Tag Archives: contract mining

Macmahon confirms mining gig at Greenbushes lithium project

Macmahon Holdings says it has now finalised a load and haul services contract with Talison Lithium Australia Pty Ltd for the Greenbushes lithium project in Western Australia.

This follows Macmahon’s selection as the preferred load and haul contractor for the project, announced last year.

This contract involves open-pit mining activities of load and haul, and crusher feed, which will commence on July 1, 2023, for a seven-year period with an option to extend for up to two years. The contract is estimated to generate revenue in excess of A$1.1 billion ($768 million) over its initial seven-year term.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to finalise this contract with Talison Lithium for its Greenbushes lithium project. This contract will add approximately A$1.1 billion to our order book, which delivers on our commodity diversification strategy into future-relevant commodities. We have built a strong relationship with the Talison Lithium team and look forward to developing this project with them.”

Talison Lithium is a Western Australia-based mining company which is 51%-owned by a joint venture comprising Tianqi Lithium Corporation and IGO Limited, and 49%-owned by Albemarle Corporation.

Together with its predecessor company, Talison Lithium has been producing lithium concentrates at Greenbushes since 1983, which are ultimately used in lithium batteries. The Greenbushes project, directly south and adjacent to the town of Greenbushes in Western Australia, is a major supplier of lithium mineral concentrates.

Perenti’s AMS extends contract at Resolute Mining’s Mako mine

Perenti-owned African Mining Services (AMS) has been awarded a contract extension for surface mining activities at Resolute Mining Limited’s Mako gold mine in Senegal, it says.

The revised contract is valued at approximately $85 million over a period of four years, commencing on January 1, 2023.

Through AMS, Perenti has provided surface mining activities at the Mako mine since 2017.

Mako is owned and operated by Resolute’s Senegalese subsidiary, Petowal Mining Company S.A. Resolute has a 90% interest in Petowal and the Government of Senegal holds the remaining 10%.

It is a conventional drill and blast, truck and shovel operation with mining services undertaken by AMS. The carbon-in-leach processing plant has greater than 2 Mt/y of installed capacity and comprises a crushing circuit, an 8 MW SAG mill and gold extraction circuit.

PYBAR extends stay at AIC Mines’ Eloise copper mine

PYBAR, part of Metarock Group Ltd, has been rewarded for its last two years of service at the Eloise copper mine in Queensland, Australia, having now been awarded a four-year services contract.

Since arriving on site in 2020, PYBAR says it has set the standard in safe and efficient delivery of underground mining services and will continue delivering as it embarks on a new four-year mining services contract.

Having safely completed nearly 6.5 km of development at the high-grade Eloise copper mine over the past two years, PYBAR was invited to participate in a competitive tender process for the new contract earlier this year and was awarded the mining services contract at Eloise by mine owner, AIC Mines Ltd, for a further four-year term.

The new contract, with the additional scope of shotcrete services, will see PYBAR on site at Eloise through to 2026, and includes the development of declines, level accesses, ore drives, stockpiles and infrastructure, providing all facilities, services, labour, supervision, administration, construction plant and materials.

Forming part of the PYBAR fleet of mining equipment on site is a new Elphinstone CT WR820 10 cu.m agitator (pictured below), as well as two twin boom jumbos, two LHDs, a charge rig and a shotcrete spray rig.

PYBAR’s CEO, James Glover, said: “We are very pleased to have been awarded the extension of the Eloise project which is a testament to the work that has been delivered on site to date by our team at Eloise. AIC is a growth focused resources company and it’s pleasing to be able to extend our term for another four years and be a part of that growth journey.”

The team of over 50 skilled PYBAR personnel on site has kicked off the new Eloise contract well, setting the standard for the remainder of the contract with a near-record month of 412 m of development achieved in July.

AIC Mines said in November that it was targeting production of approximately 12,500 t of copper and 6,000 oz of gold in concentrate in its 2023 financial year to June 30, 2023.

Thiess extends mining services stay at Wahana and Hanoman mines in Indonesia

Thiess says it has received contract extensions in South Kalimantan, Indonesia, at the Wahana coal mine from Bayan Resources and at the Hanoman coal mine from PT Cakrawala Langit Sejahtera , which mines the pits in the Satui area owned by Arutmin, part of Bumi Resources.

With a combined value of A$480 million ($320 million) over more than three years, Thiess will extend its mining services, including drill and blast, load and haul, and pit dewatering.

Thiess Executive Chair & CEO, Michael Wright, said: “We are excited to continue to deliver sustainable mining outcomes for our longstanding partners Bayan and PT CLS by working the two adjacent mines.

“These extensions reinforce our capability and credentials for operational excellence. They also give us opportunities to showcase our passionate commitment to diversity and inclusion, where we continue to increase the participation of women and people with disability in our workforce.”

Thiess President Director, Indonesia, Jeffrey Kounang, added: “The solutions we provide for both clients enable our team to maximise resource recoveries and optimise the reserves of both operations. We are proud to continuously live up to our clients’ expectations and deliver on our promises.

“We are also very pleased to be able to continue working with the Satui community, which started back in the early 2000s, to help create lasting social and economic values.”

These contract awards build on two separate agreements Thiess has signed in Indonesia, both announced this week. Thiess successfully extended a long-term contract with Bayan Resources to continue providing mining services at the Melak mining complex, in East Kalimantan, while it also secured an agreement with Kaltim Prima Coal to extend its current mining services contract and to provide fleet hire services at Sangatta mine, also in East Kalimantan.

Mota-Engil seals Endeavour Mining Lafigué gold project contract

Portugal-based contract mining firm Mota-Engil says its Africa subsidiary has signed a mining contract for the Lafigué project in Côte d’Ivoire worth some $600 million.

Lafigué is in the north-central part of the country, some 500 km from Abidjan, within the northern end of the Oumé-Fetekro greenstone belt.

Endeavour launched construction ofn its 80%-owned project in October, following completion of a definitive feasibility study that outlined a project able to produce approximately 200,000 oz/y at an all-in sustaining cost of $871/oz over its initial 12.8-year mine life. This featured a six-stage open-pit mine amenable to conventional open-pit, drill and blast mining.

Mining is due to occur in 10-m benches, with double batters to achieve the final 20-m bench heights. Ore mining will occur in three to four flitches, selectively using smaller loading equipment in order to decrease dilution. The study detailed that diesel excavators and trucks will be used for loading and haulage, with a fleet comprising 400-t-class face shovels to load 180-t capacity dump trucks for waste mining, and 200-t-class excavators to load 180-t capacity dump trucks for ore mining.

First gold production is expected early in the September quarter of 2024.

The mining services to be carried out by Mota-Engil under the contract includes mine development, pit dewatering, free digging, drilling, blasting, loading and hauling of ore and waste, it says.

The works are scheduled to start in December 2023 and will have a duration of 60 months.

Sandvik and Redpath to tackle underground mine safety and profitability with new pact

Sandvik and Redpath are aiming to improve safety and reduce underground mining costs through technology advancements, innovation, continuous improvement projects and standardised best practices under a newly-signed agreement guided by operational and relationship key performance indicators.

The five-year agreement includes Sandvik commitments on local presence and support, as well as an annual technology summit and factory training sessions. It will also standardise the use of equipment, leading to cost reductions and safety enhancements, the companies said.

“Sandvik Mining and Rock Solutions has long been a valued supplier of underground mining solutions to our global operations,” George Flumerfelt, CEO of The Redpath Group, said. “This mutually beneficial cooperation will help ensure Sandvik provides the same service experience and quality, independently of the geographic location and size of Redpath operations.”

Mats Eriksson, President of Sandvik Mining and Rock Solutions, added: “This agreement underlines the trust we have in our long-term relationship and further strengthens our good partnership with Redpath. Closer collaboration with Redpath’s business will enable us to deliver on expectations and optimise our product development.”

The two companies have worked on many underground mining projects together in the past and, last year, Redpath became the first company to receive and operate a Sandvik DD212 production drill in Australia, putting it into action at Silver Lake Resources’ Rothsay gold mine in Western Australia.

Macmahon Holdings to take on load and haul duties at Greenbushes lithium mine

Macmahon Holdings says it has received a Notice of Award from Talison Lithium Australia for the load and haul mining works at its Greenbushes lithium project in the southwest of Western Australia.

Talison Lithium is a Western Australia-based mining company which is 51%-owned by a joint venture comprising Tianqi Lithium Corporation and IGO Limited, and 49%-owned by Albemarle Corporation.

Together with its predecessor company, Talison Lithium has been producing lithium concentrates at Greenbushes since 1983 which are ultimately used in lithium batteries. The Greenbushes project, directly south and adjacent to the town of Greenbushes in Western Australia, is a major supplier of lithium mineral concentrates.

The scope of works on the Greenbushes project includes open-pit mining activities of load and haul, and crusher feed.

Subject to final documentation of certain in-principle agreed terms and signing within 30 days, the contract will commence on July 1, 2023, for a seven-year period and has an option to extend for up to two years. The contract is estimated to generate revenue in excess of A$1.1 billion ($731 million) over its initial seven-year term.

Key mining equipment required for commencement will be from deployment of Macmahon’s existing available mining fleet with minimal impact to capital expenditure in the 2023 financial year, Macmahon says. The maximum remaining capital expenditure required to support this project is spread from the 2024 to 2028 financial years (inclusive) and totals approximately A$128 million. The five-year spread of this capital spend enables Macmahon to maintain a strong balance sheet and enhance return on average capital employed performance, and a number of opportunities exist to optimise this further.

Macmahon said: “The Greenbushes project is in an attractive location, has an existing long-term and loyal workforce with many based in the area. We are eager to engage with them and other people to discuss employment opportunities on the project to build a world-class team. Engaging with the on-site team is a priority for us upon award given the high level of performance we have noted on the project.”

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to have received the Notice of Award from Talison Lithium for load and haul mining services at its Greenbushes lithium project and look forward to finalising the contract. We very much value the relationship we have forged with Talison Lithium and will continue to build on it. The award of this contract delivers on our commodity diversification strategy into future relevant commodities.”

Redpath opens mobile equipment repair facility in North Bay

Redpath, on the day it celebrated its 60th anniversary, has inaugurated a new state-of-the-art mobile equipment repair facility at its North Bay facility in Canada.

The new facility represents an C$8.5 million ($6.2 million) investment in the company’s North Bay infrastructure and shows Redpath’s continued confidence that the Ontario city is the ideal location for its global headquarters, it said.

The 15,600 sq.ft (1,449 sq.m) building consists of six repair bays, two inspection bays, along with welding and washing bays. Thanks to the new shop, Redpath will be able to handle the complete life cycle of any piece of equipment from its underground mining fleet in-house, it said.

The new building incorporates environmentally conscious features including solar-powered auxiliary power units, heated floors, wastewater collection and recycling, and recirculated air for ventilation.

Redpath said: “It was 60 years ago that Jim Redpath started the company with the commitment to provide superior contracting services to the mining industry. From a mere four employees in the early 1960s, Redpath today employs over 6,000 people in projects all over the world.”

Orefields Raise Boring, Cementation Canada to collaborate on mining project delivery in Scandinavia

Sweden-based Orefields Raise Boring AB has established a Memorandum of Understanding (MoU) with Cementation Canada Inc that could see the two companies collaborate on projects in Scandinavia going forward.

Cementation, a global mine development contractor, complements Orefield’s’ mining services, which include pilot drilling, raiseboring, down-reaming, horizontal raiseboring and casting/grouting, it says, offering capability and experience to engineer and sink shafts, drive decline ramps, lateral development, production mining and mine construction to access and mine orebodies.

Additionally, the team’s offerings include full in-house engineering and design-supply services for crushing/screening and conveying systems that condition and deliver run-of-mine ore to the processing facility.

In addition to introducing expanded capabilities beneficial to the broader Scandinavian Region, the Orefields + Cementation Tier 1 Team bring innovative delivery model alternatives that reduce risk for the mine owner when compared with the conventional engineering procuement and construction (EPC) or design-bid-build approaches, they say.

For example, creative risk-reducing alternatives include:

  • Design-build-operate/maintain (DBOM)
    • DBOM + system ownership
    • Following an agreed period of operation, option to transfer ownership
    • Owner’s mine build & mining partner

Cementation explained: “Over the life of the facility, operations and maintenance expenses often far exceed the initial cost to design and build systems. Consequently, the design and construction of the system significantly impacts operational reliability and the resultant costs that accumulate over the years. Our DBOM approach, being performed by a single accountable venture, reduces risk inherent in spreading work packages between different organisations (as with EPC or design-bid-build approaches, for example). Simply put, the principle behind the DBOM delivery model is that we ‘pack our own parachute’, so we make sure it is done right from the beginning through to deployment.”

With this partnership specifically being established in Sweden for the benefit and added value to the Scandinavian Region, technical and professional labour resources, as well as the supply of materials, equipment and fabrication/construction, will be procured in the local regions where possible. Depending on the availability of qualified Scandinavian-based resources, secondary preference will be given to other European Region countries.

Thiess in leading position to take over fellow contract miner MACA

Thiess looks like winning the acquisition tussle for fellow contract miner MACA after an increased all-cash offer was recommended by the MACA Board and NRW Holdings said it would no longer be pursuing a potential deal.

Thiess recently increased its offer price from A$1.025 ($0.71) of cash per MACA share to A$1.0751 of cash per MACA share, with the increased offer price representing a premium of 49.2% to the MACA one-month volume weighted average price as at July 25, 2022.

This followed a merger approach from NRW Holdings in August, which implied a consideration of A$1.085/share, valuing the equity of MACA at A$375 million. MACA said it did not consider this merger proposal as superior to the existing Thiess offer, continuing to recommend shareholders accepted the offer from Thiess.

Following this latest increased offer from Thiess, NRW confirmed it no longer intended to pursue the acquisition of MACA.

Including the acceptances received from MACA founders and MACA directors, Thiess’ total relevant interest in MACA is currently 15.9%.

Thiess, in its initial Bidder Statement, said it intends to operate MACA in materially the same manner supported by MACA’s workforce, brand and assets, and to continue its highly regarded community partnerships.

The proposed acquisition of MACA by Thiess is consistent with its diversification strategy, with a particular emphasis on increasing its presence within metals and minerals hard-rock mining operations in Western Australia, it says.

To this point, the company’s Western Australian hard-rock mining exposure has consisted mostly of work with BHP’s Western Australia nickel assets, in addition to a recent contract award at the Covalent Lithium Joint Venture project.

MACA has exposure to the state’s iron ore sector thanks to contracts with Fortescue and BHP; the burgeoning gold segment through contracts with Regis Resources, Ramelius Resources, Capricorn Metals and Red 5; and nickel and lithium exposure from the Ravensthorpe mine and Pilgangoora project, respectively.

Thiess also said in its Bidder Statement that it sees “a significant opportunity to combine the operational capability of both companies to continue enhancing service quality, particularly in relation to technical solutions such as deploying autonomous machinery or reducing the carbon emissions of mining services on project sites”.

Back in March, MACA announced a partnership with SafeAI to form an MoU to retrofit a mixed fleet of 100 mining trucks across multiple locations with autonomous mining technologies.

With the satisfaction of the ACCC condition on August 26, 2022, the Thiess offer is only subject to FIRB approval, no Prescribed Occurrences, no issue of convertible securities, derivatives or other rights and 90% minimum acceptances, Thiess says.

Thiess’ revised offer is scheduled to close on September 12 unless otherwise extended.