Tag Archives: mining contractor

BGC considering sale of contract mining business

1st March 2019Base metals, Coal technology, Diamond mining, Energy minerals, Gem stone mining, Industrial minerals, Mining services, Precious metals, Steel and iron oreAustralia mining, BGC, BGC Contracting, contract mining, mining contractor, Neil HamiltonDaniel Gleeson

The BGC Pty Ltd Board has advised it is exploring options for the group’s national contract mining, maintenance and civil construction business, BGC Contracting.

BGC Chairman Neil Hamilton said the process will be led by its corporate advisor, Macquarie Capital, which, in conjunction with the group’s management, has commenced exploring several strategic options for BGC Contracting including a possible sale, divestment of parts of the business and/or alternate operating models or structures.

Hamilton said: “While this review is ongoing, it will be business as usual for our customers and our staff, and the focus of BGC Contracting will continue to be on delivering excellent services for our customers.”

Plans to divest BGC’s core building materials and construction businesses have been deferred for the foreseeable future, BGC said.

As part of this strategic review process, the BGC board has decided to introduce an independent executive structure for BGC, with the appointment of a CEO to manage the ongoing operations of the group, according to Hamilton.

This will see, with immediate effect, Alan Tate, Group CFO, assume the role of acting CEO, with Sam and Andrew Buckeridge and Julian Ambrose relinquishing their respective day-to-day executive responsibilities.

The board has also initiated a search for a permanent CEO and will announce this appointment in due course.

Just a week before this announcement, BGC Contracting announced it had recently been awarded the earthworks construction contract for Albemarle Group’s Kemerton lithium project.

Ausdrill transformation starts to take shape following Barminco buy

21st February 2019Mineral exploration, Mining equipment, Mining mergers and acquisitions, Mining servicesAusdrill, Australia, Barminco, drilling, M&A, Mark Norwell, mining contractorDaniel Gleeson

Less than four months after acquiring Barminco, Ausdrill says the integration of the two businesses is on target to deliver synergies of around A$11 million/y ($7.8 million/y) from its 2020 financial year.

This exceeds the previously stated target of A$5 million and is representative of both the new business structure Ausdrill has implemented and its growth strategy, the company said.

For the six months to end-December, Ausdrill said revenues were up 45.6% year-on-year to A$640.2 million, while underlying earnings before interest and taxes rose 27.6% to A$67.1 million. These results included two months contribution from the Barminco acquisition, which also included an additional 50% share in the two companies’ AUMS joint venture.

Ausdrill Managing Director, Mark Norwell, said the half-year results demonstrated the strength and diversity of the expanded Ausdrill group. “Importantly, the expanded Ausdrill group also secured over A$2 billion in new work since July 1, 2018, and successfully integrated the Barminco business, ensuring the company is set to deliver on its FY2019 guidance and is well positioned for FY2020.”

“Looking forward, we now have a more diverse and less capital-intensive group and have achieved this whilst maintaining a strong balance sheet that supports dividends and provides the flexibility to deliver on the strategy that has now been established.”

Ausdrill said the acquisition of Barminco made the company Australia’s second-largest mining services company.

Recently appointed Managing Director, Mark Norwell, said: “Ausdrill has done a great job in growing into a multi-national mining services company, but with the acquisition of Barminco and a refreshed structure, we have the opportunity to ensure the new Ausdrill has the best standards, a leading safety culture, and a constant focus on efficiencies to deliver for our customers, shareholders, communities and our 7,500 committed employees.

“In particular, a key focus is to transform our above ground operations in Africa, divest businesses that do not fit strategically, and ensure we are achieving best practice in the way we win and deliver work for clients across the group.

“We are also looking at ways to grow the business, such as expansion into new markets where we can have a competitive edge and into adjacent services that complement our existing portfolio.

“We expect to see continued strength in our core markets, particularly underground, and the Company remains on track to deliver its FY19 guidance of $98 million underlying net profit after tax.”

NRW books A$62 million of business with FMG for Eliwana rail project

18th February 2019Mineral project development, Mining equipment, Mining services, Steel and iron oreEliwana, Fortescue Metals Group, Iron ore, mining contractor, NRW, Western AustraliaDaniel Gleeson

NRW has been formally awarded the contract for Stage 1 earthworks, roadworks and drainage works of Fortescue Metals Group’s Eliwana Rail project in Western Australia.

The contract, which has a final value of around A$62 million ($44 million), follows the ASX-listed contractor being selected as the preferred contractor for these works at the end of last year.

The overall Eliwana mine and rail project is expected to cost $1.275 billion to build, and include 143 km of rail, a new 30 Mt/y ore processing facility (OPF) and infrastructure. Production is slated for December 2020 with a life of mine strip ratio of 1.1.

The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the mining company’s 2019 financial year.

MACA drafts up mining contract for Okvau gold project in Cambodia

30th January 2019Mineral project development, Mining equipment, Mining services, Precious metalsCambodia, Chris Tuckwell, Drill and blast, Emerald Resources, gold, load and haul, MACA, mining contractor, Morgan Hart, Okvau, Renaissance MineralsDaniel Gleeson

ASX-listed MACA has entered into a memorandum of understanding (MoU) with a subsidiary of Emerald Resources to supply equipment and contract mining services at the Okvau gold project in Cambodia.

The MoU with Renaissance Minerals is subject to a final investment decision to develop the project by the Emerald Resources Board of Directors, MACA noted. A draft mining contract between MACA and Emerald, agreeing on all material terms, conditions, schedules and rates, will be executed upon this decision.

MACA’s proposed scope of work under the mining contract includes load, haul, drill and blast utilising 100-t class dump trucks, with the initial term of the contract aligned to the current schedule of seven years with an option to extend. This equates to around $220 million in revenue, MACA said.

MACA Managing Director, Chris Tuckwell, said MACA will use the experience it gained in establishing both a foreign subsidiary and starting a new mine whilst working in Brazil over the last four years to Renaissance’s Cambodia project.

Emerald Resources’ Managing Director, Morgan Hart, said: “The board and management of Emerald have worked closely with the team at MACA over the past 20 years in a multitude of successful operations and are very pleased to continue the relationship on the Okvau gold mine development.”

On 1 May 2017, Renaissance announced the completion of the definitive feasibility study (DFS) on the development of a 2 Mt/y operation at Okvau. The DFS delivered an initial ore reserve of 14.3 Mt at 2 g/t Au for 907,000 oz of gold at an average all-in sustaining cost of $731/oz over an initial seven year life of mine.

Sedgman and CPB Contractors to prep plant for Pembroke’s Olive Downs coal project

4th January 2019Bulk handling, Coal technology, Mineral processing, Mineral project development, Mining equipment, Mining services, Steel and iron oreBowen Basin, CIMIC, coal, CPB Contractors, mining contractor, Olive Downs, Pembroke Resources, Queensland, SedgmanDaniel Gleeson

CIMIC Group companies Sedgman and CPB Contractors have been awarded a contract by Pembroke Resources at the Olive Downs coking coal project in central Queensland, Australia.

The contract is for design, procurement, construction and commissioning of the coal handling and preparation plant (CHPP), and will generate revenue to CIMIC Group of A$184 million ($130 million), the company said.

CIMIC said: “Mineral processing company Sedgman and construction company CPB Contractors will work together to deliver this end-to-end solution. Design and early procurement work will commence immediately.”

The CHPP developed by Sedgman, CPB and Pembroke will have sufficient capacity to process the first phase of annual production of up to 6 Mt of run of mine coal from Olive Downs, according to Pembroke. Fully developed, the project will have the capacity to produce up to 15 Mt/y of high-quality metallurgical coal.

Sedgman Managing Director Grant Fraser called Olive Downs an “exciting, long-term development in the Queensland Bowen Basin”, while CPB Contractors Managing Director Juan Santamaria said the project would draw on his company’s long experience in resources infrastructure and strong ongoing project involvement in regional Queensland.

Work is expected to be completed in 2020. The project has 813 Mt of resources, including 514 Mt of reserves.

UGL wins A$180 million maintenance contract at BMA coal operations

2nd January 2019Coal technology, Energy minerals, Equipment maintenance, Mine operation news, Mining equipment, Mining maintenance, Mining services, Power supply for mines, Steel and iron oreBHP, BHP Billiton Mitsubishi Alliance, CIMIC, mining contractor, UGLDaniel Gleeson

CIMIC Group company UGL has secured a new multi-year contract for maintenance and shutdown support services across BHP Billiton Mitsubishi Alliance (BMA) coal mines in the Bowen Basin of Queensland, Australia.

The demand-based contract will deliver revenue to UGL of approximately A$180 million ($126 million), CIMIC said.

Under the new contract UGL will deliver:

Coal Handling Preparation Plant (CHPP) maintenance and scheduled plant outage maintenance services, and;
Infrastructure maintenance services, including field equipment, remote fuel farms, sewerage and water treatment plants.

CIMIC Group Chief Executive Officer Michael Wright said: “This contract award signifies UGL’s position as a market leader in the delivery of maintenance and shutdown services and the strength of our capability in the Australian mining and services sectors.”

UGL Managing Director Jason Spears said: “We are proud of our long-standing partnership with BMA. This contract reflects our solid reputation for supporting the BMA operations teams through the safe delivery and performance of maintenance and shutdown services.”

Golding secures more Queensland coal work with Fitzroy

13th November 2018Coal technology, Mineral project development, Mining equipment, Mining services, Steel and iron oreBroadlea, coal, Fitzroy Australia Resources, Golding Contractors, Ironbark No 1, mining contractor, NRW HoldingsDaniel Gleeson

NRW Holdings subsidiary Golding Contractors has been awarded an early contractor involvement (ECI) contract by Fitzroy Australia Resources for the provision of project development services for the Ironbark No 1 coal mine in the Bowen Basin of Queensland.

The ECI scope is to provide detailed design, costing and project scheduling for the civil and mining services required to develop the mine.

The infrastructure associated with the ECI includes the bulk excavation and stabilisation of the box cut, installation of portals, haul roads, site access roads, dams and associated civil infrastructure.

It is anticipated construction will start in the June quarter of 2019 should Fitzroy proceed with Golding.

Ironbark No 1 (formerly known as the Ellensfield coal asset) is an advanced project situated around 30 km northeast of Moranbah and 125 km southwest of Mackay.

Fitzroy is currently finalising the feasibility and approval processes to enable the construction of an underground longwall coking coal mine. The company, earlier this month, received the mining lease for the project.

Golding’s contract award follows the successful completion of the 12-month Broadlea mining project for Fitzroy, which was awarded to the contractor in September 2017 and completed in October 2018.

NRW Holdings ready to blast at Greenbushes, South Flank

12th October 2018Mine operation news, Mining consumables, Mining equipment, Mining services, Steel and iron oreBHP, Blasting, Drill and blast, Iron ore, Lithium, mining contractor, NRW Holdings, Talison Lithium, Western AustraliaDaniel Gleeson

NRW Holdings Ltd’s Action Drill & Blast subsidiary has announced new contracts at two of the biggest development projects in Australia.

It has been awarded a 15-month extension by Talison Lithium for services at the Greenbushes mine, in Western Australia, which is currently in the process of going through an expansion to boost lithium carbonate equivalent production to more than 160,000 t/y.

The contract extension is for blasthole drilling, grade control and blasting services and builds on the relationship from 2011 when the original contract was awarded. The contract, which incorporates an increased scope of works, has an estimated value of A$13.5 million ($9.6 million), according to NRW.

The subsidiary has also been awarded a sub-contract for drill and blast services at the South Flank iron ore project, also in Western Australia, which is owned by BHP.

The contract is valued at some A$11 million and will have a duration of eight months, NRW said.

South Flank is a $3.6 billion development, involving construction of an 80 Mt/y crushing and screening plant, an overland conveyor system, stockyard and train loading facilities, procurement of new mining fleet and substantial mine development and pre-strip work. It is expected to result in first ore coming out from the new mine in 2021.

Ausdrill receives investor cash to complete Barminco takeover

10th September 2018Base metals, Energy minerals, Equipment maintenance, Mine shafts and equipment, Mineral project development, Mining equipment, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron oreAusdrill, Australia, Australia mining, Barminco, Ian Cochrane, mining contractorDaniel Gleeson

Ausdrill has been given strong investor backing for its proposed takeover of leading underground hard-rock mining contractor Barminco, with its retail shareholders providing it with A$77 million ($55 million) of cash as part of a planned A$250 million equity raise.

This amount, on top of a similar institutional investor share offer that raised A$175 million, means the company now has the money in its coffers to complete the deal.

When the proposed deal was announced on August 15, Ausdrill Executive Chairman Ian Cochrane said adding Barminco to the fold would “broaden our strategic footprint to be Australia’s clear #2 mining services company and set in place a balance sheet with the capacity to achieve sustainable and profitable growth”.

The bid valued Barminco’s equity at A$271.5 million, together with $425.5 million of net debt, implying an enterprise value of A$697 million. The two companies know each other well being joint venture partner in the African Underground Mining Services company.

Shareholders will get to officially sign off on the deal at Ausdrill’s AGM on October 25.

MCM acquires mining equipment at Uitkomst coal operation

3rd August 2018Bulk handling, Coal technology, Energy minerals, Mine operation news, Mineral processing, Mining equipment, Mining services, Steel and iron oreKhethekile Mining, MC Mining, mining contractor, UitkomstDaniel Gleeson

MC Mining is transitioning to owner-operator at its Uitkomst coal mine in KwaZulu Natal, South Africa, after agreeing to buy all of the mining equipment from former contractor, Khethekile Mining.

Under the terms of the R65 milion ($4.9 million) deal, MC Mining’s Uitkomst subsidiary will acquire Khethekile’s mining equipment, including conveyor systems and coal mining and transportation equipment, and take on some 340 Khethekile employees working at the mine and at Khethekile’s Newcastle offices.

Uitkomst, which MC Mining acquired in June 2017 as part of a R275 million deal with Pan African Resources, has a remaining mine life (including extensions) of approximately 16 years.

MC Mining said: “The insourcing of underground mining operations at Uitkomst is an opportunity to progress the overall performance at the colliery and facilitates the implementation of a number of initiatives, including enhanced control of production costs as well as improved asset availability leading to increased run-of-mine (ROM) coal production.”

The mine produces high-grade thermal export quality coal with metallurgical applications and consists of an existing underground coal mine (Uitkomst – South mine) and a planned life of mine extension into the northern area (Klipspruit – North mine).

The deal includes a cash consideration of R16.4 million and the assumption of the face value, as at August 1, of loans, trade payables and accrued expenses, together totalling R48.6 million.

The direct control of Uitkomst mining operations is expected to result in a steady increase in output, and the mine is expected to exceed production levels seen during the 2018 financial year to end June (505,130 ROM) during its next financial year.