Tag Archives: Davyhurst

MLG Oz makes contract inroads with Ora Banda, Gold Fields, Bellevue Gold

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MLG Oz says it has been selected as the preferred supplier for the provision of haulage and site services at Ora Banda Mining’s Davyhurst site, in Western Australia, on top of receiving a letter of award from Gold Fields for the provision of construction works for the latest tailings storage facility project at the gold miner’s 50% owned Gruyere gold mine (pictured), also in Western Australia.

The company is currently finalising contract execution for a two-year extension, plus a one-year option, to its existing arrangements for the provision of services at Davyhurst. It would come with new commercial terms across the scope of works already being provided negotiated in line with current cost drivers and production expectations, with annual revenue subject to production and performance anticipated to be
approximately A$15 million/y ($10.2 million). This is subject to a contract being signed.

Ora Banda Mining owns an existing centralised 1.2 Mt/y processing hub, as well as additional established infrastructure at Davyhurst.

The letter of award with Gold Fields, meanwhile, is for the provision of construction works for the Gruyere Tailings Storage Facility Stage 4 (TSF) project at the gold mine, a joint venture between Gold Fields and Gold Road Resources. The award is still subject to the final negotiation of contract terms. The anticipated contract length is around eight months, with total revenue of approximately A$17 million subject to final terms and key milestones being achieved.

In addition to this new scope of works, MLG has also agreed to commence haulage services for Bellevue Gold from its open pit to Genesis’s Gwalia processing facility, also in Western Australia. The initial works are expected to commence this month and run for approximately three
months and contribute circa-A$4 million in revenue.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms. The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships, and further demonstrate MLG’s broad capability both in terms of haulage and site services, but also in the support for our growing civil construction business.”

Ora Banda benefits from Aggreko virtual LNG pipeline at Davyhurst gold mine

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In what is a world-first for global energy provider Aggreko, the company has introduced its latest high efficiency gas engines at Ora Banda Mining’s Davyhurst gold mine in Western Australia.

The power station, which uses a virtual pipeline of gas trucked over 650 km, is expected to slash the mine’s carbon emissions by 25,000 t during the next five years, Aggreko says.

A virtual gas pipeline is a substitute for a physical pipeline whereby gas that would typically be conveyed through a conventional gas pipeline is instead transported as liquified natural gas (LNG) or compressed natural gas to the point of use by sea, road, rail or through a combination of one or more of these transport modes.

Aggreko Australia Pacific Managing Director, George Whyte, said the LNG station project at Davyhurst was another step in the company’s mission to help miners’ get closer to their net zero emission targets.

“The Davyhurst gas power station is a great example of how a mine which previously operated on diesel wanted to operate on cleaner fuel and we were able to switch from diesel to gas,” Whyte said.

“Creating a virtual pipeline application is a way to switch from diesel to a cleaner fuel source and reduce carbon immediately without requiring any capital outlay or a physical gas pipeline.

“The result at Davyhurst is a gas power station comprising five LNG-generating sets and two diesel generating sets for a combined modular power output of 8.2 MW. Aggreko’s gas-fired power station will enable Ora Banda Mining to reduce CO2 emissions by approximately 25,000 t during the initial five years of operation.”

He added: “This project demonstrates great innovation, uses a virtual gas pipeline and is a world-first for us using the high-speed reciprocating gas engines in our power generators. The power station is highly efficient, scalable and very suitable for transient loads and for the introduction of solar at a later stage.”

Whyte said Aggreko’s contract to supply the mine with power saved the junior miner on large capital expenditure and allowed miners to focus on their core skill of mining.

“Of appeal to miners is being able to take on flexible contracts with no capital outlay,” he said. “In addition, Aggreko upscales the technology, and the level of power is scalable so it can evolve with the mine.

“At Aggreko, we will reduce the amount of fossil diesel fuel used in customer solutions by at least 50% by 2030 and become a net-zero business across all services we provide by 2050. We are continuing to innovate and work with miners to reduce carbon by providing them with cleaner, scalable and modular energy as they work toward their net-zero targets.”

Ora Branda Mining Managing Director, David Quinlivan, said mining operations started on its large land holding in Western Australia in 2019 and reprocessing started again in January 2021.

“As part of the capital works program, we needed to re-establish a power station at Davyhurst and we worked with Aggreko and EVOL LNG to build a natural gas-powered station to power all of the site,” Quinlivan said.

“Initially, power was supplied to the site via an overhead line from Kalgoorlie. It is now trucked 650 km to site where it is used to power the gas generators. The power station developed for the site now supplies power to the processing plant, to the administration complex, our exploration and core processing facilities, the main mine accommodation plant, and out to the underground mining offices. It also powers our primary communications facilities.

“Working with Aggreko has resulted in a significant reduction of greenhouse gas emissions for our company.”

Ora Banda Mining hits its stride at Davyhurst Gold Process Plant

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Ora Banda Mining Ltd is pleased to advise that the Davyhurst Gold Process Plant, in Western Australia, has been successfully recommissioned, with the first gold poured on February 7.

All supporting infrastructure required to sustain ongoing processing activities at the processing plant’s rated capacity of 1.2 Mt/y is now in place and has been commissioned, the company said.

This includes the new 8.25 MW gas and diesel fired power station, extensively upgraded and commissioned bore fields (for both potable and process water supply), process plant chemical storage facilities, upgraded road infrastructure for ore supply routes and an upgraded 172 room camp at Davyhurst.

Practical completion for the remedial work program undertaken by GR Engineering Services was achieved on January 24, 2021, following which a commissioning blend of low-grade oxide and transitional ore stock together with primary ore from the Golden Eagle underground deposit was introduced into the plant.

Processing operations are currently stable and running at a throughput rate approaching 1 Mt/y with targeted grind size of P80 – 106 µ being achieved. Throughput will continue to ramp in line with the definitive feasibility study (DFS) schedule. This DFS outlined a production target of 418,000 oz of gold over an initial five-year mine life based on an ore reserve of 460,000 oz (6.1 Mt at 2.4 g/t Au) from six deposits within 50 km of the existing 1.2 Mt/y plant.

The company says it is well placed to progress process circuit optimisation and production ramp up with in excess of 200,000 t of run of mine stocks currently available for processing.

Ora Banda Managing Director, David Quinlivan, said: “Yesterday’s gold pour marks a significant milestone for Ora Banda – our transition from developer to producer. We are pleased to reach this important milestone and congratulate all who have been involved on the accomplishment. It has been an impressive team effort to deliver this project into production under the uniquely challenging circumstances of 2020 and 2021.

“Our focus now remains on the continued ramp up of activity as we progress toward steady state and the ultimate goal of delivering a long-life and sustainable gold operation.”

Ora Banda’s Davyhurst gold mine restart to be powered by LNG

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Ora Banda Mining and Wesfarmers’ liquified natural gas business, EVOL LNG, have signed a new long-term agreement to bring LNG to the Davyhurst gold mine in Western Australia’s Goldfields region.

The gold mine is aiming to restart production in January 2021 after being placed into care and maintenance in 2018.

Ora Banda’s definitive feasibility study (DFS) for the Davyhurst Restart project outlined a production target of 418,000 oz of gold over an initial five-year mine life based on an ore reserve of 460,000 oz (6.1 Mt at 2.4 g/t Au) from six deposits within 50 km of the existing 1.2 Mt/y plant. The plant is being refurbished by GR Engineering Services.

EVOL LNG’s Manager, Nick Rea, said the business had proven its winning LNG solution to the mining industry over the past 12 years with its customer base continuing to grow.

“We are excited to support the Davyhurst mine back into production,” he said. “Ora Banda is now our ninth mining customer and we are keen to provide them with the benefits and value that are afforded to EVOL LNG’s customers.”

EVOL LNG will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine. The facility will use EVOL LNG’s modular design, which, the company says, allows for fast installation and expandability if the mine’s energy requirements increase in the future.

Ora Banda Mining’s Managing Director & CEO, David Quinlivan, said: “Ora Banda’s agreement with EVOL LNG has enabled the company to secure a stable long-term energy solution for Davyhurst on terms consistent with those outlined in the DFS. The use of LNG as the primary fuel source for the Davyhurst power station also provides significant
environmental benefits.

“The company estimates its power generation greenhouse gas emissions will be reduced by approximately 25,000 t during the initial five years of operation when compared to conventional diesel power generation.”

The mine will use EVOL LNG to fuel a 7.5 MW gas-fired power station, with supply planned to commence from December 2020.

The LNG will be supplied from EVOL LNG’s Kwinana production facility in Western Australia, which was expanded earlier this year. Planning is underway for the next expansion to meet the growing market demand.