Tag Archives: mining contractor

Sedgman secures $310 million contracts for Boikarabelo coal mine works

Bulk handling, Coal technology, Energy minerals, Equipment maintenance, Mineral commodities, Mineral processing, Mineral project development, Mining equipment, Mining project news, Mining services, ,

Resource Generation Ltd subsidiary Ledjadja Coal has signed three separate EPC agreements with CIMIC Group subsidiary Sedgman that will see the contractor carry out major work at the Boikarabelo coal mine in Limpopo Province, South Africa.

The three contracts cover design, procurement, construction, commissioning, operations and maintenance of the operation’s coal handling preparation plant (CHPP), plus the ancillary works relating to mine infrastructure.

The CHPP will be designed to handle 15 million tonnes of raw coal per year and, under the provisions of the operations and maintenance contract, Sedgman will operate and maintain the plant for four years after commissioning, “subject to strict performance criteria”, ResGen said.

The ancillary works is likely to involve construction of infrastructure associated with the CHPP, plus additional buildings, piping, electrical works, water and drainage during mine development.

Some 15 Mt of run of mine coal will be mined every year at Boikarabelo, but the company expects to produce 3.6 Mt/y of export product (25.7 MJ per kg on an air dried basis) and 2.4 Mt/y of domestic product (19.5 MJ/kg on an air dried basis).

Boikarabelo, in the Waterberg region of Limpopo, has 995 Mt of JORC resources and 267 Mt of JORC reserves. The mine requires a rail link to allow for exports, which is expected to cost R650 million ($49 million) in upfront capital, plus another R300 million during its ramp-up.

The value of the engineering design, construction and commissioning of the CHPP plant and the construction of the ancillary works infrastructure contracts is $210 million, while the operations and maintenance contract is valued at $100 million.

Grant Fraser, Sedgman Managing Director, said: “We are pleased to be able to deliver our whole-of-life approach to this important project – building the processing plant and providing ongoing operational involvement for Resource Generation, and its South African subsidiary Ledjadja Coal.

Papi Molotsane, Acting CEO of Ledjadja Coal, said Sedgman’s successful delivery of coal projects in southern Africa and the ability to wrap the contracts into lump-sum solutions were key to the contractor winning the work.

Work is expected to commence once the Boikarabelo project funding has been finalised, with debt providers currently in the final process of credit approvals, CIMIC said.

Murray & Roberts scores R4 billion of new mining projects

Base metals, Comminution of minerals, Mine operation news, Mineral commodities, Mineral project development, Mining services, Steel and iron ore,

South Africa-based Murray & Roberts has recently been awarded R4 billion of new projects across Australasia and Mongolia.

The company’s oil and gas platform will work on a metals and minerals project in Australasia, while the same division will team up the underground mining platform to undertake the development of a copper mine in Mongolia.

Murray & Roberts said on these awards: “In the context of a constrained oil and gas market over the past four years, emphasis has been placed on complementary growth markets such as Australasia’s metals and minerals and infrastructure sectors, previously well serviced by the oil and gas platform.

“These project awards are a demonstration of the platform’s ability to secure project opportunities in complementary markets.”

Back in May, Murray & Roberts announced plans to take over South Africa’s Aveng Mining.

NRW Holdings receives BHP South Flank iron ore contract

Mine operation news, Mineral project development, Mining consumables, Mining services, Steel and iron ore,

NRW Holdings has been given a A$176 million gig to carry out bulk earthworks and concrete works at BHP’s South Flank Precinct iron ore project in Western Australia.

The project includes bulk earthworks and concrete for the overland conveyor and primary crushers, together with non-process infrastructure. It also includes bulk earthworks on access tracks, clearing, pads and diversion drains. NRW expects to place around 14,000m³ of concrete as part of the contract.

Since BHP approved development of the US$3.4 billion project last month, there has been a spate of contract awards. CIMIC’s CPB won the first major contract, which was swiftly followed by SIMPEC being awarded work on the ore handling plant area. Clough was awarded the EPC contract in May.

NRW’s contract is due to run for 15 months from September. At its peak, it will require over 350 workers on site, with plant and equipment sourced from both its internal fleet and a range of hire firms.

Jules Pemberton, NRW CEO and Managing Director, said: “The award of this contract is particularly pleasing given the long standing association of NRW and BHP on resource projects, and recognises NRW’s experience and capability in delivering projects in the Pilbara.”

He added that the contract would also provide opportunities for employment and procurement from Traditional Owners and local businesses in the area.

South Flank is some 120 km northwest of Newman in the Pilbara and is owned 85% by BHP and 15% by ITOCHU Minerals and Energy of Australia and Mitsui Iron Ore Corp.

The project is due to expand the existing infrastructure at BHP’s majority-owned Mining Area C, and involves construction of an 80 million tonne per year 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. The mine will replace the 80 Mt/y Yandi operation which is reaching the end of its economic life.