Tag Archives: engineering

Worley cuts 5% of staff on COVID-19-related uncertainty

IoT, Mining finance, Mining services, , , , ,

Engineering firm Worley has decided to cut 5% of its staff as it continues to deal with the fallout from the COVID-19 pandemic.

The company said it had seen a contraction in the business from customers’ delays, deferrals and cancellations, particularly in field-based work and, more specifically, in lower margin construction-related activities.

This has seen headcount drop to 56,000 as at March 31, 2020, down 5% from 59,000 as at January 31, 2020.

Worley explained: “The current economic circumstances have led to a rapidly changing environment for Worley’s business. To date, the impact of these changes has been limited.”

As a result of the acquisitions of AFW UK in 2017 and Jacobs ECR in 2019, Worley says it is a “more diversified business” in the energy, chemicals and resources sectors, with reduced exposure to both oil and gas and general capital expenditure.

Despite the economic outlook and customers’ responses being difficult to predict, the company said it was preparing for a range of scenarios.

“Worley is delivering projects and providing services to support our customers with most of our office-based people working from home,” it said. “Worley also continues to provide field-based services to build, improve, maintain and operate critical infrastructure in Australia and around the world.”

In response to the current economic circumstances, and recognising it is still early, Worley says it has and will continue to implement measures to adjust both operational and support cost structures; postpone all non-essential capital expenditure; protect cash, manage receivables and minimise discretionary spend; optimise staffing levels and costs while retaining capability; and maintain productivity on projects and operational support services.

“Worley is closely monitoring developments and opportunities in each of the regions in which we operate and will consider additional initiatives as appropriate, recognising the current economic circumstances present opportunities to work smarter and more cost effectively in the future business environment,” it said.

On top of having a strong financial position, Worley said it was better prepared to face any potential fallout from COVID-19 following the strategic acquisitions of AFW UK in 2017 and Jacobs ECR in 2019.

Around 20% of Worley’s revenue is derived from exposure to customers’ upstream and midstream oil and gas capital expenditures, down from 65% prior to the acquisitions. Meanwhile, 45% of Worley’s revenue is derived from customers’ operating expenditures, up from 10-15%, it said. “Operating expenditure contracts tend to be longer term, multi-year contracts,” the company noted. Lastly, 37% of Worley’s revenue is derived from the chemicals sector, up from less than 10%. The chemicals sector has shown in previous cycles to be less cyclical than others, Worley said.

Chris Ashton, Chief Executive Officer of Worley, said, “We are responding with agility to the rapidly changing environment. We are ensuring the safety and wellbeing of our people, we have increased our liquidity position and we continue to review and adjust the business operationally.

“I am proud of our people as they demonstrate resilience and harness their ingenuity and expertise supporting customers, colleagues and communities.”

Black & Veatch scales up environmental and sustainability offering

Environmental, Mining services, Sustainable mining, , , , , ,

Engineering, procurement, consulting and construction company, Black & Veatch, is expanding its global environmental capabilities and services as businesses respond to increasingly complex demands from regulators, shareholders and consumers, it said.

The expansion comes as companies, utilities and governments navigate a range of COVID-19 related operational challenges and a recent wave of ambitious sustainability commitments. Meeting environmental demands and delivering on sustainability targets, however, requires new levels of innovation and expertise, the company says.

“Black & Veatch’s environmental team includes nearly 200 dedicated scientists, consultants and specialised compliance and permitting experts capable of providing direct service to clients of various scale,” it said. “The team’s vast experience can help stakeholders overcome complexity and reduce program costs by making it easier to integrate environmental considerations at every phase of the infrastructure lifecycle.”

Dave Johnson, co-Leader of the Environmental Services team, said: “Every industry is embracing environmental stewardship, and companies that fail to integrate the right expertise at the right time carry significant business and reputational risks. By collaborating across Black & Veatch, clients will benefit from our dedicated in-house environmental experts, who uniquely understand their environmental risk and opportunities.”

Advances in technology, consumer behaviour and economics are also transforming infrastructure development, according to the company. “The rise of distributed infrastructure programs, which bring data analytics, electricity and other new services closer to the end user, is a major trend influencing new thinking and approaches to environmental risk and compliance strategies.”

Lisa Fewins, co-Leader of the Environmental Services team, said Black & Veatch’s clients want innovative, dependable solutions to better operate in a dynamic global environmental landscape.

“With many clients seeking to more effectively address traditional operating issues, as well as emerging challenges tied to COVID-19, our ability to work across Black & Veatch’s world-class engineering, procurement and construction teams on a daily basis lets us offer faster, more integrated solutions,” she said.

Black & Veatch says it offers more than 80 existing environmental services across five prominent categories including: environmental air quality, remediation, management, compliance and science.

Fewins said: “We are taking a leading role in partnering with innovative technology providers to support our clients with cutting-edge solutions, as well as helping clients plan, scale and manage environment requirements.”

In addition to traditional environmental services across air quality, site remediation and advanced water solutions, Black & Veatch says it is an industry leader in the development of electric vehicle charging infrastructure and renewable solutions, including solar photovoltaic and wind energy.

“The company is also helping advance sustainability and environmental goals for mining companies, data centre providers and many more industries,” it said.

JLR diversifies its mechanical and electrical services offering with LCI buy

Equipment maintenance, Mining consumables, Mining equipment, Mining mergers and acquisitions, Mining services, , , , ,

Less than six months after acquiring Timmins-based brownfield mining firm Porcupine Engineering Services, JL Richards & Associates (JLR) has bolted on Ottawa-based engineering firm LCI Engineering Inc (LCI) to its rapidly expanding portfolio.

This partnership allows JLR to further diversify its mechanical and electrical services in the industrial market, it said.

LCI is a mechanical and electrical engineering firm with a 40-person complement with extensive project experience in the plant and heavy industrial sectors, it said. Founded in 1994, LCI shares JLR’s focus on providing value to clients through dedicated service and innovative technical solutions, the company said.

The LCI team will continue to operate under its existing banner and at its current location for the time being. Integration of the two teams will occur after JLR’s new Ottawa office is completed, it said.

Marc-André Lussier, an original founder of LCI, said: “This is an excellent time to join JLR, and we are excited for what this means for the future of the LCI team and the level of service we can provide to our clients.”

Guy Cormier, JLR President and CEO, said: “JLR is growing as a company and, through that growth, we are strategically expanding our service offerings to provide added value to our clients. Welcoming the LCI team means we can offer existing clients of both firms more specialised engineering, architecture, and planning expertise.”

GR Engineering awarded with Abra EPC contract

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

GR Engineering Services has been awarded a conditional engineering, procurement and construction (EPC) contract to deliver a 1.2 Mt/y lead sulphide flotation process plant and ancillary infrastructure for Galena Mining’s Abra Base Metals project in Western Australia.

The award, worth some A$74 million ($50 million), follows work carried out by the ASX-listed engineering company on the feasibility study and at the preliminary design stage of Abra.

The work will be undertaken on a guaranteed maximum price basis, according to GR Engineering, which confirmed that the contract remained subject to GR Engineering being issued with a full notice to proceed. This is dependent on Abra Mining Pty, Galena’s operating subsidiary, achieving financial close on its proposed project financing facilities. Galena, which owns 86.16% of the project through Abra, has said it will require A$170 million of pre-development capex to get the mine up and running.

GR Engineering has already commenced early engineering works up to an agreed capped amount, it said.

Geoff Jones, Managing Director of GR Engineering, said: “We are pleased to have been awarded the contract for the delivery of the Abra Base Metals project, which has followed GR Engineering’s involvement to date in the project’s feasibility study and preliminary design work.”

Galena completed a definitive feasibility study on Abra last year for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

Earlier this month, the construction of the Abra box cut commenced (pictured).

Alcore’s CORE plans move forward with Clough engineering appointment

Industrial minerals, Metallurgy, Mineral processing, Mining services, Sustainable mining, , , , , , ,

Alcore Ltd has executed a contract with major Australia engineering firm, Clough, to help with the design and construction of the first Alcore production plant.

Clough, which will be represented by Clough Projects Australia Pty on the project, has been investigating the CORE technology that will be used by Alcore for several years and is ready for a smooth entry into the Alcore project, the company said.

Alcore says the engineering firm’s in-house skills and expertise provides the full spectrum of capabilities needed, including: concept evaluation & regulatory approvals; project feasibility studies; design, specialised process engineering, electrical controls & instrumentation; and construction, process optimisation and debottlenecking.

Alcore is a 90%-owned subsidiary of Australian Bauxite, which has the global exclusive rights to the aluminium-related portion of CORE Technology (patent application). After six months of test work, Alcore has committed to the best strategy for the first commercial plant called “Refine & Recycle”, whereby by-products from aluminium smelters will be converted into aluminium fluoride to be sold back to the smelters as an essential electrolyte for smelting, it said.

“This strategy has highest profit and fastest growth potential worldwide.”

Plants can be replicated adjacent to aluminium smelters throughout the western world that seek higher environmental credits for recycling by-products, reducing emissions, lowering costs and reducing their dependence on imported aluminium fluoride, according to Alcore.

Alcore can refine two smelter by-products, one with high aluminium (~85% Al) and the second with high fluorine (~55% F), so that all aluminium fluoride components are freely available, it says.

Phillip Hall, Alcore’s Chief Operating Officer, said: “Clough is an ideal engineer for Alcore’s transition from the lab research stage to its first commercial plant. Clough’s long-term association with this technology augers well for good teamwork.

“Alcore is now fully-resourced on technology, having also appointed Dr Mark Cooksey, a senior CSIRO chemical engineer with over 22 years’ experience in the aluminium smelting industry.”

Alcore plans to build its first plant at Bell Bay, in Tasmania, Australia.

BHP’s South Flank on course for 2021 first iron ore deadline

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

Fluor says BHP’s $3.6 billion South Flank iron ore project, in the Pilbara of Western Australia, is on track for first ore in 2021, with the engineering firm having erected the first 1,500 t of modules in the ore handling plant.

This construction milestone is in the critical sequence to first ore and comes after achieving 50% project completion, announced by BHP in October 2019, Fluor said.

Fluor is providing engineering, procurement and construction management services on South Flank.

In December, Mammoet said it had started transporting the first heavy components for the under-construction mine, with around 1,900 items including prefabricated and modular mine processing plant units of various sizes set to be moved from Port Hedland to the new mine site.

When operational, South Flank will be one of the largest iron ore processing hubs in the world. The project will include an 80 Mt/y crushing and screening plant, an overland conveyor system and rail-loading facilities. The mine will replace production from BHP’s Yandi mine, which is nearing the end of its life.

South Flank engineering and procurement work is being performed from BHP’s office in Perth, with Fluor working together with BHP as an integrated project team, it said.

Tony Morgan, President of Fluor’s Mining and Metals business, said: “We are extremely proud of what we have been able to accomplish with BHP on this project including our commitment to achieve diversity through the hiring of indigenous and local team members.

“The pioneering integrated team approach on this project is truly a collaborative effort. We look forward to continuing our long and successful relationship with BHP on this project and beyond.”

Richard Gerspacher, Project Director, said: “Based on the project routines and culture we’ve created, I am confident that the project will continue to proceed in a positive manner as we work towards first ore.”

Fluor previously performed the feasibility study for the project before it was awarded the follow-on construction and project management scope. Over the life of the project, it is expected that more than 9,000 people will be engaged in the South Flank work force.

Construction began in July 2018 and first production of iron ore is anticipated in 2021.

EcoGraf and GR Engineering sign LOI for 20,000 t/y graphite facility

Energy minerals, Mineral processing, Mineral project development, Mining services, , , , , ,

EcoGraf has signed a letter of intent with GR Engineering Services for an engineering, procurement and construction (EPC) contract for the development of a 20,000 t/y battery-grade graphite facility in Western Australia.

The two companies expect to enter into a formal contract for the new, state-of-the-art manufacturing facility.

EcoGraf said the parties have been working to complete pre-development activities for the project and the company is finalising its arrangements with the Western Australian Government’s land development agency over a proposed 6.7 ha site in Kwinana.

The proposed development has a pre-tax net present value of $141 million, generating an internal rate of return of 36.6% and annual EBITDA of $35 million based on an upfront capital cost of $22.8 million for an initial 5,000 t/y of graphite, followed by a further $49.2 million to expand production to 20,000 t/y of battery graphite, according to EcoGraf.

EcoGraf says the development of the project is subject to a final investment decision, expected in the first half of the year.

Wood studies Coro Mining’s development options at Marimaca copper project

Base metals, Mineral exploration, Mineral project development, Mining services, , , , , , ,

Coro Mining says it has appointed Wood to advance engineering studies related to the development of its Marimaca copper project, in northern Chile.

The study announcement came at the as Coro announced a resource increase at Marimaca, which, the company said, established Marimaca as one of the largest copper oxide discoveries in northern Chile in over a decade.

The engineering studies are aimed at demonstrating the value to be captured by combining Marimaca’s significantly enlarged resource – now standing at 420,000 t of contained copper in the measured and indicated categories and 224,000 t in the inferred category – with “easy access to excellent infrastructure”, and move Coro from “a ‘cents per pound in the ground’ exploration project to a credible development company to be valued on a net present value basis”, Coro said.

Wood is set to take on a range of engineering studies to demonstrate the economics for a conventional full-scale project at Marimaca; and low capital expenditure (capex) alternatives for staged development at Marimaca, leveraging the nearby Ivan SX-EW plant (100% owned by Coro), according to Coro.

On the latter, Coro said: “The objective of staged development would be to minimise upfront capex and limit equity dilution to Coro’s shareholders.”

The company anticipates that the work from the various studies will be completed during 2020 and news will be released as work progresses.

A June 2018 feasibility study on just the Marimaca 1-23 Claim returned an after-tax internal rate of return of 58.8% and initial capital costs of $22.6 million for the upgrading and start-up of the Ivan plant, at a $3/lb ($6,614/t) copper price.

ÅF and Pöyry to move forward as AFRY

Mining mergers and acquisitions, Mining services, , , ,

Following a merger, completed on February 22, ÅF and Pöyry have decided to rebrand the joint company as AFRY.

AFRY is a leading company within engineering, design and advisory services, with its clients mainly within the infrastructure, industry and energy sectors.

ÅF was founded in 1895 and Pöyry in 1958 and, since the merger, the merged entity has become the biggest company in its sector in the Nordic region, and a global actor with almost 17,000 employees in offices in 50 countries and projects in 100 countries. This comes with an annual revenue of about SEK20 billion ($2.08 billion).

Jonas Gustavsson, President and CEO at AFRY, said: “Our focus on sustainability is strengthened and our position as a global company consolidated with the launch of AFRY. Given the exponential technological development we are facing, our services and solutions are more relevant than ever.”

Gustavsson added that in the last couple of years, the companies have experienced significant growth, with revenue doubling since 2015.

The company said: “The need for sustainable solutions is greater than ever in times of increased globalisation, urbanisation, digitalisation and climate change. At AFRY we drive the transformation, and, together with our clients, we are able to influence many parts of society through solutions that reduce our impact on the climate.”

With a new common brand and offer, the company says it has strengthened its position in its core markets of Sweden, Norway, Denmark, Finland and Switzerland, and grown internationally within, for example, the energy and process industries.

Primary Power acquisition to expand BESTECH mining and engineering reach

Mining mergers and acquisitions, Power supply for mines, , , , , , ,

BESTECH says it is building its power services business and mining engineering capacity through the acquisition of Primary Power Group.

The deal, which will also allow the engineering firm to expand into the Greater Toronto Area (GTA), will see the company achieve:

  • Strategic growth objectives in key markets – BESTECH’s multi-disciplinary engineering team serves clients in the GTA and has global clients who will be well-served by this expansion;
  • Continued business from Primary Power Group’s extensive client portfolio, which includes many of BESTECH’s clients, and;
  • Greater opportunities to provide power and mining engineering services, and to recruit talent in southern Ontario.

Primary Power was founded in 1993 and has been a leader in medium and high-voltage power distribution services and panel manufacturing for more than 25 years, according to BESTECH. It has previously worked on projects with Xstrata Nickel (now Glencore) and Vale Inco (now Vale) in Ontario.

BESTECH, meanwhile, recently spun off its technology solutions division and launched a new company, SHYFTinc.

Primary Power Group will integrate into BESTECH’s Power Systems division, led by Dino Titon, Power Systems Engineering Manager.

Alex Kesik, retiring President and GM of Primary Power, said: “It is with great confidence that we take this opportunity for our team members to work with a larger group and to provide even greater service to our valued clients. We anticipate many unique opportunities for continued innovation and advancement. We are very impressed with BESTECH’s vision and commitment to partnership at every level.”

Patrick Fantin, BESTECH’s Engineering Services General Manager, said: “Primary Power Group has developed an outstanding business and has a reputation for service and quality. They are well-regarded by our major clients for local substation designs. As a team, we see this expansion as a partnership among professionals who care about the work we do, and the clients and communities we serve.

“We are excited about what our combined talents and capabilities will mean for our global clients. It enhances our capacity, our presence, and provides a direct and seamless expansion into the GTA.”