Tag Archives: Blackwater

BUMA Australia banks Whitehaven Coal Blackwater mine contract

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BUMA Australia Pty Ltd has entered into a contract with Blackwater Operations Pty Ltd, a subsidiary of Whitehaven Coal Mining Limited, to provide pre-strip mining services at Blackwater mine, a metallurgical coal mine in the Bowen Basin, in central Queensland, Australia.

The announcement, made by PT Delta Dunia Makmur Tbk subsidiary, PT Bukit Makmur Mandiri Utama (BUMA) – which counts BUMA Australia as a wholly owned Australian subsidiary, comes hot on the heels of Whitehaven taking over the asset from BHP Billiton and Mitsubishi Alliance (BMA).

The contract is expected to contribute significantly to BUMA Australia’s revenue until June 2026, and an average annual production of approximately 36 million bank cubic metres of overburden removal. The contract with Whitehaven Coal is a continuation of the services that BUMA Australia had provided at Blackwater mine with BMA.

Dian Andyasuri, Director at Delta Dunia Group, said: “We are pleased that Whitehaven Coal has recognised BUMA Australia’s extensive expertise at the Blackwater mine – a true acknowledgment of our legacy of excellence in the region. This new contract shows that BUMA Australia’s stellar reputation and expertise are recognized and trusted by industry-leading mine owners. BUMA and Delta Dunia Group are committed to fostering strong, enduring relationships and prioritizing the success of our clients.”

Since May 2012, BUMA Australia has been a key player at the Blackwater mine, partnering successfully with BMA, the company says. This experience has refined BUMA Australia’s capabilities in truck and excavator pre-strip
operations, enhancing its understanding of the site’s dynamics and operational challenges.

Colin Gilligan, CEO of BUMA Australia, said: “This new contract cements BUMA Australia’s reputation in the Bowen Basin, where we provide pre-strip and coal mining services to the metallurgical coal industry at the Blackwater, Goonyella Riverside and Saraji mines, as well as at the Broadmeadow East and Burton mines. Following Whitehaven’s acquisition of the Blackwater mine from BMA, we are eager to contribute to their operational success. Our track record of safe, efficient and consistent performance at Blackwater strengthens our confidence in our ability to deliver for Whitehaven Coal.”

Whitehaven Coal to acquire BMA’s Daunia and Blackwater mines

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Whitehaven Coal has executed definitive sale agreements with BHP Group and Mitsubishi Development Pty Ltd (together, BMA) to acquire 100% of both the Daunia and Blackwater coal mines in Queensland, Australia, for an aggregate consideration of $3.2 billion.

Whitehaven says the transaction delivers significant value upside with attractive growth opportunities in Queensland’s Bowen Basin, including synergies with Whitehaven’s Winchester South development project. It also transforms Whitehaven into a metallurgical coal producer in line with strategy, with pro-forma managed run of mine (ROM) production of around 40 Mt/y annum and pro-forma revenues of around 70% metallurgical coal and 30% thermal coal.

Completion of the acquisition is expected in the June 2024 quarter subject to satisfying conditions precedent including regulatory and merger control approvals.

The Daunia open-cut coal mine is 30 km south-east of Moranbah, and about 170 km southwest of Mackay in Queensland. The mine produces a hard coking coal (HCC) and pulverised coal injection (PCI) metallurgical coal products, and it is expected to produce an average of circa-4.9 Mt/y of saleable coal production over the next five years. It is expected that the remaining LOM production will continue until 2040. Daunia is adjacent to Whitehaven’s Winchester South development project in the Bowen Basin. Following the acquisition, Daunia’s coal products will continue to be exported to customers across Asia through the Dalrymple Bay Terminal near Mackay.

Back in 2020, BMA announced a A$100 million ($64 million) investment and new jobs as part of the introduction of 34 autonomous trucks at the mine.

The Blackwater coal mine is an open-cut mine which lies 73 km south-east of Emerald in Queensland and is expected to produce an average of circa-12.4 Mt/y of saleable coal production over the next five years. It is one of the largest coal mines in Australia, with a strike length of 80 km, and has the largest dragline fleet (7) in the Southern Hemisphere. Both HCC and semi soft coking coal (SSCC) metallurgical coal products are mined at Blackwater. The remaining LOM production is expected to be greater than 50 years. Blackwater’s coal products are exported to customers across Asia through the RG Tanna Terminal north of Gladstone.

Paul Flynn, CEO & Managing Director of Whitehaven, said: “This is a compelling transaction for Whitehaven that accelerates our strategy, transforms our company and delivers substantial value for our shareholders.

“This transformational acquisition will pivot our portfolio towards metallurgical coal, which has been a core pillar of our strategy for many years making this a better balanced business. Our thermal coal business remains strategically important as we continue to provide much-needed coal products to support the global energy transition and as customers seek our high-quality and high-CV products to limit their emissions.

“This is a highly attractive and materially earnings accretive acquisition, with considerable upside potential, which we expect will deliver meaningful returns to our shareholders for many years to come. It strengthens our portfolio of quality, long life assets in attractive locations providing geographic and operational diversification and scale benefits.

“We look forward to completing the transaction and welcoming the teams at Daunia and Blackwater into the Whitehaven business, and working with the local community and other stakeholders who will remain an important part of our operations.”

BUMA Australia extends relationship with BHP Mitsubishi Alliance’s Goonyella mine

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BUMA Australia has won its third contract in 2022, with the mining service provider extending its relationship with BHP Mitsubishi Alliance’s (BMA) Goonyella Riverside mine in Queensland’s Bowen Basin for up to another five years.

This award covers delivering mining services at the operation and extends the company’s existing delivery scope at the mine.

BUMA Australia is a subsidiary of Bukit Makmur Mandiri Utama (BUMA), which, itself, is a subsidiary of PT Delta Dunia Makmur Tbk. The company’s Australia presence was expanded in 2021 with the acquisition of Downer EDI Limited’s Open Cut Mining East business.

The contract extension from BMA is valued at A$400 million ($268 million) over a three-year term, with the option to extend for another two years. Production is expected to average 36 million bank cubic metres per year.

On February 22, 2022, BUMA Australia announced it had secured a new A$550 million contract extension at BMA’s Blackwater mine and, on May 10, it announced a new A$320 million, three-year contract with Bowen Coking Coal’s Broadmeadow East coking coal project, with the option to extend for a further year.

Sedgman formally awarded EPC contract for Artemis’ Blackwater gold project

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CIMIC Group’s mineral processing company, Sedgman, has been awarded an engineering, procurement and construction (EPC) contract to deliver services for Artemis Gold at the Blackwater gold project in British Columbia, Canada.

The EPC contract, which supersedes the temporary interim service agreement announced on May 2, 2022, will generate revenue for Sedgman of C$318 million ($245 million).

Sedgman will design and construct the processing and non-processing infrastructure for a 6 Mt/y carbon-in-leach gold plant at the project.

Even before this announcement, Sedgman had made good headway on the project, executing an agreement with Metso Outotec to secure supply and delivery of crushing and grinding equipment for the processing plant.

The project schedule as laid out by Artemis supporting the EPC contract with Sedgman includes the following assumptions:

  • Receipt of the BC Mines Act and related permits in the Fall of 2022;
  • Construction mobilisation and major works preparations commence in the March quarter of 2023 with process plant bulk earthworks scheduled to be completed prior to the start of major works;
  • Commissioning activities of the process facility to commence in the firts half of 2024; and
  • First gold pour expected in the September quarter of 2024.

CIMIC Group Executive Chairman, Juan Santamaria, said: “Sedgman and Artemis have already commenced initial design and procurement work at the project, helping Artemis to unlock the value of this key gold project and work towards its first gold pour in 2024.”

Sedgman Managing Director, Grant Fraser, said: “We are pleased to be working with Artemis Gold on this exciting project and look forward to continuing our strong working relationship to ensure successful outcomes for both Sedgman and Artemis.”

Work is expected to be completed in the September quarter of 2024.

Artemis has said previously that Stage 1 development at Blackwater should lead to the building of a 6-9 Mt/y operation (6 Mt/y in years 1-4 and 9 Mt/y in year 5) able to produce around 312,000 oz/y of gold.

Artemis awards Blackwater gold EPC contract to Sedgman Canada

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Artemis Gold Inc says it has made an award for the engineering, procurement, construction and commissioning (EPC) scope of works for the processing plant and associated infrastructure at its Blackwater project in British Columbia, Canada, to Sedgman Canada Limited, a CIMIC Group company.

The award amount of approximately C$312 million ($243 million) is consistent with the prescribed budget for the process plant and selected infrastructure scope of works in the 2021 feasibility study.

Sedgman Canada Limited is a wholly owned subsidiary company of Sedgman Pty Limited, a CIMIC Group company. CIMIC Group (ASX:CIM) is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of assets, infrastructure and resources projects.

The EPC contract is expected to be executed by June 30, 2022, with the contract supported by performance security including bank letters of credit, which will underwrite the financial performance and obligations of the contractor under the contract.

While the parties finalise the definitive EPC contract, in order to maintain the project schedule, an interim services agreement has been agreed which could cover procurement and pricing of long lead equipment and optimisation through refined scope changes, among other aspects.

The project schedule supporting the award to Sedgman includes the following assumptions:

  • Construction mobilisation and major works preparations commence in Fall 2022 with process plant bulk earthworks scheduled to be completed prior to the start of major works;
  • Commissioning activities of the process facility to commence in Q1 (March quarter) 2024; and
  • First gold pour expected in the first half of 2024.

The final EPC contract terms will provide for potential cost adjustments of certain components of construction representing approximately less than 15% of the total contract amount, including the potential for cost adjustments from further quantity definition, Artemis said. Standard adjustments, including currency exchange rates for certain equipment purchases also apply, and further optimisation of the processing plant with final engineering will occur.

Artemis is also considering awarding additional construction packages under an EPC agreement type structure to further enhance the risk management of the total capital expenditure for Blackwater, it said.

When combined with the EPC for the Power Transmission Line announced on August 18, 2021, the percentage of the estimated total capital expenditure for Blackwater under EPC is on track to target circa-60% of the initial Stage 1 development capital of C$645 million in a lump sum EPC type arrangement by the September quarter of 2022.

Stage 1 development should lead to the building of a 6-9 Mt/y operation (6 Mt/y in years 1-4 and 9 Mt/y in year 5) able to produce around 312,000 oz/y of gold.

Steven Dean, Chairman and CEO, said: “The award of the EPC job for the process plant at Blackwater is another significant milestone for Artemis, reflecting a competitive process involving multiple bidders. We are very pleased to be working with a world-class engineering firm in Sedgman. In partnership, we will work to finalise the design and engineering of the Blackwater project in advance of a start of major development activities. Blackwater remains on track for a start of major construction activities following receipt of Mines Act and other permits in Fall 2022 with a first gold pour in H1 2024.”

Artemis Gold locks in Blackwater EPC processing plant price with Ausenco

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After a competitive bidding process, Artemis Gold has executed a binding memorandum of understanding with Ausenco Engineering Canada Inc providing for a guaranteed maximum price (GMP) for a fixed-price engineering, procurement and construction (EPC) contract to construct a 5.5 Mt/y processing facility and associated infrastructure at the Blackwater gold project in British Columbia, Canada.

The selection of Ausenco as the successful bidder was based on a proposal to engineer and construct the facilities for a GMP of $236 million ($188 million), subject to any technical or commercial changes requested by Artemis.

The MoU outlines the terms under which Ausenco will undertake further detailed engineering, which will form the basis of a final fixed EPC price that will not exceed the GMP. This Ausenco GMP is consistent with capital estimates in the company’s 2020 prefeasibility study on Blackwater.

A fixed price EPC contract on the processing facility and associated infrastructure represents by far the largest single component of the capital cost of Blackwater at approximately 40% of the PFS estimate of C$592 million ($470 million), Artemis says.

Ausenco has already undertaken a significant amount of detailed engineering work on the plant and will be working towards a final fixed-price EPC contract for the facilities scheduled for completion in the September quarter.

Artemis is also conducting a competitive bidding process for a GMP proposal in connection with a fixed price EPC contract for the construction of the electricity transmission line and associated offsite infrastructure, with an expected GMP award in the June quarter, it said.

Steven Dean, Chairman and CEO, said: “The execution of this MoU represents a significant investment of time and effort from management and multiple GMP bidders over the past several months. The Ausenco GMP bid serves as further validation of the initial capital costs estimated in the 2020 PFS with respect to the process plant and associated facilities, further de-risking the development of the project.

“Following a rigorous adjudication process of a number of competitive proposals, we are very pleased to be working with a world-class engineering firm such as Ausenco. Ausenco was also involved in the successful development at Atlantic Gold and the award of the GMP should give investors and potential project debt lenders greater confidence in the proposed schedule and initial capital cost to develop Blackwater on time and on budget.”

The 2020 prefeasibility study on Blackwater envisaged a three-stage development starting at 5.5 Mt/y from years 1-5, shifting to 12 Mt/y in years 6-10 and rising to 20 Mt/y in years 11-23. This would see gold production go from 248,000 oz/y to 420,000 oz/y, to 316,000 oz/y, respectively.

BMA Blackwater coal mine starts up new gen Cat D11 dozer

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The first Caterpillar new generation D11 dozer in the world has started work at BHP Mitsubishi Alliance’s (BMA) Blackwater coal mine in Queensland, Australia, according to mining, resources, transport and logistics group National Group.

National Group secured the first of these dozers earlier this month from Cat dealer Hastings Deering as part of an order that would see six of these machines hauled by its National Heavy Haulage subsidiary, the company said.

While the specifics of this new dozer are not yet known, Cat did plan to launch an update to its D11 earlier this year. This would have seen the machine receive new load-sensing hydraulics and new drivetrain components among other additions.

BMA’s Blackwater coal mine, in Queensland’s Bowen Basin, produced close to 2.1 Mt of coal in the most recent September quarter, according to BHP.

In a Hastings Deering release in mid-December, National Group’s Managing Director, Mark Ackroyd, said: “The D11 is the industry’s best large dozer so it was a logical choice for us to bring in six new dozers to add to our expansive fleet.”

Along with load sensing hydraulics reducing fuel burn, the new D11 will extend out component life from fuel burn to overhaul, according to the company. Caterpillar has developed this machine to ensure faster cycle times to produce more dirt at a lower cost per tonne, National Group added.

Ackroyd said the contribution the dozers will add to production and efficiency will boost overall performance on site. “We expect to lower maintenance and repair costs by up to 5% thanks to a new case and frame design, improved bearings, redesigned pin joints, and a 30% larger oil pan.”

Jason Garea, Mining Account Manager at Hastings Deering, said: “There is a single frame now used between both the D11 standard dozer and the carry dozer applications. It’s a beefed-up frame that now does both.”

National Group has lined up all six dozers to be fitted with the new Reclamation blade, or XU Blade, which takes the dozer from a 34 cu.meter blade, to a 42.2 cu.m, according to Garea. “The best thing here is that it still handles like a U-Blade and can go into the same applications. They are far, far more productive which reduces the cost per tonne.”

The second D11 dozer is expected to be commissioned onsite at Blackwater in January.

SRG secures BMA Blackwater coal drilling contract from Downer

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Australia-listed SRG Global has has been awarded a circa-A$20 million ($14.3 million) contract for drilling works with services company Downer at the BHP Mitsubishi Alliance-owned Blackwater coal mine in central Queensland.

This award further reinforces SRG Global’s mining business as a leading provider of drilling services, according to the company. Works under the contract are expected to use an existing drilling fleet, with the work starting shortly.

Back in February, Downer announced it had been awarded a three-year contract, valued at approximately A$600 million, to provide mining and related services at Blackwater.

Meanwhile, SRG and Global Construction Services recently merged in an effort to become a global specialist engineering, construction and maintenance group.

MACA wins contract mining job at Blackwater coal project in Queensland

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MACA is about to start work on Wealth Mining’s Bluff coal project in the Bowen Basin of Queensland after being chosen as the main contract miner.

The contractor will carry out all open-pit mining activities including planning, procurement, management and supervision, load and haul, drill and blast, and water management at the project, with the agreement expected to generate some A$700 million ($507 million) in revenue over the 10-year mine life.

MACA said the project will broaden its commodity exposure and geographical footprint, while allowing it to use larger fleet classes including 350 t excavators and 220 t and 180 t dump trucks. The fleet is expected to be a mix of acquired and hired equipment with MACA estimating capital expenditure of A$45 million.

Bluff, which was acquired by current owner Wealth Mining via its takeover of Carabella Resources in February 2014, will produce around 12 Mt/y of pulverised coal injection product. Coal will be processed with existing infrastructure at the Cook colliery (pictured), which was recently acquired and recommissioned by the Bounty Mining Group and has readily available port and rail access.

The project has a granted mining lease in place together with environmental authority approval.

Contract works will start in the December quarter with first coal expected to be produced in the March quarter of 2019.

“The project will be an ‘Alliance’ style contract aimed at delivering the lowest possible cost to our client,” MACA said. Employee numbers are expected to total 140 people.

MACA will finance the drop cut to first coal and other minor project works via a secured working capital facility of A$25 million. The contract takes the company’s work in hand position to A$1.982 billion and leaves it on track to hit revenue guidance of A$620 million for the full financial year to end-June 2019.