Tag Archives: Mount Holland

Macmahon’s Decmil to upgrade logistics links for Mount Holland lithium project

Energy minerals, Mine operation news, Mineral project development, Mining services, , , , ,

Macmahon Holdings Limited subsidiary, Decmil, has been awarded a A$123 million ($83 million) road upgrade contract by Covalent Lithium Pty Ltd on the Mount Holland lithium project in Western Australia.

The scope of works includes upgrading the logistics link between the Great Eastern Highway and Covalent’s Mount Holland site, with approximately 113 km of road upgrades to take place.

Decmil commenced work on the project in August 2023 following receipt of a Limited Notice of Award in July 2023. Approximately A$59 million of works had already been completed during the 2024 financial year. Work under the full contract award is expected to directly create 220 jobs at its peak and be completed by April 2025.

The remaining value of the project works adds a further A$64 million in revenue to Macmahon’s secured order book supporting the 2025 financial year revenue guidance range of A$2.4-2.5 billion.

Macmahon’s CEO and Managing Directo, Michael Finnegan, said: “Decmil is off to a strong start in converting our A$11.6 billion tender pipeline having now secured approximately A$240 million of new work since Macmahon acquired the business in August 2024.

“The contract award at the Mount Holland Lithium project is the team’s second major road upgrade project since joining Macmahon, demonstrating Decmil’s strong credentials in this area, and I look forward to the successful delivery of the project for Covalent.”

Covalent has developed and is now operating the Mount Holland project, which, it says, is a unique, fully integrated producer of battery-quality lithium hydroxide in Western Australia. The company says it is targeting 75% recovery of spodumene in its concentrator and expects to produce more than 380,000 t/y of spodumene concentrate.

Decmil receives logistics link upgrade LNoA from Covalent for Mount Holland lithium project

Energy minerals, Mineral project development, Mining services, , , , , ,

Decmil Group says it has received a Limited Notice of Award (LNoA) for a contract at Covalent Lithium’s Mount Holland lithium project in Western Australia.

Formal award of the contract remains subject to finalisation of terms and conditions, but, under the currently envisaged scope of the LNoA, Decmil is authorised to perform early works, commence procurement of materials and draft management plans.

If Decmil is awarded the contract, it will upgrade the logistics link between Great Eastern Highway and Covalent’s Mount Holland site. This encompasses 113 km of road upgrades with mobilisation scheduled to commence in August 2023 and completion anticipated by December 2024.

Covalent will develop and operate the Mount Holland project, which will be a unique, fully integrated producer of battery-quality lithium hydroxide in Western Australia. The company says it is targeting 75% recovery of spodumene in its concentrator and expects to produce more than 380,000 t/y of spodumene concentrate.

This LNoA further strengthens the relationship between Covalent and Decmil, with Decmil currently completing the design and construction of non-process infrastructure buildings at Covalent’s Kwinana site (pictured).

Decmil CEO, Rod Heale, said: “We are delivering on our shift towards larger-sized contracts with more equitable risk allocations that fit within our core geographic and operational expertise. This LNoA perfectly illustrates Decmil’s evolution towards this highly selective tendering strategy to underpin increasingly profitable revenue growth.

“The LNoA is also a testament to the successful delivery of our current package of works with Covalent, as we continue to positively progress our operational turnaround.

“Additionally, continued exposure to the Mount Holland project will further enhance the company’s position in the burgeoning lithium sector.”

Thiess to deliver mining services to Mount Holland lithium mine JV

Energy minerals, Explosives and blasting, Mineral project development, Mining equipment, Mining services, , , , , , , , ,

Thiess says it has been awarded a four-year contract by Covalent Lithium to deliver mining services at the Mount Holland lithium mine in Western Australia.

Covalent Lithium is a joint venture between Wesfarmers and Sociedad Quimica y Minera de Chile (SQM), one of the world’s largest lithium miners.

Under the contract, Thiess will deliver drill and blast services, mining of overburden and ore, and equipment maintenance with a strong focus on community development and environmental protection, it said. Thiess commenced mobilisation and early mining operations in January.

Thiess Executive Chairman and CEO, Michael Wright, said: “We are very pleased to be selected by Covalent to undertake mining at the Mount Holland mine. This award recognises our team’s ability to deliver sustainable mining solutions and deliver enduring value for our clients across diverse commodities.

“We look forward to working with Covalent Lithium to safely position their operations for optimal efficiency, productivity and cost performance, and contribute strongly to a clean energy future.”

The Mount Holland Mine produces lithium-bearing ore that is concentrated and refined to produce lithium hydroxide, a mineral used to enable electric vehicles and battery-based energy storage systems. EPC contractor, Primero, is currently constructing the Mt Holland concentrator to process ‘run of mine’ ore at a rate of circa-2 Mt/y and produce an output of circa-400,000 t/y of spodumene concentrate to feed the company’s integrated lithium hydroxide conversion refinery situated in Kwinana.

Civmec to construct Mount Holland lithium concentrate refinery

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Civmec Ltd has been issued with a notice of award for a major construction contract in the resources sector at the Covalent Lithium Pty Ltd joint venture in Western Australia, as well as several infrastructure and maintenance projects, raising its order book to more than A$1.15 billion ($823 million).

The major construction contract is for the Mount Holland lithium project in Western Australia being undertaken by subsidiaries of Wesfarmers and Sociedad Química y Minera de Chile SA through the 50:50 joint venture manager Covalent Lithium Pty Ltd.

The Mount Holland mine site will produce lithium concentrate, which will be transported to a refinery that Civmec has been tasked to construct. The refinery, to be located at Kwinana in Western Australia and within 10 km of Civmec’s flagship heavy engineering facilities in Henderson, will convert the lithium concentrate into high-purity lithium hydroxide monohydrate. Covalent says the refinery operations are expected to have an 85% recovery of the lithium contained in the spodumene concentrate, with the capacity to produce around 45,000 t/y of battery-quality lithium hydroxide.

The scope of work being undertaken by Civmec covers most disciplines performed by Civmec including structural and piping fabrication, SMP erection, refractory lining, insulation and E&I installation works.

Civmec expects to commence work on this project in 2022, with completion expected in 2024.

On top of this, the company says it has also continued to make traction in our efforts to secure more market share in the maintenance area on both the East and West coast of Australia with a new contract award for maintenance services for Glencore’s Murrin Murrin operations. It is also getting more work for maintenance and shutdowns from long-term client Roy Hill, and has recently completed work for a nickel producer in the Goldfields region of Western Australia.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “Demand for heavy engineering and construction services in the private and public sectors in Australia remains strong and these new contracts underscore, yet again, our strength as a top-tier contractor. Our efforts to generate more recurring income are also paying off as we are getting more work involving maintenance and capital works from both existing and new clients.”