Tag Archives: contract mining

Barminco wins extension at Regis Resources’ Rosemont, Garden Well operations

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

Barminco says it is further extending its relationship with Regis Resources Ltd, securing a A$70 million ($45 million), six-month extension at the gold miner’s Rosemont and Garden Well operations in Western Australia.

With both gold mines in close proximity, it allows Barminco to continue to be agile with resourcing and equipment to provide comprehensive underground mining services to our client, it says.

Regis recently opened the Balkau Decline at its Garden Well South underground mine, which is an underground extension of the Garden Well open-pit mine: a key production source at Regis’ Duketon gold project, located in the Goldfields region.

Rosemont, meanwhile, includes the Rosemont open pit and underground mine, as well as Baneygo open pit. The Rosemont and associated surface deposits are mined using conventional open-pit mining truck and shovel methods. The Rosemont underground produces approximately 600,000 t/y and is mined using mechanised open stoping.

North American Construction to increase Australia contract mining exposure with MacKellar buy

Equipment maintenance, Mining equipment, Mining services, , , ,

North American Construction Group says it has entered into a definitive purchase and sale agreement to acquire MacKellar Group for an estimated C$395 million ($300 million).

MacKellar Group, with its heavy construction equipment fleet, is an Australia-based provider of heavy earthworks solutions to the mining and civil sectors, with a reputation derived from decades of reliable performance, NACG says. The transaction will significantly expand NACG’s capability and allow the company to serve a highly valuable and diversified base of customers globally, it added.

The transaction emerged through continued dialogue with MacKellar over the past two years, following NACG’s entry into Australia through the acquisition of DGI Trading Pty Limited in 2021. The acquisition of MacKellar is highly complementary to, and a natural strategic fit with, NACG given shared cultural alignment, focus on safety and operational similarities, NACG says. MacKellar will continue to operate and execute on its growth strategy, while delivering on its commitment of service to all its customers and partners.

MacKellar clients include Anglo American Australia at Dawson in Queensland and Bravus Mining and Resources, also in Queensland.

Joe Lambert, Chief Executive Officer of NACG, said: “NACG has built a strong relationship with MacKellar over the past two-plus years. Given the operational and cultural similarities that our companies share, this acquisition is a rare and attractive opportunity. Over the years, we have worked extremely hard to be part of the solution to help lower the operating costs of our customers through safe, efficient operation and maintenance of our equipment fleet. We are excited about partnering with MacKellar to serve our expanded customer base with the same innovations at a time when commodity producers are striving to maximise production and efficiency.”

Duncan MacKellar, Chairman of MacKellar Group, said: “Joining NACG offers a significant opportunity for both companies to share best practices and execute on our growth strategy. Our shared culture, highly skilled maintenance and operations teams, and now global operations will position us as a leader in heavy equipment fleet, allowing us to better serve customers across Australia.”

MacKellar Group adds approximately 450 mobile heavy equipment assets; 1,000 employees, including over 375 maintenance personnel; and 15 operating projects across a variety of service offerings including contract mining, civil earthworks, dry and maintained equipment rentals and component rebuilds to NACG. Its asset base is comprised of a well-maintained fleet operating at effective utilisation levels, it added.

NACG says MacKellar has strong growth prospects and a strong backlog, with operations in Western Australia and Queensland serving as a growth pillar given the large and diverse resource markets combined with a mining friendly jurisdiction. The combined company is expected to have over C$4 billion in contractual backlog by December 31, 2023, which will be the foundation to drive significant growth.

Leo Lithium awards Corica Mali Goulamina open-pit mining contract

Energy minerals, Mineral project development, Mining services, , , , , , , ,

Corica Mali, a subsidiary of Corica Mining Services, has been awarded the open-pit mining services contract at Leo Lithium’s Goulamina project in Mali, a contract valued at approximately $348 million.

The contract, awarded following the completion of a competitive tender process and extensive due diligence, encompasses six months of pre-production activities at Goulamina followed by a fixed five-year term.

The scope of the contract comprises grade control, drill and blast, load and haul, and plant ore feed services. The planned material movement target is 18-20 Mt/y over the term. Corica has already mobilised to site under an early works contract and is currently undertaking the pre-strip and direct shipped ore (DSO) mining and crushing services.

Corica has a successful track record operating in the West African region for over 20 years, and has over 2,000 employees, according to Leo Lithium. It is currently providing large-scale mining services to a number of leading ASX and TSX listed mining companies across seven mining operations in Mali and neighbouring countries of Côte d’Ivoire and Burkina Faso. This includes the Syama open-pit operation (operated by Resolute Mining), the Waghnion mine (majority owned by Endeavour Mining) and the Tongon mine (majority owned by Barrick Gold).

Goulamina is a spodumene project with development underway, located 50 km west of Bougouni in Mali with all approvals and key permits received to bring the project into production. An updated definitive feasibility study was completed in December 2021, which outlined conventional open-pit mining methods involving drilling, blasting, loading and hauling. High-quality concentrate has been validated by test work, including production of concentrate grade of 6% Li2O and low mica. Leo Lithium and Jiangxi Ganfeng Lithium Co. Ltd own the project through a 50:50 joint venture, with the Government of Mali having the option to take up a 10% free carried interest in the project.

Leo Lithium Managing Director, Simon Hay, said: “We are delighted to appoint Corica as our mining services contractor following an intensive tender process. Corica has a long history and strong presence in Mali and will bring substantial local employment and supplier opportunities to the region.

“With the mining contractor now in place, Leo Lithium has taken another major step towards realising its target of first spodumene concentrate production in the first half of 2024. We look forward to working with Corica over the long term, commencing with DSO activities this quarter.”

Procon laying the change management groundwork for mining tech adoption

Automation, IoT, Mine operation news, Mining equipment, Mining events, Mining safety, Mining services, Mining software, , , , , , , , , ,

Canada-based Procon has been implementing tried and tested technology for its employees and end customers for decades, resulting in improved operational safety and productivity outcomes.

It is now looking to make the leap and adopt new solutions from the mining technology sector, according to CEO John McVey, with the contract miner already into “phase three” of an “Industrial Supervisor training program”, focused on Procon’s front-line supervision and incorporating change management associated with this adoption.

Speaking to IM on the side lines of the HxGN LIVE Global 2023 event, in Las Vegas, and ahead of his panel appearance on Wednesday (in a panel titled ‘Down Under: Standing Up to the Challenges of Underground Mining’), McVey said the established contract mining model needed to change to accelerate the uptake of new technology in the market.

“Inherently when we bid for work it has to be competitively tendered in order to try and win a new contract,” he said. “You aren’t typically able to add many bells and whistles on if you want to win the work.

“This likely has to change at some point, with mining companies understanding the benefits that come with rolling out and applying these new technology ‘bells and whistles’.”

Procon has seen glimpses of an evolution – McVey references the introduction of battery-electric trucks at the Brucejack mine in British Columbia, Canada, where Procon is working, plus the use of autonomous load and haul equipment at the Kittilä operation in Finland (where Procon previously carried out shaft work) – but he said that today these were the exception, not the rule.

“Where we may also see more mining technology being adopted in the future is with these junior developers striving for higher ESG (environmental, social and governance) goals,” McVey said. “These clean, green metal developers – due to these ESG aims – are often backed by different types of investors that are less risk averse, or less tainted by the project capital and schedule blowouts experienced in previous commodity cycles.”

McVey’s appearance at HxGN LIVE Global 2023 this week is centred around finding out how the mining technology provider can help Procon’s workers and its clients underground, with safety- and productivity-led solutions coming high up the contract miner’s agenda.

“There is very rarely opposition to bringing in any initiatives that will enhance safety underground,” McVey said. “As a result, it is obvious to start here.”

When it comes to productivity, the company is interested in finding out how it could potentially deploy the Production Optimiser™ solution at certain sites. This advanced mining technology, developed by Minnovare, which Hexagon’s Mining division acquired last year, improves drill and blast efficiency and productivity in underground hard-rock mines by reducing collar deviation and, as a result, delivering superior setup accuracy at the collar. This increases the number of holes drilled to within tolerance at the toe, achieving optimum blasts and reducing dilution, according to Minnovare.

Production Optimiser has been deployed across the mining world, including at sites operated by contract miners Pit N Portal (owned by Emeco Group) and Barminco (part of Perenti).

In addition to productivity and safety, McVey is conscious the graduates coming through the pipeline that may enter the mining sector want to interact with the ‘new technology’ they have become accustomed to.

“They are used to playing computer games, interacting with apps and using technology on a daily basis,” he said. “If we are to encourage them to join the mining sector, we need to adopt some of this to increase our appeal.”

Here McVey mentioned the in-house development of an app, PSAFE, to log all incidents underground. This allows Procon employees to upload photos and reports in close to real time, to enhance reporting and analysis of these incidents.

“While a worker may be somewhat reluctant to write up a report after a long shift underground,” McVey said. “The app – which we are in the process of rolling out across all our sites – is enabling them to capture important information almost immediately, particularly ‘near-miss’ reporting which is critical in avoiding potential hazards and incidents.”

Again, this comes back to the change management piece that is so important to any new technology being adopted and used successfully.

McVey is hoping to learn from other mining companies and contractors at HxGN LIVE Global 2023 about how they are achieving ‘buy in’ from their employees for this new technology, to enhance Procon’s own change management processes and reduce the risk associated with applying new solutions at their sites.

Capital to carry out earthmoving and crushing services for FMG-tied Ivindo Iron in Gabon

Comminution of minerals, Explosives and blasting, Mineral project development, Mining services, Steel and iron ore, , , , , , , ,

Capital has announced the award of a new mining services contract with Ivindo Iron SA, majority-owned by Fortescue, at its namesake project in Gabon.

The earthmoving and crushing services contract has been announced at the same time as the company has extended its revolving credit facility.

Ivindo is in the northeast of Gabon and is one of the world’s largest undeveloped, high-grade haematite iron ore deposits with the potential to become a globally significant iron ore mine, according to Ivindo Iron, which is the operating entity for the Belinga project and a company that Fortescue has a 72% indirect interest in.

Earlier this year, Fortescue, through Ivindo Iron SA, signed the Mining Convention for the Belinga iron ore project in Gabon with the Gabonese Republic, paving the way for first mining to begin in the second half of 2023. Belinga is part of the wider Ivindo project.

The Capital contract has a term of up to five years and will generate approximately $30 million of revenue per year once fully operational, the London-listed company says. It involves both earthmoving and crushing services. Capital says it will use existing equipment and is in the process of purchasing circa-$15 million of additional equipment to service the contract.

Capital has already begun mobilising equipment to the site. This mining and crushing services contract is in addition to the three-year reverse circulation and diamond drilling services contract with Ivindo, announced earlier this year, where drilling recently commenced.

Peter Stokes, Chief Executive Officer, said: “We are thrilled to have been awarded the mining and crushing services contract at Ivindo. This is our second significant mining services contract and continues our strategy to diversify our revenue stream through an expanded service offering. We look forward to working closely with Ivindo Iron to expand our relationship from drilling services to mining and crushing services and ensure a rapid ramp up on this world-class deposit.”

Bellevue Gold appoints NRW Holdings Limited as open-pit mining contractor

Mineral project development, Mining services, Precious metals, , , , ,

Bellevue Gold says it has awarded the open-pit mining and tailings facility construction contract for its namesake mine in Western Australia to a subsidiary of NRW Holdings Limited.

The contract has a total value of circa-A$24 million ($16 million), which Bellevue says is in line with the pre-production capital expenditure forecast.

Mining at the Vanguard open pit is set to commence in late March-early April 2023 and will offer Bellevue the opportunity to generate early cashflow via a toll treating arrangement, it says. Once mined, waste material from Vanguard will form the basis of the tailings facility.

Vanguard is scheduled to provide approximately 10,000 oz of gold, which will be available for processing in mid-2023, well in advance of the completion of the Bellevue processing facility. The company is exploring toll treatment options with mining companies in the region and discussions remain ongoing.

As part of the company’s plan to accelerate underground development and bring on additional ore sources, commencement of the Tribune boxcut will also be brought forward to open up the Tribune mining front.

The addition of the Tribune ore source will increase the number of active working fronts to five in the first year of production, further de-risking the production outlook by providing another independent mining area. Strategically, this will also provide options for drilling the southern extensions of the orebody from underground and allow for a top-down mining method, which will provide the most efficient method of accessing the orebody, according to Bellevue Gold.

The Tribune boxcut is scheduled to commence immediately after completion of the Vanguard open pit. This will create a considerable saving on de-mobilisation and mobilisation costs of the open pit mining fleet.

Construction of the 1 Mt/y nameplate processing facility, being built by GR Engineering, continues to advance on schedule and budget, meanwhile. Bulk and detailed earthworks for the processing plant site have all been fully completed, structural concrete on all critical infrastructure foundations has also been completed with only very minor concrete works remaining. The erection of structural steel for the crushing circuit is well advanced, while both secondary and tertiary crushers are on site and ready for installation. Work is continuing on critical path carbon-in-leach tanks, with five now at full height and well ahead of schedule.

The first two delivery lots of the three for the ball mill and components have landed in Perth ready for transport to site with a third due to land this quarter, well ahead of critical path requirements.

Underground development remains on track with full ramp up of the third jumbo achieved during January 2023. All three jumbos maintained full shift production, achieving >300m per jumbo per month on mostly capital development. Ore development is underway at the Armand work area, while capital development continues to advance towards the Bellevue South/Viago, Deacon Main and Marceline production areas.

Grade control drilling activities are ongoing with two underground diamond rigs operating at the Armand, Marceline and Bellevue South areas. Recent drilling has continued to reinforce the geological model and further de-risk the resources ahead of mining. A third underground rig has commenced targeting resource/reserve growth mainly at the Deacon Lode.

Gowest engages Dumas for Bradshaw gold deposit restart

Mineral project development, Mining equipment, Mining services, Precious metals, , , , , , , ,

Gowest Gold has engaged Dumas Contracting Ltd, part of STRACON SA, in a four-year contract to assist with the restart of operations at the Bradshaw gold deposit, in Timmins, Ontario.

Dumas has already begun moving equipment to the site and is rapidly ramping up the mobilisation process, with both Gowest and Dumas targeting the resumption of underground work in April.

Dumas is a leading, full-service mining contractor specialising in mine construction and development, production mining and engineering. It is the primary contractor working at numerous mines throughout the Americas, including several in northern Ontario, Gowest said.

Currently, Bradshaw contains a NI 43‐101 indicated resource estimated at 2.1 Mt grading 6.19 g/t Au for 422,000 oz of gold, and an inferred resource of 3.6 Mt grading 6.47 g/t Au for 755,000 oz of gold. Further, based on the prefeasibility study produced by Stantec on June 9, 2015, Bradshaw contains probable reserves (using a 3 g/t Au cutoff and a gold price of $1,200/oz) of 1.8 Mt grading 4.82 g/t Au for 277,000 oz of gold.

Dan Gagnon, President and Chief Executive Officer of Gowest, said: “We are extremely pleased to have Dumas, with their extensive experience and focus on safety, as our long-term partner in restarting mining activities at Bradshaw. At the same time, now that we have the significant financial support of several of our major shareholders, we are also quickly advancing on several related fronts. This includes hiring personnel, mobilising equipment, ordering consumables and other preparations to ensure Bradshaw’s success as the next new gold mine in the Timmins camp.”

The first underground work will focus on the development and production of the initial bulk sample area (East Zone), the development of ventilation infrastructure, as well as the development of a ramp to expand and access new ore zones, Gowest says.

The company is also working towards finalising an agreement for milling Bradshaw’s ore, working with several parties to determine the optimal approach for handling the gold concentrate.

Macmahon confirms mining gig at Greenbushes lithium project

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

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

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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

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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.