Tag Archives: FEED

TNG brings Clough into Mount Peake Peake vanadium-titanium-iron project fold

TNG Ltd has appointed a subsidiary of engineering and construction company, Clough, to work with TNG’s project development team and the SMS Group on its flagship Mount Peake vanadium-titanium-iron project in the Northern Territory of Australia.

TNG announced in September that it had decided to progress development of the project with a fully-integrated mining and processing operation within its existing mining leases. As part of this strategy, it was considered by the TNG team important to have a suitable Australian-based engineering group on board.

Following a tender process, Clough Projects Australia Pty Ltd was selected to work with TNG’s team to initially develop an optimised plant layout for the integration of the TIVAN® processing facility (TPF) and beneficiation plant at the mine site, on the basis of the deliverables prepared under the front-end engineering and design (FEED) study completed by SMS group.

Clough, TNG says, will work with SMS and TNG’s team given the severe restrictions on travel between Europe and Australia due to the COVID-19 pandemic that have impacted SMS’ ability to deliver a team in Australia.

TNG previously engaged Clough to assess the definitive feasibility study for the project and this new contract expands on this early work to progress the overall mine development, it says.

The optimised layout will be unconstrained compared with the size and shape requirements at the former Darwin site. This offers the potential to capitalise on improving constructability, operability and maintenance for the project, as well as further cost optimisations from integrated infrastructure, the company says.

The integrated plants will be positioned within the company’s existing Mining Lease 29855, which has a size of 1,460 ha. This area is capable of hosting a fully-integrated operation encompassing mining activities and waste storage, the beneficiation plant, the TPF and non-process infrastructure, according to TNG.

TNG’s Managing Director & CEO, Paul Burton, said: “From a strategic and logistical perspective given the continued global COVID-19-related travel restrictions, it is an advantage to have a locally-based engineering group working on this phase of the Mount Peake project with TNG and SMS.

“We expect the integrated plant layout will pave the way for further optimisation work that will tie back into the recently completed FEED study. These work programs are already underway. We look forward to working closely with Clough and our other engineering partners to rapidly advance the Mount Peake project.”

Located 235 km north of Alice Springs, Mount Peake is expected to be a long-life project producing a suite of high-quality, high-purity strategic products for global markets including vanadium pentoxide, titanium dioxide pigment and iron ore fines. The project, which is expected to be a top-10 global producer, has received Major Project Status from the Northern Territory and Federal Governments.

Aspire signs up Sedgman for Ovoot coking coal project FEED study

Aspire Mining Ltd has contracted Sedgman Pty Limited to prepare a Front End Engineering and Design (FEED) study on coal handling and preparation plant (CHPP) infrastructure to support commencement of operations at the Ovoot coking coal project (OCCP) in Mongolia.

Sedgman, a wholly owned subsidiary of CIMIC, is a leading provider of integrated minerals processing solutions with experience delivering processing solutions. It has provided technical input and various studies supporting the economics of the OCCP from discovery of the deposit in 2010.

The FEED study will be conducted in a phased approach, over a period of approximately five months. Stage 1 will comprise trade-off analyses to identify the most appropriate concepts and technologies, which will take approximately eight weeks. Stage 2 will then focus on the agreed path and will produce accurate estimates of capital and operating costs, and designs to enable tendering for construction. The work will be completed under a schedule of rates arrangement, with total cost of A$600,000 ($464,583) estimated, Aspire said.

The intended CHPP infrastructure to be investigated will be based on existing modular designs and will enable low impact processing of approximately 1.5 Mt/y of run-of-mine coal, with capability for later expansion, Aspire said. Important criteria for the design include low energy and water consumption, and stringent dust control.

Sedgman Managing Director, Grant Fraser, said: “Sedgman appreciated the opportunity to work with Aspire and is focused on delivering value through progressing an innovative solution for the project.

“This study is a great opportunity to work with one of our longstanding clients to support the future development of the OCCP.”

Nusantara keeps up Awak Mas gold project momentum with FEED contract award

Nusantara Resources has awarded the front end engineering and design services (FEED) contract for its Awak Mas gold project, in Indonesia, to PT Petrosea Tbk.

The FEED contract is one of three critical path items in 2020, along with tailings storage facility design and permitting, and land access, and forms part of a $30 million capital works program budgeted for the year, the ASX-listed company said. The 2020 capital budget is part of the overall $162 million capital required to put Awak Mas into production, as estimated in the 2018 definitive feasibility study (DFS).

With respect to funding and, as part of a joint venture arrangement, Indika Energy is to contribute up to $40 million of earn-in equity funding. Petrosea, a subsidiary of Indika, will also provide up to $40 million in deferred payments, with up to $15 million of this provided for in this FEED contract. The balance is to be agreed in the future engineering, procurement and construction (EPC) contact.

Over the course of 2020, the joint venture partners Nusantara and Indika will look to complete project debt financing and move into a construction and commissioning phase in 2021, it said.

The 2018 DFS on Awak Mas envisaged an open-pit operation producing plus-100,000 oz/y over a plus-11-year mine life.

Nusantara is currently preparing to seek shareholder approval in late April for the joint venturing of the project and related project equity investments by Indika Energy group in the project company PT Masmindo DWI Area (Masmindo). This could see Nusantara own 60% of the project and Indika Energy own the remaining 40%. The award of the nine-month FEED contract addresses a condition of those investments and continues the project development momentum for the project, it said.

Nusantara says Petrosea is a Tier 1 engineering and construction contractor in Indonesia with the capability in major civil construction and mining projects to deliver this FEED and future EPC works.

Nusantara’s Chief Executive Office, Neil Whitaker, said from Jakarta: “This is another significant milestone towards the development of the Awak Mas gold project and, in a favourable environment for gold, bodes well for the future success of the project and its stakeholders.”

MRC Graphite drafts in Mondium for Munglinup ECI and FEED contracts

Mineral Commodities’ wholly-owned subsidiary, MRC Graphite, says it has executed a professional services agreement with Mondium to undertake early contractor involvement (ECI) and front-end engineering and design (FEED) for the Munglinup graphite project, in Western Australia.

MRC Graphite is in the final stages of completing a definitive feasibility study (DFS) for Munglinup, which will provide the pathway to a final decision to commence construction. In addition, environmental permitting is ongoing and the current schedule, cognisant of regulatory processes and south coast seasonal variation, offers the opportunity to engage an engineering and construction firm to deliver additional value to the project through a purposeful ECI and FEED programme, the company said.

Mondium is an incorporated joint venture between Monadelphous Group and Lycopodium, which leverages the skills of both companies to provide technical and delivery solutions to its clients, Mineral Commodities said.

Mineral Commodities Executive Chairman, Mark Caruso, said: “Given the current tightening of resources in the mining project space, MRC is very pleased to have formed this relationship with a highly regarded engineering and construction firm. This will enable MRC to undertake significant value-add for the Munglinup graphite project through ECI and FEED stages, leading into construction later in the year, subject to approvals and a decision to mine.

“Mondium and its owners, Monadelphous and Lycopodium, are extremely well qualified and experienced in flotation design and construction and MRC looks forward to developing the Munglinup graphite project as safely, quickly and cost effectively as possible to ensure MRC emerges next year as a low cost, high quality graphite producer.”

According to a prefeasibility study, Munglinup will produce, on average, 54,800 t/y of high-purity graphite concentrate at a life of mine production cash cost of circa A$531/t ($377/t) graphite. Initial capital costs were estimated at A$52 million including 15% engineering procurement and construction costs (A$5.5 million), 15% contingency (A$6 million) and all owners’ costs (A$3 million).

Primero, Qube and Lucas TCS named contractors at Core’s Finniss lithium project

Australia-based Core Lithium has awarded preferred contractor status for three key components of its 100%-owned Finniss lithium project, near Darwin in the Northern Territory.

The three contractors are key participants in the development team Core is assembling following the granting of the first mining licence earlier this month, it said.

Primero Group has been named the preferred engineering procurement and construction (EPC), and front-end engineering and design (FEED) contractor. Primero has worked on several Australia hard-rock lithium projects including Pilbara Minerals’ Pilgangoora operation and Tawana/Alliance’s Bald Hill mine.

Meanwhile, Qube Bulk Pty has received the status of preferred provider of haulage and transport solutions for Finniss, with Lucas Total Contract Solutions selected as preferred mining services contractor.

Core said it would work with all three companies to finalise contract terms that “reflect the most cost-effective and time-efficient solution for Finniss”.

The FEED study by Primero is underway to improve the accuracy of the EPC estimate on the 1 Mt/y processing plant and associated infrastructure at Finniss, the company said.

In line with its construction schedule, Core is targeting first production of spodumene concentrate from Finniss by the end of 2019.

Core’s Managing Director, Stephen Biggins, said: “These key contract roles are crucial for the success of the Finniss lithium project, so we did not make our decisions on who should be awarded these packages of work lightly. We believe we have selected the best contractors for the respective contracts out a field of worthy contractors, and look forward to working with Primero, Lucas TCS and Qube once the contracts have been finalised and the next phases of work at Finniss get underway.”

He added that final award of the contracts would follow the completion and release of a definitive feasibility study on Finniss, in addition to financing of the project.

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 ($38 million) and A$168 million (pre-tax) in free cash generation over a period of 26 months based on a price of $649/t for its concentrate.

DRA to start work on Yangibana rare earths FEED contract in Western Australia

DRA Global is to carry out the Front-End Engineering Design (FEED) contract for Hastings Technology Metals’ Yangibana rare earths project in Western Australia.

Yangibana will be Hastings’ first rare earths project on the Australian continent, containing substantial neodymium and praseodymium resources, according to DRA.

The project currently spans approximately 650 km² and is located in the Gascoyne region of Western Australia. A definitive feasibility study (DFS) in 2017, based on a 5.15 Mt reserve, detailed a production rate of 1 Mt/y to produce up to 15,000 t/y of mixed rare earths carbonate.

Following this, Hastings has undertaken to develop the project further, specifically the first phase of the processing plant. The site plot plan has been approved and is ready for detailed engineering and execution to proceed.

The flowsheet for this initial project will comprise of two key elements; beneficiation and hydrometallurgy. This FEED scope of work shall progress the process plant engineering design and place long lead equipment orders to obtain vendor data to progress engineering in critical areas.

“A further outcome of this scope of work will be to define the requirements for detailed design, procurement, construction and commissioning of the Yangibana rare earths project processing facility,” DRA said.

The scope of work will also progress engineering and update the project cost estimate for the processing facility. This element of the project has been fast tracked by Hastings Technology, with the first phase expected to be completed by the end of December.

Hannes Zandberg, Project Director at Hastings Technology, said: “DRA brings decades of engineering experience to this project and has a globally proven track record. This has allowed us to set some tight deadlines and, although it is a challenge, our close working partnership with DRA inspires confidence. We are certain that this FEED phase will have a successful outcome and will lead to future collaboration on the Yangibana project.”