Tag Archives: contract mining

Thiess in leading position to take over fellow contract miner MACA

Base metals, Energy minerals, Mining equipment, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron ore, , , ,

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.

Thiess named preferred mining services provider for Rex’s Hillside copper-gold project

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

Thiess says it has been named preferred mining services provider for the Hillside copper-gold project on the Yorke Peninsula in South Australia.

Rex Minerals Ltd, owner of the project, has notified Thiess of its intention to enter into exclusive negotiations to finalise the terms of a five-year mining contract.

Subject to a contract being concluded, which Rex says is expected to occur by the end of the year, Thiess is expected to deliver mining services and operate and maintain mining fleets to support the greenfield copper operation.

Rex says it plans to mine the open-pit orebody in five stages with selective ore mining and stockpiling. Average total rock movement from the open pit is expected to be 60 Mt/y.

Thiess, Rex says, has shown genuine willingness to join the company and drive down project costs, including:

  • Developing appropriate and flexible mining equipment options;
  • The early integration of personnel to assist with the project planning including optimal mine infrastructure area (MIA) layouts, and;
  • Use of Thiess’ proven HSE systems to further de-risk the project with a planned commencement in early 2023.

Thiess Executive Chair & CEO, Michael Wright, said: “We are delighted to be taking the next steps towards a partnership with Rex Minerals on the Hillside project. In line with our strategy to diversify our commodities and services, we are positioning Thiess at the forefront of sustainable mining. We share Rex Minerals’ belief in the significant contribution that metals make to a renewable future, and to the local communities and broader economy.”

Thiess Executive General Manager for Australia West, Spencer Jose, said: “We look forward to collaborating with Rex Minerals, the Narungga People, local businesses and the community to deliver safe, strong operational performance and sustainable outcomes for all of our people and stakeholders.”

Mining services are expected to commence in July 2023, subject to finalisation of contracts.

RCT to equip Develop with autonomous loading options at Bellevue gold project

Automation, Communications in mining, IoT, Mining equipment, Mining services, Precious metals, , , , , , , , , ,

RCT says it is partnering with mining services company Develop to deploy state-of-the-art digital automation technology at its recently-awarded Bellevue gold operation in Western Australia.

RCT’s digital ControlMaster® solution will empower Develop with the best autonomous technology to safely manage its underground mobile equipment fleet and make consistent production gains, according to the company.

Develop was awarded work valued at around A$400 million ($280 million) at Bellevue Gold’s Bellevue Gold Mine in Western Australia back in April. The contract, which covers a period of almost four years, provides for Develop’s Underground Services division to undertake construction, development and production activities at the underground mine.

The autonomous solutions are in line with Develop’s innovative business ethos of combining impressive technology with experienced professionals to transform operations into mining powerhouses, RCT said. This will see operators use the ControlMaster Automation Centre and manage a Sandvik LH517i underground loader within the underground complex.

In the future the company will roll out additional autonomous Sandvik LH517i loaders in line with its evolving mining fleet requirements as it moves into production activities.

To accommodate a larger autonomous fleet, Develop will harness the power of ControlMaster Multi-Machine Select (MMS) and Multi-Machine Control (MMC) capabilities into its Automation Centre, RCT says.

These features mean machine operators can switch between underground loaders located throughout the mine and subsequently take control of each machine.

Develop will further support the Bellevue fleet by rolling out RCT Connect, which, RCT says, is the only available mining communications infrastructure designed to accommodate autonomous mining equipment.

The specialised Wi-Fi network will ensure consistent communications and very low machine latency between the machine fleet and Automation Centre, according to RCT.

RCT’s Kalgoorlie Branch Manager, Rick Radcliffe, said the work at Bellevue will provide a strong foundation on which to grow a business relationship between the two companies.

“We are very pleased to be Develop’s automation technology supplier and provide cutting-edge solutions and a very high level of service from the beginning at Bellevue,” he said. “We will be there alongside Develop as they kick off autonomous machine activities and we are confident that our technology will deliver results every shift.

“RCT proudly has 50 years of experience supporting Goldfield’s mining companies and we look forward to applying all our knowledge to whatever situation Develop faces in the future.”

Thiess targets WA hard-rock mining sector expansion with MACA offer

Automation, Base metals, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron ore, , , , , , , , ,

Thiess looks like gaining further market share in the key hard-rock mining market of Western Australia after having a bid accepted for fellow mining contractor MACA.

The all-cash offer to acquire 100% of the shares of the company at A$1.0251/share represents a 42.2% premium to the MACA one month volume weighted average price as of July 25, 2022.

MACA’s Board has unanimously recommended that its shareholders accept the offer in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the offer is favourable to MACA shareholders.

Thiess says 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 the 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 Australian 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.

Michael Wright, Executive Chair and Chief Executive Officer of Thiess, said: “We believe our offer is an attractive opportunity for MACA shareholders as it provides certainty of cash, a strong premium and an ability to achieve liquidity for their entire MACA shareholding. We are pleased to have the support of the MACA Board for our Offer.

“The proposed acquisition of MACA is an important part of Thiess’ strategy to diversify its operations across commodities, services and geographies. Thiess has a high regard for MACA’s service quality, and we believe our industry experience positions us well to enhance MACA’s value proposition to clients and employees. We recognise and intend to maintain and grow MACA’s strong brand and presence in the Western Australian market. Thiess also looks forward to supporting MACA to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.”

National Group’s contract mining arm awarded Yancoal Moolarben work

Coal technology, Mine operation news, Mining equipment, Mining services, , , , , ,

National Group says its contract mining operation, National Mining Services, is to supply services to Yancoal’s Moolarben mine in the Western Coalfields of New South Wales, Australia.

As part of a three-year mining services contract, with an option to extend for a further two years, National Mining Services will provide works that include the safe pre-stripping of a minimum of 15 million bank cubic metres (Mbcm) of overburden each year at Moolarben.

National Mining Services will use National Group’s ultra-class mining equipment on the contract, including Liebherr R9800 excavators, Liebherr T282 dump trucks and other ancillary equipment.

“This is a significant contract in National Group’s history,” National Group founder and Managing Director, Mark Ackroyd, said. “We are grateful for Yancoal’s ongoing support for National Group and for the opportunity to contribute to the world-class Moolarben open-cut coal mine. National Group looks forward to helping Yancoal achieve its goals at Moolarben.”

The Moolarben contract continues a strong period of growth for National Group in the coal industry. In January 2022, National Group extended an equipment contract for Anglo American Australia on its two expanding open-pit coal mines at Capcoal in the Bowen Basin in Central Queensland (Lake Lindsay and Oak Park).

“National Group is proud to be part of the Australian coal industry,” Ackroyd said. “We intend to expand our long-term presence in the coal sector, help more companies export high-quality Australian coal, and create jobs for regional communities.”

The Moolarben contract expands National Group’s footprint in NSW. In 2021, Newcrest awarded National Group a surface-mining contract at its Cadia gold mine in central NSW, where it is supplying Caterpillar 994K and 988K large wheel loaders, Caterpillar 793 dump trucks and the Hitachi ZX890 excavator.

“National Group continues to grow and diversify its NSW operations,” Ackroyd said. “We have significant long-term contracts in coal and gold, and a strong pipeline of opportunities for sustained growth in NSW. National Group has created well over 100 regional jobs in NSW in the past two years. We intend to create plenty more.”

Ackroyd says the Moolarben contract diversifies National Group in others ways.

“Our company is best known as a leading supplier of heavy-earthmoving equipment,” he said. “The Moolarben contract expands our work in mining services and further strengthens National Group’s unique end-to-end offering and its operational diversification.”

National Mining Services is well-positioned to take on more work in mining services by providing mining and infrastructure services to National Group’s major open-pit mining clients, it said. “The business has extensive capabilities in large-scale mining projects, meeting production requirements in excess of three Mbcm per month of waste and coal.”

Ackroyd says National Mining Services’ position within the National Group is a competitive advantage.

“Through National Group, National Mining Services has access to one of the country’s most advanced mining fleets, a large supply of experienced labour and access to capital,” he said. “Most of all, National Mining Services has a great team.”

Byrnecut progressing to ore production targets at B2Gold’s Wolfshag Underground mine

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The on-boarding of Byrnecut Offshore at B2Gold’s Otjikoto Mine has resulted in development rates in the Wolfshag Underground mine recovering, the Canada-based company said in its recently-released June quarter results.

Otjikoto produced 31,417 oz of gold in this quarter of 2022, 2,027 oz below budget, with the lower-than-budgeted gold production due to a slower than planned ramp-up in development of Wolfshag.

The company recently appointed Byrnecut as its new underground mining contractor as part of a $112 million contract. The agreement consists of both development and production, including a total of 10 km of development and a total material movement of 3.2 Mt.

The underground fleet at Wolfshag is mainly from Sandvik Mining & Rock Solutions and currently consists of one DD422i DC jumbo, one DD422i jumbo, two LH517i loaders, three TH551 trucks and a DL432i production drill rig.

B2Gold said development rates in the Wolfshag Underground mine recovered in the recent three-month period, with development ore now expected in the September quarter and stope ore production commencing in the December quarter.

“As a result of this change in ore production timing, the 2022 annual production guidance range for Otjikoto has been revised to between 165,000 and 175,000 oz of gold (original guidance range was between 175,000 and 185,000 oz of gold),” the company said.

As expected, compared with the June quarter of 2021, gold production was 17% higher due to significant waste stripping operations at both the Wolfshag and Otjikoto pits in the first half of 2021.

The initial underground mineral reserve estimate for the down-plunge extension of the Wolfshag deposit includes 210,000 oz of gold in 1.2 Mt of ore at 5.57 g/t Au.

EQ Resources enlists help of Golding for Mt Carbine tungsten development

Mineral project development, Mining services, Steel and iron ore, , , , , , , , ,

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

Coal technology, Mine operation news, Mining services, , , , , , , , , ,

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

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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

Mining equipment, Mining services, Precious metals, , , , ,

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.