Tag Archives: EPC

GR Engineering executes EPC contract for K92’s Kainantu gold mine process plant build

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GR Engineering Services says it has executed engineering, procurement and construction (EPC) contracts with K92 Mining Ltd, a subsidiary of TSX-listed K92 Mining Inc, for a 1.2 Mtpa process plant at the Kainantu gold mine in Papua New Guinea.

As announced on July 25, 2023, GR Engineering had previously received a Letter of Intent from K92 Mining Ltd. The contract’s sum is $81 million. Site mobilisation is expected to occur in January 2024.

Tony Patrizi, Managing Director of GR Engineering, said: “GR Engineering has a long track record of successful project delivery in the mineral processing sector. We see this contract award as a strong endorsement by K92 Mining Inc of GR Engineering’s proven process design record and EPC delivery capability.”

K92 Mining owns and operates Kainantu, a producing gold mine that has existing infrastructure at site. The EPC works are being performed as part of K92 Mining’s Stage 3 Expansion plans. It has successfully executed multiple expansions at the Kainantu gold mine, after restarting operations at the site in 2016.

GR Engineering cements Yangibana rare earth project EPC contract

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GR Engineering Services has been awarded an engineering, procurement and construction (EPC) contract with Yangibana Pty Ltd, a wholly owned subsidiary of Hastings Technology Metals Limited, for a beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

As previously announced on May 3, 2023, GR Engineering had entered into a binding term sheet with Yangibana Pty Ltd for these works.

The contract sum, including the provisional sum, is A$210 million ($138 million) as previously disclosed. This is made up of a fixed price component of A$180 million for the beneficiation plant and a provisional component of A$30 million mainly for the plant and tailings storage facility earthwork.

GR Engineering has commenced early works up to an agreed capped amount. The EPC contract is conditional on GR Engineering being issued with a commencement notice, which is dependent on Hastings finalising funding for the project as well as a number of other pre-conditions standard for an EPC contract.

Construction is planned to be complete in the March quarter of 2025 with first concentrate on truck in the June quarter of 2025

Under the A$210 million contract, GRES will design and construct the Yangibana beneficiation plant and all associated infrastructure, including engineering, manufacture, supply, installation, dry and wet commissioning, and testing of the facility over a period of less than 18 months. When completed, the plant will have a feed capacity of 1. 1 Mt/y and a rare earth concentrate output capacity of 37,000 t/y, Hastings says.

NRW’s Primero Group awarded major EPC contract for KCGM Growth Project

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NRW Holdings says its wholly owned subsidiary Primero Group Limited has entered into an EPC contract with Northern Star Resources Limited for its KCGM Growth Project in Kalgoorlie, Western Australia.

The execution of the engineering, procurement and construction contract follows an extensive program of work to define the scope, cost and schedule, according to NRW. Under the agreement, Primero will be responsible for the design, procurement, construction and commissioning of the process plant facilities, with the commercial model for delivery an “Incentivised Target Cost”.

The EPC contract has an approximate value of A$973 million ($647 million). The contract is scheduled for completion by the September quarter of 2026.

Last month, Northern Star announced the final investment decision on the KCGM Mill Expansion project, agreeing to invest A$1.5 billion to boost the mill’s capacity to 27 Mt/y, from 13 Mt/y. Included within this is 20 MW grinding mills – the highest powered, gear-driven mills in the world – and the first gear-driven 28 ft (8.5 m) diameter ball mill, according to FLSmidth.

Primero participated in a competitive early contractor involvement (ECI) program from January 2022 and has worked with the Northern Star project team to develop a technically-superior design that will bring operating benefits to the Fimiston processing plant, it says. Following the ECI program, Primero was engaged to undertake further value engineering and scope development.

Primero’s Managing Director, Michael Gollschewski, said: “The execution of the KCGM Growth Project is the culmination of an 18-month journey with Northern Star. The work conducted to date to develop the capital cost, design, execution strategy and schedule for the project, has been one of the most comprehensive and rigorous ECI programs we have participated in. The effort of the combined teams to define this key project has provided a solid foundation for a safe, efficient and successful delivery.”

NRW’s Managing Director, Jules Pemberton, said: “This EPC contract reinforces Primero’s reputation as a leading provider of world class engineering and construction services. This
project showcases Primero’s full range of in-house capability. I look forward to developing a long-term relationship with one of the industry’s leading gold producers.”

GR Engineering books A$210 million EPC beneficiation plant order for Yangibana rare earths project

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GR Engineering Services says it has entered into a binding term sheet with Yangibana Pty Ltd, a wholly-owned subsidiary of Hastings Technology Metals Limited, for the engineering, procurement and construction (EPC) of the beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

The project is approximately 250 km north east of Carnarvon.

Hastings said the plant will have a feed capacity of 1 Mt/y and a rare earth concentrate output capacity of 35,000 t/y of rare earth mineral concentrate at a grade of 27% total rare earth oxides.

GR Engineering and Hastings have agreed the material terms of the EPC contract in the binding term sheet. The EPC contract for the works will be finalised shortly and GR Engineering will commence early works. If the EPC contract is entered into, it is expected that the contract sum, including provisional sum, will be A$210 million ($140 million).

Tony Patrizi, Managing Director of GR Engineering, said: “GR Engineering is pleased to have received the binding term sheet for this world-class rare earths project in the Gascoyne region of Western Australia. It will be exciting to work on this project as it is focused on globally critical minerals that are used as key components for electric vehicles and wind turbines.”

NioCorp progresses to first phase of Elk Creek EPC contracting with Zachry Group pact

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NioCorp Developments Ltd has executed a contract with Zachry Group to develop a cost for the surface facilities associated with NioCorp’s Elk Creek critical minerals project in Nebraska, USA.

The contract represents the first phase of engineering, procurement and construction (EPC) contracting for the $1.2 billion project, the company says.

NioCorp had previously selected Zachry, one of the world’s leading turnkey engineering, construction, maintenance, turnaround and fabrication companies, as its EPC firm for the project’s surface facilities.

“We are very pleased to take this important next step with Zachry as it positions NioCorp to advance to a construction start following receipt of sufficient project financing,” Mark Smith, Chairman and CEO of NioCorp, said. “Zachry is a highly respected company with an excellent track record of success in large projects such as ours, and I am pleased to continue our partnership with Zachry as we work together to bring the Elk Creek Project to commercial reality.”

Scott Honan, NioCorp’s Chief Operating Officer, added: “Zachry has a large craft workforce and a strong presence in Nebraska. Together with our long relationship with the Zachry team, this makes for a great fit with the Elk Creek project. Having spent time at Zachry’s offices and multiple project sites, I am confident that Zachry can execute their scope of work on our project in a safe, timely, and cost-effective manner.”

Ralph Biediger, EPC President, Zachry Group, said: “We are excited to work with NioCorp to support the development of critical minerals that will help the United States transition to a lower-carbon economy. We look forward to bringing our decades of EPC experience to bear on this vitally important project and continuing our long-term presence in Nebraska.”

A 2022 feasibility study outlined a project able to process 36.7 Mt of of ore over a 38-year life of mine to produce 171,140 t of niobium in the form of ferroniobium, 3,676 t of Sc2O3 and 431,793 t of TiO2. Rare earths have been added to the mineral resource, and the indicated resource contains 632,900 t of total rare earth oxides.

Asiamet engages BGRIMM for SX-EW plant engineering and procurement work at BKM

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Asiamet Resources Limited says it has signed a Memorandum of Understanding (MoU) with BGRIMM Technology Group (BGRIMM) in relation to the engineering and procurement of the solvent extraction and electrowinning (SX-EW) plant for the BKM copper project processing facility in Indonesia.

BGRIMM is a leading Chinese engineering, procurement and construction (EPC) group providing services to the mining industry worldwide.

The MoU will see the two companies, alongside Asiamet’s consulting engineer, NewPro Consulting & Engineering Services Pty Ltd, work on the detailed design information for all equipment packages that BGRIMM has provided cost estimates for as part of the current BKM copper project feasibility study update.

BGRIMM will also complete a detailed cost estimate for an EPC Technical Supervision scope of work for the project’s SX-EW processing plant, which will be used in the FS update capital cost estimate. Upon successful completion of this update and a positive final investment decision by the Asiamet Board, the company will engage with BGRIMM on the provision of a complete engineering and procurement service contract for the SX-EW plant. This will include the supply of all necessary equipment for the SX-EW plant and coordination with suppliers of materials from within Indonesia.

Asiamet will also work with BGRIMM to develop the technical construction supervision requirements for the SX-EW plant when moving into the execution phase as well as commissioning services as required.

The SX-EW plant is a critical component of the BKM processing facility as it delivers the processes of metal purification and copper metal production, Asiamet said. It can be considered a discrete facility with well-defined battery limits, therefore is suitable for delivering as an engineering and procurement package.

Darryn McClelland, Asiamet CEO, added: “BGRIMM have already assisted our engineering consultants NewPro with various equipment pricing used in the FS update capital expenditure estimate as well as costs for executing the engineering and procurement services necessary for delivery of the SX-EW plant.

“Capital cost is a critical component of the feasibility of the BKM copper project and working with BGRIMM is one of a number of opportunities we have taken to help control cost and mitigate the inflationary backdrop seen in 2022. BGRIMM have a strong track record of delivering cost effective engineering and designs for SX-EW plants of the size we are proposing for the BKM copper project and we are very keen to tap into this experience. Asiamet looks forward to developing a strong working relationship with BGRIMM through involvement in the development of the BKM copper project, along with future development opportunities that are likely to arise from the broader KSK Contract of Work.

“Final discrete elements for the delivery of the updated Feasibility Study are nearing completion and we look forward to delivering on this in the near term and critically presenting a project with overall robust economics and attractive cashflow generation.”

A 2022 feasibility study on BKM outlined a maximum 4.5 Mt/y treatment rate from a nine-year heap leach SX-EW operation.

MACA to refurbish Three Mile Hill processing plat at Focus’ Coolgardie gold project

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MACA Interquip has been awarded a A$39.7 million ($26.3 million) engineering, procurement and construction (EPC) contract for the refurbishment of the Three Mile Hill (TMH) processing plant at the Coolgardie gold project, in Western Australia.

Focus Minerals, the owner of the project, paused production in 2013 in response to lower gold prices to concentrate on the exploration of the wider Coolgardie area, yet, with operations now resuming, MACA Interquip is scheduled to reach commissioning of the refurbished plant by mid-2023.

MACA General Manager, Ben Thomas, said the MACA Interquip team have begun site works with the construction team ramping up throughout November. “The TMH plant will be refurbished to safely operate at its original nameplate of 120,000 tonnes per annum. We look forward to delivering value for our client, Focus Minerals.”

Focus issued a new life of mine plan for the Coolgardie gold project, in October, outlining a plan to produce 402,000 oz of gold over a seven-year mine life.

GR Engineering bolsters EPC scope at IGO’s Cosmos nickel operations

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GR Engineering Services says it has increased the scope of work related to the engineering, procurement and construction contract with Australian Nickel Investments Pty Ltd, a wholly owned subsidiary of IGO Limited, for the upgrade of the existing nickel concentrator at the Cosmos nickel operations, in Western Australia.

The company has been awarded a variation by IGO to further increase the throughput of the nickel concentrator at the project from circa-750,000 t/y to 1.1 Mt/y. This will bring the contract sum to A$76 million ($49 million), it said.

Geoff Jones, GR Engineering Managing Director, said: “GR Engineering has a long history of working with the IGO management team and is pleased to be awarded with this variation. GR Engineering looks forward to safely and successfully completing this important project.”

IGO’s CEO, Matt Dusci, added: “IGO is pleased to be working with GR Engineering on the Cosmos project after the previous successful collaboration on Nova.”

Following the acquisition of Western Areas Limited on June 20, 2022, IGO commenced work toward developing a project optimisation strategy and plan designed to deliver higher production rates for the life of the operation and a more safe and sustainable mine plan at Cosmos. The increased plant throughput strategy was part of this.

IGO is currently developing the Odysseus underground mine at Cosmos, with plans to deliver high quality nickel concentrates into the global market.

Sedgman formally awarded EPC contract for Artemis’ Blackwater gold project

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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

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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.