Tag Archives: EPC

Sedgman formally awarded EPC contract for Artemis’ Blackwater gold project

CIMIC Group’s mineral processing company, Sedgman, has been awarded an engineering, procurement and construction (EPC) contract to deliver services for Artemis Gold at the Blackwater gold project in British Columbia, Canada.

The EPC contract, which supersedes the temporary interim service agreement announced on May 2, 2022, will generate revenue for Sedgman of C$318 million ($245 million).

Sedgman will design and construct the processing and non-processing infrastructure for a 6 Mt/y carbon-in-leach gold plant at the project.

Even before this announcement, Sedgman had made good headway on the project, executing an agreement with Metso Outotec to secure supply and delivery of crushing and grinding equipment for the processing plant.

The project schedule as laid out by Artemis supporting the EPC contract with Sedgman includes the following assumptions:

  • Receipt of the BC Mines Act and related permits in the Fall of 2022;
  • Construction mobilisation and major works preparations commence in the March quarter of 2023 with process plant bulk earthworks scheduled to be completed prior to the start of major works;
  • Commissioning activities of the process facility to commence in the firts half of 2024; and
  • First gold pour expected in the September quarter of 2024.

CIMIC Group Executive Chairman, Juan Santamaria, said: “Sedgman and Artemis have already commenced initial design and procurement work at the project, helping Artemis to unlock the value of this key gold project and work towards its first gold pour in 2024.”

Sedgman Managing Director, Grant Fraser, said: “We are pleased to be working with Artemis Gold on this exciting project and look forward to continuing our strong working relationship to ensure successful outcomes for both Sedgman and Artemis.”

Work is expected to be completed in the September quarter of 2024.

Artemis has said previously that Stage 1 development at Blackwater should lead to the building of a 6-9 Mt/y operation (6 Mt/y in years 1-4 and 9 Mt/y in year 5) able to produce around 312,000 oz/y of gold.

Kore Potash progresses Kola mine development plans, signs SEPCO agreement

Kore Potash says it has signed a Heads of Agreement (HoA) with SEPCO Electric Power Construction Corporation for the construction of the Kola potash project in the Republic of Congo.

The HoA recognises the recent Kola optimisation study outcomes, which recently confirmed its potential to produce 2.2 Mt/y of granular muriate of potash over an initial 31-year life.

Brad Sampson, Chief Executive Officer of Kore Potash, said the HoA with SEPCO reconfirms the Chinese company’s commitment to advance from the completed Kola optimisation phase, to construction contract formation and then into construction of Kola.

“We look forward now to receiving the EPC (engineering, procurement and construction) contract proposal,” he said.

The Kola optimisation study outlined a project with a capital cost of $1.83 billion on an EPC basis. It also envisaged a 40-month construction period.

Kola is designed as a conventional mechanised underground potash mine with shallow shaft access. Ore will be extracted within ‘panels’, using continuous miners of the drum-cutting type. The mine design adopts a relatively typical layout including panels, comprised of rooms and pillars.

The mine design is based on a minimum mining height of 2.5 m with mining being undertaken by a continuous miner capable of mining seam heights of between 2.5-6 m. Each panel is accessed by four entries. Each entry is 8-m wide and 3-6-m high depending on the seam height. The rooms are mined in a chevron pattern at an angle of 65° from the middle entry, each with a length of approximately 150 m.

Mine access is provided by two vertical shafts, each 8 m in diameter. The shafts will be sunk near the centre of the orebody. To provide access to the underground, the intake shaft will be equipped with a hoist and cage system for transportation of persons and material. The exhaust shaft will be equipped with a pocket lift conveyor system to continuously convey the mined-out ore to the surface. Both shafts are approximately 270-m deep in the plan.

Mining equipment selected for Kola includes a fleet of seven electrically-powered continuous miners. Ore haulage from the continuous miners to the feeder breaker apron feeder will be done using electrically-powered shuttle cars, with a rated payload of 30 t and a 250 m power supply cable. Underground conveyor belts will be used for ore transportation to the shaft.

The belt conveyors are distributed in the haulages and into the working panels near the continuous miner working face. The ore will be placed on the belts from feeder breakers that are fed by the shuttle cars. Belt conveyors will carry the ore loaded by the feeder breakers to the ore bins. The ore is then conveyed from the ore bins to the vertical conveyor (pocket lift) system located in the exhaust shaft.

Ore from underground is transported to the process plant via an overland conveyor approximately 25 km long. After processing, the muriate of potash product is conveyor-transported 11 km to the marine export facility. The potash is conveyed from the storage area onto barges via the dedicated barge loading jetty and then trans-shipped into ocean going vessels for export.

Bellevue Gold tasks GR Engineering with process plant build

Bellevue Gold Limited has awarded GR Engineering Services Limited engineering, procurement and construction (EPC) work related to the 1 Mt/y gold processing plant and associated infrastructure for its namesake project in Western Australia.

GR Engineering will immediately commence design engineering services and ordering of long lead and design critical path equipment including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners, prior to entering into a formal EPC contract.

Geoff Jones, Managing Director, said: “GR Engineering is pleased to be working with the Bellevue team on this exciting gold project. This project further enhances GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Bellevue Managing Director, Steve Parsons, said GR Engineering knew the project well from its work during the study phase.

“Commencing manufacturing of these long-lead critical components of our 1 Mt/y processing plant de-risks the construction schedule and puts Bellevue on the pathway to first gold in the second half of 2023.

“The appetite among leading contractors and suppliers to be involved with our project speaks volumes about its strong future.”

Bellevue is forecasting production of 200,000 oz/y during years one to five at an all-in sustaining cost of A$922/oz ($653/oz) at its operation.

Artemis awards Blackwater gold EPC contract to Sedgman Canada

Artemis Gold Inc says it has made an award for the engineering, procurement, construction and commissioning (EPC) scope of works for the processing plant and associated infrastructure at its Blackwater project in British Columbia, Canada, to Sedgman Canada Limited, a CIMIC Group company.

The award amount of approximately C$312 million ($243 million) is consistent with the prescribed budget for the process plant and selected infrastructure scope of works in the 2021 feasibility study.

Sedgman Canada Limited is a wholly owned subsidiary company of Sedgman Pty Limited, a CIMIC Group company. CIMIC Group (ASX:CIM) is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of assets, infrastructure and resources projects.

The EPC contract is expected to be executed by June 30, 2022, with the contract supported by performance security including bank letters of credit, which will underwrite the financial performance and obligations of the contractor under the contract.

While the parties finalise the definitive EPC contract, in order to maintain the project schedule, an interim services agreement has been agreed which could cover procurement and pricing of long lead equipment and optimisation through refined scope changes, among other aspects.

The project schedule supporting the award to Sedgman includes the following assumptions:

  • Construction mobilisation and major works preparations commence in Fall 2022 with process plant bulk earthworks scheduled to be completed prior to the start of major works;
  • Commissioning activities of the process facility to commence in Q1 (March quarter) 2024; and
  • First gold pour expected in the first half of 2024.

The final EPC contract terms will provide for potential cost adjustments of certain components of construction representing approximately less than 15% of the total contract amount, including the potential for cost adjustments from further quantity definition, Artemis said. Standard adjustments, including currency exchange rates for certain equipment purchases also apply, and further optimisation of the processing plant with final engineering will occur.

Artemis is also considering awarding additional construction packages under an EPC agreement type structure to further enhance the risk management of the total capital expenditure for Blackwater, it said.

When combined with the EPC for the Power Transmission Line announced on August 18, 2021, the percentage of the estimated total capital expenditure for Blackwater under EPC is on track to target circa-60% of the initial Stage 1 development capital of C$645 million in a lump sum EPC type arrangement by the September quarter of 2022.

Stage 1 development should lead to the building of a 6-9 Mt/y operation (6 Mt/y in years 1-4 and 9 Mt/y in year 5) able to produce around 312,000 oz/y of gold.

Steven Dean, Chairman and CEO, said: “The award of the EPC job for the process plant at Blackwater is another significant milestone for Artemis, reflecting a competitive process involving multiple bidders. We are very pleased to be working with a world-class engineering firm in Sedgman. In partnership, we will work to finalise the design and engineering of the Blackwater project in advance of a start of major development activities. Blackwater remains on track for a start of major construction activities following receipt of Mines Act and other permits in Fall 2022 with a first gold pour in H1 2024.”

Rio’s WTS2 iron ore project hits first ore milestone, Mondium says

Mondium says first ore has been achieved at Rio Tinto’s Western Turner Syncline Phase 2 project (WTS2) in Western Australia.

Rio Tinto awarded Perth-based Mondium a A$400 million ($276 million) contract to design and construct the mine in early 2020. This saw the company, a joint venture involving Monadelphous and Lycopodium, undertake all engineering and design, procurement and site construction works associated with the WTS2 development, including the process plant, overland conveyor and non-process infrastructure.

Celebrating the achievement, Mondium said it was a significant achievement for its EPC team, Rio Tinto and delivery partners.

It added: “593 days and more than two million site hours worked culminated in the first loader bucket tipping high-grade ore into the WTS2 run of mine bin. Forty minutes later, the ore was discharged to the WTS1 belt and delivered to the Tom Price stockpiles.”

Back in November 2019, Rio said it would invest $749 million in the development of WTS2 at its Greater Tom Price operations, facilitating mining of existing and new deposits and including construction of a new crusher as well as a 13 km conveyor. In addition to this, the haul truck fleet at the mine would be fitted with Autonomous Haulage System technology to enable autonomous haulage. This fleet has since been commissioned.

Primero bags Finniss lithium process plant EPC contract

Core Lithium has awarded Primero Group with the engineering, procurement and construction (EPC) contract for the Finniss lithium process plant in the Northern Territory of Australia.

Primero’s award status has been updated from the initial preferred status awarded in 2019 and continues the long-standing relationship in the development of the project with the Core Lithium team and follows on from the successful delivery of Core’s definitive feasibility study and subsequent study updates, NRW Holdings, the parent company of Primero, says.

The project will commence immediately and is fully funded with site works planned to commence in March 2022 with commissioning of the facility due to commence in October 2022, according to NRW.

Primero’s work on the Finniss dense media separation (DMS) plant will entail project management; engineering and detailed design; equipment and materials procurement; DMS plant construction; quality assurance and construction verification, and ore commissioning on receipt of first ore, according to Core.

Primero Managing Director, Cameron Henry, says: “The Primero brand is synonymous with the processing and operation of battery metals and future energy and the Core Lithium project is another example of the quality of our processing knowledge in these industries. The working relationship with the Core team has been a four-year journey and we look forward to delivering on this contract and continuing the relationship with Core.”

NRW CEO, Jules Pemberton, added: “The NRW Holdings business continues to diversify its business streams into the future metals and energy space with another great award to the Primero Group team in the electric vehicle space with Core Lithium.”

The August definitive feasibility study on Finniss outlined a Stage 1 mine life of eight years with average production of 173,000 t/y at 5.8% Li2O.

Enter Engineering, thyssenkrupp to tackle Tebinbulak iron ore deposit in Uzbekistan

Enter Engineering and thyssenkrupp AG have signed an Agreement of Intent that could see the engineering procurement and construction (EPC) contractor take the exclusive role as construction partner in building an integrated mining metallurgical complex at the Tebinbulak iron ore deposit in Uzbekistan.

The pact, worth €50 million ($58 million), comes on top of a signed agreement for the start of preparatory work on the project, including a contract for the supply of equipment, its design, supervision during installation and commissioning at the facility.

The high pressure grinding roll (HPGR) technology will be used to help process up to 60 Mt/y of iron ore, according to the EPC firm.

The implementation period for Enter Engineering’s construction role is two years with the plant launch anticipated for September 2023.

Bakhtiyor Fazylov, Chairman of the Board of Directors of Enter Engineering, said: “We are delighted to partner with a leading global company such as thyssenkrupp. Applying German standards, we will create a high-quality raw material base for the domestic metallurgical industry. This project also embodies all the goals Enter Engineering strives for: protecting Uzbekistan’s national interests in the international market, supporting the interests of domestic consumers and creating jobs.”

Reza Poorvash, CEO thyssenkrupp Mining Technologies Europe and Asia, said: “To date, more than 140 units of HPGR equipment have been sold in the mining industry. In the CIS countries, thyssenkrupp takes a leading position among mining companies that use this technology, in practice confirming the high quality and reliability of the German brand.”

Roman Karl, Managing Director thyssenkrupp Mining Technologies CIS, added: “We are delighted to partner with such a well-known company in Uzbekistan as Enter Engineering, who have a long track record of successful execution in major engineering construction projects.

“The project will use one of the most energy efficient and innovative technologies to significantly reduce energy consumption. HPGR has been used since 1985 in the cement industry, and since 1986 in the mining industry for use in the grinding process to ensure a high level of product fineness. Full integration of this technology within Industry 4.0 is also important.”

The Tebinbulak complex is significant for Uzbekistan because of its multiplier effect. As well as creating new jobs in remote areas, it will help develop domestic iron ore to provide the country’s existing metallurgical complexes with raw materials. It will also support development of infrastructure, creation of service enterprises and an increase in trade between countries.

Tebinbulak is located in the Karauzyak district of Karakalpakstan, in the north-west part of Uzbekistan. The field covers 5.2 sq.km and comes with a predicted mine life of 27 years.

Cooperation between Enter Engineering and thyssenkrupp is supported at a high inter-governmental level, with the agreement signing ceremony attended by Alisher Sultanov, Uzbekistan’s Minister of Energy.

GR Engineering captures A$90 million of EPC contracts from Galena Mining

GR Engineering Services has been given the notice to proceed with the engineering, procurement and construction (EPC) of a 1.2 Mt/y lead sulphide flotation processing plant at Galena Mining Limited’s majority-owned Abra base metals project in Western Australia.

The contract, which follows a conditional agreement from February 2020, comes with a value of A$79.5 million ($59 million) to be realised predominantly in GR Engineering’s 2022 financial year.

In addition, Abra Mining has also awarded GR Engineering an EPC contract to relocate, refurbish and commission the Abra Mining-owned Higginsville paste plant. The value of this contract is a further A$10 million.

Geoff Jones, Managing Director, said: “GR Engineering looks forward to continuing its solid working relationship with the Abra Mining team on the delivery of the project and supporting Abra Mining as it becomes the next Australian base metals producer.”

Primero rewarded with circa-A$290 million Mt Holland lithium concentrator contract

NRW Holdings’s wholly owned subsidiary Primero Group has been awarded the engineering, procurement and construction (EPC) contract related to the Mt Holland concentrator project in Western Australia for Covalent Lithium, a joint venture between Wesfarmers and SQM.

The Mt Holland project has been worked on in various development phases over the past 18 months between the Covalent and Primero teams, with the planning and works now culminating in the full award of the circa-A$290 million ($214 million) EPC delivery contract, NRW said.

Primero has been awarded the EPC contract that will process ‘run of mine’ ore at a rate of circa 2 Mt/y and produce an output of circa 400,000 t/y of spodumene concentrate to feed the company’s integrated lithium hydroxide conversion refinery situated in Kwinana.

The project scope covers the vertical delivery of engineering design of all disciplines, procurement of all equipment and materials, site construction, commissioning and performance testing of the spodumene concentrator at the Mt Holland site.

The full execution will commence immediately with site works planned to commence in October and an expected peak workforce of 350 personnel, NRW said.

Primero Managing Director, Cameron Henry, said: “The award of the Mt Holland EPC contract is the culmination of an 18-month journey with the Covalent Lithium team and demonstrates the trust and solid working relationship between the groups in the development of the project. This project is not only a flagship project for Primero and our parent company, NRW Holdings, but also a major project for Western Australia and the further development of the state’s battery minerals supply chain.”

NRW CEO, Jules Pemberton, added: “We are pleased to see the continued growth of the Primero business and, in particular, the scale of projects and quality of clients they continue to attract to the group.

“The project has created opportunities for the combined businesses and provides a great platform for other clients to understand the depth, capability and capacity of the group as a whole from early project inception and feasibility through turnkey multi-discipline delivery and further.”

NRW Holdings recently acquired Primero in a cash and shares deal valuing Primero at around A$100 million.

GR Engineering wins Mt Ida EPC contract from Aurenne Alt Resources

GR Engineering Services says it has executed an engineering, procurement and construction (EPC) contract with Aurenne Alt Resources Pty Ltd in relation to the Mt Ida gold project in Western Australia.

Mt Ida, which Aurenne inherited with the acquisition of Alt Resources last year, is in the eastern goldfields of the state.

GR Engineering said the contract sum is approximately A$73 million ($54 million) and work is expected to start immediately.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have been awarded the EPC contract by Aurenne and we look forward to working collaboratively with the Aurenne team. This project further reinforces GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Alt Resources previously outlined the need for a 750,000 t/y processing facility at Mt Ida in a 2020 feasibility study prior to being acquired by Aurenne.