Tag Archives: contract mining

Mining fleet changes hands at Boggabri coal operation

Coal technology, Equipment maintenance, Mining equipment, Mining services, , , , , , ,

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

Automation, Base metals, Mineral project development, Mining equipment, Mining services, , , , , , , , , ,

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

Explosives and blasting, Mining consumables, Mining services, , , , , , , , , , ,

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

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

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

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Precious metals, , , , ,

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

Mine operation news, Mineral project development, Mining services, Precious metals, , , , , , ,

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

Comminution of minerals, Explosives and blasting, Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , , ,

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.”

Mota-Engil and Mali-owned IMS to tackle Morila satellites and Super Pit

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

Mining contractor, Mota-Engil, and Mali-owned and operated contractor, Inter-Mining Services (IMS), are to carry out open-pit mining services at the Morila gold mine in Mali, following a contract award from Firefinch Ltd.

The two companies have entered a joint venture to carry out this contract, which will see them mine the satellite pits, Viper and N’tiola, as well as phase 1 mining of the Morila Super Pit.

The contract has an estimated value of some $360 million and includes site preparation and mining operations at the Viper and N’tiola satellite pits, and the Morila Super Pit. The scope of works also includes run of mine stockpile management at the Morila plant.

Mota-Engil have over 75 years of experience operating in Africa, and a demonstrated track record of operating at the scale required to pre-strip and mine the Morila Super Pit, Firefinch said. IMS, meanwhile, has extensive experience operating in the Malian mining sector.

“The combined expertise and capability offered by the joint venture allows for operating at scale, while combining strong local knowledge and content,” Firefinch said.

Work under the JV is scheduled to commence at the satellite pit of Viper and N’tiola in August 2021, with mining at the Morila Super Pit scheduled for the March quarter of 2022.

Firefinch’s Managing Director, Dr Michael Anderson, said: “The joint venture will bring together the capability to operate at scale, and a well-established locally owned and operated business that will maximise local content. It was great to have spent time at Morila and in Bamako this month, where we executed this important milestone. We have identified a solution that brings both local content and the technical capability required to undertake our open pit mining for future years.”

Firefinch has an 80% interest in the Morila gold mine, which has produced 7.5 Moz of gold since 2000. The ASX-listed company acquired the mine in November 2020 with the view to increase production at the 4.5 Mt/y mill from a current annual production profile of 40,000 oz/y of gold from tailings treatment, towards a target of 70,000-90,000 oz/y of gold through mining of small open pits, stocks and tailings from mid-2021. In 2022, Firefinch plans to increase production to 150,000-200,000 oz/y by re-commencing mining from the main Morila pit.

Perenti’s AUMS wins two-year extension at AngloGold’s Geita operation

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

Perenti Global’s African Underground Mining Services (AUMS) has secured a new two-year contract to continue operations at AngloGold Ashanti’s Geita Mine in Tanzania.

The two-year agreement will take effect immediately and comes with a value of $186 million (100% share).

As part of the new contract, Perenti will transfer 20% of equity in AUMS Tanzania to a newly created mining support services company called BG Umoja Services Limited. BG Umoja is an 80:20 joint venture between Perenti group entities and local drilling services and mining supply company, Geofields Tanzania Limited, which will supply mining support services to the Geita mine.

The establishment of the BG Umoja JV demonstrates Perenti’s ongoing commitment to support and build local capability, generating enduring social and economic value for the regions in which the company operates, Perenti said.

The Geita Complex is located within the Lake Victoria Goldfields of the Mwanza Region, about 120 km from Mwanza and 4 km west of the town of Geita. The Geita Mine was originally an open-pit operation, however, transitioned to an underground operation in 2016. Since this transition, AUMS has worked collaboratively with AngloGold Ashanti to provide a full suite of integrated underground mining services for the mine.

AUMS Tanzania, supported by Geofields, will continue to provide AngloGold Ashanti with underground mining services while facilitating the development of improved underground mining technical capability within the broader Tanzanian workforce.

Mark Norwell, Managing Director and CEO of Perenti, said: “We are very pleased to be continuing our strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine.

“Furthermore, this contract extension includes the addition of Geita Hill, a new underground development within the Geita Complex, which will see a steady increase in our scope of works and revenue run rate as the development ramps up from a single heading decline into multiple work areas and then into production later in 2021. This contract extension is expected to generate an improved earnings contribution for Perenti over the contract term.”

Perenti’s Mining Chief Executive Officer, Paul Muller, said Perenti first started operating in Tanzania in the late 1990s and the award of the contract extension at the Geita mine provided it with an opportunity to continue to partner with, and support numerous local businesses, suppliers and contractors.

“We look forward to expanding on these relationships as we seek to create enduring value and certainty for all of our stakeholders,” he said.

Felix equips Macmahon with tools to manage supply chain risk

IoT, Mining equipment, Mining maintenance, Mining services, Mining software, , , , ,

Felix Group Holdings Ltd has been awarded a three-year enterprise software contract with Macmahon Holdings for its Vendor Management and Sourcing solutions that, it says, is intended to be rolled out across the contract miner’s global operations.

Felix’s enterprise solution enables organisations to create efficiencies and manage supply chain risk by transforming and digitising the way they manage and engage with their third-party suppliers and subcontractors, it says.

The resources sector Macmahon operates in is an important part of Felix’s strategy as it continues to expand its platform into sectors beyond engineering and construction.

The contract is effective from July 1, 2021 and will run for 36 months, Felix says.

Felix CEO, Mike Davis, said: “We are very pleased to have won this contract with Macmahon, a market-leading mining services contractor. While not financially material, this represents an important milestone for Felix as we continue to expand our platform into new sectors.

“Macmahon undertook a comprehensive process to select a suitable solution to digitise their source-to-contract processes and create efficiencies across their operations. We look forward to partnering together and delivering sustainable value to Macmahon.”