Tag Archives: Fortescue

Capital books ~$35 million drilling services contract with Nevada Gold Mines

Explosives and blasting, Mine operation news, Mining equipment, Mining services, Precious metals, Steel and iron ore, , , , , , , , , , , ,

Capital, a leading mining services company, has announced the award of a material drilling contract in Nevada with Nevada Gold Mines and associated rig purchases, together with an update on the ramp up of operations at its Ivindo iron ore contract in Gabon.

The three-year drilling services contract with Nevada Gold Mines (NGM) in the US spans a wide range of drilling services including diamond, both surface and underground, and underground reverse circulation. Drilling spans a number of operations across NGM including underground diamond drilling in the Leeville underground mine within the Carlin complex, underground RC drilling in Carlin and diamond drilling at the Robertson project within the Cortez complex.

NGM is a joint venture between Barrick (61.5% ownership) and Newmont (38.5% ownership), with Barrick as operator. NGM operates three Tier One gold assets: Carlin, Cortez and Turquoise Ridge, consisting of 10 underground mines, 12 open-pit mines and associated facilities.

The contract will consist of nine rigs and will include equipment with advancements in automation for improved safety and efficiency, Capital said.

The contract is expected to generate annualised run rate revenues of circa-$35 million once all the rigs are fully operational from 2025, at margins commensurate with the broader group, Capital said. The company will purchase new rigs with associated equipment for the contract with capital expenditure expected to be circa-$20 million, predominantly falling in 2024.

In Gabon, the company reported that ramp up of operations at its load & haul, crushing and drilling contract with Ivindo Iron SA, majority-owned by Fortescue, was proceeding well.

“We have now commenced drilling operations to assist in further defining this world-class deposit,” Capital said. “The majority of the mining equipment is now in country with operations also already underway, and crushing due to commence later in the year.”

Peter Stokes, Chief Executive Officer of Capital, said: “This new drilling contract award represents a landmark moment for Capital as we extend our geographic reach in drilling into North America, adding to our existing and growing operations in Canada with MSALABS. It is a strong endorsement of our long-standing commitment to world leading standards in both safety and productivity.

“We are pleased to further expand our services with Barrick, having begun our relationship across operations in Africa before extending more globally, first at the Reko Diq mine in Pakistan, earlier this year, and now to the Nevada Gold mines complex in the United States.

“It is also great to see a continuation of our decisive and strategic move to reposition and improve our contract portfolio, set out in the second half of 2022, focusing on large-scale mine sites and Tier-1 projects with significant growth potential. The addition of world-class contracts in 2023 across Reko Diq, Ivindo and now Nevada presents significant further opportunity and a strong platform as we look into 2024.”

WAE to open new facility in Oxfordshire focused on zero-emission, off-road solutions

Environmental, Mining equipment, Mining services, Power supply for mines, , , , , , , , ,

Fortescue Future Industries says it is significantly expanding its battery and electric powertrain production operations in the UK with the announcement of an additional state-of-the-art facility in Oxfordshire.

Fortescue Chairman, Andrew Forrest, said the expansion is part of Fortescue’s commitment to grow its British presence through the recent integration of British manufacturers WAE (formerly Williams Advanced Engineering).

“With Fortescue’s investment, British engineering will be at the cutting edge of the green energy economy with WAE’s battery systems providing world leading technology to the entire global industrial sector,” Dr Forrest said.

Following entry-into-force of the Australia-UK Free Trade Agreement, Fortescue will open a new state-of-the-art site in Banbury, Oxfordshire, significantly expanding its UK manufacturing capability, supplying advanced batteries and electric powertrains globally.

The new location will be focused on production of a wide range of zero-emission products for the off-road sector including trucks and trains. It will form part of a new global business aimed at driving decarbonisation in all fields of economic activity, while building sovereign capabilities in emerging technology.

The factory will cover over 13,500 sq.m in total and employ over 120 highly-skilled engineers, technicians, apprentices and graduates, with recruitment for the industrialisation program starting now, FFI said.

The integration follows Fortescue gearing up to meet growing global demand for the development, manufacture and supply of advanced electrification technology solutions to the off-highway sector.

The new Banbury facility will operate alongside Fortescue’s other Oxfordshire facilities including the Kidlington factory, which will open later this year. The Banbury site will be a purpose-built facility focusing primarily on manufacturing of heavy industry, electric/zero-emission powertrain systems. It will offer automated assembly for battery modules and packs, assembly of power conversion and power systems, as well as truck and train production support.

The first prototype build is targeted for July/August 2023 with the first mining haul truck module due for completion in August 2023.

The site will officially open in 2024 and will create job opportunities across all levels, including apprentices and graduates, acting as showcases for a future rollout by WAE of further global high-tech manufacturing hubs.

Capital to carry out earthmoving and crushing services for FMG-tied Ivindo Iron in Gabon

Comminution of minerals, Explosives and blasting, Mineral project development, Mining services, Steel and iron ore, , , , , , , ,

Capital has announced the award of a new mining services contract with Ivindo Iron SA, majority-owned by Fortescue, at its namesake project in Gabon.

The earthmoving and crushing services contract has been announced at the same time as the company has extended its revolving credit facility.

Ivindo is in the northeast of Gabon and is one of the world’s largest undeveloped, high-grade haematite iron ore deposits with the potential to become a globally significant iron ore mine, according to Ivindo Iron, which is the operating entity for the Belinga project and a company that Fortescue has a 72% indirect interest in.

Earlier this year, Fortescue, through Ivindo Iron SA, signed the Mining Convention for the Belinga iron ore project in Gabon with the Gabonese Republic, paving the way for first mining to begin in the second half of 2023. Belinga is part of the wider Ivindo project.

The Capital contract has a term of up to five years and will generate approximately $30 million of revenue per year once fully operational, the London-listed company says. It involves both earthmoving and crushing services. Capital says it will use existing equipment and is in the process of purchasing circa-$15 million of additional equipment to service the contract.

Capital has already begun mobilising equipment to the site. This mining and crushing services contract is in addition to the three-year reverse circulation and diamond drilling services contract with Ivindo, announced earlier this year, where drilling recently commenced.

Peter Stokes, Chief Executive Officer, said: “We are thrilled to have been awarded the mining and crushing services contract at Ivindo. This is our second significant mining services contract and continues our strategy to diversify our revenue stream through an expanded service offering. We look forward to working closely with Ivindo Iron to expand our relationship from drilling services to mining and crushing services and ensure a rapid ramp up on this world-class deposit.”

SRG Global’s Bugarrba Aboriginal JV to carry out scaffold service work at Iron Bridge

Mineral project development, Mining services, Steel and iron ore, , , , , ,

SRG Global Ltd says its Aboriginal Joint Venture, Bugarrba, has been awarded a five-year term contract with Iron Bridge Operations in the Pilbara of Western Australia.

The five-year term contract with Iron Bridge, an unincorporated joint venture between Fortescue Metals Group (Fortescue) subsidiary FMG Iron Bridge and Formosa Steel IB, is a master agreement for maintenance and shutdown services to provide engineered scaffold services across
its new magnetite project in Western Australia.

The contract, valued at circa-A$40 million ($26 million) is expected to commence early in 2023.

Bugarrba is a joint venture with members of the Njamal People and SRG Global. The traditional land of the Njamal people covers 42,000 sq.km within the Pilbara, with its name meaning ‘Country’ in the Njamal language. Bugarrba’s vision is to provide meaningful and sustainable employment opportunities to its people and Aboriginal people more broadly.

Terry Wilson, Bugarrba Board Member, said: “Bugarrba are excited to secure another important contract for the Njamal people and are looking forward to working with Iron Bridge Operations located on the traditional lands of the Njamal people.”

David Macgeorge, SRG Global Managing Director, added: “SRG is tremendously proud of our Bugarrba joint venture, seeing its continued success and contribution to Aboriginal people, and working with Iron Bridge Operations, on what is such an innovative project for Western Australia.”

The Iron Bridge project is set to deliver 22 Mt/y of high-grade magnetite concentrate product, with first production scheduled for the upcoming March quarter.

Thiess targets WA hard-rock mining sector expansion with MACA offer

Automation, Base metals, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron ore, , , , , , , , ,

Thiess looks like gaining further market share in the key hard-rock mining market of Western Australia after having a bid accepted for fellow mining contractor MACA.

The all-cash offer to acquire 100% of the shares of the company at A$1.0251/share represents a 42.2% premium to the MACA one month volume weighted average price as of July 25, 2022.

MACA’s Board has unanimously recommended that its shareholders accept the offer in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the offer is favourable to MACA shareholders.

Thiess says it intends to operate MACA in materially the same manner supported by MACA’s workforce, brand and assets, and to continue its highly regarded community partnerships.

The proposed acquisition of MACA by the Thiess is consistent with its diversification strategy, with a particular emphasis on increasing its presence within metals and minerals hard-rock mining operations in Western Australia, it says.

To this point, the company’s Western Australian hard-rock mining exposure has consisted mostly of work with BHP’s Western Australian nickel assets, in addition to a recent contract award at the Covalent Lithium Joint Venture project.

MACA has exposure to the state’s iron ore sector thanks to contracts with Fortescue and BHP; the burgeoning gold segment through contracts with Regis Resources, Ramelius Resources, Capricorn Metals and Red 5; and nickel and lithium exposure from the Ravensthorpe mine and Pilgangoora project, respectively.

Thiess also said in its Bidder Statement that it sees “a significant opportunity to combine the operational capability of both companies to continue enhancing service quality, particularly in relation to technical solutions such as deploying autonomous machinery or reducing the carbon emissions of mining services on project sites”.

Back in March, MACA announced a partnership with SafeAI to form an MoU to retrofit a mixed fleet of 100 mining trucks across multiple locations with autonomous mining technologies.

Michael Wright, Executive Chair and Chief Executive Officer of Thiess, said: “We believe our offer is an attractive opportunity for MACA shareholders as it provides certainty of cash, a strong premium and an ability to achieve liquidity for their entire MACA shareholding. We are pleased to have the support of the MACA Board for our Offer.

“The proposed acquisition of MACA is an important part of Thiess’ strategy to diversify its operations across commodities, services and geographies. Thiess has a high regard for MACA’s service quality, and we believe our industry experience positions us well to enhance MACA’s value proposition to clients and employees. We recognise and intend to maintain and grow MACA’s strong brand and presence in the Western Australian market. Thiess also looks forward to supporting MACA to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.”

Wabtec to provide Fortescue locomotives with another 20 years of life

Equipment maintenance, Mining equipment, Mining services, Steel and iron ore, , , , , , ,

Wabtec Corporation has announced an agreement to modernise locomotives for Fortescue Metals Group, representing Wabtec’s delivery of the first fleet of modernised locomotives for an Australia-based customer.

The fleet will be transformed into AC44C6M locomotives to meet the performance requirements of Fortescue while delivering operational and environmental efficiencies, it explained.

“While we have completed more than 1,000 modernisations for customers globally, it’s a first for Australia and demonstrates Fortescue’s commitment to drive more sustainable rail operations,” Wendy McMillan, Senior Regional Vice President, South East Asia, Australia and New Zealand, said.

“By repurposing and rebuilding our locomotives, we give these heavy-haul trains another 20 years of life, while reducing the fuel consumption and maintenance, and repair and overhaul expenses by up to 20%. For Fortescue, the modernised trains will deliver up to a 55% increase in tractive effort and more than 40% increase in reliability.”

The modernised locomotives will benefit from improved performance and increased reliability with new features including a UX engine, new electrical cabinets, a new design high-efficiency radiator and radiator cab, an upgraded control system to remove obsolescence, and AC traction with individual axle control, Wabtec explained.

General Manager Hedland Operations, Mark Komene, said: “The procurement of the modernised locomotives is an important element of Fortescue’s locomotive fleet strategy. This newly modernised fleet will enable substantial long-term capital and operating costs savings, provide the latest traction and control technology, and enable future upgrades to alternative energy sources such as battery electric in support of Fortescue’s industry-leading target to be carbon neutral by 2030.”

The new AC44C6M locomotives will be rebuilt at Wabtec’s Fort Worth facility in Texas, USA, before making the journey to Western Australia over the next two years for deployment at Fortescue’s mining operations.

Wabtec’s modernisation program is a key component of the company’s effort to advance a circular economy. It updates ageing locomotives with customised solutions that range from simple changes including control system upgrades to complex restorations, such as the comprehensive transformation of an aged DC locomotive into an AC locomotive outfitted with state-of-the-art digital technology.

Fortescue, meanwhile, has progressively been looking to decarbonise its locomotive fleet, making plans to purchase two new battery-electric locomotives from Progress Rail, a Caterpillar Company, to transport its iron ore to port in Western Australia. This comes on top of trials at Fortescue Future Industries development facility in Western Australia of a locomotive operating solely on green ammonia and other green renewable fuels and technologies.

Schlam delivers 1,500th Hercules dump body in Australia

Coal technology, Mine operation news, Mining equipment, Steel and iron ore, , , , , , , , , ,

Schlam has now reached the milestone of manufacturing its 1,500th Hercules dump body in Australia, with the dump body in question delivered to Glencore’s Mt Owen complex in the Hunter Valley of New South Wales.

Now in its 14th incarnation, the Schlam Hercules has become the dump body of choice for many of the most significant Tier 1 operators, OEM truck builders and mining contractors in Australia, Schlam says.

Schlam Chief Executive Officer, Matt Thomas, said it was a team effort to reach this milestone.

“Our manufacturing division – Schlam Payload Solutions – is filled with some of the most dedicated and hardworking individuals I’ve ever met. And, when they work together, anything is possible.

“The pandemic and supply chain concerns have pressured our team, however, they have managed these challenges superbly while maintaining our commitment to quality and customer service.”

The first Hercules was manufactured in Australia in 2003, and it took 17 years to reach the 1,000th milestone. It took the company just 22 months to then reach the 1,500th mark.

Thomas says that long-term national supply contracts with BHP, Fortescue, Glencore, Northern Star Resources, Newmont and other significant miners mean that the Hercules is set to continue along this upward growth path.

“We are creating efficiencies in our manufacturing processes through robotics, automation and ‘LEAN thinking’ to support this growth while maintaining quality,” he said.

“We’re also growing our sales and aftersales teams, ensuring that customer service is exceptional at every step of their experience with Schlam. We pride ourselves on following our products into the field and believe this has been a critical element in our growth.

“I thank the whole team – no matter where they work in the company – for helping us reach this milestone, and I look forward to many more to come.”

Fortescue making plans to test ‘green’ locomotives at rail operations in 2022

Environmental, Mine operation news, Mineral project development, Power supply for mines, Steel and iron ore, Sustainable mining, , , , , , ,

The decarbonisation of Fortescue Metals Group’s (Fortescue) locomotive fleet is ramping up with the arrival of two additional locomotives at Fortescue Future Industries’ (FFI) research and development facility in Perth, Western Australia.

The two four-stroke locomotives will undergo further testing on the new fuel system, joining the first two-stroke locomotive which underwent testing earlier this year.

Fortescue Chief Executive Officer, Elizabeth Gaines, said the arrival of the additional locomotives allowed FFI’s Green Team to expand their development as they focus on delivering a locomotive operating solely on green ammonia and other green renewable fuels and technologies.

“This is part of Fortescue’s ambitious target to be carbon neutral by 2030 for Scope 1 and 2 emissions,” she said. “Our target is underpinned by a pathway to decarbonisation as we focus on investing in renewable energy and eliminating the use of diesel across our mining fleets. Fortescue’s fleet of locomotives is a critical element in decarbonising our operations and, through FFI, we are investing in cutting-edge technologies to power the green mining fleet of the future.”

FFI’s Green Team have been trialling technology in hydrogen, ammonia and battery power for trains, ship engines, haul trucks and drill rigs.

Earlier this year, the team achieved the successful combustion of blended ammonia fuel in a two-stroke locomotive, marking a significant milestone in Fortescue delivering on its decarbonisation targets.

FFI Chief Executive Officer, Julie Shuttleworth, said: “FFI is a key enabler of Fortescue’s decarbonisation strategy, and it is pleasing to see such rapid progress being made by our Green Team. We are investing in research and development to transform Fortescue’s trains, trucks and ships on the road, rail and sea with zero pollution fuels as soon as possible.”

Planning is underway to deploy a demonstration locomotive in Fortescue’s rail operations in 2022.

JSW, BBURG HD2500RC drill rig impresses at Fortescue’s Solomon iron ore mine

Automation, Mineral exploration, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , , , , ,

JSW Australia’s ambition to leverage the latest drilling and automation technology is coming to fruition with the deployment of a new high powered, small footprint drill rig to Fortescue Metals Group’s Solomon iron ore mine in the Pilbara of Western Australia.

The planned arrival of the HD2500RC was announced around a year ago.

Leveraging IDAT (Intelligent Drilling Applications & Technology) technology, developed by German manufacturer BBURG and customised in conjunction with IDAT, the rig underwent site commissioning in July and its initial production performance to date has been impressive, according to JSW.

The HD2500RC was designed especially for the challenging terrain at Solomon where the preparation of drill pads is difficult and expensive, the company says.

“With JSW’s years of experience on-site and first-hand knowledge of the challenges, along with IDAT’s technology expertise and BBURG’s engineering capability, we had a powerful collaboration for the development of the new rig,” JSW CEO, Warren Fair, says.

He said overall the rig was proving to be more productive, safer and quieter than the existing technology on site.

The HD2500RC joins other new technologies in JSW’s fleet including the Equus green drills developed specifically for bauxite mines and new drilling technology for magnetite mines being developed by IDAT in partnership with German manufacturer Bauer.

Fair concluded: “IDAT brings the technology, JSW brings the operational know-how. So far, it’s proving to be a winning formula.”

Fortescue puts first tonnes through Eliwana iron ore processing facility

Comminution of minerals, Mine operation news, Mineral project development, Steel and iron ore, , , , , , , ,

Fortescue Metals Group is celebrating first ore through the ore processing facility at its Eliwana mine and rail project in the Pilbara of Western Australia.

Fortescue Chief Executive Officer, Elizabeth Gaines, and Deputy Chairman, Mark Barnaba, celebrated the official event on site at Eliwana with Bill Johnston, Western Australia Minister for Mines and Petroleum; Energy; Industrial Relations, representatives of Fortescue’s native title partners, the Puutu Kunti Kurrama and Pinikura People, and members of the Fortescue Board of Directors and the core leadership team.

Gaines said: “Eliwana is the next important stage of development of Fortescue’s world-class, integrated operations. Exploration commenced in this area in 2006, and we have now delivered a new 30 Mt per annum dry ore processing facility and infrastructure, along with 143 km of rail which is in the final stages of construction.

“Eliwana will see us maintain our low-cost status and provide us with greater flexibility across our product mix. Construction of the mine, village and infrastructure was completed safely over a 12-month period, in line with budget and schedule.”

Eliwana will help Fortescue maintain its overall production rate of a minimum 170 Mt/y over 20 years, the company has said.