Tag Archives: procurement

GR Engineering cements Yangibana rare earth project EPC contract

Energy minerals, Mineral project development, Mining services, , , , , , ,

GR Engineering Services has been awarded an engineering, procurement and construction (EPC) contract with Yangibana Pty Ltd, a wholly owned subsidiary of Hastings Technology Metals Limited, for a beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

As previously announced on May 3, 2023, GR Engineering had entered into a binding term sheet with Yangibana Pty Ltd for these works.

The contract sum, including the provisional sum, is A$210 million ($138 million) as previously disclosed. This is made up of a fixed price component of A$180 million for the beneficiation plant and a provisional component of A$30 million mainly for the plant and tailings storage facility earthwork.

GR Engineering has commenced early works up to an agreed capped amount. The EPC contract is conditional on GR Engineering being issued with a commencement notice, which is dependent on Hastings finalising funding for the project as well as a number of other pre-conditions standard for an EPC contract.

Construction is planned to be complete in the March quarter of 2025 with first concentrate on truck in the June quarter of 2025

Under the A$210 million contract, GRES will design and construct the Yangibana beneficiation plant and all associated infrastructure, including engineering, manufacture, supply, installation, dry and wet commissioning, and testing of the facility over a period of less than 18 months. When completed, the plant will have a feed capacity of 1. 1 Mt/y and a rare earth concentrate output capacity of 37,000 t/y, Hastings says.

NRW’s Primero Group awarded major EPC contract for KCGM Growth Project

Comminution of minerals, Mine operation news, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , , ,

NRW Holdings says its wholly owned subsidiary Primero Group Limited has entered into an EPC contract with Northern Star Resources Limited for its KCGM Growth Project in Kalgoorlie, Western Australia.

The execution of the engineering, procurement and construction contract follows an extensive program of work to define the scope, cost and schedule, according to NRW. Under the agreement, Primero will be responsible for the design, procurement, construction and commissioning of the process plant facilities, with the commercial model for delivery an “Incentivised Target Cost”.

The EPC contract has an approximate value of A$973 million ($647 million). The contract is scheduled for completion by the September quarter of 2026.

Last month, Northern Star announced the final investment decision on the KCGM Mill Expansion project, agreeing to invest A$1.5 billion to boost the mill’s capacity to 27 Mt/y, from 13 Mt/y. Included within this is 20 MW grinding mills – the highest powered, gear-driven mills in the world – and the first gear-driven 28 ft (8.5 m) diameter ball mill, according to FLSmidth.

Primero participated in a competitive early contractor involvement (ECI) program from January 2022 and has worked with the Northern Star project team to develop a technically-superior design that will bring operating benefits to the Fimiston processing plant, it says. Following the ECI program, Primero was engaged to undertake further value engineering and scope development.

Primero’s Managing Director, Michael Gollschewski, said: “The execution of the KCGM Growth Project is the culmination of an 18-month journey with Northern Star. The work conducted to date to develop the capital cost, design, execution strategy and schedule for the project, has been one of the most comprehensive and rigorous ECI programs we have participated in. The effort of the combined teams to define this key project has provided a solid foundation for a safe, efficient and successful delivery.”

NRW’s Managing Director, Jules Pemberton, said: “This EPC contract reinforces Primero’s reputation as a leading provider of world class engineering and construction services. This
project showcases Primero’s full range of in-house capability. I look forward to developing a long-term relationship with one of the industry’s leading gold producers.”

GR Engineering wins Mt Ida EPC contract from Aurenne Alt Resources

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , ,

GR Engineering Services says it has executed an engineering, procurement and construction (EPC) contract with Aurenne Alt Resources Pty Ltd in relation to the Mt Ida gold project in Western Australia.

Mt Ida, which Aurenne inherited with the acquisition of Alt Resources last year, is in the eastern goldfields of the state.

GR Engineering said the contract sum is approximately A$73 million ($54 million) and work is expected to start immediately.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have been awarded the EPC contract by Aurenne and we look forward to working collaboratively with the Aurenne team. This project further reinforces GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Alt Resources previously outlined the need for a 750,000 t/y processing facility at Mt Ida in a 2020 feasibility study prior to being acquired by Aurenne.

Austmine and BHP strengthen METS sector ties

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Austmine says it and BHP have announced a strategic partnership focused on bringing people and resources together to “maximise value-chain opportunities and further strengthen the competitiveness of the Australian METS and mining sectors”.

The three-year partnership will see BHP actively involved with Austmine through nationwide industry events, webinars, visits to BHP operations and other innovation projects, according to Austmine.

Austmine is a leading not-for-profit industry association for the Australian mining equipment, technology and services (METS) sector with over 600 members nationally.

BHP Group Procurement Officer, Sundeep Singh, said the partnership was about breaking down barriers to access.

“Midway through last year, we brought together a group of representatives from across the Australian METS sector including Austmine to understand the challenges and opportunities in engaging with our business,” he said.

“After hearing the perspectives of the sector, we have since worked with Austmine to design a partnership which will build relationships between the Australian METS sector and BHP personnel at multiple levels.

“We hope this increased access will increase our adoption of technological innovations from around the country and also provide an opportunity to test supply chain improvements through Austmine.”

A recent Austmine member survey indicated it was difficult to do business with Tier One miners, particularly for small firms, the company said.

Austmine’s CEO, Chris Gibbs Stewart, said: “The smaller the company, the more difficult it is to get their foot in the door. Our partnership will enhance communications, build trust and make it easier to do business with BHP.

“We have a world-class METS sector which has a global reputation for problem solving, innovative solutions and advanced technology. Working with BHP in close collaboration, we will no doubt take this reputation to the next level.”

The partnership will contribute to Austmine’s goal of championing the Australian METS sector as global innovation leader and providing growth opportunities to members, Austmine added.

GR Engineering awarded with Abra EPC contract

Base metals, Mineral processing, Mineral project development, Mining services, Precious metals, , , , , , , , , ,

GR Engineering Services has been awarded a conditional engineering, procurement and construction (EPC) contract to deliver a 1.2 Mt/y lead sulphide flotation process plant and ancillary infrastructure for Galena Mining’s Abra Base Metals project in Western Australia.

The award, worth some A$74 million ($50 million), follows work carried out by the ASX-listed engineering company on the feasibility study and at the preliminary design stage of Abra.

The work will be undertaken on a guaranteed maximum price basis, according to GR Engineering, which confirmed that the contract remained subject to GR Engineering being issued with a full notice to proceed. This is dependent on Abra Mining Pty, Galena’s operating subsidiary, achieving financial close on its proposed project financing facilities. Galena, which owns 86.16% of the project through Abra, has said it will require A$170 million of pre-development capex to get the mine up and running.

GR Engineering has already commenced early engineering works up to an agreed capped amount, it said.

Geoff Jones, Managing Director of GR Engineering, said: “We are pleased to have been awarded the contract for the delivery of the Abra Base Metals project, which has followed GR Engineering’s involvement to date in the project’s feasibility study and preliminary design work.”

Galena completed a definitive feasibility study on Abra last year for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

Earlier this month, the construction of the Abra box cut commenced (pictured).

BHP looking at Australia-wide deployment of Supply Innovation program, Udd says

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Following the successful introduction of a Supply Innovation program in Chile, BHP is now piloting this same platform at its Olympic Dam copper-gold-uranium mine in South Australia, Rag Udd, VP Technology Global Transformation at BHP, told delegates at the AustMine 2019 conference in Brisbane, Australia, this week.

Speaking at the packed event – reported to have broken past attendance records – Udd said BHP was looking to local suppliers to “solve challenges and, in turn, stimulate innovation” and could potentially expand the use of this platform throughout Australia.

He said the company needed to work differently to achieve its new procurement goals, which included “removing barriers to doing business with us”.

Udd pointed to the company’s Supply Innovation program, which originated in Chile, as evidence of the company’s progress in this space.

“This program has seen us create an open platform to connect our unique mining challenges with local suppliers and innovators,” he told delegates.

Rather than ask for a specific service or equipment – as has often been the way in the past – the platform enables suppliers to bring their innovations to the mining major, he said.

It was this platform that led to BHP introducing a new Trommel Maintenance Robot at its majority-owned Escondida copper operation, in Chile. Developed collaboratively by FLSmidth and local Chilean supplier MIRS, the robotic arm has benefits for safety and productivity, according to BHP.

Udd said the company is now piloting this program at Olympic Dam, with a view to establishing the platform on a national basis.