Tag Archives: CIMIC Group

Sedgman extends working relationship with Pembroke Resources at Olive Downs

Coal technology, Mine operation news, Mining services, , , , , , ,

CIMIC Group’s minerals processing company, Sedgman, has secured an operations and maintenance contract at Pembroke Resources’ Olive Downs Complex in the Bowen Basin of Queensland, Australia.

The five-year contract is expected to generate revenue for Sedgman of A$125 million ($80.3 million).

Sedgman and CPB Contractors, also a CIMIC Group company, have been working together to deliver an end-to-end solution for the Olive Downs Complex processing plant since mid-2022. These additional works will extend the scope of work for Sedgman to include optimising operations, enhancing efficiency and elevating productivity at the facility.

CIMIC Group Executive Chairman, Juan Santamaria, said: “It is great to see Sedgman extend its relationship with Pembroke Resources, to deliver high standards in minerals processing using sustainable practices, leading technology and a focus on positive outcomes for local communities.”

Sedgman’s expertise and advanced digitisation is providing clients with innovative design, construction and operations solutions, the company says. These are dedicated to delivering excellence in minerals processing and reducing lifecycle emissions, net water usage and environmental footprint.

Sedgman Managing Director, Grant Fraser, said: “We are honoured to work with Pembroke Resources. The Sedgman team’s commitment to delivering tailored solutions aligns with our partners’ vision for operational success, efficiency and leading safety performance. It is our objective to drive increased throughput, reduced downtime, and enhanced asset integrity.”

Civmec, CPB Contractors, Primero and MACA receive work on Western Range iron ore development

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Steel and iron ore, , , , , , , , ,

Western Australian businesses have so far been awarded contracts totalling A$1 billion ($670 million) as construction progresses at the Western Range mine in the Pilbara, a joint venture between Rio Tinto (54%) and China Baowu Steel Group Co. Ltd (46%), Rio says.

In September, the two companies agreed to enter into a joint venture with respect to the Western Range iron ore project in the Pilbara, Western Australia, investing $2 billion to develop the mine. Western Range’s annual production capacity of 25 Mt of iron ore will help sustain production of the Pilbara Blend from Rio Tinto’s existing Paraburdoo mining hub. The project includes construction of a primary crusher and an 18 km conveyor system linking it to the existing Paraburdoo processing plant. Construction was expected to begin in early 2023 with first production anticipated in 2025.

The aforementioned contract awards include:

  • Civmec: awarded a contract valued at more than A$330 million for the construction of a new run of mine pad, primary crushing facility, overland conveying circuit, and modifications to the coarse ore stockpile and downstream conveying system;
  • CIMIC Group’s CPB Contractors: awarded a contract valued at approximately A$250 million to deliver the main infrastructure bulk earthworks;
  • Primero Group: awarded a contracted valued at approximately A$54 million for the design, supply, construction and commissioning of the non-process infrastructure facilities on site;
  • MACA: awarded a contract valued at approximately A$60 million to construct a camp pad and access road as well as crushing and screening work; and
  • Pilbara Aboriginal Businesses: contracts totalling A$39 million.

Western Range aligns with Rio Tinto’s local procurement strategy which aims to increase opportunities for Pilbara, West Australian and Australian businesses to be a part of the company’s supply chain. Last year, Rio Tinto increased its spend with more than 2,400 suppliers in Western Australia to A$8.6 billion. Of this spend, A$618 million was spent with Pilbara-based businesses and a record A$504 million was spent with Indigenous businesses in Western Australia. This included A$439 million spent with Traditional Owner businesses – an increase of 45% on the previous year, Rio says.

Construction at Western Range, which will help sustain production from Rio Tinto’s existing Paraburdoo mining hub, commenced in the March quarter of this year and is expected to support approximately 1,600 jobs.

China Baowu said: “We are very pleased to see the Western Range project is progressing smoothly, with huge benefits brought to business and local communities in Western Australia. Baowu is committed to becoming a world-class international company. We will promote overseas projects following ESG standards, aiming to contribute to the localisation of the project and community development.”

Rio Tinto Iron Ore Chief Executive, Simon Trott, added: “Rio Tinto spends billions of dollars with local suppliers across Western Australia and the Pilbara every year, helping support thriving communities across the state by providing local jobs for local people. The spending of A$1 billion with Western Australian businesses at Western Range marks a considerable milestone for both the project and those local businesses we are partnering with.

“The connection between Rio Tinto and China Baowu in the Pilbara extends more than 40 years and we are pleased to be further deepening our relationship through our joint commitment to study opportunities for the production of low-carbon iron in Western Australia.”

CIMIC’s CPB Contractors enters alliance partnership with Newcrest Cadia on TSF, ancillary works

Base metals, Mine operation news, Mining services, Precious metals, Sustainable mining, Water management, , , , , ,

CIMIC Group company CPB Contractors has been selected by Cadia Holdings, a wholly owned subsidiary of Newcrest Mining Limited, to deliver enabling works for the Cadia Tailings Storage Facility Recommissioning Project, in New South Wales, Australia.

The project, to be delivered in an alliance partnership with Cadia Holdings, will support the operation of the Cadia gold and copper mine, near Orange.

The scope involves enabling works associated with the existing Cadia tailings storage facilities and ancillary works including haul roads and supporting facilities. Work is scheduled to be completed in 2023.

CIMIC Group Executive Chairman, Juan Santamaria, said: “We are pleased to have the opportunity to apply our resources and expertise to Australia’s largest gold mining operation. CPB Contractors will work collaboratively with Newcrest to achieve the project’s business goals
while also ensuring the community’s expectations regarding environmental performance and outcomes are met.”

CPB Contractors Managing Director, Jason Spears, said: “With this alliance CPB Contractors will be working in close partnership with Cadia Holdings to ensure that the project is safely delivered to schedule and budget and that all operational objectives are secured. As always, we will be focused on safety and apply CPB Contractors’ extensive regional project expertise to maximise opportunities for cost-effective, efficient delivery.”

BHP collaborates with CIMIC’s UGL and QRRS on ‘flat pack’ rail cars for the Pilbara

Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , , , , , , ,

An industry-first initiative to construct 140 ‘flat pack’ iron ore cars over the next four years in Perth, Western Australia, will develop capability and boost the state’s manufacturing sector, through a collaboration between BHP, UGL, QRRS and supported by the State Government, BHP says.

In an initial trial, BHP has shipped ore car components from QRRS’s factory in China to UGL’s Bassendean facility as ‘flat packs’, where the UGL team has assembled, welded and commissioned the cars before delivering them to BHP’s Pilbara operations.

For over a decade, iron ore cars have traditionally been built offshore. On average, BHP orders several hundred each year.

To date, five iron ore cars have been completed and delivered to the Pilbara. A further 15 are due to be built and delivered by February 2023. At least 12 UGL jobs have been sustained through the project, according to BHP.

Following the trial’s early success, BHP has committed to constructing an additional 120 cars over the next four years in Western Australia.

BHP says it is continuing to build local content through manufacturing and maintenance opportunities to ensure the local ore car supply chain is sustainable and competitive.

BHP’s Asset President WA Iron Ore, Brandon Craig, said: “BHP makes a significant contribution to the WA economy, and we want to keep building and strengthening that contribution through more local manufacturing.

“We are taking the first important step by working together with the expert teams at UGL and QRRS to build ore cars right here in WA.

“Through this investment, we will support the WA manufacturing sector to strengthen its capability and create new opportunities for business growth and local employment.

“This is a terrific initiative that we’ve been able to develop with our partners and the West Australian Government, and we thank them for their support.”

Premier of Western Australia, Mark McGowan MLA, said: “This project is a testament to the work of our Iron Ore Railcar Wagons Manufacturing and Maintenance Action Group, which is committed to boosting local manufacturing and securing local jobs.”

Doug Moss, UGL Managing Director, said: “We are proud to be the only Australian manufacturer of freight locomotives and we’re pleased to extend this capability through the re-introduction of rail ore car assembly into Australia, and particularly in Western Australia.

“We look forward to continuing this program with BHP and creating a strong and sustainable ore car assembly capability in the state.”

UGL is CIMIC Group’s specialist end-to-end engineering and services provider.

Zhang Quanyong, QRRS Managing Director, said: “As a long-term supplier of BHP, QRRS will continue to support all projects that BHP is involved in. We are pleased to take this partnership further and supply more good products and service to BHP.”

Sedgman formally awarded EPC contract for Artemis’ Blackwater gold project

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , , , ,

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.

BHP continues to innovate with Port Hedland automation, dust control measures

Automation, Bulk handling, Mining equipment, Mining services, Steel and iron ore, , , , , , , , ,

BHP has completed Australia- and world-firsts at Port Hedland, in Western Australia, involving the award of a wind fences contract and testing of two new automated shiploaders at the port operations.

The automation world first is aimed at providing significant safety, production and cost benefits, BHP said, using 3D laser scan technology as part of the A$50 million ($36 million) project to fully automate eight shiploaders by 2023.

The eight shiploaders – at BHP’s Nelson Point and Finucane Island operations – are responsible for loading about 1,500 bulk ore carriers every year, exporting approximately 280 Mt of iron ore to global customers in 2021.

The project is expected to enable an increase in production of more than 1 Mt/y, through the combination of greater precision, reduced spillage, faster load times and equipment optimisation, BHP said.

An additional 12 jobs have been created through this project, located in the Integrated Remote Operations Centre in Perth. The number of Port Hedland-based roles remains unchanged, with existing staff being deployed across the shiploaders and through a range of other production-based roles.

BHP’s Asset President WA Iron Ore, Brandon Craig, said: “The shiploader automation project shows that our Pilbara teams are at the forefront of innovation, technology and operational excellence. Automating our shiploaders will improve safety for our people and allow us to load our ships more precisely and efficiently, including through automatic adjustments for weather, hazards and other variable port conditions.”

The shiploaders will transition towards becoming fully automated later this year. Once completed, the ship loading operations will be operated from the Integrated Remote Operations Centre in Perth.

Australia’s first wind fences, meanwhile, are designed to reduce dust emissions as part of BHP’s A$300 million air quality commitment. They will be built in Port Hedland by CIMIC Group’s CPB Contractors.

Announcing the successful tender in Port Hedland, BHP and CPB Contractors said three fences would be built at BHP’s Nelson Point and Finucane Island operations. Construction of the wind fences is expected to start in August 2022 and take 14 months to complete.

Up to 150 employees will be involved in the construction of the project, with up to 10% Indigenous employment.

Designed for the Pilbara’s unique weather conditions, and rated specifically to withstand cyclones, the fences will include mesh panels designed to reduce wind speeds, shielding BHP’s stockpiles and reducing the potential for dust lift-off, it said.

The fences will abate dust emissions in current operations and ensure no net increases in dust emissions should operations expand over time.

BHP Port General Manager, Cindy Dunham, said: “The wind fences will be constructed using global best practice dust management and air quality control technology.

“The investment forms part of our Pilbara Air Quality Program and demonstrates our commitment to the region and contribution to the revitalisation of the West End.”

CPB Contractors General Manager WA, SA & NT, Andrew Giammo, said: “Construction of the wind fences will involve the fabrication of 3,000 t of structural steel – this work will be undertaken here in WA and will be a major boost to local industry.”

The wind fences, which will be fabricated and built in Western Australia, are designed to control dust from BHP’s port operations and will be the first of their kind in Australia.

The 30-m-high fences, which span a length of 2 km, will include mesh panels designed to reduce wind speeds, shielding the stockyard and reducing the potential for dust lift-off. As the wind speed reaches a certain limit, the mesh curtain opens, to let the air flow through the fence.

Artemis awards Blackwater gold EPC contract to Sedgman Canada

Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , ,

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.”

CPB Contractors to help BHP debottleneck Nelson Point at Port Hedland

Mineral project development, Mining services, Steel and iron ore, , , , , ,

CIMIC Group says its CPB Contractors business has been selected by BHP to deliver the structural, mechanical, piping, electrical and instrumentation package for the port debottlenecking project at Nelson Point, Port Hedland in the Pilbara region of Western Australia.

The contract will generate revenue of approximately A$100 million ($72 million) to CPB Contractors.

CIMIC Group Executive Chairman and Chief Executive Officer, Juan Santamaria, said: “We’re pleased to be supporting BHP with this project. Our mining and resources experience and history in the Pilbara means we can collaborate on the project’s high standards of safety and quality.”

CPB Contractors Managing Director, Jason Spears, added: “This project builds on CPB Contractors’ substantial experience in delivering resources infrastructure. We are pleased to continue our long-term partnership with BHP, to deliver another important resources project in the Pilbara.”

The project involves delivering both greenfield and brownfield works, with work commencing this year and expected to be completed in 2023.

Last year, Civmec also received a contract linked to the port debottlenecking project, which, in Stage 1, includes a new stockyard planned for the South Yard at Nelson Point.

Thiess in line for contract extension at Mach Energy’s Mount Pleasant

Coal technology, Mine operation news, Mining equipment, Mining services, , , , , ,

Thiess has been selected as the preferred mining services contractor for the Mount Pleasant thermal coal operation in New South Wales, Australia.

MACH Energy has notified Thiess of its intention to enter into exclusive negotiations to finalise the terms with the view to execute a mining services contract, it said.

Under the contract, Thiess will continue to provide full scope mining services including drill and blast, load and haul, mining and run of mine rehandling services, equipment maintenance and progressive rehabilitation.

Subject to contract finalisation, from April 2022, revenue to Thiess is expected to be around A$925 million ($690 million) over four-and-a-half years.

“Thiess began operating at Mount Pleasant in 2017 as a greenfield mine, applying industry best practice mining development and operations with uncompromising environmental and safety standards,” the company said. “This includes delivering the operation’s first rehabilitation two months before first coal was mined, demonstrating a true commitment to sustainable practices and to the community more broadly.”

Subject to execution, Thiess will continue to draw on local businesses for the provision of goods and services to support the mine and is committed to attracting and retaining a diverse, local workforce.

Aspire signs up Sedgman for Ovoot coking coal project FEED study

Coal technology, Mineral project development, Mining services, Steel and iron ore, , , , , , , , ,

Aspire Mining Ltd has contracted Sedgman Pty Limited to prepare a Front End Engineering and Design (FEED) study on coal handling and preparation plant (CHPP) infrastructure to support commencement of operations at the Ovoot coking coal project (OCCP) in Mongolia.

Sedgman, a wholly owned subsidiary of CIMIC, is a leading provider of integrated minerals processing solutions with experience delivering processing solutions. It has provided technical input and various studies supporting the economics of the OCCP from discovery of the deposit in 2010.

The FEED study will be conducted in a phased approach, over a period of approximately five months. Stage 1 will comprise trade-off analyses to identify the most appropriate concepts and technologies, which will take approximately eight weeks. Stage 2 will then focus on the agreed path and will produce accurate estimates of capital and operating costs, and designs to enable tendering for construction. The work will be completed under a schedule of rates arrangement, with total cost of A$600,000 ($464,583) estimated, Aspire said.

The intended CHPP infrastructure to be investigated will be based on existing modular designs and will enable low impact processing of approximately 1.5 Mt/y of run-of-mine coal, with capability for later expansion, Aspire said. Important criteria for the design include low energy and water consumption, and stringent dust control.

Sedgman Managing Director, Grant Fraser, said: “Sedgman appreciated the opportunity to work with Aspire and is focused on delivering value through progressing an innovative solution for the project.

“This study is a great opportunity to work with one of our longstanding clients to support the future development of the OCCP.”