Tag Archives: Decmil Group

Decmil receives logistics link upgrade LNoA from Covalent for Mount Holland lithium project

Decmil Group says it has received a Limited Notice of Award (LNoA) for a contract at Covalent Lithium’s Mount Holland lithium project in Western Australia.

Formal award of the contract remains subject to finalisation of terms and conditions, but, under the currently envisaged scope of the LNoA, Decmil is authorised to perform early works, commence procurement of materials and draft management plans.

If Decmil is awarded the contract, it will upgrade the logistics link between Great Eastern Highway and Covalent’s Mount Holland site. This encompasses 113 km of road upgrades with mobilisation scheduled to commence in August 2023 and completion anticipated by December 2024.

Covalent will develop and operate the Mount Holland project, which will be a unique, fully integrated producer of battery-quality lithium hydroxide in Western Australia. The company says it is targeting 75% recovery of spodumene in its concentrator and expects to produce more than 380,000 t/y of spodumene concentrate.

This LNoA further strengthens the relationship between Covalent and Decmil, with Decmil currently completing the design and construction of non-process infrastructure buildings at Covalent’s Kwinana site (pictured).

Decmil CEO, Rod Heale, said: “We are delivering on our shift towards larger-sized contracts with more equitable risk allocations that fit within our core geographic and operational expertise. This LNoA perfectly illustrates Decmil’s evolution towards this highly selective tendering strategy to underpin increasingly profitable revenue growth.

“The LNoA is also a testament to the successful delivery of our current package of works with Covalent, as we continue to positively progress our operational turnaround.

“Additionally, continued exposure to the Mount Holland project will further enhance the company’s position in the burgeoning lithium sector.”

Decmil Group bolsters Rio Robe Valley iron ore work

Decmil Group says it has secured a A$30 million ($22 million) contract from Rio Tinto to design and construct heavy vehicle (HV) and light vehicle (LV) facilities at the Mesa J iron ore mine in the Pilbara region of Western Australia.

The scope of the works includes the design and construction of a site laydown area, HV wash facility, mobile equipment maintenance workshop, bulk lube storage facility, and HV and LV tyre change facilities, it said.

Additionally, Decmil will deconstruct the existing HV wash facility and existing bulk lube storage facility at Mesa J. The contract is anticipated to be completed by the end of 2021.

Decmil CEO, Dickie Dique, said the contract award was a testament to the company’s ability to capitalise on a buoyant iron ore and magnetite market.

“We have now won two contracts with Rio Tinto in the space of a month, and, in September, we secured a A$41 million contract at the Iron Bridge magnetite project,” Dique said. “This validates our enhanced strategic focus on utilising our core capabilities to target a significant tender pipeline with blue chip customers in the resources sector.”

The Mesa J mine is part of the Robe Valley hub, which is owned by the Robe River Joint Venture. Rio Tinto has a 53% stake in the JV and is operator of Robe Valley, which has two iron ore producing mines in Mesa A and Mesa J.

On October 23, 2020, Decmil announced it was awarded an A$8.7 million contract from Rio Tinto to design and construct a laboratory facility at Mesa A.