Tag Archives: contract mining

Contract miner MMS acquires East Sampson gold project

Mine operation news, Mining mergers and acquisitions, Mining services, , , ,

Mineral Mining Services (MMS) has announced a significant expansion of its gold mining operations with the acquisition of the East Sampson gold project, in Western Australia, from Moho Resources.

This strategic move strengthens MMS’ position in the gold sector and reinforces the company’s commitment to delivering exceptional results for its stakeholders, the company says.

“This is a major step forward for MMS,” new MMS CEO, Rob Ryan, says. “East Sampson aligns perfectly with our focus on high-potential open-cut gold projects with near term production potential. We’re bringing our proven expertise and track record of success to unlock the full value of this asset.”

The East Sampson gold project boasts a high-grade JORC mineral resource of 264,000 t at 2.5g/t for 21,000 oz with substantial exploration upside. “MMS is confident in our ability to optimise production and maximise returns, leveraging our operational excellence and technical capabilities,” the company says.

This acquisition comes on the heels of MMS’ recent successes at the Kal East gold project, where the company consistently exceeded expectations in terms of production and efficiency. In September, just two months after breaking ground, MMS, in partnership with Black Cat Syndicate, celebrated the first gold pour from the Myhree pit at the Kal East project.

BUMA secures $7.8 billion contract extension from Bayan Resources subsidiary

Coal technology, Mining services, , , , , , ,

PT Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of PT Delta Dunia Makmur Tbk (Delta Dunia Group), has secured a long-term contract extension with PT Indonesia Pratama (IPR), a subsidiary of PT Bayan Resources Tbk (Bayan Group).

The contract extension period spans 11 years, from 2024 to 2035, and will significantly contribute to BUMA’s revenue, amounting to approximately $7.8 billion.

The agreement includes a substantial increase in overburden removal, reaching 1.827 billion bank cubice metres, and an increase in coal production to 465 Mt over the contract period.

Ronald Sutardja, President Director of Delta Dunia Group, said: “We are proud of our long-standing relationship with Bayan Group, one of the leading coal producers in Indonesia. This contract extension reflects BUMA’s track record in delivering safe, efficient and reliable mining services to Bayan Group. It also reaffirms Delta Dunia Group and BUMA’s commitment to continue strengthening our presence and growing our core business in Indonesia while deepening our long-term relationships with all of our partners.”

Indra Kanoena, President Director of BUMA, stated, “This amendment agreement reflects Bayan Group’s trust and long-term commitment to strengthening our strategic and sustainable relationship, which has grown strong for over 17 years. It also underscores BUMA’s dedication to always prioritising mutual success with our clients. With this amendment agreement, we are committed to continuously enhancing our operational excellence and supporting sustainable growth for BUMA and Bayan Group.

“At BUMA, we are committed to consistently creating optimal value for all stakeholders while generating a positive impact on the communities and environment. We hope to sustain this positive momentum, seizing growth opportunities for both our company and our stakeholders.”

Cementation Americas to bring Cat R2900 XE diesel-electric loader to New Gold’s Rainy River

Environmental, Mine operation news, Mining services, Precious metals, Sustainable mining, , , ,

Cementation Americas has become the latest miner to add a Cat R2900 XE loader to its equipment fleet, with the contractor set to deploy the diesel-electric LHD at New Gold’s Rainy River project in Ontario, Canada.

The company made the announcement on LinkedIn, referring to the loader as “Caterpillar’s innovative solution” designed to handle bigger payloads, facilitate faster loading and significantly reduce emissions using a diesel-electric drive system. It added: “The 449 hp (335 kW) engine and 18.5-tonne capacity promise efficient and powerful performance.”

Cementation Americas said project leadership at Rainy River was anticipating the realisation of a significant reduction in both fuel burn and heat, creating a better environment for personnel all while increasing productivity, with the introduction of the machine.

It concluded: “Cementation is proud to collaborate with New Gold to execute sustainable solutions and reduce environmental impact in the underground mining environment. Let’s get this thing dirty!”

Since commercial launch last year, the Cat R2900 XE has found its way into loading fleets owned by Gold Fields, Westgold Resources and MMG in Australia. Newmont recently confirmed an order for nine R2900 XEs to the Subika gold mine, in Ghana, while Centamin also added at least one of these LHDs to its underground fleet at Sukari, in Egypt. In Canada, Alamos Gold also recently purchased two of these machines for its Young-Davidson mine.

BUMA Australia wins contract extension at Meandu coal mine

Coal technology, Mine operation news, Mining services, ,

PT Delta Dunia Makmur Tbk (Delta Dunia Group) announced that its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA), through its wholly owned Australian subsidiary, BUMA Australia Pty Ltd (BUMA Australia) has been selected by TEC Coal Pty Ltd, a subsidiary of Stanwell Corporation, to continue providing mining services at the Meandu mine in Queensland, Australia.

The contract extension will last through June 2026, valued at approximately A$200 million ($138 million) per year. Under the renewed contract, BUMA Australia will maintain its current operational scale, with annual production of approximately 35 million bank cubic meters (bcm) and coal volumes of around 7 Mt.

Dian Andyasuri, Director at Delta Dunia Group, said, “We are delighted to continue BUMA Australia’s successful partnership with Stanwell Corporation. This contract renewal reflects BUMA Australia’s valuable contributions to our clients’ success and our commitment to building long-term partnerships. Delta Dunia Group is proud of BUMA Australia’s dedication to providing exceptional and reliable mining services, fostering strong community relationships, and practicing environmental responsibility as we move forward with the Meandu Mine project, setting new standards for excellence and sustainability in the industry.”

BUMA Australia has been operating the Meandu mine project since 2021 and will continue to oversee all aspects of the mine. This includes Site Senior Executive (SSE) responsibilities, mine planning, drilling, blasting, overburden removal, coal mining, and the management of coal handling and processing plants. Additionally, BUMA will oversee rehabilitation activities, civil works, and the maintenance of both mobile and fixed plant equipment.

BUMA Australia is committed to creating jobs and community development initiatives for the South Burnett region where the Meandu mine is located. Programs such as local skills training, cooperation with regional firms, and sponsorship of local sporting teams and events have greatly strengthened community bonds and boosted local economic growth.

“The new contract extension not only highlights BUMA Australia’s expertise in providing comprehensive mining services but also showcases our commitment to growing alongside the local economy and empowering the community. We are dedicated to recruiting locally and creating a diverse and inclusive workplace. Our focus on diversity and indigenous involvement ensures that all employees feel valued and supported. By investing in local talent and supporting diversity, we help to drive economic growth and social well-being in the South Burnett region,” said Colin Gilligan, CEO BUMA Australia.

In line with its commitment to environmental sustainability, BUMA Australia ensures that high-quality progressive restoration goals are consistently accomplished. In 2023, BUMA Australia reached an important milestone by completing the rehabilitation of 39.4 ha of native vegetation at Meandu mine. This initiative, which includes modern techniques for recovering local ecosystems, demonstrates BUMA Australia’s commitment to environmental responsibility.
BUMA Australia’s focus on compliance with the Coal Mining Safety and Health Act and Regulations has won industry recognition.

The extension contract with Stanwell Corporation at the Meandu mine marks an important milestone for Delta Dunia Group as it continues to strengthen BUMA’s presence in the global mining industry, particularly in the Australian market. More importantly, it allows BUMA Australia to continue its commitment to fostering local economic growth and sustainability.

MMSRed5

MMS adds to Red5 remit with new 12-month load and haul contract

Mine operation news, Mining equipment, Mining services, Precious metals, , , ,

In what it says is another significant win, MMS has been awarded a second contract with Red 5 (formerly Silver Lake Resources), in Western Australia.

Over the 12-month contract, MMS will deliver load and haul services; deploying a 100-t fleet including a near-new Hitachi EX1200 excavator.

This contract solidifies the partnership between MMS and Red 5, which also includes a 49-month contract signed that commenced on April 1 to work on the Silverlake Mount Monger operation.

MMS says it has gotten off to a strong start – having already mobilised equipment to the site and successfully completed the first month of production. The extracted ore is already on its way to Red 5’s Randalls mill for processing.

MMS says its primary contract with Red 5 is currently progressing exceptionally well, and is on track to commence operations at the Flora Dora open pit by the end of the month.

MMS General Manager, Josh Conley, said: “Securing this second contract with Red 5 is a testament to the hard work and dedication of our team. We’ve consistently delivered outstanding results on our existing contract, and this new project allows us to further showcase our expertise in providing efficient and reliable mining solutions.”

Contract miner CBI to develop underground mine at BBM in Indonesia

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

Cokal Limited’s 60% owned subsidiary, PT Bumi Barito Mineral (BBM), has signed a binding agreement with PT Cipta Bersama Indonesia (CBI) to develop an underground mining operation at Pit 1 of the BBM Metallurgical coal mine, to produce a pulverised coal injection (PCI) product.

This strategic agreement represents a significant windfall for Cokal, as there were no plans to develop underground operations at BBM Pit 1 within the foreseeable future, given capital constraints and a high-level of requisite technical expertise, it says.

The BBM feasibility study, completed by Cokal in 2014, highlighted the importance of an underground mining operation at BBM Pit 1. A significant volume of Cokal’s JORC coal resources are considered to be most viably accessed through underground development in order to maximise financial outcomes, given lower strip-ratios, unit production costs, and the outlook for the long-term market for PCI coal products.

As part of the agreement, BBM will obtain the necessary regulatory approvals to conduct underground mining operations at BBM Pit 1. BBM has appointed CBI as the contractor in charge of the development of an underground
mine at BBM Pit 1, and the ongoing mining contractor operations for PCI coal production.

CBI has agreed to pay all mine development costs, and 100% of ongoing operating costs until delivery of coal to run of mine stockpile.

As part of this, Cokal will undertake the transport of product coal from BBM ROM to Batu Tuhup jetty, and then to market and will be responsible for the sales and marketing of the coal product. BBM shall be responsible for developing and managing additional coal transport infrastructure capacity for the delivery of coal product from the BBM Pit 1 underground mine to market.

The company added: “BBM is not required to reimburse CBI for any of the upfront capital or ongoing operating costs incurred by CBI. Rather BBM and CBI will share revenue from sale of the coal product in the following proportions: BBM 40%/CBI 60%.”

CBI has also undertaken to develop coal processing infrastructure at BBM in the near term, for use by both the underground operations and other BBM production.

The term of the agreement is for the life of the mine for the underground mining at BBM Pit 1.

BBM and CBI will immediately commence development of the BBM Pit 1 underground coal mine operations, with three key stages, each designed to optimise operations and ensure seamless integration with existing infrastructure. Stage one constitutes feasibility study and reconnaissance. Stage two is infrastructure development. Stage three is operations and logistics.

The timeline for stage one is six months, while stage two is expected to be completed in next 12 months thereafter.

Cokal CEO, Karan Bangur, said: “This agreement is another major milestone in BBM’s development and production ramp-up. Importantly, prior to the agreement with CBI, BBM did not anticipate any underground mine development for at least another decade. This agreement brings that production forward and is entirely in addition to the current targets of coal production from the open-pit operations at BBM. This will add additional cashflow and enhanced value to Cokal.

“In addition, the additional coal volumes will utilise and enhance the value of the extensive coal transport logistics chain that Cokal has developed and is expanding.

“Cokal and CBI anticipate that development of the underground project to first coal production will require approximately 18 months. During that time Cokal will further develop and enhance its logistics infrastructure capacity to accommodate a substantial increase in transported coal tonnages.”

Lynas Rare Earths to switch to continuous mining mode at Mt Weld with help of Carey Group

Energy minerals, Mine operation news, Mining services, , , , , , ,

Lynas Rare Earths Ltd has awarded Western Australia-based company Carey Group Holdings a five-year contract for mining services at Lynas’ Mt Weld rare earths mine near Laverton.

The contract will draw on Carey’s nearly 30 years of experience as an open-pit mining contractor and leading 100% First Nations-owned business, including as a service provider to neighbouring mines near Laverton.

Carey will commence on site at the high-grade Mt Weld mine in April 2024. On commencement of the contract, Lynas will transition from campaign mining to continuous mining over the five-year period to supply ores to the expanded Mt Weld process plant.

Under the contract, Carey will mobilise a mining fleet comprising production drilling, excavation, hauling and auxiliary equipment. Carey will provide new haul trucks as part of the contract, with a focus on technologies designed to improve efficiency, productivity and precision for extracting ores, Lynas says.

A signing ceremony for the contract with Carey was held in Perth today and Amanda Lacaze, CEO & Managing Director, Lynas Rare Earths (pictured on the left), said: “Lynas is delighted to award the Mt Weld mining contract to Carey. Carey has almost 30 years of experience working with open-pit mine environments and is a leading contractor in its field. Significantly for Lynas, Carey’s founder and Managing Director, Daniel Tucker AM, grew up in the Laverton area. Daniel and his team have a strong connection to country and this is evident in their approach to sustainability and to providing opportunities for First Nations people to build and develop skills and expertise.

“We share Carey’s values and commitment to providing career opportunities and skills development for First Nations people. We look forward to working with Carey as we continue to enhance our operations, safety and sustainability through this contract.”

Tucker (pictured on the right) said: “We are immensely pleased for the opportunity to work with a global leader such as Lynas, and grateful to receive this contract award which continues to build on our history of the delivery of contract mining services in the Goldfields.

“As a leader of First Nations business in Australia, this long-term contract will allow us to deliver value for Lynas, Carey, other First Nations businesses and local supply chain partners. I look forward to a successful
partnership with Lynas.”

Tapojärvi kicks off open-pit mining contract at Kaunis Iron

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

Tapojärvi Sverige Ab recently began a new contract mining gig at the Kaunis Iron mine in Pajala, Sweden, at the same time as the temperatures in that region plummeted to around -40°C.

The service contract with Kaunis Iron covers machine work in ore production as well as production support work, which includes all open-pit production activities other than rock transportation, drilling and charging.

Miika Miettinen, Production Manager at Tapojärvi, said the contract began as agreed on January 1, with the company compiling a service package in only six weeks.

The start of a new service contract requires new personnel and equipment to carry out production in line with the contract. Additionally, production control systems, infrastructure, offices and production facilities, as well as maintenance services, are needed. A mining contractor must also consider safety at every step of production.

Approximately 60 new employees were recruited, and additional personnel were borrowed from other Tapojärvi sites, to bring this contract in within the six-week timeframe.

Miettinen highlights the professional mindset of his employer, skilled and committed personnel and new equipment as Tapojärvi’s strengths. These factors enable Tapojärvi to respond quickly to the client’s needs.

“We were forced to let the production stand idle when the temperature dropped low in early January,” Miettinen said. “There were also some struggles involving the machinery. Despite everything, our operations have been launched successfully and the client has been happy with our performance.”

To support its operations, Tapojärvi has developed processes and systems that are constantly collecting online production data. Data and analytics help enhance Tapojärvi’s performance, safety and maintenance processes.

“We are able to provide the client with comprehensive and complex production data, which allows us to influence the mine’s operations and performance together with the client,” Miettinen said. “I am glad that our cooperation with Kaunis Iron has gone smoothly from the very beginning and that we are already involved in developing the operations.”

The service contract with Kaunis Iron is Tapojärvi Sverige’s first major open-pit mine contract in Sweden. The company has previously worked in underground mines on the sites of LKAB and Zinkgruvan, for example.

Gabrielle Iwanow to head up Perenti’s Contract Mining Division

Mining people, Mining services, , , , , ,

Gabrielle Iwanow has been appointed President of Perenti’s Contract Mining Division, replacing Paul Muller, who will be taking up a new role within the Perenti Group Executive Committee, following a short period of study leave between January and May 2024.

Iwanow is, Perenti says, one of Australia’s leading mining executives with extensive experience working at senior operational and executive levels within the resources sector.

She was also named as one of the Top-100 Global Inspirational Women in Mining in 2020. Her career includes time in senior management positions at ASX 100 listed mining companies OZ Minerals and Rio Tinto, and most recently she was the Managing Director & Chief Executive Officer of Mincor Resources.

Mark Norwell, Perenti Managing Director & Chief Executive Officer, said: “A key strategic focus for the group is managing and developing our senior talent across the organisation, ensuring we have robust succession plans in place and continue building capability and capacity within our senior leader cohort, including within the Group Executive Committee.

“Gabrielle’s addition to our Group Executive Committee provides the business with additional depth in talent as we continue to build on our record finanicial year 2023 financial results, transformative acquisition of DDH1, ongoing execution of our 2025 strategy and development of our 2030 strategy.

“I would like to welcome Gabrielle to Perenti and thank Paul for his ongoing contribution to Perenti. This is an exciting time for the business as we continue to deliver on our purpose of creating enduring value and certainty for our clients, investors, our people and the communities in which we operate.”

Perenti books exploration, development and production work with Australian miners

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Perenti says it has secured new work and contract extensions with the likes of Regis Resources, BHP Mitsubishi Alliance (BMA) and Catalyst Metal in Australia representing nearly A$150 million ($97 million) of revenue across its 2024 and 2025 financial years.

It has booked a A$70 million, six-month contract for the continuation of underground development and production works at the Regis Resources Garden Well and Rosemont underground gold mines. Barminco and Regis continue to progress collaboratively towards further and material contract extensions at these two mines, it says.

It has also sealed a A$27 million, 24-month contract for exploration surface drilling services at the BHP Mitsubishi Alliance in Queensland, while a A$14 million, 24-month contract has been awarded for underground diamond drilling works at Catalyst Metal’s Plutonic underground gold mine in Western Australia, subject to finalisation of contract terms.

Furthermore, AUMS (through UMA, a joint venture with Rocksure International) received a limited notice to proceed related to the initial underground development works at the Newmont Akyem underground gold mine in Ghana. The finalisation of contractual negotiations continues, however, once finalised it is forecast that the contract could represent circa-A$32 million of revenue over an initial term of 11 months, with a capital structure that is likely to be similar to that adopted for Newmont’s Subika project.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said: “The award of these contracts and the limited notice to proceed across both our underground and surface mining businesses demonstrates the diversity of our service offering and the strength of the relationships we share with our clients. Collectively these three contracts and the limited notice to proceed represent nearly A$150 million of revenue across FY2024 and into FY2025 and come after the recent announcement in which Perenti secured circa-A$360 million of revenue at the Sandfire Resources A4 project in Botswana.”