Tag Archives: Strandline Resources

MSCS to help Strandline hit Coburn mineral sands production goals

Strandline Resources has executed a long-term mining services agreement with Mine Site Construction Services (MSCS) at the Coburn mineral sands project in Western Australia.

MSCS’s experience in bulk materials handling and mining, including large dozer push operations in mining sands applications, means it is well credentialed to meet Coburn’s mining requirements, the company says.

The terms of the mining contract are in accordance with the mine plan, methodologies, pricing and overall operating cost assumptions contained in the Coburn definitive feasibility study, released in June 2020, which outlined a mine life of 22.5 years at a mining rate of 23.4 Mt/y.

The scope of the mining services agreement includes conventional open-pit dry mining of ore at a rate of 23.4 Mt/y, overburden removal, pit backfill and land recontouring and general mining-related earthworks. The contract mining term is expected to cover the first seven years of production and provides a safe, reliable and efficient mining solution for Coburn, Strandline says.

The mining contract incorporates provisions to maximise environmental and social governance, including implementing strong indigenous engagement, local content and emissions reduction initiatives.

MSCS is now preparing to mobilise to site to conduct mine establishment and pre-strip activities.

Strandline says it remains on track to achieve first production of heavy mineral concentrate in the December quarter of 2022.

Strandline Managing Director, Luke Graham, said the execution of the mining services contract marked another key step in the company’s strategy to become a leading high-margin producer of critical minerals.

“We are delighted to establish this important long-term relationship with MSCS, a highly experienced Western Australia-based mining contractor,” Graham said. “This agreement, when combined with the previously announced operating contracts, including for the supply of electricity, LNG and fuel on site, means Strandline has already locked-in over half of its operating costs in line or better than the assumptions contained in the Coburn definitive feasibility study.”

Strandline seals energy agreement for Coburn with Contract Power Australia

Strandline Resources has executed a 15-year electricity supply agreement (ESA) with Contract Power Australia, a wholly owned subsidiary of Pacific Energy Ltd, to build, own, operate and maintain (BOOM) the power generation and LNG storage and regasification facilities for the Coburn mineral sands project in Western Australia.

Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas-fuelled generation with state-of-the-art solar and battery storage technology.

The executed ESA, which follows Contract Power Australia being appointed preferred contractor at Coburn, enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020. This study anticipated a development capital for the project of A$260 million ($199 million), excluding financing costs.

Contract Power specialises in turnkey design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia, Strandline said.

Coburn’s power station will be located near the mineral separation plant. The power station is designed to be suitable for a maximum demand capacity of 15 MW and average consumed power of circa-10 MW. Natural gas will be supplied by others under an industry standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power. The LNG then feeds a set of engine generators on an N+1 basis and has circa-30% solar (renewable) penetration for the major stable loads. Generation is at 11 kV with step up to 22 kV for power transmission to the project loads across the mine site.

Coburn has a JORC compliant mineral resource of 1,600 Mt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

The contract is based on a 15-year BOOM commercial model with fixed and variable payment regime for power consumed over the term, Strandline said. The contract provides for incorporation of wind turbine and other new generation technology solutions under agreed commercial structures as and when they become commercially attractive to the project.

Strandline Managing Director, Luke Graham, said the execution of this major development and operational contract marked another key step in the company’s strategy to bring Coburn into production as well as establishing an important relationship with Contract Power, a leader in sustainable clean energy generation in Western Australia.

Woodside and EDL to supply LNG to Strandline’s Coburn mineral sands project

After securing a contractor to build the power generation facilities at its Coburn project in Western Australia, Strandline Resources has appointed subsidiaries of Woodside Energy and EDL, in joint venture (WEJV), as preferred contractor to supply LNG to the mineral sands development’s power generation facilities.

The WEJV solution provides Strandline with a long-term clean, reliable and affordable solution for Coburn, the company said.

Under the WEJV proposal, LNG will be supplied via road train from Woodside’s Pluto LNG Truck Loading Facility near Karratha, Western Australia.

“Coburn’s mine site power infrastructure is based on a low-cost, low-emission solution integrating LNG-fuelled generation with state-of-the-art solar and battery storage technology (provided by third parties),” the company said.

The proposed LNG supply contract is over a 10-year term (with appropriate pricing review and adjustment mechanisms) and enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020.

As preferred contractor, the parties will now compile final contract documentation subject to the satisfaction of Coburn’s lenders and agreement between the parties.

Strandline Managing Director, Luke Graham, said the appointment establishes an important long-term relationship with two industry leaders in the energy sector, in Woodside and EDL.

“The company continues to move rapidly towards development of Coburn and these key contract appointments to well-credentialled suppliers provide delivery certainty,” he said.

Strandline energises Coburn mineral sands plan with Contract Power BOO agreement

Strandline Resources says it has taken another important step towards development of its Coburn mineral sands project in Western Australia by appointing Contract Power Australia as preferred contractor to build, own and operate (BOO) the power generation facilities for the project.

Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas fuelled generation with solar and battery storage technology.

The proposed power solution enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020, it said.

Contract Power, a wholly-owned subsidiary of Pacific Energy Ltd, specialises in turnkey design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia, Strandline says.

Coburn’s power station will be located near the mineral separation plant. The power station is designed for a maximum demand capacity of 16 MW and average consumed power of circa-10 MW. Natural gas will be supplied by others under an industry standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power (Contract Power’s typical LNG-fuelled power station build layout, pictured), according to Strandline. The LNG then feeds a set of engine generators on an N+1 basis and has circa-30% solar penetration for the major stable loads. Generation is at 11 kV with step up to 22 kV for power transmission to the project loads across the mine site, Strandline says.

As preferred contractor, the parties will now compile final contract documentation to the satisfaction of Strandline and Coburn’s lenders. The contract is based on a 15-year BOO (and maintain) commercial model with fixed and variable payment regime for power consumed over the term.

This appointment follows Strandline’s recent A$18.5 million ($13.1 million) equity raising to advance early works development activities while finalising the balance of project funding. Strandline says it continues to make strong progress towards definitive finance documentation and conditions precedent for the NAIF A$150 million loan facility and is advancing discussions to secure a commercial debt tranche expected to stand alongside the NAIF funding.

Since raising the A$18.5 million, Strandline has appointed Macmahon as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project, instructed Piacentini & Son to design and construct three mobile dozer mining units for Coburn and awarded preferred EPC status to Primero Group for the mineral sands asset.

Strandline Managing Director, Luke Graham, said the appointment marked another key step in its strategy to bring Coburn into production and establishes an important relationship with Contract Power, a leader in sustainable clean energy generation in Western Australia.

Coburn has a JORC compliant mineral resource of 1,600 Mt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

Strandline’s Coburn mineral sands project to go mobile with Piacentini dozers

Strandline Resources says it has taken another important step towards development of its Coburn mineral sands project in Western Australia by appointing Piacentini & Son to design and construct three mobile dozer mining units for the project.

The scope of the A$21 million ($15.3 million) fixed-price contract forms a key part of Coburn’s efficient dry mining methodology, capable of receiving, screening and pumping ore from the mine to the processing facilities at an average rate of 3,100 t/h, based on two units in operation at any one time, it said.

The contract follows Strandline’s recent A$18.5 million equity raising to advance early works development activities while finalising the balance of project funding. Strandline says it is making solid progress towards definitive finance documentation and conditions precedent for the Northern Australia Infrastructure Facility A$150 million loan facility and is advancing discussions on the commercial debt tranche which is expected to stand alongside.

Coburn has a JORC compliant mineral resource of 1.6 Bt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

Last month, Strandline appointed Macmahon as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project. The company is also expected to carry out contract mining at the site.

Strandline says the in-pit dozer mining units from Piacentini are designed to be frequently relocated as the mine progresses through the mine plan.

The parties have agreed final contract documentation based on a fixed price, fixed schedule arrangement, in line with the assumptions contained within the Coburn definitive feasibility study, Strandline added.

“The agreement is subject to standard conditions precedent regarding the development of the project and Strandline releasing a formal notice to proceed to commence the works under contract,” the company clarified.

Strandline, Woodside and EDL to work on ‘world-first’ power project for Coburn

Strandline Resources has selected Woodside and EDL to provide a fully integrated energy solution for its Coburn mineral sands project, in Western Australia.

The parties have signed a non-binding proposal for the development of a 27 MW integrated trucked LNG, storage and power station facility, comprising gas and diesel back-up generators combined with state-of-the-art solar and battery technology, it said.

The Woodside and EDL joint venture (WEJV) was formed to provide clean, reliable and affordable LNG to market, according to Strandline.

“This world-first trucked LNG to hybrid renewable microgrid project will see EDL bring its turnkey expertise to the project’s power station and LNG storage and re-gasification facilities, with LNG supplied from Woodside’s Pluto LNG truck loading facility near Karratha, Western Australia,” Strandline said.

It is expected that contract documentation, in the form of a 15-year power purchase agreement, will be finalised over the coming months in readiness for the commencement of construction, Strandline said.

The WEJV solution provides Strandline with a long-term safe, reliable and highly efficient energy solution for Coburn, according to the developer.

EDL was recently involved in the start up of phase one of a hybrid power project at Gold Fields’ Agnew gold mine, also in Western Australia (pictured).

Coburn, meanwhile, is a mineral sands deposit hosting “exceptional” zircon and titanium mineral sands products, Strandline says. The project benefits from being situated in the well-established mining jurisdiction of Western Australia, close to key road, port and services infrastructure.

The company recently completed a definitive feasibility study on Coburn, which showed the project could generate a pre-tax net present value of A$551 million ($377 million) using a US$:A$ of 0.72, an 8% discount rate, and development capital of A$207 million for the heavy mineral concentrate produce case, with an additional A$50 million required for the final products case (including mineral separation plant infrastructure).