Tag Archives: Jules Pemberton

NRW’s METS business takes flight with Primero’s latest contract awards

The first build own operate (BOO) contract initiatives, and the first major engineering, procurement, site support and commissioning contract in West Africa are some of the highlights from Primero Group’s latest contract awards.

The company, acquired by NRW Holdings earlier this year, has recently been awarded new contracts totalling circa-A$155 million ($114 million) with key clients. It has also progressed strategic initiatives that provide further strength to the group offering within the newly formed Minerals, Energy and Technology (METS) business under the NRW Holdings banner, NRW said. RCR Mining Technologies and DIAB Engineering also feature under the METS business.

“These include the award of the group’s BOO contract initiatives crystalising the strategic direction deployed by the group to enter the market of ownership and operation of processing infrastructure,” it said. “The equipment is designed, fabricated and constructed internally utilising the METS division companies and focuses on enabling the infrastructure to be relocatable, in alignment with other material handling products already being offered by the group.”

Primero has been awarded two key contracts with Mt Gibson Iron. The first is for the upgrade of the Koolan Island crushing circuit under an engineering and construction contract off the coast of Western Australia. The second is a two-year fixed crushing contract at the Shine development project in the Mid-West region of Western Australia under a BOO arrangement, with an option to extend.

Also, in the iron ore space and Western Australia, Primero has been awarded a four-year contract for crushing services at Atlas Iron’s proposed Miralga Creek operation in the Pilbara region. The contract provides crushing services for 2 Mt/y under a BOO scenario and will commence in early 2022.

In West Africa, meanwhile, Primero has secured its first major engineering, procurement, site support and commissioning contract for the Abujar gold project in Côte d’Ivoire, owned by Tietto Minerals. “The project award demonstrates the groups continuing growth and maturity in minerals processing engineering execution and diversity in capability across multiple commodities in the group,” NRW said.

The project is at a 3.5 Mt/y throughput scale with most of the contract revenue to be recognised in NRW’s 2022 financial year.

Back in Western Australia, meanwhile, Primero has been awarded the Mt Holland water supply pipeline construction contract from Covalent Lithium. The project follows on from the design services that Primero was awarded in October 2020 and completed including detailed construction planning and methodology for the 130 km pipeline and associated pumping facilities.

Site construction works have commenced, and the project is scheduled for completion in the March quarter of 2022.

As an updated note, Primero confirms the previously announced letter of intent with Panoramic Resources for the contract operations of the Savannah Nickel project has been finalised into a binding contract with a term of three years, as per Panoramic announcement dated April 6, 2021.

Work has already commenced in the preparation and operational readiness for the recommencement of the concentrator operations in-line with the announced restart plan of the mine in the September quarter with first shipments planned in December.

NRW CEO, Jules Pemberton, said: “The ongoing development of the METS pillar of the NRW Holdings Group is continuing to provide further success and market penetration within key client groups in our sector. Primero, as the newest addition to that group, has added significant capability and these recent contract awards showcase the diversity, capability and the expanding capacity of the group across multiple commodities and services.”

NRW Holdings to deliver solar power solution for Rio’s Gudai Darri

NRW Holdings has secured two new contracts from Rio Tinto, one of which will see it enter the renewable energy fold with an agreement to deliver a 34 MW solar photovoltaic system at the Gudai Darri mine in the Pilbara region of Western Australia.

This contract is part of Rio Tinto’s commitment to reduce the carbon footprint of its operations with a stated target to reach net zero emissions by 2050, NRW said, adding that the contract value is approximately A$60 million ($44 million).

The scope of work for the solar farm includes design, procurement, construction, testing and commissioning of all equipment including a 33 kV substation to be integrated into the overall Rio Tinto Iron Ore infrastructure, including remote control and monitoring via the Rio Tinto Iron Ore Remote Operation Centre.

The solar farm will be connected to the Rio Tinto grid at the Gudai Darri Central Substation via a 6-km long overhead powerline and fibre-optic link, which is not included in the NRW scope.

Design and procurement will commence immediately followed by commencement of construction in August 2021. Construction and commissioning are scheduled for completion in early 2022, it said.

Jules Pemberton, NRW’s Chief Executive Officer and Managing Director, said: “Securing this work recognises the broader delivery capability of the business and NRW’s long-standing experience of delivering projects for Rio Tinto in the Pilbara. Renewable energy represents an increasing opportunity for the group in particular captive projects like this where the energy output is integrated to the client’s network.”

Alongside this announcement, NRW said it had been awarded the Stage 3 Expansion Works at the Nammuldi Waste Fines Storage (WFSF) facility. The works to be undertaken for this project are the Stage 3 expansion to the existing WFSF for Hamersley Iron Pty Ltd, a Rio subsidiary that manages the joint venture Nammuldi operation (53% owned by Rio, 33% owned by Mitsui Iron Ore Development, 10.5% owned by Nippon Steel Australia and 3.5% owned by Sumitomo Metal Australia), at the Nammuldi Below Water Table (NBWT) project.

The site is around 60 km northwest of Tom Price, with the WFSF Stage 3 expansion consisting of raising the existing earth fill embankment by a further 6 m using the downstream method with associated earthworks along with mechanical upgrades to water management structures, waste fines deposition lines and pond decant infrastructure.

The expansion works to be undertaken will achieve the ultimate limit currently permitted for the WFSF, NRW said.

Construction works will start in mid-August 2021 with all works complete in June 2022. A work force of about 75 personnel will be engaged on the project which has a contract value of circa-A$26.5 million.

Mining fleet changes hands at Boggabri coal operation

Most of the major mining equipment used at the Boggabri coal mine in New South Wales, Australia, is to be sold to Boggabri Coal Operations (BCO), part of the Idemitsu Group, following the exercise of an option between BCO and Golding Contractors, a subsidiary of NRW Holdings.

The transaction for the fleet, which includes 38 major mobile mining assets, has a target completion date of the end of July 2021.

Golding will continue to perform maintenance services on site across these, and another 50 (approximately) pieces of major mining equipment, engaging a workforce of over 150 personnel on site, NRW said.

The equipment will be sold for circa-A$81 million ($61 million) of which circa-A$64 million will pay down asset financing debt, NRW said.

NRW’s CEO and Managing Director, Jules Pemberton, said: “The option for BCO to acquire all or part of the associated mining fleet was identified at the time of the acquisition of BGC Contracting. This transaction will reduce debt and increase return on capital employed.

“We look forward to continuing to support BCO to ensure we are best placed to continue to provide our services beyond the current contract completion date of December 2022.”

NRW in line for A$702 million Karara Mining iron ore gig

NRW has received a letter of intent from Karara Mining Ltd to carry out mining services works at the Karara iron ore mine in the Gascoyne region of Western Australia.

Subject to reaching agreement with Karara, the anticipated value of the contract is around A$702 million ($529 million) over a five-year duration with a project workforce averaging circa-250 personnel.

MACA, through its recently acquired Mining West business, currently holds the contract mining agreement at Karara.

The works to be performed include load and haul, drill and blast, and run of mine re-handling. The drill and blast component will be undertaken by NRW’s wholly-owned subsidiary, Action Drill & Blast Pty Ltd. In addition, the work includes train loading and re-handling of the product stockpiles together with “miscellaneous day works” at the mine site, camp and access roads.

Karara is the largest mining operation and the first major magnetite mine in the Mid West region. It produces a premium, high-grade concentrate that it exports to steelmakers.

“With an expected mine life of 30-plus years, Karara’s operation includes a large open-pit mine, complex ore processing and beneficiation plant and significant infrastructure and logistics networks,” NRW said.

NRW estimates an equipment capital expenditure of around A$170 million to be progressively spent over the term, which will include the purchase of three 600 t face shovel excavators and a fleet of 220 t trucks.

NRW CEO, Jules Pemberton, said: “With a strong local presence in the area through our Geraldton-based DIAB Engineering business and our mining contract with Gascoyne Resources at the Dalgaranga mine site, we look forward to continuing to support the existing and highly experienced workforce on site through this transition, as well as creating employment opportunities for the Gascoyne region community.”

Karara CEO, Changjiang Zhu, said: “NRW is an established Western Australia-based mining and civil contractor with extensive open-cut mining experience gained through a number of successful mining operations in the state. Offering new prime equipment, NRW has the capability to undertake the entire Karara scope of work comprising a broad range of mining, construction and engineering services.

“We look forward to negotiation of an agreement with NRW and commencement of mining services early next year.”

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.