Tag Archives: Hampton Mining and Civil Services

Pit N Portal to help revive Mincor’s Kambalda nickel operation

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Mincor Resources has awarded underground mining services and equipment hire group Pit N Portal with the underground mining contract for its 100%-owned Kambalda nickel operations in Western Australia.

The contract encompasses a five-year pact for the new Cassini nickel mine, where early surface works were recently completed, and a three-year contract (plus one two-year option) at the Northern Operations (the brownfields Durkin North and Long nickel mines – both of which are on care and maintenance having previously operated). These two assets (Cassini and Northern Operations) make up the planned nickel operation.

Pit N Portal was awarded the contract following the completion of a competitive tender process and a due diligence process led by Mincor’s Chief Operating Officer, Dean Will, examining safety, Kambalda underground experience and performance, capabilities, equipment availability and cost, the company said.

All key components of the contract are in line with the parameters set out in the Nickel Restart Definitive Feasibility Study (DFS) completed in March 2020. This was based on an initial five-year operation from two production centres with all ore processed at BHP Nickel West’s Kambalda nickel concentrator and the resulting nickel concentrate sold to BHP. The DFS envisaged 63,000 t of recovered nickel-in-concentrate output for an estimated pre-production capital expenditure of A$68 million ($41 million at the time).

Mincor has executed a binding contract with Pit N Portal subject to a Notice to Proceed being issued by Mincor before March 31, 2021.

The development company says it is targeting the commencement of mining operations at Kambalda in the second half of 2020, subject to board approval and a final investment decision on its Nickel restart plan. It said previously first nickel-in-concentrate production could be achieved in the second half of 2021, subject to COVID-19-related restrictions.

Established in Kalgoorlie in 2002, Pit N Portal has expanded its capacity and capability to encompass total, whole-of-mine solutions across Australia, and has significant underground mining contracts in Western Australia and Queensland. It was acquired by Emeco Holdings earlier this year.

Mincor’s Managing Director, David Southam, said the award of the contract to a Kalgoorlie-based business was consistent with the company’s commitment to maximise local content, to support local businesses and communities, and to create opportunities for a residential workforce wherever possible.

“We selected Pit N Portal based on a wide range of criteria including safety, performance, contract cost, experience and capability, ability to meet our mobilisation timelines and the size and quality of their contract fleet.

“Their equipment fleet suits our proposed style of mining and, as one of Australia’s largest hard-rock underground mining equipment solutions providers, we will have access to a large range of equipment options and high-class maintenance and rebuild capacity – giving us significant operational and strategic flexibility, which is important when operating a number of underground mines.

“This includes having access to the Emeco operating system, which could add significant value to future operations, as well as having a contracting partner that is willing to embrace the very latest in mining technology and data management and usage, including the proposed use of underground electric vehicles, which we have already trialled.”

Mincor has also completed – on time and budget – all works associated with the Early Works Contract at Cassini project. This work, carried out by Hampton Mining and Civil Services, included clearing of the Cassini site area, excavation of the box-cut (pictured), construction of the site office pad, magazine and waste areas and construction of the surface settling dams and haul road.

Mincor to leverage new EV, teleremote and production drilling tech at Kambalda

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Mincor says it plans to incorporate some of the most modern mining technology to enhance safety, boost operational efficiency and reduce costs at its integrated nickel re-start project in the Kambalda District of Western Australia.

Having released the definitive feasibility study on the project, the company is now awaiting a positive final investment decision from the Mincor Board. It hopes this will be made early in the September quarter. Should all go well, this could result in first nickel-in-concentrate production being achieved in the second half of 2021, it said.

The “Mincor Nickel Operations” DFS confirmed the potential to develop a five‐year operation producing 63,000 t of recovered nickel-in-concentrate for an estimated pre-production capital expenditure of A$68 million ($41 million). This could see the project, which is likely to feature a contract mining model, generate a post-tax internal rate of return of 88% based on the company’s estimates.

Mincor said: “Importantly, the DFS reflects a starting position only as potential extensions to the life of mine have been identified at Cassini, where recent diamond drilling returned a significant intersection of 17.6 m at 5% Ni, which is outside the current mineral resource boundary and has been excluded from the DFS.

“At the Northern Operations, underground drilling is planned once mine development commences targeting extensions and new discoveries in this well-endowed nickel mining area.”

Despite this remaining potential, Mincor has already kicked off an early works program at the operation, which has seen Hampton Mining and Civil Services begin a “discrete two-month program” focused on site clearance activities for infrastructure and services, plus the excavation of the box-cut at the high-grade Cassini orebody, Mincor said.

The mine plan at the project involves scheduling production from three distinct mining operations, Cassini, Miitel and the Northern Operations (Durkin North and the Long mines). The mine design physicals and associated costs for the three all feed into individual mine models, with the outputs from each model forming part of an integrated mining and processing plan to optimise mining and processing schedules. This is all geared around delivering annual average throughput of 500,000-600,000 t of ore to the Kambalda Nickel Concentrator, in line with a toll treatment pact Mincor has in place with BHP Nickel West.

With the start-up of Cassini and the re-start of the mines previously under care and maintenance, Mincor said it plans to incorporate some of the most modern technology at the operation.

An important aspect of the DFS, which the company has previously talked about, is the use of electric light vehicles underground.

Mincor said: “The use of these vehicles has been considered to improve air quality and reduce primary ventilation power costs within each of the mines.”

The company has tested this out recently with a trial of Safescape’s battery-electric Bortana EV at its Long mine.

In addition to this, underground Wi-Fi is set to be used in development and production areas for control of equipment and real-time monitoring of ventilation, pumping and fleet activity. Related to this, teleremote control and laser guided technology on loaders is likely to be employed.

And, lastly, production drills will be fitted with Minnovare’s Production Optimiser to ensure longhole drilling conforms to design, thereby minimising dilution, Mincor said.

The Production Optimiser system combines advanced hardware and software that enhances the speed, accuracy and reliability of long-hole production drilling. This leads to improved stope productivity and, ultimately, increased profitability, Minnovare says.

The technology has previously been employed with favourable results at Northern Star Resources’ Kalgoorlie gold operations.

Hamptons moves from gold to nickel for Mincor Resources

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Mincor Resources has awarded Hampton Mining and Civil Services with an early works contract to kick off the pre-development stage of a new nickel sulphide mine at its Cassini project in Kambalda, Western Australia.

The award of the contract follows board approval for the early works program and is consistent with one of the key uses of funds outlined in the company’s recent A$35.6 million ($23.8 million) capital raising.

The scope of works involves a “discrete two-month program” focused on site clearance activities for infrastructure and services, plus the excavation of the box-cut at Cassini, Mincor said.

Hamptons had a previous successful association with Mincor undertaking open-pit mining at its Widgiemooltha gold operations, and has therefore been able to mobilise promptly to complete work on this contract, according to the ASX-listed miner.

Following the completion of the updated Cassini mineral resource in November, the total nickel resources across Mincor’s Kambalda tenements now stands at 4.9 Mt at 3.8% Ni for 187,900 t of nickel.

Mincor’s Managing Director, David Southam, said the award of this early works contract, prior to completion of the definitive feasibility study scheduled for later this quarter, represents a strong vote of confidence by the board in the long-term future of Cassini – a key pillar in the company’s integrated nickel restart strategy.

“Given that Cassini is our flagship deposit, and with the project recently receiving all necessary key State Government approvals, it was a logical decision to commence pre-mining works as soon as possible,” he said. “We are currently assessing the mining contract tenders for both the Northern and Southern Operations, and these contractors are, importantly, separate from Hamptons for this discrete program.”

He added: “With Hamptons commencing work immediately, we expect this initial program of site works to be largely completed by the end of the current quarter. This will ultimately save the company time by having this preparatory work finished early, particularly as decline development to access the new underground mine at Cassini is one of the longer lead items in our overall development timeline.”