Tag Archives: Western Australia

Swick Mining Services goes all-in on underground drilling

Automation, Mineral exploration, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , , , , , , ,

Swick Mining Services has decided to sell its surface drilling business and concentrate on underground mining in a move Managing Director, Kent Swick, says is a logical step for the company “aligned with our strategy”.

The Surface Reverse Circulation (RC) Drilling business is being sold to K-Drill Pty Ltd and K-Drill Equipment Pty Ltd.

The sale includes six surface RC rigs, associated equipment, inventory, personnel and contracts, with the transaction expected to complete in the March quarter of 2021.

Including the recent sale of a number of residual RC assets to other parties, Swick will receive total proceeds for its RC business and assets of around A$6.4 million ($4.8 million) in cash and will report a profit on sale of some A$1.2 million before tax, it said.

K-Drill is a new RC drilling company that will be specialising in providing high quality, safe and productive drilling solutions to the Australian mining industry, Swick said. It will be building on the foundations set by Swick and will be led by Managing Director, Brendan O’Shea, who is Swick’s current Business Development Manager.

The Surface RC Drilling business provides reserve definition and exploration drilling to clients and its sale enables Swick to focus on its core Underground Diamond (UD) Drilling business; a 70-rig fleet providing reserve definition and grade control drilling at producing mines. This business represents 96% of annual revenue, Swick says.

O’Shea said: “This opportunity will allow K-Drill to focus completely on surface drilling and we are pleased to provide clients with peace of mind in knowing that we will be bringing all current Swick RC employees and Swick’s existing robust operating systems to K-Drill, ensuring a smooth transition for existing clients.”

After the disposal of the RC division, Swick’s drilling revenue will be generated entirely by the company’s UD Drilling division. This division drills around 100,000 m/mth of core across four countries – Australia, USA, Portugal and Spain. It is on track to deliver a forecasted revenue of A$68-$70 million, with utilisation remaining strong with 13 rigs operating internationally, 25 in Western Australia (including two DeepEX rigs) and 20 across the rest of Australia in December 2020.

On top of the Surface RC drilling business sale, and in response to increased market demand, Swick has agreed to manufacture and sell its “world-class” GenII mobile drill rigs, it said. These rigs are the smallest footprint, but highest-powered mobile drill available on the market, according to Swick, with many unique features including a “world-class automation package”.

Four GenII rigs are currently under construction for two large global drilling contractors for use outside of Australia, Swick said.

In response to increased demand for drill rigs from both Swick’s in-house drilling division and expected interest by external customers, Swick is gearing up its engineering facility at its South Guildford, Western Australia headquarters, to meet this demand, it said.

Swick Engineering has appointed an experienced senior mechanical engineer for the role of Production Manger that will manage the engineering business and oversee the efficient builds and rebuilds of the GenII drills.

FQM awards Ravensthorpe nickel E&I package to SIMPEC

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SIMPEC says it has been contracted by First Quantum Minerals (FQM) to deliver an electrical and instrumentation (E&I) package at the Ravensthorpe nickel operations’ Shoemaker-Levy project, in Western Australia.

This material, newly awarded contract is SIMPEC’s first with FQM, the company said.

The contract scope is for the E&I portion of work for Shoemaker-Levy, with the value expected to be around A$9 million ($6.8 million).

The works are planned to commence immediately and be completed by mid-2021, the WestStar Industrial subsidiary says.

With FQM restarting Ravensthorpe in early 2020, it has been expanding into a second stage nickel laterite deposit, Shoemaker-Levy, to provide the operation with a long-term life of around 30 years.

Civmec tops up Iron Bridge work with new on-site contract

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Steel and iron ore, , , , , ,

Civmec Ltd has confirmed approximately A$140 million ($105 million) in new contracts, with one of these a new agreement to deliver on-site structural, mechanical, piping and electrical works for the Iron Bridge magnetite project, in Western Australia.

The Iron Bridge contract will be delivered through the Minerals and Metals Division, while the other heavy engineering manufacturing projects will be delivered from Civmec’s expanded fabrication facilities.

It includes the installation of the crushing circuit, primary grinding, dry separation, air classification and dry tailings units for the dry plant at the project. Mobilisation will commence in early 2021 and, at peak, the project will employ around 400 people on site.

Iron Bridge is a joint venture between Fortescue Metals Group’s subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd (IBJV).

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are delighted to extend our relationship with IBJV with further work awarded on the Iron Bridge magnetite project. We are currently delivering site civil concrete works and have commenced work for the supply of 4,700 t of steel structures and modules for the same project, so this latest award is a very rewarding outcome and aligns well with our multi-discipline capability business model.”

Back in July, Civmec said the Metals and Minerals division had been awarded a standalone civil contract to build the structural concrete components for the dry plant at the IBJV.

Solar and gas power to energise Gruyere gold mine expansion

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APA Group has been contracted to expand the power generation capability of the Gruyere gold project, in Western Australia, as part of a contract that will include the addition of a renewable energy hybrid microgrid, solar power and battery energy storage system.

This news came within Gold Road Resources Limited’s and Gruyere Mining Company’s report on power expansion initiatives at Gruyere, a 50:50 joint venture between Gold Road and Gold Fields, around 200 km east of Laverton.

APA has been contracted to install an additional 4 MW reciprocating gas-fired engine by mid-2021 (Phase 1) and build, own and operate a 13 MWp solar farm and 4.4 MW battery-energy storage system by the end of 2021 (Phase 2) under the existing Electricity Supply Agreement (ESA) that runs until November 2033.

The cost of the Phase 1 and Phase 2 expansion will be amortised over the term of the ESA and is forecast at A$32-38 million ($24-28 million). Phase 1 and Phase 2 will increase the installed power capacity at Gruyere to 64 MW.

The benefits of the sustainable power expansion at Gruyere include:

  • Reduction of carbon emissions by an estimated 16,000 t/y CO2-e;
  • Anticipated 5% power supply unit cost saving (MWh), at current gas market prices;
  • Ameliorating gas power generation capacity constraints, including the derating of gas engine performance at high ambient temperatures;
  • Enable increased plant throughput up to the target of 10 Mt/y;

Gold Road Managing Director and CEO, Duncan Gibbs, said: “Gold Road is proud to be part of this green energy initiative. We have long stated our intention to be an ESG leader, and this initiative follows on from the recent commissioning of a solar and battery power solution at our Yamarna exploration facility.

“The power expansion at Gruyere provides an elegant technical solution that reduces greenhouse gas emissions, decreases costs and enables an increase in plant capacity up to a targeted 10 Mt/y from the current nameplate design of 8.2 Mt/y. This will not only see increased annual cash flow generation for the business, but it will help drive additional unit cost reductions as Gruyere is further defined as a Tier One, low cost and long-life gold producer.”

Gold Fields Executive Vice President, Stuart Mathews, said: “The installation of renewables as part of our total power solution at Gruyere reflects Gold Fields’ strategic objective to strengthen energy security, optimise energy costs and reduce our carbon footprint through the adoption of innovative new technologies. The success of the recently completed renewable energy projects at our Agnew and Granny Smith mines has given Gold Fields the confidence to ramp up use of these technologies across our global operations.”

Minetek breathes new life into Saracen’s Thunderbox gold mine

Environmental, Mine operation news, Mine ventilation, Mineral project development, Mining services, Precious metals, , , , , , , , ,

Minetek has been chosen to install an interim primary ventilation solution at Saracen Mineral Holdings’ Thunderbox operations in the northern Goldfields region of Western Australia.

Saracen was looking for an innovative ventilation solution to replace the traditional axial fans that were not supplying the required ventilation to increase production at the site, Minetek said.

The METS company said it was able to cater to the client’s needs and offer a custom solution that was installed with minimal disruption.

“We were able to customise a solution that was the same size in diameter to their existing fans but delivered a substantial increase to performance at the same time,” Minetek General Manager for Ventilation, Jeremy Sutherland, said.

Minetek’s POD (Pressure On Demand) technology allows the client to incrementally increase ventilation levels underground when required and give the client control over their energy consumption, the company said.

Saracen Thunderbox Underground Manager, Des Koh, said Minetek fans were selected to upgrade the site’s primary ventilation network, in preparation for a production ramp up, due to their ability to produce almost double the ventilation flow of the previous setup while only taking up slightly more room.

“The relatively small fans allowed us to utilise our existing bulkhead, where we were severely limited by space, which allowed us to use our existing infrastructure and dramatically reduce downtime in the mine during the change out,” Koh said.

“The installation was completed safely by our own personnel with technical support from Minetek and allows us to scale our ventilation flow with their pressure on demand system to suit our production profile.”

Weir adds aftermarket and service contract to Iron Bridge remit

Comminution of minerals, Equipment maintenance, Mineral processing, Mineral project development, Mining equipment, Mining maintenance, Mining services, Steel and iron ore, , , , , , , , , , , , , , , , ,

The Weir Group says it has won a £95 million ($127 million) order to provide aftermarket components and service to the Iron Bridge magnetite project in Western Australia.

The aftermarket contract follows Weir’s success in winning a record £100 million order for original equipment for the Iron Bridge project in 2019, including its Enduron® High Pressure Grinding Rolls (HPGRs, pictured) that, it says, will enable dry processing of ore and use at least 30% less energy than traditional alternatives.

The Iron Bridge magnetite project is a $2.6 billion joint venture between Fortescue Metals Group’s subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd located in the Pilbara region, around 145 km south of Port Hedland.

Both the aftermarket order and revenues will be recognised over the seven-year period of the agreement, which starts in 2022, in line with the 22 Mt/y project’s initial production.

Ricardo Garib, President of Weir Minerals, said: “This is another landmark order for Weir. Having helped design an energy and water efficient magnetite processing plant, we are delighted to provide operational support for Iron Bridge from 2022. It is an excellent example of the value that Weir’s innovative engineering and close customer support can create for all our stakeholders and reflects the key role we have to play in making mining operations more sustainable and efficient.”

Weir’s Enduron HPGRs are increasingly replacing conventional mills in comminution circuits, Weir says. In addition to their energy and water savings, they also reduce grinding media consumption, while their wearable components last longer, reducing maintenance costs. Additionally, HPGRs contribute significantly to carbon dioxide emission savings.

Stuart Hayton, Managing Director of Weir Minerals Netherlands, where the Enduron HPGRs are designed and manufactured, said: “This is an important project for Weir and for the broader mining industry. We know comminution is one of the most energy intensive parts of the mineral process and, with our Enduron HPGRs, we have a unique ability to offer significant cost, energy and water savings to customers around the world. As the mining industry evolves, we are commited to continuing to innovate, reducing miners’ costs and environmental impact.”

This latest contract award means Weir now has more than £200 million of orders from the Iron Bridge project including its Enduron HPGRs, GEHO® and Warman® pumps, Cavex® hydrocyclones and Isogate® valves.

To support the project and future growth, Weir says it will build a new service centre in Port Hedland, Western Australia, thereby providing employment and training opportunities in the area, with a particular emphasis on supporting greater Aboriginal representation in the broader mining workforce.

Royal IHC to deliver automated wet harvesting equipment to Mackay potash project

Automation, Bulk handling, Energy minerals, Mineral project development, Mining equipment, Mining services, Water management, , , , , , ,

Agrimin has awarded Royal IHC the front end engineering and design (FEED) contract to provide automated wet harvesting equipment for the Mackay potash project in Western Australia.

Wet harvesting is currently used at the world’s largest sulphate of potash (SOP) operations and IHC is the world leader in the design and manufacture of dredging systems for wet harvesting solutions, according to Agrimin.

The Mackay potash project has been designed to use automated wet harvesters to collect and transfer raw potash salts from the solar evaporation ponds directly to the processing plant in slurry form. Inclusion of the wet harvesting technique in the definitive feasibility study (DFS) was supported by critical field data generated from Agrimin’s pilot pond operations between October 2018 and June 2020, the company said.

Application of the wet harvesting technique can provide significant operating benefits to Mackay potash project, including:

  • Significantly lower energy consumption to transfer raw potash salts from the evaporation ponds to the processing plant (ie raw potash salts will be transferred to the plant via pipeline as a slurry, thereby removing the requirement to truck dry salts);
  • Reduced labour costs as wet harvesters will be automated;
  • Increased overall potassium recovery with harvesting of two pre-concentration ponds to recover a portion of the potassium-bearing entrained brine; and
  • Reduced pond sizes due to harvesting occurring earlier in the evaporation cycle and not having to take ponds off-line for harvesting.

The wet harvester FEED work will be completed over the next eight months, building on the DFS level design work that was completed by IHC. IHC will deliver detailed construction design drawings for all key areas of the equipment including cutting tools and propulsion, slurry transport systems, hydraulics, electrics, field testing and a fixed cost for supply of the harvesting equipment, Agrimin said.

Production capacity at Mackay is designed to be 450,000 t/y of SOP over an initial 40-year mine life.

SCEE to electrify Rio Tinto’s Gudai-Darri iron ore mine

Mineral project development, Mining services, Power supply for mines, Steel and iron ore, , , , , , ,

Southern Cross Electrical Engineering is to perform plant electrical and instrumentation works at the Rio Tinto-owned Gudai-Darri (formerly known as Koodaideri) iron ore mine site in Western Australia as part of a contract valued at over A$65 million ($48 million).

The agreement will see SCEE mobilise to the Pilbara site in late 2020, with completion of work planned for December 2021.

SCEE Managing Director, Graeme Dunn, said: “We are pleased to secure this significant award with such a longstanding and valued client as Rio Tinto for whom we have undertaken many successful projects in the Pilbara. This further boosts our already strong order book and will provide a solid base of construction work in the resources sector into the 2022 financial year.”

Earlier this month, Rio opened Western Australia’s newest airport at the $2.6 billion Gudai-Darri Stage 1 iron ore project (see photo, credit: Rio Tinto). The greenfield mine development, around 35 km northwest of the Yandicoogina mine in the East Pilbara mining region, will initially be developed as a nominal 43 Mt/y high-grade, dry processing operation, with start-up expected in early 2022.

Monadelphous pockets more WA iron ore, nickel work with Rio and BHP

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Engineering company Monadelphous Group says it has secured new construction and maintenance contracts with both Rio Tinto and BHP, with a combined value of around A$60 million ($44 million).

The company has been awarded three three-year master services contracts with Rio Tinto for the delivery of sustaining capital projects across various mine sites and port operations throughout the Pilbara region in Western Australia (stockyard machines at Rio’s West Angelas iron ore operation, pictured), it said.

This work includes structural, mechanical and piping, electrical, instrumentation and controls, and non-process infrastructure projects.

Monadelphous also secured a three-year contract, with a two-year extension option, with Rio Tinto to provide mechanical, electrical and access maintenance services for fixed plant shutdowns at Rio’s Gove alumina operations in the Northern Territory of Australia.

In addition, Monadelphous secured a 12-month extension to its existing mechanical and electrical maintenance, shutdown and project services contract across BHP’s Western Australian nickel operations.

Capricorn Metals moves into final development stretch at Karlawinda gold project

Comminution of minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, Power supply for mines, Precious metals, , , , , , , , , ,

Capricorn Metals has confirmed Way Electrical Pty Ltd will carry out the plant electrical installation at its Karlawinda gold project (KGP) in Western Australia following a competitive pricing process.

The contract is in the order of A$5 million ($3.6 million) and is in line with Capricorn’s budget estimate, it said.

This is the final significant construction contract for the build of the processing plant at Karlawinda.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 110,000-125,000 oz of gold. The company plans to mine a single large, low strip ratio open pit and use a 3.5-4.0 Mt/y carbon-in-leach processing plant.

Development of the project is underway, with commissioning expected in the March quarter of 2021.

Alongside this contract award, the company said the manufacture of the ball mill for the KGP had been completed by CITIC in Luo Yang, China.

The mill components have been subjected to and passed all the required manufacture quality control inspections, and tests and are now in various stages of despatch for shipping to Australia, it explained.

With the major (and oversize) components due for departure on November 21, the estimated arrival in Port Hedland is December 10, allowing for the oversize mill components to get to the KGP by mid-December.

In addition to this, the steel pipe for the 40 km of lateral gas pipeline from the Goldfields Gas Pipeline (GGP) to the KGP power station arrived in Fremantle from Korea and has been delivered to site.

APA, the build-own-operator of the pipeline, has (in consultation with Capricorn) awarded the pipeline construction contract to McConnell Dowell, which is currently mobilising to site with a view to commencing construction in December 2020.

Once operational, the lateral pipeline from the GGP to KGP will transport around 3 Tj/d of gas for power generation at KGP.

The KGP power supplier, Contract Power Australia, has progressed fabrication of the power station building at the project, with the eight Cummins HSK78G, 2 MW gas generator units in transit from the US with expected delivery to the KGP site in early February 2021.

Lastly, the KGP open-pit earthmoving contractor, MACA, has commenced mobilising mining equipment to site. Early preparatory works have commenced including haul road construction and limited waste mining mostly to provide materials for surface water bunds and tailings storage facility construction.

The first waste rock blast of material in the Bibra stage 1 pit has been fired successfully, Capricorn said.