Tag Archives: Western Australia

Swick Mining continues drilling wins at home and abroad

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Swick Mining Services is celebrating a hat-trick of contract drilling wins with the Barrick Gold and Newmont Goldcorp-owned Nevada Gold Mines JV, Silver Lake Resources and Northern Star Resources.

The Australia-listed contractor has been awarded a three-year contract extension at the Nevada Gold Mines JV, with the company’s US division extending a relationship that started in 2013. The work with Silver Lake Resources involved being selected as the preferred tenderer, subject to contract execution, to provide underground diamond coring services at its Mount Monger operation, in Western Australia. And, lastly, Northern Star Resources has increased the scope of work for Swick at the Jundee gold mine, also in Western Australia, from nine to 14 full time underground diamond coring rigs.

The awards secure work for 18 rigs (eight existing and 10 additional rigs) and increases Swick’s contracted work in hand to A$353 million ($248 million), the company said.

Swick Managing Director, Kent Swick, said: “We are delighted to be deepening our relationships with existing clients and, in the case of the new work with Silver Lake, returning to a project where we have extensive experience.”

He added: “It is particularly pleasing that our international strategy is yielding significant results, with a third of our total deployed underground diamond drilling rigs now operating outside of Australia. By the end of September, we will have at least 22 rigs operating in our international operations including the USA, Portugal and Spain – all at major mines with Tier One clients.”

In Nevada with the Nevada Gold Mines JV, Swick currently operates eight rigs between the Turquoise Ridge and Cortez Hill gold mines as well as the Goldrush project, it said. As part of the contract extension, Swick will be deploying two additional rigs to these operations.

Swick undertakes underground diamond core drilling and underground RC drilling at the projects, with the contract extension securing work for 10 rigs at fixed pricing for two years, with a rise and fall applicable for the third year. In total, the Nevada Gold Mines JV produced in excess of 4 Moz of gold in 2018, more than double the next largest gold mining complex.

The contract extension, combined with the contract recently awarded to Swick at the Northern Star-owned Pogo gold mine in Alaska, will see Swick take a leading position in the US underground drilling market, it said, adding that the first four underground rigs at Pogo commenced drilling in June.

The Silver Lake Mount Monger contract is expected to be for a period of two years with a provision for a 12-month extension, Swick said. The contract will commence in August, with three rigs undertaking drilling across the Mount Monger site, namely the Daisy Milano, Cock-eyed Bob and Maxwell’s underground mines.

Swick says it worked at the Daisy Milano project for a decade from 2007 before it was awarded to another contractor in 2016. The Mount Monger operations produced 35,172 oz of gold in the March quarter.

At Jundee, meanwhile, Swick says it will steadily increase its fleet and manning from July to October to meet the increased scope. Northern Star is Swick’s largest client – with the Jundee contract Swick’s largest ever project – and will operate this expanded service under the current contract agreement.

Kent Swick said: “Once we reach 14 full time rigs at Jundee, it will represent a record number of rigs that Swick has had at any one mine, and the largest Australian underground diamond drilling program I am aware of since we have been in the underground contracting business for over 20 years.”

Pacific Energy to power up Jaguar copper-zinc mine

Base metals, Environmental, Mine operation news, Mining services, Power supply for mines, , , , , , ,

Pacific Energy’s wholly-owned KPS subsidiary has secured a new contract to supply electricity to Round Oak Minerals’ Jaguar copper-zinc mine, in Western Australia.

The Jaguar mine, around 250 km north of Kalgoorlie, was first brought into production in 2007, with, Round Oak, through CopperChem, purchasing the mine, including the existing power station, in 2018. The operations consist of underground mines and processing facilities producing copper and zinc concentrates for export.

Under the new contract, KPS will acquire the existing 12.9 MW power station (10.5 MW gas and 2.4 MW diesel) from Round Oak for a price of A$2.5 million ($1.7 million) and immediately assume responsibility for operation of the power station. Within five months of acquiring the power station, KPS intends to complete a range of optimisation and enhancement work to improve fuel efficiency to an agreed target range, optimise control systems and reach agreed KPI’s for station reliability, it said.

The contract is expected to commence following settlement in August and will run for an initial term of four years, with Round Oak having an option to extend for a further term.

James Cullen, Managing Director of the power generation specialist, said: “We are grateful for the confidence that Round Oak has placed in KPS to take over full responsibility for power supply to the Jaguar site. The key driver for Round Oak awarding the contract to KPS was to realise operating efficiencies and the KPS team looks forward to showcasing its knowhow in gas and diesel fuelled technology to deliver on this.”

Zenith Energy completes Jundee power station expansion for Northern Star

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Independent power producer, Zenith Energy has completed and commissioned its 6 MW build own and operate (BOO) power station expansion at Northern Star Resources’ Jundee gold mine, in the northern Goldfields region of Western Australia.

The 6 MW of expansion capacity at Jundee adds to the existing 19.2 MW, increasing Zenith’s BOO capacity to 25.2 MW, Zenith said. The power station comprises an upgrade to the existing facility with the installation of an added 6 MW of Jenbacher 620 Spark Ignittion gas generator technology.

The station incorporates natural gas fuelled generators, which will provide the Jundee mine with highly efficient, cost effective and clean gas fuelled power generation into the future, according to Zenith.

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.8 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and CIP process, achieving 92% recoveries. Northern Star produced 285,000 oz of gold at Jundee in its 2018 financial year.

Zenith said: “This project demonstrates the company’s ability to design, construct, install and commission expansion projects to meet our existing customers’ changing power supply requirements.”

The full commissioning of the Jundee expansion delivers a 6 MW uplift in installed BOO MW capacity in the company’s portfolio, and a corresponding uplift in revenue from the September quarter and going forward, Zenith said.

With the completion of the Jundee expansion, Zenith has established a strong track record for project delivery, with its portfolio of 219 MW of contracted BOO capacity and a total of 438 MW of total power generation capacity under control, it said.

Zenith Managing Director, Hamish Moffat, said: “We are proud to continue our partnership with Northern Star Resources at Jundee through the delivery of the Jundee Expansion Project, and now look forward to delivering additional reliable, cost effective power to support the Jundee gold mine.”

Primero starts engineering process plant for Agrimin’s Mackay SOP project

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ASX-listed Agrimin has awarded Primero Group the engineering design contract for the process plant at the Mackay potash project, in Western Australia.

With Agrimin’s process consultants at Novopro Projects having already completed the process modelling and flowsheets for the definitive feasibility study at Mackay, Primero has commenced the engineering design for the plant.

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

The engagement of Primero, a multi-disciplinary engineering group which specialises in the design, construction and commissioning of global resource projects, is on an early contractor involvement basis, with the initial awarded stage being the process plant design works.

“This engagement follows a competitive process to select a contractor with suitable experience and capabilities to undertake both the engineering design and subsequent construction of the process plant and associated site based non-process infrastructure,” Agrimin said.

The 2018 PFS outlined a 20 year project at Mackay that came with a $409 million capital cost and an average SOP grade of 8 kg/cu.m.

Bis secures four-year contract extension at Glencore-owned Murrin Murrin mine

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Bis says it has extended its haulage and site services contracts for Minara Resources at its Murrin Murrin nickel mine in Western Australia’s north-eastern Goldfields.

The multi-year extension will see Bis extend its longstanding partnership with Minara, wholly-owned by Glencore, where it has been delivering a range of services at Murrin Murrin since the operation began in 1998.

Bis’ services at Murrin Murrin include haulage and haul and road maintenance services, calcrete services, and bulk logistics services. The Murrin Murrin site also recently hosted Bis’ new innovative haul truck, Rexx, as part of its trials in working mines across Western Australia.

Bis Chief Operating Officer, Michael Porter, said: “We are proud to have been part of the Minara operations for over 20 years, working in collaboration with Minara to deliver safe and innovative solutions that add value to their operation. We look forward to continuing our successful relationship with our colleagues at Murrin Murrin.”

Mitchell Services enters new drill and blast territory at Kirkalocka

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Australia-listed Mitchell Services has entered the drill and blast production drilling market with the award of a new contract at Adaman Resources’ Kirklalocka gold project in Western Australia.

The circa-A$33 million ($23 million), five-year contract, with mining services provider SMS Innovative Mining Pty, will see Mitchell initially deploy two rigs to service the drill and blast contract with a third rig to be provided in late 2019.

Mitchell Services CEO, Andrew Elf, said: “The multi-year, multi-rig contract award further strengthens the quality of our revenue base and will result in the company now playing a direct role in the production of the mine. This is a service offering that we are strategically focused on growing and the award of this contract provides an ideal platform to do so. It also continues to expand our footprint within Western Australia adding both service and geographic diversification.”

Mitchell Group Holdings, an entity associated with Mitchell Services Executive Chairman, Nathan Mitchell, owns a 33% stake in the Kirklalocka gold project, with SMS Mining Services owning another 33%.

Back in October, SMS Mining Services secured preferred contractor status for Kirkalocka, with the four-year contract consisting of open-pit mining services including load and haul, drill and blast, and mine development. SMS said at the time drilling was underway to extend the mine life beyond the current six years.

Since then, MACA has won a contract to install a new SAG mill and refurbish an existing mineral processing plant at Kirkalocka.

WA government, EPA approves BHP’s strategic 50- to 100-year Pilbara mining plan

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The Western Australia Government has approved a 50- to 100-year strategic mining proposal for the Pilbara by BHP, which outlines bold plans for new and existing mines, the state said.

BHP’s Pilbara Expansion Strategic Proposal details a cumulative picture of the miner’s planned and potential operations across the Pilbara, including mining operations, rail, storage areas, dams and associated mine infrastructure.

It mentioned new potential mining operations at Caramulla, Coondiner, Gurinbiddy, Jinidi, Marillana, Mindy, Ministers North, Mudlark, Munjina/Upper Marillana, Ophthalmia/Prairie Down, Rocklea, Roy Hill and Tandanya; alongside future expansions of existing mining operations at Jimblebar, Mining Area C, Newman and Yandi (pictured).

This type of “strategic proposal”, which the Environmental Protection Authority (EPA) has approved with conditions, “helps reduce red and green tape, allowing the EPA to consider the cumulative impacts of future proposals, rather than assessing impacts on a case-by-case basis, as individual mines or developments are proposed”, according to the government.

The EPA assessed the impacts to flora and vegetation, fauna, water quality and quantity, air quality as well as social surrounds, with the ministerial statement for BHP’s strategic proposal including conditions that may be applied to each development, including environmental management plans, a cultural heritage management plan, a mine closure plan and offsets through contributions to the Pilbara Environmental Offsets Fund where significant residual impacts remain.

“BHP is required to refer future individual proposals outlined in the ministerial statement to the EPA to determine if they meet the high environmental standards set by the strategic assessment,” the government said.

WA Premier, Mark McGowan, said BHP’s plan has the potential to deliver tens of thousands of jobs for Western Australians.

“We expect this Australian-first plan will reduce environmental approval times by up to 50%, while maintaining the highest environmental standards,” he said.

“Industry has been crying out for this type of plan. It recognises the need to reduce unnecessary ‘green tape’ to increase investor confidence, and pave the way for more jobs. It is another sign our economy is improving with the major miner taking a long-term view of its proposals in the state.”

Environment Minister, Stephen Dawson, meanwhile, said: “The Pilbara region holds immense environmental value and a key focus of the EPA assessment was to ensure the proposal did not significantly impact on important regional environmental values, including Karijini National Park and Fortescue Marsh.

“Strategic proposals allow the EPA to take a bigger picture view of the potential environmental impacts the proposals may have, considering the cumulative impacts rather than on a case-by-case basis, as individual mines or developments are proposed.”

Kalium Lakes draws a liner under Beyondie sulphate of potash ponds

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Jaylon Environmental Systems is to supply and install the evaporation pond liner at Kalium Lakes’ Beyondie sulphate of potash project (BSOPP), in Western Australia, as part of a contract agreed between the two parties.

The contract includes the supply, management of delivery and installation of 1 mm HDPE liner covering a total evaporation area of approximately 400 ha for the Stage 1 BSOPP 90,000 t/y sulphate of potash (SOP) facility.

The BSOPP project aims to commence production at 82,000 t/y of SOP in 2020, before ramping up to 164,000 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 said.

Earlier this month, Kalium Lakes secured gas supply and transport for Beyondie SOP project following deals with APA Group and Shell Energy Australia.

In 2017, Jaylon successfully completed the supply and installation of the liner for the BSOPP’s 10 ha pilot scale ponds, according to Kalium Lakes. “Jaylon has now submitted the most competitive and compliant offer for the full project works, resulting in this A$15 million ($10.3 million) major contract award,” the company said.

The scope under this contract has already commenced, with an initial order of A$1 million worth of liner placed in May 2019 as part of early works and first deliveries to site already completed. The balance of the contract scope will commence following a final investment decision (FID) by Kalium Lakes, due shortly.

Kalium Lakes Chief Development Officer, Rudolph van Niekerk, said: “The use of Jaylon during the pilot scale trials continued to validate Kalium Lakes’ de-risking strategy, where we work collaboratively to develop bespoke, low cost and fit for purpose solutions for the BSOPP.

“The use of an evaporation pond liner has been a much-debated topic. For Kalium Lakes, the cost of the supply and installation of the liner represents less than 7% of the project’s total capital cost but results in an increased SOP process recovery of more than 15%.

“Our lined pond design provides a pond system constructed on trafficable, off lake surfaces, allowing for harvesting by heavy machinery months, if not years, ahead of the alternatives.

“With lined ponds there is virtually no leakage of the high value concentrated brines, delivering excellent recovery rates, a smaller pond area, less brine pumping, low operating costs and an extended mine life. It simply is a ‘no brainer’,” he said.

Fortescue breaks ground at $1.275 billion Eliwana iron ore development

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Fortescue Metals Group says it has officially broken ground on the Eliwana iron ore mine and rail project in the Pilbara of Western Australia.

FMG Founder and Chairman, Andrew Forrest, was today joined by Mark McGowan, Premier of Western Australia, FMG CEO, Elizabeth Gaines, and the company’s core leadership team, for the official sod turning.

The $1.275 billion project includes the construction of 143 km of rail, a new 30 Mt/y dry ore processing facility (OPF) and infrastructure. First ore on train is expected in December 2020, the company says.

FMG says contracts to the value of A$330 million ($232 million) to date have been awarded to more than 250 Australian business entities as part of the Eliwana development, of which 80% are Western Australia-owned businesses. As further approvals are progressed, it is expected over A$500 million in additional contracts will be awarded by the end of 2019, FMG said.

Contract recipients include BGC Contracting for bulk earthworks and roads, NRW Holdings, also for bulk earthworks, and SIMPEC for electrical, communications and dry fire systems testing.

“Eliwana underpins the sustainable production of West Pilbara Fines and provides the flexibility for Fortescue to deliver products at greater than 60% Fe grade,” FMG said. “The development will utilise the latest technology, autonomous trucks and design efficiency, further cementing Fortescue’s world leading use of innovation across its mining operations.”

Forrest said: “This is a proud day for Fortescue as we celebrate the largest project since the Kings Valley mine in 2014.

“Since Fortescue was founded 16 years ago, we have held community and family at our core and continued to deliver on our commitment to be the safest, lowest cost company. Eliwana is the next great step into the Western Hub, enhancing our profitability and extending our mine life.”

The project will generate up to 1,900 jobs during construction and 500 full-time site positions once operational, according to Forrest.

Gaines said: “The Eliwana project will build on Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara. Eliwana is core to the next phase of development in Fortescue’s world class, innovative operations. The project will see us maintain our low-cost status, provide us with greater flexibility to deliver on our integrated operations and marketing strategy and, when combined with the Iron Bridge Magnetite development, it will increase Fortescue’s average product grade and provide the ability to deliver the majority of our products at greater than 60% Fe, consistent with our long term goal.”

Civeo captures Western Australia mining market share with Action buy

Mining mergers and acquisitions, Mining services, , , , ,

Civeo Corp says it has acquired Action Industrial Catering, a provider of catering and managed services to the remote mining industry in Western Australia.

Civeo, a provider of hospitality services with prominent market positions in the Canada oil sands and the Australia natural resource regions, said: “The acquisition significantly enhances Civeo Australia’s service offering and geographic footprint by providing an entry point into the growing integrated services opportunities in the Western Australian remote mining market.”

Established in 1995, Action is based in Perth, Australia, and currently operates around 900,000 room nights per year for iron ore, gold, nickel and battery mineral producers. Among its contracts is an agreement with Fortescue Metals Group for catering and support services for the miner’s 1,850 room Kangi Village, based within the Solomon Hub operations in the Pilbara of Western Australia (pictured).

“This acquisition brings contract visibility and strong relationships with top tier customers in Western Australia who are poised to benefit significantly from market trends, including expansionary projects in Western Australian iron ore and increasing global demand for lithium-ion batteries,” Civeo said.

Bradley J Dodson, Civeo’s President and Chief Executive Officer, said: “This acquisition significantly bolsters our Australian segment, providing a strategic foothold in the large integrated services and Western Australian markets, further strengthening Civeo’s market position as an integrated service provider across Australia.”

He continued: “Our acquisition of Action underlines our focus on pursuing growth opportunities that fit within our core competencies and strategic direction, while further enabling organic growth opportunities. Importantly, we are well-positioned to continue to capitalise on opportunities to grow our catering and managed services footprint in Australia as we maintain our commitment to top-tier service for all of our customers.”