Tag Archives: Western Australia

Galena signs up Contract Power for hybrid power gen facility at Abra JV

Base metals, Environmental, Mineral project development, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , , , , ,

Abra Mining Pty Ltd, the joint venture company behind the Abra base metals project, has executed a power purchase agreement (PPA) with Contract Power Australia that could see the construction and operation of a hybrid power generation facility made up of a natural gas and solar energy array at the Western Australia project.

Announcing the PPA, Galena Mining, which owns 77.28% of the project, said Contract Power will build, own and operate an integrated hybrid power generation facility combining a 10 MW natural gas fired power station, a 6 MW solar array, 2 MW of battery energy storage and a 900 Kl LNG storage and regasification facility.

Power will be purchased by Abra under the PPA for an initial term of 16-years (extendable), it said.

Galena Managing Director, Alex Molyneux, said: “We’re pleased to partner with Contract Power on a clean, cost-effective power solution for Abra. Integrating solar with relatively clean natural gas instead of diesel achieves a marked reduction in Abra’s carbon footprint compared to alternatives considered in the tender process.

“Pleasingly, the design also offered the most cost-effective solution, in line with our feasibility study estimates.”

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.

A Western Australia-based company wholly-owned by Pacific Energy Ltd, Contract Power specialises in the design, construction and operation of remote power stations for the mining and government sectors.

Contract Power has operated power stations around Australia under turnkey build-own-operate arrangements since 1999, and recent projects include a 56 MW gas fired power station for Mineral Resources Ltd’s Wodgina lithium project, a 18 MW gas fired station for Capricorn Resources’ Karlawinda project and a 18 MW gas and diesel power station at Wiluna Mining Corp‘s Wiluna gold project.

Contract Power’s Managing Director, Leon Hodges, said: “We are very pleased to be working with Galena on this important project and look forward to rewarding their confidence by delivering a world-class hybrid power station.

“Contract Power’s combined LNG and renewables integration capability has allowed our design team to maximise solar penetration as high as the economics and technology allows, providing the Abra project with the highest reliability and lowest cost of power on an unsubsidised basis.”

The PPA remains subject to the condition of Abra Mining Pty Ltd proceeding to final investment decision for the project, Galena said.

Fortescue employs SRG Global for maintenance and shutdown services

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SRG Global has been awarded a five-year term contract from Fortescue Metals Group to initially provide rope access and electrical maintenance requirements across the company’s mine, rail and port locations throughout Western Australia.

The A$150 million ($117 million) term contract, which has already commenced, is a Master Agreement for Maintenance and Shutdown Services, the company said.

Locations for SRG’s work include the Christmas Creek (pictured), Cloudbreak, Firetail, Kings Valley and Eliwana mine sites, along with its supporting rail and port infrastructure.

SRG Global Managing Director, David Macgeorge, said: “We are delighted to be selected as a key partner to FMG and to provide critical maintenance and shutdown services across their Pilbara operations for the next five years. This is another significant step forward in our strategy to build a portfolio of annuity earnings, with quality clients, to deliver long-term sustainable growth.”

Sanjiv Ridge heads for full operations after Atlas Iron crushes first milestone

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Atlas Iron has announced first ore has been crushed at its new mine, Sanjiv Ridge, in Western Australia, ahead of schedule.

Sanjiv Ridge is set to provide a significant boost to Atlas’s annual output, with an expected 4-5 Mt/y of lump and fines to be hauled by road to the Utah Point stockyard at Port Hedland. It is expected the mine will add 5-6 years to the Atlas value chain, with 64 Mt at 57.2% Fe of mineral resources and 29 Mt at 57% Fe reserves.

On the crushing milestone, Atlas Iron CEO, Sanjiv Manchanda, said: “Congratulations to all our team members, including both Atlas Iron staff and our valued contractors, for their hard work and dedication to hit this target ahead of schedule. Now, with first ore crushed, we are focusing on building the product stockpile and commencement of road haulage.”

Sanjiv Ridge was recently renamed from Corunna Downs after Atlas’ CEO in recognition of his long service across the Hancock Prospecting Group of companies.

The new mine site is due to be in full operation in the third quarter of Atlas’ 2021 financial year, and is situated northeast of Atlas Iron’s existing mining operation, Mount Webber.

Macmahon expands underground work with Silver Lake Deflector contract

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Macmahon Holdings’ underground mining division has been awarded a four-year contract with Silver Lake Resources to perform the mining works at the Deflector gold-copper mine in Western Australia.

A Macmahon subsidiary, GBF, has been providing underground mining services at the Deflector mine since mining commenced in early 2016. Macmahon acquired 100% of GBF in 2019, and this business is now an important part of the company’s strategy to expand in the underground mining services market, it said.

The company also recently had its stay extended at Silver Lake’s Mount Monger gold operations, in Western Australia.

The contract is a full service mining contract and, therefore, incorporates all underground development, ground support and production activities, including the provision of all labour and mobile mining equipment. Anticipated to run until April 2025, the contract is expected to generate around A$220 million ($170 million) in revenue for the company over this period.

Macmahon’s CEO and Managing Director, Michael Finnegan, said: “This new contract is an important milestone in our strategy to expand our underground business, and is a clear demonstration of the benefits we are now realising from the GBF acquisition.

“Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market.”

Pantoro enlists GR Engineering to build Norseman gold processing plant

Comminution of minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, Precious metals, , , , , , , ,

Pantoro Ltd has signed a Letter of Intent with GR Engineering Services that is likely to see the ASX-listed contractor take on the engineering, procurement and construction works for the processing facility at the Norseman gold project in Western Australia.

The gold company, which owns 50% of the asset, said detailed engineering works will commence immediately and orders will be placed for long lead items including the 3.3 MW ball mill. Contract documentation is being finalised and is expected to be executed before the end of February.

The contract value is around A$57 million ($44 million) and will be awarded as a guaranteed maximum price agreement, Pantoro noted. This value is inclusive of the crushing circuit associated with the plant.

The DFS announced in October 2020 contemplated a build-own-operate-transfer (BOOT) arrangement for the crusher at Norseman with the transfer planned in year three.

This study also outlined average production of 108,000 oz/y over a seven-year phase one life, peaking at 119,000 oz in year two of production. It also provided for a processing plant capacity of 1 Mt/y with flexibility to expand to 1.5 Mt/y.

Separately, demolition works for the existing plant on site have been awarded with commencement of site works planned for mid-February.

Pantoro Managing Director, Paul Cmrlec, said: “We are pleased that GR Engineering Services will undertake work with their proven track record in new processing plant builds in recent years. GR Engineering has been the dominant supplier of new processing plant builds in Western Australia in recent times, and we look forward to drawing on their experience in construction of the plant at Norseman.”

Aqura Technologies to boost FMG’s network at Kangi accommodation camp

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Veris Ltd’s wholly-owned subsidiary Aqura Technologies has been awarded A$1.1 million ($849,165) in works to undertake an upgrade of the in-situ accommodation network at Fortescue Metals Group’s Kangi 1,850 room village in the Pilbara Region of Western Australia.

The scope of the Kangi village engagement is to design and deliver physical upgrades to the GPON network to ensure a high level of reliability of services to village guests, it says.

The enhancement of the existing infrastructure using Aqura’s specialist technical expertise will establish an extremely robust platform for the delivery of entertainment services and wellbeing programs to the large workforce accommodated at the site, the company explained.

Aqura has commenced the design phase and will look to complete the scope of works by July.

“The new contract adds to Aqura’s strong track record in delivering high-performance Content Access Network (CAN) solutions for clients such as BHP, Newmont, OZ Minerals and Abra Mining,” Veris said. “Aqura’s expertise in the delivery of CAN solutions has delivered enhanced user experiences in over 16,000 accommodation rooms completed to date.”

The Kangi camp was constructed – and expanded – by Pindan (photo courtesy of Pindan) as part of FMG’s Solomon iron ore mine development.

Aqura Technologies CEO, Travis Young, said: “We’re pleased to kick off a new engagement with Fortescue who are looking to our in-house team to provide a high-quality foundation for their Kangi Village network.

“The contract award is testament to the strong quality and safety record of Aqura in the design and delivery of high-quality network infrastructure.

“We are very mindful of the benefits of this type of investment which fundamentally supports and enhances the positive wellbeing for fly-in fly-out staff who are away from home for extended periods and need reliable infrastructure to support connections to family and friends.”

Ora Banda Mining hits its stride at Davyhurst Gold Process Plant

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Ora Banda Mining Ltd is pleased to advise that the Davyhurst Gold Process Plant, in Western Australia, has been successfully recommissioned, with the first gold poured on February 7.

All supporting infrastructure required to sustain ongoing processing activities at the processing plant’s rated capacity of 1.2 Mt/y is now in place and has been commissioned, the company said.

This includes the new 8.25 MW gas and diesel fired power station, extensively upgraded and commissioned bore fields (for both potable and process water supply), process plant chemical storage facilities, upgraded road infrastructure for ore supply routes and an upgraded 172 room camp at Davyhurst.

Practical completion for the remedial work program undertaken by GR Engineering Services was achieved on January 24, 2021, following which a commissioning blend of low-grade oxide and transitional ore stock together with primary ore from the Golden Eagle underground deposit was introduced into the plant.

Processing operations are currently stable and running at a throughput rate approaching 1 Mt/y with targeted grind size of P80 – 106 µ being achieved. Throughput will continue to ramp in line with the definitive feasibility study (DFS) schedule. This DFS outlined a production target of 418,000 oz of gold over an initial five-year mine life based on an ore reserve of 460,000 oz (6.1 Mt at 2.4 g/t Au) from six deposits within 50 km of the existing 1.2 Mt/y plant.

The company says it is well placed to progress process circuit optimisation and production ramp up with in excess of 200,000 t of run of mine stocks currently available for processing.

Ora Banda Managing Director, David Quinlivan, said: “Yesterday’s gold pour marks a significant milestone for Ora Banda – our transition from developer to producer. We are pleased to reach this important milestone and congratulate all who have been involved on the accomplishment. It has been an impressive team effort to deliver this project into production under the uniquely challenging circumstances of 2020 and 2021.

“Our focus now remains on the continued ramp up of activity as we progress toward steady state and the ultimate goal of delivering a long-life and sustainable gold operation.”

Barminco bags A$200 million contract extension at Gold Fields’ Agnew mine

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Perenti’s hard-rock underground miner Barminco says it has been awarded a A$200 million ($153 million) contract extension at Gold Fields’ Agnew gold mine in Leinster, Western Australia.

The extension is for full underground mining services, driven by an increase in development and production “physicals” at the mine, Perenti said, adding that Barminco has been operating at Agnew since 2010.

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said: “We are delighted to be extending our relationship with our long-standing client, Gold Fields.

“Part of our 2025 group strategy is to organically grow this part of our business. The recent achievements of Barminco in this regard are a result of the strong relationships we share with our clients and the value we create for them through our world-class underground mining capabilities.”

Perenti Mining Chief Executive Officer, Paul Muller, said: “We have been providing safe and efficient underground mining services at Agnew for more than 10 years and we are very pleased to be supporting Gold Fields with their increased development and production requirements. This extension will take our current term out to December 2023.”

Barminco to debut Epiroc Diamec Smart 6M in the Goldfields of Western Australia

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Barminco says it has become the first company in the world to debut the new generation of Epiroc’s Mobile Carrier Rig (MCR) – the GEN 2 Epiroc Diamec Smart 6M.

This second-generation underground mobile core drill rig uses the drilling capacity of the Diamec Smart 6 automated operating system, and the mobility and sturdiness of the S2 Boomer carrier with the addition of Epiroc’s automated rod handler, the contractor said.

Epiroc says the the Diamec Smart 6M combines the best of two worlds – the high productivity and accuracy of a Diamec core drilling rig, with the mobility of a robust carrier designed for underground use.

The Rod Handling System, coupled with the Smart 6 Rig Control System, allows for full automation, increasing operator safety and productivity, according to Barminco.

The company said: “Combining Epiroc’s cutting-edge technology of their drilling and rod handling operating systems brings the underground drilling industry a step closer to having ‘no hands on steel’ and taking a giant step forward towards a safer environment for the operators.”

The contractor is due to commission the rig next month at a client site in the Goldfields of Western Australia.

Barminco added: “The addition of the Epiroc GEN 2 MCR to our state-of-the-art fleet supports our Diamond Drill team to Enable Tomorrow, work Smarter Together and take No Shortcuts. Following these Barminco Principles will help create a safer environment for our people and will assist our client in consistently achieving production targets.”

Early works kick off for Havieron box cut and exploration decline

Mineral project development, Precious metals, , , , ,

Following signoff of the $112 million construction of the box cut, exploration decline and associated surface infrastructure at the Havieron gold project in Western Australia, Greatland Gold, one of the joint venture owners, says early works activities have commenced at the project.

Operated by Newcrest under this JV agreement with Greatland, Havieron has an initial inferred resource of 52 Mt at 2 g/t Au and 0.31% Cu for 3.4 Moz of gold and 160,000 t of copper.

The commencement of early works by Newcrest, as manager of the JV, follows receipt of the necessary regulatory approvals to commence these construction activities.

Gervaise Heddle, Chief Executive Officer of Greatland Gold, said: “The commencement of early works activities at Havieron marks a major milestone for the project and for the company.

“Earthmoving activities to prepare for the construction of the box cut and decline have begun and we will continue to update shareholders as work progresses. In addition, we look forward to advancing the 2021 growth drilling program at Havieron, where mineralisation remains open in multiple directions outside of the initial inferred mineral resource estimate.”

Work is ongoing to finalise the Water Management Plan for the early works program and to progress further approvals and permits that will be required to commence development of any operating underground mine and associated infrastructure at Havieron, Greatland said.

In addition, the development of any underground mine at the Havieron project will also be subject to further studies, board approvals and a positive decision to mine.