Tag Archives: Sojitz

Mastermyne to take on ‘Whole of Mine Operations’ at Sojitz’s Gregory Crinum

Mastermyne Group says it has been awarded the Mining Services Contract to operate the Gregory Crinum underground mine in Queensland, Australia, owned by Sojitz Blue Pty Ltd.

The contract term is seven years, including re-establishment, with the value coming in at A$600-660 million ($464-510 million), the company reported.

During 2020, Sojitz appointed Mastermyne to undertake a feasibility study focusing on the development of a high productivity bord and pillar mining operation. In parallel, Mastermyne was also engaged as the Mine Operator to undertake the re-entry process. The underground mining area was successfully re-entered in late October 2020, with no issues encountered, according to the contractor. Mastermyne continued as the Mine Operator while Sojitz finalised internal approvals.

The re-establishment project scope includes the re-establishment of the underground infrastructure including conveyor systems, ventilation, associated mine services, remediation works and surface infrastructure, all of which is expected to take around six months. Following these works, the mine will immediately transition into production with a staged ramp up to three bord and pillar mining units.

The underground mine is expected to produce around 11 Mt run of mine over the life of the project, with mining production planned to commence later this year.

At full production, the underground mine is expected to employ 180 full-time personnel. Mastermyne will provide underground mining equipment from its current fleet, including three bord & pillar miners, multi bolters and shuttle cars along with a range of ancillary production equipment to support the operation. The contract is expected to deliver on average A$80-100 million of revenue per year once in full production, Mastermyne says.

“Initial funding for the project establishment will be a combination of Sojitz capital and Mastermyne capital with the company drawing on its strong cash position and available funding lines to finance the project,” Mastermyne said. “The company’s capital contribution will primarily fund the overhaul of the mining fleet and ancillary mining equipment, which will be recovered over the term of the contract.”

Mastermyne intends to retain ownership of its mining equipment throughout the project.

Mastermyne CEO, Tony Caruso, said: “The execution of our first Whole of Mine Operations contract is a major milestone for Mastermyne and is significant in transitioning the business into a commercial model that is not only complimentary to the existing contracting model, but will provide an even greater level of earnings certainty over the long term.”

Sojitz CEO, Cameron Vorias, said: “We are delighted to have Mastermyne as our highly regarded partner for this development and it will support our strategic plans for the growth of high quality hard coking coal from the area.”

DRA Global to help Gregory Crinum coal mine get back to business

DRA Global says it has been selected by Sojitz as the preferred partner for the restart and operations and maintenance of the Gregory Crinum metallurgical coal mine in Queensland’s Bowen Basin, Australia.

Sojitz Coal Mining announced, this week, that it has officially taken ownership of Gregory Crinum, near Emerald in Central Queensland, from BHP Billiton Mitsubishi Alliance joint venture partners BHP and Mitsubishi Development. This followed a A$100 million ($71 million) agreement the companies signed last year.

Cameron Vorias, CEO and Managing Director of Sojitz Coal Mining, said: “Recommencement of mining operations at Gregory Crinum will deliver significant benefits to all our stakeholders in addition to ensuring security of supply of hard coking coal to our valued customers, as well as providing jobs and strengthening the economy for the people in the Emerald, Springsure and Cappella Area and the State of Queensland.”

Vorias said DRA offered the best solutions in relation to the refurbishment of the processing plant and the overall operations and maintenance philosophy, and “providing true integrated maintenance through their wholly-owned maintenance business G&S Engineering”.

DRA Global acquired G&S Engineering in July, as the company looked to expand its footprint and project execution capabilities in Australia.

The restart of Gregory Crinum will be delivered in two stages with the first stage focusing on the refurbishment of the processing plant followed by the full operations and maintenance contract of the processing plant for the next three years.

Sojitz said previously that the mine will have an annual capacity of up to 3 Mt/y when fully operational, with a life of more than 20 years. It also said restart operations would begin in the first half of its 2019 financial year, with the first shipment of coal in the second half of the year.

The site comprises the Crinum underground mine, Gregory open-pit mine, undeveloped coal resources and on-site infrastructure including a coal handling and preparation plant, maintenance workshops and administration facilities.

Gregory Crinum Mine’s capacity was 6 Mt/y of hard coking coal when production ceased and it was placed into care and maintenance in January 2016.