Tag Archives: mine engineering

CIMIC eyes more coal work as Q1 financials hold up

Australia-based engineering-led group, CIMIC, posted “robust” operating profit margins in its March quarter results, remarking that the mining market is proving resilient throughout the turbulence caused by the fallout of the COVID-19 pandemic.

Revenue came in at A$3.3 billion ($2.1 billion) for the three-month period, slightly down on last year’s A$3.4 billion, while net profit after tax was A$166 million, compared with A$181.1 million in the March quarter of 2019.

Its operating profit margin was 8.4% for the period.

Throughout the quarter, the company said it had witnessed stable investment in capital expenditure to sustain mining operations. Its UGL subsidiary secured contracts to provide maintenance, shutdown and project services for clients in the mining sector, and its Thiess and Sedgman subsidiaries secured framework agreements with Rio Tinto Iron Ore, in Western Australia, and variations to operations contracts in New South Wales, respectively.

The future prospects for the company look good with, as at March 31, around A$90 billion of tenders relevant to CIMIC expected to be bid and/or awarded for the remainder of 2020, and around A$400 billion of projects coming to the market in 2021 and beyond, it said.

Some major projects the company is currently bidding on include the Lake Vermont mining extension contract in Queensland, Australia. CIMIC’s Thiess is currently working on this Jellinbah Group-owned coal asset through a schedule of rates contract that sees it carry out coal mining, clearing and grubbing, topsoil removal, drill and blast, overburden removal and rehabilitation of final landforms. It also provides all mobile plant and equipment and operates and maintains the client’s coal handling and preparation plant at the site, according to Thiess.

Another contract the company is eying up for more work is the Kaltim Prima Coal (KPC) mining extension in Indonesia. Again, Thiess has a schedule of rates contract in place at the 11 Mt/y Sangatta coal operation and the company hopes it can continue its relationship with the mine with a 2022 contract extension.

AGG looks to fast track Kobada gold project on SENET engineering outcomes

SENET has completed the engineering assessment on an expanded output scenario at African Gold Group’s Kobada gold project, in southern Mali, which suggests throughput could exceed the definitive feasibility study target of 100,000 oz/y.

The assessment outlines a 3 Mt/y run of mine feed combined with a gravity circuit and a carbon-in-leach (CIL) section at Kobada, which has a global resource base of over 2.2 Moz of gold, African Gold Group says.

The positive result of the metallurgical test work, which confirmed the potential for consistent gold recovery of 96% across all ore types, up from 80% previously, has allowed SENET, a subsidiary of DRA Global, to design a plant offering the flexibility to treat all ore types from the Kobada gold project, the company said.

“Incorporating experience at other West African operations, the plant is designed with ease of construction and operation as a priority,” African Gold Group said. “The simplified flowsheet (which minimises the requirement for expensive and long lead process equipment) is expected to also reduce the construction schedule to roughly 18 months from 22 months. Overall power consumption is expected to be low given the soft nature of the ore at Kobada.”

Danny Callow, Chief Operating Officer of the company, said: “Our flexible and robust oxide processing plant requires low power and uses proven technology able to treat our blend of saprolites and laterites. Our gravity and CIL process provides a 96% recovery of gold with low reagent consumption and low power requirement. All of these components contribute to a low all in sustaining cost and competitive capital cost.”

He added: “At current gold prices, we are keen to advance this project to construction as soon as possible.”

Some of the time saving mentioned by Callow is due to SENET having completed a significant amount of the detailed engineering on the Kobada process plant, as well as identifying international suppliers able to provide the capital equipment in the shortest possible timeframe, the company said.

Hugo Swart, Operations Director of SENET, said: “The positive results out of the test work program has allowed SENET to complete the front end engineering design for the entire plant. SENET has furthermore progressed large sections of the plant to a point of detailed engineering stage.

“The progress we have made in the last few months will no doubt allow African Gold Group to develop the project rapidly. We are also exceptionally pleased that we were able to complete this work on time and significantly under budget given the challenging circumstances of COVID-19.”

The update forms a major part of the DFS, which is expected to be delivered this quarter.

Mining the energy transition and digital transformation opportunities

The mining industry is often associated with massive pits either excavated into the ground or underneath the surface, writes Andrew Berryman, President – Mining, Minerals and Metals Services, Worley.

Concern about the environmental impact of extracting minerals has existed for some time and shows no sign of abating. Despite big strides in technology, according to the World Bank, over 11% of global energy consumption comes from the mining, minerals and metals value chain. Changing this demands a serious rethink of the way minerals and metals are processed and mined.

But the challenges do not end there. The scrutiny on mining is as broad as it is concentrated, picking apart everything from corporate stewardship to the commodity mix. Shareholders are demanding better returns on less capital with a smaller environmental footprint.

The winds of change have hit mining, but blustery conditions are not always a bad thing.

The energy transition

The temptation is to jump straight to the conclusion that the energy transition is an existential threat to an emissions-intensive industry. After all, meeting the goals of the Paris Agreement depends on retiring carbon-intensive activities, doesn’t it?

It does, however, impact the movement towards low emissions technologies, such as battery storage, electrification, microgrids, wind and solar power, the mining industry is required to provide the materials needed for this shift.

As we head down the electrification and energy storage path, a different mineral mix will be required.

Many minerals will be needed for applications in the energy transition that we cannot even foresee yet.

The minerals of the low emissions future include lithium, cobalt, iron ore, manganese, aluminium, nickel, lead and graphite. But the single most important mineral that will enable electrification and electron mobility is copper. This element is critical in low emission and electric vehicles, energy transmission and storage and renewable energy technologies that harness the sun and the wind.

So, we know which minerals we need. How do we access and process them responsibly?

Understanding that mining underpins the fate of the planet, we need to consider less energy intensive ways of extracting and processing these minerals. We also need to power the process with energy that comes from renewable sources.

Our customers have growing demand for our new energy expertise to establish affordable, reliable power to these mine sites with technology at the forefront of the power sector. Technology is the biggest enabler to make the energy transition a commercially viable pathway. It is also a key ingredient to developing remote regional areas that are adjacent to mining provinces.

Throw in the digital transformation

It is offering opportunities for the progressive thinkers and grey hairs for the hesitant. Like the energy transition, digital transformation will enable some companies to evolve into mining behemoths and others to inadvertently plot their own downfall through inaction.

In spite of positive statements about digital, investment hasn’t always backed up the excitement. It is the adage of: you don’t know what you don’t know. Plus, while it pays off in the long term, innovation is time-consuming and requires change, so quantifying investment cost is hard, and returns are slow.

The industry needs to see technology as the glue that joins all elements of the physical entity, the data, knowledge components and the people who envision, create, build, test and operate the facility. There is no other glue that can stick these things together and being integrated and working together is essential for success.

Technology is already at the stage where we can tap into a virtual world and use digital twinning to build and view an end result. New parts or facilities can be incorporated into the existing world to view, test and optimise the blend of components, as well as the processes and systems used to create and operate the facility. All this can be envisaged before even committing to the development of a project.

This technology can help the industry make better investment and operating decisions and improve process controls prior to Final Investment Decision (FID). This also means the probable outcomes of embracing technology, and predicting a balanced, safe, net-zero future, can be debated as part of the FID.

Once a facility is up and running, technology also enables you to monitor its operation, make informed decisions with real-time data and allow many tasks to be performed directly by the control system, improving its own performance over time with machine learning. The assessment speed and response time helps you to keep on track, adjust performance outputs and avoid failures, all of which can contribute to a safer, cleaner and greener outcome. But it needs to be incorporated in the design phase, requiring substantial collaboration with the end user.

When the two biggest forces collide

Where there is uncertainty, there is opportunity. Then multiply that as many times as you like, because when the energy transition and digital transformation are considered in the same breath, they will turn mining on its head.

The energy transition cannot happen at the speed we need it to unless we embrace better technologies to design and run mines. At the same time, the need to improve overall sustainability and the social licence to operate remains paramount.

These technologies can assist mining companies to assess, track, collate and present the complex mix of elements that contribute to any sort of environmental or energy goal. Knowing what you have achieved is almost as powerful as achieving it. In a world where knowledge is king, a data-centric solution is key to making the right decisions towards achieving a net-zero impact.

If we can use technology to better analyse orebodies with greater accuracy, it is going to minimise the removal, transport or processing of unusable or low-grade ore, which in turn provides consistency of grade for processing. That means we can run fewer diesel trucks and consistently improve the grade of what we are supplying to the market, resulting in energy savings, potential process improvements and the overall reduction of the carbon footprint.

The opportunities for technological advances in a mining setting are endless. We can now use virtual reality for site training, 3D printing for spare parts manufacturing, predictive analytics platforms to manage safety and conduct aerial inspections of mine sites using drones. These are just some examples of digital mining processes enabling us to optimise mine operations.

This equates to increased safety, productivity and less carbon emissions, and assists the sector to do its bit in reaching the targets of the Paris Agreement and decarbonise the mining process.

Technology is the single biggest enabler of any kind of future that embraces the energy transition.

Mining techniques need to go through a revolution very quickly, but it is heartening to see the early stages of that today. We may look back at what we are doing now as baby steps, but right now, they are quantum leaps.

DRA Global wins Lola graphite project EPCM contract

SRG Mining has selected DRA Global as the provider of engineering, procurement and construction management (EPCM) services for its Lola graphite project in Guinea.

This selection is the result of a competitive tender process where several international engineering firms were invited and responded with qualifying and attractive proposals, SRG Mining said.

Over the past three years, DRA has assisted SRG with the evaluation of the Lola graphite project, having been involved from the preliminary economic assessment (PEA) stage to the most recent feasibility study. This latter study outlined a project costing $88.5 million to build and producing 54,600 t of graphite flakes over a 29-year mine life.

DRA and its subsidiaries such as SENET have a long and successful history of delivering resources projects in Africa, most recently being involved in the construction of Alufer’s Bel Air bauxite project and Managem’s Tri-K gold project, both in Guinea, SRG Mining said.

“This historic knowledge and experience, combined with expertise of the latest processing technology, enable DRA to successfully design and execute mining and minerals processing projects, particularly in West Africa,” the company added.

The engineering phase of the project will be carried out through the DRA offices in Montreal and Toronto and the site-based execution will be led by DRA’s subsidiary SENET.

Ugo Landry-Tolszczuk, President and Chief Operating Officer of SRG, said: “Our tender process cemented our belief that DRA is the best partner for SRG to successfully complete the design and construct our Lola graphite project.”

Andrew Naude, CEO of DRA Global, said: “Awarding the execution of this internationally important graphite project on the African Continent to DRA is testament to DRA’s position as the preferred technical partner for projects of this nature. It reinforces DRA’s position as the preferred partner for the delivering of projects on the Continent.

“DRA has put together a very strong team for the EPCM of the project all of whom carry industry leading experience in delivering successfully on projects, in Africa.”

Micon to complete South West PEA at Moneta’s Golden Highway project

Moneta Porcupine Mines has contracted Micon International to complete a preliminary economic assessment (PEA) on the South West deposit within its Golden Highway project, in Ontario, Canada.

The results of the PEA are due to be delivered later in 2020, with the study set to review several development scenarios for the deposit, the company said.

The South West deposit was recently the subject of a resource update, which resulted in a 58% increase in indicated resources to 472,000 oz within 3.24 Mt at a grade of 4.53 g/t Au, and a 40% increase in inferred resources to 1.06 Moz within 7.3 Mt at 4.37 g/t Au. This assumed underground extraction using a 3 g/t Au cutoff grade.

The company recently completed its 2019/2020 winter drill program early at Golden Highway in order to maintain a healthy and safe work environment for its employees and contractors, in support of efforts to stop the spread of the COVID-19 coronavirus. A total of 36 holes will have been completed, it said.

Drilling was scheduled to be completed by mid-April and has been successful in testing the resource extensions of the Windjammer South, West Block and 55 deposits as well as intersecting new mineralisation at the Westaway and Halfway targets, according to the company. The core will now be processed in isolation and the results will be released as they become available, Moneta said.

The data and assays from this program will be used for new resource updates for Windjammer South, South West and 55 deposits, plus an initial mineral resource estimate at Westaway.

Gary O’Connor, CEO and Chief Geologist, said: “We will continue the new resource expansion work, however at a slightly slower pace due to the physical distancing of employees.”

The Golden Highway project covers 12 km of prospective ground along the Destor-Porcupine Fault Zone in the Timmins Gold Camp, of which 4 km hosts the current NI 43-101 mineral resource.

Weba’s custom-designed chutes find favour in Africa

Weba Chute Systems’ Wade Vandenberg says mines across Africa are recognising the value of the company’s custom-designed chutes in controlling material flow, extending wear life and reducing maintenance downtime.

The South Africa-based company’s transfer point solutions have made their way into mines across Africa, from platinum to diamond operations, to gold, coal and copper mines.

In addition to mining hotspots including Ghana, Mali, the Democratic Republic of the Congo, Zambia, Zimbabwe and Botswana, Weba Chute Systems have been installed in countries like Tanzania, Mauritania and Eritrea, it says. Authorised Weba Chute Systems agents are deployed to support customers in key countries, while technical experts from the company’s head office in Germiston, Gauteng, South Africa, are on call to assist.

Vandenberg, Weba Chute Systems’ Technical Advisor, Africa, said: “Not only do these operations gain the benefits of controlled material flow in their operations, but they experience, first-hand, how our engineering design extends wear life and reduces maintenance downtime.”

He highlighted that better dust control – a key part of health and safety policies in the mining sector – is another important benefit Weba chutes bring to an operation.

“Our state-of-the-art digital engineering design facilities and expertise makes use of the latest technologies to simulate the specific material flow conditions in each customer’s application,” Vandenberg said. “This allows us to apply our philosophy that no two chute designs are identical, and to scientifically accommodate exact flow characteristics into our design.”

Discrete element modelling allows close control over the flow of material through the chute. This minimises turbulence, reducing the levels of dust created in the working area. It also cuts spillage levels, which, in turn, means a saving of valuable material and less time spent on cleaning activities.

Izak Potgieter, Systems Manager at Weba Chute Systems, said: “We work towards the ISO dust management standards, supporting our customers in managing health and safety in this critical area of transfer points. Our testing measures dust down to 0.03 micron particles, to make sure that our designs meet stringent health-related targets.”

Flow control also creates more material-on-material movement to reduce wear on chute liners, according to Weba. This ensures longer liner life when compared with that of conventional chutes. Custom design and use of simulation technology allow for the wear life to be carefully predicted, based on operating conditions, the company says.

Vandenberg said: “Our technical expertise and solutions-oriented approach mean that customers can always rely on us. When we commission one of our chutes, it is part of an ongoing productivity journey with our customer, no matter where they are located.”

Dargues gold mine on the road to production: DRA Global

DRA Global says it is in the final stages of the implementation of the engineering procurement and construction (EPC) of the gold concentrate plant for Diversified Minerals’ Dargues gold project, in New South Wales, Australia.

The engineering company was awarded the EPC contract back in January 2019 after detailed design for the project commenced in March 2018. At this point, first ore was expected to be processed in early 2020.

As of March 2020, the plant construction and wet commissioning has been completed, DRA said. Hot commissioning is planned to take place soon and expected to be completed in early April. After this, the DRA team will hand over the 330,000 t/y plant to the client’s operations team, it said.

Dargues, owned by Diversified Minerals, an associated company of PYBAR Mining Services, was previously expected to have a 355,000 t/y capacity gold processing facility comprising crushing, milling, flotation and filtration circuits to produce a sulphide concentrate for export. This could see Dargues produce an average of 50,000 oz/y of gold in the first six years of production.

The mine, which will be operated by PYBAR, is also set to incorporate tele-remote loading. In December, Diversified Minerals took delivery of a second new Cat R1700 underground LHD following commissioning of the first loader during August.

The new machines are equipped with Caterpillar’s next generation Command for Underground technology, giving them automation capabilities that will allow them to be driven via tele-remote from the surface from early-2020. This will realise significant productivity, efficiency and safety gains, according to PYBAR.

Members of the Austmine Board were recently invited to a tour of the Dargues gold mine (pictured).

SNC-Lavalin delivering on new strategy with Rochester POA11 project win

SNC-Lavalin says it has been awarded a contract to provide engineering, procurement and overall project management services for the Rochester POA11 project in Nevada, USA, by Coeur Rochester Inc, a wholly-owned subsidiary of Coeur Mining.

This phase of the project is estimated to be complete by October 2020, according to the company.

The project is anticipated to include a 20 Mt/y crushing plant, including a primary and secondary crushing circuit as well as a high pressure grinding roll circuit, a 13,750 gpm (52,049 litres per minute) Merrill-Crowe process plant, a new substation with power distribution and new heap leach pad.

Since approval of the initial plan of operation in 1986, the Rochester Mine has undergone periodic mine plan amendments to support mine development projects and continued operations. The mine plan amendment (termed Plan of Operations Amendment Number 11, or simply ‘POA 11’) proposes another mine life extension, which would maintain the current workforce and operate the mine at full production until 2033, SNC-Lavalin said. Coeur says it expects to produce 27,000-33,000 oz of gold and 4-5.5 Moz of silver in 2020.

The Rochester POA11 project is located 160 km northeast of Reno near Lovelock, Nevada. The Rochester mine is an open-pit operation that produces silver and gold. Mining methods include typical open-pit techniques where ore and waste rock are drilled, blasted, crushed, loaded and hauled to either leach pads (ore) or rock disposal sites.

This mining and metallurgy contract win is aligned with the company’s new strategy moving forward towards engineering services and greater growth, SNC-Lavalin said.

The Montreal-based company will provide overall project management services and integrate the engineering performed by various service providers under one set of specifications, procurement policies, standards, systems and procedures, it said. Services will be provided out of its offices in Toronto, Canada, with local support from the Reno, Nevada, branch. This mandate will include additional support such as public consultations, community engagement and working with the local community to address any impacts on the public, housing and accommodations during the project period.

César Inostroza, Senior Vice-President, Mining & Metallurgy, SNC-Lavalin, said: “As a first project with Coeur Mining, we look forward to building a long-term relationship and supporting our client to develop their silver and gold mine in Nevada.

“This mandate is well aligned with our services-based strategy for mining and metallurgy projects. This is one of multiple mining projects we have recently been awarded in the US market, and we see great potential in expanding our capabilities in the region. We look forward to contributing to our client’s project success through our extensive technical and project experience.”

GR Engineering awarded with Abra EPC contract

GR Engineering Services has been awarded a conditional engineering, procurement and construction (EPC) contract to deliver a 1.2 Mt/y lead sulphide flotation process plant and ancillary infrastructure for Galena Mining’s Abra Base Metals project in Western Australia.

The award, worth some A$74 million ($50 million), follows work carried out by the ASX-listed engineering company on the feasibility study and at the preliminary design stage of Abra.

The work will be undertaken on a guaranteed maximum price basis, according to GR Engineering, which confirmed that the contract remained subject to GR Engineering being issued with a full notice to proceed. This is dependent on Abra Mining Pty, Galena’s operating subsidiary, achieving financial close on its proposed project financing facilities. Galena, which owns 86.16% of the project through Abra, has said it will require A$170 million of pre-development capex to get the mine up and running.

GR Engineering has already commenced early engineering works up to an agreed capped amount, it said.

Geoff Jones, Managing Director of GR Engineering, said: “We are pleased to have been awarded the contract for the delivery of the Abra Base Metals project, which has followed GR Engineering’s involvement to date in the project’s feasibility study and preliminary design work.”

Galena completed a definitive feasibility study on Abra last year for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

Earlier this month, the construction of the Abra box cut commenced (pictured).

Black Rock Mining recruits China Railway Seventh for Mahenge graphite build

Black Rock Mining says it has signed an agreement with China Railway Seventh Group Co Ltd (CRSG) that could see the major Chinese infrastructure contractor help build the Mahenge graphite project in Tanzania.

The project is envisaged as a graphite development that would gradually ramp up to its ultimate 340,000 t/y capacity through the addition of four production modules. In order to reach the start-up module one rate of 85,000 t/y, the company forecasted an initial capital requirement of $116 million. First production is targeted in 2020 or 2021 depending on financing.

This is not Black Rock’s first Chinese agreement for Mahenge. In September 2018, it signed a strategic cooperation agreement with Yantai Jinyuan Mining Machinery Ltd, part of the larger Yantai Jinyuan Group, that committed both parties to work together with a view to Yantai supplying process plant machinery and related infrastructure for Mahenge.

Black Rock says CRSG is part of a large contractor group with significant operations and experience in Africa. CRSG’s parent company, China Railway Group, is a state-owned enterprise and among the largest construction businesses globally.

The non-binding cooperation framework agreement (CFA) outlines the key terms under which Black Rock and CSRG plan to progress to execution of a binding engineering, procurement and construction (EPC) contract for the module one process plant and non-process infrastructure at Mahenge. It provides for a coordinated EPC approach between CRSG and Yantai, Black Rock’s existing strategic build partner.

It also provides for the development of a conventional EPC arrangement containing customary performance warranties and typical risk allocation structures (guarantees, bonding) required by project financiers, Black Rock said.

Key agreed terms include a staged approach to the development of a final EPC contact price and a deferred, performance-based payment structure. This deferred payment structure results in over 30% of the total EPC contract value being payable only after completion of final plant performance tests to requisite levels, it said.

Black Rock Managing Director and CEO, John de Vries, said: “This framework agreement is a big step forward for Black Rock and our Mahenge graphite project. To have Black Rock aligned with a project execution partner as large, established, Africa-proven and financially robust as China Railway Seventh is materially significant. Our discussions have been highly collaborative to this point, as reflected directly in the specific framework agreement terms.

“In short, the agreement delivers us greater certainty on our project execution. It has been deliberately structured to deliver a final EPC contract that maximises both partner alignment and appeal to potential project financiers.”

According to de Vries, CRSG and Yantai have also agreed to provide assistance in relation to Mahenge project financing, including any related financing based on Chinese content.

He concluded: “We now look forward to advancing rapidly with CRSG and Yantai towards a final EPC contract for development of the world-class Mahenge graphite project.”

Black Rock and CRSG/Yantai are now targeting the execution of a binding term sheet by March 31, 2020.