Tag Archives: GR Engineering Services

EcoGraf and GR Engineering sign LOI for 20,000 t/y graphite facility

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.

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

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.”

GR Engineering to lead Manono lithium-tin DFS in DRC

GR Engineering Services (GRES) is to act as engineer for the definitive feasibility study on AVZ Minerals’ 60%-owned Manono lithium and tin project in the Democratic Republic of Congo, the Australia-listed developer said.

GRES, based in Perth, Western Australia, is an engineering group with significant experience in study management and the engineering design and construction of resource projects in Western Australia and globally, both as EPCM and EPC contractor, AVZ said.

Manono, meanwhile, was recently the subject of a scoping study. This study showed a 5Mt/y project could produce around 1.1 Mt/y of concentrate at a minimum of 5.8% Li2O concentrate.

AVZ said: “The GRES team nominated for this engagement have appropriate experience in Africa, including in the DRC, where GRES recently provided operational support and optimisation studies at the Kipoi copper project (Tiger Resources).

AVZ’s Managing Director, Nigel Ferguson, said: “The appointment of GRES as the DFS engineer is a significant milestone for the Manono project as its work is highly regarded by leading financiers and lending institutions.”

Other DFS work streams are continuing to schedule including the metallurgical test work, AVZ noted. A 1 t sub-sample of the bulk sample has been sent to ALS Minerals in Perth for comminution testwork, with results from this expected soon.

The dewatering program for the Roche Dure pit has commenced. Approval to dewater the Roche Dure and M’Pete open pits was given to AVZ’s DRC management company, Dathcom Mining SAS, in mid-May by the Mines Environmental Protection, a section of the DRC Department of Mines. The approval was contingent on the building of a silt settlement pond and a water treatment facility into the existing dewatering channel, which has since been completed.

GR Engineering secures EPC contract with Tellus at the Sandy Ridge kaolin project

GR Engineering Services has entered into an engineering, procurement and construction (EPC) contract with Tellus Holdings Ltd for its Sandy Ridge kaolin project in Western Australia.

Tellus, a public unlisted infrastructure development company in the business of developing geological repositories that provide waste storage, recovery and permanent isolation solutions and complementary salt and clay products, says it is after a fully integrated facility for the long-term storage, recovery and permanent isolation of hazardous and intractable waste and an associated kaolin mining operation, some 75 km northeast of Koolyanobbing, in Coolgardie.

The contract price is around A$50 million ($36 million), with the works to be delivered under a guaranteed maximum price model, GR Engineering said.

The company’s scope of work under the contract includes the EPC and commissioning of the waste cell infrastructure, access roads, raw water supply and other key facility infrastructure for the Sandy Ridge underground waste facility.

The contract is expected to be carried out in two stages, with stage one comprising engineering and design and long-lead procurement activities for the work. This stage is anticipated to commence in the coming weeks, subject to the satisfaction of conditions precedent, which primarily relate to Tellus’ proposed financing facilities.

Stage two execution of the works is intended to commence mid-year, subject to Tellus satisfying additional conditions relating to the balance of the Sandy Ridge project approvals, GR Engineering said. Stage two includes mining of the first open-pit kaolin pit (waste cell), plus container yards, site warehouses and offices, roads, a 71-room accommodation village and associated services and utilities.

Tellus said the facility commissioning and full operations are scheduled from early-2020.

GR Engineering’s Managing Director, Geoff Jones, said: “We are pleased to progress this opportunity with Tellus, which has followed GR Engineering’s involvement to date in the Sandy Ridge project’s feasibility study and preliminary design work.”

In addition to this contract, Tellus has signed a circa-A$2 million PMC contract with Turner & Townsend providing project management services that support the Tellus owners team in managing all development phase contracts including the EPC contract (above); ancillary construction and equipment supply contracts; and key operational contracts.

Tellus is proposing to develop the Sandy Ridge facility, Australia’s first dual open-pit kaolin mine and arid near-surface geological waste repository in a 70 million-year-old kaolin clay bed with a 25-year operating licence. The proposal would involve mining up to 290,000 t/y of kaolin clay and receiving up to 100,000 t/y of Class IV and V waste at the facility gate over 25 years.

GR Engineering gets the Abra lead-silver DFS gig

Galena Mining has retained Australia-based GR Engineering Services to carry out the bulk of the definitive feasibility study (DFS) on its Abra lead-silver project in Western Australia.

The engineering company will undertake key portions of the DFS related to plant design, capital and operating cost estimation, and process and non-process infrastructure evaluation.

The commencement of the study comes following an “excellent” prefeasibility study for Abra, according to Galena. This envisaged a 1.2 Mt/y underground mine and conventional flotation concentrator for the project, producing a high-grade lead-silver concentrate containing some 91,000 t/y of lead and 760,000 oz/y of silver over a 14-year mine life.

GR Engineering Managing Director, Geoff Jones said: “GR Engineering was involved in the Abra PFS and we are pleased to have been engaged to deliver key aspects of the DFS and to assist Galena to realise the significant potential of the Abra base metals project.”

The DFS is targeted for completion in mid-2019. In the meantime, Galena expects to make progress on a number of other milestones including an updated resource, a review of the Abra ore reserve and underground mine design/schedule, permitting, and continuation of discussions related to offtake and project finance.

Galena is targeting commencement of construction at Abra in 2019, followed by initial production in 2021 and the first full year of steady-state commercial output in 2022.

During the past 11 years, GR Engineering has completed more than 40 design and construction projects and over 160 feasibility studies including a number of Australia base metals projects, Galena said.