Tag Archives: Western Australia

Pacific Energy to expand Saracen’s Carosue Dam dual-fuelled power station

Mine operation news, Mining services, Power supply for mines, Precious metals, , , , ,

Pacific Energy’s KPS subsidiary has signed contract variations for two power generation agreements with Saracen Mineral Holdings that will see the dual-fuelled power station at the Carosue Dam operation, in Western Australia, expanded at the same time as work is extended at the gold miner’s gas-fired power facility at the Thunderbox operation.

The Carosue Dam expansion will occur in two stages over the next 12 months, initially by 2 MW and subsequently by another 6 MW, to a total of 26 MW. The contract term will also be extended from January 2023 to August 2024, Pacific Energy said.

Carosue Dam will soon undergo a mill expansion from 2.4 Mt/y to 3.2 Mt/y with feed coming from both underground and open-pit mines.

The contract for the 17 MW gas fired power station at the Thunderbox site will be extended from November 2020 to August 2024, meanwhile.

Pacific Energy’s total contracted capacity now stands at 381 MW and the weighted average remaining contract duration is approximately four years, the company noted.

Pacific Energy’s Managing Director, James Cullen, said: “Saracen is a key and substantial customer for us, representing around 12% of build-own-operate revenues, so these awards are very material and important to us. We look forward to continuing the sound relationship that has been built over the years and completing the installations of additional capacity at Carosue Dam.”

DRA graduates from FEED to plant EPCM at Yangibana rare earths project

Energy minerals, Mineral project development, Mining services, , , , , , , , ,

DRA Global’s Pacific division has been rewarded for previous work on Hastings Technology Metals’ Yangibana rare earths project, in Western Australia, with the company now receiving the engineering, procurement, construction and management (EPCM) contract for the project’s processing plant.

The EPCM contract, the single largest dollar value contract associated with the project, will cover all aspects of the design and construction of the processing facility and associated non-process infrastructure capable of producing 15,000 t/y of mixed rare earths carbonate (MREC), Hastings said.

The appointment followed a series of value engineering studies and the front end engineering design (FEED) completed by DRA Pacific during 2018 and 2019. Works directed under the EPCM contract have an estimated value of around A$350 million ($241 million).

The key component of the contract terms is the comprehensive performance guarantee linked to ore throughput for the entire process flowsheet at Yangibana, in Western Australia, according to Hastings.

“The appointment of DRA Pacific as the EPCM contractor for Hastings represents another critical milestone for the project, reinforcing that Yangibana is execution ready,” Hastings said.

“Choosing DRA Pacific was the logical choice given the already close working relationship built up over the last 15 months, and the experience in rare earths processing plant design that DRA Pacific bring to the table.”

Charles Lew, Hastings Executive Chairman, said DRA’s knowledge and experience in developing successful minerals processing projects made them the “ideal candidate” to manage the construction of the project.

He added: “The award of the EPCM contract moves the Yangibana rare earths project firmly into development phase to commence project execution and progress to production of our mixed rare earth carbonate by 2022.”

Andrew Naude, Chief Executive Officer of DRA Global, said: “Awarding the execution of this internationally important rare earths project on the Australian Continent to DRA is testament to DRA’s position as the preferred technical partner for projects of this nature.

“We have put together a very strong team for the delivery of the project and our Project Manager has significant experience in delivering successful projects.”

The EPCM contract is a fundamental requirement of Hastings’ debt providers and hence is pivotal to the project financing process, Hastings said. A definitive feasibility study in 2017, based on a 5.15 Mt reserve, detailed a production rate of 1 Mt/y to produce up to 15,000 t/y of mixed rare earths carbonate.

FMG to lead from the front in Pilbara renewable energy pursuit

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Fortescue Metals Group (FMG) has signed an agreement with Alinta Energy that will see up to 100% of daytime stationary energy requirements at its Chichester Hub iron ore operations, in the Pilbara of Western Australia, powered by renewable energy.

The Chichester Solar Gas Hybrid project will see the construction of a 60 MW solar photovoltaic generation facility at the Chichester Hub, comprising Fortescue’s Christmas Creek and Cloudbreak iron ore mining operations.

In addition, an approximately 60-km transmission line linking the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and a 35 MW battery facility will be constructed, with completion due mid-2021.

FMG said: “Once completed, up to 100% of daytime stationary energy requirements at the Chichester Hub will be provided by solar generation, with the remaining power requirements to be met through the integrated battery storage and gas power station facilities.”

The project is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Reliable and competitive energy generation remains an important consideration for the mining sector in Western Australia and as a significant consumer of energy, we continue to identify opportunities that have the potential to lower our costs while also improving our carbon footprint.

“This landmark project is a first on this scale for the Pilbara and will reduce carbon emissions from stationary generation by around 40% at Fortescue’s Christmas Creek and Cloudbreak mining operations, while driving long-term sustainable cost reductions to maintain Fortescue’s global cost leadership position.”

Gaines added that the agreement with Alinta Energy represented a further step in the creation of Fortescue’s Pilbara Energy Connect project, which builds on the company’s previous energy initiatives, including the construction of the Fortescue River Gas Pipeline, the conversion of the Solomon Power Station from diesel to gas generation, as well as a partnership agreement with the Commonwealth Scientific and Industrial Research Organisation to develop and commercialise hydrogen technologies.

As part of the agreement, FMG will invest an estimated $250 million in energy transmission infrastructure to complete the integration of Fortescue’s iron ore operations in the Pilbara into an efficient energy network.

Alinta Energy Managing Director and Chief Executive Officer, Jeff Dimery, said: “We’d like to thank Fortescue and our Chichester Hub project partners for helping to make the company’s long-held vision for a cleaner and more connected energy supply for the Pilbara a reality.

“There’s a lot to be proud of in this project. Working together, we are on the cusp of demonstrating that renewables can drive Australia’s economic powerhouses forward–even for remote and complex industrial applications.”

Alinta Energy will receive federal funding of A$24.2 million ($16.5 million) from the Australian Renewable Energy Agency (ARENA) and A$90 million from the Northern Australia Infrastructure Facility (NAIF), upon satisfaction of standard conditions.

The NAIF loan remains subject to ratification from the Western Australian Government.

NAIF Chief Executive Officer, Laurie Walker said: “NAIF’s A$90 million loan for this project will help provide low emission renewable energy generation for large off-grid customers and paves the way towards the creation of a more interconnected regional energy grid in the Pilbara.

“The project innovatively combines solar and gas fired power to compensate for the variability of solar sourced energy. This investment by NAIF offers the opportunity to make a long-term difference to the Pilbara.”

ARENA Chief Executive Officer, Darren Miller, said: “The project could unlock further investment in renewable energy in the mining sector and other remote and energy intensive operations.

“Alinta’s project will demonstrate how renewable energy solutions can deliver critical energy requirements for major mining operations and help reduce emissions. This will also show how interconnection of loads and different generation and storage -including solar, gas and battery storage -can provide secure and reliable electricity.”

MACA on the road again at Iron Bridge magnetite project

Mineral project development, Mining services, Steel and iron ore, , , , , ,

MACA says it has been awarded a bulk earthworks contract at the Iron Bridge magnetite project, a joint venture development in the Pilbara of Western Australia between Fortescue Metals and Formosa Steel IB.

The contract is for access roads and infrastructure at the $2.6 billion project, 145 km south of Port Hedland.

MACA said this work is expected to generate revenue of A$26 million ($17.6 million) for the company, with the scope including general earthworks for camp expansion, construction of 26 km of mine access road, construction of the explosive facility and access road, and a further 23 km of road upgrade works.

MACA, which has already started work on the contract, becomes the latest mining equipment, technology and services contract to find work at Iron Bridge, which is expected to deliver 22 Mt/y of high-grade 67% Fe concentrate production following start up in 2022.

Just last month, Weir Minerals was awarded its largest ever individual mining order from the project.

 

SIMPEC to help with plant handover at Tianqi Lithium’s Kwinana plant

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SIMPEC has added to its existing scope of works at the Tianqi Lithium-owned lithium hydroxide process plant (LHPP1) in Kwinana, Western Australia, with a new A$5 million ($3.34 million) contract to carry out structural, mechanical, piping, and electrical and instrumentation work at the operation.

This work, which comes on top of the pyromet piping installation contract the WestStar Industrial subsidiary was awarded by lead contractor MSP Engineering in 2018, will assist Tianqi with the handover of the plant to the operations team.

SIMPEC Managing Director, Mark Dimasi, said: “This award is a true reflection of our team’s performance to date on the LHPP1 project. An outstanding effort by everyone involved. I personally would like to thank all the MSP Engineering personnel for supporting our team over the past 10 months and Tianqi Lithium Kwinana for backing the incumbent SIMPEC site team.”

This new contract builds on previously announced extensions during the company’s 2020 financial year and brings contract awards received during the first half of this period to circa-A$23 million.

Kerman to work on Wyndham Port facility for Agrimin Mackay potash project

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Having recently selected a suitable export site at Wyndham Port for its Mackay potash project in Western Australia, Agrimin has awarded Kerman Contracting the engineering design contract for the facility.

The Wyndham port facility is planned to include a truck unloading hopper, covered storage sheds, granulation equipment, workshops and offices, with Kerman selected on the basis that it has suitable experience and capabilities to undertake both the engineering design and subsequent construction of the above aspects of the facility.

Agrimin said it intends to engage a separate contractor for the design and construction of the associated barge loading facility, while geotechnical and topographic work programs had been completed at the site, with Kerman having commenced the engineering design for the definitive feasibility study.

A prefeasibility study for the Mackay project, 785 km south of the Port of Wyndham, envisaged the process plant having a capacity of 426,000 t/y of sulphate of potash as a dry granular product, with the same study assuming a product mix of 50% granular and 50% standard product.

Kerman, earlier this month, was awarded a contract by Albemarle Lithium on the greenfield lithium hydroxide production plant in Kemerton, Western Australia.

Kalium Lakes fired up at Beyondie potash project

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Kalium Lakes says it has awarded a contract to design, supply, install and commission a 7.5 MW gas fired power station for its Beyondie sulphate of potash project (BSOPP), in Western Australia, to Clarke Energy.

The scope of the contract includes three Jenbacher 616, 2.5 MW gas reciprocating engines, a Kohler KV440C2 black start generator, high and low voltage switch rooms, auxiliary equipment and the power station controls system, according to Kalium Lakes.

Gas for power generation will be supplied from Kalium Lakes’ owned and operated gas lateral that will also be built as part of the project for the stage one 90,000 t/y SOP production capacity.

The project aims to commence production at 90,000 t/y of SOP, before ramping up to 180,000 t/y of SOP for domestic and international sale. An initial mine life of between 30-50 years is anticipated for a project designed to be a low cost, long life and high margin producer, Kalium Lakes says.

According to the potash developer, the scope under this contract has already commenced with early works to de-risk the project schedule and enable early contractor involvement for optimal integration with the power generation requirements of the project.

Clarke Energy has also provided several smaller, diesel generators for the project from its signature Kohler brand, which will provide power to the village and the remote brine transfer pump stations, Kalium Lakes said.

Kalium Lakes’ Chief Development Officer, Rudolph van Niekerk, said: “Not only has Clarke Energy worked with us to find a technically viable solution for our project, it has gone the extra mile to also achieve the WHS Accreditation which is a requirement for this contract under Kalium Lakes’ funding from the Northern Australia Infrastructure Facility.”

Earlier this month, Kalium Lakes’ board made the final investment decision on the project, allowing development to move forward.

Kerman to work on another lithium project in Western Australia

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Kerman Contracting says it has been awarded a contract by Albemarle Lithium on the greenfield lithium hydroxide production plant in Kemerton, Western Australia.

The scope of this project comprises two separable portions – one includes the design and construction of the pyromet buildings, such as the spodumene storage building, the acidified ore handling building and the tailings building. The other separable portion includes the sodium sulphate packaging and storage warehouse, sodium sulphate pallet storage building, lithium hydroxide packaging and storage warehouse and lithium hydroxide pallet storage building as well as the boiler and air compressor buildings.

Recently Kerman has completed projects at Talison Lithium’s chemical grade plant in Greenbushes and the Tianqi lithium hydroxide processing plant in Kwinana, both in Western Australia

“We are excited about being part of yet another project in the lithium market,” said Kerman’s Managing Director Chris Kerman.

Back in August, engineering company Monadelphous Group was awarded a major construction contract at the project, which will initially consist of three production trains, each producing 20,000 t/y of lithium hydroxide, with a potential expansion to five trains that will see production increase to 100,000 t/y by around 2025. Production is expected to start production in 2021.

Pentium Hydro wins drilling and waterwell construction contract at Tropicana gold mine

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Vysarn’s wholly-owned subsidiary, Pentium Hydro, has confirmed another major mining contract, this time with the AngloGold Ashanti and Independence Group joint venture Tropicana gold mine in Western Australia.

Pentium, which was only acquired from Ausdrill last month, is to provide dual rotary drilling and waterwell construction services at the mine.

Earlier this month, Pentium announced a purchase order worth up to A$800,000 ($549,866) with Fortescue Metals Group at the Cloudbreak iron ore operation.

Under the contract, Pentium will drill and construct de-watering at various locations at the Tropicana mine site including the bore fields, tailings storage facility and open pit areas.

Pentium has commenced procurement of the long lead time materials with mobilisation of the drill rig and auxiliary plant to be completed by early October, Vysarn said. The scope of work is expected to commence shortly thereafter and be complete by mid December 2019.

Pentium Managing Director, Sheldon Burt, said: “This is the fourth rig mobilised by the company in less than a month since acquiring the hydrogeological drilling assets from Ausdrill and confirms the board’s confidence in the underlying demand for the company’s assets and services. We are delighted to be working for a company of AngloGold Ashanti’s standing.”

Tropicana is owned 70% by AngloGold (manager) and 30% by Independence Group. The open-pit operation poured first gold in September 2013.

AusGroup subsidiary to work on Newmont Goldcorp’s Boddington gold mine

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AusGroup’s MAS Australasia subsidiary has been awarded a five year contract to carry out maintenance at Newmont Goldcorp’s Boddington gold mine in Western Australia.

MAS will use the existing local presence and infrastructure it has in the southwest Of Western Australia and provide specialist mechanical, scaffolding and rope access maintenance services to the mine, AusGroup said.

Additionally, the scope requires MAS to provide a range of trade-qualified technicians to support Newmont Goldcorp’s mechanical maintenance and general shutdown services over the contract term.

Shane Kimpton, CEO and Managing Director, said: “This contract cements MAS’ reputation as a bespoke maintenance services provider to a diverse portfolio of customers.

“Our value proposition and service offering extends beyond LNG and construction projects and this is an excellent example of where MAS can bring innovation and significant value.”

Boddington produced 709,000 oz of gold for Newmont Goldcorp last year and is currently undergoing a stripping campaign in the South Pit in order to reach higher-grade ore.