Tag Archives: Western Australia

Rio Tinto and Dalian Port Company sign iron ore blending MoU

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Rio Tinto and Dalian Port Company Ltd have signed a memorandum of understanding that could lead to the development of the miner’s first iron ore blending operation in a bonded area.

The joint development within Dalian port, in China, will blend material to create Rio Tinto Blend Fines from Rio’s high-grade IOC concentrate from Canada and its SP10 from Western Australia. This blend has been a success with customers in China, Rio says.

“The partnership with Dalian Port to blend within a bonded area allows Rio Tinto to offer this product to customers across Asia, using Dalian Port as a trans-shipment hub,” it said. “Establishing portside capabilities at Dalian Port will also allow Rio Tinto to serve portside customers in Northern China.”

Simon Farry, Rio’s Vice President of Sales and Marketing, Iron Ore, said: “We are very pleased to be working with Dalian Port to establish blending capabilities within the bonded area. Dalian’s location, blending capabilities and willingness to support this initiative makes Dalian Port the right partner for us.

“Establishing a transhipment hub in China, which allows us to offer new blended products in other Asian markets, will enhance our ability to deliver quality and consistent products, and provide innovative solutions to meet our customers’ needs.”

Rio Tinto portside trading operations were established to sell Rio Tinto iron ore directly from Chinese ports. Portside trading of iron ore is transacted in RMB, which allows Rio Tinto to serve new customers who do not participate in the seaborne market, it says.

Alltype Engineering goes modular for Rio Koodaideri iron ore plant deliveries

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WestStar Industrial Ltd’s engineering contractor business, Alltype Engineering, is to help build an iron ore mine plant at the Rio Tinto-owned Koodaideri project in the Pilbara of Western Australia, thanks to a contract award from Laing O’Rourke.

The Phase 1 Structural, Mechanical, and Piping package for the mine plant comes with a value of around A$6 million ($4.4 million) for fabrication works plus associated modularisation scopes, WestStar says.

The execution plan developed by Laing O’Rourke, the managing contractor, is based upon substantial preassembly and modularisation of the structural steel elements at Alltype’s Naval Base facility, in Western Australia (pictured). The contract win takes immediate effect with delivery and install dates up to January 2021, it said.

“The works to be performed leverage off the core competencies of the company with similar delivery strategies utilised for oil and gas, petrochemical and infrastructure projects in the past,” WestStar said.

Koodaideri is a greenfield mine development, around 35 km northwest of the Yandicoogina mine in the East Pilbara mining region. The mine will initially be developed as a nominal 43 Mt/y high-grade, dry processing operation. First production is expected in late 2021.

WestStar acquired Alltype Engineering last year in a deal that involved an upfront payment of around A$5.9 million, along with a deferred consideration subject to Alltype achieving its 2020 financial year targets.

Alltype Engineering Managing Director, Kelvin Andrijich, said: “Alltype Engineering undertook a significant strategic shift in direction in 2017, focusing on multi-discipline construction solutions, technology partnerships with OEMs and leveraging off the well-established industry exposure developed over 35 years of operation. This strategy continues to unfold with our established local fabrication capability and by building upon successive projects delivered of increasing scale and complexity with existing and new clients.

“The support of our new owner, WestStar Industrial, allows the group to execute larger contracts previously constrained by working capital, as well as start to expand the operational footprint to the east coast of Australia where there is further market opportunity for this offering.”

Barminco, Ausdrill transport Rhino 100 raise borer to Regis’ Rosemont gold mine

Mine operation news, Mine shafts and equipment, Mineral exploration, Mining equipment, Mining safety, Mining services, Precious metals, , , , , , , , , , , , ,

Having become the first company globally to have taken delivery of a mobile raiseboring machine with uphole, downhole, and back reaming capability, Barminco is transporting a Rhino 100 Raise Borer to another client site in Australia.

With the help of its Perenti surface mining partner, Ausdrill, the newest addition was recently transported to Regis Resources’ Rosemont gold mine in Western Australia.

Just last year, Barminco sealed a three-year underground mining services contract with Regis at Rosemont, which has been transitioning from open-pit to underground mining at the operation.

Barminco said: “Through safe and rapid mobilisation, we are able to meet our clients’ needs and transport our equipment across multiple sites to complete a range of drilling campaigns.”

Since April 2019, Barminco’s first Rhino has travelled a combined 15,000 km between four client sites in the Goldfields of Western Australia, drilling a total of 3,843 m.

The Rhino is manufactured by TRB-Raise Borers in Finland but is equipped with Sandvik tools and is distributed by Sandvik. It is a fully mechanised and self-contained electro-hydraulic mobile raiseborer designed for slot raising in underground mining. The latest models also have an optional back reaming module.

In addition to helping transport Barminco’s latest Rhino to Regis’ site, Ausdrill has recently added a new Boart Longyear LF™160 drill rig and FREEDOM™ Loader combination to its diamond drilling fleet.

This rig reduces the crew’s “Hands On Steel” interaction, while improving overall safety standards, Ausdrill said.

When paired with the FL262 FREEDOM Loader, the LF160 combination is ideal for contractors who want to target sophisticated surface drilling exploration contracts that stipulate some of the highest safety standards, without compromising on productivity, Boart Longyear says.

Ora Banda’s Davyhurst gold mine restart to be powered by LNG

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

Ora Banda Mining and Wesfarmers’ liquified natural gas business, EVOL LNG, have signed a new long-term agreement to bring LNG to the Davyhurst gold mine in Western Australia’s Goldfields region.

The gold mine is aiming to restart production in January 2021 after being placed into care and maintenance in 2018.

Ora Banda’s definitive feasibility study (DFS) for the Davyhurst Restart project 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 plant is being refurbished by GR Engineering Services.

EVOL LNG’s Manager, Nick Rea, said the business had proven its winning LNG solution to the mining industry over the past 12 years with its customer base continuing to grow.

“We are excited to support the Davyhurst mine back into production,” he said. “Ora Banda is now our ninth mining customer and we are keen to provide them with the benefits and value that are afforded to EVOL LNG’s customers.”

EVOL LNG will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine. The facility will use EVOL LNG’s modular design, which, the company says, allows for fast installation and expandability if the mine’s energy requirements increase in the future.

Ora Banda Mining’s Managing Director & CEO, David Quinlivan, said: “Ora Banda’s agreement with EVOL LNG has enabled the company to secure a stable long-term energy solution for Davyhurst on terms consistent with those outlined in the DFS. The use of LNG as the primary fuel source for the Davyhurst power station also provides significant
environmental benefits.

“The company estimates its power generation greenhouse gas emissions will be reduced by approximately 25,000 t during the initial five years of operation when compared to conventional diesel power generation.”

The mine will use EVOL LNG to fuel a 7.5 MW gas-fired power station, with supply planned to commence from December 2020.

The LNG will be supplied from EVOL LNG’s Kwinana production facility in Western Australia, which was expanded earlier this year. Planning is underway for the next expansion to meet the growing market demand.

CRC ORE’s Kal Hub integrated into Curtin University’s WA School of Mines

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The Kalgoorlie-Boulder Mining Innovation Hub, an initiative of the Cooperative Research Centre for Optimising Resource Extraction (CRC ORE), has, this week, transitioned to be part of Curtin University’s Western Australian School of Mines (WASM).

The Kalgoorlie-Boulder Mining Innovation Hub has been operating out of the Chamber of Mines and Energy (CME) office in Kalgoorlie, Western Australia, since 2018. It was established in the renowned Goldfields mining community thanks to a partnership between CRC ORE, Curtin University, the Minerals Research Institute of Western Australia, the City of Kalgoorlie-Boulder and CME.

CRC ORE Chief Operating Officer, Dr Luke Keeney, said he was pleased that the Kal Hub has become part of WASM and will continue this collaborative innovation.

“We are proud of what has been achieved through the Kal Hub since its inception and look forward to seeing great things under its new stewardship,” Dr Keeney said. “It is an optimal outcome that Curtin University, one of our valued Research Participants and key partner in the hub to date, is ensuring the future of the Kal Hub as a centre of mining innovation for Western Australia and beyond.”

Curtin University Kalgoorlie Campus Director, Sabina Shugg, said the Kal Hub is a welcome addition to the local campus.

“The Kalgoorlie-Boulder Mining Innovation Hub is growing in stature and already has strong ties to the University, WASM and the local community,” Shugg said. “It is fitting that the Kal Hub is now operated locally to focus on innovations and solutions for the local mining industry.”

Reflecting on the hub and its achievements while operating as a node of CRC ORE, Dr Keeney said the flagship Integrated Screening and Particle Sorting project was a standout.

“This collaborative study with Australian mining companies BHP, Norton Gold Fields and Saracen on the integration of screening and particle sorting techniques is delivering benefits across the resources sector,” Dr Keeney said. “Run through the hub, this study developed a robust and scientifically rigorous framework for collecting, testing and reporting results for integrated screening and particle sorting techniques in a variety of ore domains.”

Dr Keeney said the hub creates opportunities for innovation, collaboration, employment and education.

“We’re particularly proud of being able to engage students – mining’s future brightest minds, with the hub through the vacation student program,” he said.

As part of the transition, Kal Hub Technical Adviser, Dr Laurence Dyer, now works full time for Curtin University. He divides his time between hub projects and his existing role as Curtin’s Discipline Lead for Metallurgical Engineering.

“I’m looking forward to continuing to support collaborative innovation throughout the Goldfields region and beyond,” Dr Dyer said.

Curtin University is planning several new initiatives for the Kal Hub including scaling up an existing major water management project and new partnerships with leading mining technology providers.

Pit N Portal receives Notice to Proceed at Mincor’s Kambalda Nickel Operations

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With funding now materially advanced and board approval in place, Mincor says it has issued a “Notice to Proceed” to its underground mining contractor, Pit N Portal, to start work at the Kambalda Nickel Operations in Western Australia.

In line with the binding contract executed in May 2020, Pit N Portal has 60 days to plan and mobilise for commencement of the contract.

The announcement of a final investment decision for the planned re-commencement of nickel mining at Kambalda by Mincor is supported by a credit approved term sheet agreed with two Tier-1 international banks to provide a secured A$55 million ($40 million) project finance facility. The facility, together with the company’s existing cash reserves of more than A$100 million, will allow Mincor to efficiently execute the delivery of its nickel restart plan in line with the definitive feasibility study (DFS) announced in March 2020, it said.

The contract with Pit N Portal encompasses a five-year pact for the new Cassini nickel mine, where early surface works were recently completed, and a three-year contract (plus one two-year option) at the Northern Operations (the brownfields Durkin North and Long nickel mines – both of which are on care and maintenance having previously operated). These two assets (Cassini and Northern Operations) make up the planned nickel operation.

Mincor says there are already several Pit N Portal personnel on-site following the commencement of an early works program.

“With all required key environmental and State Government permitting in place to commence, Mincor anticipates that mobilisation will ramp-up quickly over the coming weeks, with commercial mine development and surface construction expected to be in full swing during the December 2020 quarter,” the company said.

Subject to unforeseen delays, Mincor is targeting commencement of ore production early in the December 2021 quarter. First ore delivery to the BHP Nickel West Kambalda nickel concentrator and first nickel concentrate production is expected in the March 2022 quarter.

The “Mincor Nickel Operations” DFS from earlier this year confirmed the potential to develop a five‐year operation forecast to produce 71,000 t of nickel and 5,000 t of copper on a life-of-mine basis, with peak annual nickel-in-concentrate production of more than 16,000 t/y at a forecast life of mine unit cost of $2.35/lb.

AngloGold, IGO eye Tropicana production flexibility as Boston Shaker goes commercial

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AngloGold Ashanti, in conjunction with its joint venture partner IGO Ltd, has declared commercial production at the Boston Shaker underground mine at its Tropicana gold operation in Western Australia.

Situated some 330 km east-northeast of Kalgoorlie, the operation is managed by AngloGold Ashanti Australia (AGAA) with a 70% interest, while IGO holds the remaining 30% interest.

Development of the Boston Shaker mine was approved in March 2019, and the mine transitioned into commercial production this month on schedule, below the A$105.7 million ($77 million) budget and, importantly, with no recordable safety incidents, AngloGold said.

Boston Shaker will deliver around 1.1 Mt/y of ore at an estimated grade of 3.5 g/t, contributing some 100,000 oz/y to gold production over a seven-year mine life.

“Underground mining at Boston Shaker will leverage further value from this high performing operation, achieving payback in just over three years with upside potential as the deposit remains open at depth,” AngloGold Ashanti SVP Australia, Michael Erickson, said. “The underground mine will contribute higher-grade mill feed from the current quarter onwards, improving the gold production profile and enhancing cash flow during calendar 2021-2023 when the mine plan includes periods of higher waste stripping in the Havana open pit.”

AngloGold has previously said operational excellence work at the underground mine is focused on remote bogging, the mechanical operator-controlled digging of ore from surface, and on optimising level spacing and extraction ratios.

The first production stope was fired in June 2020 and underground ore production has now reached an annualised production rate of 700,000 t/y with the design production rate expected to be achieved in March 2021.The commercial production milestone at Boston Shaker comes after Tropicana produced its 3 millionth ounce of gold in March this year, just seven years after pouring first gold in September 2013.

AngloGold explained: “From commencement of the operation at Tropicana the mining strategy has been designed to optimise cash flow, net present value and the delivery of ore. The Tropicana, Havana, Havana South and Boston Shaker open pits have been mined as a series of cutbacks, sequenced and scheduled to maximise value at a mining rate that delivers the best mining unit cost for the scale of the operation.”

Up until June 2020, ore production from the open pits exceeded the plant capacity, allowing higher-grade ore to be preferentially treated, while lower grade ore was accumulated on stockpiles. Over the course of the second half of 2019 and first half of 2020, the Tropicana pit and Havana pit were completed, in line with the mine plan. As a result, grade streaming came to an end and stockpiled ore is currently being used to supplement the mill feed from the Havana South and Boston Shaker pits.

A decision was made in the June 2020 quarter to invest in the next cutback of the Havana pit (Stage 2) which will allow access to the deeper Havana open-pit ore from 2022 onwards. While this cutback is being completed, mill feed will be sourced from the Boston Shaker open pit, supplemented by some 4 Mt/y of low grade (0.85-1.05 g/t) stockpiled ore, resulting in a lower milled grade over the period. The lower grade will be partially offset by the Boston Shaker underground mine, which is ramping up and will be contributing at full capacity by the second half of 2021.

The plan remains for gold production (at 100%) in 2020 and 2021 to be between 400,000-450,000 oz, compared with 513,785 oz last year. From 2022 onwards, annual gold production will normalise between 450,000-500,000 oz as the low-grade stockpile ore in the mill feed is displaced by a larger proportion of Boston Shaker underground ore and an increasing contribution of higher-grade ore from the Havana pit, as the cutback progresses.

AngloGold says significant potential remains to unlock known extensions of mineralisation beneath the Tropicana and Havana open pits and the extensions at depth of the Boston Shaker Underground. Development of an underground drill drive from the Boston Shaker Decline is well advanced with a total of 240 m completed to date. The drill drive is well positioned to also provide production access to the Tropicana underground reserve should the drilling prove successful. Underground diamond drilling is scheduled for the December 2020 quarter with a decision to mine expected during 2021.

Final trade-off studies are currently being completed on the Havana Stage 3 open pit cut-back and Havana underground to determine the optimal open pit – underground interface. A decision on the way forward for Havana Stage 3 is expected to be made during 2021.

(photo credit: Macmahon)

Macmahon, GR Engineering on board Calidus Resources’ Warrawoona gold project

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Calidus Resources has started construction ahead of schedule at its Warrawoona project, as well as made two key appointments to deliver on its gold mine development in Western Australia.

It has appointed Macmahon Holdings as the preferred mining contractor for the project, while GR Engineering Services has been awarded preferred tenderer status for the process plant engineering procurement and construction.

While construction activity has already commenced ahead of the main project construction activities, which are expected to kick off in the March quarter of 2021, these contract tenders will allow finalisation of major contracts as part of the ongoing feasibility study at Warrawoona, due for completion this month, Calidus said. It will also help facilitate front end engineering and design for the project and the placing of orders for long lead items.

This project involves the development of a new open-pit mine in the Pilbara region, with the scope of work for Macmahon to include all open-pit mining activities, and potentially some early stage civil works.

Macmahon estimates the open-pit mining work will generate around A$220 million ($160 million) in revenue over 54 months and require capital expenditure of circa-A$30 million. There is also potential for the Warrawoona project to include underground mining, which could represent a further opportunity for Macmahon when this is developed, it said.

Macmahon expects it will start work on site in the first half of 2021, with the project to eventually employ more than 120 of its personnel.

GR Engineering, which has completed the last two gold plants in Western Australia, according to Calidus, will work on the design and construction of the process plant and associated infrastructure, meanwhile.

A prefeasibility study on Warrawoona completed in July 2019 outlined average gold production of 97,000 oz/y at an all-in sustaining cost of $1,159/oz over an initial six-year mine life via a 2 Mt/y conventional CIL processing circuit with single stage crush and SAG mill.

Among the initial works the company has started are 7 km-long access road to the village and process plant (pictured); the installation of the 240 room village that has been previously purchased by Calidus; the installation and operation of communications by Telstra; and the installation and equipping of water bores.

Decmil captures NPI contract at Iron Bridge Magnetite project

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Decmil Group says it has been awarded a circa-A$41 million ($30 million) contract to undertake non-mining process infrastructure works at the Iron Bridge Magnetite project in the Pilbara region of Western Australia.

Construction is scheduled to commence in September 2020 and be completed by May 2021.

Under the scope of works, Decmil will design and construct a bulk fuel storage and transfer facility, a mobile maintenance complex, including workshops, warehouses and related satellite office and site services facilities.

The bulk fuel storage and transfer facility will provide a refuelling facility for heavy vehicles, while the mobile maintenance complex includes a heavy vehicle workshop that incorporates locker storage, tool storage and an administration area, Decmil said.

The $2.6 billion Iron Bridge Magnetite project, owned by Fortescue Metals Group subsidiary FMG Iron Bridge Ltd and Formosa Steel IB, is expected to see a new magnetite mine developed to support production of 22 Mt/y of high grade concentrate, according to Fortescue. First concentrate is expected to be produced by mid-2022.

Decmil’s agreement is the latest in a stream of contracts the JV has issued recently, including the award of a wet processing plant build to CPB Contractors, a civils contract awarded to Civmec to build the structural concrete components for the dry plant at the project, and PROK’s contract for the design, manufacture and supply of conveyor pulleys at Iron Bridge.

Decmil CEO, Dickie Dique, said the company was delighted to secure works at one of Australia’s most significant mining projects.

“Crucially, this award at such a major project enhances our credentials to potentially secure more work in a resurgent iron ore and magnetite sector,” Dique said.

Monadelphous expands BHP relationship with iron ore, coal, Olympic Dam work

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A month after securing several major contracts with BHP, Monadelphous Group has announced another series of works packages with the major miner that come with a combined value of around A$120 million ($87 million).

Two of the construction and maintenance contracts were awarded under its WAIO Asset Panel Framework Agreement with BHP.

This includes a contract to provide structural, mechanical and electrical upgrades at the Newman Hub site in the Pilbara of Western Australia, where work will commence immediately and is expected to be completed before the end of 2021.

The second agreement is at BHP’s Jimblebar iron ore mine site, in Newman, where the company will be dewatering surplus water from the operation.

In addition, Monadelphous has entered into the Olympic Dam Asset Projects Framework Agreement with BHP to provide multi-disciplinary construction services at the Olympic Dam copper mine, in South Australia (pictured). The first contract secured under this agreement is for the supply and construction of acid storage tanks and connection to the existing operating acid plant.

Finally, the company’s Maintenance and Industrial Services division has been awarded a contract to undertake a major dragline shutdown for BHP Mitsubishi Alliance at its Saraji coal mine, located near Dysart, Queensland. The work will be completed by the end of December 2020.

Last month, Monadelphous’ latest construction and maintenance contract awards from BHP included a contract for the supply and installation of the Jimblebar Transfer Station project, and a contract for the refurbishment of Car Dumper 3 at Nelson Point, Port Hedland.