Tag Archives: Western Australia

XCMG custom graders get to work at Rio Tinto Western Australia mines

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XCMG says it has delivered six customised GR2605 graders to Rio Tinto, which have recently been put into operation at the company’s mines in Western Australia.

The model, specifically customised for Rio Tinto, is a super-horsepower grader with enhancements in terms of safety, functionality and design to meet Rio’s given needs and cope with local working conditions, the manufacturer said.

XCMG set up an elite project team to take charge of the R&D, manufacturing and quality control of the customisation project, and devoted a year to survey and analyse construction conditions and the client’s demands.

“The project team has made breakthroughs in a series of core technologies such as double-handle electronic control, regional environmental monitoring, machinery status electronic monitoring and more,” Wang Min, Chairman of XCMG, said. “Our comprehensive customisation service not only provides the ideal products to our clients, but also put XCMG on a firmer footing in the global market.”

From setting up the project to final delivery, XCMG conducted nearly 100 upgrades and optimisations in accordance with Rio’s requirements and the working conditions along the railways in Western Australia where they will be used. Much of this focused on improving the safety designs and operator friendliness, including:

  • A mechanical blade safety lock system;
  • Trimark locking system to prevent accidental opening of the engine hood;
  • Adjusted filter and storage battery position for easy troubleshooting and maintenance;
  • New pin bolt system to eliminate suspension loading risks;
  • Spare parts safety system featuring wheeled platform for bucket tooth for safety checkup; and
  • More ergonomic, quick refuelling design.

Prior to the delivery, XCMG provided comprehensive product use and maintenance training to ensure a smooth transitioning to operating the equipment, it said.

Wang Min added: “Taking this collaboration as an opportunity, XCMG will continue to strengthen our independent innovation and move steadily into the high-end markets. We thrive to meet the customers’ needs and create more possibilities by improving the product quality and perfecting the services.”

Back in September, a ceremony marking an XCMG Grader GR2605 fleet delivery and GR5505 Mining Grader Project Commencement Ceremony for Rio Tinto was held at XCMG’s intelligent grader manufacturing base in Xuzhou.

DDH1 drilling contractor debuts on ASX after stellar IPO

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DDH1 Ltd has officially commenced trading on the Australian Securities Exchange following an initial public offering last week that saw the drilling contractor secure gross proceeds of A$150 million ($115 million) through the issue of around 40% of its shares.

The IPO proceeds were used to allow existing shareholders to realise part of their investment in the company and to repay company borrowings, the company said. The IPO was one of the largest by a Western Australia-based business in the past decade, according to DDH1.

“The ASX listing marks a significant milestone in the evolution of DDH1, which was established in Perth in 2006 with the vision to create Australia’s premier mineral drilling contractor,” the company said. “Over time, DDH1 has earned the custom of Australia’s premier mining companies through its repeated and meticulous service offering of gathering the critical geological data that supports the decision making in respect of all mining activity through the complete cycle of a mine’s life.”

DDH1 has a portfolio of approximately 102 clients, with a financial year 2020 pro-forma revenue of A$249.8 million. Its earnings are diversified across multiple commodities and geographies, with a client base that includes Newcrest Mining, BHP, Evolution Mining, Gold Fields, Independence Group, Kalgoorlie Consolidated Gold Mines, Newmont Corp, Ramelius Resources, Rio Tinto, Roy Hill Iron Ore and St Barbara.

It offers both surface and underground drilling services, with diamond coring and reverse circulation rigs on offer.

Sy Van Dyk, DDH1’s Managing Director and CEO, said: “The growth and success of DDH1 to date is testament to the commitment of the whole team, which strives to ensure the safety of all stakeholders while delivering exceptional service to our clients.

“Our long-term client relationships are built on the provision of quality drilling services and a deep understanding of our client’s business needs. The company’s significant market position reinforces the strong levels of industry recognition.”

He concluded: “There is growing demand in the Australian mineral drilling sector for DDH1’s services because of increased exploration, development and production spending by minerals exploration and mining companies. As an ASX-listed company with a strong balance sheet, a committed shareholder base, a disciplined approach to growth and access to capital markets, DDH1 is well positioned to pursue its growth strategy.”

Strandline seals energy agreement for Coburn with Contract Power Australia

Environmental, Industrial minerals, Mineral project development, Mining services, Sustainable mining, , , , , ,

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.

Macmahon lines up open-pit/underground work at Red 5’s King of the Hills gold project

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Macmahon Holdings Ltd has been awarded its second major contract in as many weeks in the Goldfields region of Western Australia, receiving a letter of intent to carry out contract mining services at Red 5 Ltd’s King of the Hills (KOTH) gold project.

The KOTH project is an open pit and underground gold deposit with a projected mine life of over 16 years. This could see the company produce 176,000 oz/y of gold over the first six years, according to a recent feasibility study.

Red 5 has commenced the construction of the camp and processing facilities on site and is planning for mining to commence in early 2022. First gold production is expected to occur in June 2022.

Just last week, Macmahon was appointed the underground mining contractor at St Barbara’s Gwalia gold mine at Leonora Operations in Western Australia.

Following a detailed tender process for both the surface and underground mining activities, Red 5 has issued a letter of intent to Macmahon for a proposal combining both scopes of work. Under the agreement, the parties are working to finalise the documentation by which Macmahon will provide all surface and underground mining services to the project over a five-year contract term, commencing in the March quarter of 2022.

Macmahon expects this documentation will be completed by June 2021 and that the contract will add over A$650 million ($497 million) to the company’s order book.

Macmahon’s CEO and MD, Michael Finnegan, said: “We are delighted to be in advanced discussions with Red 5 for its King of the Hills gold project in Western Australia. We have a strategy to expand our presence across the mining services value chain, and this project highlights the benefits of being able to offer a combined surface and underground mining solution from the outset. We look forward to continuing our relationship with the Red 5 team and supporting their development of this important project.”

Swift Media wins more business from Western Australia mines

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Swift Media Ltd says it has secured two new technology, entertainment and support contracts with Atlas Iron and a contract extension from AngloGold Ashanti, both in Western Australia.

The specialist technology company which delivers entertainment, communications and advertising to remote locations such as mine sites, has booked A$2 million ($1.56 million) in total contract value from its latest pacts, which also includes a contract extension with LNG focused Inpex Operations.

The Atlas Iron contracts at Miralga Creek and Sanjiv Ridge, in Western Australia, will see Swift provide its On Demand communication and entertainment platform and ongoing support for a 36-month term, plus Wi-Fi internet, fibre works, GPON network replacement, and data cabling for the Miralga Creek Village starting in March.

Swift has also extended its AngloGold contract, thought to be at Tropicana, which will see it supply in-room entertainment and ongoing support in 1,042 rooms for 11 months starting February 2021.

First Sanjiv Ridge iron ore shipment on its way, Atlas Iron says

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Atlas Iron has hauled its first shipment of ore by road to Port Hedland, in Western Australia, from its new Sanjiv Ridge operation in four brand new pink trucks.

After announcing the first ore crushed earlier this month, the Hancock Prospecting owned company reached this new milestone this week.

Some 4-5 Mt/y of iron ore lump and fines is to be hauled by road to the Utah Point stockyard, which will add 5-6 years to the Atlas value chain, the company says. It comes with 64 Mt at 57.2% Fe of mineral resources and 29 Mt at 57% Fe reserves.

Sanjiv Manchanda, Atlas Iron CEO, said: “I’m so proud of our team of Atlas staff and our contracting partners, MGM Bulk, MACA and CSI for working so tirelessly to ensure we surpassed our project targets. It’s always a team effort, and our small team certainly knows how to get things done safely, efficiently and with agility to get a win-win outcome.

“I also take this opportunity to thank our partners MGM Bulk and CSI Mining (a Mineral Resources Ltd subsidiary) who painted their four brand new trucks and crusher, which were used today and for the duration of the project, a striking pink colour in recognition of our Group and Executive Chairman’s commitment to supporting breast cancer research and improving patient care. These pink trucks now add to a large amount of mining infrastructure in the Pilbara now pink, including trains, ships, processing plants, crushers and mining trucks.”

Gold Fields keeps modernising Granny Smith with Mobilaris solutions

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Gold Fields has implemented both Mobilaris Onboard and Mobilaris Situational Awareness at its Granny Smith underground mine in Western Australia as part of an ongoing modernisation program.

In 2018, Gold Fields launched a five-year modernisation program for the site. The first phase’s ambition is to ensure cost efficiency, productivity and a safe work environment by integrating data-driven solutions into the mine.

Michael Place, Mine Manager at Granny Smith, said Gold Field has three dedicated full-time personnel to work on the modernisation program. It has also employed external consultants and contractors to assist with the integration.

“Together, we integrate an underground LTE system to have full connectivity in the mine,” he said.

Gold Fields’ investment will also have environmental effects over time as its digitalisation allows the company to work more sustainably.

“Moving into a more digital world is going to make sure that we are sustainable long-term,” Place said. “For instance, we can maintain our cost profile during expansion and follow up on our environmental footprint.”

Historically, underground blasting has been one of the biggest time thieves in the Granny Smith Mine, with the operation currently losing four hours of production in a 24-hour period due to the firing. With the ongoing modernisation program, Place looks for the mine to become more efficient than before.

“Integrating technology into the mine allows us to look at options to reduce the inactive time,” he said. “We can increase efficiency through autonomous equipment, remote operations, and digital solutions. The expected outcome is a 5-15% increase in productivity.”

The Granny Smith Mine has close to 4,000 different locations, with over 100 employees underground at the same time. It already runs 1.2 km deep and, like many mines, is under constant development.

Michael Place, Mine Manager at Granny Smith

In 2019, a group from Gold Fields Granny Smith, including General Manager, Andrew Bywater, visited Boliden in Sweden to study the use of the Mobilaris product suite, with focus on Mobilaris Onboard and Mobilaris Situational Awareness in the Kristineberg mine.

Mobilaris Onboard, working as a machine navigator underground, creates traffic awareness and a safe and effective traffic flow, according to the company. Based on real-time data, Mobilaris Situational Awareness enables transparency and awareness. The information makes it possible to control the operations and resources, and people can quickly act upon what is happening and make smart decisions faster, Mobilaris says.

Because Mobilaris data and positions were shared in real time, the operation had seen an increase in safety and efficiency, according to Mobilaris.

This visit has since led to Gold Fields implementing both Mobilaris Onboard and Mobilaris Situational Awareness at its underground operations at Granny Smith.

Place said: “Mobilaris Onboard allows us to navigate to all locations underground quickly and efficiently. It will improve our productivity and decrease inactive time by reducing traffic congestion and finding equipment and machines faster.

“We are a haulage-constrained mine and, by reducing the cycle time of our haulage fleet, we can raise our productivity. It is a significant benefit.”

Strong customer relations allows Mobilaris to develop and test all products in real environments, as well as the possibility to bring companies to customer’s sites to experience the products in use, Mobilaris said.

“Our close relationship with the customer is a crucial success factor for Mobilaris,” Pascal Hansson, Sales Director, Mobilaris Mining & Civil Engineering, said. “All our solutions are tested in Boliden’s and other companies’ underground mines. This gives us the confidence to deliver what we promise to our customers.”

Gold Fields has plans to use Mobilaris Situational Awareness as its number one source of information and integrate it with fleet management, inventory systems, and the daily shift scheduler, according to Mobilaris. The mine’s digital investment is expected to pay off within a year, it added.

Place explained: “The location data will synchronise with daily schedules to ensure real-time data is captured from the time jobs are planned and executed. We are looking at efficiency improvements, but we are currently introducing this technology to maintain our production profile with the increasing depth and costs.”

The Gold Fields modernisation program has full support from top to bottom and is expected to be finished over the next two years, Mobilaris said.

During the research process, Gold Fields discovered that Mobilaris Onboard addresses specific safety issues. By sharing positional data and navigation in 3D, drivers can avoid traffic congestion and find shelter during emergencies.

Place said: “We have installed tablets in all our heavy vehicles. With Onboard’s traffic awareness feature, we can minimise the vehicle-vehicle interaction and the vehicle-personnel interaction. The application also tells us where to find the three nearest refuge chambers to our location. So, if there is an emergency, we can get the quickest path to safety.”

CSI NextGen II modular crushing plant starts up at BHP Mt Whaleback

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Mineral Resources Ltd’s CSI Mining Services team has reached a major milestone with the NextGen II modular crushing plant having now crushed its first ore at the BHP-owned Mt Whaleback iron ore mine in the Pilbara of Western Australia.

The relocatable plant, developed by CSI and Metso Outotec, has been painted in Lifeline WA’s trademark blue and displays the 13 11 14 crisis support number.

The crusher has been on a monumental journey to get to its final home in the Pilbara, transported by a sea vessel from its manufacturing site in Turkey to CSI’s Kwinana workshop.

“The CSI team at Kwinana worked around the clock to assemble the revolutionary relocatable modular design last year, which allows for sustained reliable performance over time with the flexibility required to meet our clients’ changing and challenging production demands,” the company said.

CSI was awarded the contract to design, construct and operate the 12 Mt/y crushing plant back in June. It was due to replace the existing CSI crushing plant at the iron ore operation.

The crushing and screening plant is expected to come with low capital and operating costs, in addition to significant flexibility with its portability. It is assembled in modules and, compared with fixed crushing plants, provides for sustained reliable performance over time with the flexibility required to meet clients’ changing and challenging production demands, according to CSI.

Rio Tinto cements new Singapore-Western Australia freight shipping route

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Rio Tinto says it has secured a new commercial freight shipping service connecting Western Australia’s Pilbara region to the major international shipping hub of Singapore.

The service will provide the company with a quicker, cheaper and cleaner alternative to the existing freight delivery route via Perth, helping to drive regional economic development and local job creation, according to the miner.

The regular freight service commenced with the arrival of the MCP Graz at the Port of Dampier from Singapore today. The vessel delivered essential maintenance supplies for Rio Tinto Iron Ore’s operations in the Pilbara, including rail wagon wheels, wagon parts, oil and lubricants. Future shipments are expected to include tyres for heavy earth moving equipment, conveyor belts, rail wagon and locomotive parts and mining consumables.

The service is also open for use by local businesses in the northwest of Australia, providing companies operating in the region with better access to international markets and more efficient movement of freight, Rio said.

Rio Tinto Iron Ore Managing Director of Port, Rail and Core Services, Richard Cohen, said: “This is an important new service that connects the Pilbara to the rest of the world via the major international shipping hub of Singapore. It will provide a number of benefits by delivering cheaper, cleaner and faster freight to the region.

“It is an important breakthrough not only for our business, but it will also provide a great opportunity for the local Pilbara economy by helping to unlock small business growth and supporting job creation.”

Rio Tinto expects the service to reduce the lead time for goods in to the Pilbara by six to 10 days compared with freight via Fremantle. Additionally, it is expected to provide an annual saving of around three million litres of diesel fuel by reducing road train travel from Perth by more than 3.8 million kilometres.

Over time, Rio Tinto is hopeful more than 50% of its freight requirements to the Pilbara will use this service, increasing the speed of delivery and lowering costs. The vessel capacity of the freight service will be 350 TEUs (twenty-foot equivalent) with Toll Global Forwarding (a division of Toll Group) and other freight forwarders offering a service for smaller volumes on the vessel, the company said.

Peter Stokes, President of Global Logistics for Toll Group, said: “This dedicated container vessel service from Singapore to Dampier will enable enormous possibilities to deliver more efficient supply chains to the Pilbara region.

“Toll Group is heavily invested in the north of Western Australia and is one of the largest employers in the Pilbara region. We are proud to be partnering with Rio Tinto on this landmark project which will provide businesses in the north with a significant opportunity to access international imports and exports.”

Viva Energy, the supplier of fuels and lubricants and supply partner to Rio Tinto, expects to reduce its road transport travel by 350,000 km/y through use of the new service.

Viva Energy Sales Manager, Gavin Syminton, said: “Over and above any commercial benefits, there are also a number of other positive aspects to the initiative including increased opportunities for local employment through infrastructure investment, the reduction of our carbon footprint and a shorter, more efficient supply chain.

“As we continue to work closely with Rio Tinto, we hope to further connect our business and community through this opportunity while making the region a more sustainable place to live.”

thyssenkrupp rail-mounted stacker handed over to BHP South Flank

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thyssenkrupp says it has handed over the world’s largest rail-mounted stacker to its client BHP for the South Flank iron ore development in Western Australia,

The first stacker among a “trio of giants”, ST-04 took more than three years of research and design development in six countries, and two years of significant local fabrication, construction and commissioning processes, thyssenkrupp said.

Over the next few months, it will gradually ramp up its operating capacity of 20,000 t/h.

The engineering company was awarded this contract − one of its largest ever fabrication and construction projects in Western Australia − by BHP back in late 2018.

Under the €150 million ($181 million) contract, thyssenkrupp was to supply two stackers that deposit iron ore into stockyards for loading, and a reclaimer for loading the ore onto trains for transport to Port Hedland. The machines’ capacity of 20,000 t/h made them the largest rail-mounted stackers and reclaimers in the world, according to the company.

Primero has been helping thyssenkrupp in this pursuit, carrying out pre-assembly of the machines at its Australian Marine Complex, in Henderson, Western Australia.

In BHP’s half year results to December 31 released earlier this week, it said South Flank remained on budget and on track to deliver first production by mid-2021. The company expects the operation to ramp up to 80 Mt/y of output, helping replace production from the existing Yandi mine, which is reaching the end of its economic life.