Tag Archives: SMS Mining Services

SMS Mining Services extends contract with Norton Gold Fields in Kalgoorlie

Equipment maintenance, Mine operation news, Mining equipment, Mining services, Precious metals, , , ,

SMS Mining Services says it has been awarded a three-year extension to continue with maintenance and repair contract (MARC) services and equipment rental work for Norton Gold Fields (NGF) at its Kalgoorlie gold operations.

Upon being awarded the MARC contract at NGF’s Matts Dam South gold project last year, the mining contractor said it held the MARC services and equipment rental contracts for all current operating open-pit mines for NGF and had previously provided mining services works at its Racetrack gold project.

Its relationship with NGF dates back to 2013, with one of its earliest contracts being the MARC, equipment hire and maintenance for the Enterprise deposit, located 38 km northwest of NGF’s Paddington mill, in Western Australia.

According to SMS’ website, it supplies 120-360 t excavators, 100-190 t haul trucks and ancillary equipment to this site.

Mitchell Services enters new drill and blast territory at Kirkalocka

Explosives and blasting, Mineral project development, Mining equipment, Mining project news, Mining services, Precious metals, , , , , , ,

Australia-listed Mitchell Services has entered the drill and blast production drilling market with the award of a new contract at Adaman Resources’ Kirklalocka gold project in Western Australia.

The circa-A$33 million ($23 million), five-year contract, with mining services provider SMS Innovative Mining Pty, will see Mitchell initially deploy two rigs to service the drill and blast contract with a third rig to be provided in late 2019.

Mitchell Services CEO, Andrew Elf, said: “The multi-year, multi-rig contract award further strengthens the quality of our revenue base and will result in the company now playing a direct role in the production of the mine. This is a service offering that we are strategically focused on growing and the award of this contract provides an ideal platform to do so. It also continues to expand our footprint within Western Australia adding both service and geographic diversification.”

Mitchell Group Holdings, an entity associated with Mitchell Services Executive Chairman, Nathan Mitchell, owns a 33% stake in the Kirklalocka gold project, with SMS Mining Services owning another 33%.

Back in October, SMS Mining Services secured preferred contractor status for Kirkalocka, with the four-year contract consisting of open-pit mining services including load and haul, drill and blast, and mine development. SMS said at the time drilling was underway to extend the mine life beyond the current six years.

Since then, MACA has won a contract to install a new SAG mill and refurbish an existing mineral processing plant at Kirkalocka.

SMS Mining Services receives A$640 million of new gold project contracts

Mineral project development, Mining equipment, Mining project news, Mining services, Precious metals, , , , , ,

Western Australia-based contractor SMS Mining Services has been named as the preferred mining contractor for both Capricorn Metals’ Karlawinda gold project near Newman and Adaman Resources’ Kirkalocka gold project near Mt Magnet.

The two contracts are worth A$640 million combined – A$420 million ($301 million) for Karlawinda and A$220 million for Kirkalocka – and push SMS’ contract book past the A$1 billion mark, according to SMS Managing Director Danny Sweeney.

Sweeney added that the company also has contracts in the pipeline extending out to 2027, and a remaining tender pipeline of over A$1.2 billion.

The Karlawinda gold contract is for a duration of eight years and 10 months, representing the entire life of mine. It will consist of open-pit mining services including load and haul, drill and blast, and mine development.

SMS will mobilise new and existing equipment, and deploy significant technology and operational initiatives, the company said.

“We are excited to be part of Capricorn Metals story. We look forward to forging a successful long-term partnership and supporting the company in bringing the Karlawinda gold project into production in 2019,” Sweeney said.

Formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming months. Contract works are due to start in the June quarter of 2019.

A feasibility study on development of the Bibra deposit at Karlawinda was completed in October 2017. This envisaged a a single large open-pit deposit feeding a 3 Mt/y CIL processing plant, producing approximately 100,000 oz/y of gold at an average all-in sustaining cost of A$1,025/oz over the initial mine life.

Meanwhile, the company has also secured preferred contractor status for Adaman’s Kirkalocka project, 70 km south of Mount Magnet. SMS owns a 33% stake in privately-owned Adaman Resources as part of its equity strategy of supporting small and mid-tier miners to enter production.

The four-year contract with an option to extend will consist of open-pit mining services including load and haul, drill and blast, and mine development. Drilling is currently is underway to extend the mine life beyond the current six years.

Again, formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming weeks. Contract works are due to start in late 2018.