Tag Archives: Coburn

Strandline seals energy agreement for Coburn with Contract Power Australia

Strandline Resources has executed a 15-year electricity supply agreement (ESA) with Contract Power Australia, a wholly owned subsidiary of Pacific Energy Ltd, to build, own, operate and maintain (BOOM) the power generation and LNG storage and regasification facilities for the Coburn mineral sands project in Western Australia.

Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas-fuelled generation with state-of-the-art solar and battery storage technology.

The executed ESA, which follows Contract Power Australia being appointed preferred contractor at Coburn, enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020. This study anticipated a development capital for the project of A$260 million ($199 million), excluding financing costs.

Contract Power specialises in turnkey design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia, Strandline said.

Coburn’s power station will be located near the mineral separation plant. The power station is designed to be suitable for a maximum demand capacity of 15 MW and average consumed power of circa-10 MW. Natural gas will be supplied by others under an industry standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power. The LNG then feeds a set of engine generators on an N+1 basis and has circa-30% solar (renewable) penetration for the major stable loads. Generation is at 11 kV with step up to 22 kV for power transmission to the project loads across the mine site.

Coburn has a JORC compliant mineral resource of 1,600 Mt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

The contract is based on a 15-year BOOM commercial model with fixed and variable payment regime for power consumed over the term, Strandline said. The contract provides for incorporation of wind turbine and other new generation technology solutions under agreed commercial structures as and when they become commercially attractive to the project.

Strandline Managing Director, Luke Graham, said the execution of this major development and operational contract marked another key step in the company’s strategy to bring Coburn into production as well as establishing an important relationship with Contract Power, a leader in sustainable clean energy generation in Western Australia.

Woodside and EDL to supply LNG to Strandline’s Coburn mineral sands project

After securing a contractor to build the power generation facilities at its Coburn project in Western Australia, Strandline Resources has appointed subsidiaries of Woodside Energy and EDL, in joint venture (WEJV), as preferred contractor to supply LNG to the mineral sands development’s power generation facilities.

The WEJV solution provides Strandline with a long-term clean, reliable and affordable solution for Coburn, the company said.

Under the WEJV proposal, LNG will be supplied via road train from Woodside’s Pluto LNG Truck Loading Facility near Karratha, Western Australia.

“Coburn’s mine site power infrastructure is based on a low-cost, low-emission solution integrating LNG-fuelled generation with state-of-the-art solar and battery storage technology (provided by third parties),” the company said.

The proposed LNG supply contract is over a 10-year term (with appropriate pricing review and adjustment mechanisms) and enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020.

As preferred contractor, the parties will now compile final contract documentation subject to the satisfaction of Coburn’s lenders and agreement between the parties.

Strandline Managing Director, Luke Graham, said the appointment establishes an important long-term relationship with two industry leaders in the energy sector, in Woodside and EDL.

“The company continues to move rapidly towards development of Coburn and these key contract appointments to well-credentialled suppliers provide delivery certainty,” he said.

Strandline energises Coburn mineral sands plan with Contract Power BOO agreement

Strandline Resources says it has taken another important step towards development of its Coburn mineral sands project in Western Australia by appointing Contract Power Australia as preferred contractor to build, own and operate (BOO) the power generation facilities for the project.

Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas fuelled generation with solar and battery storage technology.

The proposed power solution enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020, it said.

Contract Power, a wholly-owned subsidiary of Pacific Energy Ltd, specialises in turnkey design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia, Strandline says.

Coburn’s power station will be located near the mineral separation plant. The power station is designed for a maximum demand capacity of 16 MW and average consumed power of circa-10 MW. Natural gas will be supplied by others under an industry standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power (Contract Power’s typical LNG-fuelled power station build layout, pictured), according to Strandline. The LNG then feeds a set of engine generators on an N+1 basis and has circa-30% solar penetration for the major stable loads. Generation is at 11 kV with step up to 22 kV for power transmission to the project loads across the mine site, Strandline says.

As preferred contractor, the parties will now compile final contract documentation to the satisfaction of Strandline and Coburn’s lenders. The contract is based on a 15-year BOO (and maintain) commercial model with fixed and variable payment regime for power consumed over the term.

This appointment follows Strandline’s recent A$18.5 million ($13.1 million) equity raising to advance early works development activities while finalising the balance of project funding. Strandline says it continues to make strong progress towards definitive finance documentation and conditions precedent for the NAIF A$150 million loan facility and is advancing discussions to secure a commercial debt tranche expected to stand alongside the NAIF funding.

Since raising the A$18.5 million, Strandline has appointed Macmahon as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project, instructed Piacentini & Son to design and construct three mobile dozer mining units for Coburn and awarded preferred EPC status to Primero Group for the mineral sands asset.

Strandline Managing Director, Luke Graham, said the appointment marked another key step in its strategy to bring Coburn into production and establishes an important relationship with Contract Power, a leader in sustainable clean energy generation in Western Australia.

Coburn has a JORC compliant mineral resource of 1,600 Mt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

Primero, Mineral Technologies enlisted for Strandline’s Coburn mineral sands project

Primero Group has been awarded preferred EPC status on a substantial contract with Strandline Resources on the Coburn mineral sands project in Western Australia.

The total volume of awarded engineering procurement and construction (EPC) works totals around A$150 million ($107 million), according to Primero, and follows an initial eight-week Early Contractor Involvement (ECI) process that provided further definition of the delivery strategy and project deliverables between the groups. It also coincided with the appointment of Mineral Technologies (MT), a global services provider and leader in the design and supply of mineral sands processing facilities (and a subsidiary of Downer Group), as the strategic technology partner alongside Primero for the project delivery.

Strandline said the contract involved the engineering, procurement, construction, commissioning and performance testing of the Wet Concentration Plant (WCP), Mineral Separation Plant (MSP) and associated processing circuits at the operation.

The Coburn WCP is designed to beneficiate the heavy minerals (ilmenite, leucoxene, rutile, zircon and monazite) and reject the non-valuable, lighter minerals through multiple stages of high capacity gravity separation and classification, according to Strandline. The rich heavy mineral concentrate produced from the WCP will be transported to the MSP and stockpiled ready for processing.

“The WCP infrastructure is relocatable and is planned to be moved several times during the mine life as the mine advances along the orebody,” Strandline said. “The MSP design comprises conventional electrostatic separation, gravity and magnetic fractionation to recover a range of premium-quality final products, including chloride ilmenite, rutile, premium zircon and zircon concentrate.”

The full project award is subject to Strandline Resources approving a Final Investment Decision in the coming months, Primero said. The ECI process came after Strandline’s recent A$18.5 million equity raising.

Primero Managing Director and CEO, Cameron Henry, said: “This award is an excellent example of Primero’s ECI phase in action and adds to our growing book of projects in preferred contractor status. We have worked intensively with Strandline over the past two months in designing a delivery solution that best meets the key project objectives and value drivers, while also minimising execution risks.”

Strandline has also already appointed Piacentini & Son to design and construct three mobile dozer mining units for the project, while Macmahon has been named as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project.

Strandline’s Coburn mineral sands project to go mobile with Piacentini dozers

Strandline Resources says it has taken another important step towards development of its Coburn mineral sands project in Western Australia by appointing Piacentini & Son to design and construct three mobile dozer mining units for the project.

The scope of the A$21 million ($15.3 million) fixed-price contract forms a key part of Coburn’s efficient dry mining methodology, capable of receiving, screening and pumping ore from the mine to the processing facilities at an average rate of 3,100 t/h, based on two units in operation at any one time, it said.

The contract follows Strandline’s recent A$18.5 million equity raising to advance early works development activities while finalising the balance of project funding. Strandline says it is making solid progress towards definitive finance documentation and conditions precedent for the Northern Australia Infrastructure Facility A$150 million loan facility and is advancing discussions on the commercial debt tranche which is expected to stand alongside.

Coburn has a JORC compliant mineral resource of 1.6 Bt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

Last month, Strandline appointed Macmahon as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project. The company is also expected to carry out contract mining at the site.

Strandline says the in-pit dozer mining units from Piacentini are designed to be frequently relocated as the mine progresses through the mine plan.

The parties have agreed final contract documentation based on a fixed price, fixed schedule arrangement, in line with the assumptions contained within the Coburn definitive feasibility study, Strandline added.

“The agreement is subject to standard conditions precedent regarding the development of the project and Strandline releasing a formal notice to proceed to commence the works under contract,” the company clarified.