Tag Archives: Eliwana

Aboriginal-owned firm strengthens Fortescue ties with Eliwana contract

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

Mallard Deemey Pty Ltd, a 100% Aboriginal-owned business, is to construct and install a laboratory, storage, and administrative facilities at the Eliwana asset in Western Australia following a contract award from project owner Fortescue Metals Group.

The award continues to build on Fortescue’s commitment to Aboriginal procurement with its Billion Opportunities program. Since inception in 2011, this program has awarded contracts and sub-contracts worth over A$2.5 billion ($1.7 billion) to more than 120 Aboriginal businesses and joint venture partners, the iron ore miner said.

Eliwana is due to include a 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence at the end of 2020 with a life of mine strip ratio of 1.1.

The contract for Mallard Deemey, jointly owned and operated by Puutu Kunti Kurrama and Pinikura member Donna Meyer and Yamatji member Robby Mallard, is valued at over A$11 million. It will lead to the creation of over 100 jobs, with a significant number of employees expected to come from the Pilbara and Carnarvon as well as Perth, Fortescue said.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Supporting and investing in sustainable Aboriginal businesses is at the heart of our approach to ensuring Aboriginal communities benefit from the growth and development of our business.

“Our Billion Opportunities Aboriginal procurement program has provided a platform to demonstrate the skills and capability of Aboriginal businesses and the chance for Aboriginal people to build a future for their communities through economic opportunity.”

Mallard Deemey Director, Donna Meyer, said the contracts clearly showed the capability of Aboriginal businesses, challenging assumptions they could only work on projects of this size as subcontractors and where time schedules were less stringent.

“These contracts are a demonstration of Mallard Deemey’s strong capabilities and will also enable us to commit to our continued training and employment of local Aboriginal people, positioning our business very well for the future,” she said.

With Fortescue’s support, Mallard Deemey was previously engaged as a subcontractor for the deconstruction of the Wheatstone camp in Onslow, ahead of its relocation to Eliwana. Over 40% of the workforce who worked on the Onslow project were Aboriginal employees.

New Downer contract at Eliwana will phase into autonomous truck fleet maintenance

Automation, Bulk handling, Mining equipment, Mining maintenance, Mining services, Steel and iron ore, ,

Downer EDI Ltd has announced that it is expanding its relationship with Fortescue Metals Group through the provision of a Early Mining and Maintenance Services contract at the Eliwana iron ore mine, in the Pilbara region of Western Australia.

This is the second Eliwana project package to be executed by Downer, the first being the Bulk Earthworks contract which commenced in late 2019. The new agreement is valued at approximately A$450 million ($299 million) over five years. Under the agreement, Downer will complete early works operations over two years as the mine site is established.

After this initial two-year term, the operations will transition to Fortescue’s autonomous mining fleets, according to Downer, who will remain at the mine site and provide maintenance services for a further three years.

Chief Executive Officer of Downer, Grant Fenn, said Downer was a leading provider of mining services in Australia.

“Downer has a long-standing relationship with Fortescue and we are very pleased to be expanding our services,” Fenn said. “We are proud to be supporting the development of the Western Hub and the communities that will benefit from the mine.”

In addition to the incorporation of automation, Eliwana is due to include a 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1.

Cundaline Resources to work on Iron Bridge magnetite project

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

Fortescue Metals Group has awarded 100% Aboriginal owned company, Cundaline Resources Pty, with the contract for the West Canning Basin earthworks at its majority owned Iron Bridge magnetite project, in Western Australia.

The award, which continues FMG’s longstanding commitment to supporting local and Aboriginal businesses, will see the group carry out the earthworks, access preparation and rehabilitation services associated with the hydrogeology drilling program for the Iron Bridge project.

The Iron Bridge project will deliver 22 Mt/y (wet) of high grade 67% Fe magnetite concentrate product, according to FMG, with the first stage completed successfully by building and operating a full-scale pilot plant at the North Star mine site. This pilot project included the use of a dry crushing and grinding circuit, which FMG plans to leverage in stage two.

The second stage of the project comprises the construction of a large-scale process plant, and port infrastructure to support the production of 22 Mt/y (wet) of iron ore.

In FMG’s March quarter results, released late last month, the company said the $2.6 billion project was progressing on schedule and budget, with first concentrate production planned in the first half of calendar year 2022.

Key milestones in the three-month period included detailed engineering passing the halfway mark, procurement of major long lead process equipment committed and the first blast at the ore processing facility site, enabling bulk earthworks to commence.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said Fortescue’s Aboriginal procurement initiative, Billion Opportunities, has awarded over A$2.5 billion ($1.6 billion) in contracts and sub-contracts to Aboriginal businesses and joint venture partners since the program began in 2011.

“We are committed to building on this proud track record through our growth projects, Eliwana and Iron Bridge, which have already awarded over A$60 million in contracts to Aboriginal businesses,” she said.

“Importantly, Billion Opportunities is focused on building the capability and capacity of Aboriginal businesses, and it is very pleasing to see Cundaline, a business which commenced operations as a labour hire company, now expand into earthworks and mechanical maintenance contracting areas.”

Cundaline’s Managing Director, Brenden Taylor, said: “The West Canning Basin Earthworks contract is a milestone project and the first of a number of potential opportunities on the Iron Bridge magnetite project for Cundaline.

“We have worked hard to transition our company from a labour hire specialist to a contracting entity managing and delivering our own projects. I am particularly proud of my team for their professionalism and ‘can do’ attitude and not giving up during the tough times.

“Along this journey we have worked together with other Aboriginal businesses and I especially want to acknowledge Fortescue, through the Billion Opportunities initiative, for making a real difference for a local and Aboriginal business like Cundaline to continue to grow our capacity and capability into the future.”

NRW receives BGC contract win at FMG’s Eliwana project

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

NRW Holdings’ newly acquired BGC Contracting business has been awarded an infrastructure contract with Fortescue Metals Group at its Eliwana iron ore mine and rail project, in the Pilbara region of Western Australia.

The new contract, which came just two weeks after NRW announced the completion of the BGC acquisition, will support the development of 143 km of rail for the Eliwana project, according to the contractor.

The scope includes the construction of circa-65 km of rail formation, including earthworks, roadworks, drainage works and construction of bridges and pre-cast structures. The contract is valued at close to A$138 million ($96 million) with mobilisation expected to commence soon (completion is scheduled for late 2020). At its peak, the project will employ an expected workforce of 400, utilising over 140 pieces of major plant in the process.

Jules Pemberton, NRW’s CEO and Managing Director, said: “Following the successful acquisition of the BGC Contracting business, NRW’s operational delivery capabilities in the Pilbara are further enhanced, through the addition of the highly skilled BGC workforce into the group, together with the strong technical skillset to safely and successfully deliver the large bridges and concrete structures required on the project.”

In addition to the building of 143 km of rail, Eliwana will include a 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1.

FMG enlists Pentium Hydro for more boring at Pilbara iron ore ops

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Vysarn’s wholly owned subsidiary, Pentium Hydro, has won further work with Fortescue Metals Group following an initial order for the iron ore miner’s Chichester operations in the Pilbara of Western Australia.

The two companies have entered into an agreement for hydrogeological borefield drilling and construction services for both the Chichester and Solomon operations.

The contract will see Pentium pocket estimated revenue, based on the initial scope of work, of A$13.3 million ($9 million) for a two-year fixed scope contract with a one-year extension option.

The scope of work as defined under the contract is to provide the drilling and installation of production, injection and monitoring bores to support mining and exploration activities across multiple locations, within the Pilbara region. As defined in the contract these sites are inclusive of Cloudbreak, Christmas Creek, Solomon and Eliwana.

Pentium completed the mobilisation of the first Dual Rotary (DR) drill rig and associated auxiliary plant at Chichester in October 2019 under a previously agreed initial purchase order from FMG.

Pentium anticipates the mobilisation of the second DR rig under the new contract during the month of January.

It said: “Revenue from these works is based on contract key performance indicators for the number of production and monitoring bores and is also subject to metres drilled and drill rates.”

In addition to this work with FMG, Pentium Hydro also has rigs and equipment out at BHP’s Olympic Dam mine, Roy Hill’s iron ore operation and AngloGold Ashanti/Independence Group’s Tropicana gold mine.

SIMPEC to power up FMG’s Eliwana iron ore mine

Mine operation news, Mineral project development, Mining services, Power supply for mines, Steel and iron ore, , , , , ,

SIMPEC has been given another assignment at Fortescue Metals Group’s Eliwana iron ore mine and rail project in Western Australia, with a circa-A$5 million ($3.4 million) contract to construct the 25 MW diesel power generation facility at the operation set to keep it busy until July 2020.

The contract, which commences this month, was awarded to the WestStar business by Energy Power Systems. It is SIMPEC’s first full vertical installation package comprising of civil, structural, mechanical, piping, electrical and instrumentation works, the company said.

Under the agreement, SIMPEC will supply (partially), install, test and commission the 25 MW facilities for Eliwana, with the delivery executed over three separable portions.

Back in April, SIMPEC was awarded its largest single contract to date, with ATCO Structures and Logistics granting it a circa-A$10 million contract to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana. The contract was scheduled to commence in the middle of the year and take nine months to complete.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.

SIMPEC wins more work from MSP Engineering, Iluka Resources

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SIMPEC says it has been awarded more than A$5 million ($3.46 million) in scope extensions to its current contracts in Western Australia.

WestStar Industrial’s engineering contractor business said the bulk of this work is either underway or will commence imminently and was built on the original awards from MSP Engineering (for the Tianqi Lithium Kwinana processing plant, pictured) and Iluka Resources (for the Cataby mineral sands project).

This news comes hot on the heels of SIMPEC announcing major contract awards, the most recent being the A$10 million win from ATCO to supply and install the electrical, communications and dry fire systems for an 800-room mine camp at Fortescue Metals Group’s Eliwana iron ore mine site in the Pilbara, Western Australia.

SIMPEC said its team has grown substantially over the past six months with nearly 150 personnel and contractors now working across all of its current contracts.

SIMPEC Managing Director, Mark Dimasi, said: “These scope extensions are a direct result of our strong performance on site. With safety at the forefront of everything we do, SIMPEC is performing very well across all projects and working very closely with our clients.”

BGC Contracting, SIMPEC awarded contracts for FMG’s Eliwana iron ore project

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

Australia mining and construction firm, BGC Contracting has been awarded a A$24 million ($16.9 million) contract to deliver bulk earthworks and roads at Fortescue Metals Group’s A$1.7 billion Eliwana iron ore project, 90 km west-northwest of Tom Price, in the Pilbara of Western Australia.

The six-month project is underway and BGC Contracting will deliver infrastructure including the construction of the permanent accommodation village earthworks and access road, a RFDS airstrip and a 16 km-long construction access road, the company said. BGC is carrying out all earthworks and civil works necessary to develop initial road facilities, which will also facilitate connection to near-future construction packages to rail and other infrastructure.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.

BGC Contracting CEO, Greg Heylen, said the Eliwana contract is a major achievement for the company’s diversification strategy and allows BGC to extend its expertise in the mining construction sector.

“When you partner with BGC Contracting, you don’t just partner with one of Australia’s largest contractors; you partner up with every person that works on the job. You get their collective experience, their knowledge, and their work ethic. You get 110%,” he said.

“There has been a real increase in resource sector and construction opportunities, particularly in Western Australia and Queensland, and we look forward to this next phase in our growth strategy.”

The day after BGC announced this contract award, WestStar business SIMPEC said it had been awarded a circa A$10 million contract by ATCO Structures and Logistics to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana.

The contract, SIMPEC’s largest single contract award to date, was scheduled to commence in mid-2019 and was expected to take nine months to complete.

SIMPEC Managing Director, Mark Dimasi, said: “To see the fruits of the concerted effort during the Fortescue Eliwana tender phase is very rewarding for the team. This Tier One project award is a significant achievement for SIMPEC allowing the company to construct alongside some of Australia’s biggest construction companies.”

NRW looks forward to further growth as iron ore focus pays off

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NRW Holdings has reported year-on-year increases in revenue and earnings in the six months to December 31, 2018, and says its focus on securing work in the iron ore sector has started to pay off.

Revenue came in at A$521.1 million ($370 million) for the six-month period, up 50.9% year-on-year, while earnings before interest, depreciation and amortisation rose from A$40.3 million in the six months to December 31, 2017, to A$74.3 million in the most recent half year.

The company’s order intake in the six months totalled A$1 billion, increasing total work in hand to A$2.4 billion, it said.

Jules Pemberton, NRW’s CEO and MD, said “Not only have we delivered incremental earnings growth, but we have been able to maintain strong cash flows through the period to reduce net debt to A$12.8 million and gearing to 4.3% despite an increase in capital expenditure driven by the purchase of key mining assets.

“All businesses performed on or above plan and it is worth noting that the Golding business has now generated cash equal to its acquisition cost within the first 14 months of ownership.”

The company, in previous outlook commentaries, mentioned NRW was looking to secure work on iron ore sustaining projects in Western Australia; a target that the company is starting to deliver on. Pemberton said: “Progress to date has been extremely positive following the awards of South Flank for BHP, in July 2018, the Koodaideri Plant site for Rio Tinto, announced in January 2019, and the award of Fortescue Metals Group’s Stage 1 Eliwana rail package, in February 2019.”

On top of this, NRW Holdings also announced the acquisition of the RCR Mining Technologies (RCRMT) business last month. On this transaction, Pemberton said: “The RCRMT business has developed a wealth of intellectual property across a range of products and processes and are recognised as leaders by global resource clients The acquisition will allow the company to provide incremental services, in line with our strategic objectives, to a number of core clients common to both NRW and RCR MT and is a very strong foundation on which to build a broader maintenance services business.”

NRW books A$62 million of business with FMG for Eliwana rail project

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NRW has been formally awarded the contract for Stage 1 earthworks, roadworks and drainage works of Fortescue Metals Group’s Eliwana Rail project in Western Australia.

The contract, which has a final value of around A$62 million ($44 million), follows the ASX-listed contractor being selected as the preferred contractor for these works at the end of last year.

The overall Eliwana mine and rail project is expected to cost $1.275 billion to build, and include 143 km of rail, a new 30 Mt/y ore processing facility (OPF) and infrastructure. Production is slated for December 2020 with a life of mine strip ratio of 1.1.

The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the mining company’s 2019 financial year.