Tag Archives: mining EPC

GR Engineering receives LoI for EPC process plant build at K92’s Kainantu gold mine

25th July 2023Mine operation news, Mineral project development, Mining equipment, Mining services, Precious metalsball mill, CITIC HIC Australia, EPC contracting, GR Engineering Services, Jord International, K92 Mining, Kainantu, Metso, mining EPC, PNG, SAG millDaniel Gleeson

GR Engineering Services has received a Letter of Intent from K92 Mining Ltd, a subsidiary of TSX-listed K92 Mining Inc, for the engineering, procurement and construction (EPC) works associated with a 1.2 Mt/y process plant at the Kainantu gold mine in Papua New Guinea.

K92 Mining owns and operates Kainantu, a producing gold mine that has existing infrastructure at site. The EPC works are being performed as part of K92 Mining’s Stage 3 Expansion plans.

K92 Mining has successfully executed multiple expansions at the Kainantu Gold Mine, after restarting operations at the site in 2016.

In addition to the award of the contract, all process plant long-lead item contracts have already been awarded on a fixed price (excluding freight), to CITIC HIC Australia Pty Ltd for the SAG and ball mills, Jord International Pty Ltd for the filter press and Metso for the tank flotation cells, flash flotation cells and high-rate thickeners, K92 says.

The contract sum for the EPC contract is $81 million, with GR Engineering having commenced engineering works on an agreed scope and cost basis. The contract is expected to be finalised by the end of August 2023.

Tony Patrizi, Managing Director, said: “GR Engineering is a leading gold EPC contractor and has previous experience on PNG projects through our Brisbane office. We are looking forward to assisting K92 Mining achieve their expansion plans and to delivering a safe outcome for the project.”

K92 says commissioning of the 1.2 Mt/y Stage 3 Expansion process plant is targeting the end of the March quarter of 2025.

MACA to refurbish Three Mile Hill processing plat at Focus’ Coolgardie gold project

21st November 2022Comminution of minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, Precious metalsBen Thomas, Coolgardie, EPC, Focus Minerals, MACA Interquip, mining EPC, Three Mile Hill, Western AustraliaDaniel Gleeson

MACA Interquip has been awarded a A$39.7 million ($26.3 million) engineering, procurement and construction (EPC) contract for the refurbishment of the Three Mile Hill (TMH) processing plant at the Coolgardie gold project, in Western Australia.

Focus Minerals, the owner of the project, paused production in 2013 in response to lower gold prices to concentrate on the exploration of the wider Coolgardie area, yet, with operations now resuming, MACA Interquip is scheduled to reach commissioning of the refurbished plant by mid-2023.

MACA General Manager, Ben Thomas, said the MACA Interquip team have begun site works with the construction team ramping up throughout November. “The TMH plant will be refurbished to safely operate at its original nameplate of 120,000 tonnes per annum. We look forward to delivering value for our client, Focus Minerals.”

Focus issued a new life of mine plan for the Coolgardie gold project, in October, outlining a plan to produce 402,000 oz of gold over a seven-year mine life.

NFC China, ERG agree on EPC contract to construct ‘special coke plant’ at JSC Shubarkol Komir

16th September 2021Coal technology, Environmental, Metallurgy, Mineral processing, Mining equipment, Mining services, Sustainable miningChina Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd., ERG, Eurasian Resources Group, ferrochrome, JSC Shubarkol Komir, Kazakhstan, mining EPC, NFC ChinaDaniel Gleeson

Eurasian Resources Group (ERG) and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd. (NFC China) have signed an engineering, procurement and construction (EPC) contract to construct a “special coke plant” at JSC Shubarkol Komir in Kazakhstan’s Karaganda Region.

The new 400,000 t/y plant will produce a reducing agent that is key to the production of ferroalloys, ERG says.

Under the ЕРС contract, the plant will be constructed on a turnkey basis and is scheduled to be put into operation in 2023. Investments in the project will total about KZT40 billion ($94 million).

Ruslan Mulyukbayev, CEO of ERG Capital Projects, the company responsible for developing and implementing large-scale investment projects in Kazakhstan, said: “The new plant will enable JSC Shubarkol Komir to manufacture a high value-added product and cut the imports of reducing agents significantly. In addition, it should help increase local content in ferrochrome production and meet ERG’s needs by supplying a domestically manufactured product. The plant will use state-of-the-art technological solutions and automation that are fully compliant with all national standards. We plan to create 120 new jobs.”

Qin Junman, President of NFC, said: “The signing of the EPC contract marks another milestone in the long-term cooperation between NFC and ERG. I am fully confident that, with our good track record of successful implementation of a number world-class projects in Kazakhstan, including ERG’s state-of-the-art Aluminium Smelter project, we will be able to deliver another exemplary project of Sino-Kazakh cooperation within schedule, with good quality and with international HSE standard.”

In addition to 400,000 t of special coke, the new plant will produce more than 70,000 t/y of coal tar and oil from Shubarkol Komir’s coal. ERG is also exploring the possibility of exporting these products.

The new enterprise will use technological solutions to enable safe and environmentally friendly production, as well as to increase electricity, heat and water conservation, ERG says. Its ventilation system will be equipped with air purifiers. All water used in the production process, as well as the contaminated wastewater, will be treated and supplied to the water recycling system.

JSC Shubarkol Komir is already home to a special coke plant with a capacity of over 200,000 t/y that was built and put into operation in 2005. The company has implemented a project to equip the plant with the newest, most efficient system for tar removal from coke oven gas, a process which involves five-stages of treatment.

NioCorp extends Cementation Americas’ stay at Elk Creek project

23rd February 2021Energy minerals, Mineral project development, Mining services, Steel and iron oreCementation Americas, Elk Creek, mine engineering, mining EPC, NioCorpDaniel Gleeson

NioCorp Developments says it has signed a contract with Cementation USA, part of the Cementation Americas group, to continue advancing detailed engineering work associated with the Elk Creek Superalloy Materials project in Nebraska, USA.

Under the contract, the underground mine contracting and engineering company will conduct an evaluation of the current design for the project’s underground mine and prepare a detailed cost estimate for the final detailed engineering that would be required to bring the mine design to “Issued for Construction” status, NioCorp said.

As previously announced, NioCorp selected Cementation as the lead engineering, procurement and construction contractor for the underground aspects of the project. The company expects to engage Cementation, if and when additional project financing becomes available, to undertake Phase 2 of the contract, which involves completion of the detailed engineering for the mine.

An April 2019 feasibility study on Elk Creek estimated average production of 7,220 t/y of ferroniobium, 95 t/y tpa of scandium trioxide and 11,642 t/y of titanium dioxide over the 36-year mine life.

Mining EPC/EPCM space in transition mode, Ausenco’s Ebbett says

22nd November 2019Automation, Mineral project development, Mining equipment, Mining services, Power supply for mines, Sustainable miningAusenco, automation, cobalt, copper, digital twins, Electrification, gold, John Ebbert, Lithium, mine electrification, mining EPC, mining EPCM, project deliveryDaniel Gleeson

The past 12 months has been an interesting period for the mining EPC/EPCM space with miners looking to offload more risk and leverage new technology to improve design accuracy, reduce cost and shorten the time between construction and production.

Ahead of the annual focus on this sector, to be published in International Mining’s December issue, IM heard from Ausenco’s Vice President of Global Project Delivery, John Ebbert, on the recent trends affecting the project design, construction and delivery market.

IM: In the past 12 months, how has the market for mining EPCM contracts evolved? Do some of the big contract awards to the likes of WorleyParsons (Koodaideri), Bechtel (QBII) indicate a shift in the type of contracts/services some of the big projects/companies are now looking for?

JE: These large project awards are in line with increased mining investment. The market is moving towards a greater level of integration between owners and EPCM service providers with a focus on minimising risks typically associated with mega projects. This is not only the case in the mining sector; we are seeing similar trends in other sectors. This shift reflects the capacity of each contracting party to accept risk. During periods of reduced activity, contractors need to accept greater risk (EPC) to protect their revenue and margins. Conversely in periods of greater project activity, contractors are able to realise similar margins on a risk-free basis (EPCM).

IM: Over the same time period, has automation become more firmly entrenched in mine engineering plans? Are big open-pit mines now being designed to facilitate autonomous equipment or a combination of manned and autonomous equipment?

JE: Automation is considered at all stages of project development. The productivity and efficiency gains afforded by automation and digitisation help de-risk or improve return on investment, something owners always aim to achieve. The level and application of automation ranges from simply reducing dependency on operators, through to the creation of digital twins that support asset optimisation using advanced analysis techniques. Not only are we designing mines that support and enable automation, we are also designing to enable advanced data and analytics processes.

IM: For underground mine design, how has the evolution of mine electrification influenced design? Is the use of this equipment enabling mines to go deeper on ramps than they were previously able to (thanks to reduced ventilation needs)?

JE: The evolution of mine electrification emphasises the need for flexible mine design that will accommodate new and emerging technology predicted to be mainstream in the not-so-distant future. Adequately ventilating underground mines is a challenge due to the sheer volume of power required to move and potentially cool the air. Not only does the shift away from diesel-powered equipment towards electrification have well documented health and environmental benefits, it also allows greater flexibility in development cycles, mining at greater depths and increased productivity as ventilation requirements to maintain a safe environment for personnel are lower.

IM: In terms of the project pipeline, what are the big contract awards to look out for in the mining space over the next 12 months?

JE: From a global market perspective, we are expecting continued demand for and investment in metals such as copper, lithium and cobalt in line with the increasing global demand for electric vehicles. Similarly, due to global trade and market uncertainty, gold is likely to remain a strong player in the next 12 months.