Tag Archives: Port Hedland

CPB Contractors to help BHP debottleneck Nelson Point at Port Hedland

Mineral project development, Mining services, Steel and iron ore, , , , , ,

CIMIC Group says its CPB Contractors business has been selected by BHP to deliver the structural, mechanical, piping, electrical and instrumentation package for the port debottlenecking project at Nelson Point, Port Hedland in the Pilbara region of Western Australia.

The contract will generate revenue of approximately A$100 million ($72 million) to CPB Contractors.

CIMIC Group Executive Chairman and Chief Executive Officer, Juan Santamaria, said: “We’re pleased to be supporting BHP with this project. Our mining and resources experience and history in the Pilbara means we can collaborate on the project’s high standards of safety and quality.”

CPB Contractors Managing Director, Jason Spears, added: “This project builds on CPB Contractors’ substantial experience in delivering resources infrastructure. We are pleased to continue our long-term partnership with BHP, to deliver another important resources project in the Pilbara.”

The project involves delivering both greenfield and brownfield works, with work commencing this year and expected to be completed in 2023.

Last year, Civmec also received a contract linked to the port debottlenecking project, which, in Stage 1, includes a new stockyard planned for the South Yard at Nelson Point.

Hancock, Mineral Resources and Roy Hill consider Australia-first infrastructure sharing pact

Mineral project development, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , , , ,

Hancock Prospecting Pty Ltd and Mineral Resources Ltd have entered into a legally binding agreement under which they will jointly investigate the potential to develop a new iron ore export facility at Port Hedland’s Stanley Point berth 3 in South West Creek.

The agreement would see Roy Hill Holdings, a Hancock subsidiary, provide services to both MRL and Hancock for development and operation of the project, including rail haulage and port services.

MRL said: “The project aligns with MRL’s strategy to unlock stranded deposits in the Pilbara by developing pit-to-port solutions and expanding its capability to be a long-term, low-cost sustainable supplier of iron ore to international markets.”

Hancock and MRL will conduct an expedited study to assess the economic and technical feasibility of the proposed project in the coming months, to usual market standards, they said.

In addition, Hancock and MRL will seek to undertake discussions with the Government of Western Australia and the Pilbara Ports Authority (PPA) in relation to the potential project. It is acknowledged that in order for the proposed project to proceed, the parties would need to first receive a development approval and a capacity allocation for the project from the PPA to jointly develop and operate Stanley Point berth 3 and other associated supporting port infrastructure.

MRL Managing Director, Chris Ellison (pictured in shot with Hancock Prospecting Executive Chair, Gina Rinehart on screen), said this partnership and infrastructure sharing proposal is the first-of-its-kind in the Australian resources industry and would enable significant value to be unlocked for the company in a sustainable manner.

“Our long-stated strategy is to transition from short-life, high-cost mines to lower-cost, long-life operations underpinned by innovative infrastructure solutions,” he said. “Developing our stranded assets will provide additional growth for MRL’s unique mining services build-own-operate model.”

The project  will be subject to a final investment decision by both parties, and other necessary approvals and agreements (including a lease, licence and an infrastructure development agreement or similar) from the PPA on agreed terms.

Civmec banks new work from BHP, Roy Hill and Rio Tinto

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Civmec Ltd says it has received three notices of award from several repeat mining customers for maintenance and capital works projects collectively worth approximately A$130 million ($97 million).

These orders – from BHP, Roy Hill and Rio Tinto – bring its total order book to about A$1.05 billion as at September 30, 2021.

For BHP, Civmec is to carry out a civil and earthworks job as part of the miner’s Port De-bottlenecking Project Stage 1, which includes a new stockyard planned for the South Yard at Nelson Point, in Port Hedland, Western Australia.

The scope of work includes dewatering, piling, ground improvement, associated earthworks, concrete foundations, new roads, high voltage poles and underground power works.

Civmec says mobilisation will commence this quarter, with completion expected in the March quarter of 2022.

With Roy Hill, Civmec is due to carry out a greenfield construction package related to an extension of the existing Wet High Intensity Magnetic Separation (WHIMS) plant at Roy Hill’s mine site north of Newman, in Western Australia’s Pilbara region.

The scope of work includes greenfield installation and pre-commissioning of pre-assembled modules, piping, electrical and tie-in works. Mobilisation will commence immediately and completion is scheduled for the March quarter of 2022.

At Rio Tinto’s Boyne Island Smelters operation, Civmec is to supply refractory trades and other associated disciplines for maintenance, rebuild and reduction cell reconstruction works on carbon bake furnaces. The contract term is for three years with two one-year extension options.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are delighted to secure these project wins with three of our long-term Tier 1 customers. The projects combine multi-year maintenance works along with two projects within our newly formed Maintenance and Capital Works – Resources and Energy area. With the BHP PDP1 project located in the Port Hedland region, it provides an ideal opportunity for Civmec’s newly opened regional branch to support the project, validating Civmec’s recently announced plans to invest in a purpose-built facility in Port Hedland.”

Element 25 progresses Zero Carbon Manganese vision with AK Evans pact

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A day after securing the sale of the first parcel of material from its Butcherbird manganese project in Western Australia, Element 25 Ltd has signed a letter of intent with AK Evans Group Australia for transportation of manganese concentrate from the project to Utah Point in Port Hedland.

AK Evans is a privately owned construction, civils, heavy and bulk haulage company, founded in Port Hedland, with locations across Western Australia. AK Evans also has a strategic partnership with Kurtarra Pty Ltd, an 100% indigenous-owned earthmoving and services company.

The letter of intent will cover the initial transport arrangements – with haulage for the maiden cargo undertaken using agreed terms and rates – and the parties are in the process of finalising a long-term commercial arrangement, which will see the introduction of new quad road trains during the remainder of 2021, Element 25 said.

Element 25 Managing Director, Justin Brown, said: “We are excited to be partnering with AK Evans with a view to having new dedicated road trains to transport our manganese to Port Hedland. We are also excited to know we can work with our commercial partners in delivering solutions to fulfil our vision of delivering Zero Carbon Manganese™ for the electric vehicle (EV) battery revolution. This is another important milestone for the project and company, and we are excited to be heading for our first shipment of Butcherbird’s material to our offtake partners.”

On May 26, Element 25 announced the sale of the first parcel of material from Butcherbird to OMH under offtake agreement terms. The material in the contract specification is 30-35% Mn concentrate, with the first shipment planned for June 2021.

Last year, Element 25 completed a prefeasibility study on Butcherbird that outlined a start-up manganese concentrate export scenario as part of a staged development strategy. It outlined a maiden proven and probable reserve of 50.55 Mt at 10.3% Mn containing 5.22 Mt of manganese, with a base case assuming annual production and sales of 312,000 t/y of medium-grade lump manganese concentrate grading 30-35% Mn.

“The project team will now turn its focus to the next stages of the multi-stage development strategy of the project including a Stage 2 expansion of the concentrate business followed by a Stage 3 development to convert the concentrate material into high purity manganese sulphate monohydrate for electric vehicle (EV) batteries to power the global transition away from fossil fuel powered mobility,” the company said.

Element 25 says Butcherbird is ideally placed to feed potential demand, with advanced flowsheet development work undertaken in 2019 and 2020 confirming a simple, unique, ambient temperature and atmospheric pressure leach process for Element 25 ores which, when combined with offsets, will target the world’s first Zero Carbon Manganese for EV cathode manufacture.

Sanjiv Ridge heads for full operations after Atlas Iron crushes first milestone

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Atlas Iron has announced first ore has been crushed at its new mine, Sanjiv Ridge, in Western Australia, ahead of schedule.

Sanjiv Ridge is set to provide a significant boost to Atlas’s annual output, with an expected 4-5 Mt/y of lump and fines to be hauled by road to the Utah Point stockyard at Port Hedland. It is expected the mine will add 5-6 years to the Atlas value chain, with 64 Mt at 57.2% Fe of mineral resources and 29 Mt at 57% Fe reserves.

On the crushing milestone, Atlas Iron CEO, Sanjiv Manchanda, said: “Congratulations to all our team members, including both Atlas Iron staff and our valued contractors, for their hard work and dedication to hit this target ahead of schedule. Now, with first ore crushed, we are focusing on building the product stockpile and commencement of road haulage.”

Sanjiv Ridge was recently renamed from Corunna Downs after Atlas’ CEO in recognition of his long service across the Hancock Prospecting Group of companies.

The new mine site is due to be in full operation in the third quarter of Atlas’ 2021 financial year, and is situated northeast of Atlas Iron’s existing mining operation, Mount Webber.

SIMPEC and IronMerge create Aboriginal Business JV serving the Pilbara

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WestStar Industrial Ltd’s engineering contractor business SIMPEC has formed its first Aboriginal Business joint venture, IronMerge SIMPEC JV, with IronMerge Pty Ltd.

IronMerge is a Supply Nation Aboriginal-owned mining and civil works service company, delivering local contracting solutions to customers across the Pilbara, driving employment outcomes for Indigenous people and local communities in the Port Hedland region, WestStar says. The company prides itself on being a Nyamal family business and offers direct employment for Nyamal people in the Pilbara.

IronMerge SIMPEC JV, an unincorporated 50:50 joint venture, has been formed to deliver a key component of SIMPEC’s Aboriginal engagement strategy and overall commitment to returning benefit to Traditional Owners and communities within its operational footprint, according to WestStar.

The key objectives of the joint venture are:

  • For SIMPEC and IronMergeto cooperate and support one another in construction and service opportunities in and around the Pilbara, winning work jointly or separately;
  • To actively participate and positively contribute to the communities in which the parties operate by continuing to create local employment opportunities and engaging the community interest in everything that is done; and
  • To be project and service delivery partners of choice through complete alignment with clients in meeting their goals, obligations and commitments to Traditional Owners and local Aboriginal businesses.

SIMPEC Managing Director, Mark Dimasi, said: “This is a milestone achievement not only for SIMPEC but also Ian Taylor (pictured in the centre) and his IronMerge team. This is a very proud moment for all of us and I sincerely look forward to seeing this JV relationship delivering sustainable outcomes to our businesses and equally to Aboriginal business and communities. A big thank you to all involved in bringing the first step in our ambitious goal to a reality.”

SIMPEC says it continues to develop and strengthen its relationship with local Traditional Owners and Aboriginal businesses.

“We believe our overall focus on social responsibility will further enhance SIMPEC’s positioning for financial year 2021 and beyond,” it added.

Fortescue Metals granted approval to expand iron ore capacity at Herb Elliott

Bulk handling, Environmental, Mine operation news, Mining services, Steel and iron ore, , , , , , , , , , ,

Fortescue Metals Group says it has received approval from authorities to increase the material handling capacity of its Herb Elliott Port facility, in Western Australia, from 175 Mt/y to 210 Mt/y on a staged basis.

The approval, under the West Australian Environmental Protection Act 1986, includes provisions for 188 Mt/y of hematite ore and 22 Mt/y of magnetite concentrate. The high-grade magnetite product will be produced from the Iron Bridge magnetite operations, with first ore on ship from Iron Bridge scheduled for mid-2022.

The revised licence uses the capacity of Fortescue’s existing port infrastructure, comprising five berths and three ship loaders, and supports its 2021 financial year iron ore shipments guidance of 175-180 Mt.

Chief Executive Officer, Elizabeth Gaines, said: “Fortescue’s port operations are world leading and we have continually demonstrated our capacity to optimise the efficiency and productivity of our port infrastructure to deliver iron ore to our customers.

“The increase in the licensed capacity of Fortescue’s Herb Elliott Port from 175 Mt/y to 210 Mt/y is in line with our strategy to deliver growth through investment, including the $2.6 billion investment in the Iron Bridge project. This significant project will deliver 22 Mt/y of high-grade magnetite product, enhancing the range of products available to our customers through our flexible integrated operations and marketing strategy.

“We will continue to ensure that Fortescue remains a significant long-term contributor to the state and national economies through growth and development of our iron ore assets, job creation and investment.”

Fortescue says it maintains a high level of vigilance over its management of dust in Port Hedland, with installation and implementation of additional controls ensuring no net increase in dust emissions as a result of the progressive increase in throughput capacity at Herb Elliott.

Monadelphous set to take on more BHP work in Australia, Chile

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Monadelphous Group has gained a further foothold in numerous BHP majority-owned projects as part of its latest construction and maintenance contract awards in the resources and energy sectors that come with a combined value of around A$100 million ($72 million).

Under its recently awarded WAIO Site Engineering Panel Framework Agreement with BHP, the company has been awarded the following contracts in the Pilbara region of Western Australia:

  • A contract for the supply and installation of the Jimblebar Transfer Station project, with work expected to be completed by December 2020; and
  • A contract for the refurbishment of Car Dumper 3 at Nelson Point, Port Hedland, with work expected to be undertaken during the second half of 2020.

Further, Monadelphous has also been awarded a contract under its WAIO Asset Panel Framework Agreement with BHP for the Port Availability Improvement project to provide multidisciplinary brownfield modification works to conveyors and transfer chutes across the Nelson Point and Finucane Island facilities, in Western Australia. The work is expected to be completed in the second half of the 2021.

Then, in Chile, Monadelphous has secured several new contracts through its maintenance and construction services business, Buildtek, which it acquired late last year.

This includes two contracts with Minera Escondida BHP, for the construction and assembly of a communications tower and associated infrastructure at the Escondida copper mine, as well as an upgrade to the conveyor system feeding the Filter Plant Warehouse at Coloso Port, both in the Antofagasta region.

These contract awards were announced the day before Monadelphous released its 2020 financial year results, which showed the company generated A$1.65 billion of revenue in the 12 months and produced a net profit after tax result of A$36.5 million.

BHP studying iron ore export expansion at Port Hedland

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BHP says it is looking into options to increase its iron ore export capacity at Port Hedland, in Western Australia, with the potential for a 40 Mt/y boost if “market conditions allow”.

The company is currently focused on hitting its 290 Mt/y capacity (on a 100% basis) in the medium term, but it said it wanted to be able to respond to further growth opportunities in the future if conditions allow.

BHP, prior to the spread of the COVID-19 virus, said it expected to ship 273-286 Mt of iron ore on a 100% basis in its 2020 financial year to June 30, 2020.

A public consultation on the expansion plan has begun ahead of BHP submitting an application to the Western Australia Government to gain a licence for this increased iron ore export capacity.

The licence application is the first step in a broader process. The company anticipates submitting the application next month once the consultation has occurred and the process towards the approval taking most of the rest of 2020.

BHP said the move was about “providing future options”, and “should not in any way be construed as a forecast or target”.

This is not the first time the company has talked about expanding capacity beyond the 290 Mt/y mark at Port Hedland. During the last boom when the company was still heading for 155 Mt/y capacity, it tabled an ambitious and expensive Outer Harbour development at Port Hedland. While the project was scrapped as the downturn ensued, it could have seen capacity rise to 450 Mt/y (on a 100% basis).

One area where the company has made a definitive pledge to invest in the Pilbara is around air quality and dust emissions.

BHP said it planned to spend A$300 million ($194 million) over the next five years to improve air quality and dust emissions across its Pilbara operations. This investment, it said, reinforces its commitment to the long-term, sustainable future of the Pilbara region as an economic powerhouse and follows A$400 million in projects already delivered over the past decade to minimise dust emissions across its supply chain.

BHP General Manager Port, Nilson Davila, said: “BHP has reviewed global best practice dust management and air quality control methods and identified new opportunities to further improve our approach. We recognise we have a shared responsibility to address dust issues in the Pilbara.”

The Pilbara air quality program involves:

  • The construction of wind fences at port operations, a method that has been proven to significantly reduce the potential for dust lift-off from stockpiles;
  • Trialling, with a view to “at-scale construction”, of vegetation barriers to capture dust in the West End in Port Hedland, in partnership with Curtin University and Greening Australia; and
  • Implementation of operational dust control projects across its entire Pilbara supply chain, such as moisture management systems, ore conditioning and monitoring infrastructure, and improvements across its existing controls at mines and port.

BHP said individual projects will still be subject to all necessary internal and state government approvals.

“The planned investment signals BHP’s strong commitment to the Pilbara, and particularly to the revitalisation of the West End into a vibrant commercial hub,” Davila said.

BHP said it remained committed to working with government, industry and the local community on the recommendations of the Port Hedland Dust Management Taskforce Report, including the development by the Department of Water and Environmental Regulation of best practice guidelines for bulk handling facilities and their implementation.

Mondelphous strengthens BHP ties in Western Australia

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Monadelphous Group has secured a number of contracts across Western Australia with BHP as part of a package of construction and maintenance agreements worth circa-A$110 million ($75 million).

The news comes on top of existing maintenance and other contracts the company has previously secured with the major mining company.

These include a contract at the BHP-owned Mining Area C iron ore mine site in the Pilbara, where Monadelphous will provide upgrades to existing conveyer equipment, and power switching and stackers. Work is expected to be completed in the September quarter of 2020.

The engineering firm has also won a contract for the provision of services associated with the demolition and rehabilitation of a number of end-of-life facilities at Nelson Point in Port Hedland. This contract is expected to commence in January 2020 and will be completed in the September quarter of 2020.

Monadelphous will also carry out a 12-month extension to its existing contract with BHP’s Nickel West division for the provision of maintenance, shutdowns and off-site repair services at the Kalgoorlie nickel smelter.

Lastly with BHP, the company has been awarded a contract with thyssenkrupp Industrial Solutions (Australia) for the construction of a reclaimer and two stackers at BHP’s South Flank project in the Pilbara. thyssenkrupp has previously said these will be the largest rail mounted stacker/reclaimers in the world, with a loading capacity of 20,000 t/h.

Monadelphous’ work is expected to be completed in the March quarter of 2021.

In Queensland, meanwhile, the ASX-listed company has secured a three-year contract for the provision of general mechanical and maintenance services as part of Incitec Pivot’s scheduled turnarounds for its Queensland manufacturing facilities, it said.