Tag Archives: CIMIC Group

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.”

Sedgman books tailings dewatering work at QCoal’s Byerwen coal mine

Coal technology, Mine operation news, Mining services, Steel and iron ore, Water management, , , , , , , , ,

CIMIC Group’s minerals processing company, Sedgman, has been awarded a contract to design and construct a tailings dewatering facility at QCoal’s Byerwen coal mine in central Queensland, Australia.

The project will result in a lower operational risk profile, less power usage, and improved water recovery and management of dewatering chemicals, Sedgman says.

Sedgman Managing Director, Grant Fraser, said: “We are pleased to continue working with QCoal with a key focus on reducing impacts and undertaking environmentally responsible practices. The tailings dewatering contract at Byerwen is a great opportunity to achieve joint goals in ESG, an important focus for the industry.”

Construction work for the Byerwen mine will commence this month and the project will conclude in mid-2022.

Back in October, Sedgman was awarded two contract extensions by QCoal to continue to operate and maintain its Sonoma and Byerwen mines processing plants in Queensland.

Thiess equity transaction on target for end of 2020, CIMIC Group says

Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

CIMIC Group says it has signed all relevant material documentation including financing agreements for the sale of 50% of Thiess, one of the world’s largest mining services providers, to funds advised by Elliott Advisors (UK) Ltd.

This encompasses the satisfaction of a number of conditions precedent, including the required regulatory approvals, CIMIC noted.

Back in October, CIMIC announced the deal with Elliott, one of the oldest fund managers of its kind under continuous operation, saying the transaction would strengthen CIMIC’s balance sheet by generating cash proceeds on completion of A$1.7-A$1.9 billion as well as reducing CIMIC’s factoring balance by around A$700 million and CIMIC’s lease liability balance by some A$500 million.

Thiess delivers open pit and underground mining in Australia, Asia, Africa and the Americas, providing services to 25 projects across a range of commodities, CIMIC says. It has a diverse fleet of plant and equipment of more than 2,200 assets, a team of around 14,000 employees and generates annual revenues in excess of A$4.1 billion.

CIMIC noted that transaction completion, including receipt of cash proceeds, is expected to occur prior to the end of 2020.

As previously advised, the price for 50% of the equity interest in Thiess implies an enterprise valuation of approximately A$4.3 billion ($3.3 billion).

Sedgman to operate Mount Pleasant CHP facility for another three years

Coal technology, Mineral processing, Mining services, , , , , , ,

CIMIC Group’s minerals processing company, Sedgman, has been awarded an extended operations and maintenance services contract at the MACH Energy-owned Mount Pleasant coal mine in New South Wales, Australia.

Sedgman will operate and maintain MACH Energy’s 1,500 t/h Mount Pleasant Coal Handling and Preparation facility for an additional three years, with the extension generating revenue of A$120 million ($91 million) to Sedgman, bringing total revenue from the contract to A$200 million.

CIMIC Group Executive Chairman and Chief Executive Officer, Juan Santamaria, said: “Sedgman and the CIMIC Group have a strong history with MACH Energy which we’re pleased to continue. Sedgman’s leadership in minerals processing will ensure maximum resource recovery for our long-term client.”

Sedgman Managing Director, Grant Fraser, said: “This contract is testament to the partnership we have forged with MACH Energy, and the integration of our engineering and operations capability.”

Sedgman completed the construction of this facility and has been operating the plant since 2019.

Elliott funds take 50% stake in CIMIC’s Thiess

Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, , , , ,

CIMIC Group says it has entered into an agreement with funds advised by Elliott Advisors (UK) Ltd regarding the acquisition by Elliott of a 50% equity interest in Thiess, a leading mining services provider.

Elliott is one of the oldest fund managers of its kind under continuous operation and manages more than $40 billion in assets, including equity positions in private and listed companies, in Australia and globally, CIMIC says.

Thiess, meanwhile, delivers open pit and underground mining in Australia, Asia, Africa and the Americas, providing services to 25 projects across a range of commodities. It has a diverse fleet of plant and equipment of more than 2,200 assets, a team of around 14,000 employees and generates annual revenues in excess of A$4.1 billion ($2.9 billion). Thiess is included in CIMIC’s Mining and Mineral Processing segment with CIMIC company Sedgman, a leading provider of minerals processing and associated infrastructure solutions to the global resources industry.

Following closing of the deal, CIMIC and Elliott will jointly control Thiess in accordance with a Shareholders’ Agreement, which contains governance arrangements as well as Thiess’ financial and dividend policies, among other items.

The price for Elliott’s 50% equity interest in Thiess implies an enterprise valuation of approximately A$4.3 billion (based on 100% of Thiess), subject to certain adjustments. The transaction will strengthen CIMIC’s balance sheet by generating cash proceeds on completion of A$1.7-A$1.9 billion as well as reducing CIMIC’s factoring balance by around A$700 million and CIMIC’s lease liability balance by some A$500 million, it said.

CIMIC Group Executive Chairman, Marcelino Fernández Verdes, said: “The sale agreement reflects Thiess’ ongoing strategic importance as a core activity for CIMIC. It capitalises on the robust outlook for the mining sector and, together with Elliott, we will pursue market opportunities in line with Thiess’ growth and diversification strategy.”

Back in July, CIMIC Group announced that it had signed an exclusivity agreement and was in advanced negotiations with funds advised by Elliott regarding the potential investment by Elliott into 50% of the share capital of Thiess.

Thiess to continue operations at BMA Caval Ridge coal mine

Coal technology, Equipment maintenance, Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , , , , , , ,

CIMIC Group’s global mining services provider, Thiess, has been awarded a contract extension by BHP Mitsubishi Alliance (BMA) to provide mining services at the Caval Ridge coal mine in Queensland, Australia.

The 12-month contract extension will generate revenue of A$110 million ($79 million) to Thiess, CIMIC said.

Under the contract variation, Thiess will continue to operate and maintain three 600 t excavator fleets to move additional overburden for the Caval Ridge operation, an open-pit coal mine with a 10 Mt/y throughput capacity.

Back in 2018, Thiess and BMA signed a contract variation that saw the contract miner move additional overburden through 2020 as per the terms of the contract.

CIMIC Group Chief Executive Officer, Juan Santamaria, said: “This contract extension builds on our relationship with BMA and reinforces our commitment to work with our clients to safely position their operations for optimal efficiency, productivity and cost performance.”

CIMIC Group Executive Mining and Mineral Processing and Thiess Managing Director, Douglas Thompson, said: “We’re proud to continue our work at Caval Ridge where we have a proven track record of delivering innovative and low-cost mining solutions. It is a testament to the team’s continued focus on delivering a safe and productive operation for our client.”

The contract extension will commence in December 2020.

Last week, CIMIC confirmed that it was close to bringing in a new equity investor for its Thiess contract mining business.

CIMIC Group closes in on new equity partner for Thiess mining business

Mining finance, Mining mergers and acquisitions, Mining services, , ,

CIMIC Group is close to bringing in a new equity investor for its Thiess contract mining business, with Executive Chairman, Marcelino Fernández Verdes, saying in its latest financial results that due diligence had been completed and negotiations were expected to be finalised “in the coming days”.

Back in July, CIMIC Group announced it had signed an exclusivity agreement and was in advanced negotiations with funds advised by Elliott Advisors (UK) Ltd regarding the potential investment by Elliott into 50% of the share capital of Thiess. This would provide joint control of Thiess to CIMIC and Elliott.

Verdes said in today’s results that the introduction of an equity partner into Thiess “capitalises on the outlook for mining, provides capital for Thiess’ continued growth and enables CIMIC to strengthen its balance sheet”.

Within the September quarter, Thiess secured a A$340 million ($240 million) extension from Glencore to provide mining services at the Mount Owen coal operation in the Hunter Valley of New South Wales, Australia.

CIMIC Group said today that its companies are also bidding on work associated with the Winu copper-gold project in Western Australia, which Rio Tinto revealed a maiden inferred resource for in July; along with a mining extension at MACH Energy’s majority-owned Mount Pleasant coal operation in the Hunter Valley of New South Wales.

Thiess extends stay at Glencore’s Mount Owen coal mine

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

CIMIC Group’s Thiess has been awarded a contract extension by Glencore to provide mining services at the Mount Owen coal operation in the Hunter Valley of New South Wales, Australia.

The 18-month contract extension, to commence in July 2021, will generate revenue of A$340 million ($240 million) to Thiess.

Thiess will continue to provide mine planning, design and execution, drill and blast, overburden removal and coal mining services at the mine, it said.

The global mining services provider has operated at Mount Owen since 1994, applying, it says, industry best practice mining operations, with uncompromising environmental and safety standards. It is Thiess’ largest coal mining operation in New South Wales, processing up to 15 Mt/y of run of mine, of which 7.8 Mt/y is mined by Thiess from the Mount Owen North Pit.

Thiess Managing Director, Douglas Thompson, said: “For more than 25 years we have delivered industry-leading, specialised mining techniques at Mount Owen, leading to higher resource recovery, increased plant efficiency and reliable material movement for our client.

“Our team looks forward to continuing our long association with Glencore and the Hunter Valley community.”

Thiess says it has a strong presence in the Hunter Valley where it provides mining services at three mines. It works to deliver social benefits through local employment and training, local procurement, community engagement and Indigenous affairs.

Thiess to carry out load and haul services at Mantos Blancos copper mine

Base metals, Equipment maintenance, Mine operation news, Mining equipment, Mining services, , , , , , ,

CIMIC’s global mining services provider, Thiess, is to undertake load and haul services for Mantos Copper SA at the Mantos Blancos copper mine, in northern Chile, following a mining services contract award.

The contract will see the company carry out not only load and haul services, but also fleet maintenance. The contractor will move low-grade copper ore at the operation, which produces around 50,000 t/y of fine copper.

Thiess Managing Director, Douglas Thompson, said this latest contract demonstrates the company’s ability to apply global insight and experience into “furthering local value and deliver productivity and efficiencies for our clients”.

He added: “Mantos Copper SA is an important contributor to the mining industry in the Antofagasta region and we are proud to be of service.”

Thiess’ Executive General Manager Americas, Darrell White, said: “For the past five years we have delivered safe and efficient operations in Chile in line with our vision to be the world’s leading mining services provider. We value collaboration and engagement and look forward to growing our relationship with Mantos Copper SA.”

CPB Contractors to help deliver wet processing plant at Iron Bridge project

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

CPB Contractors has been awarded a contract at the Iron Bridge magnetite joint venture project in the Pilbara of Western Australia.

The contract from Fortescue Metals Group subsidiary FMG Iron Bridge, and Formosa Steel IB Pty Ltd, the joint venture partners at Iron Bridge, will see the CIMIC Group subsidiary deliver concrete and detailed earthworks for a wet processing plant.

Work will commence this year and is scheduled for completion in 2021, CPB Contractors said.

The Iron Bridge project is expected to see a new magnetite mine developed to support production of 22 Mt/y of high grade concentrate, according to FMG.

The contract was announced in tandem with another award in the water sector, with both set to provide around A$128 million ($92 million) of revenue in total.

CPB Contractors Managing Director, Diego Zumaquero, said: “The award of these contracts is recognition of our people’s expertise in delivering essential and strategic infrastructure projects. Our commitment is to safely and efficiently deliver these projects while maximising the benefits to local communities.”