Tag Archives: mine engineering

Eldridge, Brightstar Capital Partners, Claure Group to acquire majority stake in Ausenco

Comminution of minerals, Environmental, Mining mergers and acquisitions, Mining services, Sustainable mining, , , , , , , , , , , , ,

Eldridge, Brightstar Capital Partners and Claure Group have signed a definitive agreement to acquire a majority stake in Ausenco, a global integrated engineering and consulting services provider to the minerals and metals industries, and energy transition market, from Resource Capital Fund VI L.P. and other co-investors.

The company’s co-founder, Zimi Meka, will remain CEO, board member and investor in Ausenco.

Founded in 1991, Ausenco’s 3,000 employees are focused on the world’s most challenging engineering and consulting projects, drawing on deep technical expertise with a commitment to sustainably delivering end-to-end solutions for its clients and their communities. The team of scientists, engineers and professionals design and build efficient mine and metal extraction facilities; deliver sustainable mine waste and water management, and mine closure and remediation solutions; and engage with local and Indigenous communities to create lasting benefit, the company says.

Meka said: “We’ve always been about challenging what’s possible and delivering services sustainably and with integrity. From permitting to closure, our people are finding better ways to plan projects, efficiently use resources, protect the environment, and deliver value to clients and communities. In Eldridge, Brightstar and Claure Group we have partners that understand this ambition and our culture.”

Ausenco has been an integral part of the RCF VI portfolio since the original investment in December 2014, and subsequent privatisation from the ASX in 2016 in a deal that valued Ausenco at A$150 million ($97 million), RCF said.

“During RCF VI’s ownership, Ausenco has constructed four major copper concentrators: Carrapateena (pictured, photo courtesy of OZ Minerals), one of the largest copper reserves in Australia, Constancia and Mina Justa in Peru and Mantoverde in Chile, for a combined annual copper capacity of more than 400,000 t,” RCF added. In addition to copper, Ausenco has grown capabilities in sustainability, lithium and operational performance.

Todd Boehly, Tony Minella and Duncan Bagshaw, co-founders of Eldridge, said: “We invest in what people need and what people want – both qualities expressed in Ausenco’s activity the past three decades. Ausenco has worked around the world to deliver minerals critical to nearly every aspect of our lives and to the ongoing energy transition. We are excited to partner with a world-class management team to further enhance and diversify their service offerings.”

Andrew Weinberg, Founder and CEO of Brightstar Capital Partners, said: “Ausenco plays a vital role in facilitating the global transition to electrification and electric vehicles. Brightstar is confident that Ausenco is strategically positioned for future growth due to its impressive track record of performance, and the anticipated increased demand for metals and minerals that are essential to sustainable solutions.”

Marcelo Claure, Founder and CEO of Claure Group, who will join Ausenco’s Board of Directors and has focused investments in Latin America and the energy transition, added: “With the shift to more sustainable energy gaining momentum, Latin America will have a key role to play as the main producing region for essential minerals, such as copper and lithium. Given Ausenco’s strong presence and pipeline of projects in the region, we believe the company will be at the forefront of this transition, actively contributing to the electrification of the world.”

Monadelphous wins A$150 million worth of work with Fortescue, BHP and Rio Tinto

Equipment maintenance, Mine operation news, Mining services, , , , , , , , , ,

Engineering company Monadelphous Group Limited says it has secured new contracts and contract extensions across the mining and metals space in Australia totalling approximately A$150 million ($102 million).

The company has been awarded a contract with Fortescue Metals Group for the supply and construction of an overland conveyor and transfer station at the Christmas Creek mine site in the Pilbara region of Western Australia. The scope of work, which includes civil, structural, mechanical, piping, electrical and instrumentation works, commences immediately and is expected to be completed in the first half of 2024.

In addition, Monadelphous has secured a two-year extension to its existing maintenance services contract at BHP’s Olympic Dam operations in South Australia. The scope of work includes mechanical and electrical maintenance, shutdown and project services.

Finally, the company has been awarded a two-year extension to its existing contract with Rio Tinto to continue providing mechanical, electrical and access maintenance services for fixed plant shutdowns at its Gove operations in the Northern Territory.

Duratec banks Rio Tinto Western Australia work at Robe River and Dampier Salt

Equipment maintenance, Mine operation news, Mining services, Steel and iron ore, , , , , , , , ,

Australian engineering, construction, and remediation contractor, Duratec Limited, has recently been awarded A$30 million ($20.4 million) in mining and industrial (M&I) segment work with Rio Tinto across the major miner’s iron ore and salt operations.

Key project awards within this total consist of the structural integrity remediation and Bins 3-5 life expansion works at Robe River’s West Angelas mine (A$19 million), which will commence
immediately and is due for completion by the end of the June quarter of 2025, and Dampier Salt’s Lake Macleod jetty structural integrity works bays 10 to 11 (A$6.8 million), which will commence immediately and is due for completion by the end of the calendar year.

Structural integrity projects consist of blast, protective coating and the structural remediation (including welding and steel strengthening) of a client’s assets. This, Duratec says, strongly aligns with the company’s remediation expertise and proven track record in delivery of similar packages through the company’s M&I segment. The A$30 million in M&I segment work since mid-May 2023, including these two key project awards, demonstrates Duratec’s ability to strengthen its annuity style contract awards with key strategic clients, which remains a key focus and growth area of the company.

Duratec’s Managing Director, Phil Harcourt, said: “I am elated with the company’s efforts in converting tangible opportunities to our orderbook and with the ability of our company to present itself as the contractor of choice with our key clients. The M&I segment currently represents 25% of our overall orderbook, and the outlook for this segment remains very strong, which Duratec is well positioned to capitalise on – in line with the business strategy.”

NioCorp progresses to first phase of Elk Creek EPC contracting with Zachry Group pact

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NioCorp Developments Ltd has executed a contract with Zachry Group to develop a cost for the surface facilities associated with NioCorp’s Elk Creek critical minerals project in Nebraska, USA.

The contract represents the first phase of engineering, procurement and construction (EPC) contracting for the $1.2 billion project, the company says.

NioCorp had previously selected Zachry, one of the world’s leading turnkey engineering, construction, maintenance, turnaround and fabrication companies, as its EPC firm for the project’s surface facilities.

“We are very pleased to take this important next step with Zachry as it positions NioCorp to advance to a construction start following receipt of sufficient project financing,” Mark Smith, Chairman and CEO of NioCorp, said. “Zachry is a highly respected company with an excellent track record of success in large projects such as ours, and I am pleased to continue our partnership with Zachry as we work together to bring the Elk Creek Project to commercial reality.”

Scott Honan, NioCorp’s Chief Operating Officer, added: “Zachry has a large craft workforce and a strong presence in Nebraska. Together with our long relationship with the Zachry team, this makes for a great fit with the Elk Creek project. Having spent time at Zachry’s offices and multiple project sites, I am confident that Zachry can execute their scope of work on our project in a safe, timely, and cost-effective manner.”

Ralph Biediger, EPC President, Zachry Group, said: “We are excited to work with NioCorp to support the development of critical minerals that will help the United States transition to a lower-carbon economy. We look forward to bringing our decades of EPC experience to bear on this vitally important project and continuing our long-term presence in Nebraska.”

A 2022 feasibility study outlined a project able to process 36.7 Mt of of ore over a 38-year life of mine to produce 171,140 t of niobium in the form of ferroniobium, 3,676 t of Sc2O3 and 431,793 t of TiO2. Rare earths have been added to the mineral resource, and the indicated resource contains 632,900 t of total rare earth oxides.

Hatch, ERCOSPLAN, K-UTEC on board for South Harz’s Ohmgebirge potash PFS

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South Harz Potash Limited has appointed its specialist team to deliver the prefeasibility study for its 100%-owned Ohmgebirge potash development project in Thuringia, Germany.

Hatch is, South Harz Potash says, a recognised leader in the development and implementation of potash projects globally and has worked on projects in Europe, North America and beyond.

ERCOSPLAN and K-UTEC, both part of this team, have a long tradition in the development of potash projects in many parts of the world, and both are particularly experienced in the Thuringian “hartsalz” typical of the region, according to the company. Micon, meanwhile, will continue to provide geological support and will be responsible for the mineral resource estimate.

The PFS is set to further refine the engineering, design and cost estimates (to +/-20%) for the Ohmgebirge development, following the scoping study completed in August 2022. Key workstreams have already commenced with overall PFS completion scheduled for January 2024.

South Harz Chief Operating Officer, Lawrence Berthelet, said: “We are very pleased to be working with global industry leaders, Hatch, and premier German mine and process engineering teams, ERCOSPLAN and K-UTEC, to advance our flagship Ohmgebirge Development. Coupled with our geology partner, Micon, the external team will deploy its experience alongside our owner’s team to advance the project through the PFS workstreams and will provide essential support to the Environmental Impact Assessment and permitting processes announced earlier this month.”

The team will be under the in-house leadership of South Harz, Chief Operating Officer, Lawrence Berthelet, with key PFS specialist discipline engineering responsibilities.

Hatch will act as the lead consultant and study manager (external), with Owner’s Engineer responsibility. It will also carry out the infrastructure engineering and design, including all energy trade-off studies, plus capital and operating cost estimates.

ERCOSPLAN is the specialist engineering consultant responsible for mine planning, geological risk assessment, geotechnical modelling, shaft hoisting and underground backfill technology engineering.

K-UTEC AG Salt Technologies has responsibility for process flowsheet design, backfill technical and constituent engineering.

Mining consultant, Micon International, will provide continuity in geological modelling, Competent Person and mineral resource update provision.

The South Harz project hosts a globally large-scale potash JORC (2012) mineral resource estimate of 5,000 Mt at 10.6% K2O of inferred resources and 258 Mt at 13.5% K2O of indicated resources across four wholly-owned project areas within central Europe. This comprises three perpetual potash mining licences, Ohmgebirge, Ebeleben and Mühlhausen-Nohra, and two potash exploration licences, Küllstedt and Gräfentonna, covering a total area of approximately 659 sq.km.

The August 2022 scoping study outlined a 4.5 Mt/y run-of-mine project with a K2O head grade of 13.5% over a 21-year life.

European Metals Holdings enlists help of DRA Global for Cinovec lithium DFS

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

European Metals Holdings has appointed DRA Global to complete the definitive feasibility study (DFS) for the Cinovec lithium project in the Czech Republic.

DRA, European Metals says, has the necessary capacity, expertise and track record to deliver the Cinovec DFS in a timely and efficient manner and will be working to build on all the optimisation work the Cinovec team completed over the course of 2022 with a view to completion of the study in the December quarter of 2023.

DRA’s appointment for this piece of project development work is testament to both the company’s and its joint-venture partner CEZ s.a.’s commitment to, and the tremendous prospectivity and value of, the Cinovec project, EMH said. The Cinovec project’s in-house team will work closely with DRA to develop and finalise the DFS.

Executive Chairman, Keith Coughlan, said: “We are pleased to have secured a company of DRA’s calibre, with a proven track record of delivering critical pieces of work like the Cinovec DFS in a timely and efficient manner.

“We will be working closely with DRA over the coming period, and we are excited by the positive outcomes that this DFS will provide. It is not expected that this will delay the critical path of the project, as during this time the company will be in the process of finalising permitting, offtake and project finance matters.

“European Metals is well positioned for the rising demand in battery materials, developing the Cinovec project, the largest hard-rock lithium project in the European Union, which is centrally located on the Czech Republic’s border with Germany. The project possesses excellent ESG credentials, which will enable the production of battery-grade lithium hydroxide and carbonate with potentially one of the lowest CO2 emissions, globally.”

James Smith, CEO of DRA Global, said: “We are proud to be working with EMH on the DFS for the impressive Cinovec project. Our experience in lithium spans the Australian, African and Americas markets. We are excited to share this knowledge with EMH to deliver the best results for their project.”

Cinovec is owned 49% by EMH and 51% by CEZ. A prefeasibility study on the project in January 2022 outlined annual battery-grade LiOH.H2O production of 29,386 t/y. This was based on extracting ore from an underground mine operating at 2.25 Mt/y with paste backfill.

Atlantic Lithium brings in Primero for FEED flowsheet services at Ewoyaa

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

Atlantic Lithium has awarded the processing plant front-end engineering design (FEED) contract for its Ewoyaa lithium project in Ghana to Primero Group.

Under the terms of the agreement, Primero will provide services to optimise the project’s flowsheet, identify long lead items, look to maximise the project’s long-term profitability, reduce execution risk and ultimately support the advancement of the project towards becoming a financially and operationally robust lithium-producing mine, Atlantic Lithium said.

The value of the contract is $980,000; the consideration of which is to be paid in accordance with the three-stage earn- in agreement the company has with Piedmont Lithium Inc to fund the project towards production. This could see Piedmont invest up to $103 million in the project to eventually deliver a 1.5-2 Mt/y run of mine operation for a 27.5% stake in Atlantic Lithium’s Ghana portfolio.

Primero, a wholly-owned subsidiary of NRW Holdings Limited, specialises in the design, construction and operation of global resource projects. The group has extensive experience in delivering large-scale construction contracts, including in the lithium industry and in West Africa, demonstrating significant expertise, versatility and competence, Atlantic Lithium says.

Primero, the company says, has provided services for a number of lithium projects with comparable flowsheets to Ewoyaa’s, including Bald Hill (Tawana Resources), Pilgangoora (Pilbara Minerals), Finniss Lithium (Core Lithium), Mt Holland (Covalent Lithium) and Xuxa (Sigma Lithium).

Following the recent completion of the 47,000 m resource and exploration drilling program at the Ewoyaa project, Atlantic Lithium is currently working towards producing an updated mineral resource estimate (MRE), intended to be announced in the March quarter of 2023. The updated MRE will then be used to support a definitive feasibility study, expected to be completed by mid-2023.

West African secures Lycopodium and Metso Outotec mills for Kiaka gold project

Comminution of minerals, Mineral project development, Mining equipment, Mining services, Precious metals, , , , , , , , , ,

West African Resources Limited is heading towards construction at its 90%-owned Kiaka gold project in Burkina Faso, having registered strong funding interest, awarded an engineering, procurement and construction management (EPCM) contract and booked the mill package for the development.

Kiaka, an asset with 7.7 Moz of reserves and resources on its books, is the company’s second gold mine in the country on top of its operating Sanbrado asset.

WAF’s feasibility study, released in August 2022, outlined pre-production capital costs of $430 million and a 2.5-year pre-tax pay back at a $1,750/oz gold price for the project. Kiaka was expected to operate over an 18.5-year life of mine, producing, on average, 219,000 oz/y of gold (on a 100% basis).

West African Executive Chairman, Richard Hyde, said strong competitive bids from its debt finance process supported the company’s targeted debt of $300 million for the project.

In the meantime, WAF has signed a notice of award with Lycopodium based on the engineering company’s priced proposal for the EPCM of a new carbon-in-leach treatment plant for Kiaka. This award incorporated Lycopodium’s early commencement of the engineering and procurement portion of the contract to complete the engineering and tendering of the long-lead mill package.

Lycopodium was also the contractor on the Sanbrado construction project.

In line with this, Lycopodium and WAF have undertaken a competitive tender process for the supply and delivery of the SAG and ball mill package for Kiaka.

Following the evaluation of tenders, the company selected Metso Outotec to supply the 18 MW SAG mill and 9 MW ball mill. Metso Outotec also provided the SAG and ball mills at Sanbrado (construction of the comminution circuit, pictured). WAF has signed the order with Mesto Outotec, which contains a firm pricing and delivery schedule for the mill package components that fits well into the Kiaka construction schedule, it said.

The mining company says it has mobilised earthworks equipment to the Kiaka project site. The initial areas to be cleared include the permanent camp area and the process plant area. Access road upgrades are also planned to be undertaken during the current dry season.

The construction schedule for Kiaka remains on track, with major works expected to commence in the March quarter and first gold in 2025.

WAF says it also remains on target to meet 2022 production and cost guidance of 220,000-240,000 oz of gold produced at an all-in sustaining cost of less than $1,100/oz.

SNC-Lavalin bolsters Canada mining and metallurgy practice with hire of Miguel Tortosa

Mining people, Mining services, , ,

SNC-Lavalin, a fully integrated professional services and project management company with offices around the world, has announced the appointment of Miguel Tortosa as Vice-President and General Manager, Mining and Metallurgy, Canada.

Based in Toronto, he will report to César Inostroza, CEO, Mining and Metallurgy at SNC-Lavalin.

Along with leading business initiatives for the mining and metallurgy practice across Canada, Tortosa will be responsible for identifying and executing on new growth opportunities for the global mining and metallurgy practice. He will be supporting the mining and metallurgy team in providing leading technical expertise to clients, while collaborating with other practice groups across SNC-Lavalin to leverage the full capabilities of the company’s end-to-end service offering in delivering client mandates, SNC-Lavalin says.

“We’re excited to have Miguel step into this important role for the mining and metallurgy business,” Inostroza said. “His significant global and domestic experience, developed across projects in Canada, South Africa, Australia, Chile and Brazil, and his specialised insight across the mining lifecycle, will be a great asset to our clients. His expertise and energy will enable us to build strong networks across the business, optimise our service delivery, and deploy the best of SNC-Lavalin’s global capabilities locally on projects across Canada.”

He added: “Mr Tortosa will help advance our role in sustainable mining and the indispensable role it plays in critical mineral supply to support the growing market for batteries required to support electric vehicles, along with the increasing electrification of society in support of net zero.”

A Montreal native, Tortosa graduated from Polytechnique Montréal with a degree in Mechanical Engineering. Prior to joining SNC-Lavalin, he worked in the mining practice at global engineering firm Wood.

Sedgman formally awarded EPC contract for Artemis’ Blackwater gold project

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , , , ,

CIMIC Group’s mineral processing company, Sedgman, has been awarded an engineering, procurement and construction (EPC) contract to deliver services for Artemis Gold at the Blackwater gold project in British Columbia, Canada.

The EPC contract, which supersedes the temporary interim service agreement announced on May 2, 2022, will generate revenue for Sedgman of C$318 million ($245 million).

Sedgman will design and construct the processing and non-processing infrastructure for a 6 Mt/y carbon-in-leach gold plant at the project.

Even before this announcement, Sedgman had made good headway on the project, executing an agreement with Metso Outotec to secure supply and delivery of crushing and grinding equipment for the processing plant.

The project schedule as laid out by Artemis supporting the EPC contract with Sedgman includes the following assumptions:

  • Receipt of the BC Mines Act and related permits in the Fall of 2022;
  • Construction mobilisation and major works preparations commence in the March quarter of 2023 with process plant bulk earthworks scheduled to be completed prior to the start of major works;
  • Commissioning activities of the process facility to commence in the firts half of 2024; and
  • First gold pour expected in the September quarter of 2024.

CIMIC Group Executive Chairman, Juan Santamaria, said: “Sedgman and Artemis have already commenced initial design and procurement work at the project, helping Artemis to unlock the value of this key gold project and work towards its first gold pour in 2024.”

Sedgman Managing Director, Grant Fraser, said: “We are pleased to be working with Artemis Gold on this exciting project and look forward to continuing our strong working relationship to ensure successful outcomes for both Sedgman and Artemis.”

Work is expected to be completed in the September quarter of 2024.

Artemis has said previously that Stage 1 development at Blackwater should lead to the building of a 6-9 Mt/y operation (6 Mt/y in years 1-4 and 9 Mt/y in year 5) able to produce around 312,000 oz/y of gold.