Tag Archives: Pilgangoora

SRG Global banks four mining contracts as part of A$700m in wins

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SRG Global Ltd says it has been awarded multiple contracts with existing clients across Asia Pacific, four of which are related to mining.

The value of the new works secured is A$700 million ($457 million), which includes:

  • A five-year term contract for maintenance services associated with the continuous enhancement of Bauxite Residue Disposal Area embankments as well as other civil services with South32 at the Worsley Alumina bauxite and alumina refinery operations in the south-
    west region of Western Australia (WA). The contract will commence immediately;
  • A five-year term contract for asset integrity services with Glencore at its Murrin Murrin mining operations in the Goldfields region of WA. The contract has now commenced;
  • Mine site infrastructure contract for earthworks and civil construction at the Roy Hill mining operations with HanRoy in Western Australia. The contract commences in November 2024 and is expected to be completed mid-2025; and
  • Infrastructure contract for the construction of a tailings dam at the Pilgangoora mining operation with Pilbara Minerals in Western Australia. The contract commences in November 2024 and is expected to be completed mid-2025.

David Macgeorge, SRG Global Managing Director, commented: “We are pleased to continue to secure a diverse range of contract awards across Australia and New Zealand in a broad range of sectors with key repeat clients. These contract awards are a further demonstration of our transformation to a truly diversified infrastructure services company.”

Epiroc to supply SmartROC D65 drill rigs, spare parts to Pilbara Minerals’ Pilgangoora

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Epiroc says it has won a large order for surface mining equipment from Pilbara Minerals that will be used at its Pilgangoora operation in Western Australia.

The world’s largest, independent hard-rock lithium producer, Pilbara Minerals has ordered a fleet of 14 Epiroc SmartROC D65 surface drill rigs for use at the site.

The equipment order was booked in the September quarter 2024, with the company set to provide not only the rigs but also spare parts. The fleet will be delivered from September 2024 through early 2025.

“Lithium plays an increasingly important role as the world keeps transitioning to electrification to reduce emissions, including producing more hybrid and electric vehicles,” Helena Hedblom, Epiroc’s President and CEO, says. “We are happy to support Pilbara Minerals to optimise its operation.”

Epiroc’s SmartROC D65 drill rig is built tough and is loaded with intelligent features that improve safety and productivity, the OEM says.

Pilbara Minerals has been progressing its lithium asset through the Pilgangoora P680 Expansion project. This could see the company step-up its production run-rate at the operation to a total of circa-680,000 t/y of spodumene concentrate across the combined Pilgangoora operation.

Pacific Energy to introduce LNG to Pilbara Minerals’ Pilgangoora power plant

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Pacific Energy is pleased to announce it will be converting its diesel power plant at Pilbara Minerals Limited’s Pilgangoora Operation, in Western Australia, to a combined natural gas-diesel power station, helping to deliver a lower-emissions future for Pilbara Minerals.

The announcement comes off the back of the recent Pilbara Minerals’ ASX announcement detailing the lithium miner’s medium-term power strategy, a three-stage plan slated to significantly reduce its power related emissions intensity.

The 15-year power station upgrade agreement is an amendment to Pacific Energy’s existing build-own-operate contract to supply power to the Pilgangoora Operation. The agreement supplements a separate 6 MW solar power agreement in place between the two companies. The upgrades will play an important role in Stage 1 of Pilbara Minerals’ medium-term power strategy, which aims to further displace diesel fuel use with a lower-emissions fuel.

Under the agreement, Pacific Energy will convert its current on-site power plant to a combined natural gas-diesel power station, expand overall power generation to support its client’s P1000 expansion project, and integrate a battery energy storage system, initially to improve system reliability and efficiency, and subsequently to support future solar integration.

Pacific Energy’s upgrades will comprise 12 new 2.5 MW high-efficiency gas generators and a 13 MW/8 MWh BESS at the main power station. A portion of the existing diesel generators will remain on-site to provide additional power security across both the Pilgan and Ngungaju power plants.

Pacific Energy’s Chief Executive Officer, Jamie Cullen, said the project is further demonstration of the company delivering on its ambition to transition the world to a clean energy future.

“Decarbonising both our own and our clients’ operations is absolutely front of mind for Pacific Energy,” he said. “We know we play a critical role in helping our clients to reduce their emissions intensity by transitioning their power supplies to lower-emissions alternatives.

“We’re really pleased to be partnering with Pilbara Minerals on their journey towards net zero. Projects like this one lead to emissions intensity reductions, and they also enable the cleaner production of critical minerals like lithium, which are essential for our growing global renewable energy technology market. That’s something we’re really proud to support.”

Pacific Energy’s LNG conversion will help Pilbara Minerals substitute 90% of the diesel it currently uses for stationary power generation, replacing it with trucked LNG, a lower emissions-intensive fuel source, which is expected to reduce power related carbon emissions intensity by approximately 20%.

Pacific Energy expects project works to commence in early 2024, with the upgrades due for completion by mid-2025.

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Primero to work on next phase of Pilgangoora P680 lithium expansion project

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NRW Holdings Limited’s wholly owned subsidiary, Primero Group Limited, has been awarded a contract for Structural, Mechanical, Piping, Electrical and Instrumentation Construction by Pilgangoora Operations Pty Ltd (POPL), a wholly owned subsidiary of Pilbara Minerals Limited, for the next phase of the Pilgangoora P680 Expansion project, 120km south of Port Hedland, Western Australia.

The award follows a formal Early Contractor Involvement (ECI) phase to determine construction methodology, cost and schedule.

Under the contract, Primero is responsible for the construction of the crushing and ore sorting facilities. Primero will also assist with providing commissioning, integration and shutdown support. The contract at award has an approximate value of A$64 million ($40.7 million), with the contract scheduled for completion in the September quarter of 2024 with the works commencing immediately.

Primero’s Managing Director, Michael Gollschewski, said: “It is pleasing for Primero to be awarded this contract following the combined efforts of Primero and POPL teams in the successful delivery of the first stage of the P680 Expansion. We look forward to building on what is already a strong partnership with the POPL team.”

NRW’s Managing Director, Jules Pemberton, added: “This award continues to build on the long association between Pilbara Minerals and Primero that began with the design and construction of the original Pilgan Plant and continues with the delivery of the P680 Expansion Project. We look forward to the successful completion of these works.”

The P680 Expansion project could see Pilbara Minerals step-up its production run-rate at the operation to a total of circa-680,000 t/y of spodumene concentrate across the combined Pilgangoora operation.

Pilbara Minerals enlists Contract Power Australia for Pilgangoora solar power plans

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Pilbara Minerals Limited has announced a Power Purchase Agreement (PPA) between its wholly owned subsidiary, Pilgangoora Operations Pty Ltd, and Contract Power Australia that could see a 6 MW solar array built at the Pilgangoora lithium project in Western Australia.

The solar array is, the company says, an important demonstration of its commitment to implementing environmentally friendly power solutions, as a part of its pledge to transition to net-zero emissions (scope 1 and 2) in the decade commencing 2040.

Pilbara Minerals said it looks forward to continuing its working relationship with Contract Power and the broader Pacific Energy Group, which began in 2018 when the first baseload power station was installed at Pilgangoora. The PPA involves a 15-year contract to construct, operate and maintain a 6 MW solar array, which is estimated to displace 3.8 million litres/y of diesel fuel, saving an estimated 9,900 t of CO2/y over the contract period.

“A key factor in awarding this exciting new renewable energy project to Contract Power was their established track record and ability to design and safely deliver turnkey energy projects,” the company added.

It is anticipated that procurement for the project will commence imminently with commissioning expected in late July 2022, and commercial operation from the end of August 2022. The design facilitates the future expansion of solar capacity and potential inclusion of battery storage at Pilgangoora, as Pilbara Minerals creates further efficiencies around its power supply and storage solutions at Pilgangoora, it said.

The installation of the first phase of the solar farm is just one part of the initial rationalisation of power assets at Pilgangoora, as the company further integrates the Ngungaju Operation. A local power network will be created to join the Ngungaju and Pilgan Plants, and the Carlindi camp facilities thereby creating further efficiencies, Pilbara Minerals explained.

Pilbara Minerals’ longer-term objectives include integration with other northern Pilbara power and/or gas and renewables sources with a view to creating further efficiency gains on the path to net-zero carbon.

MACA wins 12-month extension at Pilbara Minerals’ Pilgangoora lithium project

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MACA Ltd has announced the extension of its mining services contract with Pilbara Minerals for a further 12 months at the Pilgangoora lithium project, in Western Australia, following Pilbara Minerals exercise of its 12-month option.

The Pilgangoora project consists of open-pit mining services including drilling and blasting and loading and hauling, and the extension is expected to generate approximately A$70 million ($51 million) in revenue for MACA over the 12-month term through to November 2022. MACA’s work in hand position as of September 21 is A$3.1 billion, it says.

MACA CEO, Mike Sutton, said “MACA is very pleased to be able to continue working with Pilbara Minerals at the Pilgangoora lithium-tantalum project, having commenced operations on site in 2017. We strongly value the collaborative working relationship established with the Pilbara Minerals team over the previous four years and are proud to be an ongoing part of this project.

“For MACA, this extension secures our strong position in the Pilbara region and also provides continued involvement in the lithium industry.”

IronMerge SIMPEC joint venture to work on Pilgangoora lithium operation

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SIMPEC and IronMerge have secured their first contract under a newly incorporated joint venture, with the IronMerge SIMPEC JV to work on Pilbara Minerals’ Pilgangoora lithium operation in Western Australia.

WestStar Industrial Ltd’s SIMPEC formed its first Aboriginal Business joint venture, IronMerge SIMPEC JV, with IronMerge Pty Ltd just last month.

The Stage 1 A$15 million ($11.7 million) improvement works contract at Pilgangoora involves a series of works to improve operating time and throughput as part of continuous improvement to operational performance of Pilgangoora’s Stage 1, 2 Mt/y processing facility.

SIMPEC has been contracted to perform all vertical installation works including earth works, civils, fabrication, structural, mechanical, piping, tanks, electrical and instrumentation works for the project. All works will be conducted with joint venture partner IronMerge.

The Pilgangoora lithium-tantalum project has a current resource of 222.5 Mt and existing JORC compliant reserves of 104.6 Mt.

SIMPEC Managing Director, Mark Dimasi (pictured on the right), said: “This newly awarded contract is a tribute to not only our SIMPEC delivery team but also Ian Taylor (Chairman of IronMerge, pictured in the middle next to Ken Brinsden, MD and CEO of Pilbara Minerals, on the left) and his IronMerge team. This is a very proud moment for all of us and I sincerely look forward to seeing this JV relationship growing and developing in the construction and mining sector. A big thank you to the Pilbara Minerals team for backing us throughout this tender phase.”

Pilbara Minerals and POSCO move a step closer to lithium chemical production JV

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The Pilbara Minerals Board has conditionally exercised its option to enter into an incorporated joint venture with POSCO (for up to 30% participation) for the development of a downstream lithium chemical conversion facility in South Korea.

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, said the company’s relationship with POSCO had developed over the last year as it has continued to work through the Pilgangoora lithium project joint venture.

“It has been really pleasing to see the positive results generated by the due diligence work to date. The significant investment by POSCO into their PosLX technology has paid off and they have proven their ability to produce an industry leading, battery-ready lithium product through their innovative lithium purification process,” he said.

On October 2, 2018, Pilbara Minerals produced its first spodumene concentrate shipment from Pilgangoora. A total of 8,800 t (wet) of spodumene concentrate grading approximately 6.1% lithia and 1.2% Fe2O3 set sail from Port Hedland bound for the company’s offtake partners in north Asia.

The company’s agreement with POSCO encompasses long-term offtake, funding and the downstream conversion plant joint venture opportunity.

Brinsden said the rapid growth in lithium chemicals consumption in South Korea could see the country’s battery manufacturing sector supply around 25% of worldwide capacity by 2028, according to Benchmark Mineral Intelligence.

The downstream lithium facility, to be located in the Gwangyang Free Economic Zone in South Korea, would have up to 40,000 t/y of lithium carbonate equivalent (LCE) capacity and process spodumene from Pilgangoora using POSCO’s patented PosLX purification process.

Since the December quarter, Pilbara Minerals has been undertaking technical due diligence to assess the proposed chemical plant development and work to date has delivered promising results, it said.

“Due diligence has included a visit of technical staff and assessment of POSCO’s existing commercial operations plant using their PosLX technology, based on Pilbara Minerals’ spodumene delivered from the Pilgangoora project,” Pilbara Minerals said.

POSCO has developed its first commercial-scale operation (after the initial development of a pilot scale plant) that produces up to 2,500 t/y of lithium chemicals on an LCE basis, according to Pilbara Minerals. Based on spodumene chemical conversion, the plant has the capacity and flexibility to produce both high grade lithium hydroxide, or, alternately, lithium carbonate products with low impurities in the final products produced.

Pilbara Minerals said: “The battery grade lithium hydroxide produced has to date been tested by major South Korean cathode makers and has passed their qualification process.”

Once a number of conditions surrounding the deal are complete, they will be put to the Board of Pilbara Minerals for a final decision and commitment to the joint development in mid- to late-May 2019. The parties would then aim to complete construction of the chemical conversion plant in late 2020 with commencement of ramp-up and production from early 2021.

Northern Australia Infrastructure Fund boosting mine development

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A new investment mandate for the Northern Australia Infrastructure Fund (NAIF) is helping more projects get off the ground sooner, NAIF Executive Director Peter Ross told delegates at the International Mining and Resources Conference 2018 (IMARC) in Melbourne.

Ross said the fund’s investment mandate, introduced in April, was proving significantly more flexible.

“We are now able to provide up to 100% of the debt finance for a project – up from 50% previously, and we can now also consider smaller projects below A$50 million ($35 million) in value, where they meet other criteria,” Ross said.

Since its establishment in 2016, the NAIF has grown its portfolio. It has moved from having five projects in due diligence in 2017 to making investment decisions on six projects in the last financial year.

“Our loan portfolio now stands at A$264 million, on Northern Australian projects valued at A$969 million,” Ross said.

“In addition, we have another A$750 million of loans that are conditionally approved. In total, the NAIF expects to soon be supporting projects valued at A$2.3 billion, which will provide thousands of jobs in Northern Australia and deliver long-term benefits for the region.”

As might be expected in Northern Australia, resource projects feature prominently in the NAIF portfolio. Since June 2017 a third of the projects considered for due diligence by the fund have been resources-related.

Of the six projects sanctioned, three are resource related.

Sheffield Resources’ Thunderbird mineral sands project (pictured) secured A$95 million in finance to develop its LNG power station and reticulation, and upgrade road and port infrastructure to support the project in WA’s West Kimberley Region.

The NAIF has also signed off on a A$95 million facility for the Onslow Marine Supply Base, and A$15 million for the upgrade of the Pippingarra Road, a 70 km public road to access the Pilgangoora lithium-tantalum mine being developed by Pilbara Minerals, near Port Hedland.

Ross said as word spread of the NAIF’s capacity, project enquiries were increasing. The NAIF has experienced a 320% increase in projects undergoing due diligence since September 2017.

Apart from being an infrastructure project in Australia’s north, to secure NAIF support a project must also have the capacity to repay or re-finance on commercial terms, be of public benefit, and demonstrate it has an effective indigenous engagement strategy.

Altura Mining ships first lithium concentrate to Chinese offtake partner

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The first shipment of spodumene concentrate from Altura Mining’s lithium project in Western Australia has set sail from Port Hedland.

The vessel, ‘MV Clipper Tenacious’, was loaded with approximately 5,000 t of concentrate and is headed for Altura’s offtake partner Lionergy in China.

The focus for Altura is now the ongoing ramp-up of production to the nameplate capacity of 220,000 t/y of 6% LiO2 concentrate and regular shipments, Altura said, with the next shipment expected to depart in late October.

Altura Mining Managing Director James Brown said the company was now part of the “lithium-ion battery revolution”.

“A little bit of the Pilbara will now be found in the car, mobile phones and static storage batteries of the future.”

It was only in July, Altura declared first concentrate output from its mine, 16 months after the company broke ground on the project and two months since crushing operations began.