Tag Archives: Murray & Roberts

Murray & Roberts Mining Platform order book returns to pre-pandemic levels

The Mining Platform of Murray & Roberts, a leading mining contracting business, is fast putting the economic effects of the COVID-19 pandemic behind it and its order book has now recovered to pre-pandemic levels, according to Mike da Costa.

“Our order book was eroded in the immediate aftermath of the global economic shutdown caused by the pandemic, but has now recovered nicely,” da Costa, who is CEO of the Mining Platform, said. “It now totals R22.2 billion ($1.44 billion) which is sharply up on the R17.9 billion of a year ago. Future prospects also look good as there is a significant pipeline of new projects that we’re bidding on.”

The Murray & Roberts Mining Platform consists of three regional businesses. These are Murray & Roberts Cementation, headquartered in Johannesburg but with branches in Kitwe in Zambia and Accra in Ghana; Cementation Americas (which incorporates Cementation USA), based in Salt Lake City, which handles the Americas; and RUC Cementation, which operates out of Perth in Australia and works throughout Australasia and Southeast Asia.

“We’re active in virtually every major mining jurisdiction,” da Costa says. “Notable mines and projects where we are currently working include the Venetia Underground Project in South Africa, the Jansen potash project in Canada, the Kennecott Utah Copper Keystone project in the US, the Oyu Tolgoi copper/gold mine in Mongolia, the Grasberg copper/gold mine in Indonesia and the Tanami gold mine in Australia.”

Mike da Costa, CEO of the Murray & Roberts Mining Platform

The Mining Platform, which in Murray & Roberts’ 2021 financial year generated revenues totalling approximately R9.5 billion, offers services spanning every aspect of underground mining, including feasibility studies, specialist engineering, vertical and decline shaft construction, mine development, specialist mining services such as raise boring and grouting, and contract mining.

Murray & Roberts Cementation, the African arm of the global Mining Platform, has been noted for its technical capabilities and, in particular, its shaft-sinking expertise, over the decades. It has played a vital role in the development of South Africa’s deep level gold mining industry and is currently turning over approximately R3.5 billion a year, with aims to lift this to R4.5 billion, the company says.

Commenting on the current performance of Murray & Roberts Cementation, its Managing Director, Mike Wells, says the bulk of its work is in South Africa.

“Historically, we’ve worked all over Africa but at the moment our African presence – outside of South Africa – is largely confined to some raiseboring contracts we have in Zimbabwe, Burkina Faso and Tanzania, as well as a contract at the Navachab gold mine in Namibia where the client is developing a trial underground mine. In South Africa, however, we are extremely busy. We’ve definitely put the impact of the pandemic behind us.”

Wells says a particular highlight for Murray & Roberts Cementation at the moment is the coal sector.

“We’re working at New Clydesdale colliery through our Boipelo joint venture,” he notes. “We’re also at Matla 1, where we are doing stonework to re-establish the mine in a new location. Another opportunity in the coal sector is to do stonework by the method of road heading and we’re actively pursuing work of this type.”

Murray & Roberts Cementation’s flagship contract is the Venetia Underground Project, where the company’s work on the sinking and equipping of the two vertical shafts the project requires is now well advanced, with the shaft sinking phase nearing completion. Although Murray & Roberts Cementation’s current scope of work runs through to about 2024, Wells believes there is a reasonable prospect of the company remaining active at the mine for years to come, given the scale of the VUP.

In the PGM field, Murray & Roberts Cementation has worked for several years on various aspects of the giant Platreef project, near Mokopane (pictured above), and is just starting its latest contract at the site, which will see it carrying out development for the initial Phase 1 mine. An interesting feature here is that the contract will see Murray & Roberts Cementation using a battery-powered mining fleet – owned by the client, Ivanplats – for the first time.

Murray & Roberts Cementation is working at the New Clydesdale colliery through its Boipelo joint venture

Moving to safety, Wells labelled Murray & Roberts Cementation’s safety record as ‘outstanding’.

“We notched up five million fatality-free shifts just over a year ago, which was a major milestone, and we should hit the 6 million mark shortly,” he said. “We’ve now been fatality free for around six-and-half years, which is a truly exceptional run. We attribute our success to our Major Accident Prevention program, as well as the excellent training we provide at our world-class Training Academy at our Bentley Park premises, near Carletonville.”

The task of bringing new business into Murray & Roberts Cementation is the responsibility of Allan Widlake, New Business Director, who says there is plenty of scope for the company to grow both in South Africa and the rest of Africa.

“Clients across the board are starting to put out new tenders and projects that were previously on hold,” he states. “This is particularly the case in South Africa, but we’re encouraged by developments in other parts of Africa. In Zambia, for example, there are definitely some opportunities emerging on the Copperbelt.”

Widlake says Murray & Roberts Cementation is differentiated from most other players in the market by the breadth of its offering, its procurement ability, its balance sheet, its HR skills, its safety record and the training facilities at Bentley Park.

“Our Training Academy is a huge asset and is particularly important now that localisation of employment opportunities is a requirement on virtually all contracts,” he said. “We can take people with no mining experience and bring them up to an impressive level of competence very quickly by putting them through Bentley Park.”

Moving back to the global perspective, da Costa says the relatively recent acquisition by Murray & Roberts of Terra Nova Technologies in the US and Insig Technologies in Australia will significantly expand the Mining Platform’s capabilities.
San Diego-based Terra Nova has given the platform a strong foothold in the materials handling market. The company designs, supplies and commissions overland conveyors, crushing/conveying systems, mobile stacking systems and in-pit crushing and conveying systems.

“Terra Nova is a perfect fit for Murray & Roberts’ Mining Platform and gives us the capability of delivering, for example, conveying systems of up to 12 000 t/h capacity,” da Costa said. “Its biggest market is North America but it is also active in South America and has an office in Santiago in Chile. It has, in fact, just won a major contract in Chile. Our intention is to grow the business by leveraging our global footprint.”

Commenting on the Insig acquisition, da Costa says it takes Murray & Roberts into high-tech territory, as the company specialises in developing IoT (Internet of Things) systems and remote control solutions in the mining field.

“We’ve been working on a digital strategy for the Mining Platform for some time now and the acquisition of Insig is central to our digital journey,” concludes da Costa. “We will be using Insig’s systems in house initially but will ultimately market them to the wider mining industry. We see them as being vital in our move to increase efficiencies, cut costs and increase safety through digitisation.”

Murray & Roberts’ da Costa heralds positive impact of TNT, Insig on mining platform

The global mining platform of Murray & Roberts has significantly extended its capabilities over the past several years with two key acquisitions in the US and Australia, Mike da Costa, CEO of the platform, says.

The two companies in which majority interests have been acquired are San Diego, USA-based Terra Nova Technologies, a materials handling specialist, and Australia-based start-up Insig Technologies, which develops and provides digital solutions in the mining field.

Terra Nova designs, supplies and commissions overland conveyors, crushing/conveying systems, mobile stacking systems and in-pit crushing and conveying systems. It has delivered around 75 projects in more than 15 countries, according to Murray & Roberts.

“Terra Nova is a perfect fit for M&R’s mining platform and gives us the capability of delivering, for example, conveying systems of up to 12 000 t/h capacity,” da Costa says. “Its biggest market is North America but it is also active in South America and has an office in Santiago, in Chile. It has, in fact, just won a major contract in Chile.

Our intention is to grow the business by leveraging our global footprint. We will soon establish an Australian arm and we could also bring the company’s services to the African market.”

Commenting on the Insig Technologies acquisition, da Costa says the company is playing a key role in the mining platform’s move towards greater digitalisation of its operations.

“We’ve been working on a digital strategy for the mining platform for some time now and the acquisition of Insig is central to our digital journey,” he says. “Insig’s speciality is extracting data from underground mining environments in real time and then using this data to optimise operations. The company also has in-depth capability in the remote control of machines. We will be using its systems in house initially but will eventually market them to the wider mining industry.”

Interestingly, Insig is playing a key role in developing an energy-saving solution at an Australian mine where our Australian company is working. “Basically, we’re looking at capturing the energy that would normally be wasted in a hoisting shaft and storing it in batteries,” da Costa explains.

Insig Chief Technology Officer, Giacomo Alampi; Toran Filippi – Manager Operations Technology; Peter Ellery, Growth Executive; and Brett Hartmann – Manager Digital & Technology at Murray & Roberts, went into detail about this project in a discussion with IM earlier this year.

The Murray & Roberts mining platform consists of three regional businesses. These are Murray & Roberts Cementation, headquartered in Johannesburg but with branches in Kitwe in Zambia and Accra in Ghana; Cementation Americas (which incorporates Cementation USA), based in Salt Lake City, which handles the Americas; and RUC Cementation, which operates out of Perth in Australia and works throughout Australasia and South-east Asia.

Terra Nova to supply new stacker to Karara Mining’s magnetite operation

Terra Nova Technologies Australia (TNT Australia) says it has been awarded the replacement tailings stacker contract by Karara Mining Ltd at its magnetite mine, 200 km southeast of Geraldton in Western Australia.

Karara Mining is the largest mining operation and the first major magnetite mine in the Mid-West of the state. It produces a premium, high-grade concentrate product for export to steelmakers with an expected mine life in excess of 30 years.

The scope of supply will be to replace an existing stacker, TNT Australia said.

In partnership with TNT’s sister company, e2o, a subsidiary of Clough, the contract will include the supply of a new “fit for purpose” heavy-duty stacker able to withstand the rigours of a high-capacity mining environment along with the associated civil works, installation, commissioning and removal of the existing stacker.

This contract will be completed by TNT Australia and e2o, working in partnership as part of the Murray & Roberts ownership group.

The replacement stacker project, which commenced last month, is required to be concluded within 2022 in order to meet Karara’s schedule requirements.

Murray & Roberts’ Cementation Americas business wins Rio and BHP contracts

Murray & Roberts’ Cementation Americas business has confirmed two new mining contracts with Rio Tinto and BHP.

Cementation USA secured the Underground Characterisation Development and Infrastructure project in Utah for Rio Tinto’s Kennecott copper operations (open pit, pictured). The value of this agreement is circa-$70 million, with the initial scope including lateral development and associated infrastructure works.

Rio, only last month, approved a $108 million investment in underground development to enable early orebody access and undertake orebody characterisation studies for underground mining at the Kennecott copper operations.

The contract award positions Cementation USA well for the potential significant scope growth on this project, Murray & Roberts said.

Cementation Canada Inc has secured the completion of Phase 1 of the Jansen potash project in the province of Saskatchewan for BHP. This scope includes the post liner excavation, steel and equipping of the shaft.

The value of the complete project award, subject to a sanction decision for the project, is around $170 million. Cementation Canada has, in the interim, received a works order to proceed with the first work package to the value of $12 million.

BHP said last month that it expected to make a decision on whether to move forward with Jansen, which is expected to produce 4.4 Mt/y of potash in its first phase, in the next two months.

Cementation Canada will apply to also deliver the following phases of the Jansen project, Murray & Roberts noted.

Murray & Roberts said: “During the past year, mining companies in the Americas have experienced prolonged COVID-19 impact, creating short-term order book pressure for engineering and contracting companies. These awards are evidence of new mining investments returning to the region.

“The forecast improvement in capital investment in the mining industry is encouraging and, considering the platform’s leading global position and growing near term project pipeline, there is good potential for accelerated growth for the group’s mining platform.”

Wood to sell Terra Nova Technologies to Cementation Americas

Wood has agreed the sale of its Terra Nova Technologies business to Cementation Americas, a business owned by Murray & Roberts Holdings.

The sale of the conveying and material handling systems solutions business is expected to bring in cash proceeds of $38 million, Wood said, with closing expected in the June quarter.

David Kemp, Wood Chief Financial Officer, said: “Terra Nova Technologies has a strong track record in delivering material handling equipment to our customers. Wood’s strategy going forward is to focus on asset-light solutions rather than the manufacture/fabrication of equipment.

“The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.”

Terra Nova Technologies has complete design/supply and engineering procurement and construction capabilities. Its systems are custom engineered for the mining and mineral processing, iron, coal, aggregate, phosphate and cement industries.

Its renowned mobile stacking systems, including the patented Super Portable® systems, are used worldwide for copper, gold and uranium heap leaching operations as well as dry tailings stacking.

In a later release, Cementation Americas said TNT has earned a solid reputation for providing quality design, supply and commissioning services for crushing and screening plants, overland conveyors, heap leach systems and mobile stacking systems for waste and dry tailings.

Justin Oleson, President of Cementation Americas, said: “The purchase of TNT fits well within Cementation’s strategy to improve our ability to serve clients, both geographically and across the mining value chain. The combining of Cementation and TNT complements both our underground and surface design/build portfolios, and better positions Cementation to support our client’s total mining needs.”

Regarding the acquisition, Ron Kelly, President of TNT, said: “The combination of TNT and Cementation is an excellent fit strategically. We share several key customers, and together, we can provide these customers with enhanced value through a single source for products and services. There is also significant potential for TNT and Cementation to grow, expanding into new common markets.”

Murray & Roberts scores R4 billion of new mining projects

South Africa-based Murray & Roberts has recently been awarded R4 billion of new projects across Australasia and Mongolia.

The company’s oil and gas platform will work on a metals and minerals project in Australasia, while the same division will team up the underground mining platform to undertake the development of a copper mine in Mongolia.

Murray & Roberts said on these awards: “In the context of a constrained oil and gas market over the past four years, emphasis has been placed on complementary growth markets such as Australasia’s metals and minerals and infrastructure sectors, previously well serviced by the oil and gas platform.

“These project awards are a demonstration of the platform’s ability to secure project opportunities in complementary markets.”

Back in May, Murray & Roberts announced plans to take over South Africa’s Aveng Mining.