Tag Archives: Jules Pemberton

Golding and BMA strengthen ties with Blackwater civil works contract

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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

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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

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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

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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

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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.”

NRW Holdings signs A$10 million deal to buy RCR’s Mining and Heat Treatment businesses

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NRW Holdings has entered into an agreement to acquire RCR Tomlinson’s Mining and Heat Treatment businesses for A$10 million ($7.3 million) in cash.

The agreement was signed with RCR’s administrators, which have been offloading various RCR subsidiaries since shortly after the company declared total liabilities of A$581.3 million alongside cash and equivalents of A$89.9 million in its 2018 financial year.

The purchase consideration will be funded from NRW’s existing cash reserves, with the deal expected to complete within the next two weeks, NRW said.

RCR Mining and Heat Treatment form part of the original RCR Tomlinson business established over 100 years ago.

RCR Mining includes the Mining Technologies business, which owns significant intellectual property across a range of products and processes and is recognised as a market leader by global resources clients, according to NRW.

“The Mining Technologies business is a leading national and international original equipment manufacturer and innovative materials handling designer with an extensive product range including apron and belt feeders, high capacity conveyors, slide gates, stackers, spreaders, fully track-mounted in-pit mining units (an example pictured above), sizers, scrubbers and screening plants,” NRW said.

One of RCR’s recent mining technology innovations is a 5 km relocatable conveyor, which includes a semi-mobile primary crushing station and feeds directly into Fortescue Metals’ Cloudbreak iron ore processing facility in the Pilbara of Western Australia.

Both the Mining Technologies and Heat treatment businesses have a high proportion of activity in equipment product support and maintenance (both on site and off site), NRW said, adding that the Heat Treatment business has facilities that include the largest stress relieving furnace in Australia.

Mining Technologies and Heat Treatment generated around A$110 million of revenue in the 2018 financial year and have a track record of delivering positive earnings, NRW noted, explaining the acquisition would be earnings per share accretive on a full-year basis, excluding integration and other one-off costs.

Jules Pemberton, NRW’s Managing Director and Chief Executive Officer, said the acquisition would allow NRW to provide incremental services, in line with its strategic objectives, to several core clients common to both NRW and the RCR businesses.

“In addition, the annuity style income from the maintenance activities of Mining Technologies and Heat Treatment will provide a platform to continue to build a broader service offering across an expanded resources and oil and gas client base.”

Stanmore Coal and Golding agree on flexible extension to Isaac Plains East contract

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Stanmore Coal has extended its contract with NRW Holdings subsidiary Golding Contractors at the Isaac Plaints East mine in Queensland, Australia.

Golding will carry out contract mining services for at least another five years as part of the circa-A$500 million ($364 million) contract. This will see the project term extended to June 2024.

NRW CEO and Managing Director Jules Pemberton said of the contract award: “The relationship, which commenced in 2015, has been a productive and successful partnership and we look forward to supporting Stanmore’s growth ambitions as they further develop their extensive resource base over the coming years.”

Golding will deploy new equipment with a capital cost of circa A$40 million to support the contract extension, it said.

Stanmore said the contract had a flexible structure that allowed the company to vary production to meet market conditions within certain parameters. Within the agreement, is an option to owner/operate the coal handling preparation plant at the site as the future production profile changes.

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).