Tag Archives: mining services

MLG Oz extends service ties with Evolution Mining at Mungari operations

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.

MACA to carry out open-pit mining services at Roy Hill iron ore operation

MACA Ltd says it has been awarded a mining services contract with Roy Hill Iron Ore Pty Ltd at the Roy Hill iron ore operation in the Pilbara of Western Australia.

The project consists of open-pit mining services, including load and haul and drill and blast, and is expected to generate approximately A$70 million ($50 million) in revenue for MACA over the 12-month term, commencing in early 2022, it said.

MACA says its work in hand position including this contract is currently A$3 billion.

The Roy Hill project is owned by Hancock Prospecting Pty Ltd, Marubeni Corporation, POSCO and China Steel Corporation, and is 115 km north of Newman in Western Australia’s Pilbara region.

MACA CEO, Mike Sutton, said: “MACA is very pleased to be able to continue working with Roy Hill at its world-class iron ore operation, having commenced civil works at the project earlier this year. Our team has a long-standing relationship with Roy Hill, starting with first mining at the Roy Hill project, and MACA is proud to be an ongoing part of this operation.

“This project will be undertaken utilising existing fleet, contributes to MACA’s secured mining work in hand for financial year 2022 and financial year 2023 and further secures our strong position in the Pilbara region.”

CSI to deploy ‘innovative’ screening solution at Roy Hill iron ore operations

CSI Mining Services (CSI), a wholly owned subsidiary of Mineral Resources Limited (MRL), has been awarded a mining services contract by Roy Hill at its iron ore operation in Western Australia’s Pilbara region.

This new contract builds on CSI’s long-standing relationship with Roy Hill, which has seen CSI provide crushing and screening works since early project inception. The new contract will see CSI deliver an expanded scope of work which includes crushing, screening and haulage services.

CSI says it is uniquely positioned as a key service provider to Roy Hill given its strong track record of exceeding performance targets and detailed understanding of the mine and its operational processes and procedures.

In delivering the new contract CSI will deploy an innovative new screening solution to deliver industry-leading efficiencies to the project. The screening solution is an exclusive product to CSI and is not available on the market, giving CSI a distinct design advantage.

Mineral Resources’ Chief Executive Mining Services, Mike Grey, said: “We are very pleased to be selected as preferred mining contractor by Roy Hill to provide safe and efficient crushing, screening and haulage services, following the successful completion of our previous contract.

“Our track record at the operation demonstrates that we can mobilise quickly and exceed production targets, while maintaining an industry leading safety record.

“Our mining services business has delivered strong growth year-on-year and this new contract for Roy Hill reinforces CSI’s position as a market leading mining services contractor.”

Roy Hill Chief Operating Officer, Anthony Kirke, said: “CSI has been a valued partner to Roy Hill since February 2017, initially providing crushing services, followed by the addition of screening and associated haulage services for our Direct Shipped Ore. CSI’s agility in responding to changing operational requirements, commitment to innovation and continuous improvement and alignment with our values have resulted in positive outcomes for Roy Hill.

“The award of this new and expanded multi-year contract reflects the strong relationship between our two companies and we look forward to the deployment of CSI’s new screening solution at our mine site.”

MLG Oz bolsters NSR Jundee work, adds Norton Gold Fields and Mincor to contract mix

MLG Oz says it continues to experience historically high levels of tendering opportunities for its suite of mining services, with three new integrated site services and haulage contracts recently added to its remit across its Western Australia operations.

MLG, which listed on the ASX earlier this year, says it offers a range of value added services from bulk haulage, crushing and screening, aggregate and sand supplies through to export logistics.

At Northern Star’s Jundee gold operation in Western Australia, the company has been awarded preferred contractor status for an expansion of its services, providing integrated site support and haulage capacity at the mine. Subject to negotiation and execution, this new three-year contract is expected to commence around August and deliver some A$12 million/y ($9.2 million/y) in revenue.

The scope of works will consist of integrated site support to the company’s mill feed operations from both its Jundee central underground mines and its regional satellite operations, MLG said. It will see the ASX-listed contractor conduct all crusher feed, bulk haulage and site civil works for the operations under its integrated operating platform.

MLG has added two new clients to its roster, too – Norton Gold Fields and Mincor Resources.

Norton Gold Fields has chosen MLG as its successful tenderer to provide integrated site support services and haulage for its Paddington gold operation over a three-year period expected to commence in September. Revenue from this opportunity is estimated to be around A$14 million/y, with formal contract documentation anticipated to be finalised in the coming weeks.

And, in line with MLG’s desire to broaden its service offering across different commodities and, in particular, the battery metals space, it has executed a contract with Mincor Resources for the provision of the logistics services associated with its Kambalda nickel operation. The contract is expected to deliver approximately A$3 million/y in revenue over four years and is expected to commence in the March quarter of 2022.

Reviewing these contract awards, MLG Founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be given the opportunity to continue to support and grow with Northern Star which has been a long-standing customer of MLG.

“We are delighted that the Norton Gold Fields Board has selected MLG to support the Paddington processing facility. The mill is 35 km northwest of Kalgoorlie and aligns very strongly with our existing Kalgoorlie network.

“Our new contract at the Kambalda operations is an important first step for MLG in developing a longer-term relationship with Mincor in support of its goal of being a key supplier of nickel to the emerging battery metals market.”

In addition to announcing these contract awards, MLG also provided a market update on its crushing and screening activities.

It said: “MLG’s crushing and screening operations, which account for 20% of MLG’s forecast financial year 2021 revenue of A$241.6 million, have experienced a reduction in available material to process from several clients across the last quarter of financial year 2021, due to production constraints at various client operations. We anticipate this will negatively impact the crushing and screening revenue in the first half of financial year 2022. Despite this, and given the company’s current pipeline, including as evidenced above, the board expects the overall impact of this to be mitigated in the second half of financial year 2022.”

Alliance secures BHP Olympic Dam connection with contract extension

Alliance Aviation Services says it has signed a contract extension with BHP Olympic Dam for a period of three years with two 12-month extension options, permitting a full term of up to five years.

The extension will see Alliance continue to operate charter services for the BHP Olympic Dam mine site operations, in South Australia, as well as scheduled services supporting the local community of Roxby Downs.

Alliance has been servicing Olympic Dam and the Roxby Downs community since 2007 and, if exercised for the full term, by the end of this contract extension, will see continuous operations in support of Olympic Dam, by Alliance, of at least 19 years.

The contract will see the introduction of Fokker 100 jet aircraft, a 100 passenger seat aircraft, into Olympic Dam Airport to coincide with the significant upgrades currently going on at the airport, which are due for completion in February 2021.

The introduction of larger capacity aircraft will provide ongoing savings to both Alliance and BHP Olympic Dam, provide BHP Olympic Dam with greater scalability for future growth plans and provide greater comfort for all passengers, Alliance said.

Alliance’s Chief Executive Officer, Lee Schofield, said: “Alliance is delighted to be in a position to provide jet services into Roxby Downs. Passengers will enjoy a smoother, quieter and, more importantly, a quicker flight between Adelaide and Roxby Downs with a reduction of 20 minutes, or 25%.

“Since our first service into Olympic Dam in 2007, we have safely transported in excess of 1 million passengers with industry leading on time performance throughout the past 14 years. Alliance has also been an active participant in the local community with staff living in the local community and actively participating in local community events.

“We are also the largest provider of air charter services to the BHP group, servicing mines in South Australia, Western Australia and Queensland.”

In May 2019, BHP presented Alliance with an Aviation Safety Award in recognition of the safe carriage of 3.5 million BHP staff and contractors on charter and scheduled services since the company’s first charter flight for BHP in April 2002.

Decmil looks to enter water, power sectors with Avid Resources tie-up

Decmil, in support of its overall strategy, has entered a strategic partnership with Avid Resources to further enhance its integrated service offerings and provide access to the water and power sectors.

Avid Resources is a multi-disciplinary business providing market-leading construction and maintenance for metals and minerals projects; end-to-end electrical, instrumentation and control solutions; and extensive design, civil, mechanical and electrical experience across water treatment plants and wastewater treatment facilities.

Through this strategic partnership, Decmil and Avid will be able to leverage their respective capabilities providing a fully integrated solution, Decmil says.

Avid says it has a proven track record of successfully delivering medium and large projects for the mining and process industries. Its capabilities include innovative modular construction solutions and integrated structural, mechanical, piping, electrical and instrumentation services.

Mondium chooses Kerman Contracting for Rio Tinto WTS2 work

Kerman Contracting is to work on Rio Tinto’s in-development Western Turner Syncline 2 (WTS2) iron ore project, in Western Australia, following a contract award from Mondium.

Mondium was last month awarded a contract to design and construct the WTS2 mine in the Pilbara of Western Australia. It has since agreed to contract out the design, construction and commissioning of non-process infrastructure facilities and an explosives compound to Kerman as part of a circa-A$55 million ($37 million) agreement.

The construction works are due to start in the June quarter, with the contract comprising a fixed plant workshop complete with amenities and office buildings, a heavy vehicle diesel storage and refuelling facility and two remote facility buildings inclusive of offices, ablutions and crib rooms as well as an ammonium nitrate and emulsion storage facility and explosives compound.

Kerman’s Managing Director, Chris Kerman, said: “We are excited about the opportunity to work with Mondium at the WTS2 project and looking forward to building a strong and lasting business relationship with Mondium.

“This contract award builds on Kerman’s previous successful project outcomes in the Pilbara region in particular for Rio Tinto and other major mining companies.”

Back in November, Rio said it would invest $749 million in the development of WTS2 at its Greater Tom Price operations, facilitating mining of existing and new deposits and including construction of a new crusher as well as a 13 km conveyor.

Perenti considering further Australia mining services consolidation

In response to media speculation, Perenti has confirmed it is “currently giving consideration” to the potential purchase of Downer EDI’s mining services division.

“The process is ongoing and Perenti would only put forward an offer to acquire the business if it were to align with its strategy and deliver value for the company’s shareholders,” it said.

Downer confirmed in November that it would be undertaking a portfolio review “to determine whether there are opportunities to enhance the alignment” of its portfolio, noting that an important area of focus for the review was the mining business.

Perenti, a global mining services firm, has expanded substantially in the past few years, acquiring Barminco in late 2018 to become Australia’s second-largest mining services company.

Westgold Resources gets uses to village life with Sodexo

Sodexo is set to deliver more services for Westgold Resources after the two companies agreed to broaden their contract to include a fourth mine site in Western Australia.

This contract amendment, which will see the company start work on the Big Bell site, increases the value of Sodexo’s current contract with the Australia-based gold miner to A$40 million ($27.2 million).

Under this contract, Sodexo is scoped to deliver all village, transportation, catering, cleaning, building maintenance and landscaping services at the site.

The Big Bell site, located 24 km northwest of Cue in Western Australia, was launched on June 1, 2019, to support operations at the Big Bell underground mine, as part of the larger Cue gold operations. This would see daily commute times reduced, while ensuring worker facilities are readily available.

Westgold hit first ore at the Big Bell underground mine late last year. It had been dewatering and refurbishing the Big Bell underground mine for over two years. The base load for the Cue 10-year development plan is based around the Big Bell underground mine – which is expected to provide 10.1 Mt at 3 g/t Au from the company’s 2020 financial year.

Sodexo’s existing work with Westgold to provide services to the Cue, Fortnum and Bluebird mining sites is part of a three-year contract that commenced in June 2018. The Big Bell contract will conclude in 2021 in alignment with the contract for these sites.

Westgold Director of Operations, Steve Norregaard, said: “Sodexo continues to demonstrate its commitment to maintaining safety and quality operations for our mining workforce. The Big Bell mine is accelerating fast to become the cornerstone asset in the Cue operations. Sodexo’s facilities management services to the Big Bell mine site give us peace of mind that workers will be provided access to high-quality facilities and a home-away-from-home experience.”

Sodexo CEO Mining APAC, Paul Cooper, said: “Australian mining is a sector where Sodexo continues to excel. The company successfully demonstrated its dedication to service excellence by improving village life across three of Westgold’s existing sites and this supported our proposal for Big Bell. Being awarded the Big Bell contract is testament to a strong working relationship with Westgold, after acquiring Morris Corporation that had previously held the contract for three years.”

Civeo captures Western Australia mining market share with Action buy

Civeo Corp says it has acquired Action Industrial Catering, a provider of catering and managed services to the remote mining industry in Western Australia.

Civeo, a provider of hospitality services with prominent market positions in the Canada oil sands and the Australia natural resource regions, said: “The acquisition significantly enhances Civeo Australia’s service offering and geographic footprint by providing an entry point into the growing integrated services opportunities in the Western Australian remote mining market.”

Established in 1995, Action is based in Perth, Australia, and currently operates around 900,000 room nights per year for iron ore, gold, nickel and battery mineral producers. Among its contracts is an agreement with Fortescue Metals Group for catering and support services for the miner’s 1,850 room Kangi Village, based within the Solomon Hub operations in the Pilbara of Western Australia (pictured).

“This acquisition brings contract visibility and strong relationships with top tier customers in Western Australia who are poised to benefit significantly from market trends, including expansionary projects in Western Australian iron ore and increasing global demand for lithium-ion batteries,” Civeo said.

Bradley J Dodson, Civeo’s President and Chief Executive Officer, said: “This acquisition significantly bolsters our Australian segment, providing a strategic foothold in the large integrated services and Western Australian markets, further strengthening Civeo’s market position as an integrated service provider across Australia.”

He continued: “Our acquisition of Action underlines our focus on pursuing growth opportunities that fit within our core competencies and strategic direction, while further enabling organic growth opportunities. Importantly, we are well-positioned to continue to capitalise on opportunities to grow our catering and managed services footprint in Australia as we maintain our commitment to top-tier service for all of our customers.”