Tag Archives: Geoff Jones

GR Engineering to tackle surface infrastructure for Tanami Expansion 2

Mine operation news, Mine shafts and equipment, Mining services, Precious metals, , , , ,

GR Engineering Services Ltd has executed a subcontractor agreement with RUC Cementation Mining Contractors Pty Ltd in relation to work on Newmont’s Tanami gold mine in the Northern Territory of Australia.

RUC has been engaged by Newmont under a head contract to complete certain construction works for the Tanami Expansion 2 project. Included within this is shaft lining, equipment and headframe construction.

The scope of work for which GR Engineering is responsible comprises the construction and commissioning of the temporary and permanent works associated with the surface infrastructure.

Based on the current budget for the scope of work, it is anticipated that revenue from the subcontractor agreement will be approximately A$68 million ($51 million), GR Engineering said. Work is expected to be completed by April 2023.

Back in November, the two companies signed a “teaming agreement” related to the project.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have executed this first subcontractor agreement with RUC and we look forward to working with RUC to deliver safe and successful outcomes for Newmont and on other future projects. GR Engineering continues to build its pipeline of work for financial year 2022 and financial year 2023.”

The Tanami Expansion 2 project is expected to increase the annual capacity of the processing site to 3.5 Mt/y, from 2.6 Mt/y, and extend the life of the mine beyond 2040.

RUC Cementation, GR Engineering plan to collaborate on Tanami Expansion work

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RUC Cementation Mining Contractors and GR Engineering Services have agreed to team up as part of a plan to construct surface infrastructure, as well as complete the shaft lining and equipping for a proposed hoisting shaft at the Newmont-owned Tanami Expansion 2 project in the Northern Territory of Australia.

Today, Barry Upton (right), Managing Director of RUC Cementation Mining Contractors, and Geoff Jones (left, next to Rod Schier, Engineering Manager for GR Engineering), Managing Director of GR Engineering Services, signed this “Teaming Agreement”.

The surface infrastructure component the two plan to work on includes winders, headframe and surface conveyors.

The companies said: “Both companies have worked together to submit a competitive and technically strong offer for the works and look forward hopefully to an award in the near future.”

RUC added: “Whilst a departure from the traditional GR Engineering work scope of treatment plant construction, RUC Mining is very pleased to have GR on board as a key construction partner and values the excellence in construction that GRES bring.”

The Tanami Expansion 2 project is expected to increase the annual capacity of the processing site to 3.5 Mt/y, from 2.6 Mt/y, and extend the life of the mine beyond 2040.

GR Engineering to refurbish Nullagine gold mill in Western Australia

Comminution of minerals, Equipment maintenance, Mine operation news, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , ,

GR Engineering Services has been awarded a contract for the engineering, procurement and construction works associated with the Nullagine Mill Refurbishment project, in Western Australia.

The contract, awarded by Millennium Minerals Ltd, a subsidiary of Novo Resources Corp, is worth A$8.3 million ($5.9 million) and will be undertaken on a reimbursable cost basis, GR Engineering said.

Millennium’s mine and processing plant were shut down in December 2019 and Novo is planning to restart the processing plant in early 2021. The scope of works includes the refurbishment and upgrade of the gravity circuit and associated facilities to enable operations to recommence.

Novo said: “GR Engineering Services are synonymous with gold plant construction and refurbishment throughout Australia and were selected based upon their experience and capacity to undertake these works safely, efficiently and cost effectively.”

GR Engineering’s Managing Director, Geoff Jones, said: “GR Engineering is pleased to have been awarded the contract for the Nullagine Mill Refurbishment project. We are looking forward to working with the Novo management team to successfully and safely deliver this project.”

GR Engineering to turn the lights back on at Davyhurst gold processing plant

Comminution of minerals, Metallurgy, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , ,

GR Engineering Services has been awarded an engineering, procurement and construction (EPC) contract with Ora Banda Mining associated with the restart of the existing Davyhurst gold processing plant, in Western Australia.

The EPC contract price is A$10.8 million ($7.6 million) and will be undertaken on a fixed price basis, which includes a provisional sum component.

The scope of works include the refurbishment, optimisation and recommissioning of the existing 1.2 Mt/y processing plant, borefields and associated infrastructure. Work will start immediately and is expected to be completed in the March quarter, GR Engineering said.

GR Engineering Managing Director, Geoff Jones, said: “We are excited to be working with Ora Banda’s management team and look forward to Ora Banda becoming Australia’s newest gold producer.”

Ora Banda’s definitive feasibility study for the Davyhurst Restart project outlined a production target of 418,000 oz of gold over an initial five-year mine life based on an ore reserve of 460,000 oz (6.1 Mt at 2.4 g/t Au) from six deposits within 50 km of the existing plant.

A conventional gold three stage crushing circuit followed by a carbon in pulp processing plant will produce gold doré bars, according to Ora Banda, which hopes to commence mining in the December quarter and pour first gold in the March quarter.

GR Engineering to build paste plant at Saracen’s Thunderbox operation

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GR Engineering Services has been awarded additional work by Saracen Mineral Holdings at the Thunderbox and Carosue Dam gold operations in Western Australia.

The contract additions, which have a combined value of A$29 million ($19.9 million), include an engineering, procurement and construction contract for the Thunderbox Paste Plant project and an approved variation of the Carosue Dam Operations Plant Expansion project.

The Thunderbox paste plant work will involve the design, supply installation and commissioning of a new 150 m3/h paste backfill plant at Thunderbox. The project includes work at the existing Thunderbox operations’ (pictured) processing facility along with works at a new remote paste plant location. The contract price is A$22 million. GR Engineering says work will start immediately and is expected to complete in the first half of 2021.

At Carosue Dam, meanwhile, GR Engineering has been awarded a variation under the existing contract to install a paste pump at the Karari Paste Plant to distribute paste to the Whirling Dervish underground mine. The value of the variation is A$7 million.

These additions come on the back of being awarded a contract to carry out the engineering design, procurement and construction of expansion works on Saracen’s mineral processing plant at Carosue Dam, in November.

GR Engineering’s Managing Director, Geoff Jones, said: “GR Engineering has now worked with Saracen on three key projects in the last two years and we look forward to continuing our strong working relationship with one of Australia’s leading gold producers.”

GR Engineering set to revamp tailings leaching process at Silver Lake’s Deflector

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GR Engineering Services says it has received a letter of intent from a subsidiary of Silver Lake Resources for the award of upgrade works involving the flotation tailings leach process at the Deflector gold-copper operations in Western Australia.

The project is located in the southern Murchison region of Western Australia, 450 km north of Perth and 160 km east of Geraldton.

Silver Lake previously said it planned to upgrade process infrastructure at Deflector to include a carbon-in-pulp circuit to broaden available ore sources and enhance recoveries, providing potential upside to current production levels.

The contract sum is A$23 million ($16 million) and will be undertaken on an engineering, procurement and construction (EPC) basis, the company said, adding that the contract for the works will be finalised next month and GR Engineering will commence early works immediately.

Geoff Jones, GR Engineering Managing Director, said: “This letter of intent award represents GR Engineering’s first major project with Silver Lake. We are looking forward to engaging closely with the Silver Lake team to deliver safe and successful outcomes for the project.”

GR Engineering and Salt Lake Potash to bring Lake Way SOP project to fruition

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GR Engineering Services has been engaged by Salt Lake Potash to help design and construct its Lake Way sulphate of potash (SOP) project in Western Australia.

Lake Way is a 245,000 t/y SOP development with an expected mine life of over 20 years. Located in the Goldfields region of Western Australia, first production is expected by the end of the year.

GR Engineering is to provide services for non-process engineering design and the management of procurement, construction and commissioning of the Lake Way project processing facility and associated infrastructure, it said. The engineering firm has separately been engaged to undertake the civil, structural, mechanical, electrical and piping construction works for those project areas.

It is anticipated that aggregate revenue from the delivery of services, procurement and construction works associated with the Lake Way project from the commencement date to practical completion will be approximately A$107 million ($73 million), the company said.

“GR Engineering’s scope contemplates a collaborative arrangement, where it will work with Salt Lake Potash’s project team and manage the delivery of third-party process design and key equipment supply,” the company said. The construction scope will be performed on a target cost estimate basis, incentivising GR Engineering to achieve favourable budget and schedule outcomes, it added.

The engineering, procurement and construction contract involves the provision of plant, labour, materials and construction services for the process plant and non-process infrastructure, valued at A$85 million, while the engineering, procurement and construction management (EPCM) agreement contract involves the provision of services for the EPCM for areas of the process plant and non-process infrastructure,valued at A$22 million, Salt Lake Potash said.

Geoff Jones, Managing Director of GR Engineering, said: “We are extremely pleased to have been engaged to play a key role in the delivery of the process plant and non-process infrastructure for the Lake Way project. We look forward to continuing to work collaboratively with Salt Lake Potash to deliver safe and successful outcomes.

“GR Engineering looks forward to Salt Lake Potash emerging as a significant new Australian SOP producer.”

Last month, Salt Lake Potash contracted Veolia Water Technologies to supply HPD® crystallisation systems for Lake Way to help it produce a high-quality SOP fertiliser.

GR Engineering awarded with Abra EPC contract

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GR Engineering Services has been awarded a conditional engineering, procurement and construction (EPC) contract to deliver a 1.2 Mt/y lead sulphide flotation process plant and ancillary infrastructure for Galena Mining’s Abra Base Metals project in Western Australia.

The award, worth some A$74 million ($50 million), follows work carried out by the ASX-listed engineering company on the feasibility study and at the preliminary design stage of Abra.

The work will be undertaken on a guaranteed maximum price basis, according to GR Engineering, which confirmed that the contract remained subject to GR Engineering being issued with a full notice to proceed. This is dependent on Abra Mining Pty, Galena’s operating subsidiary, achieving financial close on its proposed project financing facilities. Galena, which owns 86.16% of the project through Abra, has said it will require A$170 million of pre-development capex to get the mine up and running.

GR Engineering has already commenced early engineering works up to an agreed capped amount, it said.

Geoff Jones, Managing Director of GR Engineering, said: “We are pleased to have been awarded the contract for the delivery of the Abra Base Metals project, which has followed GR Engineering’s involvement to date in the project’s feasibility study and preliminary design work.”

Galena completed a definitive feasibility study on Abra last year for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

Earlier this month, the construction of the Abra box cut commenced (pictured).

GR Engineering to grow Americas footprint with Hanlon Engineering buy

Mineral project development, Mining mergers and acquisitions, Mining services, , , , ,

GR Engineering Services has entered into an agreement to acquire Hanlon Engineering & Associates Inc as it looks to grow its existing footprint within the Americas.

Hanlon, based in Arizona, USA, is a multi-disciplinary engineering services firm that provides engineering, procurement and construction management services to the mining sector in North America. It was established in 1999 and employs around 40 people. Hanlon also has a satellite office in Elko, Nevada.

Among the list of mining companies Hanlon has carried out work for is Agnico Eagle Mines, Barrick Gold, BHP, Freeport McMoRan Hecla Mining and Newmont.

GR Engineering’s Managing Director, Geoff Jones, said the acquisition of Hanlon was aligned with GR Engineering’s growth strategy.

“We are pleased to be acquiring the Hanlon business,” Jones said. “Hanlon has a strong local brand with an excellent safety record and longstanding relationships with major mining clients. Hanlon has an experienced management team capable of taking advantage of the numerous growth opportunities that exist in the Americas.”

Based on Hanlon’s current workflow, identified growth prospects and GR Engineering’s existing pipeline of work in the Americas, GR Engineering anticipates the business will immediately contribute to GR Engineering’s revenue and become earnings per share accretive for the company in the financial year ending 30 June 2021.

The acquisition remains subject to the satisfaction of several conditions precedent customary for an agreement of this nature. It is anticipated that the acquisition will be completed by the end of February.

GR Engineering to help expand Saracen’s Carosue Dam gold operation

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GR Engineering Services says it has entered into a contract with Saracen Mineral Holdings that will see the company carry out the engineering design, procurement and construction of expansion works on its mineral processing plant at the Carosue Dam gold operations, in Western Australia.

The works under the contract include the upgrade of the existing processing plant capacity to a nominal throughput of 3.2 Mt/y by the installation of secondary grinding equipment, in addition to upgrades to the existing carbon-in-leach circuit and other process infrastructure, GR Engineering says.

The contract price is $24.5 million ($17 million), with work under the contract starting immediately with the completion of the upgrade expected to occur in the first half of its 2021 financial year.

Saracen has previously said Carosue Dam will soon undergo a mill expansion from 2.4 Mt/y to 3.2 Mt/y with feed coming from both underground and open-pit mines.

GR Engineering’s Managing Director, Geoff Jones, said: “Having been involved in the initial development of Carosue Dam in 2000, our team has maintained a strong relationship with Saracen and utilised its understanding of the project to deliver incremental benefits to the project. GR Engineering looks forward to achieving positive outcomes for Saracen through the safe and successful delivery of these expansion works.”