Tag Archives: Greenbushes

NRW’s Action Drill & Blast set for long-term contract at Greenbushes lithium mine

NRW Holdings Limited’s wholly owned subsidiary, Action Drill & Blast Pty Ltd, has been issued a Notice of Award by Talison Lithium Australia Pty Ltd for drill and blast services at the Greenbushes lithium mine in Western Australia.

This award follows the longstanding relationship Action has had with Talison Lithium since Action commenced drill and blast activities on site in 2011, NRW said.

The seven-year (plus two-year option) contract is valued at circa A$300 million ($203 million) over the initial seven-year period and is scheduled to commence in July 2023.

The scope of works under the contract include ore, easte, pre-split and RC grade control drilling together with loading, stemming and initiation of bulk explosives.

Plant requirements for the project will be sourced from within the Action business together with new equipment capital expenditure of circa-A$30 million over the life of the contract.

The contract will require a peak workforce of some 160 personnel, including the 56 currently employed on site. The majority of the workforce will be sourced from the local community, building on current relationships and training programs, NRW said.

Macmahon Holdings to take on load and haul duties at Greenbushes lithium mine

Macmahon Holdings says it has received a Notice of Award from Talison Lithium Australia for the load and haul mining works at its Greenbushes lithium project in the southwest of Western Australia.

Talison Lithium is a Western Australia-based mining company which is 51%-owned by a joint venture comprising Tianqi Lithium Corporation and IGO Limited, and 49%-owned by Albemarle Corporation.

Together with its predecessor company, Talison Lithium has been producing lithium concentrates at Greenbushes since 1983 which are ultimately used in lithium batteries. The Greenbushes project, directly south and adjacent to the town of Greenbushes in Western Australia, is a major supplier of lithium mineral concentrates.

The scope of works on the Greenbushes project includes open-pit mining activities of load and haul, and crusher feed.

Subject to final documentation of certain in-principle agreed terms and signing within 30 days, the contract will commence on July 1, 2023, for a seven-year period and has an option to extend for up to two years. The contract is estimated to generate revenue in excess of A$1.1 billion ($731 million) over its initial seven-year term.

Key mining equipment required for commencement will be from deployment of Macmahon’s existing available mining fleet with minimal impact to capital expenditure in the 2023 financial year, Macmahon says. The maximum remaining capital expenditure required to support this project is spread from the 2024 to 2028 financial years (inclusive) and totals approximately A$128 million. The five-year spread of this capital spend enables Macmahon to maintain a strong balance sheet and enhance return on average capital employed performance, and a number of opportunities exist to optimise this further.

Macmahon said: “The Greenbushes project is in an attractive location, has an existing long-term and loyal workforce with many based in the area. We are eager to engage with them and other people to discuss employment opportunities on the project to build a world-class team. Engaging with the on-site team is a priority for us upon award given the high level of performance we have noted on the project.”

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to have received the Notice of Award from Talison Lithium for load and haul mining services at its Greenbushes lithium project and look forward to finalising the contract. We very much value the relationship we have forged with Talison Lithium and will continue to build on it. The award of this contract delivers on our commodity diversification strategy into future relevant commodities.”

Monadelphous receives work with Rio Tinto and Talison Lithium

Monadelphous Group says it has secured new contracts in the resources sector totalling approximately A$100 million ($70 million), which includes work on the Oyu Tolgoi underground project, the Greenbushes lithium mine and the Marandoo iron ore mine.

At Oyu Tolgoi in Mongolia, Monadelphous is to construct surface infrastructure for the underground project. The work includes construction of two conveyors and an electrical substation, and associated integration to existing facilities.

Monadelphous has been operating in Mongolia since 2017 and will continue its focus on upskilling its Mongolian national employees as a key element of the contract execution strategy, Monadelphous said.

In addition, the company has been awarded a contract with Talison Lithium Australia for the construction of a range of facilities associated with the mine services area at its Greenbushes mine site in the southwest of Western Australia. The work, which includes structural, mechanical, piping and electrical and instrumentation services, is expected to be completed in the first half of 2023.

Monadelphous’ fabrication business, SinoStruct, has secured a contract to fabricate over 2,000 t of structural steel for a construction project in Ashburton in the Pilbara region of Western Australia. Work is expected to be completed in early 2023.

Also in the Pilbara region, Monadelphous has been awarded a contract with Rio Tinto for the upgrade of conveyor facilities at the Marandoo iron ore mine. Site works are scheduled to commence in early 2023 and are expected to be completed in the March quarter of 2024.

Tianqi and IGO herald battery-grade lithium milestone at Kwinana refinery

Tianqi Lithium Energy Australia Pty Ltd (TLEA) has announced first production of battery-grade lithium from its plant in Kwinana, Western Australia, marking the first time battery-grade lithium, or lithium hydroxide monohydrate (LHM), has been produced in Australia in commercial quantities.

This is a significant milestone for TLEA and Australian mining as the sector expands to meet rapidly growing demand for rechargeable batteries, primarily from the electric vehicle and energy storage system industries, TLEA, a joint venture between IGO (49%) and Tianqi Lithium (51%), says.

TLEA’s Kwinana plant has successfully met internal certification processes with the on-site laboratory confirming that battery-grade specification has been met on 10 t of lithium hydroxide, produced consistently over several days. Samples have been sent for independent verification, TLEA says.

The next step in the plant’s ramp-up process is customer qualification, which will be completed over the next four to eight months. During this time, the plant will continue to focus on stable, consistent and reliable production of battery-grade lithium.

“We are immensely proud to demonstrate that Australia can value add to its minerals onshore as it enhances its reputation as a critical contributor to the production of batteries for electric vehicles and energy storage, which are absolutely vital for the decarbonisation of the world’s economy,” TLK Chief Operating Officer, Raj Surendran, said.

“This is an exciting time for our shareholders, suppliers and service providers who have contributed to the construction and ramp-up of the Kwinana Plant, and our employees who have worked so hard to turn the dream of producing battery-grade lithium hydroxide in Australia into a reality.

“Today’s milestone proves Australia has the capability and expertise to transition from a ‘dig it and ship it’ minerals supplier to a downstream supplier of value-added product.

“However, we also remain acutely aware that there is more work to do to establish the Kwinana plant as a reliable, significant producer of battery-grade lithium, starting with customer acceptance.”

TLEA owns the first lithium hydroxide plant in Australia and the largest in the world to be built and operated outside of China. Lithium hydroxide produced at the plant will be containerised and exported from the Port of Fremantle to customers around the globe.

Surendran said the first train at TLEA’s Kwinana Plant will now continue its ramp-up towards its nameplate capacity of 24,000 t/y of battery grade lithium hydroxide.

Lithium hydroxide is a lithium-based compound derived from spodumene, a lithium-bearing pegmatite mineral. Spodumene is sourced directly from the Greenbushes mine 250 km southwest of Kwinana (Albemarle 50%, Tianqi Corporation 25%, IGO Ltd 25%).

Lycopodium builds on Talison Lithium relationship with CGP3 EPCM contract

Lycopodium says it has been awarded the engineering, procurement and construction management (EPCM) services contract for Talison Lithium Australia’s Chemical Grade Processing Plant #3 (CGP3), to be developed at its Greenbushes site in Western Australia’s southwest.

Talison Lithium and its predecessor companies have been producing lithium minerals from the Greenbushes lithium operations since 1983, with the area recognised as the longest continuously operated mining area in Western Australia (circa-1888).

The mining and processing operations at Greenbushes have been upgraded and expanded over the decades to increase production and incorporate new technologies as demand for lithium minerals has grown.

The development of this third chemical grade lithium processing plant at Greenbushes will enable Talison to continue to supply the downstream lithium processing facilities of its shareholders currently being established in Western Australia and its facilities in China, Lycopodium says.

Lycopodium’s EPCM services on CGP3 incorporate engineering and design, including earthworks, civil, structural, mechanical, piping, electrical and instrumentation, as well as providing overall project management, including procurement and contracts management, expediting logistics and materials management, and construction and commissioning management services through handover of operational facilities to Talison Lithium.

Lycopodium is very familiar with the Greenbushes site and has an established relationship with Talison Lithium in the development of its Greenbushes operations including the previously awarded EPCM services for the new Mine Services Area project where Lycopodium is currently in the detailed engineering design, critical equipment procurement and pre-mobilisation phase for the project.

Lycopodium’s incorporated joint venture with Monadelphous (Mondium) is also currently delivering the Tailings Retreatment project at the mine.

Lycopodium Limited’s Managing Director, Peter De Leo, said: “We have been working in partnership with Talison for a number of years now, and having supported them through the development phases to optimise the CGP3 project, it is very pleasing to see it is now progressing to implementation.”

Talison Lithium is owned by two companies under a joint venture arrangement Tianqi Lithium Corp/IGO Limited JV (51%) and Albemarle Corporation (49%).

SIMPEC books more business on Talison lithium mine expansion project

SIMPEC has been rewarded for its work on the Talison lithium mine in Greenbushes, Western Australia, with a contract extension from head design and construction contractor MSP Engineering.

The contract scope extensions and purchase orders, which total some A$1.8 million ($1.3 million), will see SIMPEC supply and install site-wide concrete footings (including earth works), the final tails pump and piping system, and chute fabrication works for the Chemical Grade Plant 2 (CGP2) project.

SIMPEC was previously awarded a A$2.7 million contract by MSP Engineering to design, supply and construct process water tanks at the CGP2 project, which will more than the double capacity of the Talison lithium mine to 1.34 Mt/y of concentrate. The project, owned by Talison through a 50:50 joint venture between Albemarle and Tianqi Lithium, is due for commissioning in the June quarter of 2019.

Mark Dimasi, SIMPEC Managing Director, said: “We are pleased to have gained extra work on this high-profile project that is helping underpin expansion of the lithium processing industry in Western Australia.”

With the expanded scopes of each of SIMPEC’s current projects with MSP Engineering, the WestStar Industrial subsidiary has added A$7.8 million of work to its order book. This includes work on BHP’s South Flank iron ore project.

SIMPEC receives contract at world’s biggest lithium operation

WestStar Industrial’s engineering contractor business SIMPEC has found more work in Western Australia, this time at the world’s biggest lithium operation, Greenbushes.

The company has been awarded a contract by MSP Engineering to design, supply and construct process water tanks at Talison Lithium’s Chemical Grade Plant 2 project.

The contract, which has a value of around A$2.7 million and commences imminently, will see the tanks delivered over a six month period. They will form part of a complex, state-of-the-art mineral and chemical processing facility, according to WestStar.

SIMPEC Managing Director Mark Dimasi said the contract award was the culmination of many months of effort from his team and the company was “optimistic that our work here will translate into further awards and even greater market traction”.

SIMPEC won the business from MSP after it was engaged by the engineering company to supply and subsequently install high voltage and fibre optic cables and concrete pits at the project.

MSP is the head contractor for the design and construction of the project, which will more than double the capacity of the Greenbushes mine to 1.34 million tonnes per year of lithium concentrate. The project, owned by Talison, a 50:50 joint venture between the US’ Albemarle and China’s Tianqi Lithium, is due for commissioning in the June quarter of 2019.

Earlier this month, SIMPEC was contracted to provide “expert engineering services” for the ore handling plant area at BHP’s South Flank iron ore project, also in Western Australia, which followed on from the contractor providing a constructability and estimate review desktop study on the project earlier in the year.

Such wins have seen the company recently add A$5 million of work to its order book after bidding for some A$150 million of work in Australia over the past six months.