solutions.

“In a nutshell, our goal was to best understand how we could support AMS through the process of change management,” Patterson, Caterpillar Operational Readiness Consultant, said. “We started by encouraging all participants to leave preconceived ideas at the door on the way in to the workshop and asking everyone to be open-minded to change.”

Developing a path forward

All stakeholders agree that the workshop is just the beginning of ongoing engagement into getting the maximum value from technology at Motheo.

“The workshop helped us start the process,” Sam Farhand, Group Asset Manager for Perenti, said. “We learned a lot about the site and about each other. But now the hard work begins – addressing those challenges we’ve identified and ensuring that we never stop paying attention to how the technology is being used and continuing to find new ways to reap the benefits it delivers.”

An important outcome of the workshop is a 30-plus-page report that identifies the areas impacting successful implementation of MineStar technologies at Motheo and provides recommendations and possible solutions that will help address them.

The report is designed to:

  • Ensure understanding of the “why” for change management, and the benefits of using the Caterpillar team for this initiative;
  • Summarise the vision for the deployment as voiced by Perenti and AMS employees;
  • Articulate the landscape in which the project is taking place;
  • Highlight activities on which to partner or reinforce;
  • Present identified opportunities to adapt, build and embed new processes;
  • Identify the unique needs of the people who will be impacted;
  • Outline a change management plan to support the deployment; and
  • Share immediate action items to facilitate a successful deployment.

Sharing positive feedback

When asked about the success of the workshop, all stakeholders had positive things to say.

“The on-site engagement and participation in the workshop were outstanding,” Pierre Hill, Country Manager for Barloworld Botswana, said. “Attendance was terrific. It was a fantastic example of collaboration and teamwork.”

Wescombe agreed: “We were very pleased with the willingness of the key stakeholders to break traditional silos, open up lines of communication and actively engage in rich discussions between corporate, dealer, OEM, maintenance, planning and operations.”

But the most important feedback comes from Perenti. “We thought the workshop was very beneficial,” Farhand said. “It has helped us build a strong foundation on which to base our focus on innovation and technology.”

As the Caterpillar Manager for Perenti, Wescombe is quick to point out the teamwork and collaboration necessary for the success of the workshop – and the future of the technology in the years ahead.

“Without Greg Lawson and Sam Farhand from Perenti, this event would not have happened,” he said. “They helped us gain the traction we needed from internal stakeholders to get this off the ground. Plus, Sam and the on-site AMS Motheo team were instrumental in coordinating and supporting the workshop to ensure its success.”

“Our Caterpillar and dealer teams also deserve recognition. Leslie Fengu and Joel Patterson were key contributors to this effort, along with Pierre Hill and J.P. Briggs from our Cat dealer Barloworld. These folks worked closely with the Perenti team to build a preliminary understanding of the site challenges in order to optimise discussions during the site visit.”

The collaboration was a great example of the “three-legged stool” Caterpillar talks about when dealing with its customers in partnership with dealers. “When all three entities are working toward the same goal, we’re going to be so much more successful than when we go it alone,” Wescombe said. “We’re looking forward to a lot more opportunities to work together with Perenti/AMS and Barloworld in the years ahead.”

This is an edited version of a blog that first appeared here.

Perenti’s AMS extends contract at Resolute Mining’s Mako mine

Perenti-owned African Mining Services (AMS) has been awarded a contract extension for surface mining activities at Resolute Mining Limited’s Mako gold mine in Senegal, it says.

The revised contract is valued at approximately $85 million over a period of four years, commencing on January 1, 2023.

Through AMS, Perenti has provided surface mining activities at the Mako mine since 2017.

Mako is owned and operated by Resolute’s Senegalese subsidiary, Petowal Mining Company S.A. Resolute has a 90% interest in Petowal and the Government of Senegal holds the remaining 10%.

It is a conventional drill and blast, truck and shovel operation with mining services undertaken by AMS. The carbon-in-leach processing plant has greater than 2 Mt/y of installed capacity and comprises a crushing circuit, an 8 MW SAG mill and gold extraction circuit.

AMS to continue servicing AngloGold’s Iduapriem with help of MAXMASS

AMAX, a joint venture between Perenti Global’s surface mining business in Africa, African Mining Services (AMS), and Ghana-based mining services company MAXMASS Ltd, has been awarded a new circa-A$470 million ($346 million), five-year contract at AngloGold Ashanti’s Iduapriem gold mine in the Western Region of Ghana.

Perenti’s work in hand will increase by circa-A$280 million over the term of the contract, which is expected to commence immediately.

The new contract is structured as a 60:40 joint venture agreement between AMS and MAXMASS and represents AMS’ significant and ongoing commitment to developing and expanding the capacity and capability of local partners, Perenti explained.

Mark Norwell, Managing Director and CEO of Perenti, said the continued transformation of AMS, including the winning of quality projects underpinned by robust financial and commercial disciplines, remains a key strategic initiative in Perenti’s 2025 Group Strategy.

“We’re delighted to be extending our relationship with our long-standing client, AngloGold Ashanti,” Norwell said. “AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation.”

Perenti Mining Chief Executive Officer, Paul Muller, said AMS had a long history of delivering operational excellence and value to clients, having provided mining services in Ghana for 30 years.

“We have provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti,” he said. “We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate. Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contractors to our operations under previous contracts. The joint venture also expects to employ more than 475 Ghanaians with approximately 40% of the workforce employed from the surrounding local communities and the remaining 60% from other regions within Ghana.”

Iduapriem is an open-pit mine with two circuits each comprising two-stage milling – a gravity circuit and a carbon-in-leach (CIL) plant. The gravity circuit recovers about 30% of the gold and the remainder is recovered by the 418,000 t/mth capacity CIL plant, according to AngloGold.

Gold Fields to trial Caterpillar dual-fuel solution on haul trucks at Tarkwa mine

Gold Fields plans to test the use of LNG to power haul trucks in a trial at its Tarkwa open-pit gold mine in Ghana, CEO Nick Holland told attendees of the IMARC Online event this week.

Speaking on a panel reviewing progress of the Innovation for Cleaner, Safer Vehicles (ICSV) initiative – a supply chain collaboration between the International Council on Mining and Metals (ICMM) and original equipment manufacturers (OEMs) – Holland said the trial would involve a mix of LNG and diesel fuel at the operation, and four trucks would initially be tested with the fuel combination in 2021.

Gold Fields later confirmed to IM that the trial would take place in the second half of 2021 and involve the use of Caterpillar’s dual-fuel LNG Dynamic Gas Blending (DGB) retrofit system on four of the mine’s Cat 785C 146 t payload dump trucks.

The DGB conversion kits, available on Cat 785C and 793D haul trucks, are a dual-fuel technology that enables miners to substitute diesel fuel with LNG, according to Cat. The use of LNG has been proven to reduce emissions by up to 30%, as well as lower costs by up to 30%, Cat says.

DGB vaporises liquid fuel into natural gas, then replaces diesel fuel with LNG when possible. On average, DGB replaces about 60-65% of diesel with LNG, according to Cat.

Tarkwa, which is 90% owned by Gold Fields, produced 519,000 oz of gold in 2019, 1% lower than the 525,000 oz produced in 2018. It employs Engineers & Planners Co Ltd as mining contractor.

While this trial will potentially lower the company’s carbon emissions – as will Gold Fields’ plan to fit “diesel filters” on all its machines underground in the next 12-18 months – Holland pointed to a much loftier long-term goal during the ICSV panel.

“The challenge to our teams and OEMs is to move away from diesel completely,” he said.

Such a move could see the company employ both battery-powered and hydrogen-powered solutions at its underground mines, he added.

West African a month away from first gold pour at Sanbrado

West African Resources says it has processed the first ore at its Sanbrado gold project in Burkina Faso, putting it on course to produce its inaugural gold product within the next month.

Construction activities have now been completed on all areas of the process plant and tailings storage facility, according to the company.

All four heavy fuel oil generators have been commissioned in the power station and are now operational, while the desorption and gold room circuits are undergoing commissioning in preparation for a maiden gold pour within the next four weeks.

Open-pit mining contractor, African Mining Services, a subsidiary of the Perenti Group, has ramped up mining activities to include both the M5 and M1 South pits, with day and night shifts starting in the past week, West African said.

Currently, over 360,000 t of oxide ore is stockpiled on the run of mine pad at an average grade of 1.5 g/t Au.

Underground development continues to progress on-schedule with mining contractor Byrnecut Offshore, a subsidiary of the Byrnecut Group, having completed the primary ventilation raisebore. The ventilation fan is also currently being installed. First development ore remains on track for late March and first stoping ore is forecast for the September quarter, the company said.

West African Executive Chairman, Richard Hyde, said: “This is a major milestone for West African Resources and testament to the quality of our team and contractors. Commissioning activities will continue over the next four weeks with the first gold pour on track for early Q2 (June quarter) 2020.”

An updated feasibility study on Sanbrado from 2019 envisaged an initial 10-year mine life, including 6.5 years of underground mining, with probable reserves of 1.7 Moz (21.6 Mt at 2.4 g/t gold). The project was expected to have average annual production over the first five years of 217,000 oz gold with all-in sustaining costs of less than $600/oz.

West African picks Ausdrill’s AUMS for Sanbrado open-pit mining

Ausdrill, through its wholly-owned subsidiary, African Mining Services (AMS), has been selected by West African Resources as the preferred open-pit mining contractor for the Sanbrado gold project, in Burkina Faso.

Sanbrado, a low-cost, high-grade operation only 90 km from the country’s capital, Ouagadougou, will be the 14th commercial gold mine in Burkina Faso in 14 years. It is forecast to have average annual production of 217,000 oz/y of gold at all-in sustaining costs of less than $600/oz in its first five years of mine life.

The AMS scope of work includes a full suite of open pit mining services – including site preparation, drill and blast, load and haul, and maintenance works – over a five-year term, generating approximately A$235 million ($160 million) in revenue under a schedule of rates contract, Ausdrill said.

AMS anticipates it will employ some 190 personnel at the project, with the workforce to be predominantly local, and use a mix of new and existing equipment to deliver on the project.

AMS and West African Resources are in the process of finalising the contract terms, which will include the provision of an optional deferred payment arrangement for up to $10 million at a commercial interest rate, with works expected to commence in early 2020. West African Resources said mobilisation activities were expected to commence in November, ahead of open-pit mining commencement in January 2020.

Ausdrill Group Managing Director, Mark Norwell, said: “A key focus for the new Ausdrill group has been to enhance our surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries.

“Being selected as preferred contractor at the Sanbrado gold project is a significant achievement and represents the excellent progress we are making in building on the suite of quality projects on which AMS operates in the region.”

West African Resources Managing Director, Richard Hyde, said: “Sanbrado is the highest margin gold project in construction in West Africa and we are on target for approximately 300,000 oz of gold in the first 12 months of production. We look forward to partnering with AMS to bring this fully funded project into production in mid-2020.”