Tag Archives: STRACON

STRACON and RIPCONCIV look to collaborate on Curipamba-El Domo copper-gold mine build

Adventus Mining Corporation and Salazar Resources Limited have signed a Letter of Intent (LOI) for the award of a mining and construction contract to a joint venture between STRACON S.A., an established Peruvian mining contractor with operations throughout Latin America, and RIPCONCIV, a large and respected Ecuadorian infrastructure construction contractor, related to development of the Curipamba-El Domo copper-gold project in central Ecuador.

The LOI allows the parties to immediately commence activities relating to local community-targeted training and employment, constructability reviews, logistics studies and execution planning – all of which are value-add activities directly supporting Adventus and Salazar’s plan to formally commence construction of the project in the June quarter of 2023.

A definitive agreement is expected to be executed in the December quarter of 2022, which will be structured in an alliance-partnership model to ensure focus on the best solutions for the project while ensuring that risks are allocated to the parties best equipped to manage and mitigate. The STRACON-RIPCONCIV JV will be responsible for the successful construction of the open pit, tailings facilities, and associated mine infrastructure as well as the first two years of mine operation.

In 2021, Adventus and Salazar released an open-pit mine feasibility study and updated preliminary economic assessment on a separate underground mine option for the project. This outlined a 10-year open-pit operation producing, on average, 21,390 t/y of copper-equivalent over the 10-year life-of-mine, alongside 20,000 t/y of copper-equivalent payable output from years 11-14 from the underground.

On site, focus has been on drilling to support the detailed engineering program and the implementation of health, safety, security and environmental management plans in anticipation of formal construction commencement in the June quarter of 2023.

Work continues to advance on site with an ongoing pre-construction program involving activities such as geotechnical and hydrogeological drilling, camp installation, IT, infrastructure, logistics planning, community hiring, public and private security provisions, water management and electrical power systems.

A contract for the detailed engineering and design of the tailings storage facility (TSF), waste rock facilities (WRF) and associated infrastructure was recently awarded to engineering firm Klohn Crippen Berger (KCB). Design work has commenced and is expected to be completed in the March quarter of 2023, prior to the start of construction.

In June 2022, KCB completed a study to optimise the use of waste rock during the pre-strip period for use as construction material. This work resulted in an anticipated overall reduction of pre-strip volume of approximately 3 Mt of waste, which is expected to reduce construction costs and provide more schedule flexibility during the pre-production period of project development. An updated mine plan based on the reduced pre-strip quantities is expected to be completedthis month, which will then be used by the STRACON-RIPCONCIV JV to finalise fleet selection and manpower planning.

Engineering for the project process plant and surface infrastructure is now well underway by engineering firm DRA Global, the lead detailed engineering consultant for the project. Work is on schedule and currently focused on the negotiation and award of long lead equipment packages from mining equipment vendors, with a 30% progress milestone review planned for late September 2022.

Following the successful receipt of ESIA technical approval from the Government of Ecuador in May 2022, Adventus and Salazar are continuing to plan for the public consultation process. The Government of Ecuador is in the process of redefining the requirements for this consultation process and the President of Ecuador is expected to enact a corresponding decree in 2022.

The final control capital budget for the project is expected to be announced in the June quarter of 2023. To date, the companies have seen some reductions in projected capital costs such as from improvements in the TSF design, which are tending to offset cost pressures associated with inflation and global geopolitical instability.

At a project level, the Curipamba-El Domo copper-gold asset is owned 75% by Adventus and 25% by Salazar.

Rio2 and STRACON establish mining and construction alliance for Fenix gold project

Rio2 Ltd says it has taken another key step towards the development of its Fenix gold project, in Chile, by selecting STRACON SA as the lead mining services contractor for the project.

Both companies have executed an early contractor involvement (ECI) agreement for early works associated with contract mining services. Under the ECI agreement, the parties will work exclusively over the coming months to further optimise the mining and civil construction aspects of the project and conclude contract documentation.

The scope of the mining services contract will include mining of ore at the rate of 7.3 Mt/y (20,000 t/d), waste mining, drilling, blasting, hauling, supply of operating personnel and mining equipment, supervision and management, dust suppression and road maintenance. The scope also includes water transportation from Copiapó to the mine site and maintenance of the entire mobile fleet of equipment plus all pre-mining and civil construction activities including the construction of platforms, leach pad, ponds, access roads and waste material deposits.

The financial terms of the mining contract will use an alliancing-style commercial framework based on the mine plan, methodologies and productivity estimate assumptions contained in the prefeasibility study, which outlined a heap leach gold mine producing an average of 93,000 oz/y during the first 13 years and 50,000 oz/y during the final three years of production as stockpiled ore is being crushed and leached.

The environmental baseline study for the Environmental Impact Assessment (EIA) of the Fenix gold project has been progressing since November 2018. During 2019, engineering works and studies were completed for inclusion in the EIA. In January 2020, the information gathering stage for the baseline study was finalised, with the EIA completed and filed with the Environmental Impact Assessment System in the March quarter. Environmental approval is expected in the June quarter of 2021.

The preparation of sectorial permit applications is currently in process and will be submitted in conjunction with the filing of the EIA. The approval of sectorial permits is expected in the September quarter of 2021 and the start of earthworks for construction of the project is targeted for the December quarter of 2021.

The basis for Rio2 establishing a mining and construction alliance with STRACON at the Fenix gold project is a best for project business strategy, the company said. Together with STRACON, the Rio2 management team collaborated, implemented and executed with this same approach when they built and operated the La Arena and Shahuindo gold mines in Peru with Rio Alto Mining.

At Fenix, Rio2 and STRACON will work together as an integrated team, dedicated to exceeding goals, controlling budgets and adding value through exceptional performance while working in a safe and environmentally sustainable manner focused on every detail of the mining and construction process, Rio2 said.

“The alliance will implement an inclusive social policy as a priority based on the hiring of local personnel and service companies from Copiapó and the Atacama Region,” it added.

The payment model of an alliance includes reimbursement of 100% of contractor project costs plus a fee (corporate overheads and profit); a key performance indicator-based regime that rewards for outstanding performance and punishes poor performance; and unanimous, best for project, management and decision making and the selection of an integrated owner/contractor team on the basis of best person for each position and avoiding duplication of roles, Rio 2 said.

Alex Black, President and CEO of Rio2, said: “The signing of this ECI agreement with STRACON, a leading mining and civil construction contractor in Latin America, forms a key part of Rio2’s strategy to prepare for next year’s construction phase of our Fenix gold project.

“The Rio2 management team is pleased to work again with STRACON, this time in Chile, and look forward to further optimising the mining and construction solution for the project and finalising contract documentation in readiness for next year’s work program.”

Steve Dixon, Chief Executive Officer of STRACON, said: “The project will be delivered under a collaborative alliance agreement, a framework which has been successfully utilised over the past 10 years at several of STRACON’s projects throughout Latin America.”