Tag Archives: Civmec

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.”

Civmec to replace car dumper at BHPs Nelson Point, carry out new work for Roy Hill

Equipment maintenance, Mining services, Steel and iron ore, , , , , , ,

Civmec Limited says it has recently secured circa-A$120 million ($86 million) of new contracts across multiple operating sectors, including three new agreements with BHP and Roy Hill.

Among these new assignments is a Car Dumper Replacement project for BHP, which has instructed Civmec to replace Car Dumper 3 (CD3) at the Nelson Point facility in Port Hedland, Western Australia, was commissioned in 1998. The new CD3 has a design life of 30 years and is intended to fit in the existing concrete vault with minimal structural modifications, Civmec said.

Procurement activities for this project have commenced, with fabrication commencing in the first quarter of its 2023 financial year (September quarter) and completion of fabrication in Q4 FY2023 (June quarter of 2023). At peak, this contract will employ approximately 85 people, Civmec said.

Roy Hill, meanwhile, has instructed Civmec to perform two contracts.

The first one is a capital upgrades project where it has been awarded the SMP&E (Structural Mechanical Piping and Electrical) works for the ROM4 Crusher 5 project at Roy Hill’s mine in the Pilbara of Western Australia. This is a follow on from the current SMP&E contract for the WHIMS project for Roy Hill, which is nearing completion and will see the same project management team transitioning to the ROM4 project.

The scope includes SMP&E plus communications works for the Crushing Station 5 and transfer conveyor, including installation of client-supplied modules and equipment. Mobilisation will commence in the June quarter of this year with completion by the end of the year.

Civmec has also received an extension of its Shutdown and Maintenance Support Services Agreement with Roy Hill, being granted an additional five years through to March 2027.

“This contract extension demonstrates a significant commitment from Roy Hill and will enable Civmec to support the Roy Hill Operation with multi-disciplined shutdown and maintenance services for the fixed plant assets across the port (facility) and PSA (mine),” Civmec said.

“As one of Civmec’s long term customers, Roy Hill is an important stakeholder for our maintenance business. Our investment in the local community and our commitment to building our Port Hedland Workshop facility is evidence of our pledge to being a long-term partner to Roy Hill and our intent is to further strengthen this relationship.”

Civmec to construct Mount Holland lithium concentrate refinery

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Civmec Ltd has been issued with a notice of award for a major construction contract in the resources sector at the Covalent Lithium Pty Ltd joint venture in Western Australia, as well as several infrastructure and maintenance projects, raising its order book to more than A$1.15 billion ($823 million).

The major construction contract is for the Mount Holland lithium project in Western Australia being undertaken by subsidiaries of Wesfarmers and Sociedad Química y Minera de Chile SA through the 50:50 joint venture manager Covalent Lithium Pty Ltd.

The Mount Holland mine site will produce lithium concentrate, which will be transported to a refinery that Civmec has been tasked to construct. The refinery, to be located at Kwinana in Western Australia and within 10 km of Civmec’s flagship heavy engineering facilities in Henderson, will convert the lithium concentrate into high-purity lithium hydroxide monohydrate. Covalent says the refinery operations are expected to have an 85% recovery of the lithium contained in the spodumene concentrate, with the capacity to produce around 45,000 t/y of battery-quality lithium hydroxide.

The scope of work being undertaken by Civmec covers most disciplines performed by Civmec including structural and piping fabrication, SMP erection, refractory lining, insulation and E&I installation works.

Civmec expects to commence work on this project in 2022, with completion expected in 2024.

On top of this, the company says it has also continued to make traction in our efforts to secure more market share in the maintenance area on both the East and West coast of Australia with a new contract award for maintenance services for Glencore’s Murrin Murrin operations. It is also getting more work for maintenance and shutdowns from long-term client Roy Hill, and has recently completed work for a nickel producer in the Goldfields region of Western Australia.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “Demand for heavy engineering and construction services in the private and public sectors in Australia remains strong and these new contracts underscore, yet again, our strength as a top-tier contractor. Our efforts to generate more recurring income are also paying off as we are getting more work involving maintenance and capital works from both existing and new clients.”

Civmec banks new work from BHP, Roy Hill and Rio Tinto

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Civmec Ltd says it has received three notices of award from several repeat mining customers for maintenance and capital works projects collectively worth approximately A$130 million ($97 million).

These orders – from BHP, Roy Hill and Rio Tinto – bring its total order book to about A$1.05 billion as at September 30, 2021.

For BHP, Civmec is to carry out a civil and earthworks job as part of the miner’s Port De-bottlenecking Project Stage 1, which includes a new stockyard planned for the South Yard at Nelson Point, in Port Hedland, Western Australia.

The scope of work includes dewatering, piling, ground improvement, associated earthworks, concrete foundations, new roads, high voltage poles and underground power works.

Civmec says mobilisation will commence this quarter, with completion expected in the March quarter of 2022.

With Roy Hill, Civmec is due to carry out a greenfield construction package related to an extension of the existing Wet High Intensity Magnetic Separation (WHIMS) plant at Roy Hill’s mine site north of Newman, in Western Australia’s Pilbara region.

The scope of work includes greenfield installation and pre-commissioning of pre-assembled modules, piping, electrical and tie-in works. Mobilisation will commence immediately and completion is scheduled for the March quarter of 2022.

At Rio Tinto’s Boyne Island Smelters operation, Civmec is to supply refractory trades and other associated disciplines for maintenance, rebuild and reduction cell reconstruction works on carbon bake furnaces. The contract term is for three years with two one-year extension options.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are delighted to secure these project wins with three of our long-term Tier 1 customers. The projects combine multi-year maintenance works along with two projects within our newly formed Maintenance and Capital Works – Resources and Energy area. With the BHP PDP1 project located in the Port Hedland region, it provides an ideal opportunity for Civmec’s newly opened regional branch to support the project, validating Civmec’s recently announced plans to invest in a purpose-built facility in Port Hedland.”

Civmec extends Pilbara stay with more iron ore agreements

Equipment maintenance, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , ,

Civmec Ltd has won multiple new contracts for its maintenance, manufacturing and construction divisions with a combined value of over A$100 million ($77 million).

Among these awards is a three-year contract for the maintenance division with Alcoa of Australia Ltd to provide calciner maintenance, major overhaul and repair services, including scaffolding, mechanical, refractory and electrical services at its Kwinana, Pinjarra, and Wagerup refineries. These plants contain 17 calciner units, two liquor burners and five regenerative thermal oxidisers.

The manufacturing division is celebrating minerals and metals sectors contracts in the Pilbara of Western Australia.

Among these is an agreement for Civmec to supply, manufacture, trial assemble and deliver four main train load-out bin modules for the BHP-owned Jimblebar iron project. The company will also supply, fabricate, surface treat and modularise shuttle trusses, conveyor trusses, platework and stick steel for the Rio Tinto-owned Gudai-Darri iron ore project, also in the Pilbara.

Still in the Australia iron ore hub, Civmec’s construction division is set to complete a civil package, including detailed earthworks, concrete placement, cabling and pipework for a Roy Hill de-bottlenecking project, as well as the delivery of a fixed plant workshop for Rio Tinto’s Mesa A project, where the group is already undertaking other structural, mechanical, piping, electrical and instrumentation work.

Civmec captures another contract at BMA’s Hay Point coal terminal

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Civmec Ltd has been awarded a contract to manufacture wharf girders and associated structures for the development of port infrastructure at the Hay Point loading port, owned by BHP Mitsubishi Alliance (BMA), in central Queensland, Australia.

The BMA agreement will see Civmec make over 13,500 t of these girders and associated structures, with procurement and shop detailing activities commencing immediately and fabrication starting in the June quarter.

Loadout onto Heavy Lift Vessels is scheduled to start in early 2022, with the last vessel planned for load out in the June quarter of 2022. The project will employ over 350 people during fabrication and assembly at the company’s Henderson facility, in Western Australia.

BMA has already engaged Civmec to fabricate, modularise and commission the 1,800 t SL2A ship loader using pre-contract capital ahead of a large infrastructure replacement project at Hay Point.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “The award for the Hay Point port infrastructure work is the second significant package of works that we have been trusted to deliver for this port upgrade. We look forward to delivering a high-quality product to McConnell Dowell to allow them to have a seamless installation at the site location and welcome the opportunity to work alongside all stakeholders on this project.”

These works are part of the Shiploader 2 and Berth 2 Replacement (SABR) project at Hay Point, which McConnell Dowell is heading up. The SABR project scope encompasses replacement of one of the three berths and shiploaders at the terminal.

Civmec tops up Iron Bridge work with new on-site contract

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Civmec Ltd has confirmed approximately A$140 million ($105 million) in new contracts, with one of these a new agreement to deliver on-site structural, mechanical, piping and electrical works for the Iron Bridge magnetite project, in Western Australia.

The Iron Bridge contract will be delivered through the Minerals and Metals Division, while the other heavy engineering manufacturing projects will be delivered from Civmec’s expanded fabrication facilities.

It includes the installation of the crushing circuit, primary grinding, dry separation, air classification and dry tailings units for the dry plant at the project. Mobilisation will commence in early 2021 and, at peak, the project will employ around 400 people on site.

Iron Bridge is a joint venture between Fortescue Metals Group’s subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd (IBJV).

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are delighted to extend our relationship with IBJV with further work awarded on the Iron Bridge magnetite project. We are currently delivering site civil concrete works and have commenced work for the supply of 4,700 t of steel structures and modules for the same project, so this latest award is a very rewarding outcome and aligns well with our multi-discipline capability business model.”

Back in July, Civmec said the Metals and Minerals division had been awarded a standalone civil contract to build the structural concrete components for the dry plant at the IBJV.

Civmec mobilises personnel for Rio Tinto Mesa A contract work

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Civmec Ltd has added another work package on a major iron ore development to its books, with Rio Tinto awarding it a contract to help further develop its Mesa A operational hub in the Robe Valley of Western Australia.

The package comprises the supply, fabrication, modularisation, transportation to site, erection, modification, installation, and commissioning of structural, mechanical, piping, electrical and instrumentation, and communication work for the Mesa A Wet Plant, it says. Components include screening, surge bin and scrubbing facilities and associated conveyor systems, transfer towers, sub stations and all piping and cabling, including trenching for underground services.

Rio Tinto’s Robe Valley Sustaining iron ore project, in the Pilbara region, includes the development of three new mining deposits and the construction of supporting infrastructure required to continue operations of the two existing operational hubs at Mesa A and Mesa J. The project is part of the company’s plans to sustain production capacity at its Robe River joint venture.

Civmec’s contract award follows similar agreements with Fortescue Metals Group on the Eliwana project and a contract to fabricate and modularise key components for BHP’s South Flank project, both of which are also in the Pilbara.

Civmec Chief Executive Officer, Patrick Tallon, said: “Rio Tinto has always been a good client for us and we have a long history of supporting the safe, high quality and timely delivery of their projects in Western Australia and Queensland, across construction, manufacturing and maintenance.”

Fabrication, to be undertaken at the group’s Henderson facility, will employ around 200 people and will commence in the coming weeks, Civmec said. The on-site structural, mechanical and piping component will require some 240 people to mobilise to site at the peak of the project in the latter part of this year, while the electrical discipline will require some 100 people in early 2021.

Civmec’s relationship with Rio Tinto is not limited to new development projects, the company says. It extends across other Rio Tinto sites, with the group’s maintenance division continually supplying services to its operations.

The award of this significant construction project, combined with recent work orders for the maintenance division from Rio Tinto, have a combined value of circa-A$165 million ($106 million), with the group’s order book now standing at around A$895 million, Civmec said.

Civmec to help modularise BHP’s South Flank iron ore mine

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Civmec says it has signed a contract with BHP that will see the ASX-listed engineering company fabricate and modularise key components for the under-construction South Flank iron ore project, in the Pilbara of Western Australia.

The award of the South Flank module fabrication and assembly package #3 covers the supply and assembly of 23 fully-equipped ‘smart modules’, including the supply and installation of the required mechanical and electrical equipment up to no-load commissioning for each module, Civmec said. The scope comprises conveyor shuttle modules, sample station, pump skids, train loadout and feeder modules, all of which will be fabricated and assembled at Civmec’s facility in Henderson, Western Australia, before being transported to site for installation.

Work will commence immediately, with completion anticipated by mid-2020, according to Civmec.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are extremely pleased to be given this opportunity to further support BHP in the delivery of what will ultimately become its flagship mine. The award of this scope of work complements the packages already in production for thyssenkrupp, in the supply, manufacture, trial assembly, surface treatment and pre-assembly of stackers, bogies and equalisers for the rail mounted machines for the South Flank project.”

When fully operational, South Flank will be one of the world’s largest iron ore operations integrating the latest advances in autonomous-ready fleets, digital connectivity and modular design, Civmec said.

BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output. This will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.

The combined value of these packages for South Flank is around A$48 million ($34 million).

Civmec starts fabrication work for Albemarle’s WA lithium hydroxide plant

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ASX-listed Civmec has announced the award of a contract from Albemarle for the delivery of a new lithium hydroxide plant to be built in Western Australia.

Albemarle’s new hydroxide production plant will be in the Kemerton Strategic Industrial Area, around 160 km south of Perth, near the port town of Bunbury. It will initially comprise of three production trains, each producing 20,000 t/y of hydroxide, with a potential further expansion to five trains and ultimate site production of 100,000 t/y by around 2025. Albemarle began earthworks earlier this year.

Civmec’s scope of work includes structural, mechanical and piping for the hydromet and final product, reagents and utilities for Trains 1, 2 and 3.

The company’s Henderson facility will be used to fabricate and pre-assemble selected components for the on-site plant erection, with fabrication commencing immediately. Site works, meanwhile, are expected from mid-2019 to March 2021.

At the peak of construction, there is expected to be some 300 personnel involved in the delivery of the current defined scope, providing significant opportunity for skilled people residing in the region, Civmec said.

Civmec’s CEO, Patrick Tallon, said: “We are delighted to have been selected by Albemarle as a significant construction partner for this exciting project. This two-year project is ideally suited to our operations, fabricating, modularising and site erecting steel work for this key Western Australian development.

“This project reflects the growing confidence in the Western Australia resource industry, highlighting a bright future for the coming years.”

The contract award takes the Civmec’s current order book to approximately A$758.5 million ($543 million), it said.