Tag Archives: Capricorn Metals

Alltype Engineering gassed up in Western Australia

WestStar Industrial’s engineering construction contracting business, Alltype Engineering, has been awarded contracts to a total value of circa-A$8 million ($6 million) across multiple clients and projects, including A$5 million of contracts in gas transmission.

APA Group has contracted Alltype to deliver multiple gas offtake and metering facility projects throughout the Midwest region of Western Australia. These turnkey multidiscipline projects involve civil, structural, mechanical, piping, electrical and instrumentation scopes, both workshop and site, with remote area working conditions and logistics and eight off-workshop fabricated gas skids to be completed off site.

Included in the projects are a gas lateral offtake and metering station for the Beyondie sulphate of potash project (pictured), a gas lateral offtake and metering project for the Lakeway SO4 potash project, and gas lateral offtake and metering work for Capricorn Metals’ Karlawinda gold project.

WestStar is also scheduled to build a gas lateral metering station for Primero Group at the Kalium Lakes potash project.

WestStar said: “These newly awarded contracts for Alltype continue to demonstrate its strength and reliability in working successfully with APA and the Australian gas industry, including both upstream and downstream projects.

“Furthermore, having fabricated, assembled and FAT tested over 20 modularised gas skid process packages in the last two years, Alltype continue to leverage off this experience and knowhow to fast track aggressive timeline projects with full supply chain control.”

Alltype has commenced the works for APA Group, which are planned to be completed by the March quarter of 2021.

In addition to this work, Alltype says it was awarded its first contract from Newmont at the Boddington gold mine, also in Western Australia. This contract had an aggressive timeline for completion of urgent fabricated plate and piping componentry for a shutdown, which was achieved. The balance of works is in the process of being completed, it noted.

Still in Western Australia, Alltype says it continues to provide goods and services for the three major iron ore developments in the Pilbara, being BHP South Flank, Rio Tinto Gudai-Darri and FMG’s majority-owned Iron Bridge project.

Capricorn Metals secures gas power for Karlawinda gold project

Capricorn Metals says it has entered into agreements with APA Group for the transportation of gas from the Goldfields Gas Pipeline (GGP) to the Karlawinda gold project, in Western Australia.

As part of the agreement, APA will also build, own and operate the lateral pipeline that links the GGP to Karlawinda. It is expected that some 3 Tj/d of gas will be transported through the pipeline for power generation at Karlawinda.

Capricorn has also recently executed a power supply agreement with Pacific Energy subsidiary Contract Power Australia where, under the terms of the agreement, Contract Power will build, own and operate a 16 MW gas-fuelled power station with 2 MW of diesel back-up at Karlawinda.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 105,000-120,000 oz of gold. The company plans to mine a single large, low strip ratio open pit and use a 3.5-4.0 Mt/y carbon-in-leach processing plant.

Development of the project is underway, with commissioning expected in the March quarter of 2021.

Capricorn Executive Chairman, Mark Clark, said: “We look forward to a successful long-term partnership with these high-quality companies to meet our energy requirements. The completion of these contracts, combined with the current low price of gas in Western Australia, present Capricorn with a very attractive cost of power generation for the operation of the Karlawinda project.”

SMS Mining Services receives A$640 million of new gold project contracts

Western Australia-based contractor SMS Mining Services has been named as the preferred mining contractor for both Capricorn Metals’ Karlawinda gold project near Newman and Adaman Resources’ Kirkalocka gold project near Mt Magnet.

The two contracts are worth A$640 million combined – A$420 million ($301 million) for Karlawinda and A$220 million for Kirkalocka – and push SMS’ contract book past the A$1 billion mark, according to SMS Managing Director Danny Sweeney.

Sweeney added that the company also has contracts in the pipeline extending out to 2027, and a remaining tender pipeline of over A$1.2 billion.

The Karlawinda gold contract is for a duration of eight years and 10 months, representing the entire life of mine. It will consist of open-pit mining services including load and haul, drill and blast, and mine development.

SMS will mobilise new and existing equipment, and deploy significant technology and operational initiatives, the company said.

“We are excited to be part of Capricorn Metals story. We look forward to forging a successful long-term partnership and supporting the company in bringing the Karlawinda gold project into production in 2019,” Sweeney said.

Formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming months. Contract works are due to start in the June quarter of 2019.

A feasibility study on development of the Bibra deposit at Karlawinda was completed in October 2017. This envisaged a a single large open-pit deposit feeding a 3 Mt/y CIL processing plant, producing approximately 100,000 oz/y of gold at an average all-in sustaining cost of A$1,025/oz over the initial mine life.

Meanwhile, the company has also secured preferred contractor status for Adaman’s Kirkalocka project, 70 km south of Mount Magnet. SMS owns a 33% stake in privately-owned Adaman Resources as part of its equity strategy of supporting small and mid-tier miners to enter production.

The four-year contract with an option to extend will consist of open-pit mining services including load and haul, drill and blast, and mine development. Drilling is currently is underway to extend the mine life beyond the current six years.

Again, formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming weeks. Contract works are due to start in late 2018.