Tag Archives: Indonesia

Volvo ADTs, excavators hit the ground running at Weda Bay nickel project

At the Weda Bay nickel project in Central Halmahera, Indonesia, a fleet of Volvo articulated haulers and excavators are, the mining OEM says, offering excellent stability on soft ground for safety-conscious mining service contractor Samudera Mulia Abadi, while also delivering high uptime, productivity and fuel efficiency.

Samudera Mulia Abadi, headquartered in Manado, North Sulawesi, is one of Indonesia’s leading service contractors for the mining of gold and other minerals. The privately-owned company specialises in mine preparation – including infrastructure and site establishment, earthwork and land clearing, and project management – as well as excavation, loading and hauling in open-pit mines, and on- and off-road haulage.

The company’s latest endeavour is a five-year contract on a $30 billion project to extract nickel ore and transport it to the smelter at the Weda Bay nickel project in Central Halmahera. The main challenge here is the soft terrain in the pit and on the hauling roads.

“We try to remain efficient in carrying out any work in order to achieve the best return and there is no compromise on safety,” Willson Sastroamijoyo, Commissioner PT Samudera Mulia Abadi, says. “Every line of work must prioritise safety. Given the pit and hauling conditions, Volvo articulated haulers are the perfect choice as our production unit. Volvo excavators are also suitable to handle ore material like this.”

When the project began in August 2020, Samudera Mulia Abadi commissioned a fleet of 17 Volvo articulated haulers (six A40G and 11 A60H models) and 12 Volvo crawler excavators (two EC200D, five EC210D, two EC300DL and three EC480DL models), which will remain on site for as long as possible.

On delivery, dealer Indotruck Utama provided training to Samudera Mulia Abadi’s staff to promote safe operation and help them get the most value out of the machines. Since then, the dealer has continued to carry out refresher training as operator behaviour and safety procedure on site play an important part in increasing safety in eastern Indonesia.

The A60H is the largest Volvo articulated hauler with a 33.6 cu.m body volume and 55,000 kg payload capacity, while the A40G is the third largest, offering a 24 cu.m body volume and 39,000 kg payload capacity. On both models, the matched drivetrain, automatic drive combinations including 100% differential locks, all-terrain bogie, hydro-mechanical steering and active suspension ensure excellent traction and operator comfort on the most difficult terrain.

They are also designed for extreme durability and high fuel efficiency so that operators can reliably move more tonnes per hour at a lower cost, according to Volvo. The Hill Assist, Dump Support System and Rear View Camera, meanwhile, help to minimise the safety risk on site.

The Volvo crawler excavators, ranging from 20 t to 50 t in capacity, likewise offer excellent stability, fast cycle times and low fuel consumption, promoting safe, productive and profitable operation, Volvo said

“Our operators are happy to work with Volvo machines because they are comfortable and user-friendly. The quality, durability and comfort of the products have benefited us in many ways,” Sastroamijoyo says.

Volvo CE says: “Samudera Mulia Abadi works the machines hard – typically up to 22 h/d across two shifts, seven days a week – so machine availability is closely linked with productivity and profitability. It is crucial that they are durable enough to withstand such high utilisation and have simple service and maintenance requirements fulfilled by a responsive and reliable dealer. By always being ready to work, the machines help Samudera Mulia Abadi achieve its tonnes per hour and cost per tonne production targets.”

Because of this, the company has also relied on machinery from Volvo Construction Equipment on several other of its contracts over the last five years, including the Gag Island nickel project in West Papua and the Toka Tindung gold mine project in North Sulawesi.

At these two sites, Samudera Mulia Abadi operates a total of 116 Volvo machines, including 50 A40Fs, 17 A40Gs, five A45Gs and three A60H articulated haulers; one EC200D, eight EC210Bs, five EC210Ds, 12 EC350DLs, six EC480DLs, six EC950ELs crawler excavators; and one SD110 compactor.

“The overall machine performance is good and physical availability is above the target,” Sastroamijoyo says. “Of course, we are aware that the machines experience some occasional downtime, even if they are the toughest. The important thing is our how the dealer responds when these unfortunate situations occur.

“We have a good working relationship with our dealer Indotruck Utama. Their skilled service team speeds up the servicing time, while the consigned parts on site ensure high parts availability. Overall, the performance of the machines and the quality of product support increase our profitability.”

Macmahon books A$600m of work with Newcrest, AngloGold and Vale

Macmahon Holdings has bolstered its order book with a number of contract extensions involving the Tropicana and Telfer gold operations, in Western Australia, and the Hu’u copper-gold project, in Indonesia.

At the Tropicana mine, a joint venture between AngloGold Ashanti Australia Ltd (70% and operator) and Regis Resources Ltd (30%), Macmahon has been providing mining services since open-pit mining started in July 2012 under a life of mine alliance contract.

The additional work for Macmahon follows the completion of a detailed final cutback study of the Havana pit and subsequent confirmation of the optimal method to mine the deeper ore in the Havana ore body. Macmahon has now been provided with the scheduling detail for the cutback, which will add 155 Mt to the material to be mined from 2024.

The final cutback of Havana will extend the open-pit mine life by four years, from 2023 to 2027, and is expected to generate additional revenue of approximately A$470 million ($340 million), it said.

Macmahon has also extended its life of mine contract with Newcrest for the Telfer mine.

On August 12, Newcrest announced it will proceed with the West Dome Stage 5 cutback at Telfer. This new scope of work is expected to generate revenue of circa A$138 million and will extend Macmahon’s work on site to September 2024. This new work has been negotiated on updated rates, which are forecast to achieve the company’s internal financial hurdles, Macmahon explained.

In Indonesia, Macmahon has received a letter of award to construct an 11 km access road at the Hu’u copper gold exploration project on Sumbawa island. This work is valued at approximately A$18 million and is a further step in the company’s strategy to increase its revenue from mining support services.

Subject to finalisation of contract documentation, the project is forecast to commence in September 2021 and employ approximately 150 people. The Hu’u project is 80% controlled by Vale SA. Vale has previously said the project could produce more than 250,000 t of copper and more than 200,000 oz of gold.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are pleased to have secured this additional work which adds approximately A$600 million to our order book. A key highlight is the extension of our long-term alliance contract at Tropicana, which has been a cornerstone of our surface mining business in Western Australia for many years and has recently expanded into underground mining.”

Austin kicks off plan to automate engineering facilities in Perth and Batam

Austin Engineering Ltd says it has commenced a A$6.5 million ($4.7 million) capital investment to transform and automate its design and manufacturing facilities at its major Asia Pacific centres in Perth and Indonesia.

The capital expenditure program will involve a new manufacturing flow approach with increased automation, custom jigs, fixtures, workstations and a standardised manufacturing approach to building product. Austin will still be able to provide customised engineering solutions and products to its customers while leveraging the benefits of a production flow line, it says. In particular, Austin sees major benefits to its truck body product offering, which comprises circa-70% of Austin’s annual revenues.

Critical outcomes to the investment will be to reduce the time to deliver customised solutions to clients, while maintaining or enhancing quality outcomes. Further targets include waste reduction and decreasing the workshop capacity required, lowering the overall product cost base, Austin says.

The program of works was outlined in the second phase of Austin’s recently communicated global strategic review results, which identified opportunities for future growth and ways to optimise the company’s cost base.

The expected payback period is 12 months, post-implementation, with the majority of benefits to be realised in the company’s 2023 financial year, although incremental benefits will be achieved during the latter months of its 2022 financial year. Funding will be available through operating cash flows and surplus asset sales, according to Austin.

The approach is expected to be scalable and transferable to other Austin manufacturing operations in the medium term and will support Phase 3 of the strategic review, which focuses on further product and service improvements through technology and innovation, it says.

Austin CEO and Managing Director, David Singleton, said: “Improvements being made in Austin’s manufacturing facilities in Perth and Batam in Indonesia will elevate an already market-leading service offering. We will be able to deliver products more quickly, in larger quantities, with less waste, and with improved quality, while still offering tailored design and engineering solutions to our customers. What is exciting about our manufacturing improvement project is its scalability at a relatively modest incremental cost. This made the decision to adopt a fast follow from Perth to Batam easy. The investments made also support longer term strategies around product and service innovation as outlined in our strategic review.”

Metso Outotec to provide copper smelting engineering, tech to PT Freeport’s Manyar project

Metso Outotec has signed a major engineering and technology contract as well as licence agreements for the delivery of what it says is a landmark copper smelter complex to be built in Gresik, East Java, in Indonesia.

The project owner is PT Freeport Indonesia, with PT Chiyoda International Indonesia being the engineering, procurement and construction contractor. Four-fifths of the approximately €360 million ($424 million) contract has been booked in the company’s Metals’ September quarter order intake and the rest in Minerals’ September quarter order intake, it said.

Metso Outotec’s scope of delivery is based on the licensed Metso Outotec Flash Smelting, Flash Converting and Lurec® technology. It includes the design and supply of key process equipment and process control systems for the main areas of the smelter complex, the copper electrolytic refinery, the gas cleaning and sulphuric acid plant, the slag concentrator and the effluent treatment plant.

Metso Outotec has previously provided certain front-end engineering design and other advance engineering services for this 1.7 Mt/y copper concentrate smelter complex, which is expected to be commissioned in 2024. According to PT Freeport, the Manyar smelter will be the largest copper processing site in the world upon start up.

Pekka Vauramo, President & CEO, Metso Outotec, said: “Our joint efforts with Freeport Indonesia and Chiyoda will set a new standard for the copper smelter industry in fulfilling the strictest international environmental standards and efficiency requirements. We are very happy to work together to implement this game changing copper smelter.”

Jari Ålgars, President, Metals business area at Metso Outotec, added: “We have worked with Freeport Indonesia and Chiyoda for several years to ensure and select the best available process design and technologies for the Manyar project.”

Metso Outotec has delivered 51 Copper Flash Smelters around the world, with the company’s Copper Flash Smelting the most widely applied technology for copper smelting in the world, it said. The solution is also one of its Planet Positive solutions. Using this technology, Metso Outotec’s customers avoided more than 1.6 Mt of CO2 emissions in 2020, the company said.

Weir Minerals pairs Multiflo, Warman and ESCO technology in latest slurry pump

Weir Minerals has launched the new Multiflo® Mudflo™ hydraulic submersible slurry pump, engineering the pump to, it says, tackle abrasive applications and large particle handling.

The Multiflo Mudflo pump features a hydraulically driven wet-end specifically designed to efficiently and safely reprocess and relocate tailings ponds, maintain water retention dams and manage slimes and sludge ponds.

It combines the Warman® MGS pump-end, Multiflo CB32 hydraulic cutters and ESCO® excavation teeth to provide efficient pumping of highly charged and abrasive slurries, the company claims.

Weir Minerals’ Ultrachrome® A05 chrome alloy impeller ensures high wear resistance and the specially engineered suction strainer minimises the risk of clogging by preventing large solids and debris from entering the pump. Drawing on decades of Warman pump design experience, the Multiflo Mudflo pump is capable of pumping between 150 cu.m/h and 1,200 cu.m/h, up to 82 m head.

The Multiflo CB32 hydraulic cutters feature the ESCO Ultralok® tooth system to prevent premature breakage, avoid tooth loss and protect the integral locking system to ensure the continuous operation of the pump, it says.

Engineered by the Weir Minerals dewatering pump experts in Australia, it is available for global customers from July 2021.

Cameron Murphy, Director of Dewatering Weir Minerals APAC, said: “The Multiflo brand is synonymous with high quality and long-lasting equipment. In designing the Mudflo pump, our dewatering experts drew from the very best Multiflo, Warman and ESCO technology and used advanced hydraulics to create an innovative and cost-effective new solution for mine dredging applications.”

The product was developed following close customer collaboration and a mutual commitment to safety and technical excellence, Weir Minerals said.

Geoff Way, Weir Minerals Dewatering Specialist, said: “It is not uncommon for sites to use a combination of pumps, shovels, excavators and trucks for dredging applications. When one of our long-time partners in Indonesia contacted us about developing a custom solution for the slurry build-up in their sumps, we knew we could provide a better solution. We are problem solvers. We considered our customer’s pain points and engineered a new solution to efficiently and safely manage their site processes.”

The Multiflo Mudflo pump can also be retrofitted to competitor OEM equipment, Weir Minerals says, with the quick-hitch plate attachment ensuring convenient installation and removal from hydraulic excavators.

The Multiflo Mudflo pump can be assembled on land, eliminating the safety risks associated with assembling pumps over water. Furthermore, the new hydraulic hose management system reduces the risk of hose entanglement and trip hazards, all the while providing a reliable hose bend radius to ensure smooth oil flow.

Heritage Minerals smashes Dando Terrier percussive drilling depth record

The Heritage Minerals team, led by Drilling Manager, Shane Charlton, has been achieving depths of 46 m with high-quality 86 mm samples using Dando Drilling’s Terrier percussive drill rig, the drilling manufacturer says.

The depth is a record for the Terrier rig, according to Dando.

Heritage Minerals is currently working on the historied Mount Morgan mine in Queensland, Australia. One of Australia’s oldest mines, Mount Morgan was active from 1882 through to the 1980s. In the process, tens of millions of tonnes of tailings were generated.

Today, these tailings present both a problem and an opportunity; a problem because they were subject to old, polluting technologies for processing gold, but an opportunity because they still contain reserves of gold, copper and other minerals.

Heritage Minerals is employing innovative processing technologies such as ReCYN, developed by partner GreenGold Engineering, to clean pollutants from the tailings and returning them to safe land.

It was this technology and the tailings recovery aim IM recently focused on for an in-depth article on Mount Morgan.

Heritage chose a Dando Terrier rig to sample the tailings at Mount Morgan for several reasons, Dando said.

“Foremost, the unconsolidated geology of tailing fines is very hard to sample with conventional rotary equipment,” it said. “The Terrier’s Duplex Sampling System, which is driven into the ground by a 64 kg anvil and simultaneously cases-off and samples, provides excellent recovery in this type of unconsolidated geology for metallurgical and in-situ density measurements.”

Charlton proved and refined the drilling method he used in the mineral sands of Kalimantan, Indonesia, where he sampled alluvials to over 20 m for lab analysis, Dando says. This is an impressive feat for a rig that has a large user base for geotechnical sampling, standard penetration testing and dynamic probe testing, most often at depths of less than 15 m.

More than doubling this to 45 m was no easy task, Charlton explained: “At depth, it took almost 10 minutes to trip the drive rods and retrieve the sample, but the quality of the sample and the economies in terms of cost per metre offset the sometimes slow drilling.”

Heritage has recently purchased a second Terrier rig from a Dando customer in Australia and Charlton has made some modifications to the design to facilitate drilling beyond the original specifications of the rig.

“We’ve fitted a permanent casing extractor to help pull sample tubes and casing if they get stuck, as well as modifications to assist with tripping rods more quickly,” he said.

To achieve these depths, the team are using a reaming method whereby they sample using an 86 mm windowless sampler tube, and then ream out using a larger 116 mm tube before returning to the 86 mm sampler to continue. This reduces frictional forces along the side of the borehole and abrasive tailing materials, according to Dando.

The percussive hammer system allows sampling without flush, minimising the need for cumbersome mud tanks or air compressors while preventing contamination of the sample or the environment, it added.

Cokal secures HPU as contract miner for BBM coking coal project

Cokal has entered into a binding agreement with PT Harmoni Panca Utama (HPU) to provide contract mining services for development and mining of the Bumi Barito Mineral (BBM) coking coal project in Indonesia.

The ASX-listed company named HPU as the preferred tenderer to provide contract mining services for the project back in November.

The five-year agreement represents a significant milestone in Cokal’s strategy for the near-term development of BBM into an operating coal mine for minimal upfront capital costs, producing premium export quality coking and pulverised coal injection coal (PCI) products, the company said.

HPU will carry out contract mining of overburden and associated services, including project management, mine planning, surveying, supervision, site security, materials, equipment, equipment maintenance, labour, transportation, medical services, consumables and site infrastructure, Cokal said.

Use of contract mining provides significant strategic and financial advantages for Cokal, with the costs of these services linked to international coking coal prices, the company said. This is aimed at protecting Cokal’s operating margin through the cycle.

Cokal says it is now endeavouring to commence development of BBM in an expedited timeframe and is working with HPU on the necessary operational and logistical matters.

BBM is in the Central Province of Kalimantan and is Cokal’s most advanced project. It has a mining lease area of 14,980 ha and a remit to produce premium coking coal and PCI products for the nearby Asia steel markets.

Austin Engineering lauds APAC performance as it heads for FY21 guidance hit

Austin Engineering Ltd is on track to hit its earning guidance after securing new orders for more than 100 products, including truck bodies, water tanks and buckets totalling more than A$35 million ($26 million) in revenue over the past few weeks.

This order flow supports previously announced earning guidance of an underlying net profit after tax in excess of A$9 million for its 2021 financial year (to June 30, 2021), which remains in place, Austin said.
Recent confirmed notable purchase orders received include:

  • Seventy-eight truck bodies for a large global miner in the Pilbara region of Western Australia for delivery throughout the balance of the current and next Australia financial years;
  • Twelve truck bodies for a large global mining contractor for delivery into Queensland, Australia – manufactured in Austin’s Indonesian facility;
  • Eight truck bodies for a large global gold miner in Western Australia; and
  • Three stairway access water tanks for a large global miner in Queensland, Australia – manufactured in Austin’s Indonesian facility.

Austin’s order book and committed work is now in excess of 70% of expected revenues, in line with this time in 2019, it said.

The Asia-Pacific region is outperforming expectations with key workshops in Perth and Indonesia well positioned to remain close to capacity for the balance of the financial year and beyond, the company added.

The economic environment in North and South America is less supportive than contemplated at the start of the financial year, Austin said.

“The continued backdrop of the US election and ongoing COVID-19 position in the USA appears to have impacted customer confidence in deploying capital in the short term,” it added. “Austin expects an improvement to this position, post January 2021, with annual budgets of US customers replenished on a calendar year basis, along with a completed Presidential transition. Ahead of this, Austin is currently quoting on a large volume of work in North America with decisions expected early in the third quarter (March quarter) of this financial year.”

Business conditions in South America have been similarly impacted by COVID-19, which has delayed several tender decisions for long-term supply contracts for both new equipment and repair and maintenance in Chile, Austin said. “Austin is well positioned for a number of opportunities but has seen short term softness due to the deferment of decisions,” it added.

Austin Managing Director, Peter Forsyth, said: “The Asia-Pacific region is performing exceptionally well at the moment with a strong line of sight to keeping our two large facilities in Perth and Indonesia close to capacity, and I am very happy with the level of orders and further opportunities in this region. Offsetting this strength, the Americas are currently facing challenging operating environments, and this is a product of the broader economies in those regions. I am heartened by the scale of opportunities in the US, Canada and Chile and we remain confident that the tide will begin to turn early in the New Year in these regions.”

In other innovation-focused developments, Austin said it was recently asked to provide a solution for a Canadian customer that had two key requirements when sourcing truck bodies for their operation: first, to achieve the maximum payload possible; and second, to ensure that the truck bodies would not require any maintenance before replacement.

Austin designed an ultra-light weight body that offered a substantial payload increase on previous designs with sufficient structural integrity to remain maintenance free for a shortened design life of less than two years, it said. This solution will enable the customer to achieve a lower cost per tonne and provides Austin with a more regular replacement cycle of equipment in this mine.

Cokal drafts in PT Harmoni Panca Utama for contract mining at BBM coal project

Cokal Limited has selected PT Harmoni Panca Utama (HPU) as the preferred tenderer to provide contract mining services for the development and mining of Cokal’s BBM coal project in Indonesia.

Aahana Mineral Resources SDN BHD (Cokal’s largest shareholder), through its experience and influence in developing and operating coal assets in Indonesia, significantly contributed to the selection process, Cokal said.

BBM is in the Central Province of Kalimantan, and is Cokal’s most advanced project. It has a mining lease area of 14,980 ha and a remit to produce premium coking coal and pulverised coal injection products for the nearby Asia steel markets.

Through its Indonesian subsidiary, PT Bumi Barito Mineral, Cokal has agreed to contract HPU for a period of five years to provide services such as open-pit overburden removal, provision of the required mining fleet and associated equipment, and coal hauling from in-pit to near-out-of-pit intermediate stockpile facilities.

HPU, one of the largest mining services companies in Indonesia, Cokal says, has agreed to mobilise upon receiving notice from Cokal to do so.

“The appointment of HPU remains subject to finalising formal contracts,” Cokal said. “However, Cokal’s commercial team have negotiated the key commercial terms, which are substantially attractive for Cokal, thus providing the opportunity to achieve favourable profit margins to be enjoyed by Cokal shareholders.”

Cokal Jakarta-based Director, Karan Bangur, said: “The team we have brought together at Cokal have extensive experience in the start-up and logistical solutions for coal mines in Indonesia. They have first-hand experience with major contractors and have ensured this award has been concluded on competitive terms with a strong contractor.

“The use of contract mining enables reduction of upfront capital requirements for commencement of mining and expedites the development of BBM. The company looks forward to working with HPU to maximise value from the production of premium export quality coking coal and PCI products.”

Hydraulink delivers new levels of service and uptime at Indonesia coal mine

An Indonesia coal mining operation in Kalimantan is, Hydraulink says, benefitting from the service availability, spare parts, and cost-efficiencies of partnering with the company’s hose and fittings organisation, as it seeks to maximise uptime of valuable equipment running 24/7.

Through local Hydraulink distributor, PT Intecs Teknikatama Industri (Intecs), the Indonesia mining contractor at the operation recently installed new hose fittings on a Cat 777D haul truck, weighs up to 161 t when full.

Hydraulink Indonesia Country Manager, Puji Wicaksono, said: “We knew this coal mining contractor needed all equipment running as efficiently as possible, with minimal downtime, to maximise their production and profitability. Hydraulics are crucial to reliability – just one broken hose can bring machinery grinding to a halt.

“So, we worked with our trusted and reliable local distributor, PT Intecs, and found that we could provide a better service offering for a lower cost than the customer was paying with their previous supplier.”

Hydraulink operates through more than 400 service points across Australia, New Zealand, Asia-Pacific, and the Pacific Islands, bringing essential, safety-complaint hydraulic hose and fittings, as well as traceable service expertise, to industries requiring prompt, quality 24/7 service either on or off site, it says.

The company services all of Indonesia, through local distributors like PT Intecs. PT Intecs has strengths in the mining market, which made them ideally suited to this job, according to Puji.

One of the challenges of being a supplier to a 24/7 mining operation is maintaining a reliable stock of spare parts of hydraulic hoses, fittings, adaptors and accessories. Hydraulink and PT Intecs worked with the customer to improve this offering compared with what it was receiving from a previous supplier.

“We keep stock of relevant hydraulic parts in the distributor branches closest to the mine site, which helps reduce lead times, and means we can service the mine vehicles more efficiently,” Puji said. “Additionally, all of our products are backed by warranty, so the customer has certainty that Hydraulink will stand by the quality of its products and service.”

To further enhance its offering to the mining contractor, Hydraulink provided tailored stock recommendations based on the machine population, and it also ran advanced training sessions with on-site personnel to ensure relevant employees were trained in the latest safety practices, according to Puji.

“Hydraulink also has a complete range of products, so the customer appreciates that they can source all their hydraulic components from a single source,” he said. “We are always working together with this customer to see how we can further improve our efficient stock management. And we’re available to solve any machinery performance issues that arise in the future.”