Tag Archives: SIMPEC

SIMPEC awarded significant Cloudbreak crusher contract from Fortescue

SIMPEC’s relationship with Fortescue Metals Group continues to strengthen, with the engineering contractor set to replace two Metso Outotec Nordberg® C160 jaw crushers at the miner’s Cloudbreak iron ore operation in the Pilbara of Western Australia.

The WestStar Industrial Ltd subsidiary’s new contract for the Hopper 5 Jaw Crusher Replacement project is the first win directly from Fortescue but is far from the first time the company has stepped on site at one of its mines. SIMPEC has previously carried out work on its operations after being subcontracted by the likes of Central Systems, Energy Power Systems, ATCO and others.

The scope of the jaw crusher contract includes removal of all structural and mechanical items required to access the jaw crushers, followed by reinstatement on completion of the change out. It also includes maintenance works and modifications to the existing Hopper 5 hoppers, chutes and screens, SIMPEC said.

Worth A$2.1 million ($1.6 million), the vertical contract has commenced immediately, with works expected to be completed in April.

SIMPEC Managing Director, Mark Dimasi, said: “It has been a long-term goal of SIMPEC to work directly for Fortescue and to break into the field of sustaining capital works. By building our sustaining capital portfolio, SIMPEC aims to achieve a more stable cash flow as well as provide continuity for our workforce.

“This is a very proud moment for the team, and we look forward to successful completion of this project and what we hope will be a long-term relationship with Fortescue.”

SIMPEC to help Central Systems with Fortescue Solomon Hub work

SIMPEC is to supply and install the electrical, instrumentation and communication works for the Solomon Central Facilities Workshop Yard at Fortescue Metals Group’s Solomon Hub iron ore operations in the Pilbara of Western Australia.

The contract, awarded by Central Systems, is valued at A$7 million ($5.4 million), according to SIMPEC, WestStar Industrial’s engineering contractor business. Work has commenced immediately.

FMG Solomon Pty Ltd, a subsidiary of Fortescue, is developing the Solomon Central Facilities Workshop Yard, which involves consolidating various workshops, facilities and other non-process infrastructure into a centralised location. Central Systems was awarded the A$57.5 million design and construct contract for the Central Facilities (picture courtesy of Central Systems) back in October, and SIMPEC will be working with the company on site to supply and install the electrical, instrumentation and communication works for these facilities.

This award, SIMPEC’s first from Central Systems, builds on the portfolio of non-process infrastructure work packages successfully undertaken by SIMPEC across Western Australia and Sydney, New South Wales, the company said.

SIMPEC Managing Director, Mark Dimasi, noted: “To be part of this new development in the non-process infrastructure space on a Fortescue Metals Group project is very rewarding for the team. This large project allows SIMPEC to showcase its true electrical and instrumentation capabilities.”

Fortescue’s Solomon Hub is in the Hamersley Ranges and comprises the Firetail and Kings Valley mines, which together have a production capacity of 75 Mt/y. At the hub, higher iron grade, low cost Firetail ore is blended with low phosphorous Chichester ore to create the company’s Fortescue Blend.

IronMerge SIMPEC joint venture to work on Pilgangoora lithium operation

SIMPEC and IronMerge have secured their first contract under a newly incorporated joint venture, with the IronMerge SIMPEC JV to work on Pilbara Minerals’ Pilgangoora lithium operation in Western Australia.

WestStar Industrial Ltd’s SIMPEC formed its first Aboriginal Business joint venture, IronMerge SIMPEC JV, with IronMerge Pty Ltd just last month.

The Stage 1 A$15 million ($11.7 million) improvement works contract at Pilgangoora involves a series of works to improve operating time and throughput as part of continuous improvement to operational performance of Pilgangoora’s Stage 1, 2 Mt/y processing facility.

SIMPEC has been contracted to perform all vertical installation works including earth works, civils, fabrication, structural, mechanical, piping, tanks, electrical and instrumentation works for the project. All works will be conducted with joint venture partner IronMerge.

The Pilgangoora lithium-tantalum project has a current resource of 222.5 Mt and existing JORC compliant reserves of 104.6 Mt.

SIMPEC Managing Director, Mark Dimasi (pictured on the right), said: “This newly awarded contract is a tribute to not only our SIMPEC delivery team but also Ian Taylor (Chairman of IronMerge, pictured in the middle next to Ken Brinsden, MD and CEO of Pilbara Minerals, on the left) and his IronMerge team. This is a very proud moment for all of us and I sincerely look forward to seeing this JV relationship growing and developing in the construction and mining sector. A big thank you to the Pilbara Minerals team for backing us throughout this tender phase.”

SIMPEC and IronMerge create Aboriginal Business JV serving the Pilbara

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.

FQM awards Ravensthorpe nickel E&I package to SIMPEC

SIMPEC says it has been contracted by First Quantum Minerals (FQM) to deliver an electrical and instrumentation (E&I) package at the Ravensthorpe nickel operations’ Shoemaker-Levy project, in Western Australia.

This material, newly awarded contract is SIMPEC’s first with FQM, the company said.

The contract scope is for the E&I portion of work for Shoemaker-Levy, with the value expected to be around A$9 million ($6.8 million).

The works are planned to commence immediately and be completed by mid-2021, the WestStar Industrial subsidiary says.

With FQM restarting Ravensthorpe in early 2020, it has been expanding into a second stage nickel laterite deposit, Shoemaker-Levy, to provide the operation with a long-term life of around 30 years.

SIMPEC to help with plant handover at Tianqi Lithium’s Kwinana plant

SIMPEC has added to its existing scope of works at the Tianqi Lithium-owned lithium hydroxide process plant (LHPP1) in Kwinana, Western Australia, with a new A$5 million ($3.34 million) contract to carry out structural, mechanical, piping, and electrical and instrumentation work at the operation.

This work, which comes on top of the pyromet piping installation contract the WestStar Industrial subsidiary was awarded by lead contractor MSP Engineering in 2018, will assist Tianqi with the handover of the plant to the operations team.

SIMPEC Managing Director, Mark Dimasi, said: “This award is a true reflection of our team’s performance to date on the LHPP1 project. An outstanding effort by everyone involved. I personally would like to thank all the MSP Engineering personnel for supporting our team over the past 10 months and Tianqi Lithium Kwinana for backing the incumbent SIMPEC site team.”

This new contract builds on previously announced extensions during the company’s 2020 financial year and brings contract awards received during the first half of this period to circa-A$23 million.

BHP engages WestStar’s Precast Australia for South Flank iron ore project work

WestStar Industrial subsidiaries SIMPEC and Precast Australia have won more contracts in Western Australia, with a notable win at BHP’s South Flank iron ore development in the Pilbara.

The two have been awarded A$3 million ($2.1 million) in contracted work, with engineering contractor business SIMPEC receiving circa-A$2 million in extensions to its current contracts in the state.

SIMPEC didn’t name any specific contracts within its statement, but the company recently won a contract to construct the 25 MW diesel power generation facility at Fortescue Metals Group’s Eliwana iron ore project in WA.

Prefabricated concrete construction business Precast Australia, meanwhile, has been awarded a contract by Georgiou Group to supply wall panels for the construction of a Costco Warehouse in the Perth Airport precinct. It has also been engaged directly by BHP to initially supply and deliver 200 precast concrete elements to South Flank. The company said there was an opportunity for substantial growth in this contract award.

In addition, Precast Australia was awarded contracts by RHG, Zorzi and Shelford, with total contracts awarded being circa-$1 million.

SIMPEC to power up FMG’s Eliwana iron ore mine

SIMPEC has been given another assignment at Fortescue Metals Group’s Eliwana iron ore mine and rail project in Western Australia, with a circa-A$5 million ($3.4 million) contract to construct the 25 MW diesel power generation facility at the operation set to keep it busy until July 2020.

The contract, which commences this month, was awarded to the WestStar business by Energy Power Systems. It is SIMPEC’s first full vertical installation package comprising of civil, structural, mechanical, piping, electrical and instrumentation works, the company said.

Under the agreement, SIMPEC will supply (partially), install, test and commission the 25 MW facilities for Eliwana, with the delivery executed over three separable portions.

Back in April, SIMPEC was awarded its largest single contract to date, with ATCO Structures and Logistics granting it a circa-A$10 million contract to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana. The contract was scheduled to commence in the middle of the year and take nine months to complete.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.

Fortescue breaks ground at $1.275 billion Eliwana iron ore development

Fortescue Metals Group says it has officially broken ground on the Eliwana iron ore mine and rail project in the Pilbara of Western Australia.

FMG Founder and Chairman, Andrew Forrest, was today joined by Mark McGowan, Premier of Western Australia, FMG CEO, Elizabeth Gaines, and the company’s core leadership team, for the official sod turning.

The $1.275 billion project includes the construction of 143 km of rail, a new 30 Mt/y dry ore processing facility (OPF) and infrastructure. First ore on train is expected in December 2020, the company says.

FMG says contracts to the value of A$330 million ($232 million) to date have been awarded to more than 250 Australian business entities as part of the Eliwana development, of which 80% are Western Australia-owned businesses. As further approvals are progressed, it is expected over A$500 million in additional contracts will be awarded by the end of 2019, FMG said.

Contract recipients include BGC Contracting for bulk earthworks and roads, NRW Holdings, also for bulk earthworks, and SIMPEC for electrical, communications and dry fire systems testing.

“Eliwana underpins the sustainable production of West Pilbara Fines and provides the flexibility for Fortescue to deliver products at greater than 60% Fe grade,” FMG said. “The development will utilise the latest technology, autonomous trucks and design efficiency, further cementing Fortescue’s world leading use of innovation across its mining operations.”

Forrest said: “This is a proud day for Fortescue as we celebrate the largest project since the Kings Valley mine in 2014.

“Since Fortescue was founded 16 years ago, we have held community and family at our core and continued to deliver on our commitment to be the safest, lowest cost company. Eliwana is the next great step into the Western Hub, enhancing our profitability and extending our mine life.”

The project will generate up to 1,900 jobs during construction and 500 full-time site positions once operational, according to Forrest.

Gaines said: “The Eliwana project will build on Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara. Eliwana is core to the next phase of development in Fortescue’s world class, innovative operations. The project will see us maintain our low-cost status, provide us with greater flexibility to deliver on our integrated operations and marketing strategy and, when combined with the Iron Bridge Magnetite development, it will increase Fortescue’s average product grade and provide the ability to deliver the majority of our products at greater than 60% Fe, consistent with our long term goal.”

SIMPEC starts FY2020 with more WA contract extensions

SIMPEC has continued to add to its structural, mechanical and piping (SMP), and electrical and instrumentation (E&I) work, in Western Australia, bolting on another A$5 million ($3.49 million) to its current list of contracts.

Having been awarded contracts totalling A$50 million in its 2019 financial year to end-June, the WestStar subsidiary has started its 2020 financial year strongly.

Although the company didn’t mention the specific contracts it had won extensions on, SIMPEC has previously been awarded work involving pyromet piping installation at the lithium hydroxide process plant (LHPP1) at Tianqi Lithium’s Kwinana project (pictured), in addition to installing electrical and communications systems at the Rio Tinto’s West Angelas iron ore mine construction camp.

The latest news come less than two weeks since SIMPEC registered A$2.5 million of extensions to previous contracts.

SIMPEC Managing Director, Mark Dimasi, said: “Having delivered a strong pipeline of contract awards over the past year, SIMPEC continues to consolidate its position and build its credentials on major projects.”

The company added: “SIMPEC continues to tender strongly for new work and expects outcomes from these tendering activities in due course.”