Tag Archives: Primero Group

Piedmont enlists Primero and Marshall Miller for lithium concentrate DFS

Comminution of minerals, Energy minerals, Mineral processing, Mineral project development, Mining services, , , , , ,

Piedmont Lithium has awarded the definitive feasibility study (DFS) of its planned spodumene concentrate operations in North Carolina, USA, to a combined team including Primero Group and Marshall Miller & Associates.

Marshall Miller is to lead quarry design activities, while Primero will advance the concentrator design, infrastructure design, and be responsible for overall study management, Piedmont said.

The study will target production of 160,000 t/y of 6% Li2O spodumene concentrate, as well as co-products including quartz and feldspar. It will include the results of the pilot test work currently ongoing at SGS Canada, which will involve “dense medium and flotation” pilot work.

Piedmont expects to complete the study on its namesake project in mid-2021 and pursue an investment decision for the concentrate operations shortly after.

At the same time, Piedmont says it is looking into developing an integrated lithium hydroxide business in North Carolina, with a planned lithium chemical plant DFS to commence in the March quarter.

Earlier in 2020, Piedmont entered a memorandum of understanding with Primero Group related to delivering the planned spodumene concentrator at the Piedmont lithium project. The two have partnered since early 2018, with Primero having been the lead engineering consultant for Piedmont’s scoping studies, concentrator design, and metallurgical test work management.

Piedmont has engaged Marshall Miller, based in Bluefield, Virginia, since 2018 to advance mine design, permitting activities, survey, geotechnical study, waste rock and tailings storage design, and other engineering support services.

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

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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.

Rio flying high at technologically advanced Gudai-Darri iron ore project

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Western Australia’s newest airport has opened at Rio Tinto’s $2.6 billion Gudai-Darri (formerly known as Koodaideri) iron ore project in the Pilbara where construction is progressing ahead of expected production ramp-up in early 2022.

The facility can accept a range of different aircraft including Boeing 737s, A320s, F100s and King Airs. The current flight schedule includes four flights a week with additional flights expected to be added to the schedule next year. The airport is expected to handle more than 600 workers in a day at peak operating times, according to Rio.

The airport will deliver significant benefits in terms of minimising employee interaction with vehicles and driving, as well as helping to manage employee fatigue thanks to a significant reduction in travel time from an alternate regional airport, Rio says. The airport will also provide a safer landing option for Rio Tinto’s long-standing partner, the Royal Flying Doctor Service.

Rio Tinto Projects General Manager, Gudai-Darri, Anthony Radici, said: “You get a real sense of the immense size and scale of our Gudai-Darri operation once you fly into this new airport.

“The construction phase of the project is progressing well with a significant amount of infrastructure at the mine now built, millions of cubic metres of material moved, a new access road, a significant amount of the rail formation installed, two new bridges constructed and now a brand new airport.”

Rio Tinto Iron Ore Acting Chief Executive, Ivan Vella, said: “The construction phase of Gudai-Darri, our most technologically advanced mine, has a strong focus on supporting local businesses with contracts valued at more than $2.3 billion awarded to date.

“These contracts have supported approximately 2,000 jobs in the construction phase and the mining operation is expected to support about 600 jobs on an ongoing basis. We are proud to support West Australian businesses as we progress a pipeline of investment opportunities in the Pilbara valued at more than A$10 billion ($7.3 billion) over the three years to 2022.”

Contracts at Gudai-Darri valued at more than $2.3 billion have been awarded to local Pilbara, Pilbara Aboriginal and West Australian Businesses including Primero Group, NRW, DTMT, Pindan, White Springs, Hicks Civil & Mining and Karratha Earthmoving & Sand Supplies.

The full construction and design of the airport will be completed by local partners Primero Group, NRW, Worley and GHD, together with NRW subcontractors Colas, Fulton Hogan, TEC services, Brookdale Contractors, Bennco and Karlka Fencewright.

Gudai-Darri is a greenfield mine development, around 35 km northwest of the Yandicoogina mine in the East Pilbara mining region. The mine will initially be developed as a nominal 43 Mt/y high-grade, dry processing operation.

Primero banks new work with Fortescue, Rio Tinto and Hazer Group

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Primero Group says it has recently booked new business totalling some A$55 million ($39 million) with Fortescue Metals Group, Rio Tinto and the Hazer Group as it continues to build out its 2021 financial year contracted order book.

First, it has been awarded the engineering, procurement and construction contract for the Non-Process Infrastructure (NPI) at Fortescue’s Eliwana mine and rail project, in the Pilbara.

Works commenced in late July based on a limited notice to proceed, with the full contract now awarded to Primero following a successful Early Contractor Involvement (ECI) process. The contract includes the complete engineering design, procurement and construction of heavy vehicle workshops and washdown and refuelling infrastructure required for the new Eliwana mine, with works expected to be completed in the 2021 financial year.

Once completed, the $1.275 billion Eliwana project, which includes the building of a 30 Mt/y iron ore processing facility, will maintain Fortescue’s overall production rate of a minimum 170 Mt/y over 20 years.

With Rio Tinto, Primero has been awarded two multi-year Master Service Agreements for NPI and Structural, Mechanical, Piping services across the miner’s Pilbara operational and project locations. The two contracts have an initial term of three years, with an option for a two-year extension. They cover sustaining capital and maintenance projects required over that period across all Rio Tinto Iron Ore Pilbara sites, it said.

The services cover design, procurement and construction activities for engagement under negotiated commercial terms in a “panel style agreement”, according to Primero.

Primero has also been awarded an EPC contract for Hazer Group’s hydrogen/graphene commercial demonstration plant in Western Australia at the Woodman Point Water Treatment Facility.

Hazer is undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process. This process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst, according to the company.

“The full project award has followed a successful ECI process that has extended over the past 12 months,” Primero said. “This process was targeted at developing the technology engineering to the point where a commercial contract could be executed to deliver the project. The project is the first of its kind in the new global renewables energy market and is patented groundbreaking technology in the hydrogen space.”

Alongside this, Primero said it had been awarded the detailed design contract for a 130 km water delivery pipeline and associated pumping stations for the Covalent Lithium Mt Holland project feasibility study in Western Australia.

Primero said its committed order book for the 2021 financial year now stands at around A$285 million.

Primero, Mineral Technologies enlisted for Strandline’s Coburn mineral sands project

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Primero Group has been awarded preferred EPC status on a substantial contract with Strandline Resources on the Coburn mineral sands project in Western Australia.

The total volume of awarded engineering procurement and construction (EPC) works totals around A$150 million ($107 million), according to Primero, and follows an initial eight-week Early Contractor Involvement (ECI) process that provided further definition of the delivery strategy and project deliverables between the groups. It also coincided with the appointment of Mineral Technologies (MT), a global services provider and leader in the design and supply of mineral sands processing facilities (and a subsidiary of Downer Group), as the strategic technology partner alongside Primero for the project delivery.

Strandline said the contract involved the engineering, procurement, construction, commissioning and performance testing of the Wet Concentration Plant (WCP), Mineral Separation Plant (MSP) and associated processing circuits at the operation.

The Coburn WCP is designed to beneficiate the heavy minerals (ilmenite, leucoxene, rutile, zircon and monazite) and reject the non-valuable, lighter minerals through multiple stages of high capacity gravity separation and classification, according to Strandline. The rich heavy mineral concentrate produced from the WCP will be transported to the MSP and stockpiled ready for processing.

“The WCP infrastructure is relocatable and is planned to be moved several times during the mine life as the mine advances along the orebody,” Strandline said. “The MSP design comprises conventional electrostatic separation, gravity and magnetic fractionation to recover a range of premium-quality final products, including chloride ilmenite, rutile, premium zircon and zircon concentrate.”

The full project award is subject to Strandline Resources approving a Final Investment Decision in the coming months, Primero said. The ECI process came after Strandline’s recent A$18.5 million equity raising.

Primero Managing Director and CEO, Cameron Henry, said: “This award is an excellent example of Primero’s ECI phase in action and adds to our growing book of projects in preferred contractor status. We have worked intensively with Strandline over the past two months in designing a delivery solution that best meets the key project objectives and value drivers, while also minimising execution risks.”

Strandline has also already appointed Piacentini & Son to design and construct three mobile dozer mining units for the project, while Macmahon has been named as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project.

Primero Group lands contract addition at Rio Tinto’s Koodaideri project

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Multi-disciplinary engineering and contracting firm, Primero Group, says it has been awarded a material contract extension to the existing Koodaideri Non-Process Infrastructure (NPI) contract awarded in late 2019 by Rio Tinto.

Under the extension, the company will construct the Koodaideri Airport Terminal and Infrastructure, with the contract valued at around A$20 million ($14 million). This will involve the construction delivery of the works to be completed in parallel with the existing contract programmed for completion in 2021.

The contract value of the entire NPI contract now stands at circa-A$150 million, compared with the A$115 million under the original award. The difference represents additional “options selections” that Rio confirmed and included for implementation at the project earlier this year.

Primero’s workforce on the project will peak at approximately 180 personnel and site construction work is well underway, the company noted.

Construction on Koodaideri Phase 1 started in 2019 with first production expected in late 2021. Once complete, the $2.6 billion mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend, Rio says.

With this recent NPI contract addition, Primero’s financial year 2021 contracted order book now stands at approximately A$220 million, the company said.

Primero Managing Director and CEO, Cameron Henry, said: “It is pleasing to be awarded further core NPI work from such a great project partner and Tier 1 client as Rio Tinto. We continue to deliver to plan across all major project works and are increasingly optimistic about the operating and growth outlook for the next year and beyond.”

Rio increases scope of Primero work at Koodaideri, Robe Valley

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Primero says it has been awarded variation extensions to contracts it already has in place with Rio Tinto at the in-development Koodaideri iron ore project and the Robe Valley iron ore operations, both in the Pilbara of Western Australia.

The multi-disciplinary engineering and contracting firm said the extensions have a combined value of around A$20 million ($12.3 million).

The variations awarded under the Mesa K (Robe Valley) contract reflect additional civil works at the Mesa J PP2 (process plant 2) wet processing facility, currently being developed as part of Rio Tinto’s Robe Valley sustaining projects, Primero said.

Back in October 2018, Rio, together with joint venture partners Mitsui and Nippon Steel & Sumitomo Metal, approved an investment of $1.55 billion to sustain production capacity at two projects forming part of the Robe River joint venture, which also includes Robe Valley.

The additions to the Koodaideri contract, meanwhile, reflect additional “options selections” that have now been confirmed and included for implementation, according to Primero.

Construction on Koodaideri Phase 1 started in 2019 with first production expected in late 2021. Once complete, the $2.6 billion mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

Primero Group secured a A$115 million contract with Rio Tinto’s iron ore division to design, fabricate, supply, deliver, construct, install, test and commission the Mine Infrastructure Area and associated facilities at Koodaideri back in late 2019.

The Mesa J works (under the Mesa K contract) are expected to be completed in 2020, Primero said. The additional Koodaideri works are planned to be completed in-line with the original contracted time frame of mid 2021.

Primero lays foundations for world’s largest rail mounted stackers, reclaimer

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Primero Group looks set to hit the June 30 deadline for the pre-assembly of two stackers and one “off-reclaim machine” for thyssenkrupp at the BHP-owned South Flank iron ore project, in Western Australia.

In an update posted today, Primero said it was nearing completion of the pre-assembly and dressing out of 24 machine modules for thyssenkrupp, with the last of these modules being “punch listed” and signed off in preparation for shipment.

The modules will complete the world’s largest rail mounted stackers and reclaimer, which are currently under construction on site in the state. thyssenkrupp said previously that the rail mounted stacker/reclaimer units will have a loading capacity of 20,000 t/h.

Primero has been carrying out the work at the Australian Marine Complex, in Henderson, south of Perth, Western Australia, with the company saying over 10 km of cable, 2 km of piping and 200 m of conveyors had been installed. The project has seen Primero reach 75,000 project hours loss time injury free, it added.

The Primero contract commenced last year and was expected to be completed in the current Australia financial year, ending June 30, 2020.

The $4.6 billion South Flank iron ore project will be one of the largest iron ore processing hubs in the world when operating. It includes an 80 Mt/y crushing and screening plant, an overland conveyor system and rail-loading facilities. The mine will replace production from BHP’s Yandi mine, which is nearing the end of its life.

Construction began in July 2018 and first production of iron ore is anticipated in 2021.

Primero Group to take on EPC contract at Rio’s Koodaideri iron ore mine

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Primero Group has secured a A$115 million ($79 million) contract with Rio Tinto’s iron ore division that will see it design, fabricate, supply, deliver, construct, install, test and commission the Mine Infrastructure Area and associated facilities at the Koodaideri iron ore project in the Pilbara of Western Australia.

The scope includes the complete engineering, procurement and construction (EPC) contract of the facilities for this project, which will commence immediately and is scheduled to be completed in mid-2021.

Primero says it expects to employ a workforce of over 150 personnel at its peak.

Koodaideri, billed by Rio as an “intelligent mine”, will deliver a new production hub for Rio’s iron ore business in the Pilbara, incorporating a processing plant and infrastructure including a 166 km rail line connecting the mine to the existing network.

Construction on Koodaideri Phase 1 started this year with first production expected in late 2021. Once complete, the mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

In addition to mine infrastructure and the accommodation camp, an airport and mine support facilities will be built. Throughout the construction period, Rio expects to employ over 2,000 people with 600 permanent roles created once the mine is operational.

In addition to the Koodaideri work, Primero said it had been awarded Phase 2 of the proposed processing upgrade, on an engineering, procurement and construction management (EPCM) basis, for Northern Star Resources’ Pogo gold mine, in Alaska, USA.

The works will be conducted predominantly from Primero’s Americas Montreal (Canada) office with works progressively executed this winter to ensure construction windows are met in the summer period, it said.

The upgrade works will increase throughput of the current processing facility from 1 Mt/y to 1.3 Mt/y by January 2021, with the potential to move to a Phase 3 (1.5 Mt/y) over the coming years.

Primero said: “Works are set to progress over the next 12 months including detailed design and equipment procurement with the planning for on-site works commencing over the winter period to be executed in the warmer months, post winter.”

The award of the project is the first major contract with Northern Star Resources, Primero added.

Northern Star acquired Pogo, the company’s first mine outside of Australia, from Sumitomo Metal Mining late last year for $260 million.

Primero to work on stacker/reclaimers for BHP South Flank iron ore project

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Primero Group Limited says it has been awarded a “significant contract” at the BHP-owned $4.6 billion South Flank iron ore project in Western Australia.

The ASX-listed company will carry out the pre-assembly of The South Flank Balance Machines for thyssenkrupp Industrial, it said.

thyssenkrupp was awarded the supply and installation of the Balance Machines by BHP in November 2018, Primero said.

Primero’s scope is the pre-assembly of the two stackers and one “off-reclaim machine” at the AMC (Australian Marine Complex), located in Henderson, south of Perth.

The machines will be the largest rail mounted stacker/reclaimers machines to be installed in the world, with a loading capacity of 20,000 t/h.

The contract is set to commence immediately and is expected to be completed in the current financial year, ending June 30, 2020.

Primero said: “The contract award represents another significant win for the company’s Non-Process Infrastructure division and will create up to 60 direct positions locally over the contract period.”