Tag Archives: mining services

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

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

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

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

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

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

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

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

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.”