Tag Archives: Jules Pemberton

NRW Holdings bags mining contract at NRR’s Roper Bar iron ore project

NRW Holdings has been awarded the mining contract for Nathan River Resources’ Roper Bar iron ore project in the Northern Territory of Australia.

Roper Bar has a fully integrated ‘pit-to-port’ logistics chain including a privately-owned 171-km paved access road to an existing barge load-out facility and product stockyard, according to NRW.

The project was commissioned in October 2020 with first direct shipping ore (DSO) exports in November. Production ramp-up is nearing completion, with four vessels now completed (around 220,000 t). An offtake agreement exists between Glencore and NRR for the marketing and distribution of iron ore from the project.

This contract award covers the Stage 1 operations at Roper Bar, with production of 4.6 Mt of DSO and 1 Mt of dense media separation production at 1.5-1.8 Mt/y over three years. The contract scope includes drill and blast, load and haul, clearing and grubbing, top-soil and subsoil removal and rehandling of ore stockpiles.

The contract value is circa-A$123 million ($95 million) and has a duration of 33 months. At its peak, there will be around 55 site-based personnel on the project.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is pleased to be involved in the recommencement of the Nathan River mine site and looks forward to its successful execution.”

NRW Holdings to add further mining/metals EPC capabilities with Primero acquisition

NRW Holdings is in pole position to take over Primero Group following a cash and shares bid that values Primero at A$100 million ($74 million).

Primero Directors, who own around 30% of Primero’s equity, have unanimously recommended its shareholders accept the offer in the absence of a superior proposal coming forward.

The addition of Primero, NRW says, would provide significant engineering, procurement and construction (EPC) capability to NRW’s renamed “Minerals, Energy & Technologies” business pillar.

For Primero, meanwhile, it would deliver a “meaningful premium” to recent market trading levels and avoid the need for a potential significantly dilutive capital raising to fund working capital required to deliver its 2021/2022 financial year contracted order book, NRW said. Primero currently has a contracted order book for FY21 of circa-A$285 million and holds preferred EPC contractor status across multiple projects totalling circa-A$900 million.

Managing Director of NRW, Jules Pemberton, said: “The acquisition of Primero will provide NRW with the opportunity to expand its Minerals, Energy & Technologies specialised capability and to leverage the combined expertise of both companies to pursue new business initiatives across a large pipeline of opportunities.

“It builds on NRW’s recent acquisitions of DIAB Engineering and RCR Mining Technologies and represents a further diversification of our strategic platform to offer clients continuity of services across the whole lifecycle of resource projects – from early planning, design, development, construction to operations and maintenance. In addition, Primero is also well positioned to future-focused energy solutions, including lithium and hydrogen technologies.”

Primero Managing Director, Cameron Henry, added: “The combination of NRW’s diversified delivery model coupled with the Primero capabilities will provide our client base with a unique end to end delivery model that will differentiate within the current market and will rapidly accelerate Primero’s growth strategy.

“Our teams have been working well at multiple levels together over the past 12 months and have several projects currently approaching delivery stage that will showcase the model.”

Detailed information relating to the offer will be set out in the Bidder’s Statement and Target’s Statement, which are expected to be dispatched to Primero shareholders in late November and early December 2020, respectively, the companies noted.

Newly acquired NRW Holdings companies to work on Tanami Expansion 2

In announcing an encouraging 10-month financial performance, NRW Holdings revealed its RCR Mining Technologies (RCRMT) division, working in tandem with DIAB Engineering, had been awarded a works contract at Newmont’s Tanami Expansion 2 project in the Northern Territory of Australia.

In an update on the company’s performance to the end of April, NRW Holdings said it had generated A$1.6 billion ($1.05 billion) of revenue in the 10 month-period from June 2019, representing a record revenue for the group compared with any previous full financial year.

Over this period, the company had progressed with the integration of the BGC Contracting business into the group, following the acquisition at the end of last year.

On contract news, the company said RCRMT and DIAB Engineering, which the company acquired through the BGC buy, had secured a A$17 million fabrication package for Tanami Expansion 2, with the companies manufacturing the head frame and skyshaft steel work for the project.

Jules Pemberton, NRW’s Chief Executive Officer and Managing Director, said: “The award by Newmont to RCRMT provides an opportunity to bring both RCRMT and DIAB Engineering (acquired as part of the BGC Contracting transaction), together to deliver this important project.

“The ability to deliver this work from our regional facilities, in Bunbury, Geraldton and our Welshpool facility, to a major Australian project reflects the growing capability of NRW in the Australian manufacturing sector to provide specialised capital equipment for mining clients.”

Newmont’s board signed off on the TE2 project in October 2019. The expansion includes construction of a 1,460 m shaft, additional capacity in the processing plant, and supporting infrastructure to enable profitable recovery of ore at a depth of 2,140 m below surface.

NRW receives BGC contract win at FMG’s Eliwana project

NRW Holdings’ newly acquired BGC Contracting business has been awarded an infrastructure contract with Fortescue Metals Group at its Eliwana iron ore mine and rail project, in the Pilbara region of Western Australia.

The new contract, which came just two weeks after NRW announced the completion of the BGC acquisition, will support the development of 143 km of rail for the Eliwana project, according to the contractor.

The scope includes the construction of circa-65 km of rail formation, including earthworks, roadworks, drainage works and construction of bridges and pre-cast structures. The contract is valued at close to A$138 million ($96 million) with mobilisation expected to commence soon (completion is scheduled for late 2020). At its peak, the project will employ an expected workforce of 400, utilising over 140 pieces of major plant in the process.

Jules Pemberton, NRW’s CEO and Managing Director, said: “Following the successful acquisition of the BGC Contracting business, NRW’s operational delivery capabilities in the Pilbara are further enhanced, through the addition of the highly skilled BGC workforce into the group, together with the strong technical skillset to safely and successfully deliver the large bridges and concrete structures required on the project.”

In addition to the building of 143 km of rail, Eliwana will include a 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1.

NRW Holdings continues spending spree with BGC Contracting buy

NRW Holdings has continued with its M&A spree, agreeing to acquire 100% of BGC Contracting in a deal that comes with an equity value of A$116.4 million ($78.8 million) and expands its Mining Technologies pillar.

BGC Contracting provides services to the resources, energy and infrastructure sectors across three core businesses: mining, construction and DIAB Engineering.

NRW responded to media speculation earlier this month by acknowledging it had been selected as the preferred bidder in the sale of BGC Contracting.

The agreement comes less than a year since NRW Holdings acquired RCR Tomlinson’s Mining and Heat Treatment businesses and a little over two years since it purchased Golding Group.

NRW said: “The business is a strong strategic fit adding significant scale through an expanded service offering to a high-profile client base with a long track record of contract renewal and extension.”

The deal is expected to provide significant strengthening of NRW’s ‘Mining Technologies’ pillar through the addition of DIAB Engineering, which provides specialist industrial engineering, shutdown maintenance and fabrication services and generates “annuity style” revenues, NRW said.

BGC comes with a fleet of over 200 items of “high-quality mobile mining equipment” with a book value in excess of A$200 million, according to NRW Holdings. It also has an existing contract portfolio and order book of around A$1.5 billion, which “delivers a step change in scale”.

NRW says the deal is highly earnings per share accretive and could have pre-tax synergies of A$15 million/y, driven by consolidation and reduction in duplication, including facilities and systems.

Jules Pemberton, CEO & Managing Director of NRW, said: “We are extremely pleased to announce the acquisition of BGC Contracting which is strongly aligned with our objective to pursue opportunities to further diversify our revenues and enhance shareholder returns.”

He added: “We are enthusiastic about the opportunities ahead for the expanded NRW group, to leverage the additional capabilities and regional strengths of the combined group and further capitalise on our strong market reputation.

“Together with our combined workforce of around 6,000 people supporting more than 100 projects around Australia, we are well placed to offer a diverse range of services and project solutions to clients across the infrastructure, resources, industrial engineering, maintenance and urban sectors.”

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.”

NRW’s new RCR Mining Technologies business captures Rio Tinto Koodaideri contract

RCR Mining Technologies has continued its strong start under the guidance of new owner NRW Holdings, winning a “significant” original equipment manufacturer (OEM) equipment package from Rio Tinto for the miner’s Koodaideri iron ore project in the Pilbara of Western Australia.

The new order is for the supply of three large apron feeders, 11 slide gates and two belt feeders, to a combined value in excess of A$18 million ($12.2 million), NRW said.

NRW signed a deal with RCR Tomlinson’s administrators, back in January, to acquire the mining and heat treatment businesses of RCR for A$10 million in cash. Back then, NRW said the purchase of the international OEM and innovative materials handling designer would allow the company to provide incremental services, in line with its strategic objectives, to several core clients common to both NRW and the RCR businesses.

Ian Gibbs, Executive General Manager of RCRMT, said: “RCRMT has a long and proud history of supplying major equipment to Rio Tinto and the WA mining industry.

“Since transitioning to NRW ownership, we have been able to secure orders for all the current major iron ore projects to retain our status as the market leader in the design and manufacture of apron and belt feeders, which is an exciting achievement against a highly regarded multinational supply market.”

NRW CEO and Managing Director, Jules Pemberton, said: “The award represents further validation of our acquisition approach to provide clients with a broader service offering. I’d also like to acknowledge Ian Gibbs and his team who have worked hard to secure this work which will further support activity at both the Bunbury and Welshpool sites.”

NRW’s businesses have already won two contracts on the Koodaideri project – one for rail formation work and another for bulk earthworks.

NRW wins second Koodaideri iron ore contract from Rio Tinto

NRW Holdings says it has been awarded the Koodaideri Rail Formation South Earthworks contract by Rio Tinto.

The project scope includes the construction of about 73 km of new rail embankment, a new mine access road and associated road works along the Koodaideri rail alignment, NRW said.

The project value is in excess of A$137 million ($92.9 million) and is expected to have a duration of some 70 weeks with site works commencing in August. At its peak, there will be over 300 site-based personnel required for the project, according to NRW.

NRW’s Chief Executive Officer, Jules Pemberton, said: “NRW has a long history of civil construction expertise in the Pilbara and has been involved in the successful delivery of numerous greenfield and brownfield projects for Rio Tinto since 2002.

“Since then, NRW has also constructed more than 900 km of rail formation across the Pilbara providing work for thousands of Australians and supporting local industries, traditional landowners and suppliers.”

He added that the contract follows the recent award of the Koodaideri plant site earthworks agreement where construction has already commenced (pictured).

Construction on Koodaideri Phase 1 started this year with first production expected in late 2021. Once complete, the $2.6 billion mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

In addition to mine infrastructure and the accommodation camp, an airport and mine support facilities will be built. Throughout the construction period, Rio expects to employ over 2,000 people with 600 permanent roles created once the mine is operational.

Rio Tinto Iron Ore Chief Executive, Chris Salisbury, has previously said that the company wants to make Koodaideri the “most technology-enabled and innovative mine in our Pilbara iron ore network”.

NRW looks forward to further growth as iron ore focus pays off

NRW Holdings has reported year-on-year increases in revenue and earnings in the six months to December 31, 2018, and says its focus on securing work in the iron ore sector has started to pay off.

Revenue came in at A$521.1 million ($370 million) for the six-month period, up 50.9% year-on-year, while earnings before interest, depreciation and amortisation rose from A$40.3 million in the six months to December 31, 2017, to A$74.3 million in the most recent half year.

The company’s order intake in the six months totalled A$1 billion, increasing total work in hand to A$2.4 billion, it said.

Jules Pemberton, NRW’s CEO and MD, said “Not only have we delivered incremental earnings growth, but we have been able to maintain strong cash flows through the period to reduce net debt to A$12.8 million and gearing to 4.3% despite an increase in capital expenditure driven by the purchase of key mining assets.

“All businesses performed on or above plan and it is worth noting that the Golding business has now generated cash equal to its acquisition cost within the first 14 months of ownership.”

The company, in previous outlook commentaries, mentioned NRW was looking to secure work on iron ore sustaining projects in Western Australia; a target that the company is starting to deliver on. Pemberton said: “Progress to date has been extremely positive following the awards of South Flank for BHP, in July 2018, the Koodaideri Plant site for Rio Tinto, announced in January 2019, and the award of Fortescue Metals Group’s Stage 1 Eliwana rail package, in February 2019.”

On top of this, NRW Holdings also announced the acquisition of the RCR Mining Technologies (RCRMT) business last month. On this transaction, Pemberton said: “The RCRMT business has developed a wealth of intellectual property across a range of products and processes and are recognised as leaders by global resource clients The acquisition will allow the company to provide incremental services, in line with our strategic objectives, to a number of core clients common to both NRW and RCR MT and is a very strong foundation on which to build a broader maintenance services business.”