Tag Archives: EPC

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.

Primero Group to take on EPC contract at Rio’s Koodaideri iron ore mine

Mine operation news, Mineral processing, Mineral project development, Mining services, Precious metals, Steel and iron ore, , , , , , , , , ,

Primero Group has secured a A$115 million ($79 million) contract with Rio Tinto’s iron ore division that will see it design, fabricate, supply, deliver, construct, install, test and commission the Mine Infrastructure Area and associated facilities at the Koodaideri iron ore project in the Pilbara of Western Australia.

The scope includes the complete engineering, procurement and construction (EPC) contract of the facilities for this project, which will commence immediately and is scheduled to be completed in mid-2021.

Primero says it expects to employ a workforce of over 150 personnel at its peak.

Koodaideri, billed by Rio as an “intelligent mine”, will deliver a new production hub for Rio’s iron ore business in the Pilbara, incorporating a processing plant and infrastructure including a 166 km rail line connecting the mine to the existing network.

Construction on Koodaideri Phase 1 started this year with first production expected in late 2021. Once complete, the mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

In addition to mine infrastructure and the accommodation camp, an airport and mine support facilities will be built. Throughout the construction period, Rio expects to employ over 2,000 people with 600 permanent roles created once the mine is operational.

In addition to the Koodaideri work, Primero said it had been awarded Phase 2 of the proposed processing upgrade, on an engineering, procurement and construction management (EPCM) basis, for Northern Star Resources’ Pogo gold mine, in Alaska, USA.

The works will be conducted predominantly from Primero’s Americas Montreal (Canada) office with works progressively executed this winter to ensure construction windows are met in the summer period, it said.

The upgrade works will increase throughput of the current processing facility from 1 Mt/y to 1.3 Mt/y by January 2021, with the potential to move to a Phase 3 (1.5 Mt/y) over the coming years.

Primero said: “Works are set to progress over the next 12 months including detailed design and equipment procurement with the planning for on-site works commencing over the winter period to be executed in the warmer months, post winter.”

The award of the project is the first major contract with Northern Star Resources, Primero added.

Northern Star acquired Pogo, the company’s first mine outside of Australia, from Sumitomo Metal Mining late last year for $260 million.

Ausenco to take First Mining shares for Springpole PFS work

Mineral exploration, Mineral project development, Mining project news, Mining services, Precious metals, , , , , , ,

First Mining Gold and Ausenco Engineering Canada recently entered into an agreement that will see the engineering firm complete a prefeasibility study (PFS) on the Springpole gold project, in north-western Ontario, Canada.

As part of the pact, Ausenco has elected to receive shares of First Mining as consideration for its engineering services, First Mining said.

Ausenco has significant experience in the study and execution of projects similar to Springpole, according to First Mining, with substantial recent experience in eastern Canada including the feasibility study (FS) and subsequent engineering, procurement and construction execution of the Moose River Consolidated gold project for Atlantic Gold, Marathon Gold’s Valentine Lake PFS and Anaconda Mining’s Goldboro FS.

The Springpole PFS follows on the back of an updated preliminary economic assessment on the project, which outlined a 36,000 t/d mine and mill capable of producing an average of 410,000 oz/y ounces of gold in years 2-9 of the 12-year mine life.

Dan Wilton, CEO of First Mining, said the agreement marks a key milestone in the project’s development and “goes hand-in-hand with our focus on de-risking Springpole and advancing the project through the environmental assessment process”.

He added: “Ausenco is one of the strongest partnerships we could have formed for this next step of development, given their proven track record, not just in delivering rigorous technical studies, but also in project delivery, construction and operations. Ausenco becoming a shareholder of First Mining demonstrates the strong belief by one of the premier mining-focused engineering firms in the technical merits and development potential of Springpole.”

Worley to leverage Arundo’s AI capabilities for EPC work

Automation, IoT, Mining services, Mining software, , , ,

Worley, an EPC energy, chemicals and resources sector leader, and software company, Arundo, have launched The Data Refinery, a hub for applied data science and machine learning solutions.

“The Data Refinery combines Worley’s industry experience with the software and data science expertise of Arundo,” the companies said. Its focus is to bridge the gaps among operations, data science and information technology to help industrial companies transform their businesses through data-driven decisions. “This ultimately helps companies increase revenue, reduce costs, and improve uptime, as well as reduce safety and environmental risks,” they said.

For the past several months, joint teams from Worley and Arundo have used The Data Refinery, located in downtown Houston, Texas, as a space to incubate and develop analytics applications that meet the needs of Worley and its customers.

“There’s never been a more exciting time for the energy and resources market as it moves towards a greater reliance on artificial intelligence and machine learning,” said Bradley Andrews, President, Digital at Worley. “Arundo is at the forefront of data science and machine learning technology, delivering value to companies in 90 days or less. By harnessing our industry and asset experience with their proven technology, The Data Refinery helps companies identify the right problems to solve and gives them the confidence to embed artificial intelligence and machine learning into their operations.”

The first product launched via The Data Refinery is DataSeer, a product that automates the extraction of information from piping and instrumentation diagrams, isometric drawings, and other engineering diagrams.

“Using deep learning and computer vision techniques, DataSeer can recognise all instances of specific instruments, valves, lines, and other features in a diagram in just seconds,” the companies said. This has immediate applications in bid production and project estimation.

In addition, DataSeer can improve digital representations of physical systems, and help industrial companies create relevant, usable digital twins for a variety of advanced analytics and operational applications.

Stuart Morstead, Arundo President & COO, said: “With DataSeer, users are already seeing a reduction in manual processing time of up to 90%. At the same time, accuracy is increasing, enabling significant improvement across a variety of project engineering use cases.

“Worley and Arundo believe this capability can significantly improve core EPC processes, major projects at industrial companies, and the management of engineering diagrams at any company with both legacy and new specifications.”

Concurrent with the launch of the DataSeer application, Worley is also launching DataSeer Managed Service for customers seeking the turnkey digitisation of legacy industrial drawings.

NioCorp adds Zachry Group to EPC mix at Elk Creek project

Energy minerals, Mining services, , , , ,

NioCorp Developments says it has selected Zachry Group as the engineering, procurement, and construction (EPC) firm for the surface processing facilities and associated infrastructure of the proposed Elk Creek Superalloy Material project, in Nebraska, USA.

The agreement, subject to the completion of EPC contract negotiations, comes on top of NioCorp selecting Cementation USA as the lead EPC contractor for the underground aspects of Elk Creek as well as saying it intended to engage The Nordmin Group of Companies to provide engineering services for the project.

The development of the project will require significant additional capital above what NioCorp has raised to date, the company said, adding that “any significant work on the project pursuant to an agreement with Zachry will be contingent on obtaining sufficient project financing, if and when available”.

Based in San Antonio, Texas, and with an engineering office in Omaha, Nebraska, Zachry has been engaged on the project since 2014 and is currently working under an Engineering Services Agreement with NioCorp.

Cementation and Nordmin get the honours at NioCorp’s Elk Creek project

Energy minerals, Industrial minerals, Mineral project development, Mining services, Water management, , , , , , , ,

NioCorp Developments says Cementation USA, part of the Cementation Americas Group, has been selected as the lead engineering, procurement, and construction (EPC) contractor for the underground aspects of the proposed Elk Creek Superalloy Material project in Nebraska, USA.

In addition, the company announced that it intends to engage The Nordmin Group of Companies to provide engineering services for the project.

Based in Sandy, Utah, Cementation is a mining- and minerals-focused group of companies, delivering both underground and surface solutions for mines and downstream minerals processing facilities worldwide.

Negotiations towards a formal EPC agreement between NioCorp and Cementation will be initiated in the near future, according to NioCorp.

“Cementation provides broad expertise in both mine construction and mine engineering, and has a solid track record in safely executing on mine development projects around the world,” Mark A Smith, CEO and Executive Chairman of NioCorp, said. “We look forward to working with their team to build one of the few greenfield underground mine developments in North America, and to a long and mutually beneficial relationship.”

The superalloy materials project in southeast Nebraska will produce niobium, scandium, and titanium: superalloys that make steel lighter and stronger, can, when combined with aluminium make alloys with increased strength and improved corrosion resistance, and is a key component of pigments used in paper, paint and plastics, respectively.

Cementation’s Robert Gripper, EVP Contracting, USA, said: “It’s encouraging to see an owner embrace the EPC approach. We understand that mine owners are looking for engineering that adds value through the use of best practices and accounts for constructability and operability, and a construction team that is aligned with the engineer and owner. Such an approach lends itself to this.”

Nordmin, meanwhile, has demonstrated its expertise in designing an improved mine plan for the project, along with an innovative interpretation of the geologic resource and a sound plan for managing bedrock groundwater associated with the mine, according to NioCorp.

NioCorp said: “The company anticipates that any significant additional work on the project by Nordmin will be contingent on obtaining additional project financing, if and when available.”

Black & Veach to manage refinery build for PT Borneo Alumina in Indonesia

Base metals, Industrial minerals, Mine operation news, Mining services, , , , , ,

PT Borneo Alumina Indonesia has appointed a Black & Veatch-led project management consortium (PMC) to develop an alumina refinery in West Kalimantan.

The facility, the first of its kind in Indonesia, according to Black & Veatch, will feature a 1 Mt/y smelter-grade alumina refinery, a 2 x 40,000 cu.m/h coal gasification plant and a 3 x 25 MW coal-fired power plant.

As the consortium leader, Black & Veatch will perform design review, equipment inspections, and provide power and coal gasification subject matter expertise. Consortium partner Progesys will be managing the alumina refinery process design scope, while another partner, Jaya CM, will be supporting the project with site construction engineers and inspectors.

Progesys is a minerals industry engineering company based in Canada, while Jaya CM is an Indonesia-based construction management company.

“As the project consultant, the consortium is responsible for evaluating engineering, procurement and construction bids and reviewing design engineering,” Black & Veatch said. The consortium will monitor major equipment supply and conduct factory acceptance tests. It will also oversee site construction and commissioning.

Jim Spenceley, Senior Vice President, Mining, Black & Veatch, said developing the downstream mineral processing industry will expand the Indonesia economy and create jobs. “Black & Veatch is ready to leverage our global expertise across business units to support as PMC overseeing our client’s Chinese engineering, procurement and construction contractor to ensure that the client realises the quality, safety and value they are seeking.”

Black & Veatch’s knowledge of international and country-specific engineering codes and standards, and contract structures systematically mitigates project cost and schedule risks, according to the company. “By serving as the interface between different engineering standards, Black & Veatch offers clients assurance that EPC contractors deliver on specific project commitments cost effectively.”

AVEVA project delivery software to unlock mining EPC cost benefits

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AVEVA has introduced integrated engineering software designed to help customers transform the way capital projects are engineered, executed and integrated into operations and maintenance, it says.

The integrated portfolio comprises three software solutions: AVEVA Unified Engineering integrates process design with front-end engineering and detailed 3D based design; AVEVA Unified Project Execution links and streamlines procurement and construction processes for capital projects; and AVEVA Enterprise Learning enables the rapid skilling of operators and engineers using Extended Reality (XR) and simulation tools. The latter ensures efficient startups and shutdowns, normal operations, and the ability to handle abnormal situations, it says.

Within mining, AVEVA says it already helps mining operations overcome daunting challenges such as cyclical market demand, ageing production assets, and a workforce in transition with its software solutions.

Craig Hayman, CEO, AVEVA, said the launch builds on the recent news describing AVEVA’s capabilities as “the first company in the engineering and industrial software market to comprehensively address the end-to-end digital transformation imperatives with an integrated portfolio of solutions that deliver efficiency, unlock value and empower people across the lifecycle of capital assets and operational value chains”.

He explained that the solutions would change the way that owner operators engage with engineering, procurement and construction (EPC) companies in designing, building, commissioning, and operating their capital assets.

The company said: “The functionality provided in these integrated solutions enables the realisation of an EPC 4.0 strategy for owner operators, central to digital transformation in the capital-intensive process sectors. This allows collaboration on a global scale, through hybrid cloud architectures and on a common platform. The entire manufacturing process can be traced, tracked, and linked – from engineering and design, through procurement and construction, to handover and to operations and maintenance, as a comprehensive digital twin for the capital asset.

Hayman added: “With the launch of AVEVA Unified Engineering, a first of its kind solution, we are breaking down the silos between engineering disciplines and enabling our customers to turn conceptual designs into 3D models quickly, accelerating engineering to estimation and ensuring designs can be operated before committing billions of dollars.”

New AVEVA Unified Engineering enables the integration of the process model and plant model lifecycles from concept to detailed design, delivering collaboration for multi-discipline engineers to collaborate in the cloud.

The net result, according to AVEVA, is a minimum 50% improvement in engineering efficiency in front-end engineering and design and up to 30% in detail design, which can yield a 3% total installed cost improvement. “These savings can be re-invested to ensure engineering quality, accuracy, and maturity for downstream project execution business processes,” the company said.

“AVEVA Unified Project Execution solutions integrate with AVEVA Unified Engineering to further break down the silos within procurement and construction by combining key disciplines covering contract risk management, materials and supply chain control, and construction management into one cloud based digital project execution environment,” AVEVA said. This could deliver up to 15% reduction in material costs, 10% reduction in field labour costs and reduce unbudgeted supplier change orders by up to 50%, according to the company. This translates to 10% total installed costs savings opportunities for customers.

AVEVA’s Enterprise Learning solutions combine traditional simulation-based learning with 3D connected learning management solutions, according to AVEVA. It extends process models and 3D models from AVEVA Unified Engineering to fast track DCS panel operator training, field operator training, process and maintenance procedural training, and process safety situational awareness training using cloud and XR technology to deliver up to 2% total installed cost reduction by improved operations readiness.

Amish Sabharwal, SVP, Engineering Business, AVEVA, said: the company’s engineering portfolio enhancements will deliver increased agility for its customers, enabling them to reduce cost, risk, and delays, minimising errors and driving rapid capital project execution.

“The cost savings are realised by mitigating capital investment risks at the process design stage, cutting engineering man-hours by up to 30% in plant design, reducing material costs in procurement by up to 15% as well as reducing field labour costs in construction by up to 10%,” he said.

“With these new solutions AVEVA is providing integration across all stages of the capital project, from conceptual design to handover, to optimise collaboration and break down silos between both engineering disciplines and project stages.”

Primero gets the nod for process plant work at Core’s Finniss lithium project

Energy minerals, Mineral processing, Mining services, , , , , , , , , ,

Primero Group has been conditionally awarded a multi-year build-own operate (BOO) and operations and maintenance (O&M) contract with Core Lithium at the Finniss project, near Darwin in the Northern Territory of Australia.

In addition to this, Primero has also secured recent early contractor involvement (ECI) contract wins with Agrimin Ltd (Mackay sulphate of potash project) and Hazer Group (hydrogen commercial demo plant), both of which deliver strong follow-on potential for large-scale engineering procurement and construction (EPC) contract roles, the company says.

The agreement with Core, worth around A$100 million ($69.9 million) at Finniss, follows the company being named preferred EPC contractor status early this year. The contract also offers the opportunity for extension after the initial four-year term, Primero said.

Furthering Primero’s partnering contract model, the preferred contractor status has been extended to include conditional award of Primero’s first BOO contract for the crushing and screening circuit, the EPC and the complete O&M for the processing facility, Primero said.

Core’s development of Finniss is initially centred on production from the high-grade Grants deposit as an open-pit mining operation and construction of a 1 Mt/y dense media separation process plant to produce a 5% Li2O spodumene concentrate for export.

The prefeasibility study on the project envisaged a total capex of A$53.55 million and A$168 million in free cash generation over a period of 26 months based on a price of $649/t for its concentrate.

Primero Managing Director, Cameron Henry, said: “Primero is continuing to build a strong foundation and reputation for delivery. Current revenue run rates demonstrate our ability to concurrently manage growth and deliver on multiple projects, across various Australian and global jurisdictions. Our existing client relationships, and the repeat nature of large amounts of our business, provide a strong platform from which to drive and achieve our strategic goals.”

DRA Global to carry out feasibility study work on Managem’s Tizert copper project

Base metals, Bulk handling, Mineral project development, Mining services, , , , , , , , , , , , ,

DRA Global says it has been awarded the bankable feasibility study (BFS) contract for the Managem Group-owned Tizert copper project, in the Souss-Massa province of Morocco.

The Tizert copper deposit is located on the northern edge of Igherm Precambrian buttonhole and is the largest copper deposit in the western Anti-Atlas Copper Belt, according to DRA. The underground mine, with a targeted production of 3.3 Mt/y of ore, is expected to use multiple mining methods including room and pillar and long hole stoping.

An aerial ropeway system will be used to convey the ore from the mine site to the process plant across an 800 m wide and 250 m deep canyon. The process plant will be a flotation concentrator producing oxide and sulphide copper concentrates.

DRA’s Montreal office has been awarded the full BFS scope which will include mining, backfill, ore transport, process plant and infrastructures. The BFS is expected to be completed in the June quarter of 2020.

Pierre Julien, DRA’s Executive Vice President Americas, attributes the winning of the contact to an excellent working relationship with Managem: “The DRA team has been working closely with the Managem leadership team for almost two years, and through a dedicated and collaborative approach has built a partnership which culminated with the award of this BFS contract.”