Tag Archives: contract mining

MACA expands WA presence with Mining West acquisition

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

MACA Ltd has completed the acquisition of the Mining West business from Downer EDI Ltd, bringing with it four contracts at long-life mining assets in Western Australia.

The Mining West business currently comprises four contracts at Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (Citic Pacific) and Gruyere (Gold Fields, Gold Road Resources), with each of the four novating successfully to MACA, taking effect from completion, MACA said.

Additionally, in excess of 96% of the Mining West workforce has accepted employment with MACA, the ASX-listed contractor said.

MACA’s CEO and Managing Director, Mike Sutton, said: “Acquisition of the Mining West business will provide MACA with a very meaningful addition of a large-scale mining fleet that is currently engaged across four long-life projects, all with quality customers that are well known to me and other key members of MACA’s management team.”

This fleet comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.

“With the inclusion of Mining West, MACA now has total contracted work in hand of A$3.3 billion ($2.5 billion) at December 31, 2020, that provides a robust revenue base well past financial year 2025. MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”

Downer says it will receive over A$200 million in cash proceeds as a result of the sale.

NRW Holdings bags mining contract at NRR’s Roper Bar iron ore project

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

NRW Holdings has been awarded the mining contract for Nathan River Resources’ Roper Bar iron ore project in the Northern Territory of Australia.

Roper Bar has a fully integrated ‘pit-to-port’ logistics chain including a privately-owned 171-km paved access road to an existing barge load-out facility and product stockyard, according to NRW.

The project was commissioned in October 2020 with first direct shipping ore (DSO) exports in November. Production ramp-up is nearing completion, with four vessels now completed (around 220,000 t). An offtake agreement exists between Glencore and NRR for the marketing and distribution of iron ore from the project.

This contract award covers the Stage 1 operations at Roper Bar, with production of 4.6 Mt of DSO and 1 Mt of dense media separation production at 1.5-1.8 Mt/y over three years. The contract scope includes drill and blast, load and haul, clearing and grubbing, top-soil and subsoil removal and rehandling of ore stockpiles.

The contract value is circa-A$123 million ($95 million) and has a duration of 33 months. At its peak, there will be around 55 site-based personnel on the project.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is pleased to be involved in the recommencement of the Nathan River mine site and looks forward to its successful execution.”

Barminco to debut Epiroc Diamec Smart 6M in the Goldfields of Western Australia

Automation, Mining equipment, Mining safety, Mining services, Precious metals, , , , , , , , , , ,

Barminco says it has become the first company in the world to debut the new generation of Epiroc’s Mobile Carrier Rig (MCR) – the GEN 2 Epiroc Diamec Smart 6M.

This second-generation underground mobile core drill rig uses the drilling capacity of the Diamec Smart 6 automated operating system, and the mobility and sturdiness of the S2 Boomer carrier with the addition of Epiroc’s automated rod handler, the contractor said.

Epiroc says the the Diamec Smart 6M combines the best of two worlds – the high productivity and accuracy of a Diamec core drilling rig, with the mobility of a robust carrier designed for underground use.

The Rod Handling System, coupled with the Smart 6 Rig Control System, allows for full automation, increasing operator safety and productivity, according to Barminco.

The company said: “Combining Epiroc’s cutting-edge technology of their drilling and rod handling operating systems brings the underground drilling industry a step closer to having ‘no hands on steel’ and taking a giant step forward towards a safer environment for the operators.”

The contractor is due to commission the rig next month at a client site in the Goldfields of Western Australia.

Barminco added: “The addition of the Epiroc GEN 2 MCR to our state-of-the-art fleet supports our Diamond Drill team to Enable Tomorrow, work Smarter Together and take No Shortcuts. Following these Barminco Principles will help create a safer environment for our people and will assist our client in consistently achieving production targets.”

Thiess cuts probe drilling costs by leveraging advanced void management system

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Thiess says its mine planning team is pioneering the development and use of an advanced void management system that is informing probing, drill pattern and blasting design.

The holistic system gives the contractor’s office and field-based teams immediate access to a central database of void information to support better, faster decision making and task optimisation.

Thiess General Manager WA/SA (Acting), Matt Henderson, said the system focuses on capturing, monitoring and understanding existing voids to help the project team manage and backfill where required.

“It gives us and our client a clear understanding of the geological and geotechnical risks associated with the project and how to best address them,” Henderson said. “This flows from mine design into operations, enabling our project team to manage and mitigate risk to our people and delivery.”

Thiess Mine Planning Manager, Ravi Achari, said the system, designed to enable verticle mining through extensive networks of underground voids (drives, development workings, workings, vertical rises and large slopes), was developed to improve safety and provide greater certainty in the company’s delivery.

“The system was developed using insights and learnings from a number of technologies currently available on the market, but without integration were unable to provide the required outcome,” Achari said. “We also leveraged insight from our void officers and surveyors, and drill and blast, geotechnical and mine planning engineers.”

Achari confirmed the new system enables his team to determine the right solution specific to each void.

“The system uses historical plans, probing and drilling data to survey the position and size of the old workings,” he said. “This includes checking the location and attributes of the voids we find against the recorded data to verify any changes in size or shape.

“Our findings will then inform our safety zone and backfilling requirements.”

Incorporating over five-years of proven void management processes and procedures, the system delivers client benefits by enabling Thiess’ team to mine additional tonnes.

“The system gives a precise delineation of the voids informing a more tailored drill and blast design that allows additional recovery of the commodity,” Achari said. “It has also enabled a reduction of probe drilling costs by up to 25%, representing a substantial cost saving.”

To date the system has helped manage and treat over 25 km of underground voids and stopes in Western Australia, and is currently being leveraged to develop an integrated drill and blast reporting system for Thiess globally.

Byrnecut adds Carrapateena to OZ Minerals underground contract mining portfolio

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OZ Minerals Ltd has changed underground mining contractor at its Carrapateena copper-gold mine in South Australia following Downer EDI’s move to divest its mining services businesses to MACA.

The company has now signed an agreement with Byrnecut Australia for the delivery of underground mining and associated mining services at Carrapateena. The two companies know each other well, with Byrnecut already carrying out underground mining services at OZ Minerals’ Prominent Hill for the past 10 years.

The five-year alliance-style contract with Byrnecut is valued at circa-A$130 million/y ($101 million/y), OZ Minerals said. Byrnecut has already commenced a seven-week mobilisation to the Carrapateena site and will assume full responsibility for mining services delivery from March 4, 2021.

“OZ Minerals, Byrnecut and Downer will work together during the transition period to ensure continuity of operational performance and development, and employee support and opportunities, with the objective of providing roles for the majority of the incumbent underground workforce,” the company said. “This transition will include the transfer of equipment from Downer to Byrnecut.”

Byrnecut will now provide underground mining services to both the Carrapateena and Prominent Hill mines.

“Byrnecut is a proven top-tier underground mining contractor who has been providing underground mining services to Prominent Hill for the past 10 years, with their Prominent Hill contract having been renewed in 2020,” OZ Minerals said.

The scope of work comprises all underground mining activity for the duration of the contract including production and development mining and associated mining services; and bedding in steady-state operations at nameplate site capacity.

Orla Mining on course for first gold in 2021 at Camino Rojo Oxide project

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The publication of the updated feasibility study on Orla Mining’s Camino Rojo Oxide Gold asset in Zacatecas, Mexico, has come with a 54% increase in contained gold reserves and a 3.5-year extension to the mine life of the in-construction project.

The new reserve estimate at Camino Rojo includes a proven and probable total of 67.4 Mt at 0.73 g/t Au and 14.5 g/t Ag, for total mineral reserves of 1.59 Moz of gold and 31.5 Moz of silver.

The updated study outlined open-pit mining of 67.4 Mt of oxide and transitional ore at a rate of 18,000 t/d. Ore from the pit will be crushed to 80% passing 28 mm, conveyor stacked onto a heap leach pad and leached using a low concentration sodium cyanide solution. Pregnant solution from the heap leach will be processed in a Merrill-Crowe recovery plant where gold and silver will be precipitated and doré will be produced. The site’s proximity to infrastructure, low stripping ratio, compact footprint and flat pad location all contribute to the project’s simplicity and low estimated all-in-sustaining costs of $543/oz of gold, the company said.

An after-tax net present value (5% discount) of $452 million was calculated by the study team led by Kappes Cassiday and Associates and supported by Independent Mining Consultants, Resource Geosciences Inc, John Ward Groundwater Consultant, Barranca Group, Piteau Associates Engineering and HydroGeoLogica Inc.

The main notable physical changes from the 2019 feasibility study are an increase in the size of the open pit, heap leach pad, and mine waste dump because of a layback agreement with the adjacent Fresnillo mine, all of which were anticipated in the initial design. While all material to be mined on the Fresnillo concession has been classified as waste in the latest study, Orla sees opportunities to further expand the reserve and resource base following further work on material in this area.

Jason Simpson, President and Chief Executive Officer of Orla, said: “The updated feasibility study for the Camino Rojo Oxide project demonstrates an increase in recovered gold, mine life, and cash flows.

“An already excellent project has been improved due to the hard work of the entire Orla team and I thank them for their efforts. We are pleased to announce this important enhancement and we will continue to optimise this asset as we move through construction and into production.”

Detailed engineering of the project described in the 2019 feasibility study is over 90% complete and procurement is 85% complete, with the start of earthworks announced on November 26, 2020. Since that time, 230 ha have been cleared for construction activities with over 20,000 cu.m of topsoil being removed and stockpiled. Equipment deliveries to site commenced in December, with a total of $78 million of the total project capital committed through purchase orders and contracts.

Orla says the mining contract is being finalised and expected to be in place early in the March quarter, with first gold production planned for late 2021.

Orezone makes Bomboré headway with Lycopodium EPCM award

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Orezone Gold is moving closer to the construction phase at its 90% owned Bomboré project in Burkina Faso after awarding an EPCM contract for the gold asset, completing a Phase I Resettlement Action Plan (RAP) with nearby communities, and making progress on awarding both mining and power plant Build-Own-Operate contracts.

The company has awarded the engineering, procurement, and construction management contract to Lycopodium Minerals Pty Ltd, a company, Orezone says, has an excellent track record of delivering projects on time and on budget in West Africa.

When it comes to the Phase 1 RAP, Orezone said all villages and infrastructure have now been completed.

“Relocation of households is proceeding smoothly with relocation substantially complete,” it noted. “This opens access to all areas required for the preparation of the process plant, surface infrastructure, and key mining areas including the off-channel reservoir and tailings storage facility.”

Alongside this work, Orezone has undertaken a competitive tender process for the contract mining agreement at Bomboré, including bidder site visits and a detailed assessment of proposals received.

The company plans to award the open-pit mining contract in early 2021 to allow for contractor mobilisation, site establishment, and commencement of pre-production mining by the end of the March quarter.

Bids for the Build-Own-Operate power plant, meanwhile, have recently been received from companies specialising in providing power solutions in West Africa, Orezone said. The company expects to award this contract in the current quarter.

Orezone’s 2019 feasibility study on Bomboré envisaged a 5.2 Mt/y throughput operation able to produce, on average, 117,760 oz of gold over a 13-year mine life where both oxide and sulphides would be mined and processed.

The company said negotiations for conventional project debt covering a major portion of the initial project construction budget of $153 million were advancing “rapidly and smoothly”, with expectations of binding debt commitments being announced later this month.

As currently planned, first gold is scheduled for early in the September quarter of 2022.

Patrick Downey, President and CEO, said: “Awarding the EPCM contract to Lycopodium is a key step to ensure the continued successful development and construction of the Bomboré project. With more than 12 mines built in West Africa, Lycopodium’s track record of building efficient mines on time and on budget is unparalleled.

“Lycopodium is very familiar with Bomboré, having performed the 2018 Feasibility Study, the 2019 Updated Feasibility Study, and the previously completed front-end engineering and design.”

Downey said Lycopodium will be able to immediately build on its past work and progress the project in a cost effective and timely manner.

Thiess equity transaction on target for end of 2020, CIMIC Group says

Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

CIMIC Group says it has signed all relevant material documentation including financing agreements for the sale of 50% of Thiess, one of the world’s largest mining services providers, to funds advised by Elliott Advisors (UK) Ltd.

This encompasses the satisfaction of a number of conditions precedent, including the required regulatory approvals, CIMIC noted.

Back in October, CIMIC announced the deal with Elliott, one of the oldest fund managers of its kind under continuous operation, saying the transaction would strengthen CIMIC’s balance sheet by generating cash proceeds on completion of A$1.7-A$1.9 billion as well as reducing CIMIC’s factoring balance by around A$700 million and CIMIC’s lease liability balance by some A$500 million.

Thiess delivers open pit and underground mining in Australia, Asia, Africa and the Americas, providing services to 25 projects across a range of commodities, CIMIC says. It has a diverse fleet of plant and equipment of more than 2,200 assets, a team of around 14,000 employees and generates annual revenues in excess of A$4.1 billion.

CIMIC noted that transaction completion, including receipt of cash proceeds, is expected to occur prior to the end of 2020.

As previously advised, the price for 50% of the equity interest in Thiess implies an enterprise valuation of approximately A$4.3 billion ($3.3 billion).

MacKellar Group adds to Liebherr T 264 haul truck fleet at Anglo’s Dawson mine

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MacKellar Mining has almost doubled the size of its Liebherr T 264 off-highway haul truck fleet at Anglo American’s majority-owned Dawson open-pit metallurgical coal mine in central Queensland, Australia.

The mining contractor has purchased another four Liebherr T 264 240 t trucks, adding to the fleet of five commissioned at Dawson in early 2020.

The four new T 264s, manufactured in Liebherr Newport News facility in Virginia, USA, will complete pre-assembly in Mackay before travelling inland to Dawson Mine for final commissioning, Liebherr said. The plan is for the trucks to join the working fleet in early 2021.

MacKellar Group said of the decision: “The T 264 provides efficient productivity for our clients by offering a true 240 metric tonne payload, and superior speed on grade. The many operator comforts also makes the trucks well accepted on site.”

The fleet of trucks at Dawson mine, owned 51% by Anglo American and 49% by Mitsui Holdings, are supported by Liebherr-Australia’s Mackay branch and on site Liebherr technicians, another area that assisted the purchase of the additional four units.

“Liebherr-Australia’s support has been excellent, starting from the beginning with the provision of professional operator training, through to support from their experienced technicians,” MacKellar Group concluded.

MACA increases open-pit scale by acquiring Downer EDI’s Mining West business

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MACA has entered into a binding agreement to acquire Downer EDI Limited’s Mining West business in a deal that could involve a consideration of A$175 million ($132 million).

Just last week, MACA said it was considering the potential purchase of Downer EDI Limited’s Mining West division as part of a stated plan to explore and pursue growth opportunities that will deliver “value to shareholders on an ongoing basis”.

The Mining West business currently comprises four large contracts at the long-life assets of Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (CITIC Pacific) and Gruyere (Gold Fields, Gold Road Resources).

MACA’s CEO and Managing Director, Mike Sutton, said the acquisition provided MACA with a very meaningful addition of a large-scale mining fleet currently engaged across these projects. This comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.

The fleet being acquired is currently fully utilised, or in the process of being deployed to projects, with the equipment having mixed life (with machines being on average mid-life). MACA says its due diligence has confirmed the machines are in good working order, having been well maintained by Mining West’s internal plant department.

With the inclusion of Mining West, MACA now has total contracted work in hand of over A$3.4 billion, which provides a robust revenue base well past its 2025 financial year, Sutton added.