Tag Archives: Western Australia

Ramelius kicks off ore mining at Tampia gold project

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Ramelius Resources says it has commenced ore mining at its Tampia gold mine in Western Australia, hitting the milestone on time.

First ore was mined initially from the North Pit with the associated waste used to complete the required site earthworks. Mining will shortly move to the higher-grade Mace and South Pit areas in line with the planned mining schedule, the company said.

The project has commenced on schedule and is on track to despatch the first road train of high-grade ore to the Edna May processing facility in early July.

Tampia, which Ramelius consolidated 100% ownership of earlier this year, was the subject of a feasibility study in April 2020. This study focused on the option to haul ore to Ramelius’ Edna May processing facility for production of 186,000 oz of gold from the processing of 2.5 Mt of ore.

Ramelius Managing Director, Mark Zeptner, said: “We are pleased to have commenced the mining of high-grade ore from our Tampia gold mine on schedule with our published mine plan. This is the culmination of the efforts of many employees, contractors, members of the local community and the Shires of Narembeen, Merredin & Westonia.

“Gold from Tampia will represent a significant proportion of our financial year 2022 production target and will be our first new mine in the Western Australian wheatbelt where we believe we will deliver significant returns for all stakeholders.”

MACA, in February, was awarded an open-pit mining contract from Ramelius for load and haul, and drill and blast services at Tampia.

Abra project heads for first lead-silver production in 2023

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The Abra base metals project in Western Australia is racing forward to first production in 2023 after the project owners signed off a positive final investment decision (FID) for the mine’s development.

The FID was made following the satisfaction of key conditions to draw in excess of $30 million under a debt facility.

As of May 31, 2021, the project is 17% complete, with completed works including: construction and commissioning of a 280-unit mine site village; mining of the box cut (pictured); box cut ground support works; installation of site communications; and various site clearing, roadworks and civil works.

“As a result, Abra is largely prepared for the deployment of key contractors for the construction of the plant and auxiliary infrastructure, and deployment of the underground mining contractor,” Galena Mining, the 77.28% owner of the project, said.

Among the key contractors at Abra is GR Engineering Services, which is set to deliver a 1.2 Mt/y lead sulphide flotation process plant and ancillary infrastructure under a A$75 million ($58 million) guaranteed maximum price arrangement. The underground mining services contract has been awarded to a tier one Australian mining contractor, Galena said without naming the contract recipient.

“Under the current project schedule, procurement of certain long-lead items will take place immediately,” Galena said. “The underground mining contractor is expected to initiate the portal and decline development in the third (September) quarter of 2021 calendar year and physical on-site plant construction is expected to commence in the fourth (December) quarter of 2021 calendar year.”

Related to the decision to move ahead with development, Galena said it was appointing Anthony James as Managing Director of the company, a mining engineer with senior underground operational and development experience. He will replace current MD Alex Molyneaux who will remain a director of the company.

This definitive feasibility study outlined development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

GenusPlus Group subsidiary wins A$60 million contract with Rio Tinto

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Australia-based essential power and telecommunications infrastructure provider, GenusPlus Group Ltd, says it has secured a significant new power installation contract with Rio Tinto in Dampier, Western Australia.

The circa-A$60 million ($46 million) contract will be carried out by Powerlines Plus, a wholly-owned subsidiary of GenusPlus, with peak “manning” of 95 direct personnel plus associated local subcontractors and suppliers. It will see the company design and construct a 220 kV transmission line and substation as well as the associated 33 kV distribution infrastructure.

The contract is scheduled to commence immediately and be completed over a period of approximately 22 months, GenusPlus Group said.

The scope of work includes the design and construct of 15 km of dual circuit 220 kV transmission line between Karratha and Dampier, a 220 kV/33 kV substation at Rio Tinto’s Kangaroo Hill site in Dampier, modification works at Yurralyi Maya Power Station and Dampier Bulk Substation, new 33 kV infrastructure and the deconstruction of redundant 220 kV and 33 kV infrastructure.

GenusPlus Managing Director, David Riches, said: “We are pleased to secure the Kangaroo Hill contract and continue to build on our long relationship with Rio Tinto. We look forward to completing the works safely and on time.”

Element 25 progresses Zero Carbon Manganese vision with AK Evans pact

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A day after securing the sale of the first parcel of material from its Butcherbird manganese project in Western Australia, Element 25 Ltd has signed a letter of intent with AK Evans Group Australia for transportation of manganese concentrate from the project to Utah Point in Port Hedland.

AK Evans is a privately owned construction, civils, heavy and bulk haulage company, founded in Port Hedland, with locations across Western Australia. AK Evans also has a strategic partnership with Kurtarra Pty Ltd, an 100% indigenous-owned earthmoving and services company.

The letter of intent will cover the initial transport arrangements – with haulage for the maiden cargo undertaken using agreed terms and rates – and the parties are in the process of finalising a long-term commercial arrangement, which will see the introduction of new quad road trains during the remainder of 2021, Element 25 said.

Element 25 Managing Director, Justin Brown, said: “We are excited to be partnering with AK Evans with a view to having new dedicated road trains to transport our manganese to Port Hedland. We are also excited to know we can work with our commercial partners in delivering solutions to fulfil our vision of delivering Zero Carbon Manganese™ for the electric vehicle (EV) battery revolution. This is another important milestone for the project and company, and we are excited to be heading for our first shipment of Butcherbird’s material to our offtake partners.”

On May 26, Element 25 announced the sale of the first parcel of material from Butcherbird to OMH under offtake agreement terms. The material in the contract specification is 30-35% Mn concentrate, with the first shipment planned for June 2021.

Last year, Element 25 completed a prefeasibility study on Butcherbird that outlined a start-up manganese concentrate export scenario as part of a staged development strategy. It outlined a maiden proven and probable reserve of 50.55 Mt at 10.3% Mn containing 5.22 Mt of manganese, with a base case assuming annual production and sales of 312,000 t/y of medium-grade lump manganese concentrate grading 30-35% Mn.

“The project team will now turn its focus to the next stages of the multi-stage development strategy of the project including a Stage 2 expansion of the concentrate business followed by a Stage 3 development to convert the concentrate material into high purity manganese sulphate monohydrate for electric vehicle (EV) batteries to power the global transition away from fossil fuel powered mobility,” the company said.

Element 25 says Butcherbird is ideally placed to feed potential demand, with advanced flowsheet development work undertaken in 2019 and 2020 confirming a simple, unique, ambient temperature and atmospheric pressure leach process for Element 25 ores which, when combined with offsets, will target the world’s first Zero Carbon Manganese for EV cathode manufacture.

Reedy Lagoon and CSIRO eye alternative resource estimate methodology

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Reedy Lagoon Corp says it is working with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) to investigate and trial new ways to determine resource estimates that can rely more on geophysics than solely drill hole information.

The ASX-listed explorer has engaged with CSIRO to develop a method of determining magnetite resources using petrophysically-constrained magnetic modelling. The testbed for the research will be Reedy Lagoon’s Burracoppin iron project, in Western Australia, which, the company says, is progressing towards producing green high purity pig iron (HPPI).

The collaboration with CSIRO will use previously drilled core to determine the physical properties (eg magnetisation and density) of the Burracoppin magnetite deposit, and use those results to constrain a detailed 3D magnetic/density model of the mineralisation, Reedy Lagoon said.

Dr Jim Austin, CSIRO Project Leader and Petrophysics Expert, said: “Magnetite resources are unlike any other metal in that the quantity of the resource present (ie iron) has a linear relationship with both density and magnetisation. This means the total iron resource can theoretically be determined to relatively high precision using geophysical methods alone.”

The Burracoppin iron project is seeking to establish an indicated resource of 20-30 Mt of iron concentrate product within the Burracoppin magnetite deposit so that financial projections for the HPPI production can be determined. The deposit is currently identified in detailed airborne magnetic data and three drill holes.

The planned resource definition work is focused in the region between the three drill holes where, as part of the work in establishing a mineral resource, an exploration target has been determined.

“If shown to be successful, the work with CSIRO may lead to a new method of estimating a resource to JORC standards with far less drilling than is currently required, saving much expense and reducing ground disturbance,” Reedy Lagoon said.

The project was made possible through CSIRO Kick-Start, an initiative that provides funding and support for innovative Australian start-ups and small businesses to access CSIRO’s research expertise and capabilities.

Fluor celebrates BHP South Flank iron ore achievements

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Days after BHP achieved “first ore” at its South Flank iron ore development in Western Australia, Fluor’s Mining & Metals business has announced its construction delivery scope has been achieved on budget and on schedule at the $3.6 billion operation.

The project is the largest iron ore processing facility ever built in Western Australia, according to Fluor.

Together with the existing Mining Area C, it will form the largest operating iron ore hub in the world – producing 145 Mt/y of iron ore, according to BHP.

The engineering firm provided engineering, procurement and construction management support on the project, which includes an 80 Mt/y crushing and screening plant, state-of-the-art overland conveyor systems and rail-loading facilities. Construction began in July 2018.

Tony Morgan, President of Fluor’s Mining and Metals business, said: “It is always very gratifying and rewarding to see a project of this magnitude completed on time and on budget.

“We are proud of what we’ve been able to accomplish with BHP from the pre-construction feasibility study to improving the project’s capital efficiency, optimising costs and schedules, and hiring indigenous and local team members. All of this was accomplished while navigating through the COVID-19 pandemic.”

Quinton Brand, BHP’s Head of Western Australia Major Projects, said: “We would like to thank the entire Fluor team from the design engineers to the fabrication and construction teams. Fluor made an important contribution to the delivery of South Flank’s first ore.”

Western Australia puts money behind ‘net zero’ emission mining pledge

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Western Australia has committed to its “net zero emission” mining pledge by committing up to A$1.5 million ($1.17 million) in funding for research and development geared towards decarbonising the sector.

Today, Western Australia’s Mines and Petroleum Minister, Bill Johnston, launched the first actions of the Minerals Research Institute of Western Australia’s (MRIWA) Net Zero Emission Mining Challenge.

This MRIWA challenge aims to reduce the carbon footprint, lower overall energy costs and improve the energy efficiency of the Western Australian mining sector through harnessing collective efforts, enabling decarbonisation to become an opportunity for the sector, not a cost, the MRIWA says.

MRIWA has identified three priority themes representing cross-cutting issues in the mining sector that would benefit from a collaborative approach to addressing the challenge. This includes data-driven decisions, mining and processing technology, and energy utilisation.

A A$1 million competitive funding round opened today to co-fund research proposals that address challenges to reducing emissions in the mining industry.

Additionally, expressions of interest opened for small to medium businesses in the mining, equipment, technology and services (METS) sector to participate in CSIRO’s Innovate to Grow online program.

The free 10-week program will commence in July and help METS leaders develop innovative solutions to business challenges related to net zero emission mining in Western Australia, the government said.

The Western Australia Government (through MRIWA) is offering A$500,000 (A$20,000-$50,000/grant) to eligible program participants to develop their solutions. These grants require matched funding and will be subject to an application process after the program’s completion, it explained.

Johnston said: “Today’s funding announcement will support the diversification of our state’s economy, and progress research on overcoming the challenges to decarbonise the mining sector. METS are a vital part of the resources sector supply chain, and I encourage all eligible small businesses to apply and play a role in the McGowan Government’s commitment of net zero emissions by 2050.”

Applications for CSIRO’s Innovate to Grow program close on June 28, 2021, and applications for the A$1 million competitive funding round close on July 7, 2021.

Wiluna Mining lays renewable energy groundwork with Contract Power extension

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Wiluna Mining Corp has signed a 10-year contract extension with Contract Power Group that will see the power provider charge up the Wiluna Mining Operation in Western Australia until at least 2031.

The contract is geared towards meeting the forward needs of the Stage 1 development project at Wiluna, to provide a total rated power output of the power station of 14.1 MW. It will also re-configure the power station to increase gas generation and add a 2 MW battery energy storage unit to significantly reduce the need for back-up diesel generation, with four diesel generators being removed.

The new pact will also allow amortisation of costs over a longer period, therefore reducing Wiluna’s overall operating power charges; the company said.

And, when it comes to the Stage 2 development expansion project in 2023 at Wiluna, the contract will provide a solid base for a future mixed renewables power station, the company said.

Back in October, Wiluna Mining’s board gave the thumbs up to the Stage 1 development, which will see the company transition from its current production profile of producing 62,000 oz/y from mining free milling ore through the current 2.1 Mt/y carbon-in-leach processing facility, to initially producing 100,000-120,000 oz/y of gold and gold in concentrate. This will be implemented using the current, recently refurbished crushing circuit, the previously expanded mill circuit and a new 750,000 t/y concentrator by October 2021, the company said.

Wiluna then intends to increase production of gold and gold in concentrate by, at a minimum, doubling the mining rate and the concentrator to produce circa-250,000 oz/y by the end of 2023/early 2024 as part of Stage 2.

Contract Power, a subsidiary of Pacific Energy, has provided Wiluna’s power – a mix of natural gas and diesel power backup – since June 2016.

“Contract Power Group are experts in efficient generation of electrical power and in decarbonisation by harnessing off-grid wind or solar power,” Wiluna said. “Wiluna are refining its plans with Contract Power Group to include decarbonisation within our methods of power generation at site. This may also moderate our exposure to future volatility in the cost of hydrocarbon fuels.”

Wiluna will now focus on renewable power studies and options during 2021 and 2022 to:

  • Assess the right mix of renewables including solar, wind or pumped storage options;
  • Determine how best to integrate renewables into the total power delivery for an expanded operation; and
  • Optimise the decarbonisation of power generation with reliability and cost effectiveness.

Milan Jerkovic, Wiluna Mining’s Executive Chair, said: “We look forward to working with Contract Power to not only transitioning the Wiluna Mine once again into one of Australia’s biggest and most profitable gold mines, but to helping it become one of Australia’s cleanest mines.”

BCI Minerals signs up WHBO Infrastructure, Engenium for Mardie work

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BCI Minerals Limited has confirmed around A$90 million ($68 million) of contract awards for its Mardie Salt & Potash project, in Western Australia, ahead of a final investment decision (FID).

The initial earthworks contract has been awarded to WBHO Infrastructure, a contractor with a long history of project delivery excellence in large civil construction projects and a strong presence in Western Australia.

The contract includes initial construction of the large-scale trial pond scheduled to commence in April, as well as construction of evaporation ponds 1 and 2, on terms aligned with definitive feasibility study (DFS) budget assumptions once the FID is achieved and required tenure and approvals are in place. The total earthworks volume in this scope is approximately 800,000 cu.m over an area of 24 sq.km.

Engenium, the successful tenderer for the Project Management Contractor role, is a Western Australian company with offices in Perth and Karratha. Engenium, which recently signed a letter of intent that could see it acquired by Stantec, was selected for its local and experienced team, proven track record in project delivery and construction management, excellent health and safety record and pricing within the DFS budget, BCI said.

“The PMC is an important contract in the overall execution of the Mardie project which will see Engenium manage the construction program through the provision of people and systems as an extension of the BCI owners’ team,” it said. “Engagement of Engenium on a staged basis will also support BCI to achieve construction-ready status ahead of main construction commencing in the second half of 2021.”

Various smaller contracts covering accommodation village expansion, minor earthworks, site surveys, communications, water supply, fuel storage and supply as well as the Karratha office fit-out have also been awarded this year. These works are all underway with Pilbara-based contractors expanding Mardie village and fitting-out the Karratha office and local indigenous companies carrying out aboriginal heritage surveys and minor earthworks.

BCI’s Managing Director, Alwyn Vorster, said: “The award of the initial earthworks contract, in particular, represents a key milestone in BCI’s progress toward main construction and demonstrates board confidence in Mardie’s development pathway. These contracts will be initially funded from BCI’s healthy cash balance and strong Iron Valley royalty income.”

The Mardie DFS outcomes indicated that the production of 4.4 Mt/y of high purity salt and 120,000 t/y of premium sulphate of potash (SOP) fertiliser was technically and financially viable. The total capital cost came in at A$779 million and the pre-tax net present value (7% discount) was A$1.197 billion.

A FID by the BCI Board is targeted in the June quarter, which will be followed by completion of the funding task. Construction could commence in mid-2021, which will allow for first salt sales in 2024 and first SOP sales in 2025, the company says.

Alliance Aviation wins two-year contract extension from BHP

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Alliance Aviation Services has announced an extension of the air charter services agreement with BHP’s Western Australia Iron Ore division for a further two years.

This extension, Alliance says, is further evidence of Alliance’s reputation of outstanding customer retention with the extension solidifying the relationship that started with the first flight for BHP’s Western Australia Iron Ore division in 2009.

BHP WAIO is an integrated system of four processing hubs and five mines connected by more than 1,000 km of rail infrastructure and port facilities in the Pilbara region of northern Western Australia.

Lee Schofield, Alliance’s Chief Executive Officer, said: “Alliance is delighted to be continuing the provision of these charter services into the Pilbara. Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension. We look forward to continuing our exceptional safety and operational record for BHP.”