Tag Archives: NRW Holdings

Panoramic, Primero and Barminco get to work on restarting Savannah nickel operation

Panoramic Resources Ltd, after a 12-month review process, has approved the restart of the Savannah Nickel Operation, in the Kimberley region of Western Australia.

The decision hinges on a 12-year mine life with an average annual production target of 9,072 t of nickel, 4,683 t of copper and 676 t cobalt in concentrate; as well as an offtake agreement with Trafigura that will also see the trading company provide a loan facility of up to A$45 million to cover the A$41 million of upfront capital cost required to restart the mine.

Savannah is set to operate at average site all-in costs of A$6.36/lb of payable nickel, net of copper and cobalt by-product credits and royalty payments. This equates to roughly $4.86/Ib or $10,714/t.

Savannah, with more than A$100 million already invested, has been maintained since the suspension of operations in April 2020 with a view towards operational readiness and project optimisation. This includes the recent completion of the FAR#3 ventilation raise, underground capital development on four mining levels at Savannah North and ancillary capital works on surface and underground infrastructure, which are currently being completed, Panoramic said.

The restart decision has led to divisions of Perenti and NRW Holdings being awarded significant contracts related to the resumption of mining activities.

Barminco, a subsidiary of the Perenti Group, has been awarded a four-year underground mining contract under a binding letter of intent and is scheduled to mobilise to site in July 2021. The contract will be serviced by new underground mining equipment including the use of tele-remote mining equipment, expected to deliver both safety and productivity benefits, Panoramic said.

The contractor was formally awarded the A$200 million contract back in February.

“Based on Barminco’s previous working knowledge at Savannah, opportunities to increase ore production and reduce dilution have also been identified,” the company added, explaining that underground mining is planned to commence in August, with ore to initially be sourced from both the Savannah and the Savannah North deposits.

Following an evaluation of an owner-operator model for the processing plant and a competitive contract tender process, Panoramic has also signed a non-binding letter of intent worth A$35 million with Primero (owned by NRW Holdings), which envisages a three-year agreement. The agreement relates to all processing and maintenance work at the Savannah processing plant, which has been maintained in “excellent condition” during the suspension, Panoramic said.

“A number of opportunities for improved recoveries through enhanced operating practices and minor capital projects have been identified,” the company added. As a result, the non-binding letter of intent with Primero has been structured to incentivise achieving higher than budget recoveries.

Panoramic is working with Primero to complete a binding contract in the coming months, but ore processing is set to restart in November 2021, allowing ore stockpiles to build for around three months (100,000 t) to de-risk ore supply issues.

The process plant at Savannah was commissioned in August 2004 and comprises a single stage crusher, SAG mill, flotation, thickening and filtering stages to produce a bulk nickel, copper, cobalt concentrate. Over the 2004 to 2016 initial operating period, metallurgical recoveries averaged 86-89% for nickel, 94-97% for copper and 89-92% for cobalt. The plant was originally designed for a throughput of 750,000 t/y, but consistently outperformed the design specifications with rates exceeding 1 Mt on an annualised basis, Panoramic said.

First concentrate shipment from the Wyndham Port is targeted for December 2021.

NRW’s Golding to keep mining Wonbindi Coal’s Baralaba North operation

NRW Holdings Ltd says its wholly owned subsidiary, Golding Contractors Pty Ltd, has received a 12-month extension to its existing agreement with Wonbindi Coal Pty Ltd at the Baralaba North coal mine, in Queensland, Australia.

The award adds approximately A$120 million ($92 million) to the existing contract, which now extends to June 2022.

The extension cements the relationship between Golding and Wonbindi Coal where Golding has provided the contract mining services at the mine, maintaining and operating a wholly client owned fleet of equipment, producing an ultra-low volatile pulverised coal injection product since 2018. This original contract included overall mine planning; the removal of topsoil; drilling, blasting, loading and hauling overburden; loading and hauling of coal; and handling coal through the crushing and screening plant.

NRW Holdings bags mining contract at NRR’s Roper Bar iron ore project

NRW Holdings has been awarded the mining contract for Nathan River Resources’ Roper Bar iron ore project in the Northern Territory of Australia.

Roper Bar has a fully integrated ‘pit-to-port’ logistics chain including a privately-owned 171-km paved access road to an existing barge load-out facility and product stockyard, according to NRW.

The project was commissioned in October 2020 with first direct shipping ore (DSO) exports in November. Production ramp-up is nearing completion, with four vessels now completed (around 220,000 t). An offtake agreement exists between Glencore and NRR for the marketing and distribution of iron ore from the project.

This contract award covers the Stage 1 operations at Roper Bar, with production of 4.6 Mt of DSO and 1 Mt of dense media separation production at 1.5-1.8 Mt/y over three years. The contract scope includes drill and blast, load and haul, clearing and grubbing, top-soil and subsoil removal and rehandling of ore stockpiles.

The contract value is circa-A$123 million ($95 million) and has a duration of 33 months. At its peak, there will be around 55 site-based personnel on the project.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is pleased to be involved in the recommencement of the Nathan River mine site and looks forward to its successful execution.”

RCR and Primero Group to deliver crushing and conveying system for Fortescue

RCR Mining Technologies and Primero Group are to work together on delivering a primary crushing plant (PCP) and overland conveyor (OLC) for the Queens project at Fortescue Metals Group’s Solomon Hub operations in the Pilbara of Western Australia.

RCR, a wholly owned subsidiary of NRW Holdings, was awarded the A$80 million ($61.8 million) contract by Fortescue, with Primero being sub-contracted a A$30 million package to provide engineering support and construction services for the PCP and OLC.

RCR previously delivered the Hopper 9 Crushing Facility at Fortescue’s Cloudbreak mine, with the latest award “strategically significant for the business as it showcases our engineering-led delivery of innovative solutions”.

Civil construction and earthworks will be undertaken by NRW’s Civil division, while RCR and DIAB Engineering, together with Primero, “bring a very strong design, manufacture and construction capability to this project with an engineering-led philosophy of solutions and innovation”, NRW said.

NRW Holdings is in the middle of trying to take over Primero following a cash and shares bid that values Primero at A$100 million.

NRW Holdings to add further mining/metals EPC capabilities with Primero acquisition

NRW Holdings is in pole position to take over Primero Group following a cash and shares bid that values Primero at A$100 million ($74 million).

Primero Directors, who own around 30% of Primero’s equity, have unanimously recommended its shareholders accept the offer in the absence of a superior proposal coming forward.

The addition of Primero, NRW says, would provide significant engineering, procurement and construction (EPC) capability to NRW’s renamed “Minerals, Energy & Technologies” business pillar.

For Primero, meanwhile, it would deliver a “meaningful premium” to recent market trading levels and avoid the need for a potential significantly dilutive capital raising to fund working capital required to deliver its 2021/2022 financial year contracted order book, NRW said. Primero currently has a contracted order book for FY21 of circa-A$285 million and holds preferred EPC contractor status across multiple projects totalling circa-A$900 million.

Managing Director of NRW, Jules Pemberton, said: “The acquisition of Primero will provide NRW with the opportunity to expand its Minerals, Energy & Technologies specialised capability and to leverage the combined expertise of both companies to pursue new business initiatives across a large pipeline of opportunities.

“It builds on NRW’s recent acquisitions of DIAB Engineering and RCR Mining Technologies and represents a further diversification of our strategic platform to offer clients continuity of services across the whole lifecycle of resource projects – from early planning, design, development, construction to operations and maintenance. In addition, Primero is also well positioned to future-focused energy solutions, including lithium and hydrogen technologies.”

Primero Managing Director, Cameron Henry, added: “The combination of NRW’s diversified delivery model coupled with the Primero capabilities will provide our client base with a unique end to end delivery model that will differentiate within the current market and will rapidly accelerate Primero’s growth strategy.

“Our teams have been working well at multiple levels together over the past 12 months and have several projects currently approaching delivery stage that will showcase the model.”

Detailed information relating to the offer will be set out in the Bidder’s Statement and Target’s Statement, which are expected to be dispatched to Primero shareholders in late November and early December 2020, respectively, the companies noted.

NRW Holdings to keep mining Gascoyne’s Dalgaranga gold project

NRW Holdings says it has reached agreements with Gascoyne Resources to keep providing services at the Dalgaranga gold mine, in Western Australia, following the ASX-listed miner’s successful A$125 million ($89 million) recapitalisation process.

NRW has agreed binding terms with Gascoyne for an extension of both mining and drill & blast services for the full life of mine at Dalgaranga, which increases the overall contract value by circa-A$180 million.

In terms of the recovery of all pre-administration debts owed to NRW, it has received A$7 million in cash, as foreshadowed in Gascoyne’s recapitalisation agreement, and received 24 million Gascoyne shares (post-consolidation) valued at A$12 million at the issue price of Gascoyne’s A$85.2 million equity raising. NRW will also receive a further A$13.7 million linked to ounces produced at Dalgaranga and the gold price.

In addition to this, NRW also exercised its rights as part of the Gascoyne Entitlement Offer and now holds, in total, 36.9 million shares in the gold miner (post-consolidation).

Commenting on the work undertaken with Gascoyne and FTI as administrators, Andrew Walsh, NRW’s CFO, noted: “We have worked closely with the teams in both Gascoyne and FTI to support the recapitalisation plan recognising that a viable Dalgaranga project was critical to the success of that process. Output from the project has been consistently above 6,000 oz/mth for most of this year which has provided the basis for a great solution for both Gascoyne and NRW.

“Recent announcements on potential additional resources will provide opportunities for NRW to provide additional services beyond the current life of mine plan.”

Newly acquired NRW Holdings companies to work on Tanami Expansion 2

In announcing an encouraging 10-month financial performance, NRW Holdings revealed its RCR Mining Technologies (RCRMT) division, working in tandem with DIAB Engineering, had been awarded a works contract at Newmont’s Tanami Expansion 2 project in the Northern Territory of Australia.

In an update on the company’s performance to the end of April, NRW Holdings said it had generated A$1.6 billion ($1.05 billion) of revenue in the 10 month-period from June 2019, representing a record revenue for the group compared with any previous full financial year.

Over this period, the company had progressed with the integration of the BGC Contracting business into the group, following the acquisition at the end of last year.

On contract news, the company said RCRMT and DIAB Engineering, which the company acquired through the BGC buy, had secured a A$17 million fabrication package for Tanami Expansion 2, with the companies manufacturing the head frame and skyshaft steel work for the project.

Jules Pemberton, NRW’s Chief Executive Officer and Managing Director, said: “The award by Newmont to RCRMT provides an opportunity to bring both RCRMT and DIAB Engineering (acquired as part of the BGC Contracting transaction), together to deliver this important project.

“The ability to deliver this work from our regional facilities, in Bunbury, Geraldton and our Welshpool facility, to a major Australian project reflects the growing capability of NRW in the Australian manufacturing sector to provide specialised capital equipment for mining clients.”

Newmont’s board signed off on the TE2 project in October 2019. The expansion includes construction of a 1,460 m shaft, additional capacity in the processing plant, and supporting infrastructure to enable profitable recovery of ore at a depth of 2,140 m below surface.

NRW Holdings to upgrade Olympic Dam airport

NRW Holdings’ wholly-owned subsidiary, NRW Contracting, has been awarded an airport upgrade contract with BHP at its Olympic Dam copper-gold-uranium project, in South Australia.

The scope of works includes two separable portions:

  • Airside works – includes bulk earthworks, pavement construction and drainage works for the construction of a new 1,860 m long runway and refurbishment of the existing taxiway and extension of the apron areas; and
  • Landside works – includes reinforced concrete works, structural steel and modular structures and all services for the upgrade of the existing terminal building and the surrounding infrastructure.

The new contract value is circa-A$48 million ($28 million) and is expected to have a duration of around 37 weeks with works commencing in late March.

The project will have an expected peak workforce of around 140 (including subcontractors), according to the company.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is delighted to be awarded this contract at Olympic Dam following the successful acquisition of the BGC Contracting business.

“NRW has a long history with BHP in their iron ore, coal and nickel divisions but this contract marks the first project for the copper operations. I look forward to the safe and successful execution of the works.”

NRW Holdings wins bulk earthworks assignment from Iron Bridge project partners

NRW Holdings is about to mobilise a team to carry out bulk earthworks at Fortescue Metals’ majority-owned Iron Bridge magnetite project in Western Australia.

The contractor confirmed it had received a notice of award for the bulk earthworks assignment from the Iron Bridge joint venture (between FMG subsidiary FMG Iron Bridge and Formosa Steel IB) and, while the award remained subject to finalisation, it had been directed to commence mobilisation.

The $2.6 billion Iron Bridge project will see the development of a new magnetite mine (including processing and transport facilities) and associated infrastructure. It will support production of 22 Mt/y (wet) of high grade (67% Fe), magnetite concentrate product, according to the partners. Production is expected by mid-2022. The Iron Bridge site comprises the North Star, Eastern Limb, Glacier Valley and West Star magnetite iron ore deposits and is 145 km south of Port Hedland.

The contract scope for NRW includes the bulk earthworks and drainage for roads, processing plant and infrastructure for the new mine site development. The contract value is around A$70 million ($47 million) and is expected to have a duration of around 45 weeks, NRW said. At its peak, there will be some 200 site based personnel required for the project.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is pleased to be involved in this exciting new project with Fortescue and looks forward to its successful execution.”

NRW receives BGC contract win at FMG’s Eliwana project

NRW Holdings’ newly acquired BGC Contracting business has been awarded an infrastructure contract with Fortescue Metals Group at its Eliwana iron ore mine and rail project, in the Pilbara region of Western Australia.

The new contract, which came just two weeks after NRW announced the completion of the BGC acquisition, will support the development of 143 km of rail for the Eliwana project, according to the contractor.

The scope includes the construction of circa-65 km of rail formation, including earthworks, roadworks, drainage works and construction of bridges and pre-cast structures. The contract is valued at close to A$138 million ($96 million) with mobilisation expected to commence soon (completion is scheduled for late 2020). At its peak, the project will employ an expected workforce of 400, utilising over 140 pieces of major plant in the process.

Jules Pemberton, NRW’s CEO and Managing Director, said: “Following the successful acquisition of the BGC Contracting business, NRW’s operational delivery capabilities in the Pilbara are further enhanced, through the addition of the highly skilled BGC workforce into the group, together with the strong technical skillset to safely and successfully deliver the large bridges and concrete structures required on the project.”

In addition to the building of 143 km of rail, Eliwana will include a 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1.