Tag Archives: Liontown Resources

SandvikLH621i

Sandvik loaders, development drills and bolter heading to Byrnecut at Kathleen Valley

Automation, Energy minerals, Equipment maintenance, Mineral project development, Mining equipment, Mining services, , , , , , , , , , , , ,

Mining contractor Byrnecut has chosen Sandvik to supply automated loaders, underground drills and rock tools as it gears up to deliver underground mining services at the Kathleen Valley lithium project in Western Australia.

Sandvik will supply Byrnecut with seven 21-t-payload Toro™ LH621i loaders with AutoMine®, three Sandvik DD422i development drills with Dual Controls and a Sandvik DS422i cable bolter. The equipment order was primarily booked in the September quarter.

Sandvik will also supply Byrnecut with rock tools for the operation over four years.

The deal follows Liontown Resources awarding Byrnecut with the circa-A$1 billion ($656 million) contract for development and production at the mine in August 2023.

The Kathleen Valley lithium project in Western Australia’s northern Goldfields region is one of the most significant new long-life lithium projects anywhere in the world, owner Liontown Resources says, with a mineral resource estimate of 156 Mt at 1.4% Li2O and 130 ppm Ta2O5. The operations have been optimised for an initial 3 Mt/y, producing approximately 500,000 t/y of spodumene concentrate with a 4 Mt/y expansion planned in Year 6, to deliver approximately 700,000 t/y of spodumene concentrate.

Byrnecut is investing A$125 million in new equipment for the project, with mobilisation having already commenced and first production is targeted for mid-2024.

Wayne Scrivens, Vice President, Sales Area Australia and New Zealand, Sandvik Mining and Rock Solutions, said: “Byrnecut and Sandvik have a long history of collaboration on projects across the country and we’re delighted that Byrnecut is once again investing significantly in Sandvik equipment and rock tools for this major project. This deal highlights the growing understanding across the Australian mining sector that Sandvik’s advanced solutions help mines run safer, more efficiently and more sustainably.”

Sandvik’s Toro LH621i underground loaders (one pictured above) are engineered for rapid mine development and large-scale underground production, according to the OEM. Smart boom geometry optimises hydraulic power for fast bucket filling and the handling of large rocks.

Under AutoMine Multi-Lite an operator can remotely control and simultaneously supervise multiple Toro LH621i loaders from a comfortable environment, reducing exposure to dust, noise, vibrations and other mine hazards. This creates a safer work environment for both the operator and mine personnel, Sandvik says.

When used in combination with Sandvik’s Dual Controls package, Sandvik DD422i face drills can be used for a wide variety of underground applications, including boring, bolting and meshing. The package improves drill optimisation, versatility and performance and was designed to address needs identified by mining contractors.

Sandvik will also provide Byrnecut premium rock tools as well as a range of added services and digital solutions to support its drilling operations. The deal will also include carbide recycling, with Sandvik’s Carbide Recycling Program helping both the OEM and the wider industry to meet circularity goals and ensure raw materials are used efficiently and sustainably.

Liontown Resources banks LNG supply for Kathleen Valley hybrid power plant

Energy minerals, Environmental, Mineral project development, Mining services, Power supply for mines, Sustainable mining, , ,

Liontown Resources has awarded a contract for the supply of LNG to its Kathleen Valley lithium project in Western Australia to Mid-West LNG Pty Ltd, a group company of Clean Energy Fuels Australia (CEFA).

LNG-fuelled thermal power is a key component of the 95 MW hybrid power station at Kathleen Valley, which is expected to be among the largest off-grid wind-solar-battery storage renewable energy facilities in Australia.

The initial LNG supply will commence in January 2024 in time for planned early commissioning activities and the contract contemplates renewable energy penetration in line with Liontown’s target to be at least 60% renewably powered from start-up while providing surety of supply, the company says.

The LNG supply contract is a key deliverable for the 95 MW hybrid power station. The power station comprises wind turbines, solar panels, battery storage, diesel and gas-fired generators, which are designed to operate in ‘engine off’ mode enabling Liontown to operate from 100% renewable energy during periods of high wind and solar penetration.

LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub located at Mt Magnet, around 370 km from Kathleen Valley. The hub is directly connected to the Mid-West Gas Pipeline, which connects to the Dampier to Bunbury Gas Pipeline, providing access to natural gas fields in the mid-West and North-West

The 15-year supply contract aligns with the Zenith Power Purchase Agreement and enables flexibility for quantities and access to ‘sprint’ capacity as required throughout the contract period, the company says. This will support the company’s target to be at least 60% renewably powered from start-up, while having 100% thermal power redundancy for the operation. The contract comprises fixed and variable charges for gas supply, liquification and transport.

LNG supply will commence in January 2024 to support planned early plant commissioning activities.

Liontown awards Kathleen Valley wet plant lithium contract to Monadelphous

Energy minerals, Mineral processing, Mineral project development, Mining services, , , , , ,

Liontown Resources says Monadelphous has been awarded the wet plant structural, mechanical, piping and electrical & instrumentation contract for the Kathleen Valley lithium project in Western Australia.

This appointment, valued at approximately A$100 million ($64 million), enables a vertically integrated approach to construction of the critical path wet plant, according to Liontown, providing efficiencies and underpinning confidence in the schedule to first production in mid-2024. It also signifies the final major construction contract award for Kathleen Valley.

The contract scope includes installation of 1,200 t of structural steel, 20,000 m of piping, 600 mechanical equipment items, 200 platework items, the SAG mill, magnetics circuit, flotation circuit, tantalum recovery circuit, concentrate dewatering and tails treatment.

Monadelphous commenced work under a Letter of Intent and began mobilising to site in August under a staged contractual award approach.

By deploying lessons learned from industry peers, the wet plant has been designed to a high specification with quality and hard-wearing materials, including polyurethane-lined steel piping and ceramic lined high-wear areas, designed to reduce future maintenance requirements, Liontown said. In addition, the adoption of the lessons learned will be applied during the commissioning and ramp up of the plant.

Liontown’s Managing Director and CEO, Tony Ottaviano, said: “The vertically integrated approach of combining the SMP and E&I packages enables Monadelphous to efficiently deliver both programs of work to a very high standard and played a large part in its successful tender.

“Monadelphous has a large resources pool, experience in the hard-rock lithium sector, and a proven track record of delivering large-scale multi-disciplinary projects in Western Australia, which came through strongly throughout the evaluation process. Their demonstrated skills, capability and professionalism reflects Liontown’s expectations of a partnership. There is a clear line of sight to first spodumene production mid-next year.”

The Kathleen Valley operations have been optimised for an initial 3 Mt/y, producing approximately 500,000 t/y of spodumene concentrate with a 4 Mt/y expansion planned in Year 6, to deliver approximately 700,000 t/y of spodumene concentrate. Mining will predominately be underground, allowing direct access to higher grade mineralisation while minimising waste and the environmental footprint of the project. Mined ore will be processed through a whole-of-ore flotation circuit which will provide an estimated recovery rate of 78% across the mine life and an estimated site recovery for tantalum concentrate of 42%.

Liontown awards A$175 million Kathleen Valley lithium haulage contract to Qube

Energy minerals, Mineral project development, Mining services, , , , , , ,

Liontown Resources has awarded the spodumene and direct shipping ore (DSO) haulage services contract for its Kathleen Valley lithium project in Western Australia to integrated logistics solutions provider, Qube Holdings Limited.

Following what Liontown referred to as an extensive tender process, Qube has secured the five-year contract, which involves loading spodumene concentrate at Kathleen Valley; haulage of the concentrate to the Port of Geraldton; storage and stockpile management at the port and the outload to port infrastructure for shipment to Liontown customers. Storage will be in a dedicated facility within the Port of Geraldton.

Qube will use ultra-Quad road-trains to truck all concentrate from Kathleen Valley to the dedicated storage facility at the Port of Geraldton for the duration of the contract. Qube will use its 24/7 fleet monitoring centre in Perth to manage safety and environmental outcomes.

The contract is due to commence in mid-2024 in line with process plant ramp-up. Provision has been made for the services to be provided earlier for DSO as Liontown nears completion of offtake and processing options. As well as generating early revenue for Liontown, selling and shipping DSO will allow the company to trial the haulage logistics chain with lower grade material before first production is achieved from Kathleen Valley in mid-2024.

The concentrate haulage services contract, which is conditional upon Qube finalising arrangements to secure the storage facility at the Port of Geraldton, is valued at approximately A$175 million ($119 million) over the five-year contract term.

Qube has committed to the latest technology in driver and trucking safety as well as pursuing measurable carbon reduction initiatives as part of Liontown’s broader ESG commitments, working with the Kathleen Valley Tjiwarl Traditional Owners and exploring numerous revenue-generating opportunities with Tjiwarl businesses in the coming months, Liontown says. The contract will generate around 45 new positions and the Quad-trailers will be sourced in Western Australia.

Liontown’s Managing Director and CEO, Tony Ottaviano, said: “We look forward to working with Qube on the haulage and storage of our spodumene concentrate and DSO material from Kathleen Valley as well as benefiting from their expertise in the industry, especially with their extensive experience managing spodumene for others.

“This contract coupled with the Underground Mining Services (due this quarter) represents one of the last few outstanding contracts to be awarded as we progress Kathleen Valley towards first production mid-2024.”

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate, according to the company.

Zenith Energy gears up to supply 95 MW of hybrid power to Liontown’s Kathleen Valley project

Energy minerals, Environmental, Mining services, Power supply for mines, Sustainable mining, , , , , , , ,

Zenith Energy has converted the Letter of Award it signed with Liontown Resources to supply electricity to the Kathleen Valley lithium project in Western Australia into a Power Purchase Agreement.

The PPA will see Zenith supply the project with electricity for a period of 15 years as part of a 95 MW hybrid power station setup at the mine.

Zenith has, since the signing of the Letter of Award, announced in September, progressed the planning, engineering and design works for the hybrid power station, including the order of long-lead items such as the wind turbines.

With 46 MW of emission-free power generation capacity, the 95 MW hybrid power station is currently expected to be one of the largest off-grid wind-solar-battery storage renewable energy facilities in the mining industry in Australia.

The thermal components are designed to operate in “engine off” mode at various times, enabling Liontown to operate from 100% renewable energy during periods of high wind and solar resource, the companies say.

The hybrid power station is expected to start up around the same time as the Kathleen Valley process plant is commissioned, currently slated for the first half of 2024.

The plant will include wind generation from five wind turbines each capable of generating 6 MW. A 16 MWp fixed axis solar photovoltaic array coupled to a 17 MW/19 MWh battery energy storage system will provide additional clean energy, supported by synchronous condensers that provide critical system stability and resilience, Zenith said. The thermal power component will comprise 27 MW of gas generation and 5 MW of diesel standby generation.

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate, according to the company. With first production expected in June quarter of 2024, the deposit will also produce tantalum pentoxide.

Monadelphous Group secures work with BHP in Western Australia, Chile

Base metals, Energy minerals, Equipment maintenance, Mine operation news, Mining services, Steel and iron ore, , , , , , , , ,

Monadelphous Group has secured new contracts and contract extensions in the resources, energy and infrastructure sectors totalling approximately A$110 million ($74 million).

The company says it has been reappointed to the BHP WAIO Site Engineering Panel for a three-year period to continue providing multi-disciplinary services at BHP’s mine site and port operations in the Pilbara region of Western Australia.

Monadelphous has also been awarded a five-year contract to provide pipeline maintenance services in the Queensland coal seam gas market.

In Chile, Monadelphous’ maintenance and construction services business, Buildtek, has secured several contracts with Minera Escondida. This includes two contracts at the Escondida copper mine, majority-owned by BHP, for improvements to the water capture and drainage system and repairs associated with the oxide tank. A contract has also been secured for repairs and improvements to water storage tanks at the Puerto Coloso Filter Plant. All work is expected to be completed in 2023.

Additionally, the company has secured a contract with Liontown Resources for the supply and fabrication of structural steel and platework for the Kathleen Valley lithium project in Western Australia. The work is expected to be completed by mid-2023.

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, it is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate. First production is expected in the June quarter of 2024.

Zenith Energy, Liontown go big with proposed hybrid power plan at Kathleen Valley lithium project

Energy minerals, Mineral project development, Mining services, Power supply for mines, Sustainable mining, , , , , , , , , , , ,

Zenith Energy and Liontown Resources have partnered on what they say is Australia’s largest off-grid renewable energy hybrid power station project.

The letter of award between the two companies covers a potential contract to build, own, and operate the hybrid power station in Australia at Liontown’s Kathleen Valley Project in Western Australia.

The award will see Zenith Energy construct a 95 MW hybrid power station at Kathleen Valley in the Goldfields-Esperance region, which includes 30 MW of wind capacity, 16 MWp fixed axis solar PV array and a 17 MW/19 MWh battery energy storage system (BESS).

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate, according to the company. With first production expected in June quarter of 2024, the deposit will also produce tantalum pentoxide.

Zenith Managing Director, Hamish Moffat, says the partnership will allow Zenith Energy to demonstrate its innovation, flexibility and expertise to deliver low-carbon emitting hybrid power solutions.

“Zenith Energy is proud to continue to play a lead role in the energy transition, and to provide like-minded partners with a glide path to net zero,” he said. “The project also further demonstrates Zenith Energy’s continued commitment to increasing the proportion of renewable generation in our portfolio.”

Artist impressions of what the Kathleen Valley site will look like (and above)

Moffat says the thermal components of the power station are designed to operate in ‘engine off’ mode at various times, delivering 100% renewable energy generation to Kathleen Valley.

“It’s an exciting opportunity to showcase our expertise, and the ability of renewables to deliver reliable, continuous supply, to power an entire mining operation,” he said. “It will once again raise the industry benchmark in renewable energy integration and demonstrates our commitment to power decarbonisation.”

Other unique aspects of the agreement include:

  • Largest off-grid hybrid power station in Australia: The hybrid power station is currently expected to have the largest off-grid renewable capacity of any mining project in the country, with 46 MW and 17 MW BESS; and
  • Renewable incentives: A combination of incentives to produce renewable power over thermal power together with a renewable energy guarantee will allow Liontown to meet and exceed its renewable energy factor target of 60% at startup and beyond.

Liontown Managing Director and CEO, Tony Ottaviano, says Liontown is delighted to partner with such an experienced and highly competent power producer.

“We believe Zenith Energy is an ideal partner to delivery an industry leading hybrid power station to meet Liontown’s energy needs and requirements for a high-capacity renewable solution,” Ottaviano said. “The hybrid power station proposed will enable Liontown to exceed our target of achieving at least 60% renewable energy at project start-up and beyond.”

Moffat says Zenith Energy is engaged with Traditional Owners, recently announcing a collaboration with Tjiwarl Contracting Services to work together to deliver low carbon emission power solutions for miners and communities on Tjiwarl native title determined lands.

Zenith Energy and Liontown have agreed key commercial terms and are working to finalise arrangements under a binding long term build, own and operate power purchase agreement.

Lycopodium named EPCM contractor for Liontown’s Kathleen Valley lithium project

Energy minerals, Mineral project development, Mining services, , , , ,

Lycopodium Minerals, a subsidiary of Lycopodium Limited, has been appointed to complete the engineering, procurement and construction management (EPCM) and commissioning services for the delivery of the Kathleen Valley lithium project, in Western Australia, for Liontown Resources.

The project is on the western edge of the Norseman-Wiluna Greenstone Belt, about 60 km north of Leinster, and 680 km northeast of Perth. It is considered a Tier 1 battery metals asset with excellent grade and scale in one of the world’s premier mining districts.

Having initially undertaken the prefeasibility study (PFS) update for the project, followed by value engineering assessments and subsequently the definitive feasibility study and front end engineering design (FEED) services, Lycopodium now has the opportunity to manage the project through the EPCM delivery phase.

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, it is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate. With first production expected in June quarter of 2024, the deposit will also produce tantalum pentoxide.

Mining will predominately be underground, allowing direct access to higher grade mineralisation while minimising waste and the environmental footprint of the project, with mined ore processed through a whole of ore flotation circuit.

Lycopodium will provide the engineering design, procurement of equipment and materials, and the construction management, pre-operational testing and commissioning services for the processing facilities and associated non-process infrastructure at Kathleen Valley, with the contract valued at approximately A$35 million ($24 million).

Lycopodium Limited’s Managing Director, Peter De Leo, said: “Kathleen Valley is a lithium project of global significance that will supply vital battery minerals to the burgeoning electric vehicle and energy storage industries. As we move towards a renewable energy future, the award of this project further strengthens our position as a premier partner in the delivery of lithium projects, and we thank Liontown for the opportunity to partner with them on this important project.”

Liontown says first production from Kathleen Valley could occur in the June quarter of 2024.

Liontown secures Metso Outotec SAG mill ahead of Kathleen Valley lithium FID

Comminution of minerals, Energy minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, , , , , , , , ,

Liontown Resources Ltd says it has awarded a key contract to Metso Outotec for the design, fabrication and delivery of a SAG mill for its flagship Kathleen Valley lithium project in Western Australia.

Following the completion of the definitive feasibility study (DFS) for Kathleen Valley in November 2021, the company has completed further engineering optimisation to confirm the scope and duty of the SAG mill to a sufficient level of detail to enable it to place the order with the OEM.

The contract, which has a value of circa-A$10 million ($7.2 million) and is in accordance with DFS estimates, is for the design, fabrication and delivery of a 7.9 m diameter and 4.4 m effective grinding length 5.5 MW SAG mill. This is inclusive of all lining, lubrication, cooling, electrical and mechanical drive systems necessary for installation and commissioning.

The SAG mill, from Metso Outotec’s Premier™ range (an example above), will accommodate both base production of 2.5 Mt/y and the planned expansion to 4 Mt/y in year six of the mine plan, Liontown said.

The SAG mill is one of several critical long-lead items identified for early award and represents the largest single piece of equipment required to be purchased for the project by size, value and lead time, the company added.

“Detailed engineering and design for the A$473 million Kathleen Valley project continues and Liontown is targeting the award of all key equipment packages over the next six months to maintain schedule and meet its target of first production of lithium concentrate in 2024,” it said.

Other key project deliverables including final permitting and securing the engineering, procurement and construction management partner to build and commission the Kathleen Valley project are progressing to meet the targeted Final Investment Decision milestone by the end of the June quarter.

Liontown’s Managing Director and CEO, Tony Ottaviano, said: “The SAG mill contract is the first of the long-lead items to be ordered and represents an important milestone for the Kathleen Valley project. Placing this significant order with a world-class partner in Metso Outotec is a great way to start the year and reflects our commitment to advance the Kathleen Valley project rapidly towards first production.”

The November 2021 DFS outlined base production of 2.5 Mt/y, producing around 500,000 t/y of spodumene concentrate with a 4 Mt/y expansion planned in year six, to deliver circa-700,000 t/y of spodumene concentrate.

The Metso Outotec Premier horizontal grinding mills are customisable solutions built on state-of-the-art grinding mill technology, process expertise and design capability, the OEM says. They are engineered to “excel and create vast possibilities” for customers and applications.