Tag Archives: Sedgman

Artemis awards Blackwater gold EPC contract to Sedgman Canada

Artemis Gold Inc says it has made an award for the engineering, procurement, construction and commissioning (EPC) scope of works for the processing plant and associated infrastructure at its Blackwater project in British Columbia, Canada, to Sedgman Canada Limited, a CIMIC Group company.

The award amount of approximately C$312 million ($243 million) is consistent with the prescribed budget for the process plant and selected infrastructure scope of works in the 2021 feasibility study.

Sedgman Canada Limited is a wholly owned subsidiary company of Sedgman Pty Limited, a CIMIC Group company. CIMIC Group (ASX:CIM) is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of assets, infrastructure and resources projects.

The EPC contract is expected to be executed by June 30, 2022, with the contract supported by performance security including bank letters of credit, which will underwrite the financial performance and obligations of the contractor under the contract.

While the parties finalise the definitive EPC contract, in order to maintain the project schedule, an interim services agreement has been agreed which could cover procurement and pricing of long lead equipment and optimisation through refined scope changes, among other aspects.

The project schedule supporting the award to Sedgman includes the following assumptions:

  • Construction mobilisation and major works preparations commence in Fall 2022 with process plant bulk earthworks scheduled to be completed prior to the start of major works;
  • Commissioning activities of the process facility to commence in Q1 (March quarter) 2024; and
  • First gold pour expected in the first half of 2024.

The final EPC contract terms will provide for potential cost adjustments of certain components of construction representing approximately less than 15% of the total contract amount, including the potential for cost adjustments from further quantity definition, Artemis said. Standard adjustments, including currency exchange rates for certain equipment purchases also apply, and further optimisation of the processing plant with final engineering will occur.

Artemis is also considering awarding additional construction packages under an EPC agreement type structure to further enhance the risk management of the total capital expenditure for Blackwater, it said.

When combined with the EPC for the Power Transmission Line announced on August 18, 2021, the percentage of the estimated total capital expenditure for Blackwater under EPC is on track to target circa-60% of the initial Stage 1 development capital of C$645 million in a lump sum EPC type arrangement by the September quarter of 2022.

Stage 1 development should lead to the building of a 6-9 Mt/y operation (6 Mt/y in years 1-4 and 9 Mt/y in year 5) able to produce around 312,000 oz/y of gold.

Steven Dean, Chairman and CEO, said: “The award of the EPC job for the process plant at Blackwater is another significant milestone for Artemis, reflecting a competitive process involving multiple bidders. We are very pleased to be working with a world-class engineering firm in Sedgman. In partnership, we will work to finalise the design and engineering of the Blackwater project in advance of a start of major development activities. Blackwater remains on track for a start of major construction activities following receipt of Mines Act and other permits in Fall 2022 with a first gold pour in H1 2024.”

Aspire signs up Sedgman for Ovoot coking coal project FEED study

Aspire Mining Ltd has contracted Sedgman Pty Limited to prepare a Front End Engineering and Design (FEED) study on coal handling and preparation plant (CHPP) infrastructure to support commencement of operations at the Ovoot coking coal project (OCCP) in Mongolia.

Sedgman, a wholly owned subsidiary of CIMIC, is a leading provider of integrated minerals processing solutions with experience delivering processing solutions. It has provided technical input and various studies supporting the economics of the OCCP from discovery of the deposit in 2010.

The FEED study will be conducted in a phased approach, over a period of approximately five months. Stage 1 will comprise trade-off analyses to identify the most appropriate concepts and technologies, which will take approximately eight weeks. Stage 2 will then focus on the agreed path and will produce accurate estimates of capital and operating costs, and designs to enable tendering for construction. The work will be completed under a schedule of rates arrangement, with total cost of A$600,000 ($464,583) estimated, Aspire said.

The intended CHPP infrastructure to be investigated will be based on existing modular designs and will enable low impact processing of approximately 1.5 Mt/y of run-of-mine coal, with capability for later expansion, Aspire said. Important criteria for the design include low energy and water consumption, and stringent dust control.

Sedgman Managing Director, Grant Fraser, said: “Sedgman appreciated the opportunity to work with Aspire and is focused on delivering value through progressing an innovative solution for the project.

“This study is a great opportunity to work with one of our longstanding clients to support the future development of the OCCP.”

Sedgman books tailings dewatering work at QCoal’s Byerwen coal mine

CIMIC Group’s minerals processing company, Sedgman, has been awarded a contract to design and construct a tailings dewatering facility at QCoal’s Byerwen coal mine in central Queensland, Australia.

The project will result in a lower operational risk profile, less power usage, and improved water recovery and management of dewatering chemicals, Sedgman says.

Sedgman Managing Director, Grant Fraser, said: “We are pleased to continue working with QCoal with a key focus on reducing impacts and undertaking environmentally responsible practices. The tailings dewatering contract at Byerwen is a great opportunity to achieve joint goals in ESG, an important focus for the industry.”

Construction work for the Byerwen mine will commence this month and the project will conclude in mid-2022.

Back in October, Sedgman was awarded two contract extensions by QCoal to continue to operate and maintain its Sonoma and Byerwen mines processing plants in Queensland.

Sedgman to operate Mount Pleasant CHP facility for another three years

CIMIC Group’s minerals processing company, Sedgman, has been awarded an extended operations and maintenance services contract at the MACH Energy-owned Mount Pleasant coal mine in New South Wales, Australia.

Sedgman will operate and maintain MACH Energy’s 1,500 t/h Mount Pleasant Coal Handling and Preparation facility for an additional three years, with the extension generating revenue of A$120 million ($91 million) to Sedgman, bringing total revenue from the contract to A$200 million.

CIMIC Group Executive Chairman and Chief Executive Officer, Juan Santamaria, said: “Sedgman and the CIMIC Group have a strong history with MACH Energy which we’re pleased to continue. Sedgman’s leadership in minerals processing will ensure maximum resource recovery for our long-term client.”

Sedgman Managing Director, Grant Fraser, said: “This contract is testament to the partnership we have forged with MACH Energy, and the integration of our engineering and operations capability.”

Sedgman completed the construction of this facility and has been operating the plant since 2019.

Sedgman wins three-year extensions at QCoal’s Sonoma, Byerwen mines

CIMIC Group’s minerals processing company, Sedgman, has been awarded two contract extensions by QCoal to continue to operate and maintain its Sonoma and Byerwen mines processing plants in Queensland, Australia.

The three-year extensions will generate revenue of A$166 million ($118 million) for Sedgman.

The agreements replace and extend Sedgman’s existing agreements at the mines, continuing CIMIC Group’s long-standing relationship with QCoal.

CIMIC Group Chief Executive Officer, Juan Santamaria, said: “We have a strong history of delivering consistent outcomes for QCoal, through our companies Sedgman and Thiess. Sedgman’s expertise in minerals processing and focus on maximum resource recovery will help drive even greater efficiencies at these mines.”

Sedgman Managing Director, Grant Fraser, said: “These contracts are testament to the partnership we have forged with QCoal over many years, and the integration of our engineering design, project delivery and operations teams.”

Sedgman undertook the engineering design, construction and commissioning of the coal handling and preparation plant at Sonoma in 2007, and has continued to optimise and expand the facility, operating it since 2007.

Sedgman delivered engineering, procurement, construction and commissioning services for a 4,500 t/h train loadout facility and processing plant at Byerwen in 2017, and the engineering, procurement, construction and commissioning of a duplication of the 550 t/h coal handling and processing plant in 2018, operating it since then.

CIMIC eyes more coal work as Q1 financials hold up

Australia-based engineering-led group, CIMIC, posted “robust” operating profit margins in its March quarter results, remarking that the mining market is proving resilient throughout the turbulence caused by the fallout of the COVID-19 pandemic.

Revenue came in at A$3.3 billion ($2.1 billion) for the three-month period, slightly down on last year’s A$3.4 billion, while net profit after tax was A$166 million, compared with A$181.1 million in the March quarter of 2019.

Its operating profit margin was 8.4% for the period.

Throughout the quarter, the company said it had witnessed stable investment in capital expenditure to sustain mining operations. Its UGL subsidiary secured contracts to provide maintenance, shutdown and project services for clients in the mining sector, and its Thiess and Sedgman subsidiaries secured framework agreements with Rio Tinto Iron Ore, in Western Australia, and variations to operations contracts in New South Wales, respectively.

The future prospects for the company look good with, as at March 31, around A$90 billion of tenders relevant to CIMIC expected to be bid and/or awarded for the remainder of 2020, and around A$400 billion of projects coming to the market in 2021 and beyond, it said.

Some major projects the company is currently bidding on include the Lake Vermont mining extension contract in Queensland, Australia. CIMIC’s Thiess is currently working on this Jellinbah Group-owned coal asset through a schedule of rates contract that sees it carry out coal mining, clearing and grubbing, topsoil removal, drill and blast, overburden removal and rehabilitation of final landforms. It also provides all mobile plant and equipment and operates and maintains the client’s coal handling and preparation plant at the site, according to Thiess.

Another contract the company is eying up for more work is the Kaltim Prima Coal (KPC) mining extension in Indonesia. Again, Thiess has a schedule of rates contract in place at the 11 Mt/y Sangatta coal operation and the company hopes it can continue its relationship with the mine with a 2022 contract extension.

Nevada Copper ships first Pumpkin Hollow concentrate

Following the start of production on December 16, Nevada Copper has shipped the first copper concentrate from its Pumpkin Hollow copper mine, in Nevada, USA.

Having reached these milestones, the company is now focused on ramping up the mine, in Yerington, to reach nameplate capacity in the first half of 2020.

The 2017 prefeasibility study plan for the underground mine outlined a 5,000 t/d project able to produce some 50 MIb/y (22,680 t/y) of copper, 8,000 oz of gold and 150,000 oz of silver over a 13.5-year life at all-in sustaining costs of $1.96/Ib of copper. It also laid the foundations for a larger integrated project that includes open-pit development and could increase throughput to 70,000 t/d.

Matt Gili, Chief Executive Officer of Nevada Copper, said: “Our first shipment of copper concentrate has left Pumpkin Hollow, representing another important milestone as we look forward to continuing our ramp-up to full commercial production in 2020.”

Both Cementation USA and Sedgman USA were involved in the Pumpkin Hollow build, with the former carrying out shaft sinking and underground mine development work and the latter completing the engineering, procurement and construction contract for the surface plant and infrastructure.

CIMIC exceeds profit guidance in 2018, positive on 2019 and beyond

CIMIC says it is expecting to top its net profit after tax 2018 result this year, supported by, among other things, continued strong performance out of the mining sector.

The engineering company, which has a number of mining-related subsidiaries, recorded net profit after tax of A$781 million ($557 million) in 2018, alongside revenue of A$14.7 billion. The former was up 11% year-on-year and at the top end of guidance of A$720-$780 million, while the latter rose 9% year-on-year. CIMIC said all its operating companies recorded growth during 2018.

And, the good news for CIMIC shareholders is that the company estimates its net profit after tax will increase in 2019, with guidance pitched at A$790-$840 million, subject to market conditions.

CIMIC Group Executive Chairman, Marcelino Fernández Verdes, said: “In 2018, we focused on enhancing the capability of our operating companies to provide integrated solutions, ensuring we deliver enduring value for our clients across the lifecycle of their assets, infrastructure and resources projects.

“This collaborative approach has driven an excellent result for our shareholders, is providing exciting opportunities for our people, and will power the next phase of our transformation through digitalisation and innovation.”

In mining, specifically, the company referenced some notable achievements in its results release. This included significant mining services contracts at the Mt Arthur coal operation in the Hunter Valley, Australia, and at the Encuentro Oxides mine in Chile for Thiess; maintenance and shutdown support services by UGL across BHP Billiton Mitsubishi Alliance coal mines in Queensland’s Bowen Basin; and engineering, procurement and construction of the Pumpkin Hollow copper concentrator in Nevada, US, by Sedgman.

The company also secured a A$150 million contract extension at BHP’s Caval Ridge coal mine (pictured) in Queensland.

CIMIC said: “Looking forward, at least A$130 billion of tenders relevant to CIMIC Group are expected to be bid and/or awarded in 2019, and around A$300 billion of projects are coming to the market in 2020 and beyond, including about $120 billion worth of public-private partnership (PPP) projects.”

Fernández Verdes added: “Our pipeline of work has further increased and we have a positive outlook for 2019 and beyond. This is led by the strong performance of the mining sector, an increasing level of infrastructure opportunities in Australia, and the trends towards more outsourcing of services and for greater investment in PPPs.”

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

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.

Pybar starts underground mining at Heron’s Woodlawn zinc project

Pybar Mining Services has started up underground mining at Heron Resources’ Woodlawn zinc project in New South Wales, Australia, ahead of full commissioning by the end of the year.

The company entered into a four-year underground mining contract with Pybar in February and the contractor has now kicked off mining. This includes the ground support of box cut walls and the first portal blast of the decline.

Heron said the overall project, as of the end of August, was 73% complete, with earthworks substantially concluded, equipment purchasing at 98%, concrete almost complete and offsite fabrication 92% signed off. Sedgman is the EPC contractor.

Woodlawn is envisaged as a 1.5 Mt/y operation able to produce 40,000 t/y of zinc, 10,000 t/y of copper and 12,000 t/y of lead at steady-state production over a 9.3-year mine life. This is based on a reserve base of 2.8 Mt at 14% ZnEq from underground and 9.5 Mt at 6% ZnEq from reprocessed tailings.

The operation is set to use an IsaMill™ to treat the zinc-rich reclaimed tailings, as well as polymetallic primary ore in different processing modes. The 3 MW 10,000 IsaMill comes with an IsaCharger™ media delivery system, as well as commissioning services from Glencore Technology.

Heron’s Managing Director Wayne Taylor said: “Exploration over the last four years has defined a very high-grade, high-quality resource and reserve position, and the access which has now commenced will enable us to deliver underground ore into the processing plant in 2019.

“Once underground, our geological team will focus on further expanding the known mineralised positions to build upon the excellent and cost-effective work they have undertaken to date.

“Elsewhere on site, I am pleased to report that good progress continues to be made with all aspects of the build, and that works remain on schedule for the commissioning by the end of the year.”