Tag Archives: Golding Contractors

EQ Resources enlists help of Golding for Mt Carbine tungsten development

EQ Resources Limited says it has executed an Early Engagement Contract with Golding Contractors Pty Ltd for the restart of the open-pit mining operations at the Mt Carbine Tungsten Mine, in Queensland, Australia.

EQR said it selected Golding, a subsidiary of NRW Holdings, as its preferred partner after working through a high-quality engagement and approval process.

“Early engagement was a preferred course for EQR as recent capital investment into the Mt Carbine processing plant is commissioning well and the company is receiving positive feedback from offtake partners for supply of our critical mineral product,” EQR’s Chief Executive Officer, Kevin MacNeill, said.

“EQR wants to deliver the highest quality outcome for the life of the Mt Carbine Mine for all stakeholders. Golding has strong credentials including specialist mine site rehabilitation works and environmental earthworks.

“Mt Carbine is ramping up treatment of its substantial low-grade surface resource as part of its joint venture with Cronimet with the next step in the development plan being the restart of its 100%-owned operations starting with the Andy White open pit, subject to the planned permit amendment. It’s a natural progression.”

Over the coming months, key areas of engagement and focus to finalise the mining contract and ensure smooth transition to mining operations will include:

  • Pit design: EQR is set to revise pit design in line with the recent drilling with Golding to maximise the strategic resource benefit and value for all stakeholders;
  • Equipment selection: In conjunction with the pit design under the contract, EQR and Golding will target strategic equipment selection to further optimise mining costs;
  • Contractor engagement: Golding will help manage the open-pit development through their in-house resources and network of preferred contractors to ensure compliance with Queensland mining legislation;
  • Stakeholder engagement: EQR and Golding will jointly engage local and strategic stakeholders regarding camp establishment, workshop establishment, personnel engagement, strategic regional suppliers and manufacturers; and
  • Timing: the open pit operations are forecast to begin during the first quarter of 2023.

EQ Resources, as a result of the acquisition of Mt Carbine Quarries in June 2019, now has 100% ownership of the two mining leases and surrounding exploration projects at the project. In a joint venture with Cronimet, the tungsten processing plant has been refurbished, commissioned and expanded to 300,000 t/y capacity.

The company is in the process of completing the required environmental amendments to allow the operation to process 300,000 t/y and eventually 1 Mt/y. Once the bulk test work is completed, a feasibility study will be completed for the design of the 1 Mt/y operation.

Golding Contractors banks A$600 million extension at SIMEC’s iron ore operations

NRW Holdings Limited’s wholly owned subsidiary, Golding Contractors Pty Ltd, has signed a contract with OneSteel Manufacturing Pty Ltd, trading as SIMEC Mining, to extend the current Mining Services Agreement (MSA) for a further three years.

Under the terms of the MSA, the term is extended until January 31, 2025, with an option for SIMEC Mining to extend the contract for up to another three years. The contract value for the initial three-year extension is around A$600 million ($429 million).

Under this new arrangement, Golding will continue to provide mine planning, load and haul, and maintenance services at the South Middleback Ranges and Iron Baron Mining Area, in South Australia, as well as the recommencement of a third mining area at Iron Knob.

Golding will continue to employ approximately 600 people at the mines, most of which live in the Whyalla district of South Australia or in the Adelaide region.

NRW CEO & Managing Director, Jules Pemberton, said: “This extended agreement is particularly pleasing as an example of a Golding team working closely with our client to generate sustained cost-effective solutions.”

Golding wins four-year extension at Kogan Creek coal mine

Golding Contractors Pty Ltd has signed a contract with Aberdare Collieries Pty Ltd, a subsidiary of CS Energy Pty Ltd (CS Energy), to extend the current Contract Mining Agreement (CMA) at the Kogan Creek Mine in Queensland, Australia, to beyond June 30, 2022.

Under the terms of the CMA, the term is extended four years until 30 June 2026, with an option for CS Energy to extend the contract for up to another four years, the NRW Holdings subsidiary said. The contract value for the initial four-year extension is around A$150 million ($110 million).

The contract extension represents the third mining contract term and life-of-mine to date for Golding and CS Energy at Kogan Creek, with Golding performing the civil works in 2006 before mining commenced in 2007.

Kogan Creek is an open-cut mine located in the Surat Basin of southern Queensland. The mine supplies the adjacent Kogan Creek Power Station with approximately 2.5 Mt/y of coal. Golding undertook civil works for the initial construction of the mine before becoming the mine operator in 2006.

Under this new arrangement all major plant and equipment will be supplied by Golding requiring a total new capital spend of circa-A$11 million in the first year. All the remaining fleet required is currently operating on site and is Golding owned.

Golding will continue to employ some 70 people at the mine, most of which live in the local Chinchilla or broader southeast Queensland regions. The scope of work includes: mine design and planning, drilling and blasting, overburden and parting removal as well as selective coal mining from over 30 different plies to ensure coal meets strict specifications.

NRW CEO & Managing Director, Jules Pemberton, said: “This extended agreement is the longest continuous contract in Golding’s proud history. Golding has now successfully negotiated four contract extensions with four different clients in the last six months demonstrating the business’ goal to work with our clients to deliver sustained value.”

Golding captures more coal contracts at Curragh, Broadlea

Golding Contractors, a subsidiary of NRW Holdings Limited, has continued to add new work to its portfolio, signing an agreement to introduce a seventh fleet at the Curragh coal operations in Queensland, Australia, and re-establish open-pit mining at the Broadlea pit, also in Queensland, for a member of the Fitzroy Australia Resources group of companies.

Back in August, Golding signed a letter of intent with Coronado Curragh, a wholly-owned subsidiary of Coronado Global Resources, to extend the current six fleet mining services contract beyond September 30, 2021. Negotiations to seal a binding agreement related to this LoI are ongoing.

The contractor has now signed a Letter of Direction with Coronado that would increase the mining plant at the Curragh Main Mine through the introduction of a seventh fleet for a 12-month period, commencing February 1, 2022. This is in addition to the current mining operations provided by Golding under the existing mining services contract.

Meanwhile, Golding has also signed a contract with a member of the Fitzroy Australia Resources group of companies to re-establish open-pit mining in the Broadlea pit for a period of six months, with work commencing in early November.

Fitzroy says of Broadlea on its website: “Broadlea is an open-cut mine located circa-7 km north of Carborough Downs, sharing key surface infrastructure including the coal handling and preparation plant and train load out facilities. Fitzroy has periodically operated Broadlea as a satellite operation during periods of favourable market conditions. The operation is currently on care and maintenance and Fitzroy continues to assess opportunities to restart production from the mine.”

Combined, this work is valued at approximately A$60 million ($45 million), employs 130 people and will be performed using existing Golding assets and hired fleets, the company said.

Golding Contractors to keep mining Phosphate Hill operation for another five years

NRW Holdings Ltd’s wholly-owned subsidiary, Golding Contractors, has signed a five-year contract extension with Southern Cross Fertilisers.

The contract with the Incitec Pivot subsidiary means Golding’s mining agreement at Phosphate Hill, in Queensland, Australia, will extend to September 6, 2026.

The expected contract extension value is anticipated to be between A$110-$120 million ($82-89 million) over the term.

Incitec Pivot agreed to purchase Southern Cross Fertilisers, then Australia’s only producer of ammonium phosphate fertilisers, from BHP for A$165 million back in 2006. The operation produced 979,300 t of ammonium phosphates in Incitec Pivot’s 2020 financial year to September 30, 2020.

Golding’s existing mining fleet will continue to operate in the mine and gypsum operations, with new capital spend limited to replacement of select light and medium vehicles, NRW said.

Golding employs around 80 people at the mine that operates on a fly-in fly-out arrangement from Townsville in northern Queensland.

NRW CEO & Managing Director, Jules Pemberton, said: “This contract extension reaffirms the strong relationship Golding has formed with Southern Cross Fertilisers at Phosphate Hill for more than a decade now, under various contract arrangements, and reflects our ability to secure repeat business through the quality and value of our service offering.”

NRW’s Golding set for contract extension at Coronado’s Curragh coking coal mine

Golding Contractors, a wholly-owned subsidiary of NRW Holdings Ltd, looks set to keep mining at the Curragh coking coal complex in Queensland, Australia, after the contractor and Coronado Curragh, a wholly-owned subsidiary of Coronado Global Resources, signed a letter of intent (LoI) to extend the current six fleet mining services contract beyond September 30, 2021.

Under the terms of the LoI, the mining services contract continues such that negotiations underway in respect of a proposed amended contract can be completed with the intention, subject to agreement as to terms, to extend the relationship with Curragh to December 31, 2026.

The expected contract value is anticipated to be between A$1-1.4 billion ($734 million-1.03 billion), dependant on final scope.

Under this new arrangement, it is anticipated that Golding will spend up to A$46 million on capital equipment, continuing to employ around 500 people at the mine, most of which live in the Central Queensland region.

NRW CEO and Managing Director, Jules Pemberton, said: “This agreement maintains the relationship Golding have established at Curragh Mine since 2014 and reflects our continued ability to support of our client’s mine plans.”

Curragh has been operating since 1983 and, in 2017, was the sixth largest metallurgical coal mine in Australia by met coal production, according to Coronado Global Resources.

Mining fleet changes hands at Boggabri coal operation

Most of the major mining equipment used at the Boggabri coal mine in New South Wales, Australia, is to be sold to Boggabri Coal Operations (BCO), part of the Idemitsu Group, following the exercise of an option between BCO and Golding Contractors, a subsidiary of NRW Holdings.

The transaction for the fleet, which includes 38 major mobile mining assets, has a target completion date of the end of July 2021.

Golding will continue to perform maintenance services on site across these, and another 50 (approximately) pieces of major mining equipment, engaging a workforce of over 150 personnel on site, NRW said.

The equipment will be sold for circa-A$81 million ($61 million) of which circa-A$64 million will pay down asset financing debt, NRW said.

NRW’s CEO and Managing Director, Jules Pemberton, said: “The option for BCO to acquire all or part of the associated mining fleet was identified at the time of the acquisition of BGC Contracting. This transaction will reduce debt and increase return on capital employed.

“We look forward to continuing to support BCO to ensure we are best placed to continue to provide our services beyond the current contract completion date of December 2022.”

NRW’s Golding to keep mining Wonbindi Coal’s Baralaba North operation

NRW Holdings Ltd says its wholly owned subsidiary, Golding Contractors Pty Ltd, has received a 12-month extension to its existing agreement with Wonbindi Coal Pty Ltd at the Baralaba North coal mine, in Queensland, Australia.

The award adds approximately A$120 million ($92 million) to the existing contract, which now extends to June 2022.

The extension cements the relationship between Golding and Wonbindi Coal where Golding has provided the contract mining services at the mine, maintaining and operating a wholly client owned fleet of equipment, producing an ultra-low volatile pulverised coal injection product since 2018. This original contract included overall mine planning; the removal of topsoil; drilling, blasting, loading and hauling overburden; loading and hauling of coal; and handling coal through the crushing and screening plant.

Golding and BMA strengthen ties with Blackwater civil works contract

Golding Contractors has been awarded a contract by BHP Mitsubishi Alliance (BMA) for civil works at the Blackwater coal mine in Queensland, Australia.

The NRW Holdings’ wholly-owned subsidiary’s scope of works to be undertaken included establishing alternate access for heavy vehicles outside of the mining footprint; providing civil infrastructure to enable the relocation of a communication mast; relocating critical mine infrastructure (HDPE pipeline, high voltage power lines, fibre optic cable); constructing the drainage structure, to remove water flows from the proposed mining area into an existing creek system; and providing flood protection (levees) for the new and existing mining pits.

As part of this project, around 1.2 Mm³ of earthworks, 4 km of HDPE pipelines, 22 km of fibreoptic cabling and 21 km of overhead cabling is expected to be installed.

The works have an approximate value of A$35 million ($23.7 million) and contract completion is anticipated to be in January 2021.

NRW’s CEO and Managing Director, Jules Pemberton, said it was pleasing to be awarded this contract following work secured in July for the same client at Goonyella, with a value of circa-A$34 million.

Those works, also being undertaken by Golding, include around 950,000 m³ of earthworks and 10 km of new pipework, with completion scheduled in August 2020.

NRW’s Golding to operate new trucks, excavators at Isaac Plains East coal mine

NRW Holdings’ wholly-owned subsidiary, Golding Contractors, has reached agreement with Stanmore Coal to increase overburden removal capacity at its Isaac Plains East mine in Queensland, Australia, with the addition of a third truck and excavator fleet.

During 2019, the mine has continued to increase production and the new contract mine plan is seeking to sustain current coal production volumes of around 3 Mt/y of run of mine (ROM) material.

The two companies, in November, agreed to extended the contract mining services contract for at least another five years.

The third fleet will commence operations in August, with Golding supplying an additional Hitachi EX3600 excavator, five EH3500 Hitachi trucks and the remainder of the ancillary fleet, the majority of which will be mobilised from NRW’s Middlemount project, NRW said, adding that the five EH3500 trucks will be replaced by 5 EH4000 Hitachi trucks as they become available from the Middlemount project.

Stanmore Coal has also entered into binding agreements to acquire a 600-t Caterpillar 6060 excavator for the Isaac Plains East mine from Cat dealer Hasting Deering. This will be commissioned later in the year, NRW said, with Golding operating and maintaining the machine. It will either move prime overburden in front of the dragline or overburden in dedicated excavator and truck pits uncovering coal, according to Stanmore Coal.

Stanmore said: “Once the environmental approvals are granted for the Isaac Downs project, it is planned that the excavator will transfer to Isaac Downs to commence the box-cut operation to establish the mine. Operations at Isaac Plains East will continue in parallel with the development of the Isaac Downs project.”

The total investment is expected to be A$13 million, which includes additional workshop facilities and associated equipment expenditure at Isaac Plains to support efficient maintenance practices, the company said.

The value of the increase in scope of the contract adds approximately A$450 million ($315 million) to the existing five-year contract Stanmore and Golding have in place, NRW said. The total contract sum is estimated to be around A$950 million at the current mine production levels.

NRW CEO and Managing Director, Jules Pemberton, said: “This amendment is built on the back of a productive relationship and a positive transition for both Stanmore and Golding to the Isaac Plains East operations. We expect our capital commitment to be very low at around A$10 million as we are able to utilise fleet secured through an agreed early release from the Middlemount Coal contract.

“The Middlemount contract is not formally due for completion until the end of the 2020 financial year, however we will be able to release certain fleet prior to that date and some fleet will also likely remain on site beyond the formal contract end date. As the Middlemount project is a maintained dry hire contract, the release of our fleet will enable us to re commit these assets to existing and new full-service contract mining opportunities in line with our mining divisions delivery model.”

Consultant Measured Group updated the Isaac Plains reserve in August 2018 with current estimates supporting over 10 years of open-pit mining at planned mining rates of 1.2-1.8 Mt/y of product coal. Total open-pit reserves as at August 2018 were 14.9 Mt (run of mine).

The contract amendment is tied to Stanmore Coal’s decision to defer the Isaac Plains Underground project and prioritise its Isaac Downs project, which has higher margin ROM coal to feed the coal handling preparation plant, Stanmore Coal says.

Stanmore Coal said the Isaac Plains Underground bankable feasibility study had been completed and confirmed a positive business case for the new underground mine with potential production ramping up to an average of 1.2 Mt/y of saleable coal from year two of the production plan.

“The quantum of product tonnes forecast for the underground combined with the open-cut sources exceeds the current CHPP and contracted port capacity. Stanmore Coal is prioritising its highest margin ROM coal at Isaac Plains East and Isaac Downs project, to maximise returns to shareholders. Accordingly, the Isaac Plains Underground project will be deferred until additional port and CHPP capacity are secured or until mining at the Isaac Downs project is largely complete, subject to prevailing business conditions.”