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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

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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

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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

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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

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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

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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.

South32 making engineering and design headway at Hermosa project

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A stellar set of annual financial results has provided the ideal backdrop for South32 to update shareholders on its rapidly progressing Hermosa project in Arizona, USA.

Released late last month, the company’s 2022 financial year results showed off record earnings of $2.6 billion, record free cash flow from operations of $2.6 billion and record return on invested capital of 30.1%.

With group copper-equivalent production expected to increase by 14% in the next financial year, South32 looked to be well leveraged to in-demand metal markets at the right time.

The company has progressively been repositioning its portfolio toward metals critical for a low-carbon future, having already established a pipeline of high-quality development options. One of these high-quality development options is Hermosa.

Hermosa, which the company acquired outright back in 2018 as part of a takeover of Arizona Mining, is key to the company’s critical metals pursuit, having exposure to base and battery metals that are expected to grow in demand – both domestically in the US and internationally.

It is being designed as South32’s first ‘next generation mine’, according to Hermosa President, Pat Risner, with a series of technical reports highlighting its use of automation and technology to minimise its impact on the environment and target a carbon-neutral mining scenario in support of the group’s goal of achieving net zero operational greenhouse gas emissions by 2050.

These same reports also highlighted the potential to develop a sustainable, low-cost operation producing zinc, lead and silver from the Taylor deposit, with the bonus of possible battery-grade manganese output for rapidly growing domestic markets from the Clark deposit.

In the latest results, the company said it was devoting $290 million of growth capital expenditure in the 2023 financial year to progressing Hermosa as it invests in infrastructure to support critical path dewatering and progress study work for the Taylor Deposit. This is ahead of a planned final investment decision expected in mid-2023, which should coincide with the feasibility study.

South32 is devoting $290 million of growth capital expenditure in the 2023 financial year to progress Hermosa

Some $110 million of this was assigned to construction of a second water treatment plant (WTP2) to support orebody dewatering at the asset, alongside dewatering wells, piping systems and dewatering power infrastructure.

An additional $95 million was slated for engineering and initial construction ahead of shaft sinking at the operation, plus work to support power infrastructure and road construction.

The remaining amount was expected to support work across the broader Hermosa project, including Clark study costs and the Taylor feasibility study.

All signs from these results are that the company is laying the groundwork to develop this project ahead of that mid-2023 deadline.

In another sign of progress, South32 recently signed a “limited notice to proceed” for shaft engineering and design at Hermosa with contractor Redpath, Risner confirmed, adding that the award represented a positive step forward for the project.

“We look forward to continuing our engagement with local communities and all of our stakeholders as we make further progress with the project,” he said.

Redpath will no doubt be evaluating the technical studies that have been signed off to this point and informing future reports.

The PFS design for Taylor is a dual shaft mine which prioritises early access to higher grade mineralisation, supporting zinc-equivalent average grades of approximately 12% in the first five years of the mine plan. The proposed mining method, longhole open stoping, is similar to that used at Cannington, in Australia, and maximises productivity and enables a single stage ramp-up to the miner’s preferred development scenario of up to 4.3 Mt/y.

Yet, the Clark deposit opportunity – which has become even more tantalising with the US Government invoking the Defense Production Act and supporting the production of critical metals including manganese – could see the plan change.

The company says it may accelerate the prefeasibility study for the Clark deposit, which is spatially linked to the Taylor deposit. A scoping study has previously confirmed the potential for a separate, integrated underground mining operation producing battery-grade manganese, as well as zinc and silver from the deposit.

South32 previously said Clark has the potential to underpin a second development stage at Hermosa, with future studies to consider the opportunity to integrate its development with Taylor, potentially unlocking further operating and capital efficiencies.

With a PFS selection study expected later this year, investors and interested parties will soon know the role Clark could play in the wider Hermosa project.

What is easy to gauge already is that Hermosa is progressing on a track that many other development projects in in-demand sectors have gone down.

SNC-Lavalin to help BAMIN join up mining and rail ops at Pedra de Ferro

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SNC-Lavalin has been awarded a C$14.8 million ($11.4 million), two-year contract to provide design and engineering services for the Pedra de Ferro project in northeast Brazil for BAMIN, a wholly-owned subsidiary of ERG.

The Pedra de Ferro project involves an iron ore mining operation in the state of Bahia that extracts and processes two types of ore, hematite and itabirite, and transports it for commercialisation via rail and sea. To help increase capacity and expand production, the company will design and engineer an open-pit mine, a hematite processing plant, an itabirite processing plant, a product storage yard, a cargo loading station and a railway loop that will provide access to the West-East Integration Railroad (FIOL). In September 2021, BAMIN signed a concession agreement with the Brazilian Federal Government to complete and operate a section of the FIOL railway in the country. Once completed, FIOL will be able to carry 60 Mt/y of freight, with BAMIN’s products accounting for a third of this capacity.

“Our integrated pit-to-port approach is present at every level in the mining industry, including greenfield, brownfield, new investments, due diligence and assessment studies,” Cesar Inostroza, SNC-Lavalin Mining & Metallurgy CEO, said. “Whether it’s complementing existing operations or getting new ones up and running, we deliver safely on time and on budget.”

Maria de Lourdes Bahia, SNC-Lavalin Mining & Metallurgy Vice-president, Brazil, said: “This project is extremely important to the Brazilian economy, helping generate thousands of jobs and positioning Bahia to become the third largest iron ore producing state in Brazil. Our commitment to innovation, technology and sustainability enables us to deliver the best solutions with lasting benefits to our clients and the communities in which we work and live.”

ERG has previously flagged that Pedra de Ferro could produce up to 18 Mt/y of iron ore at full capacity.

Sedgman grows Western Australia presence with Onyx Projects acquisition

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Sedgman says it has acquired project management and engineering company Onyx Projects, enhancing its growing Western Australia presence and offering to clients.

Onyx’s long-standing reputation, specialist technical capabilities and experience in the iron ore industry, paired with Sedgman’s minerals processing expertise, project delivery capability and experience, expands Sedgman’s service offering to clients from sustaining capital through to major greenfield development, it explained.

Onyx Projects will be re-named Sedgman Onyx and will operate as a part of Sedgman’s Australia West business unit.

Sedgman Managing Director, Grant Fraser, said: “We welcome the Onyx Projects people to the team and we’re looking forward to working with them. The addition of Onyx Projects to Sedgman will allow us to increase our offering while complementing Sedgman’s existing capabilities to provide our clients with a broader service offering.”

Onyx Projects Managing Director, Ian Beaumont, said: “In Sedgman, we are pleased to find a strategic partner that complements our current services, expands our capability and offers new opportunities to our personnel and our clients.”

Listed among the projects Onyx Projects has worked on are the likes of the Brockman 4 Camp, the West Angelas Deposit A Integrated Dewatering Project, the Koolyanobbing 11Mtpa Upgrades and the Murrin Murrin Nickel Cobalt Operation – Process Control System Services.

Sedgman and Onyx Projects will work through a transition process focused on the continuity of service to clients, Sedgman added.