Tag Archives: contract mining

Redpath on board with Red 5’s Darlot, King of the Hills plan

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Red 5 Ltd has awarded a mine development contract for its Darlot gold mine in Western Australia to Redpath Australia.

The contract, which has been awarded following the completion of a competitive tender process, is for 12 months with an option to extend at six-monthly intervals. The initial contract value is A$13 million ($9 million) and will be funded by cash flow from the Darlot operations.

The Redpath mining team and equipment have mobilised at site and underground mine development commenced on October 1, 2021.

Consistent with the revised Darlot mine plan and King of the Hills processing hub strategy announced on August 2, 2021 – which will see Darlot ore processed at the King of the Hills processing plant – Redpath will be undertaking 3 km of rapid underground mine development at Darlot, separate from the mining activities being conducted by Red 5’s existing mining teams. This will provide access to new mine areas in Burswood, Pedersen, Middle Waters South and Thompson that underpin Darlot’s current mine plan to June 2023, Red 5 says.

The option to extend the mine development contract would open further additional mining areas within Darlot’s 1.2 Moz underground mineral resource, the company says.

The recently announced transition strategy for Darlot will see it become an underground satellite mine to the King of the Hills Processing Hub, with the new processing plant expected to produce first gold in the June Quarter 2022. It will also see the processing capacity rise from the previously envisaged 4 Mt/y (for solely King of the Hills ore) to 4.7 Mt/y.

The investment in mine development at Darlot is a key aspect of the transition strategy at Darlot, reducing dependence on remnant mining and opening up new mine areas, the company says.

“The lower cost base of the King of the Hills processing hub has the potential to extend the Darlot underground mine life for several years,” it added.

Macmahon Holdings finalises Calidus Warrawoona gold project contract

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Macmahon Holdings Ltd says it has now finalised a mining services contract with Calidus Resources Ltd for the Warrawoona gold project in Western Australia.

The news follows Macmahon’s selection as the preferred contractor for the project in 2020.

This contract involves the development of a new open-pit mine in the Pilbara region, with the scope of work for Macmahon expected to include all open-pit mining activities until December 2026. Macmahon anticipates the contract will generate revenue of approximately A$210 million ($154 million).

This contract is in addition to the early-stage civil works Macmahon is currently undertaking on site with 65 personnel. The company expects the main mining equipment to arrive on site in the March quarter of 2022, with the project to eventually employ around 120 Macmahon personnel.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to finalise this mining contract with Calidus Resources for its Warrawoona gold project, which follows on from the civil work we are currently undertaking on site. This contract will add approximately A$210 million to our order book and is a welcome addition to our growing portfolio of Western Australian gold projects. We have built a strong relationship with the Calidus team since we commenced on site earlier this year and look forward to developing this project with them.”

Redpath Australia wins cut and flit contract at Whitehaven’s Narrabri operations

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Redpath Australia says it has been awarded the Cut and Flit Development Contract for Whitehaven Coal at its Narrabri operations in New South Wales, Australia.

Situated around 28 km southeast of Narrabri on the North West Slopes in New South Wales, the Narrabri operations mine site is one of Australia’s most productive underground coal mines. Whitehaven is the majority owner – with a 77.5% interest – and the operation has approval to extract up to 11 Mt/y of coal from the longwall operations.

Mark Donghi, General Manager – Mechanical Excavation for Redpath, says the project will employ around 55 personnel and the aim is to start recruiting immediately.

Redpath Australia’s Managing Director, Gavin Ramage, said the company is looking forward to working closely with Narrabri operations in delivering the project safely and efficiently.

The company said: “As a market leader in providing advanced development solutions to mine owners across Australia and around the globe, Redpath is well placed to deliver this project for Narrabri Coal Operations.”

Volvo ADTs, excavators hit the ground running at Weda Bay nickel project

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At the Weda Bay nickel project in Central Halmahera, Indonesia, a fleet of Volvo articulated haulers and excavators are, the mining OEM says, offering excellent stability on soft ground for safety-conscious mining service contractor Samudera Mulia Abadi, while also delivering high uptime, productivity and fuel efficiency.

Samudera Mulia Abadi, headquartered in Manado, North Sulawesi, is one of Indonesia’s leading service contractors for the mining of gold and other minerals. The privately-owned company specialises in mine preparation – including infrastructure and site establishment, earthwork and land clearing, and project management – as well as excavation, loading and hauling in open-pit mines, and on- and off-road haulage.

The company’s latest endeavour is a five-year contract on a $30 billion project to extract nickel ore and transport it to the smelter at the Weda Bay nickel project in Central Halmahera. The main challenge here is the soft terrain in the pit and on the hauling roads.

“We try to remain efficient in carrying out any work in order to achieve the best return and there is no compromise on safety,” Willson Sastroamijoyo, Commissioner PT Samudera Mulia Abadi, says. “Every line of work must prioritise safety. Given the pit and hauling conditions, Volvo articulated haulers are the perfect choice as our production unit. Volvo excavators are also suitable to handle ore material like this.”

When the project began in August 2020, Samudera Mulia Abadi commissioned a fleet of 17 Volvo articulated haulers (six A40G and 11 A60H models) and 12 Volvo crawler excavators (two EC200D, five EC210D, two EC300DL and three EC480DL models), which will remain on site for as long as possible.

On delivery, dealer Indotruck Utama provided training to Samudera Mulia Abadi’s staff to promote safe operation and help them get the most value out of the machines. Since then, the dealer has continued to carry out refresher training as operator behaviour and safety procedure on site play an important part in increasing safety in eastern Indonesia.

The A60H is the largest Volvo articulated hauler with a 33.6 cu.m body volume and 55,000 kg payload capacity, while the A40G is the third largest, offering a 24 cu.m body volume and 39,000 kg payload capacity. On both models, the matched drivetrain, automatic drive combinations including 100% differential locks, all-terrain bogie, hydro-mechanical steering and active suspension ensure excellent traction and operator comfort on the most difficult terrain.

They are also designed for extreme durability and high fuel efficiency so that operators can reliably move more tonnes per hour at a lower cost, according to Volvo. The Hill Assist, Dump Support System and Rear View Camera, meanwhile, help to minimise the safety risk on site.

The Volvo crawler excavators, ranging from 20 t to 50 t in capacity, likewise offer excellent stability, fast cycle times and low fuel consumption, promoting safe, productive and profitable operation, Volvo said

“Our operators are happy to work with Volvo machines because they are comfortable and user-friendly. The quality, durability and comfort of the products have benefited us in many ways,” Sastroamijoyo says.

Volvo CE says: “Samudera Mulia Abadi works the machines hard – typically up to 22 h/d across two shifts, seven days a week – so machine availability is closely linked with productivity and profitability. It is crucial that they are durable enough to withstand such high utilisation and have simple service and maintenance requirements fulfilled by a responsive and reliable dealer. By always being ready to work, the machines help Samudera Mulia Abadi achieve its tonnes per hour and cost per tonne production targets.”

Because of this, the company has also relied on machinery from Volvo Construction Equipment on several other of its contracts over the last five years, including the Gag Island nickel project in West Papua and the Toka Tindung gold mine project in North Sulawesi.

At these two sites, Samudera Mulia Abadi operates a total of 116 Volvo machines, including 50 A40Fs, 17 A40Gs, five A45Gs and three A60H articulated haulers; one EC200D, eight EC210Bs, five EC210Ds, 12 EC350DLs, six EC480DLs, six EC950ELs crawler excavators; and one SD110 compactor.

“The overall machine performance is good and physical availability is above the target,” Sastroamijoyo says. “Of course, we are aware that the machines experience some occasional downtime, even if they are the toughest. The important thing is our how the dealer responds when these unfortunate situations occur.

“We have a good working relationship with our dealer Indotruck Utama. Their skilled service team speeds up the servicing time, while the consigned parts on site ensure high parts availability. Overall, the performance of the machines and the quality of product support increase our profitability.”

Otso Gold names Hartikainen as contract miner ahead of restart

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Otso Gold Corp has executed a mining contract with E Hartikainen Oy, one of Finland’s largest mining and construction contractors.

The agreement is for the provision of all mining services at the Otso gold mine, in central Finland, for a term of three years.

As part of the agreement, machinery for mining has begun to be mobilised to site in advance of the start of mining next month.

Brian Wesson stated “The company is pleased to have partnered with Hartikainen at the Otso Gold Mine and looks forward to working together. The execution of the mining contract is an important milestone towards the start of production next month.”

Arto Hartikainen, Managing Director of Hartikainen, said: “We are very happy with Otso Gold Mine’s partnership and we are starting preparation work right away. Safety, quality and productivity will play a key role in the development of our services at the Otso Gold Mine’.

Back in March 2019, Nordic Gold (the previous owners of the mine) terminated its agreement with mining contractor Tallqvist Oy and decided to place the Laiva (now Otso) gold mine on care and maintenance, months after pouring first gold.

In July, following an $11.155  million financing, Otso Gold started its move to production, announcing plans to get back up and running at the 2 Mt/y nameplate operation in the September quarter.

PT Freeport Indonesia, Redpath achieve drawbell milestone at Grasberg Block Cave

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Freeport Indonesia’s (PTFI) Grasberg Block Cave (GBC) operations in Indonesia, together with strong Redpath support, have successfully attained the milestone of constructing and blasting the 300th drawbell.

The milestone, which occurred on June 30, 2021, came in a record time of only 2.5 years from the production start date, according to Redpath.

The same production crews also surpassed the 100,000 t/d mark, by reaching a record of 107,000 t/d on June 26, 2021. This record surpassed the previous site record of 101,000 t/d.

In Redpath’s Advance magazine, I Made Pasek, General Superintendent, GBC Operations, said COVID-19 had not prevented the GBC project from becoming the world’s largest block cave mine.

“In addition to delivering safe and effective development meters, the GBC1 development team has reached the significant milestone of completing the excavation of the GVD 9 Fan Chamber (Grasberg Ventilation Decline), the fifth such chamber of the GBC ventilation system,” Pasek said when reviewing progress during the June quarter. Each of these chambers is equipped with a 5,500 kW fan able to produce 1.7 million cu.ft (48,139 cu.m) of air per minute.

The underground production levels of the GBC mine requires not two, but three crusher chambers to be excavated and constructed to deliver the targeted quantity of 160,000 t/d of ore. PT Redpath Indonesia’s GBC 2 crew are leading with the development of the #603 crusher chamber while concurrently initiating access to the #604 conveyor drives, according to Pasek.

GBC’s construction, MRC and MCM teams were challenged with the realignment of a key section of rail installation for the #602 unloading arrival station during the June quarter. This particular section of rail needed to be disassembled and raised in order to enable ore trains of 11 rail cars to enter the #602 unloading station as per design.

“Working seamlessly with the client’s engineering, planning and rail teams, the undertaking was safely and effectively accomplished ahead of schedule,” Pasek said. “The work itself consisted of drilling 1,000-plus holes for track support, epoxying track bolts into the existing concrete base, followed by meticulous forming works under each track base plate. The work required a high level of accuracy with tight tolerances to ensure rail alignment and smooth travel, in order to meet the established productivity rates.”

Pasek added: “These significant achievements would not be possible without a strong and deeply rooted safety culture in the GBC operations, paving the way for even greater successes in the future.”

Nouveau Monde Graphite turns to Metso Outotec for key Matawinie processing equipment

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Nouveau Monde Graphite has launched civil construction works at its flagship Matawinie graphite mining project in Saint-Michel-des-Saints, Québec, having steadily advanced detailed engineering and engaged in the procurement of key service providers, long-lead equipment and contractors to deliver the project, billed as a “zero-emission mine”, in Québec by the end of 2023.

One of these service providers has been confirmed as Metso Outotec, which has been engaged to supply key mineral processing equipment required for the Matawinie concentrator plant for high-purity graphite flake production.

The agreement with the OEM will support the development of design and integration efficiencies through process equipment chain optimisation objectives, NMG said. It also seeks to promote planning efforts, optimisation of the project cost curve and support the company during the construction, commissioning and operation phases.

“This agreement complements Nouveau Monde’s de-risking strategy and helps ensure a rapid progression of final design elements and construction of the ore processing facility,” the company added.

Following the governmental authorisation of the project in February, Nouveau Monde executed its phased program to initiate preliminary works in March. For the site preparation of the mine industrial platform and the access road connecting the project to the local highway, tree clearing was completed before the nesting season to limit impacts to avifauna.

To protect the environment and the community’s well-being, Nouveau Monde has developed an environmental surveillance and monitoring program to oversee the construction, operation and closure activities of the Matawinie project. Nouveau Monde has hired an environmental coordinator to support construction and environmental monitoring activities on-site and enlisted third-party biologists to conduct inspections for the presence of vulnerable species.

Nouveau Monde is also delivering on its commitment to maximise local opportunities and support service providers by engaging with Atikamekw, local and regional contractors and service providers via dedicated activities related to its construction procurement strategy, the associated business opportunities, as well as health, environment and safety requirements for bidding.

The company has retained mining contractor L Fournier & Fils to build the access road connecting the main Highway 131 to Matawinie’s industrial platform. Works for the 7.8-km access road began in July as part of the company’s 30-month construction and commissioning timeline. Construction of the access road is scheduled to be completed in September 2021 to facilitate subsequent civil works and on-site activities.

Eric Desaulniers, President and CEO of Nouveau Monde, said: “This first milestone kick starts the construction of the Matawinie mine, as we strive to build the high-quality, ethical and sustainable project that can cater to the growing electric vehicle and energy storage markets. We have spent the past months refining our execution plan to carry out engineering, procurement and construction activities safely and with a focus on cost and timeline efficiency. I am confident in the expertise of the technical team that we have assembled, coupled with the support of Tier 1 service providers such as Metso Outotec, L Fournier & Fils and many local contractors, to deliver on our commitments of safety, responsible practices and excellence.”

In the 2018 definitive feasibility study on Matawinie, the mine, scheduled to produce 100,000 t/y of graphite concentrate, was expected to use an electric in-pit mobile crusher and overland conveyor system to feed crushed material to the plant.

GHH India’s contract mining arm wins plaudits for work with Hindustan Zinc

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GHH India’s recently established contract mining arm, GHH Bumi Mining Service, has notched up its first significant award, being recognised by Vedanta Group/Hindustan Zinc Ltd (HZL) for the work it is doing at the Zawar Mala zinc-lead underground mine in Rajasthan, India.

In a recent online event, GHH Bumi Mining Service, established late last year, was named as the recipient of the Best Performing Business Partner by the companies.

The award winner was chosen out of all business partners and recognised a job well done, GHH said.

Over the last six months, GHH Bumi has been carrying out contract mining at Zawar Mala, and was presented the award, GHH says, based on excellent performance involving all contract mining activities, including those related to safety, production and asset optimisation.

Since January, GHH BUMI has been responsible for production and mine development with more than 350 employees at Zawar Mala. For this purpose, the company has access to more than 20 LHDs, dump trucks and drilling rigs from the GHH Group.

Dr Jan Petzold, CEO of GHH Group, said: “With this award, we as GHH Group see ourselves confirmed in our efforts as a reliable business partner for HZL – a cooperation that started almost four years ago with the supply of mining machinery and has resulted in being awarded as mining contractor and OEM.

“This is a special incentive to be able to conclude the second mine developer and operator contract with HZL, which is currently in preparation.”

The latest generation of GHH mining equipment, with its new dump truck MK-42, LF-14 and LF-10 LHDs as well as two FM 2.3 boom drill rigs from GHH group company, Mine Master, are on their way to India and are expected to be on site beginning of August, GHH said.

GHH says GHH Bumi is also currently working on preparing for the expansion of the Mochia Balaria Decline project, where a rapid development proposal is under way.

Macmahon defies labour tightness to bolster contract mining order book

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Macmahon Holdings Ltd has added around A$1.35 billion ($988 million) of work to its order book with the signing of three previously flagged contract mining gigs, plus announced the addition of surface mining work at Northern Star Resources’ Julius gold project in Western Australia.

The three projects making up the A$1.35 billion of contract mining works are the 5-year agreement with St Barbara Ltd at the Gwalia gold mine, a three-year pact with Anglo American at Dawson South and a five-year contract with Red 5 Ltd at King of the Hills.

The contract with Northern Star Resources at Julius is expected to deliver revenue of A$25 million over the next 12 months. Production from the Julius deposit is expected to complement output from NSR’s Jundee operations.

In addition to these projects, Macmahon says it is well progressed in finalising the commercial arrangements for Phase 8 of its Batu Hijau copper-gold project in Indonesia, an operation owned by PT Amman Mineral Nusa Tenggara.

Macmahon commented: “While Macmahon has observed a tightening of the labour market in Australia over the past year, it can confirm that the Gwalia, Dawson South and Julius projects have commenced operations by the times required in those contracts.

“Macmahon has existing strategies for responding to challenges in the availability of labour, and believes it is well placed to continue to manage this operational issue into the foreseeable future, and to continue to deliver value for its clients.”

Commenting on today’s announcement, Macmahon CEO and Managing Director, Michael Finnegan, said: “Macmahon is continuing to build on its track record for delivery and to advance its growth strategy.

“It is very satisfying to have secured significant new work during financial year 2021, which provides us with a strong order book and excellent earnings visibility for FY22 and FY23. The underground work at Gwalia and King of the Hills also adds scale to our underground business, which is an important step in our strategy to diversify Macmahon.”

AMS to continue servicing AngloGold’s Iduapriem with help of MAXMASS

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AMAX, a joint venture between Perenti Global’s surface mining business in Africa, African Mining Services (AMS), and Ghana-based mining services company MAXMASS Ltd, has been awarded a new circa-A$470 million ($346 million), five-year contract at AngloGold Ashanti’s Iduapriem gold mine in the Western Region of Ghana.

Perenti’s work in hand will increase by circa-A$280 million over the term of the contract, which is expected to commence immediately.

The new contract is structured as a 60:40 joint venture agreement between AMS and MAXMASS and represents AMS’ significant and ongoing commitment to developing and expanding the capacity and capability of local partners, Perenti explained.

Mark Norwell, Managing Director and CEO of Perenti, said the continued transformation of AMS, including the winning of quality projects underpinned by robust financial and commercial disciplines, remains a key strategic initiative in Perenti’s 2025 Group Strategy.

“We’re delighted to be extending our relationship with our long-standing client, AngloGold Ashanti,” Norwell said. “AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation.”

Perenti Mining Chief Executive Officer, Paul Muller, said AMS had a long history of delivering operational excellence and value to clients, having provided mining services in Ghana for 30 years.

“We have provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti,” he said. “We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate. Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contractors to our operations under previous contracts. The joint venture also expects to employ more than 475 Ghanaians with approximately 40% of the workforce employed from the surrounding local communities and the remaining 60% from other regions within Ghana.”

Iduapriem is an open-pit mine with two circuits each comprising two-stage milling – a gravity circuit and a carbon-in-leach (CIL) plant. The gravity circuit recovers about 30% of the gold and the remainder is recovered by the 418,000 t/mth capacity CIL plant, according to AngloGold.