Tag Archives: mine engineering

DRA Global and M3 Engineering on board Jervois ICO cobalt-copper project

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Jervois Mining says it has selected DRA Global and M3 Engineering as lead engineers for finalisation of a bankable feasibility study (BFS) for its 100%-owned ICO cobalt-copper project in Idaho, US.

The selection of engineers comes only two months after Jervois got its hands on the project following a completed merger with eCobalt.

Jervois said: “DRA and M3 have extensive study and construction experience across all the relevant unit operations for the ICO, providing a strong basis for successful BFS delivery. They were chosen due to their strong track record with relevant process plant studies as well as construction and operating implementation phases, as Jervois looks to move seamlessly into construction after BFS and project financing close.”

The joint engineering team has extensive global experience across both cobalt and copper mining operations and concentrator flowsheets, while also having a detailed understanding of project delivery in the US, specifically local conditions in Idaho and regional contractor capabilities, Jervois said.

Finalisation of the BFS will be based on a flotation mill processing 1,200 short tonnes per day (1,089 t/d) of ore, as well as ancillary facilities. The project will ultimately consist of an underground cobalt-copper mine, a flotation mill processing 1,200 st/d as well as ancillary facilities. The latter will include aspects such as the mine and related infrastructure, run of mine pad and crushers, fine ore conveyor and silo, mill and flotation, tailings, waste rock and water storage facilities, water treatment plant, soil stockpile area, National Pollutant Discharge Elimination System discharge outfall and non-process infrastructure to support the development and mine operations.

Jervois expects the BFS will be concluded in the March quarter of 2020 and summarised in a NI 43-101 compliant feasibility study soon after. The company has commenced a diamond core drilling program at ICO to supply metallurgical samples for test work to support the BFS update, and to infill drill the RAM deposit during initial years of envisaged mining operation.

ICO will initially produce and sell separate cobalt and copper concentrates as Jervois formed a view early in its due diligence of ICO that reversion to separate concentrates was commercially necessary in the absence of a US refinery. In comparison to the partially completed mine and mill, the refinery is at a preliminary level of study and technical certainty, and so cannot be realistically constructed within the same timeframe as mine to concentrate.

Jervois has commenced discussions with offtake partners for an initial period covering mine ramp up and stabilisation. Jervois will also commission a refinery engineering study to consider commercially proven technology to process concentrates, including third party feed through to refined cobalt and copper.

With the ICO BFS team now established, DRA and M3 will progress the engineering design for the process plant and infrastructure. In parallel, Jervois has commenced discussions with potential lenders and a data room is being prepared to facilitate due diligence. Upon project financing close and opening of the ICO mine portal and decline, Jervois expects a 12-month construction period with first saleable concentrate in the second half of 2021

Mkango gives SENET the leading role for Songwe Hill rare earths DFS

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Mkango Resources has appointed DRA Global’s SENET as Lead Engineer and Project Manager for completion of a feasibility study on the Songwe Hill rare earths project in Malawi.

SENET’s appointment is another key milestone for completion of the study, which is being funded by Mkango’s strategic partner Talaxis Ltd. A number of workstreams are underway, including mining studies, comminution, flotation, hydrometallurgical test work, and studies in relation to the environmental, social and health impact assessment.

Mkango says SENET has longstanding experience in project management and in providing detailed multidiscipline engineering, procurement, logistics management, and construction services to the mining, mineral processing, infrastructure and materials handling industries. It has carried out many studies for mining companies throughout Africa and boasts the largest and most advanced hydrometallurgical process engineering team on the continent, according to Mkango.

William Dawes, Chief Executive of Mkango, said: “The selection of SENET was measured against a range of criteria, and its technical capabilities and African experience were key factors in the decision. Mkango has the right financial and technical partnerships in place to enable development of Songwe into Africa’s leading producer of rare earths.”

The main exploration target in the 51% -held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated prefeasibility study for the project in November 2015, with a feasibility study currently underway, the initial phases of which included a 10,900 m drilling program and an updated mineral resource estimate. In March 2019, the company announced receipt of a £7 million ($8.7 million) investment from Talaxis to fund completion of the study.

M3 Engineering wins Camino Rojo oxide gold project EPCM

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Orla Mining says it has awarded the engineering, procurement and construction management (EPCM) contract for the Camino Rojo oxide gold project in Zacatecas State, Mexico, to M3 Engineering & Technology Corp.

M3, a full service EPCM firm headquartered in Tucson, Arizona, has provided services to over 10,000 projects for some 1,000 clients in its 33-year history, Orla says.

Work on the Camino Rojo project will be undertaken out of the M3 office in Hermosillo, Mexico, with senior review and support from the Tucson, Arizona office. The company will be responsible for detailed engineering, construction planning and execution, contractor management and cost control for the project under the auspices of Orla management.

Orla expects to begin engineering work by mid-September, yet the selection of M3 and commencement of any EPCM work is subject to entering into a definitive agreement.

Jason Simpson, President and Chief Executive Officer of Orla, said: “M3 has a wealth of engineering knowledge and with its extensive experience in Mexico, it is well suited to design and build the Camino Rojo project on time and on budget.

“We look forward to commencing detailed engineering work by mid-September as we work with M3 to build a high-quality project that begins to produce gold in mid-2021.”

The Camino Rojo oxide project consists of an 18,000 t/d heap-leach open pit operation. An estimated 44 Mt grading 0.73 g/t Au and 14.2 g/t Ag is expected to be processed during an almost seven-year mine life. Gold production is expected to average 97,000 oz/y at an estimated all-in sustaining cost of $576/oz of gold.

Orla has submitted the permit applications to SEMARNAT for the Manifesto de Impacto Ambiental (MIA) and the Change of Land Use (ETJ) permits at the end of August. The legislated timelines for the review of properly prepared MIA and ETJ applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently, according to Orla.

GR Engineering to take on Woodlark gold process plant in PNG

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GR Engineering Services looks like being rewarded for all of its hard work in Papua New Guinea (PNG) with the engineering, procurement and construction (EPC) contract for Geopacific Resources’ Woodlark gold project.

The ASX-listed mine developer says it has issued GR Engineering with an EPC letter of intent for the 2.4 Mt/y carbon in leach (CIL) process plant (modelled above), tailings line and other supporting infrastructure at the PNG project.

The final EPC contract is expected to be in the form of a guaranteed maximum price and will be signed following agreement of the final terms and conditions, Geopacific said.

“The company has selected an EPC contracting structure to de-risk the largest component of the capital expenditure requirement. Other remaining establishment capital costs also include site-based infrastructure and a mining fleet,” the company added.

In the meantime, Geopacific says it may instruct GR Engineering to commence an early works program to procure tenders and pre-order long lead time items such as the SAG and ball mills.

The processing plant will be constructed between the Kulumadau and Busai pits which are around 4 km apart. The project currently has 1 Moz in gold reserves, with significant upside from the 600 km² exploration licence, Geopacific said. The grade for the first five years is over 1.5 g/t Au with all-in sustaining costs estimated at A$866/oz ($586/oz).

GR Engineering is currently finishing off work on a crusher replacement project for Ok Tedi Mining in PNG.

Geopacific Managing Director, Ron Heeks, said: “GR Engineering has a strong reputation in successfully designing and constructing processing plants on time for a guaranteed maximum price. Geopacific is confident that their recent experience in PNG and strong track record in constructing similar projects will greatly de-risk the construction of Woodlark. We look forward to finalising the EPC contract, and advancing the development of Woodlark.”

GR Engineering Managing Director, Geoff Jones, said: “Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Woodlark, including by reference to its successful project outcomes in the turnkey design and construction of mineral processing plants in the gold sector.”

SNC-Lavalin’s Resources segment in line for reorganisation

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SNC-Lavalin Group says it is exiting lump-sum turnkey (LSTK) contracting and will reorganise its Resources (Oil & Gas and Mining & Metallurgy) and Infrastructure Construction segments into a separate business line following continued poor performance.

The company, which earlier this year stopped bidding on all future mining EPC projects, said it was also exploring all options for its Resources segment, particularly its Oil & Gas (O&G) business, including transition to a services-based business or divestiture. SNC-Lavalin’s Resources division reported negative EBIT of C$256.6 million ($195.4 million) in 2018.

“The decision to reorganise the company will allow SNC-Lavalin to focus on the high-performing and growth areas of the business, which will be reported under SNCL Engineering Services,” the company said, adding that it will fulfil the contractual obligations of its current LSTK projects and then be reorganised as SNCL Projects.

The reorganisation and exiting from LSTK contracting is the first step of the new strategic direction for the company that is focused on de-risking the business and generating more consistent earnings and cash flow, SNC-Lavalin said.

Ian L Edwards, Interim President and Chief Executive Officer, said: “LSTK projects have been the root cause of the company’s performance issues. By exiting such contracting and splitting it off from what is otherwise a healthy and robust business, we are tackling the problem at the source and, as a result, we expect to see a material improvement in the predictability and clarity of our results.

“Going forward, the reorganisation will allow us to focus on leveraging growth opportunities and end-to-end project management capabilities that we have in SNCL Engineering Services, delivering consistent earnings and cash flow, with a leaner capital structure, to our shareholders.”

In March, SNC-Lavalin confirmed a $260 million engineering, procurement and construction contract with Codelco at Chuquicamata, in Chile, had been cancelled following a dispute.

 

Primero gets the nod for process plant work at Core’s Finniss lithium project

Energy minerals, Mineral processing, Mining services, , , , , , , , , ,

Primero Group has been conditionally awarded a multi-year build-own operate (BOO) and operations and maintenance (O&M) contract with Core Lithium at the Finniss project, near Darwin in the Northern Territory of Australia.

In addition to this, Primero has also secured recent early contractor involvement (ECI) contract wins with Agrimin Ltd (Mackay sulphate of potash project) and Hazer Group (hydrogen commercial demo plant), both of which deliver strong follow-on potential for large-scale engineering procurement and construction (EPC) contract roles, the company says.

The agreement with Core, worth around A$100 million ($69.9 million) at Finniss, follows the company being named preferred EPC contractor status early this year. The contract also offers the opportunity for extension after the initial four-year term, Primero said.

Furthering Primero’s partnering contract model, the preferred contractor status has been extended to include conditional award of Primero’s first BOO contract for the crushing and screening circuit, the EPC and the complete O&M for the processing facility, Primero said.

Core’s development of Finniss is initially centred on production from the high-grade Grants deposit as an open-pit mining operation and construction of a 1 Mt/y dense media separation process plant to produce a 5% Li2O spodumene concentrate for export.

The prefeasibility study on the project envisaged a total capex of A$53.55 million and A$168 million in free cash generation over a period of 26 months based on a price of $649/t for its concentrate.

Primero Managing Director, Cameron Henry, said: “Primero is continuing to build a strong foundation and reputation for delivery. Current revenue run rates demonstrate our ability to concurrently manage growth and deliver on multiple projects, across various Australian and global jurisdictions. Our existing client relationships, and the repeat nature of large amounts of our business, provide a strong platform from which to drive and achieve our strategic goals.”

Mali Lithium enlists Lycopodium for Goulamina spodumene DFS

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Australia-listed Mali Lithium has appointed Lycopodium Minerals Pty Ltd to complete the definitive feasibility study (DFS) for the Goulamina lithium project, in Mali.

A July 2018 prefeasibility study on Goulamina outlined an open-pit hard rock mining operation with a 2 Mt/y concentrating plant. The project was scoped to produce 362,000 t/y of 6% Li2O spodumene concentrate over a 16-year mine life.

Mali Lithium, formerly Birimian, said Lycopodium was an obvious fit for Goulamina given the over 25 years of experience the company had with the development and execution of projects in Africa. “Lycopodium is a recognised leader in the delivery of mining projects with an exceptionally strong capability in the development of projects in West Africa,” the company added.

In Africa in the past two years alone, Lycopodium has designed, constructed and commissioned seven greenfield projects, and is also currently developing a further three process plants, according to Mali Lithium.

“Lycopodium’s appointment for this critical piece of project development work is testament to both the company’s commitment to, and the prospectivity of, the Goulamina lithium project,” Mali Lithium said, adding that its own in-house team will work closely with Lycopodium to develop the DFS.

Mali Lithium Managing Director, Chris Evans, said: “We are pleased to have secured a company of Lycopodium’s calibre, with a proven track record of delivering important pieces of work like the Goulamina DFS in a timely and efficient manner.

“We look forward to working closely with Lycopodium over the coming period and we are excited by what the outcomes of this DFS will be.”

GR Engineering back for Boss Resources Honeymoon uranium project DFS

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Boss Resources says it has appointed GR Engineering Services Limited (GRES) as the engineering and lead study consultant for its Honeymoon uranium project definitive feasibility study (DFS).

GRES will quickly ramp up the DFS work programs, due to the significant package of advanced technical work Boss has completed since it obtained the Honeymoon uranium project in South Australia from Uranium One (Australia) in December 2015 and, specifically, since the completion of the prefeasibility study in 2017, Boss said.

Honeymoon is a former-operating mine fully permitted to produce 3.2 MIb/y of uranium for export (one of only four mines in Australia). Based on previous studies, it is expected to require $58 million to ramp up output to 2 Mlb/y, according to Boss. It comes with a 63.3 MIb U3O8 JORC resource.

Work completed to date at Honeymoon includes:

  • A scoping study in 2016 for the recommissioning and expansion of the Honeymoon project;
  • Prefeasibility Study in 2017 that further refined the proposed strategy;
  • Field leach trial (FLT) that demonstrated Boss Resources’ improved leaching approach and validated its proposed ion exchange (IX) process;
  • Test work that optimised the process through improved resin elution and precipitation optionality
  • Trade-off studies that identified the preferred IX equipment (NIMCIX selected) and further optimised the flowsheet by simplifying the process steps;
  • An assessment of the drying and packing facility to provide upgrade options available to Boss to meet the planned production profile, and;
  • A preliminary assessment of the work required for the existing plant and infrastructure to meet operation requirements of Stage 1 production.

The DFS is due for completion in November 2019, according to Boss.

Boss Resources Managing Director, Duncan Craib, said: “GRES is a leading engineering and consultancy firm that has delivered multiple mining projects of significant size and scale, both domestically and overseas.”

The appointment continues Boss’ relationship with GRES, which completed the Honeymoon scoping study in September 2016 and the prefeasibility study in May 2017.

The scope for the DFS is based on two stages. Stage 1 includes re-commissioning of the existing SX facility and infrastructure including the various modifications required to improve performance, rectify problems identified during previous operations and make preparation for Stage 2 expansion.

Stage 2 includes supplementing the existing SX facility using a parallel IX process along with the expanded yellowcake drying and packaging capacity and modified raffinate/ground water treatment plant all to produce 2 Mlb/y of U3O8 equivalent.

The company said: “Boss will produce a combined DFS for the Stage 1 – Recommissioning, and Stage 2 – IX upgrade to achieve 2Mlb per annum U308. The DFS will improve on the work done in the prefeasibility study and deliver a Class 3 cost estimate with appropriate detail to achieve an accuracy of ±15%.”

The DFS will report on the design of the leach patterns for the wellfields and associated production scheduling based on these patterns and summarise the test work carried out to date, Boss added. It will also provide updated mineral resource and report on progress made against the updated permits.

The preliminary schedule for the DFS indicates wellfield design will be completed by the end of July, with ion exchange and uranium precipitation piloting due to be finalised by the end of August. Stage 1 reporting is due to be completed at the end of September, followed by Stage 2 at the end of October and the final report by mid-November.

SIMPEC banks more Western Australia work as order book continues to grow

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WestStar Industrial’s engineering contractor business, SIMPEC, has been awarded an additional A$2.5 million ($1.7 million) in scope extensions to its current contracts in Western Australia, bringing its total year-to-date order book to over A$50 million.

The SIMPEC team has grown substantially over the past 6 months and has deployed over 150 personnel and contractors now working across all of SIMPEC’s current contracts. This includes work for MSP Engineering (the Tianqi Lithium Kwinana processing plant) and Iluka Resources (for the Cataby mineral sands project), in addition to a contract with Fortescue Metals Group for its new Eliwana iron ore project.

SIMPEC Managing Director, Mark Dimasi, said: “SIMPEC is performing exceptionally well on site and the contract extensions are a good indication of this.”

With this award, the WestStar group has posted a year-to-date order total in excess of A$50 million.

The company said: “With major contract works underway or soon to commence, the company expects a strong start to the new financial year. SIMPEC continues to tender strongly for new work and expects outcomes from these tendering activities in due course.”

Stuart Olson to help construct Western Resources’ Milestone Phase I potash project

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Western Resources’ wholly owned subsidiary, Western Potash Corp, has entered into a lump-sum agreement with Stuart Olson Prairie Construction to become the General Contractor for the Milestone Phase I potash project, in Saskatchewan, Canada.

Stuart Olson is one of the largest and most respected construction services companies in Canada, according to Western Resources. “Their unique approach to doing business, as well as extensive construction and industrial services proved a perfect partner for the project,” the company said, adding that the company will be drawing a large proportion of its trades from the local area.

Milestone Phase I will be the newest and most innovative, environmentally friendly and capital efficient new potash mine in Canada, according to the company. The plan is to produce 146,000 t/y of potash over a 12-year period.

Using advanced drilling techniques, the project intends to initially target the high-grade potash bed, with selective dissolution preferentially leaching the potash to the surface. “This means that any salt is left underground and there is no tailings pile at the surface, thereby reducing the water consumption by half,” Western Resources explained. The potash is then crystalised naturally in a pond due to the temperature change, resulting in much lower energy consumption and a capital cost proportionally less than other solution mines, according to the company.

The project has already completed the early work to prepare the site including an access road, site clearing and piling foundations, water well, water pipeline and power infrastructure. The civil work of the crystallisation pond has also been completed, with the site now ready for the start of full construction with Stuart Olson.

Stuart Olson’s General Contractor scope will include the construction of all above ground facilities, including concrete, steel and pipework, installation of equipment, electrical and control system work, building work and site finishing. Its team will mobilise to the project site in June, with an anticipated maximum workforce of around 100 people on site.

“With their heritage in Western Canada and diverse experience, they have the skills, experience and resources to complete the project safely on budget and schedule,” Western Potash said.

Bill Xue, Chairman of Western Potash, said: “The management and Board of Directors are very excited to partner with Stuart Olson to build this innovative and efficient new mine in Saskatchewan. The project will benefit from the strength and experience of Stuart Olson, and we look forward to the next milestone, the start of production in mid-2020.”