Tag Archives: EPC

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

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

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

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

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.