Tag Archives: Northern Territory

TNG signs up Genesee & Wyoming Australia for Mount Peake freight job

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TNG Ltd says it has entered into a binding heads of agreement (HoA) with Genesee & Wyoming Australia (GWA), the third-largest rail operator in Australia, for the provision of rail haulage services for its flagship, 100%-owned Mount Peake vanadium-titanium-iron project, in the Northern Territory.

Genesee & Wyoming is a global railroad owner and operator with extensive experience in the transport of bulk commodities for the resources industry, and is the majority owner of the rail line to Darwin that runs approximately 1,100 km from the Mount Peake mine site, according to TNG.

Rail haulage will underpin the logistics chain transporting the magnetite concentrate to be produced by the proposed beneficiation plant at the Mount Peake mine site to the proposed TIVAN® processing facility in Darwin, where TNG intends to produce high-purity vanadium pentoxide, titanium pigment and iron ore fines.

The scope of services includes the loading of magnetite concentrate onto rail at the Adnera rail siding (proposed to be located 85 km from the mine site), rail haulage from Adnera to the TIVAN facility, in Darwin, on the Tarcoola-to-Darwin rail line, and the unloading of magnetite concentrate at the TIVAN facility.

GWA will also load and transport TNG’s final products from the TIVAN facility to the Darwin Port, providing all necessary rail transport plant and equipment, including locomotives, wagons, crew vans and fuelling equipment.

“Following execution of the HoA, TNG and GWA will work together on an exclusive basis, and commit the necessary resources, to develop an optimised rail haulage strategy for Mount Peake, and negotiate and finalise a rail haulage agreement,” TNG said.

TNG’s Managing Director and CEO, Paul Burton, said: “GWA’s presence and expertise in logistics and transportation further strengthens TNG’s global network of high-quality partners assigned for the development and operation of Mount Peake.” This includes the likes of McMahon Services and SMS Group.

An updated definitive feasibility study on Mount Peake from 2017 envisaged pre-production capex of A$853 million ($617 million) for a 3 Mt/y project ramping up to 6 Mt/y in year five. This would see 24.3 Mt of magnetic concentrate turned into 10.6 Mt iron oxide and 243,000 t of vanadium oxide.

Commercial launch for CSIRO’s ‘Going for Gold’ process technology

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On the back of successful industry trials and the first gold pour last year, Australia’s national science agency, CSIRO, says it will transfer its ‘Going for Gold’ process technology to Australian company, Clean Mining Ltd.

The alternative gold recovery process technology, which dispenses with toxic cyanide and mercury currently used in most gold production processes worldwide, could open the door for Australian and international gold miners and end users to capitalise on demand for sustainable processes and products, according to CSIRO Research Program Leader, Dr Chris Vernon.

“Cyanide is used in about 75% of global gold production, and while the industry works to manage the associated risks, there have been recent toxic spills overseas that have caused great concern to communities,” Dr Vernon said.

“Developing an alternative process, which eliminates hazardous chemicals while maximising gold recovery, meets industry and consumer demands for more sustainably-produced gold.”

The CSIRO-developed ‘Going for Gold’ process replaces cyanide with a reagent, known as thiosulphate, creating a relatively cost-effective, non-toxic and safe alternative to conventional cyanide-based gold recovery process, according to CSIRO.

Clean Mining will deliver the new technology solution to a global market of gold producers, offering technology products and licences as well as turn-key processing plant options, plus equipment and product support throughout the mine life.

Clean Mining Managing Director, Jeff McCulloch, says the technology is suitable for new greenfield mines, locations where cyanide cannot be used or is banned, as well as in existing mines looking to upgrade and transition to the new technology.

“This technology provides gold miners with an opportunity to proactively evolve their environmental, social and governance standards,” McCullloch said.

“This new technology literally delivers a new gold standard for the global gold industry.

“The technology is scalable and cost effective, and the process has been tested and proven at an industrial-scale to deliver commercially viable results.”

Clean Mining is currently in negotiations with ICA Mining Services Pty Ltd in the Northern Territory of Australia to commission the first commercial plant to process gold using this technology, and with Nu-Fortune Gold to commission a plant in the Goldfields of Western Australia.

McMahon welcomed to TNG Mount Peake vanadium-titanium-iron team

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TNG has engaged construction group McMahon Services to progress the program of work for the non-process infrastructure (NPI) requirements for its flagship 100%-owned Mount Peake vanadium-titanium-iron project, in the Northern Territory of Australia.

The contract encompasses the NPI at both the Mount Peake mine site, located 235 km north of Alice Springs, and the Darwin TIVAN® processing facility, and will be undertaken in parallel with the front-end engineering and design study for the project being progressed by SMS group.

The NPI requirements for the project include but are not limited to haul roads, airfield upgrades, concentrate handling infrastructure, water and power infrastructure, accommodation facilities and concentrate storage facilities, TNG said.

As part of its engagement, McMahon will advance the existing NPI planning developed by TNG and finalise detailed scopes of work and scheduling for the NPI across both sites. MCM will then work collaboratively with TNG to develop the tendering documents and implement the strategy and delivery framework for the NPI works packages.

“This will extend to any approvals, capital budgeting and detailed project scheduling, enabling progression into the detailed design and ultimately construction phases with selected contractors, in a manner consistent with TNG’s project execution strategy,” TNG said.

TNG’s Managing Director and CEO, Paul Burton, said: “We have been able to establish a global network of high-quality partners in the fields of engineering, project financing and product off-take to help us advance this world-class project towards financing and construction. We are delighted to add McMahon Services – a high calibre Australian contractor with an existing strong footprint in the Northern Territory – to our project development team.”

An updated definitive feasibility study on Mount Peake from 2017 envisaged pre-production capex of A$853 million ($617 million) for a 3 Mt/y project ramping up to 6 Mt/y in year five. This would see 24.3 Mt of magnetic concentrate turned into 10.6 Mt iron oxide and 243,000 t of vanadium oxide.

RCT fuel cap protection system finds its way to Northern Territory gold mine

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RCT has recently completed a project to install its fuel cap protection system at an underground mine in a remote part of the Northern Territory in Australia.

The gold mine’s fleet of 17 Epiroc MT6020 underground haul trucks are now equipped with RCT’s Muirhead® Fuel Cap Isolation system, which has been devised to prevent incidents when refuelling.

This protection system helps clients eliminate damage to refuelling bays and save money in downtime costs associated with operators accidentally driving off with the nozzle still attached, according to RCT.

“The implementation of the Fuel Cap Isolation system is just another way of safeguarding operators,” the company said.

Newmont powers up at Tanami gold mine in Australia

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Newmont Mining says it has completed the Tanami power project, in the Northern Territory of Australia, safely and on schedule.

The project included the installation of two power stations, a 66 kV interconnected power line, and a 450 km natural gas pipeline. The pipeline was built and will be maintained by Australian Gas Infrastructure Group, while the power stations were constructed and will be operated by Zenith Energy. Capital costs are estimated at approximately $245 million with annual cash lease payments over a 10-year term beginning in 2019.

The successfully completed project is expected to provide the Tanami gold mine a safe and reliable energy source while lowering power costs and carbon emission by 20%, Newmont said. The project is expected to generate net cash savings of $34/oz from 2019 to 2023, delivering an internal rate of return of greater than 50%.

Newmont Chief Executive Officer, Gary Goldberg, said: “In addition to lowering costs and carbon emissions, the completed Tanami power project will pave the way to further extend the life of the operation.

“Consistent execution and delivery remain the hallmark of our ability to generate free cash flow and create long-term value for our shareholders and other stakeholders. Completion of the project coincides with Tanami pouring its 10 millionth ounce of gold on the back of record production of 500,000 oz last year. This achievement is a testament to the skill of our team as well as our valued partnership with the Walpiri people, the Traditional Owners of the land.”

Tanami is Australia’s second largest underground gold mine and one of the most cost competitive gold producers in the world, according to Newmont. Newmont’s continued exploration work at Tanami has created the potential to extend mine life beyond 2028, with additional upside through a possible second expansion project the company expects to make a full funding decision on in the second half of 2019. Last year, more than 800,000 oz of gold resources were converted into reserves from Tanami’s Auron orebody.

Diesel power up and running at Tanami gold project, Zenith Energy says

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Zenith Energy says it has achieved completion on the diesel portion of its 62 MW power station for Newmont Mining’s Tanami gold mine in the Northern Territory of Australia.

The remote power generation specialist said it had energised the 42 km 66 kV interconnect between the Dead Bullock Soak and Granites sites, enabling transmission of power for the site in line with previous estimates.

The agreement between Zenith and Newmont – a build, own and operate (BOO) contract for a 62 MW power station at the mine – is the largest such power purchase agreement Zenith has signed to date. It is for an initial 10-year term, with an option to extend the contract for a further 10 years.

“Zenith is also delighted to confirm that the supply commencement milestone of Q1 2019 has been successfully achieved, with numerous complex design, engineering, logistics and construction challenges met and overcome, resulting in the on‐time, on‐budget and safe completion of this landmark project by Zenith’s world‐class team,” Zenith said.

The power station comprises 52 MW of gas‐fired and circa 10 MW of diesel (back‐up) power generation. Zenith said: “To put the scale of the power station in perspective, the average Australian household consumes circa 25 kWh/d of power, whereas the Tanami facility will produce upwards of 864,000 kWh/d.”

With the completion of this facility, Zenith has 428 MW of total generation capacity under control.

The design and construction phase for Tanami required the transport of three 150‐t Wartsila 34DF generators by road train from Fremantle in Western Australia; a 3,000 km journey (pictured) taking more than one week to complete, according to Zenith.

Managing Director of Zenith Energy, Hamish Moffat, said: “The construction of our 62 MW power station at Tanami, on time and within budget, is testament to the capability and commitment of the entire Zenith Energy team. As the largest BOO hybrid gas‐diesel project we have undertaken, completion of the Tanami power station is a major milestone for Zenith.

“Diesel-fuelled electricity supply from the facility has commenced and gas supply is imminent. We look forward to delivering cost‐effective, reliable power to Newmont’s Tanami operation for years to come.”

Newmont’s Tanami underground gold mine produced 419,000 oz of gold (attributable to Newmont) in 2017.

Gas starts flowing from AGIG’s 440 km Tanami pipeline

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Australian Gas Infrastructure Group (AGIG) says it has commissioned Australia’s newest major natural gas pipeline project ahead of schedule.

The 440 km Tanami Natural Gas Pipeline was recently given the final signoff to start operating by the Northern Territory Government. It will fuel the power stations at Newmont Mining’s Tanami gold mine in the Northern Territory.

AGIG’s Chief Customer Officer, Andrew Staniford, said: “We have now commissioned the pipeline and gas is already flowing into Newmont’s Tanami mine site.”

Staniford said the final go-ahead for the pipeline to move into full operational mode followed the introduction of gas and extensive commissioning and testing of the pipe and the facilities at the pressure under which the pipeline will operate. Operations were initially expected to start up in the March quarter.

“These tests were successfully undertaken by AGIG and independently verified, thereby enabling the final approval to be given,” he said.

AGIG was, last year, awarded the contract by Newmont to build, own and operate the new 440 km pipeline, which transports gas to the Newmont mine site, about 540 km northwest of Alice Springs, in the Northern Territory.

Staniford said: “To deliver the project safely and ahead of schedule for Newmont and its operating gold mine is a feather in the caps of all involved and has further cemented AGIG’s proud position as a leading provider and operator of key energy infrastructure throughout Australia.”

The new NT pipeline follows the alignment of Tanami Road and passes through a mix of pastoral land, Aboriginal freehold land and Crown land.

Newmont’s Tanami underground gold mine produced 419,000 oz of gold (attributable to Newmont) in 2017.

Primero, Qube and Lucas TCS named contractors at Core’s Finniss lithium project

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Australia-based Core Lithium has awarded preferred contractor status for three key components of its 100%-owned Finniss lithium project, near Darwin in the Northern Territory.

The three contractors are key participants in the development team Core is assembling following the granting of the first mining licence earlier this month, it said.

Primero Group has been named the preferred engineering procurement and construction (EPC), and front-end engineering and design (FEED) contractor. Primero has worked on several Australia hard-rock lithium projects including Pilbara Minerals’ Pilgangoora operation and Tawana/Alliance’s Bald Hill mine.

Meanwhile, Qube Bulk Pty has received the status of preferred provider of haulage and transport solutions for Finniss, with Lucas Total Contract Solutions selected as preferred mining services contractor.

Core said it would work with all three companies to finalise contract terms that “reflect the most cost-effective and time-efficient solution for Finniss”.

The FEED study by Primero is underway to improve the accuracy of the EPC estimate on the 1 Mt/y processing plant and associated infrastructure at Finniss, the company said.

In line with its construction schedule, Core is targeting first production of spodumene concentrate from Finniss by the end of 2019.

Core’s Managing Director, Stephen Biggins, said: “These key contract roles are crucial for the success of the Finniss lithium project, so we did not make our decisions on who should be awarded these packages of work lightly. We believe we have selected the best contractors for the respective contracts out a field of worthy contractors, and look forward to working with Primero, Lucas TCS and Qube once the contracts have been finalised and the next phases of work at Finniss get underway.”

He added that final award of the contracts would follow the completion and release of a definitive feasibility study on Finniss, in addition to financing of the project.

Core’s development of Finniss is initially centred on production from the high-grade Grants deposit as an open-pit mining operation and construction of a 1 Mt/y dense media separation process plant to produce a 5% Li2O spodumene concentrate for export.

The prefeasibility study on the project envisaged a total capex of A$53.55 million ($38 million) and A$168 million (pre-tax) in free cash generation over a period of 26 months based on a price of $649/t for its concentrate.

HPGR and ore sorting stack up for Vista Gold’s Mt Todd gold project

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Toronto and New York-listed Vista Gold reports recent high pressure grinding roll (HPGR) crusher and ore sorting tests on high-grade samples at its Mt Todd gold project, in the Northern Territory of Australia, have confirmed previous test results.

The company has also announced plans to complete fine grinding and leaching tests in the March quarter and to follow these results with updated prefeasibility study (PFS) economics in the June quarter.

Vista said additional HPGR and ore sorting tests were completed on two, 2.5 t samples from Mt Todd’s Batman deposit containing 1.39 g/t and 1.70 g/t gold, respectively. This testing programme confirmed two important results:

  • HPGR crushing, followed by screening, results in increased concentration of gold in the fine fraction, and;
  • The small amount of gold lost in the rejected material is proportionally lower when sorting higher-grade material.

As with previous tests, the samples were HPGR crushed at the facilities of ThyssenKrupp Industries in Germany and screened at 16 mm. The coarse fraction (+16 mm) was sent to the facilities of Tomra Sorting Solutions in Germany, where two-stage (X-ray Transmission and laser) sorting tests were completed using production-sized and commercially available equipment. The following table summarises the results of the testing programme for each of the samples and compares these results to previous bulk tests on low-grade samples:

Sample

(g Au/t)

 Sorter Feed (+16mm) Sorter Product Sorter Reject Gold Loss (%)
Fraction of Total Sample (%) Grade

(g Au/t)

 Fraction of Total Sample (%) Grade

(g Au/t)

 Fraction of Total Sample (%) Grade

(g Au/t)
1.39 17.8% 0.731 9.4% 1.238 8.4% 0.158 1.0%
1.70 18.6% 0.737 10.3% 1.239 8.3% 0.110 0.7%
Previous Results
0.63 17.5% 0.533 10.5% 0.817 7.0% 0.103 1.1%
0.34 17.8% 0.255 11.0% 0.365 6.8% 0.075 1.5%
0.67 18.7% 0.619 11.3% 0.901 7.4% 0.192 2.0%

Frederick Earnest, President and Chief Executive Officer, said the tests confirmed the benefit of ore sorting for Mt Todd and demonstrated lower gold losses with higher grade crusher feed.

“We attribute these results to the favourable characteristics of the Batman deposit. Simply stated, the gold-containing sulphide minerals and quartz/calcite veining are more easily broken into small particles than the non-mineralised host rock,” he said. “Where this breakage does not result in clean separation from the host rock in the first pass of HPGR crushing, the gold-bearing minerals are easily identified and separated in the ore sorting circuit.”

The results complement Vista’s previously announced fine grinding and leaching test results, Earnest said, adding that he expects them to support additional improvements in the economics of the Mt Todd gold project when the PFS is published later this year.

The crushed and sorted samples have been transported to the facilities of Resource Development Inc, where sample preparation has been completed for assaying and additional fine grinding, leaching and tailings characterisation tests.

Samples are being sent to Core Metallurgy Pty to obtain additional fine grinding data simulating grinding in the horizontal IsaMill and to the FLSmidth Minerals Testing and Research Center to obtain data simulating grinding in the vertical VPX Mill.

“Both tests will target a final product size of 38-45 microns and will generate a sufficient volume of material for subsequent leach tests,” the company said, adding the fine grinding and leach tests were expected to be completed in the March quarter, with final results expected in the following quarter.

The company has completed additional tailings characterisation tests and concluded that no material design changes are required to proceed to the economic analysis using a final grind size of 38-45 microns.

TNG “de-risks” Mount Peake vanadium-titanium-iron project with SMS contract

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TNG has signed up SMS Group to carry out the front-end engineering and design (FEED) phase of its Mount Peake vanadium-titanium-iron project in the Northern Territory of Australia.

The mandate for the contract encompasses the Mount Peake concentrator, the TIVAN® processing plant and all associated plant and equipment.

The two companies have been working together on the TIVAN process for some time. The process, developed by the two companies and Perth, Australia-based metallurgical consultants METS and the CSIRO, has been primarily designed for hydro-metallurgical extraction of vanadium, preferably as vanadium pentoxide, from a titano-magnetite orebody and also for separating the titanium and iron, preferably as ferric oxide and titanium dioxide.

The process has undergone more than six years of development including several successful pilot plant test stages, and is designed to use conventional and existing equipment currently used in extractive resources, TNG says.

In addition to the FEED contract for the process, plant and equipment, SMS’ scope will include providing a proposal for full procurement and construction, including the balance of plant and equipment to be provided on a turnkey, single-source, fixed price EPC basis.

Under the contract, SMS will now design and engineer the entire processing flowsheet for Mount Peake, which includes the concentrator, where magnetite concentrate is to be produced, and the downstream processing plant, where three high-purity products – vanadium pentoxide, titanium dioxide and iron oxide – will be produced.

Interestingly, SMS has agreed to provide to TNG production quantity, production rate and production quality guarantees, elements TNG Managing Director Paul Burton (pictured, left) said would significantly “de-risk” the project.

SMS’s responsible Managing Director Herbert Weissenbaeck (pictured, right) said the agreement was the logical next step in the development of TIVAN and Mount Peake – “which together have the potential to essentially disrupt the TiO2 pigment and vanadium space”.

The downstream processing plant will use TNG’s 100%-owned TIVAN process. The scope of work for the plant will include a titanium pigment plant – to be developed in collaboration with its nominated sub-contractor Ti-Cons.

An updated definitive feasibility study on Mount Peake from 2017 envisaged pre-production capex of A$853 million ($617 million) for a 3 Mt/y project ramping up to 6 Mt/y in year five. This would see 24.3 Mt of magnetic concentrate turned into 10.6 Mt iron oxide and 243,000 t of vanadium oxide.