Tag Archives: mining services

Barminco secures underground contract extension with Barrick at Hemlo, Canada

Mine operation news, Mining services, Precious metals, , , , , ,

Perenti’s underground mining business, Barminco, has signed a three-year contract with Barrick Gold Corporation to continue contract mining at the Hemlo gold mine in Canada.

Hemlo is 350 km east of Thunder Bay in Ontario, Canada, and has been in production since 1989. In 2019, Barrick transitioned the operation to a contract mining model from owner operator, and Barminco has been the main underground contractor since. The contract is initially for 36 months, but also includes two 12-month options to extend. If these options are exercised, Barminco will be operating at Hemlo until 2029.

Under the terms of the existing contract, Barrick owns the current fleet of underground equipment and will procure any additional fleet required for the mine. This significantly reduces the capital intensity of the project for Barminco, it says. The total contract value is worth more than A$200 million ($132 million) and involves underground mine development, production and mining support services.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said: “The continuation of our relationship with Barrick at the Hemlo gold mine for at least the next three years is another great example of how our Contract Mining team extends contracts over the life of a mine operation. The long-term nature of these relationships is built on a foundation of creating enduring value and certainty for our clients. This aligns our operational success with the goals of our clients and creates a collaborative working environment.

“The low capital intensity of this project is one of several capital light contracts we operate across the organisation, with our first capital light contract secured in 2018.”

Gabrielle Iwanow, President of Contract Mining at Perenti, added: “We are pleased to continue working with Barrick and demonstrating our leading underground capability in the North American market. Barrick is an important client for Barminco and we look forward to continuing to partner with them to deliver safe production at Hemlo.”

In Barrick Gold’s most recent June quarter results, it stated that Hemlo produced 37,000 oz of gold in the three-month period.

Macmahon Holdings to bolster civil infrastructure business with Decmil buy

Mining mergers and acquisitions, Mining services, , ,

Macmahon Holdings Limited has entered into a Scheme Implementation Deed (SID) under which it will acquire 100% of the issued share capital of Decmil Group Limited for an implied enterprise value for Decmil of A$127 million ($81 million).

Decmil provides multi-disciplinary project delivery across the infrastructure, resources and renewable energy sectors, and has been in operation for over 40 years. It also provides an established and scalable foundation to accelerate growth in Macmahon’s civil infrastructure business, diversify earnings and improve overall returns on invested capital through its lower capital intensit, the company says.

On completion, Macmahon intends to operate Decmil as a wholly owned subsidiary and to maintain the Decmil branding, with the existing Macmahon civil business to integrate into the subsidiary. Decmil will continue to be led by its current Chief Executive Officer, Rod Heale.

Michael Finnegan, Managing Director and Chief Executive Officer of Macmahon, said: “The acquisition of Decmil is a significant milestone in Macmahon delivering on its long stated strategy to diversify its earnings and deliver a more resilient, scalable business enabling greater returns to shareholders.

“Decmil provides an established, well credentialed platform to allow Macmahon to better pursue the large opportunity pipeline of resource civil infrastructure and rehabilitation opportunities while diversifying earnings towards renewables and infrastructure, which are both expected to have an increased level of spending in the next decade.

“I look forward to the transaction successfully completing and welcoming Decmil into the Macmahon team.”

The acquisition of Decmil is consistent with Macmahon’s strategic focus of achieving continued earnings growth while diversifying earnings into the less capital intensive civil infrastructure business, it says. The transaction offers a strategic fit, enhances and accelerates earnings diversification, with financial metrics that are compelling for Macmahon shareholders.

It added: “Decmil has a complementary service offering to Macmahon, providing integrated civil construction and infrastructure solutions to the resources, infrastructure and renewable industries across Australia. Its core operations add increased exposure for Macmahon to both the renewable and government infrastructure sectors which have a steady growth trajectory. The Decmil business has established robust processes and operating systems, including holding the licences to carry out a full range of road and bridge projects throughout Australia. Macmahon will leverage these to accelerate growth towards its long-term civil infrastructure
revenue target of $1 billion per annum, or one third of group revenue.”

The acquisition adds circa-A$6 billion to Macmahon’s existing civil pipeline of A$4 billion, and contributes an order book of circa $450 million (as at 31 December, 2023). This creates a more resilient business with less concentrated resource commodity exposure and provides a natural hedge to the cyclicality of contract mining.

This gives access to non-mining civil construction, including renewables and government infrastructure projects, broadening our east coast presence in Victoria and Queensland with an opportunity to expand into including New South Wales and South Australia.

It is anticipated that Decmil shareholders will be given the opportunity to vote on the schemes at the scheme meeting which is currently anticipated to be held in early August 2024.

MMS to carry out load and haul services at Silverlake Mount Monger

Mine operation news, Mining services, Precious metals, , , , , ,

In what it says is a significant win, MMS has secured a A$200 million ($130 million) load and haul contract with gold producer Silver Lake Resources, in Western Australia.

The contract marks a significant milestone for both parties, signalling the next stage of expansion in the Silverlake Mount Monger operation, southeast of Kalgoorlie-Boulder, MMS says.

The 49-month contract is scheduled to commence on April 1, 2024, with MMS operating alongside Silver Lake Resources and Dynamic Drill and Blast in the Santa open pit and Flora Dora deposit.

MMS has already commenced mobilising its fleet onto the site, with early works and site establishment in progress, it says. The fleet consists of new and low-hour heavy machinery, including 120-200-t excavators and 100-t dump trucks. As the operation progresses, it will peak at a workforce of 106 employees and 48 heavy machines operating on site.

Metso opens its largest service centre in Karratha, Western Australia

Comminution of minerals, Equipment maintenance, Mineral processing, Mining consumables, Mining equipment, Mining services, , , , , ,

Metso says it has opened its largest service centre globally in Karratha, Western Australia, aiming to support the growing demand of customers’ needs, delivering more sustainable, state-of-the-art services to operators in the state.

Located in the Pilbara, the centre serves mining and aggregates customers with comprehensive maintenance and repair solutions, it said. The inauguration ceremony was held today on March 21, 2024.

Sami Takaluoma, President, Services business area, Metso, said: “The opening of the new centre is an important milestone and further proof of our commitment to accelerate strategic investments in serving customers from pit to port. Strengthening our presence to offer increased productivity, shorter lead times and environmental advantages will allow us to take service capabilities and customer experience to the next level.”

The Karratha Service Center, backed by an investment totaling approximately €32 million ($34.9 million), spans a 35,000 sq.m area, including a workshop covering 5,000 sq.m.

Equipped with high-capacity cranes, CNC machines, a heat treatment furnace, welding facilities and assembly stations, this centre has received significant customer support, Metso says. It will be able to service a wide range of heavy mining equipment, including crushers, screens, mills, HIG mills, high pressure grinding rolls and car dumpers, among others.

The centre also contributes to customers’ sustainability goals. By extending the operating life of assets, increasing energy and water efficiency and minimising plant downtime, Metso helps customers in achieving their environmental and safety objectives, it says. Further, by reducing the need for long-haul freight between Perth and the Pilbara region, the centre reduces carbon emissions and offers faster access to critical spare parts. This not only benefits the environment but also enhances operational efficiency.

Stuart Sneyd, President, Asia Pacific, Metso, said: “This is a long-term and significant commitment to the Pilbara region and the communities here. We are extremely pleased that our local customers are already expressing considerable interest and confidence in our services. Metso has a significant installed base of equipment and a strong reputation in Asia Pacific; every day over 900 processing plants rely on Metso’s technology. By utilising Metso’s service knowhow and expertise, genuine parts, exact materials and OEM specifications, customers will achieve significant business and sustainability benefits.”

The Karratha Service Center features a dedicated training facility, offering tailored programs to enhance the technical expertise of mining professionals, Metso says. The centre will provide long-term stable employment to skilled personnel from the local communities, including trades, service engineers and experts. An apprenticeship program targeting the local community is also planned for the centre. In Asia Pacific alone, Metso contributes to the creation of more than 1,250 jobs, which will be further strengthened with the opening of the Karratha Service Centre.

Tapojärvi kicks off open-pit mining contract at Kaunis Iron

Mine operation news, Mining services, Steel and iron ore, , , , ,

Tapojärvi Sverige Ab recently began a new contract mining gig at the Kaunis Iron mine in Pajala, Sweden, at the same time as the temperatures in that region plummeted to around -40°C.

The service contract with Kaunis Iron covers machine work in ore production as well as production support work, which includes all open-pit production activities other than rock transportation, drilling and charging.

Miika Miettinen, Production Manager at Tapojärvi, said the contract began as agreed on January 1, with the company compiling a service package in only six weeks.

The start of a new service contract requires new personnel and equipment to carry out production in line with the contract. Additionally, production control systems, infrastructure, offices and production facilities, as well as maintenance services, are needed. A mining contractor must also consider safety at every step of production.

Approximately 60 new employees were recruited, and additional personnel were borrowed from other Tapojärvi sites, to bring this contract in within the six-week timeframe.

Miettinen highlights the professional mindset of his employer, skilled and committed personnel and new equipment as Tapojärvi’s strengths. These factors enable Tapojärvi to respond quickly to the client’s needs.

“We were forced to let the production stand idle when the temperature dropped low in early January,” Miettinen said. “There were also some struggles involving the machinery. Despite everything, our operations have been launched successfully and the client has been happy with our performance.”

To support its operations, Tapojärvi has developed processes and systems that are constantly collecting online production data. Data and analytics help enhance Tapojärvi’s performance, safety and maintenance processes.

“We are able to provide the client with comprehensive and complex production data, which allows us to influence the mine’s operations and performance together with the client,” Miettinen said. “I am glad that our cooperation with Kaunis Iron has gone smoothly from the very beginning and that we are already involved in developing the operations.”

The service contract with Kaunis Iron is Tapojärvi Sverige’s first major open-pit mine contract in Sweden. The company has previously worked in underground mines on the sites of LKAB and Zinkgruvan, for example.

MLG Oz makes contract inroads with Ora Banda, Gold Fields, Bellevue Gold

Mine operation news, Mineral processing, Mining services, Precious metals, , , , , , , , ,

MLG Oz says it has been selected as the preferred supplier for the provision of haulage and site services at Ora Banda Mining’s Davyhurst site, in Western Australia, on top of receiving a letter of award from Gold Fields for the provision of construction works for the latest tailings storage facility project at the gold miner’s 50% owned Gruyere gold mine (pictured), also in Western Australia.

The company is currently finalising contract execution for a two-year extension, plus a one-year option, to its existing arrangements for the provision of services at Davyhurst. It would come with new commercial terms across the scope of works already being provided negotiated in line with current cost drivers and production expectations, with annual revenue subject to production and performance anticipated to be
approximately A$15 million/y ($10.2 million). This is subject to a contract being signed.

Ora Banda Mining owns an existing centralised 1.2 Mt/y processing hub, as well as additional established infrastructure at Davyhurst.

The letter of award with Gold Fields, meanwhile, is for the provision of construction works for the Gruyere Tailings Storage Facility Stage 4 (TSF) project at the gold mine, a joint venture between Gold Fields and Gold Road Resources. The award is still subject to the final negotiation of contract terms. The anticipated contract length is around eight months, with total revenue of approximately A$17 million subject to final terms and key milestones being achieved.

In addition to this new scope of works, MLG has also agreed to commence haulage services for Bellevue Gold from its open pit to Genesis’s Gwalia processing facility, also in Western Australia. The initial works are expected to commence this month and run for approximately three
months and contribute circa-A$4 million in revenue.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms. The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships, and further demonstrate MLG’s broad capability both in terms of haulage and site services, but also in the support for our growing civil construction business.”

Duratec banks Rio Tinto Western Australia work at Robe River and Dampier Salt

Equipment maintenance, Mine operation news, Mining services, Steel and iron ore, , , , , , , , ,

Australian engineering, construction, and remediation contractor, Duratec Limited, has recently been awarded A$30 million ($20.4 million) in mining and industrial (M&I) segment work with Rio Tinto across the major miner’s iron ore and salt operations.

Key project awards within this total consist of the structural integrity remediation and Bins 3-5 life expansion works at Robe River’s West Angelas mine (A$19 million), which will commence
immediately and is due for completion by the end of the June quarter of 2025, and Dampier Salt’s Lake Macleod jetty structural integrity works bays 10 to 11 (A$6.8 million), which will commence immediately and is due for completion by the end of the calendar year.

Structural integrity projects consist of blast, protective coating and the structural remediation (including welding and steel strengthening) of a client’s assets. This, Duratec says, strongly aligns with the company’s remediation expertise and proven track record in delivery of similar packages through the company’s M&I segment. The A$30 million in M&I segment work since mid-May 2023, including these two key project awards, demonstrates Duratec’s ability to strengthen its annuity style contract awards with key strategic clients, which remains a key focus and growth area of the company.

Duratec’s Managing Director, Phil Harcourt, said: “I am elated with the company’s efforts in converting tangible opportunities to our orderbook and with the ability of our company to present itself as the contractor of choice with our key clients. The M&I segment currently represents 25% of our overall orderbook, and the outlook for this segment remains very strong, which Duratec is well positioned to capitalise on – in line with the business strategy.”

Perenti’s Barminco to carry out development works at Evolution Mining’s Ernest Henry mine

Base metals, Mine operation news, Mining equipment, Mining services, Precious metals, , , , , , , , ,

Australia-based Perenti has provided an operational update and an upgrade to its financial year 2023 guidance to end-June 2023, which includes confirmation of a new contract for Barminco at Evolution Mining’s Ernest Henry mine in Queensland and a variation to expand its work scope at Regis Resources’ Garden Well mine in Western Australia.

The positive momentum noted in the operational update released on November 14 has continued as Perenti heads toward the end of the calendar year, with this momentum expected to continue into 2023, it noted.

“Since the release of the most recent operational update Perenti has secured improvements to commercial conditions across several Australian and African projects, including retrospective rate adjustments in relation to work that has previously been completed,” it said.

“These rate adjustments are the key catalyst in providing a further guidance upgrade one month after our previous upgrade.”

The contract at Ernest Henry (pictured) is for development work at the underground gold and copper mine. As Barminco transitions out of MMG’s Dugald River mine – where it has been carrying out development and production works – early next year, employees and capital resources from Dugald River will be mobilised to the new contract at Ernest Henry, it said. Underground development work at Dugald River, meanwhile, is to be taken on by Redpath Australia.

The Garden Well extension follows the commencement of underground mine development at the deposit in 2021.

On November 14, Perenti updated its FY23 guidance to forecast FY23 revenue of between $2.6-$2.7 billion ($1.7-1.8 billion). With the announcement of improved commercial conditions, and in consideration of securing work at Ernest Henry and scope growth at Garden Well, Perenti now forecasts that the company’s FY23 revenue will be between $2.7-$2.9 billion.

Mark Norwell, Managing Director and CEO of Perenti, said: “In addition to generating greater returns in FY23, we are focused on continuing to pursue business and project optimisation initiatives which will facilitate the delivering our 2025 strategy. Our strategy is designed to drive positive momentum in shareholder value well into the future. Perenti’s outlook is underpinned by our world-class Contract Mining Division, and the continued development of our Mining Services and idoba divisions. Our focus on generating enduring value for our people, clients and communities, will ensure we continue to deliver sustainable returns for our shareholders.”

Westgold signs up MLG for transport, maintenance and management services

Mine operation news, Mining services, Precious metals, , , , , , , , , , ,

MLG Oz Limited says it has been awarded a material five-year contract by Westgold Resources Limited that will see the METS company service the gold miner’s operational hubs across the Murchison and Bryah Basin regions.

The contract, which leverages MLG’s integrated support model, is focused on enhancing Westgold’s operating efficiencies. It also consolidates MLG’s resources in the Mid-West region and represents a material win for the company, it said.

Westgold owns and operates the Tuckabianna, Bluebird and Fortnum processing hubs across the Murchison and Bryah Basin regions of Western Australia, with its objective to leverage MLG’s existing fleet capacity to enhance operational efficiencies and use MLG’s latest road haulage technical advancements, MLG said.

Westgold is to provide dedicated maintenance facilities at each of its sites to support MLG operations.

The scope of services includes the delivery of in-pit, off- and on-road haulage, road maintenance and run of mine management services activities across all of Westgold’s operations.

The initial ramp up and mobilisation activities are expected to commence in October 2022, with anticipated annual revenues of circa-A$40 million ($27 million) with revenue to build from December 2022.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are delighted Westgold has selected us to enhance their operations in the Murchison and Bryah Basin regions. Westgold is focused on driving cost and operational efficiencies to enhance the profitability of its business and we are proud to have been chosen as a key and trusted business partner.

“This is a large opportunity for MLG to establish a long-term relationship with a growth-oriented gold miner and Westgold’s faith in MLG represents a significant endorsement of our capabilities.”

MLG Oz is a founder-led business that provides a range of services to mine sites, integrated around the needs of client’s ore processing facilities.

MLG Oz extends service ties with Evolution Mining at Mungari operations

Mine operation news, Mining services, Precious metals, , , , , , , ,

MLG Oz Ltd is set to extend its relationship with Evolution Mining Limited after being selected as its preferred service provider to service its Mungari operation, located in the Goldfields region of Western Australia.

The award of the new contract for the provision of haulage and integrated site services issued under Evolution’s wholly owned subsidiary, Evolution Mining (Mungari) Pty Limited, is for an initial contract term of two years, with a provision for a further one-year extension at Evolution’s discretion. The contract, MLG says, leverages its large Kalgoorlie-based resourcing pool and off-road haulage assets.

The Mungari district, now under the single ownership of Evolution, has a significant mineral endowment with a large portfolio of resources delivering long term feed options to the company’s centrally located Mungari processing infrastructure. Mungari produced 115,829 oz of gold at an average all-in sustaining cost of A$1,453/oz ($1,003/oz) in the financial year ending June 30, 2021.

MLG founder and Managing Director, Murray Leahy, said: “We commenced our first contract with Evolution less than a year ago and we are delighted to be awarded this opportunity to enhance our long-term relationship. This contract marks a significant milestone in our pursuit to provide superior integrated services to our customers.”

The new contract will see annualised revenue with Evolution effectively double to some A$15-$18 million, MLG said. The company’s scope of works builds on the recent integration of the Kundana operations into Evolution’s Mungari portfolio, with MLG engaged to service the combined sites bulk haulage and road maintenance requirements under a single service provider arrangement.