Tag Archives: Sedgman

Cementation, Sedgman to start work on Nevada Copper’s Pumpkin Hollow project

Nevada Copper’s board has made the decision to proceed to full construction at the Pumpkin Hollow project in Nevada, US, paving the way for its contractors to start working on the new underground mine.

The construction sign off follows a recently completed C$108.5 million ($84 million) public offering of Nevada Copper common shares and pre-construction activities that have been ongoing since May 2018.

Nevada Copper said the transition from pre-construction works to full-scale construction was expected to commence shortly. The 2017 prefeasibility study plan outlined a 5,000 t/d underground project able to produce some 50 MIb/y (22,680 t/y) of copper over a 13.5-year life at all-in sustaining costs of $1.96/Ib, while also laying the foundations for a larger integrated project that includes openpit development and could increase throughput to 70,000 t/d.

In connection with the construction decision, Nevada Copper has awarded a mining contract for shaft sinking and underground mine development work at Pumpkin Hollow to Cementation USA. The contractor has previously worked on the project, having sunk the existing production shaft (down to 579 m) and developed hoist infrastructure in advance of commencement of underground construction activities.

Sedgman USA, a member of the CIMIC Group, has received the engineering, procurement and construction contract for the surface plant and infrastructure at Pumpkin Hollow. The fixed price $118 million contract follows several months of a detailed engineering and design programme conducted by Sedgman incorporating a number of significant improvements to the prefeasibility study for the $197 million underground project.

These improvements are all part of Nevada Copper’s latest review and detailed design for the underground project, which, it says, has led to a number of project optimisations and operational de-risking measures being incorporated in the mine design.

This includes a centralised mine design, providing greater operational efficiency for the underground mine, and construction of a ventilation shaft via blind sink, which provides a lower-risk method to support schedule compliance and further enhances optionality for future operations, the company said.

“Further project enhancements continue to be reviewed by Nevada Copper, including debottlenecking to subsequently increase production throughput and the potential for decline access to the E2 orebody.”

Nevada Copper anticipates first concentrate production from Pumpkin Hollow in the December quarter of 2019.

Sedgman secures $310 million contracts for Boikarabelo coal mine works

Resource Generation Ltd subsidiary Ledjadja Coal has signed three separate EPC agreements with CIMIC Group subsidiary Sedgman that will see the contractor carry out major work at the Boikarabelo coal mine in Limpopo Province, South Africa.

The three contracts cover design, procurement, construction, commissioning, operations and maintenance of the operation’s coal handling preparation plant (CHPP), plus the ancillary works relating to mine infrastructure.

The CHPP will be designed to handle 15 million tonnes of raw coal per year and, under the provisions of the operations and maintenance contract, Sedgman will operate and maintain the plant for four years after commissioning, “subject to strict performance criteria”, ResGen said.

The ancillary works is likely to involve construction of infrastructure associated with the CHPP, plus additional buildings, piping, electrical works, water and drainage during mine development.

Some 15 Mt of run of mine coal will be mined every year at Boikarabelo, but the company expects to produce 3.6 Mt/y of export product (25.7 MJ per kg on an air dried basis) and 2.4 Mt/y of domestic product (19.5 MJ/kg on an air dried basis).

Boikarabelo, in the Waterberg region of Limpopo, has 995 Mt of JORC resources and 267 Mt of JORC reserves. The mine requires a rail link to allow for exports, which is expected to cost R650 million ($49 million) in upfront capital, plus another R300 million during its ramp-up.

The value of the engineering design, construction and commissioning of the CHPP plant and the construction of the ancillary works infrastructure contracts is $210 million, while the operations and maintenance contract is valued at $100 million.

Grant Fraser, Sedgman Managing Director, said: “We are pleased to be able to deliver our whole-of-life approach to this important project – building the processing plant and providing ongoing operational involvement for Resource Generation, and its South African subsidiary Ledjadja Coal.

Papi Molotsane, Acting CEO of Ledjadja Coal, said Sedgman’s successful delivery of coal projects in southern Africa and the ability to wrap the contracts into lump-sum solutions were key to the contractor winning the work.

Work is expected to commence once the Boikarabelo project funding has been finalised, with debt providers currently in the final process of credit approvals, CIMIC said.