Tag Archives: contract mining

EQ Resources enlists help of Golding for Mt Carbine tungsten development

EQ Resources Limited says it has executed an Early Engagement Contract with Golding Contractors Pty Ltd for the restart of the open-pit mining operations at the Mt Carbine Tungsten Mine, in Queensland, Australia.

EQR said it selected Golding, a subsidiary of NRW Holdings, as its preferred partner after working through a high-quality engagement and approval process.

“Early engagement was a preferred course for EQR as recent capital investment into the Mt Carbine processing plant is commissioning well and the company is receiving positive feedback from offtake partners for supply of our critical mineral product,” EQR’s Chief Executive Officer, Kevin MacNeill, said.

“EQR wants to deliver the highest quality outcome for the life of the Mt Carbine Mine for all stakeholders. Golding has strong credentials including specialist mine site rehabilitation works and environmental earthworks.

“Mt Carbine is ramping up treatment of its substantial low-grade surface resource as part of its joint venture with Cronimet with the next step in the development plan being the restart of its 100%-owned operations starting with the Andy White open pit, subject to the planned permit amendment. It’s a natural progression.”

Over the coming months, key areas of engagement and focus to finalise the mining contract and ensure smooth transition to mining operations will include:

  • Pit design: EQR is set to revise pit design in line with the recent drilling with Golding to maximise the strategic resource benefit and value for all stakeholders;
  • Equipment selection: In conjunction with the pit design under the contract, EQR and Golding will target strategic equipment selection to further optimise mining costs;
  • Contractor engagement: Golding will help manage the open-pit development through their in-house resources and network of preferred contractors to ensure compliance with Queensland mining legislation;
  • Stakeholder engagement: EQR and Golding will jointly engage local and strategic stakeholders regarding camp establishment, workshop establishment, personnel engagement, strategic regional suppliers and manufacturers; and
  • Timing: the open pit operations are forecast to begin during the first quarter of 2023.

EQ Resources, as a result of the acquisition of Mt Carbine Quarries in June 2019, now has 100% ownership of the two mining leases and surrounding exploration projects at the project. In a joint venture with Cronimet, the tungsten processing plant has been refurbished, commissioned and expanded to 300,000 t/y capacity.

The company is in the process of completing the required environmental amendments to allow the operation to process 300,000 t/y and eventually 1 Mt/y. Once the bulk test work is completed, a feasibility study will be completed for the design of the 1 Mt/y operation.

Thiess to return to Central Kalimantan with new mining, rehab and port management contract

Thiess says it has been awarded a life-of-mine contract to provide mining, rehabilitation and port management services by PT Kapuas Tunggal Persada and PT Tempirai Inti Energi in Central Kalimantan, Indonesia.

Thiess will operate the adjacent Kapuas Tunggal Persada (KTP) and Global Bara Mandiri (GBM) mines and will deliver turnkey operations, including mine design and planning, drill and blast, overburden removal, load and haul, asset maintenance and management, haul road maintenance, water management, rehabilitation and port operations, it said.

Commencing from July 2022, with revenue of A$1.7 billion ($1.2 billion) over eight years, this contract marks Thiess’ return to Central Kalimantan.

Thiess Executive Chair & CEO, Michael Wright, said: “We’re excited to work with our new client who shares the same passion for sustainable mining practices and outcomes as we do.

“This new contract is an opportunity to continue our record of delivering excellence for our clients in Indonesia, with a clear focus on safe, responsible production and industry leading rehabilitation.”

Thiess Executive General Manager Asia, Cluny Randell, added: “This contract is recognition of our team’s ability to deliver long-term performance and productivity gains for clients.

“We look forward to working together with our client and the local communities to deliver long-term social, environmental and economic value.”

A day earlier, Thiess confirmed that its mining services contract at Peak Downs Mine in Queensland, Australia, had been extended for another five years by BHP Mitsubishi Alliance (BMA).

Located southeast of Moranbah, Peak Downs is an open-pit mine producing high-quality steelmaking coal and is one of Australia’s largest mines by recoverable coal reserves.

Under the contract, Thiess will continue to operate and maintain mining equipment to move additional overburden at the mine and support BMA’s production requirements over the next five years. Starting from July 2022, revenue to Thiess is worth over A$700 million.

Barminco to help Evolution go underground at Cowal gold mine

Perenti’s Barminco underground mining business has been awarded the contract for all underground development and production works for Evolution Mining’s Cowal Underground project in New South Wales, Australia.

Barminco, a leading global underground mining services business, is currently developing an exploration decline and conducting diamond drilling services at Cowal.

Last year, the board and regulators approved the development of the Cowal Underground Mine, which is set to provide a higher-grade ore source that will be blended with the current E42 open pit and stockpile ore. The development is part of the group’s goal of Cowal producing 350,000 oz/y of low-cost gold and extending the operation’s mine life.

Perenti said the award of this new contract significantly expands Barminco’s scope at the site to include the development of a second portal, all underground development and production works, and associated underground mining services required to support the continued mill feed of underground ore.

Mark Norwell, Managing Director and CEO of Perenti, said the award of the Cowal contract aligns with Perenti’s strategy of increasing its earnings in top-tier regions and with top-tier clients.

“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly A$520 million ($373 million) with an initial term of four years, from a contract commencement date in early July 2022,” Norwell said.

“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.”

Norwell explained that, between now and the end of Perenti’s 2022 financial year, the company will commence investing the capital required for this project with revenues and earnings ramping up in the 2023 financial year and beyond.

“The project represents a significant improvement to our Australian underground earnings base and will generate strong project cash flows and returns in support of our capital allocation and investment,” he added.

Develop to bolster contract mining capacity with Premium Group acquisition

As Develop starts underground work at Bellevue Gold’s Bellevue Mine in Western Australia, it is bolstering its contract mining resources through a planned acquisition of Premium Group.

The Premium Group is a well-established provider of specialist mining personnel and equipment to the underground mining industry, according to Develop.

The two parties have entered into a letter of intent (LOI) pursuant to which Develop has agreed to acquire Premium Mining & Civil Pty Ltd and Premium Mining Personnel Pty Ltd (together, the Premium Group) for total consideration of A$7.46 ($5.3 million) million less net debt, to be satisfied by A$300,000 in cash and the balance in Develop shares.

Subject to shareholder and regulatory approvals, Develop said the acquisition would bolster its capabilities in providing underground expertise and equipment, while helping it achieve its goals as a mine owner/developer and “mining services business partner”.

Meanwhile at Bellevue Gold the company said it had started underground work at the Bellevue Mine, in line with the terms of the agreement signed last month (pictured).

Under the contract, Develop’s Underground Services division will undertake construction, development and production activities at the underground mine as part of an agreement valued at circa-A$400 million.

On this milestone, Develop Managing Director, Bill Beament, said: “We have established a world-class team of highly experienced underground mining specialists. Our team includes leading managers in their respective areas and an enviable group of underground mining and maintenance personnel, backed up by the latest mobile equipment.

“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody.”

Last week, Develop announced it had completed its acquisition of the Woodlawn zinc-copper mine in New South Wales, bringing with it an underground mine and new processing plant/site infrastructure.

MACA receives contract extension from Regis Resources at Duketon North

MACA has announced the extension of its mining services contract with Regis Resources Ltd at the Duketon North Operations (DNO) in Western Australia, having provided mining services at the project since 2010.

The service offering includes a dedicated workforce of 258 personnel delivering drill & blast, load & haul, plant maintenance and technical services across the Regis open pits in the area.

This extension is expected to generate up to A$50 million ($36 million) per year in revenue for MACA and will utilise the contract miner’s existing fleet on site. DNO continues to run alongside the Duketon South Operations (DSO).

Both parties have signalled their intention to explore conversion of both the DSO and DNO contracts into an amalgamated partnership-style life of mine alliance arrangement post June 2023, MACA said. The asset produced 356,000 oz of gold in the 2021 financial year.

MACA’s work in hand position including this contract is in excess of A$2.6 billion at April 2022.

MACA CEO, Mike Sutton, said: “MACA is delighted to continue its long-standing relationship with Regis at the Duketon North Operation. Our team has a long-standing relationship with Regis and MACA is proud to be an ongoing part of this operation. This project will be undertaken utilising existing fleet and contributes to MACA’s secured mining work in hand in the Goldfields region, ensuring future work continues to consist of a balanced portfolio of commodities.”

Thiess to trial Plotlogic’s OreSense tech at Anthill copper project

Thiess says it is taking another step to be at the forefront of sustainable mining with a technology trial involving Plotlogic’s OreSense solution at the Anthill copper project in Central Queensland, Australia.

With the promise of reduced environmental impact, improved safety and increased productivity the OreSense technology scans rock to distinguish high-grade resources from waste, Thiess explains. The technology provides real-time information, eliminating the need for a week or more waiting for testing results.

The technology is also expected to create environmental benefits through lower fuel usage and machinery consumables and a more optimised heap leaching process, according to Thiess.

Group Executive Growth & Strategy, Abdul Jarrah, said the trial aligned with Thiess’ commitment to use technology to drive sustainable improvements for our clients.

“Investing in technology such as OreSense further enhances our inhouse capability and allows us to offer our clients greater value across the safety, cost, productivity and environmental spectrum,” Jarrah said. “Importantly, our focus on innovation will support our clients to achieve their environmental goals as Thiess continues to establish itself as a leader in sustainable mining practices.”

Group Manager, Geology and Geotechnical, Donna Sheehy, said applications for the technology were far-reaching.

“The machine takes around three minutes to scan a wall or mine face area of 15 m by 50 m – if the trial proves successful there is potential to scan dig faces and stockpiles to determine grade,” she said.

“From machine learning we can use OreSense to give us real time assay – saving lengthy lab processing wait times.

“This allows us to increase the average grade of material fed to the heap leaching process which means we haul less waste, reducing our use of fuel and machinery consumables.”

The trial, set to begin at the Anthill copper project, owned by Austral Resources, on April 27, will run for around four weeks.

Austral says CSA Global completed an updated mining study in April 2021 on Anthill resulting in a JORC 2012 compliant ore reserve of 5.1 Mt grading 0.94% Cu containing 47,700 t of copper. This study outlined that ore will be mined from two pits over a 40-month period. Total recovered copper from the heap leach process will be 40,400 t over a 44-month period.

African Star appoints new mining contractor at Oena diamond mine

Southstone Minerals Ltd’s 43% owned subsidiary, African Star Minerals, has entered into a contract mining and diamond recovery agreement with Oryx Mining for the Oena diamond mine, in South Africa.

Oryx, at its own cost and expense, will provide and maintain all the plant and equipment as required to perform the mining services, Southstone says.

The diamonds produced by Oryx will be sold via a designated tender facility in South Africa and 80% of the gross income of net diamond sales, less commission, will be paid to Oryx for the duration of the 36-month agreement, the company explained. For any individual stones recovered with a gross selling price, less commission, of greater that ZAR10 million ($664,529) Oryx will be paid 70% of the gross income.

Oryx specialises in the processing of alluvial diamond deposits in South Africa and the operation is currently targeting to operate 24 h/d, six days a week with total headfeed capacity of 200 t/h. Equipment and road building is ongoing, and it is expected production will commence in May 2022.

The contract award follows the conclusion of mining by another contractor, Bluedust 7 Propriety Ltd.

Oena consists of an 8,800-ha mining right located along the Orange River in a well-established alluvial diamond-mining province that produces high quality and large sized diamonds.

Thiess to deliver mine planning and engineering services to Tata Steel

Thiess says it has entered into a business cooperation agreement to deliver mine planning and engineering services to Tata Steel.

Under the agreement, the contract miner will also collaborate with Tata Steel to deliver competitive integrated business solutions to the global mining industry.

Tata Steel is one of the world’s most geographically diversified steel producers, providing fully integrated steel operations – from mining to the manufacturing and marketing of finished products.

Thiess Executive Chairman & CEO, Michael Wright, said: “With a shared focus on value creation and sustainability, this agreement is the foundation for a strong partnership and complements our efforts to diversify our services and accelerate our growth across commodities and geographies.”

Tata Steel Vice President (Raw Materials), D.B Sundara Raman, said: “We have been in the mining business for more than a century providing various exploration and mine planning services to our captive mines for sustainable mining. We are pleased to start offering our mine technical services commercially through Tata Steel Industrial Consulting to the mining industry outside Tata Steel.

“This agreement with Thiess will complement our capabilities and capacities to raise the standards of such services in India in particular and internationally in general for more scientific and sustainable mine development.”

Tata Steel will work closely with the Thiess India Engineering Hub, which provides technical support to Thiess’ global operations, including geotechnical and mine engineering, technology service delivery, business process automation and learning & development services.

Thiess wins three-year extension at Harum Energy’s Mahakam Sumber Jaya mine

Thiess says it has been awarded a three-year contract renewal to provide mining services at Harum Energy’s Mahakam Sumber Jaya coal mine in East Kalimantan, Indonesia.

Under the contract extension, commencing from April 1, 2023, Thiess will continue providing mine design and planning, drill and blast, overburden removal, load and haul, asset maintenance and management, rehabilitation, water management and haul road maintenance services.

Thiess Executive Chairman & CEO, Michael Wright, said: “Thiess is proud to continue its longstanding relationship with Harum Energy at MSJ, where we’ve worked with our client to deliver sustainable mining services since the mine was developed in 2008.

“This contract enables us to continue our record of delivering certainty for our client, with a clear focus on safe and sustainable production and rehabilitation.”

Thiess Executive General Manager – Asia, Cluny Randell, added: “This contract renewal is great recognition of our team’s ability to partner and grow together with our client and deliver long-term performance and productivity gains for Harum Energy.

“We look forward to continuing our strong relationship with our client and the community of Kutai Kartanegara, where we’ve worked together during COVID-19 to provide vaccinations for the local communities.”

Thiess to deliver mining services to Mount Holland lithium mine JV

Thiess says it has been awarded a four-year contract by Covalent Lithium to deliver mining services at the Mount Holland lithium mine in Western Australia.

Covalent Lithium is a joint venture between Wesfarmers and Sociedad Quimica y Minera de Chile (SQM), one of the world’s largest lithium miners.

Under the contract, Thiess will deliver drill and blast services, mining of overburden and ore, and equipment maintenance with a strong focus on community development and environmental protection, it said. Thiess commenced mobilisation and early mining operations in January.

Thiess Executive Chairman and CEO, Michael Wright, said: “We are very pleased to be selected by Covalent to undertake mining at the Mount Holland mine. This award recognises our team’s ability to deliver sustainable mining solutions and deliver enduring value for our clients across diverse commodities.

“We look forward to working with Covalent Lithium to safely position their operations for optimal efficiency, productivity and cost performance, and contribute strongly to a clean energy future.”

The Mount Holland Mine produces lithium-bearing ore that is concentrated and refined to produce lithium hydroxide, a mineral used to enable electric vehicles and battery-based energy storage systems. EPC contractor, Primero, is currently constructing the Mt Holland concentrator to process ‘run of mine’ ore at a rate of circa-2 Mt/y and produce an output of circa-400,000 t/y of spodumene concentrate to feed the company’s integrated lithium hydroxide conversion refinery situated in Kwinana.