Tag Archives: Western Areas

GR Engineering to refurb and upgrade Cosmos nickel concentrator

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GR Engineering Services Ltd is set to carry out an upgrade of the existing nickel concentrator at the Cosmos Nickel Operations, owned by Western Areas Ltd, after signing an engineering, procurement and construction (EPC) contract with one of the miner’s subsidiaries.

The project is 30 km north of Leinster in Western Australia.

Western Areas says it has plans to refurbish and expand the concentrator to achieve 900,000 t/y throughput. In its most recent quarterly report, it said long lead items for the project had been identified with ordering taking place in the December quarter. Most of the plant refurbishment and upgrade is due to commence in the March quarter of 2022.

The contract sum is A$48 million ($36 million) and GR Engineering has commenced work immediately, the contractor said.

Geoff Jones, Managing Director, said: “GR Engineering has a long history of working with the Western Areas management team and have a strong track record of delivering projects for Western Areas on time and on budget. GR Engineering is excited to work with Western Areas on another important project and we are looking forward to delivering safe and successful outcomes for the project.”

RUC Cementation Mining to carry out shaft work on Western Areas’ Cosmos nickel op

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RUC Cementation Mining Contractors is set to carry out the shaft infrastructure design, construction and equipping for the Cosmos nickel operations in Western Australia after signing a contract with mine owner, Western Areas Ltd.

This contract represents the culmination of an engagement that has been ongoing for some six months, not including the excavation works which RUC is completing, having recently successfully holed the top leg of the shaft, RUC said.

“Furthermore, this cements a long-term relationship between both companies that spans over 15 years,” it added.

In Western Areas’ 2021 financial year (to June 30, 2021), capital investment at Cosmos totalled A$84 million ($63 million) for the year as the Odysseus mine construction activity increased, including full mobilisation of the underground mining contractor with over 3 km of underground decline and capital development being completed.

Odysseus mine development reached first ore earlier this month, with the raisebore back reaming having worked through 630 m of development at a diameter of 5.7 m, completing Leg 1 of the shaft hoisting and intake air system.

At the time, Western Areas Managing Director, Dan Lougher, said: “It is an exciting milestone to reach first ore and we now look forward to continuing ore production and construction activities, while also advancing offtake tenders for new nickel sulphide supply into the class 1 nickel market.

“The raisebore breakthrough (pictured) is also a key achievement that further de-risks project delivery and allows completion of the shaft sub-brace concrete works, as well as remaining surface civil works, associated with the shaft. Importantly, the work was completed without a safety incident, for which credit must be given to the site management team and RUC, the raise bore contractor.”

LGA brings in narrow-vein mining specialist for Second Fortune gold project work

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Linden Gold Alliance Pty Ltd says it has awarded a two-year A$45.7 million ($36.4 million) contract to Mako Mining for carrying out underground mining services at the Second Fortune gold project in Western Australia.

Mako is a specialist narrow-vein underground mining contractor with a proven track record of successfully mining narrow-vein orebodies and has held an ongoing 10-year contract at Western Areas Forrestania nickel project, also in Western Australia, LGA said.

“Mako Mining’s performance at Forrestania has included consistently meeting production and development targets whilst maintaining an enviable safety record with zero LTIs recorded since the company’s inception,” the company added.

The contractor has an extensive fleet of narrow-vein underground equipment, coupled with the required management and operator skill sets to ensure productivities are maximised, LGA believes.

“Along with LGA’s extensive technical expertise in narrow-vein gold mining, this alliance of companies will provide the project with the best opportunity to exploit this terrific high-grade narrow-vein resource,” the company said.

Mako mobilised to Second Fortune during November to commence underground works in December.

LGA’s General Manager of Operations, Andrew Rich, said: “The appointment of a leading narrow-vein underground mining contractor is an exciting time for both companies and allows LGA to continue its development plans to exploit the resource at Second Fortune in a safe, efficient and productive manner.”

LGA acquired Second Fortune in September 2020 from Anova Metals Ltd with dewatering and rehabilitation completed during the December quarter. First ore production is expected during March 2021.

The Second Fortune project area was originally mined during 1941 to 1988 from a small open pit and underground via shaft and handheld methods. Anova acquired the project in 2017 and completed infrastructure upgrades and Stage 1 of underground mechanised mine development, including dewatering of historic workings and portal establishment. Following Stage 1 completion, the mine was put into care and maintenance.

Barminco to take on Odysseus nickel mining gig for Western Areas

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Perenti’s hard-rock underground miner Barminco has been awarded a development and production contract at Western Areas’ Odysseus mine, in Western Australia.

The contract at Odysseus, part of the Cosmos nickel operation, is valued at around A$200 million ($146 million) over five years and follows on from the earlier rehabilitation works completed by Barminco at the mine.

Western Areas acquired Cosmos in October 2015 and commenced the redevelopment of Odysseus in January 2019. Once in production, Odysseus is expected to produce 14,000-15,000 t/y of nickel concentrate, becoming Western Areas third nickel mine in Western Australia.

Western Areas Managing Director, Dan Lougher, said today (September 8) that excellent progress had been made on the underground and surface infrastructure works at Odysseus, with minimal COVID-19 impacts.

“We have reached a critical milestone with the firing of the full-face development of the Odysseus decline, which is now heading across to the orebody,” he said. “A significant amount of preparation and support work has been delivered across the site to reach this milestone.

“We now have our eye on the delivery of the first ore tonnes mined from underground in the first quarter of financial year 2022.”

Barminco’s Chief Executive Officer, Paul Muller, said the company was excited to continue its relationship with the Western Areas team, which began in 2005 at the Forrestania mine and has now grown to include the Cosmos nickel operation.

“Odysseus is a significant project to bring on-stream, and the five-year term demonstrates the trust and confidence Western Areas has in Barminco to continuously improve and deliver for them,” he said.

Swift expands digital contract at Western Areas’ Forrestania nickel operation

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Among a number of resource-sector contract wins, Swift Networks Group has expanded its previous agreement with nickel miner Western Areas at its Forrestania operation in Western Australia.

The existing contract, originally signed in 2014, was to provide in-room digital services to the 465-bed accommodation village at Forrestania. The new pact expands Swift’s contract by 68 rooms to 533 rooms and includes an on-site phone network upgrade in addition to Swift’s entertainment and communication services.

Swift, which calls itself a diversified telecommunications, content and advertising solutions provider, says it delivered consistent growth in the resources market over 2018, both through direct contract wins and new clients secured by the company’s network of reseller partners.

“The company continues to view Resources as an attractive growth opportunity in light of the significant pipeline of new mining exploration, construction and development projects currently underway throughout Australia,” Swift says.

Forrestania is Western Areas’ flagship asset and consists of the Flying Fox and Spotted Quoll mines, the Cosmic Boy concentrator, a regional tenement package considered highly prospective for further nickel discoveries, and significant site infrastructure; including the accommodation village, grid-connected power, water management network, airstrip and nickel concentrate export facilities.

Based on 10-year production targets, Forrestania is expected to produce an average of 25,000 t/y of nickel concentrate.

Ausdrill’s Barminco to go underground at Regis Resources’ Rosemont gold project

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Having recently closed a deal to acquire fellow contractor Barminco, Ausdrill has announced A$171 million ($123 million) in new work across the mining space.

Its Barminco business has sealed a three-year underground mining services contract with Regis Resources at the Rosemont project (worth A$113 million), in addition to receiving the nod to perform decline rehabilitation and development works at Western Areas’ new Odysseus mine. Meanwhile, Ausdrill has booked a 12-month contract from Consolidated Minerals for the provision of exploration drilling services at the Woodie Woodie manganese mine. This comes on top of a similar contract with Bellevue Gold at its namesake project in the Eastern Goldfields of Western Australia.

Ausdrill Managing Director, Mark Norwell, said: “These new projects demonstrate the diversity of the expanded Ausdrill group across different projects and resources, solid progress of Barminco, and the professional service our businesses have been providing to our customers.”

Rosemont has been a fully operational open-pit gold mine since March 2013 and is one of three Regis projects in the Duketon deposit area, 130 km north of Laverton in the Goldfields region of Western Australia.

Regis recently approved expansion of the mine to an underground operation located directly below the current Rosemont open pit, with Barminco to perform development and production work at the underground deposit. In August, the Regis board announced it had approved the development of an underground mining operation directly below the current Rosemont open pit exploiting the maiden underground mineral resource estimate of 1.4 Mt at 5.1 g/t for 230,000 oz of gold.

Barminco will commence mobilisation immediately and expects to employ around 100 staff at the project. Onsite works will commence in the March quarter, including commencing portal development at the southern end of the Rosemont Main open pit.

Barminco CEO, Paul Muller, said: “This project adds to Barminco’s extensive experience in the Western Australia Goldfields, with current mining projects at Sunrise Dam and Agnew. We will draw on our deep capability across Barminco’s people, equipment, systems, processes, and expertise in underground mining to ensure we provide a safe and reliable service at Rosemont and look to build a strong, long-term relationship with Regis.”

Meanwhile, the company has already mobilised on the 14-month contract to carry out decline rehabilitation and development works at Western Areas’ Odysseus mine. The contract builds on Barminco’s 14-years of continuous service for Western Areas at Forrestania, which includes the Spotted Quoll and Flying Fox mines where Barminco is the mining services provider.

Ausdrill’s work at the Woodie Woodie manganese mine, in the Pilbara of Western Australia, will commence next month, will run for 12 months and will require five RC drill rigs and one diamond drill rig to be drawn from the company’s existing fleet.

The company has already kicked off work at the Bellevue gold project, which will require around four diamond rigs to be drawn from the existing fleet.