Tag Archives: contract mining

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.

Mining fleet changes hands at Boggabri coal operation

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Most of the major mining equipment used at the Boggabri coal mine in New South Wales, Australia, is to be sold to Boggabri Coal Operations (BCO), part of the Idemitsu Group, following the exercise of an option between BCO and Golding Contractors, a subsidiary of NRW Holdings.

The transaction for the fleet, which includes 38 major mobile mining assets, has a target completion date of the end of July 2021.

Golding will continue to perform maintenance services on site across these, and another 50 (approximately) pieces of major mining equipment, engaging a workforce of over 150 personnel on site, NRW said.

The equipment will be sold for circa-A$81 million ($61 million) of which circa-A$64 million will pay down asset financing debt, NRW said.

NRW’s CEO and Managing Director, Jules Pemberton, said: “The option for BCO to acquire all or part of the associated mining fleet was identified at the time of the acquisition of BGC Contracting. This transaction will reduce debt and increase return on capital employed.

“We look forward to continuing to support BCO to ensure we are best placed to continue to provide our services beyond the current contract completion date of December 2022.”

Perenti’s Barminco seals Savannah nickel project contract

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Perenti Global’s hard-rock underground mining subsidiary, Barminco, has finalised a contract with Panoramic Resources for development and production works at the Savannah nickel project in the Kimberley region of Western Australia.

The finalised contract represents a value of around A$280 million ($208 million) over a four-year contract term, Perenti said.

Under the terms of the initial letter of intent, announced on the April 6, 2021, Barminco commenced mobilisation and early mining works ahead of the schedule. With finalisation of the contract, Barminco expects development and production works will ramp-up over the coming six months to achieve full run rate of revenue early in the March quarter of 2022.

The contract will be serviced by new underground mining equipment including the use of tele-remote mining equipment, expected to deliver both safety and productivity benefits, Panoramic said.

Ore processing at Savannah is scheduled to begin in November with first concentrate shipment from Savannah targeted for the following month, Panoramic said. The building of an ore stockpile on the surface has already commenced and the company plans for this to reach 100,000 t prior to turning on the processing plant.

Perenti’s Managing Director and CEO, Mark Norwell, said: “We look forward to working together with the team at Panoramic to develop what we all expect will be Australia’s next long-life nickel producing mine. Despite the challenging labour market conditions in Western Australia, we have been successful in mobilising a labour force of approximately 110 highly skilled underground employees. We expect this to increase to 170 as the project ramps up. Securing this labour force has enabled us to commence early works ahead of schedule.”

Savannah has outlined a 12-year mine life with an average annual production target of 9,072 t of nickel, 4,683 t of copper and 676 t cobalt in concentrate. The mine is set to operate at average site all-in costs of A$6.36/lb of payable nickel, net of copper and cobalt by-product credits and royalty payments. This equates to roughly $4.86/Ib or $10,714/t.

The operation, with more than A$100 million already invested, has been maintained since the suspension of operations in April 2020 with a view towards operational readiness and project optimisation. This includes the recent completion of the FAR#3 ventilation raise, underground capital development on four mining levels at Savannah North and ancillary capital works on surface and underground infrastructure, which are currently being completed, Panoramic says.

AECI Australia cements Thiess relationship with five-year contract extension

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AECI Australia has been awarded a five-year contract extension by contract miner Thiess for the supply of bulk emulsion explosives, initiating systems and related services for mines in Queensland and New South Wales.

This contract consolidates AECI’s base business in Australia and further strengthens the relationship between the two companies, which began in 2014 when AECI entered Australia to support this major mining customer, AECI said. The two also have long-standing partnerships in Indonesia and in several countries in Africa.

The Australian contract, using AECI’s existing in-country capabilities and infrastructure, includes supply of bulk emulsion explosives formulations produced at AECI’s site in Bajool, Queensland, as well as gassing technology for down-the-hole delivery by Thiess; supply of ammonium nitrate; and supply of the Intellishot® electronic initiating system and booster.

Mark Dytor, AECI Chief Executive, said: “AECI Australia is celebrating the achievement of seven years worked without a lost-time injury. We are proud to deliver a safer, innovative and cost-effective product offering that enables ‘One AECI, for a better world’. Better Mining is one of our sustainability goals because we recognise the importance of making global mining safer and more circular. Significant opportunities exist and we look forward to realising more of these in collaboration with customers such as Thiess.”

Thiess in line for contract extension at Mach Energy’s Mount Pleasant

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Thiess has been selected as the preferred mining services contractor for the Mount Pleasant thermal coal operation in New South Wales, Australia.

MACH Energy has notified Thiess of its intention to enter into exclusive negotiations to finalise the terms with the view to execute a mining services contract, it said.

Under the contract, Thiess will continue to provide full scope mining services including drill and blast, load and haul, mining and run of mine rehandling services, equipment maintenance and progressive rehabilitation.

Subject to contract finalisation, from April 2022, revenue to Thiess is expected to be around A$925 million ($690 million) over four-and-a-half years.

“Thiess began operating at Mount Pleasant in 2017 as a greenfield mine, applying industry best practice mining development and operations with uncompromising environmental and safety standards,” the company said. “This includes delivering the operation’s first rehabilitation two months before first coal was mined, demonstrating a true commitment to sustainable practices and to the community more broadly.”

Subject to execution, Thiess will continue to draw on local businesses for the provision of goods and services to support the mine and is committed to attracting and retaining a diverse, local workforce.

Equinox Gold and U&M start mining at Santa Luz in Brazil

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Equinox Gold Corp says mining activities are underway at its new Santa Luz gold mine in Brazil, with commissioning on track for the December quarter ahead of first gold pour in the March quarter of 2022.

The company expects to produce 110,000 oz/y of gold for the first five years of operations.

The mining contractor, U&M Mineração e Construção S/A, mobilised to site in May and mining commenced in mid-June. Mining activities are currently focused on removing waste from two locations and developing access roads, ramps, dumps and ore storage areas in preparation for a pre-stripping campaign prior to mining ore in late 2021. To make room for mine expansion, U&M is also relocating an existing ore stockpile with an average grade of 0.9 g/t Au, which will be used for commissioning activities in the December quarter.

Construction is on schedule and on budget, with approximately $31 million of the $103 million construction budget spent and $70 million committed at the end of June 2021.

As a brownfield past-producing mine, the majority of site services and infrastructure is already in place at Santa Luz, Equinox said. Restart activities are focused on refurbishing existing infrastructure, retrofitting the plant to incorporate resin-in-leach processing, installation of additional grinding infrastructure and increasing the storage capacities of the existing tailings and water storage facilities. A significant construction milestone was achieved on June 25 with installation of the first segment of the ball mill.

Construction highlights include:

  • Overall project is 41% complete;
  • Engineering and procurement activities are 96% complete;
  • Plant construction and refurbishment is 46% complete;
  • Refurbishment of existing SAG mill is progressing well;
  • Primary grinding is 75% complete;
  • Secondary grinding is 52% complete: concrete foundations and pedestals for the new ball mill are 100% complete, ball mill installation is underway;
  • Pre-conditioning, leach and detoxification circuit is 46% complete: concrete bases are complete, steel structures are being pre-assembled and tank installation is underway, with four tanks out of 10 fully erected and four more partially erected;
  • Earthworks for primary crushing area are underway;
  • Electrical and substation upgrades are 90% complete;
  • Electrowinning cells have been installed in the gold room;
  • Completion of refurbishment of existing plant areas is scheduled for the September quarter; and
  • Tailings and water storage facility expansions are underway with completion targeted for the December quarter.

Red 5 formalises KOTH contract mining pact with Macmahon

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Red 5 Ltd has awarded the King of the Hills (KOTH) mining services contract to Macmahon Contractors Pty Ltd, a subsidiary of civil and mining contractor Macmahon Holdings.

The contract award follows the completion of a thorough competitive tender process in late 2020 for the open-pit and underground mine contracts and encompasses the combined mining operations at KOTH, in Western Australia, Red 5 said.

Red 5 signed a Letter of Intent with Macmahon for the mining contract in March and, following the finalisation of contract terms, has now formally awarded the contract. The contractual terms are in line with the mining unit costs outlined in the KOTH Final Feasibility Study (FFS).

This study outlined a 16-year life of mine plan from open-pit and underground mining, whereby the company would produce 176,000 oz/y of gold over the first six years, with an initial five years of underground mining. First gold is scheduled in the June quarter of 2022.

The mining services contract is for an initial five-year period, with industry-standard incentives and penalties for mining contractor performance.

Red 5 Managing Director, Mark Williams, said the formal award of the contract to Macmahon is a significant milestone for the project.

“We’re pleased to have finalised agreed contract terms with Macmahon and formally appointed them as our open-pit and underground mining contractor,” he said. “Macmahon is one of the strongest mining contractors in the market, and we are looking forward to partnering with them to deliver Australia’s next significant new gold mine.

“Importantly, the contract terms are in line with the mining unit costs outlined in the KOTH FFS. Operational efficiencies and cost benefits have been realised in having both mining operations managed by a single contractor.

“Given the current tightness in the labour market in Western Australia’s mining sector, we believe Macmahon is well placed to secure the skilled resources required to operate the underground and open pit mines at KOTH.”

NRW in line for A$702 million Karara Mining iron ore gig

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NRW has received a letter of intent from Karara Mining Ltd to carry out mining services works at the Karara iron ore mine in the Gascoyne region of Western Australia.

Subject to reaching agreement with Karara, the anticipated value of the contract is around A$702 million ($529 million) over a five-year duration with a project workforce averaging circa-250 personnel.

MACA, through its recently acquired Mining West business, currently holds the contract mining agreement at Karara.

The works to be performed include load and haul, drill and blast, and run of mine re-handling. The drill and blast component will be undertaken by NRW’s wholly-owned subsidiary, Action Drill & Blast Pty Ltd. In addition, the work includes train loading and re-handling of the product stockpiles together with “miscellaneous day works” at the mine site, camp and access roads.

Karara is the largest mining operation and the first major magnetite mine in the Mid West region. It produces a premium, high-grade concentrate that it exports to steelmakers.

“With an expected mine life of 30-plus years, Karara’s operation includes a large open-pit mine, complex ore processing and beneficiation plant and significant infrastructure and logistics networks,” NRW said.

NRW estimates an equipment capital expenditure of around A$170 million to be progressively spent over the term, which will include the purchase of three 600 t face shovel excavators and a fleet of 220 t trucks.

NRW CEO, Jules Pemberton, said: “With a strong local presence in the area through our Geraldton-based DIAB Engineering business and our mining contract with Gascoyne Resources at the Dalgaranga mine site, we look forward to continuing to support the existing and highly experienced workforce on site through this transition, as well as creating employment opportunities for the Gascoyne region community.”

Karara CEO, Changjiang Zhu, said: “NRW is an established Western Australia-based mining and civil contractor with extensive open-cut mining experience gained through a number of successful mining operations in the state. Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising a broad range of mining, construction and engineering services.

“We look forward to negotiation of an agreement with NRW and commencement of mining services early next year.”