Tag Archives: mine engineering

DRA Global to deliver Carmichael coal handling and preparation plant

DRA Global has won its second major contract on the Bravus Mining & Resources-owned Carmichael coal project, in Queensland, Australia, with the engineering firm set to deliver the project’s A$140 million ($108 million) coal processing plant.

Bravus CEO, David Boshoff, said DRA was known for its exceptional service to the Australian resources sector, and previous work on the Carmichael project building the coal handling plant (CHP) had demonstrated its experience and capability.

The coal handling plant (CHP) and the coal preparation plant (CPP) will work together to prepare and process the coal to meet market specifications at Carmichael.

The CPP is designed to process the coal, using recycled water and density separation processes so that the product that goes into market is more energy efficient and environmentally friendly, DRA says.

DRA will carry out the engineering, design and construction of the CHP and the CPP at Carmichael. Included within this is the supply and construction of coal processing infrastructure; supply and construction of coal sizing and conveying equipment; construction of coal stockpiling infrastructure; and construction of the train load out infrastructure to enable loading of trains.

According to the original project description from October 2013 authored by engineering services company GHD, the project’s coal handling and preparation plant has been designed to receive, size and process a maximum throughput of 74.5 Mt/y run of mine coal, producing 60 Mt/y of product coal. However, this is the maximum approved production level. Initial mine production will be 10 Mt/y with a surface mine capacity of 40 Mt/y, rising to 60 Mt/y when the underground mine comes online.

DRA Global CEO, Andrew Naude, said: “DRA is delighted to have been awarded an additional major contract on the Carmichael project and to be able to continue creating employment opportunities and supporting the Central Queensland region.”

Boshoff said: “The CHP resizes the coal and the CPP processes the coal to meet final product quality requirements and in doing so it is more energy efficient and environmentally friendly. It is these facilities that will see Carmichael coal become some of the better-quality coal from around the world.”

He added: “Every week we are reaching exciting new major milestones on the Carmichael mine and rail projects bringing us a step closer to the reality of completion. We are on track and looking forward to producing first coal in 2021.”

Worley to take Neo Lithium’s 3Q brine project into DFS stage

Neo Lithium Corp and its Argentinean subsidiary LIEX SA have engaged Worley Chile and Worley Argentina to complete a definitive feasibility study (DFS) of its flagship 3Q lithium brine project in Catamarca, Argentina.

The development strategy for 3Q focuses on production of 20,000 t/y of lithium carbonate with the flexibility to expand production to 40,000 t/y after phase one is completed and operational. The DFS is scheduled for completion in the September quarter of 2021.

Gabriel Pindar, COO of Neo Lithium Corp, said: “On the back of CATL’s investment and involvement, we are very pleased to have engaged and be working with Worley who bring a wealth of lithium knowledge and experience to our 3Q project. Worley is a leading global engineering firm and has been involved in all aspects of lithium brine operations which will be invaluable in executing our DFS.”

Results of the last prefeasibility study (PFS) on 3Q performed by GHD Chile SA and Groundwater Insight Inc outlined a project with 20,000 t/y of lithium carbonate production potential with after-tax net present value (8% discount rate) of $1.143 billion, internal rate of return of 49.9%, and capital expenditure of $318.9 million.

Neo Lithium said the studies carried out by the company in its evaporation pilot plant at the salar site and the lithium carbonate pilot plant in the town of Fiambalá confirm that the general parameters defined in the PFS will be validated in the DFS.

Neo Lithium has been operating pilot evaporation ponds for more than three years, while the pilot lithium carbonate plant has been in operation for nearly two years. This has resulted in a meaningful ramp up in knowledge while improving the process all the way through to validate the PFS and take the project more efficiently into DFS with a view towards future construction, it said.

“As a result of our efforts to maintain steady operations at pilot scale level, we continue to produce our own lithium brine concentrate and lithium carbonate on a regular basis, and believe that we are on track towards our goal of being in production by the later stages of 2023,” the company added.

Argonaut Gold moves forward Magino construction with Ausenco EPC contract

Argonaut Gold says it has executed a fixed bid engineering, procurement, construction and commissioning (EPC) contract with Ausenco Engineering Canada for the construction of the Magino open-pit gold processing facility and other parts of the Magino construction project, in Ontario, Canada.

The EPC contract totals around 40% of Magino’s initial capital estimate of between $360-$380 million, the company said.

A 2017 feasibility study on Magino, a past-producing mine, outlined a 10,000 t/d operation with average annual production of around 116,000 oz of gold over a 17-year mine life (including three years of ore processed from a low-grade stockpile). This same study stated open-pit mining operations would use a fleet comprised of 16 m3 front shovels, a 13 m3 front-end loader and 140 t haul trucks.

Pete Dougherty, President and CEO of Argonaut Gold, said: “Ausenco is an industry leader in the field of building high-quality processing facilities in the mining industry and recently did an excellent job with the Moose River project in Nova Scotia, Canada.

“We are excited for Magino to be one of the first projects entering construction in the current gold price environment, as we feel first mover advantage is critical when securing a construction team of the highest quality and with a superior track record.”

Argonaut recently posted the first phase of financial assurance with the province of Ontario and expects the Magino project Closure Plan to be filed by the province of Ontario in January 2021, which will allow for construction to commence.

NRW Holdings to add further mining/metals EPC capabilities with Primero acquisition

NRW Holdings is in pole position to take over Primero Group following a cash and shares bid that values Primero at A$100 million ($74 million).

Primero Directors, who own around 30% of Primero’s equity, have unanimously recommended its shareholders accept the offer in the absence of a superior proposal coming forward.

The addition of Primero, NRW says, would provide significant engineering, procurement and construction (EPC) capability to NRW’s renamed “Minerals, Energy & Technologies” business pillar.

For Primero, meanwhile, it would deliver a “meaningful premium” to recent market trading levels and avoid the need for a potential significantly dilutive capital raising to fund working capital required to deliver its 2021/2022 financial year contracted order book, NRW said. Primero currently has a contracted order book for FY21 of circa-A$285 million and holds preferred EPC contractor status across multiple projects totalling circa-A$900 million.

Managing Director of NRW, Jules Pemberton, said: “The acquisition of Primero will provide NRW with the opportunity to expand its Minerals, Energy & Technologies specialised capability and to leverage the combined expertise of both companies to pursue new business initiatives across a large pipeline of opportunities.

“It builds on NRW’s recent acquisitions of DIAB Engineering and RCR Mining Technologies and represents a further diversification of our strategic platform to offer clients continuity of services across the whole lifecycle of resource projects – from early planning, design, development, construction to operations and maintenance. In addition, Primero is also well positioned to future-focused energy solutions, including lithium and hydrogen technologies.”

Primero Managing Director, Cameron Henry, added: “The combination of NRW’s diversified delivery model coupled with the Primero capabilities will provide our client base with a unique end to end delivery model that will differentiate within the current market and will rapidly accelerate Primero’s growth strategy.

“Our teams have been working well at multiple levels together over the past 12 months and have several projects currently approaching delivery stage that will showcase the model.”

Detailed information relating to the offer will be set out in the Bidder’s Statement and Target’s Statement, which are expected to be dispatched to Primero shareholders in late November and early December 2020, respectively, the companies noted.

Monadelphous pockets more WA iron ore, nickel work with Rio and BHP

Engineering company Monadelphous Group says it has secured new construction and maintenance contracts with both Rio Tinto and BHP, with a combined value of around A$60 million ($44 million).

The company has been awarded three three-year master services contracts with Rio Tinto for the delivery of sustaining capital projects across various mine sites and port operations throughout the Pilbara region in Western Australia (stockyard machines at Rio’s West Angelas iron ore operation, pictured), it said.

This work includes structural, mechanical and piping, electrical, instrumentation and controls, and non-process infrastructure projects.

Monadelphous also secured a three-year contract, with a two-year extension option, with Rio Tinto to provide mechanical, electrical and access maintenance services for fixed plant shutdowns at Rio’s Gove alumina operations in the Northern Territory of Australia.

In addition, Monadelphous secured a 12-month extension to its existing mechanical and electrical maintenance, shutdown and project services contract across BHP’s Western Australian nickel operations.

RUC Cementation, GR Engineering plan to collaborate on Tanami Expansion work

RUC Cementation Mining Contractors and GR Engineering Services have agreed to team up as part of a plan to construct surface infrastructure, as well as complete the shaft lining and equipping for a proposed hoisting shaft at the Newmont-owned Tanami Expansion 2 project in the Northern Territory of Australia.

Today, Barry Upton (right), Managing Director of RUC Cementation Mining Contractors, and Geoff Jones (left, next to Rod Schier, Engineering Manager for GR Engineering), Managing Director of GR Engineering Services, signed this “Teaming Agreement”.

The surface infrastructure component the two plan to work on includes winders, headframe and surface conveyors.

The companies said: “Both companies have worked together to submit a competitive and technically strong offer for the works and look forward hopefully to an award in the near future.”

RUC added: “Whilst a departure from the traditional GR Engineering work scope of treatment plant construction, RUC Mining is very pleased to have GR on board as a key construction partner and values the excellence in construction that GRES bring.”

The Tanami Expansion 2 project is expected to increase the annual capacity of the processing site to 3.5 Mt/y, from 2.6 Mt/y, and extend the life of the mine beyond 2040.

Central Systems secures $41 million Fortescue Solomon contract

Resource Development Group’s Central Systems subsidiary has been awarded a contract to design and construct the central facilities at the Fortescue Metals Group’s Solomon mine site in the Pilbara of Western Australia.

The contract with FMG Solomon Pty Ltd has a value of approximately A$57.5 million ($41.3 million) and is due for completion in June 2021.

Fortescue’s Solomon Hub is in the Hamersley Ranges and comprises the Firetail and Kings Valley mines, which together have a production capacity of 75 Mt/y. At the hub, higher iron grade, low cost Firetail ore is blended with low phosphorous Chichester ore to create the company’s Fortescue Blend.

RDG also advises that its 80%‐owned subsidiary, Crushing Service Solutions (CSS), recently demobilised from the Minjar gold plant near Southern Cross, Western Australia, as a result of early contract termination with Tianye SXO Gold Mining.

In the company’s recent annual financial report, it said it was in the process of reviewing the operations of CSS as it seeks to determine its future direction to ensure profitability.

SMS group assigned to FEED work at Cinovec lithium project

European Metals Holdings (EMH) has appointed SMS group Process Technologies as the lead engineer for minerals processing and lithium battery-grade chemicals production at the Cinovec project in the Czech Republic.

Cinovec, a joint venture between European Metals (49%) and ČEZ Group (51%, through its subsidiary Severočeské doly), is operated by Geomet. The project has recently received investment of around €29 million ($34 million) of funding from EIT InnoEnergy, the principal facilitator and organiser of the European Battery Alliance, for the project, seeing it through to a construction decision.

Under the agreement, SMS group, a leader in plant construction and mechanical engineering for the technology metals and materials sector, will provide a complete front-end engineering design (FEED) study as the major component of the ongoing definitive feasibility study (DFS) work at Cinovec.

Under the agreement, SMS will provide the following to the Cinovec project:

  • Full process integration from the point of delivery of ore to the underground crusher through to the delivery of finished battery-grade lithium chemicals for battery and cathode manufacturers;
  • The FEED will include all of the process steps – comminution, beneficiation, roasting, leaching and purification;
  • The FEED will encompass both the lithium process flowsheet and the tin/tungsten recovery circuit delivering metal concentrates to refineries; and
  • The FEED is intended to deliver a binding fixed price lump sum turnkey engineering procurement and construction (EPC) contract with associated process guarantee and product specification guarantees for battery-grade lithium chemicals. The combination of these will greatly assist to underwrite project financing from leading European and global financial institutions lending into this new energy electric vehicle-led industrial revolution, European Metals Holdings says.

The FEED study will commence immediately and SMS group is expected to deliver the EPC contract, as the final component part of the Cinovec DFS, by the end of 2021.

Herbert Weissenbaeck, Senior Vice President for Strategic Project Development at SMS group, said: “Having successfully completed thorough technical due diligence, we believe in the compelling value proposition of Geomet’s Cinovec lithium/tin/tungsten project, which is set to become a cornerstone of the e-mobility driven European battery metals landscape. SMS group is delighted to deploy its second-to-none technology metals and materials production know-how and EPC capabilities into this exciting project.”

EMH Executive Chairman, Keith Coughlan, added: “SMS is the ideal engineering partner for the Cinovec project as it is based in neighbouring Germany with a globally-respected process design capability. The appointment of SMS is the culmination of a negotiation and due diligence process that has lasted over a year.

“EMH, Geomet and ČEZ have all been consistently impressed by SMS group’s capabilities and insights into the development of efficient high recovery plants capable of producing very high quality end-products. Successful delivery of the FEED study will provide a gateway to financing institutions and offtakers of the highest quality. We believe that the intended product and process guarantees will greatly enhance the project finance either directly through commercial lenders or through the recently announced collaborative agreement with EIT InnoEnergy.”

A 2019 prefeasibility study on Cinovec outlined a 1.68 Mt/y operation producing 25,267 t of battery-grade lithium hydroxide over a mine life of 21 years. This came with a capital cost of $482.6 million.

Aspen Tech and Wood to offer clients predictive, prescriptive maintenance solutions

Aspen Technology and Wood have announced a new partnership that will offer Wood’s clients Aspen Mtell® asset performance management (APM) technology for predictive and prescriptive maintenance.

The partnership will enable global enterprises to improve the performance of their manufacturing and facility assets through a maintenance solution built upon industrial artificial intelligence (AI) and machine learning, the companies said.

Aspen Mtell analyses historical and real-time operational and maintenance data to discover the precise failure signatures that precede asset degradation and breakdowns, predict future failures, and prescribe detailed actions to mitigate problems, they explained.

Wood has decades of experience providing solution-independent asset performance consulting, as well as integrating and deploying specialty engineering services and real-time performance monitoring systems, some of which has been mining-related.

“The combination of this deep domain expertise of asset and operator challenges, with AspenTech’s extensive knowledge of the process manufacturing industry and proven AI-driven predictive and prescriptive maintenance solutions, provides a unique customised asset performance management solution for operators’ needs,” the two companies said.

Prabu Parthasarathy, Vice President of Intelligent Operations at Wood, said: “Wood has an extensive understanding of the performance optimisation needs of our clients and realised a unique opportunity to provide a solution to help enhance asset productivity and identify potential issues well ahead of time.”

Darren Martin, CTO at Wood, added: “We are excited to bring AspenTech into our strategic partnership ecosystem to unlock innovative technology solutions to solve our clients’ challenges. Aspen Mtell is part of our connected operations and maintenance programs that will allow our clients to detect patterns in operating data, allowing them to take prescriptive action and avoid unplanned downtime. Together, our vision is to drive value through digital twins across the full asset lifecycle, working to optimise asset performance, monitoring, and control across any environment.”

Greg Mason, Senior Vice President and General Manager of APM, Aspen Technology, said the value of predictive and prescriptive maintenance represents much more than simply predicting failures on large rotating assets.

“Companies that are truly focused on eliminating safety and environmental incidents tied to machine failure, in addition to avoiding production losses, understand the need to have a comprehensive predictive maintenance culture throughout the entire plant,” he said. “This requires an analytics technology that is scalable, resources needed to deploy to scale, and the expertise to lead change management. I’m pleased to say that the partnership of AspenTech and Wood around the Aspen Mtell solution provide these three unique capabilities needed to bring contextualised AI for the process industries to scale.”

Worley out to help miners on their open pit to underground mining transition

As open-pit mines reach their economic end of life, mine owners are considering the viability of transitioning their open-pit operations to underground.

Drawing on its deep level mining expertise in South Africa, Worley helps mine owners around the world to explore the feasibility of underground life of mine extensions and identify the most efficient and safe underground mining methods.

Among the driving factors in the transition to underground mining are declining ore grades, deeper ore deposits, and an increase in demand for minerals required for the global energy transition, such as copper, lithium, manganese and nickel, Worley says.

“Worley’s centre of excellence for copper in Chile has been supporting open-pit copper mine customers for nearly three decades,” the company said. “The company is gearing up its underground capability as these mines shift their operations to below surface to access deeper ore reserves.”

Going deep in South Africa

Worley’s South Africa operations is one of the company’s mining centres of excellence with niche experience in deep level mining.

Mining has been the mainstay of South Africa’s economy for well over a century, and a major source of employment as well as foreign investment. Consequently, Worley has grown its South Africa mining team in one of the best mining environments in the world, with a collective experience of over 120 years in deep level mining and process expertise.

Robert Hull, Vice President for Mining, Minerals & Metals in Africa, says Worley’s South African operation is recognised for its deep level shaft experience, and the company also has experience across most commodities including base metals, coal, platinum, gold, diamonds and ferrous metals.

Hull says Worley has a strong global workshare philosophy and culture of collaboration. The specialist skills in South Africa gained from working on some of the biggest underground projects in the world are an integral part of Worley’s mining, minerals and metals global project delivery offering.

Deep level mine skills

Some of South Africa’s specialist deep underground skills include shaft design, ventilation and refrigeration shafts, high pressure pumping, and deep level hoisting.

Worley says it is one of the few companies in the world that has the expertise to design hoisting systems for mass hoisting, such as at the Venetia Underground Project, which will hoist approximately 6 Mt/y of rock.

The De Beers Venetia Mine in South Africa is the biggest source of rough diamonds in the country, according to Worley. The mine is in the process of transitioning from open pit to underground, to extend its life by some 25 years.

As engineering procurement and construction management contractor for South Africa’s largest mining execution project, Worley is using 3D designs for the project infrastructure to provide 3D models for the entire project’s surface and underground infrastructure, it said.

Intelligent mines

Hull says Worley is leading the way in developing digital solutions for the planning, design and execution of mining projects, with the South Africa office having played a key role in the design and development of much of the group’s digital technology in mining and minerals processing.

Hull (pictured) cites the Wafi-Golpu (owned by Harmony Gold Mining and Newcrest Mining) feasibility study update, in Papua New Guinea, where the South Africa team drew on SmartPlant design technology, which uses rapid prototyping and Building Information Modelling. The technology allowed the entire project team to visualise project objectives as never before, greatly improving operational efficiency in a dynamic time and cost-saving environment, according to Worley.

The Wafi-Golpu project is ranked as a world-class deposit in terms of its size and the grade of gold and copper within it. If developed, it will be the largest, deepest and most complex underground mine in Papua New Guinea, with a mine life of 28 years, Worley says.

Integrated project delivery teams

Worley’s South Africa team is also supporting its Australia counterparts to project manage the delivery of the deepening and expansion of an underground gold mine. This includes construction of a 1,460 m shaft, additional capacity in the processing plant, and supporting infrastructure to enable profitable recovery of ore at depth to 2 140m below surface. IM understands the project in question is the Newmont-owned Tanami Expansion 2 project, in the Northern Territory of Australia.

Mega machines for mega mines

Hull says every underground project Worley has executed has drawn on the company’s large material handling capabilities.

“In South Africa, we have a dedicated materials handling department that has the latest tools including discrete element modelling and finite element analysis, and advanced simulation tools for conveyer design,” he said.

Coenie Mynhardt, Winder Engineering at Worley, adds that mine payloads have increased dramatically in the last two decades in pursuit of higher productivity rates. Mines such as Impala and Phalaborwa, in South Africa, with an approximate 12-t per skipload, were considered ‘mega mines’ in their day. The mines of the future are more than double that size.

“The mega mines of the future need mega machines to be able to handle such big payloads,” Mynhardt says. “Materials handling technology for such deep, high tonnage operations will test current technology for capacity and reliability to bring the ore from the production levels to surface. We have the skills and expertise to find the solutions to these challenges.”

Global project delivery

“Countries such as Chile have immense potential for transitioning from open pit to underground if the geology supports it,” commented Hull. “With the wealth of experience across locations and over 4,000 staff in our mining, minerals and metals business line, we can safely and successfully deliver our customers’ underground mine assets through collaborative development of the mine and associated infrastructure anywhere in the world.”