Tag Archives: Olive Downs

Sedgman extends working relationship with Pembroke Resources at Olive Downs

Coal technology, Mine operation news, Mining services, , , , , , ,

CIMIC Group’s minerals processing company, Sedgman, has secured an operations and maintenance contract at Pembroke Resources’ Olive Downs Complex in the Bowen Basin of Queensland, Australia.

The five-year contract is expected to generate revenue for Sedgman of A$125 million ($80.3 million).

Sedgman and CPB Contractors, also a CIMIC Group company, have been working together to deliver an end-to-end solution for the Olive Downs Complex processing plant since mid-2022. These additional works will extend the scope of work for Sedgman to include optimising operations, enhancing efficiency and elevating productivity at the facility.

CIMIC Group Executive Chairman, Juan Santamaria, said: “It is great to see Sedgman extend its relationship with Pembroke Resources, to deliver high standards in minerals processing using sustainable practices, leading technology and a focus on positive outcomes for local communities.”

Sedgman’s expertise and advanced digitisation is providing clients with innovative design, construction and operations solutions, the company says. These are dedicated to delivering excellence in minerals processing and reducing lifecycle emissions, net water usage and environmental footprint.

Sedgman Managing Director, Grant Fraser, said: “We are honoured to work with Pembroke Resources. The Sedgman team’s commitment to delivering tailored solutions aligns with our partners’ vision for operational success, efficiency and leading safety performance. It is our objective to drive increased throughput, reduced downtime, and enhanced asset integrity.”

NRW Holdings banks Olive Downs, Mt Webber work

Coal technology, Comminution of minerals, Mine operation news, Mineral project development, Mining services, Steel and iron ore, , , , , , , , , , ,

NRW Holdings has added more work to its roster with confirmation of projects from the Olive Downs coking coal project in Queensland and the Mt Webber iron ore mine in Western Australia.

Golding Contractors, a subsidiary of NRW, has secured the rail civil construction contract for the Pembroke-owned Olive Downs project.

The civil works to be undertaken include a new 19-km rail loop for the new steelmaking coal project, including all earthworks, drainage culverts and construction of two new rail bridges. The scope also includes importing capping material up to underside of ballast.

The contract is valued at circa-A$52 million ($35 million) and is expected to have a duration of 14 months. In addition, Golding has also been awarded circa-A$15 million of bulk earthworks, drainage and roadworks relating to the new coal handling processing plant at Olive Downs.

Olive Downs is being developed to produce up to a forecast 15 Mt/y of saleable coal over its 79-year mine life.

NRW has also received an executed contract extension from Atlas Iron Pty Ltd for the mining and crushing services works at Mt Webber.

Some 220 km south of Port Hedland in the Pilbara Western Australia, Mt Webber has two mining areas in Fender and Dalton, which produces a high-grade lump and fines product that is used in the Atlas Iron supply chain.

The works to be continued include load & haul, drill & blast and run-of-mine re-handling and crushing and screening. The drill & blast and crushing components are to be undertaken by NRW’s wholly owned subsidiaries, Action Drill & Blast Pty Ltd and Primero Pty Ltd. Primero has designed, constructed and will operate a new PGX-1000 crushing plant to allow crushing and screening of up to 1,000 t/h.

The anticipated value of the contract extension is circa-A$60 million over a duration commencing July 2022 and expected to be completed by the end of 2024 with a project workforce averaging around 80 personnel.

Queensland set to welcome Olive Downs project to coking coal ranks

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Queensland looks like adding a new coking coal mine to its ranks after the state government approved mining leases for Pembroke Resources’ Olive Downs project.

The granting of the leases follows approvals from the Department of Agriculture, Water and the Environment under the Environment Protection and Biodiversity Conservation Act in early 2020, and the grant of the Environmental Authority by the Queensland Government in 2019.

Pembroke Chairman and Chief Executive Officer, Barry Tudor, thanked Minister Anthony Lynham for the mining lease approvals, saying they were the final approval hurdle to commence the first 6 Mt/y stage of the project.

Olive Downs is expected to create over 1,000 new jobs in the region as the project is developed to produce up to a forecast 15 Mt/y of saleable coal over its 79-year mine life.

CIMIC Group companies Sedgman and CPB Contractors will carry out the design, procurement, construction and commissioning of the operation’s coal handling and preparation plant, which will have sufficient capacity to process the first phase of annual production of up to 6 Mt of run of mine coal from Olive Downs, according to Pembroke.

“We are extremely pleased to have been granted the mining leases, having consulted extensively with the local community over the past four years,” Tudor said. “In addition to our commitment to the environment, we have focused on creating local jobs and proactively engaged with all stakeholders, including establishing a strong relationship with Barada Barna as the traditional owners of the land, with whom we have an Indigenous Land Use Agreement and Cultural Heritage Management Plan in place.”

With some 838 Mt of JORC resources and 514 Mt of open-cut JORC reserves of coking coal, Olive Downs is widely acknowledged as a potential Tier One steelmaking coal project, Pembroke says. Strategically positioned in the Bowen Basin and with access to infrastructure, the project will supply steelmaking coal to markets globally and continues to attract strong interest within the industry across Asia, including Japan, Korea and China.

Olive Downs has already assembled the key elements required to commence construction following the grant of the mining leases, including securing access to power, water, rail and port, even as finance and offtake partners are finalised.

Olive Downs is 100% owned by Pembroke, an Australia-based specialist steelmaking coal company and is backed by its major shareholder, Denham Capital, a leading global energy and resources private equity firm.

Pembroke’s 15 Mt/y Olive Downs coking coal project moves closer to construction

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Start-up of Pembroke Resources’ Olive Downs coking coal project in Queensland, Australia, has edged closer after the company confirmed it had received project approvals from the Department of Agriculture, Water and the Environment under the Environment Protection and Biodiversity Conservation (EPBC) Act.

The EPBC approvals, together with the grant of the Environmental Authority (EA) by the Queensland Government in 2019, provide a clear pathway to grant of the mining leases and the commencement of construction and creation of over 1,000 new jobs in the region, Pembroke said.

Included in the environmental conditions accepted by Pembroke is a A$1 million ($653,655) contribution to improving long-term conservation of koalas and greater gliders in the Bowen Basin of Queensland, according to Sussan Ley, Australia’s Minister for the Environment.

“The federal and state approvals endorse the company’s intent to deliver strong environmental outcomes,” it said. “The project pathway has also benefited from being a Tier One steelmaking coal project in an established mining basin with access to established infrastructure.”

The federal environmental approvals authorise activities for Olive Downs’ 79-year mine life and provide the conditions for the operation of the mine and the associated infrastructure corridors, including environmental obligations.

Olive Downs has 838 Mt of open-pit JORC resources and 514 Mt of JORC reserves of a globally recognised product like other well-accepted Bowen Basin brands, it said. Pembroke plans to commence site construction following the grant of the mining leases and is forecasting up to 15 Mt/y of saleable coal production over its 79-year mine life.

Back in 2019, CIMIC Group’s Sedgman and CPB Contractors were awarded a contract by Pembroke to design, procure, construct and commission the coal handling and preparation plant at Olive Downs.

Pembroke Chairman and Chief Executive Officer, Barry Tudor (pictured), said: “This is an exciting time for the company and the region’s wider community. The EPBC approvals, and the EA, which was granted last year, represent key milestones for the project.

“The next key milestone is securing the grant of the mining leases, which will enable us to commence construction. We anticipate these to be granted in the coming months and look forward to construction and employment commencing shortly after this.”

In addition to employment and its contribution to the local economy, the steelmaking coal project is also expected to generate around A$5.5 billion ($3.6 billion) in royalties for the Queensland Government over the life of the mine.

Sedgman and CPB Contractors to prep plant for Pembroke’s Olive Downs coal project

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CIMIC Group companies Sedgman and CPB Contractors have been awarded a contract by Pembroke Resources at the Olive Downs coking coal project in central Queensland, Australia.

The contract is for design, procurement, construction and commissioning of the coal handling and preparation plant (CHPP), and will generate revenue to CIMIC Group of A$184 million ($130 million), the company said.

CIMIC said: “Mineral processing company Sedgman and construction company CPB Contractors will work together to deliver this end-to-end solution. Design and early procurement work will commence immediately.”

The CHPP developed by Sedgman, CPB and Pembroke will have sufficient capacity to process the first phase of annual production of up to 6 Mt of run of mine coal from Olive Downs, according to Pembroke. Fully developed, the project will have the capacity to produce up to 15 Mt/y of high-quality metallurgical coal.

Sedgman Managing Director Grant Fraser called Olive Downs an “exciting, long-term development in the Queensland Bowen Basin”, while CPB Contractors Managing Director Juan Santamaria said the project would draw on his company’s long experience in resources infrastructure and strong ongoing project involvement in regional Queensland.

Work is expected to be completed in 2020. The project has 813 Mt of resources, including 514 Mt of reserves.