Tag Archives: mine construction

Cementation Americas banks $200M underground mine development, construction contract

Mineral project development, Mining services, , ,

Murray & Roberts Holdings has announced that Cementation Americas has been awarded a mine construction project with a major mining house in Latin America.

The multi-year underground mine development and construction contract is valued at approximately $200 million, with the award reinforcing Cementation Americas’ strong capability to deliver on large underground mine construction projects for top-tier clients, it said.

Cementation Americas has provided mine engineering and construction services to the Latin American market since 2003 and has successfully completed multiple large-scale complex mine construction scopes of work in this mining market.

Monadelphous to construct new chemical plant at Talison’s Greenbushes lithium mine

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Monadelphous Group has secured what it says is a major contract for the construction of the Chemical Grade Plant 3 (CGP3) at Talison Lithium’s Greenbushes site in the south west of Western Australia.

The multidisciplinary contract, valued at approximately A$160 million ($102 million), covers the installation of a new crushing and screening facility and lithium concentrate processing plant. It also includes associated tank and piping fabrication works and electrical supply.

Monadelphous Managing Director, Zoran Bebic, said the award of this contract follows a successful period of early contractor involvement.

“We are delighted to have secured this key opportunity which further extends our participation in the development of Talison Lithium’s Greenbushes operations,” Bebic said.

Work will commence on site later this year and is expected to be completed in the first half of 2025.

The mining and processing operations at Greenbushes have been upgraded and expanded over the decades to increase production and incorporate new technologies as demand for lithium minerals has grown. The development of this third chemical grade lithium processing plant at Greenbushes will enable Talison to continue to supply the downstream lithium processing facilities of its shareholders currently being established in Western Australia and its facilities in China.

STRACON and RIPCONCIV look to collaborate on Curipamba-El Domo copper-gold mine build

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Adventus Mining Corporation and Salazar Resources Limited have signed a Letter of Intent (LOI) for the award of a mining and construction contract to a joint venture between STRACON S.A., an established Peruvian mining contractor with operations throughout Latin America, and RIPCONCIV, a large and respected Ecuadorian infrastructure construction contractor, related to development of the Curipamba-El Domo copper-gold project in central Ecuador.

The LOI allows the parties to immediately commence activities relating to local community-targeted training and employment, constructability reviews, logistics studies and execution planning – all of which are value-add activities directly supporting Adventus and Salazar’s plan to formally commence construction of the project in the June quarter of 2023.

A definitive agreement is expected to be executed in the December quarter of 2022, which will be structured in an alliance-partnership model to ensure focus on the best solutions for the project while ensuring that risks are allocated to the parties best equipped to manage and mitigate. The STRACON-RIPCONCIV JV will be responsible for the successful construction of the open pit, tailings facilities, and associated mine infrastructure as well as the first two years of mine operation.

In 2021, Adventus and Salazar released an open-pit mine feasibility study and updated preliminary economic assessment on a separate underground mine option for the project. This outlined a 10-year open-pit operation producing, on average, 21,390 t/y of copper-equivalent over the 10-year life-of-mine, alongside 20,000 t/y of copper-equivalent payable output from years 11-14 from the underground.

On site, focus has been on drilling to support the detailed engineering program and the implementation of health, safety, security and environmental management plans in anticipation of formal construction commencement in the June quarter of 2023.

Work continues to advance on site with an ongoing pre-construction program involving activities such as geotechnical and hydrogeological drilling, camp installation, IT, infrastructure, logistics planning, community hiring, public and private security provisions, water management and electrical power systems.

A contract for the detailed engineering and design of the tailings storage facility (TSF), waste rock facilities (WRF) and associated infrastructure was recently awarded to engineering firm Klohn Crippen Berger (KCB). Design work has commenced and is expected to be completed in the March quarter of 2023, prior to the start of construction.

In June 2022, KCB completed a study to optimise the use of waste rock during the pre-strip period for use as construction material. This work resulted in an anticipated overall reduction of pre-strip volume of approximately 3 Mt of waste, which is expected to reduce construction costs and provide more schedule flexibility during the pre-production period of project development. An updated mine plan based on the reduced pre-strip quantities is expected to be completedthis month, which will then be used by the STRACON-RIPCONCIV JV to finalise fleet selection and manpower planning.

Engineering for the project process plant and surface infrastructure is now well underway by engineering firm DRA Global, the lead detailed engineering consultant for the project. Work is on schedule and currently focused on the negotiation and award of long lead equipment packages from mining equipment vendors, with a 30% progress milestone review planned for late September 2022.

Following the successful receipt of ESIA technical approval from the Government of Ecuador in May 2022, Adventus and Salazar are continuing to plan for the public consultation process. The Government of Ecuador is in the process of redefining the requirements for this consultation process and the President of Ecuador is expected to enact a corresponding decree in 2022.

The final control capital budget for the project is expected to be announced in the June quarter of 2023. To date, the companies have seen some reductions in projected capital costs such as from improvements in the TSF design, which are tending to offset cost pressures associated with inflation and global geopolitical instability.

At a project level, the Curipamba-El Domo copper-gold asset is owned 75% by Adventus and 25% by Salazar.

BAUER builds foundations with Teck at Red Dog mine in Alaska

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BAUER Foundation Corp and its jet grouting and Cutter Soil Mixing (CSM) methods are being put to the test in arctic conditions at Teck Resources’ Red Dog zinc mine in Alaska as part of a project to improve ground conditions at the operation.

Red Dog is one of the world’s largest zinc mines, located in the northwest of Alaska, around 170 km north of the Arctic Circle and nearly 1,000 km to the northwest of Anchorage. The mine has been operating since the late 1980s with around 10% of the world’s zinc extracted here by open-pit mining.

Its location in the Arctic Circle means the entire mine is in a geological permafrost area that keeps the ground permanently and completely frozen below a certain depth. There is, however, an active zone near the surface that thaws during the summer and refreezes during winter.

Based on an evaluation of the permafrost and soil on the site, ground improvements were identified as a prudent measure to counteract the effects of potential melting permafrost, BAUER said. To this end, BAUER Foundation was tasked by Teck with carrying out field tests using the jet grouting and CSM methods.

“The trials included detailed data capture and strict quality controls in close collaboration with Teck, the project owner, and other geotechnical consulting engineers,” Alejandro de la Rosa Knecht, Project Manager with Bauer Foundation, explained. “Trials were carried out from August to December of 2019, which ultimately identified the CSM method as the most suitable choice for the main scope of this project.”

The CSM method combines features of the diaphragm wall technique and the mixed-in-place ground improvement method (MIP). The soil is broken up using a cutter, then rearranged and mixed with an aggregate.

The trials for Red Dog also determined the extent to which existing subsoil were to be replaced with suitable filler material to facilitate later mixing.

In 2020, during the period from July to November, 50% of the pre-drilling was completed as well as 30% of the CSM. In addition, BAUER Foundation was tasked with the construction of a secant pile wall as an extension to an existing slurry wall. To achieve this, the required pile wall was integrated into the existing slurry wall and the underlying rock using primary and secondary piles. In all, 93 secant piles were constructed. A multi-purpose BAUER BG 30 drilling rig with special Arctic equipment along with various drilling tool and mixer sets were used for the execution of all the works.

One of the main challenges was the mobilisation of equipment in the limited time provided by the schedule, BAUER said. However, the required special equipment was mobilised in record time. Some equipment was transported by plane and then by ship from Seattle Harbour across the Bering Sea to a dock just over 80 km from the mine. Other equipment was transported via Hercules aircraft from Anchorage airport to the airport on the mine site. This logistical success was made possible by close collaboration with various BAUER subsidiaries and Teck, BAUER said.

“The remote and isolated location, the long deployment times and accommodation in camps pose additional challenges, as do the extreme Arctic climate conditions, precautionary measures associated with the corona pandemic and the specific safety requirements of the mining industry,” de la Rosa Knecht said.

Despite all these challenges, the Bauer and client teams were able to successfully conclude trial work between August and December 2019 and the first phase of production activities between July and November 2020.

The final production phase, which includes CSM and demobilisation, is due to be completed by June 2021.

Innovation and integration unlocking doors for Fluor’s mining and metals business

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With mining companies looking to replenish spent resources in many commodities, EPC and EPCM contractors’ pipelines are starting to fill up.

IM Editor Dan Gleeson spoke with Tony Morgan, President, Mining and Metals, Fluor, to find out how the contractor is continuing to win business and differentiate its offering from the rest of its peers.

International Mining: How important is securing early-stage involvement in mining projects in terms of eventually winning the major EPC/EPCM contract?

Tony Morgan: It is very important and there are some good reasons for that. If you get a contractor that is used to building significant projects and can apply the right tools in the earlier phase of the project, you will receive an aligned project in terms of the technology used, execution strategy and the techniques, such as modularisation. All of these plans will be built in at the front-end of the project and, when you go into the execution phase, the personnel executing the project will be well-versed in the strategy.

Quellaveco in Peru (pictured), South Flank in Australia, a bauxite mine in Guinea and Peñasquito in Mexico are good examples of projects where we were engaged in the early stages and helped set the projects up for success.

This isn’t to say that if one contractor starts a project, another contractor cannot come in. We have taken over and succeeded in the execution of several projects in this way. This typically occurs when the client deems that the previous contractor will be unable to perform the project’s execution phase because of the project’s size or the contractor has failed to perform in the current phase.

IM: Has the talk from mining companies of more EPC/EPCM contracts being offered with incentives/penalties that effectively share execution risk become a major trend in the industry?

TM: There’s always been a desire to include penalties and incentives in contracts. The extent to which these can be evenly applied really depends on the market, whether contractors are willing to take them on and then the client’s desire to have control over the project.

The best way to execute a project is to allocate the risk to the party that can best control the risk. If you step away from that principle, it can create inequalities in the contract.

Fluor is willing to take incentives and penalties where we have full control of the project, i.e., where we have been engaged from the start, we understand the project and have control over the execution phases. In a lot of our projects, we do that, especially using our engineering, procurement, fabrication and construction model.

In projects where we don’t have full control, there are other contractor arrangements that can be used successfully. For example, we are carrying out a project at the moment where we have an integrated project management team that combines the best personnel from both our client’s team and our team. On this project, there are significant performance incentives at the end of the project.

IM: How has the proliferation of automation, electrification and digitalisation impacted your work as an EPC/EPCM provider?

TM: It’s fair to say nobody – our clients especially – want mines coming into service in the 2020s and beyond that use the technology of 10 to 15 years ago. Automation, electrification and digitalisation are all critical to the success of these future projects.

At Fluor, we are investing a great deal in developing our automation and digitalisation expertise. We are working with IBM on several efforts around predictive analytics. We also have a section of the company focused purely on innovation. We are bringing innovative and automated solutions to projects, including some active and passive sensing technologies used to help safeguard personnel in the field and track equipment and materials.

One of the solutions we have developed is Safety Pin, which allows us to know where every worker is and to notify workers of areas that are not safe to enter.

Innovation is a differentiator for us as we have been adopting various innovations on a number of projects. We know what works and what doesn’t. Others talk about innovation without having applied innovations to large-scale projects.

IM: Where is Fluor seeing most demand for its services on a regional and commodity basis?

TM: We have projects globally, including bauxite and diamond projects in Africa, iron ore projects in Australia and gold projects in Mexico. Copper projects in South America are extremely active right now. We are executing a number of projects in South America – Quellaveco and Spence being two of the largest – and are also engaged on a number of other ones.

This article is part of a larger Q&A to be featured in the December print issue of International Mining