Tag Archives: Mincor Resources

MLG Oz bolsters NSR Jundee work, adds Norton Gold Fields and Mincor to contract mix

MLG Oz says it continues to experience historically high levels of tendering opportunities for its suite of mining services, with three new integrated site services and haulage contracts recently added to its remit across its Western Australia operations.

MLG, which listed on the ASX earlier this year, says it offers a range of value added services from bulk haulage, crushing and screening, aggregate and sand supplies through to export logistics.

At Northern Star’s Jundee gold operation in Western Australia, the company has been awarded preferred contractor status for an expansion of its services, providing integrated site support and haulage capacity at the mine. Subject to negotiation and execution, this new three-year contract is expected to commence around August and deliver some A$12 million/y ($9.2 million/y) in revenue.

The scope of works will consist of integrated site support to the company’s mill feed operations from both its Jundee central underground mines and its regional satellite operations, MLG said. It will see the ASX-listed contractor conduct all crusher feed, bulk haulage and site civil works for the operations under its integrated operating platform.

MLG has added two new clients to its roster, too – Norton Gold Fields and Mincor Resources.

Norton Gold Fields has chosen MLG as its successful tenderer to provide integrated site support services and haulage for its Paddington gold operation over a three-year period expected to commence in September. Revenue from this opportunity is estimated to be around A$14 million/y, with formal contract documentation anticipated to be finalised in the coming weeks.

And, in line with MLG’s desire to broaden its service offering across different commodities and, in particular, the battery metals space, it has executed a contract with Mincor Resources for the provision of the logistics services associated with its Kambalda nickel operation. The contract is expected to deliver approximately A$3 million/y in revenue over four years and is expected to commence in the March quarter of 2022.

Reviewing these contract awards, MLG Founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be given the opportunity to continue to support and grow with Northern Star which has been a long-standing customer of MLG.

“We are delighted that the Norton Gold Fields Board has selected MLG to support the Paddington processing facility. The mill is 35 km northwest of Kalgoorlie and aligns very strongly with our existing Kalgoorlie network.

“Our new contract at the Kambalda operations is an important first step for MLG in developing a longer-term relationship with Mincor in support of its goal of being a key supplier of nickel to the emerging battery metals market.”

In addition to announcing these contract awards, MLG also provided a market update on its crushing and screening activities.

It said: “MLG’s crushing and screening operations, which account for 20% of MLG’s forecast financial year 2021 revenue of A$241.6 million, have experienced a reduction in available material to process from several clients across the last quarter of financial year 2021, due to production constraints at various client operations. We anticipate this will negatively impact the crushing and screening revenue in the first half of financial year 2022. Despite this, and given the company’s current pipeline, including as evidenced above, the board expects the overall impact of this to be mitigated in the second half of financial year 2022.”

Minetek to deliver ventilation solution to Mincor’s Kambalda nickel ops

Minetek says it has been awarded a tender to supply the ventilation requirements for the Cassini, Otter Juan and Long declines at Mincor’s Kambalda nickel operation in Western Australia.

The award, which came through Mincor’s contracting partner, Pit N Portal, includes both the secondary and primary vents across all three declines and follows on from a close collaboration over the last six months between the three parties, Minetek says.

Steve Verstegeen, CEO for Pit N Portal, said: “We are always looking at new innovations and technologies that will benefit both us and our clients. Minetek has been able to display that with the use of their modern ventilation technology, where we can look to see production increases through faster re-entry times and reduced capital costs in the total life of the development, delivering value to both us and Mincor.”

Minetek General Manager – Ventilation, Jeremy Sutherland, said: “From the start of early discussions with Mincor and Pit N Portal, it was very evident that both parties wanted to deliver the maximum amount of value for their stakeholders/shareholders in all aspects of the developments. This really excited our team, as it gave us the opportunity, through the release of forecasted production information and mine plans from Mincor and Pit n Portal, to display that we could deliver this through energy savings, production increases and reduced capital expenditure throughout the lifecycle of the developments.”

The “Mincor Nickel Operations” DFS from earlier this year confirmed the potential to develop a five‐year operation forecast to produce 71,000 t of nickel and 5,000 t of copper on a life-of-mine basis at Kambalda, with peak annual nickel-in-concentrate production of more than 16,000 t/y at a forecast life of mine unit cost of $2.35/lb.

Pit N Portal to help revive Mincor’s Kambalda nickel operation

Mincor Resources has awarded underground mining services and equipment hire group Pit N Portal with the underground mining contract for its 100%-owned Kambalda nickel operations in Western Australia.

The contract encompasses a five-year pact for the new Cassini nickel mine, where early surface works were recently completed, and a three-year contract (plus one two-year option) at the Northern Operations (the brownfields Durkin North and Long nickel mines – both of which are on care and maintenance having previously operated). These two assets (Cassini and Northern Operations) make up the planned nickel operation.

Pit N Portal was awarded the contract following the completion of a competitive tender process and a due diligence process led by Mincor’s Chief Operating Officer, Dean Will, examining safety, Kambalda underground experience and performance, capabilities, equipment availability and cost, the company said.

All key components of the contract are in line with the parameters set out in the Nickel Restart Definitive Feasibility Study (DFS) completed in March 2020. This was based on an initial five-year operation from two production centres with all ore processed at BHP Nickel West’s Kambalda nickel concentrator and the resulting nickel concentrate sold to BHP. The DFS envisaged 63,000 t of recovered nickel-in-concentrate output for an estimated pre-production capital expenditure of A$68 million ($41 million at the time).

Mincor has executed a binding contract with Pit N Portal subject to a Notice to Proceed being issued by Mincor before March 31, 2021.

The development company says it is targeting the commencement of mining operations at Kambalda in the second half of 2020, subject to board approval and a final investment decision on its Nickel restart plan. It said previously first nickel-in-concentrate production could be achieved in the second half of 2021, subject to COVID-19-related restrictions.

Established in Kalgoorlie in 2002, Pit N Portal has expanded its capacity and capability to encompass total, whole-of-mine solutions across Australia, and has significant underground mining contracts in Western Australia and Queensland. It was acquired by Emeco Holdings earlier this year.

Mincor’s Managing Director, David Southam, said the award of the contract to a Kalgoorlie-based business was consistent with the company’s commitment to maximise local content, to support local businesses and communities, and to create opportunities for a residential workforce wherever possible.

“We selected Pit N Portal based on a wide range of criteria including safety, performance, contract cost, experience and capability, ability to meet our mobilisation timelines and the size and quality of their contract fleet.

“Their equipment fleet suits our proposed style of mining and, as one of Australia’s largest hard-rock underground mining equipment solutions providers, we will have access to a large range of equipment options and high-class maintenance and rebuild capacity – giving us significant operational and strategic flexibility, which is important when operating a number of underground mines.

“This includes having access to the Emeco operating system, which could add significant value to future operations, as well as having a contracting partner that is willing to embrace the very latest in mining technology and data management and usage, including the proposed use of underground electric vehicles, which we have already trialled.”

Mincor has also completed – on time and budget – all works associated with the Early Works Contract at Cassini project. This work, carried out by Hampton Mining and Civil Services, included clearing of the Cassini site area, excavation of the box-cut (pictured), construction of the site office pad, magazine and waste areas and construction of the surface settling dams and haul road.

Mincor’s Kambalda nickel restart plans ramp up

Mincor Resources says the definitive feasibility study (DFS) for the integrated nickel restart plan at its Kambalda assets in Western Australia progressed well during the December quarter, with mining contractor awards expected to occur soon.

The restart will operate in two distinct areas: the Northern Operations (Long and Durkin mines) and the Southern Operations (Cassini and Miitel mines).

Mining contract tender pricing updates for the Southern Operations were received in late December and are currently under review, while, for the Northern Operations, updated mining inventory, mine design, mine schedules and contractor pricing are expected this month for assessment, Mincor said. A tender for surface haulage was sent to contractors for pricing, with submissions also expected this month.

During the quarter, Mincor progressed the pricing for an early capital works program at Cassini, which includes minimal site clearance and a box-cut. A decision on the award of this contract is expected shortly, it said.

The DFS, meanwhile, is still expected to be delivered this quarter.

Following the completion of the updated Cassini mineral resource in November, the total nickel resources across Mincor’s Kambalda tenements now stands at 4.9 Mt at 3.8% Ni for 187,900 t of nickel.

In October at the Paydirt 2019 Australian Nickel Conference in Perth, Western Australia, Mincor Resources’ David Southam said the restart of the Kambalda nickel mine would act as a “global showcase” for all-electric underground light vehicles.

Electric underground light vehicles coming to Kambalda, Mincor’s Southam says

Mincor Resources’ David Southam said the restart of the company’s Kambalda nickel mine in Western Australia will act as a “global showcase” for all-electric underground light vehicles when it opens in the next few years.

Southam, the company’s Managing Director, made such a statement at the Paydirt 2019 Australian Nickel Conference in Perth, Western Australia, this week.

The company is currently running a definitive feasibility study (DFS) at the project, at the same time as completing drilling to add resources to the property. First site works could occur in the March quarter, according to Southam.

So far, Mincor has built up a 4.7 Mt resource base grading 3.7% Ni for 175,300 t of contained nickel. The company hopes to deliver initial throughput of between 400,000-600,000 t/y of ore over an initial four-to-five-year period, which it will sell to BHP’s nearby Kambalda operations as part of an offtake agreement with the major miner.

Southam said the company’s decision to restart underground nickel mining operations using new light electric vehicles such as Safescape’s Bortana EV (with system integration from 3ME Technology and Agrale) would reduce ventilation costs and diesel particulate counts.

The Bortana EV, specifically, has had a prototype undergo local mine site testing in Newcastle, New South Wales, before an extended trial with Kirkland Lake Gold’s Fosterville mine in Victoria.

Southam also said the company had a longer-term aim to transition larger mining vehicles to electric once infrastructure was established.

“This mine restart will be a global showcase for this new and more environmentally-friendly mining technology,” he said.