Tag Archives: Western Australia

SIMPEC starts FY2020 with more WA contract extensions

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SIMPEC has continued to add to its structural, mechanical and piping (SMP), and electrical and instrumentation (E&I) work, in Western Australia, bolting on another A$5 million ($3.49 million) to its current list of contracts.

Having been awarded contracts totalling A$50 million in its 2019 financial year to end-June, the WestStar subsidiary has started its 2020 financial year strongly.

Although the company didn’t mention the specific contracts it had won extensions on, SIMPEC has previously been awarded work involving pyromet piping installation at the lithium hydroxide process plant (LHPP1) at Tianqi Lithium’s Kwinana project (pictured), in addition to installing electrical and communications systems at the Rio Tinto’s West Angelas iron ore mine construction camp.

The latest news come less than two weeks since SIMPEC registered A$2.5 million of extensions to previous contracts.

SIMPEC Managing Director, Mark Dimasi, said: “Having delivered a strong pipeline of contract awards over the past year, SIMPEC continues to consolidate its position and build its credentials on major projects.”

The company added: “SIMPEC continues to tender strongly for new work and expects outcomes from these tendering activities in due course.”

Kalium Lakes secures gas supply and transport for Beyondie SOP project

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Kalium Lakes has secured key contracts with APA Group and Shell Energy Australia for the transportation and supply of gas to meet the requirements of its Beyondie sulphate of potash project (BSOPP), in Western Australia.

These contracts will provide 1 Tj/d of gas to produce 90,000 t/y of SOP and also allows for expansion to support increased production and production of magnesium by-products, according to Kalium Lakes.

Shell Energy’s gas will be used at the BSOPP site for power generation, steam generation and product drying during operations, while APA Group’s 88.2%-owned Goldfields Gas Pipeline (GGP) will transport and deliver gas via a new, purpose built metering and connection facility. Early works have commenced with APA on the design of the new metering facility.

These contracts – and others, such as ones associated with engineering, procurement, construction management and commissioning – are subject to a final investment decision (due shortly) and subsequent notice from Kalium Lakes that it is ready to commence commissioning and production operations, the company said.

Kalium Lakes’ Chief Development Officer, Rudolph van Niekerk, said: “The close proximity and ease of access to the GGP offers significant cost advantages to the BSOPP, which has allowed Kalium Lakes to own and operate its own gas pipeline, spur and gas fired power station with funding provided by the Northern Australia Infrastructure Facility.

“Importantly, the award of the gas supply and gas transport operations contracts to Shell and APA are also within the budget allocated in the BFS and FEED outcomes. We can now also confirm that approximately 50% of our FOB cash operating costs have now been locked in, again on budget.”

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, it said.

Gold Road and Gold Fields achieve Gruyere first pour

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Gold Road Resources and Gold Fields have announced the first gold bar pour from the jointly-owned Gruyere gold project in Western Australia.

The three doŕe gold bars totalling an estimated 1,139 oz were produced from the carbon‐in‐leach (CIL) and elution circuits, with the inaugural pour in line with the June quarter estimates. The companies noted that commissioning of the less complex gravity circuit was in progress.

Gold Fields Executive Vice President, Stuart Mathews, said: “The pouring of the first gold at a global Tier 1 gold mine like Gruyere is a significant achievement. Gruyere is a tremendous asset based on a world‐class orebody and a forecast long mine life. The Gruyere JV’s focus now shifts to the safe and successful ramp‐up to nameplate capacity to allow us to deliver full value to all stakeholders.

“I would like to acknowledge the outstanding safety performance of the construction team which achieved 3 million construction hours without a lost time injury.”

Gold Road Managing Director and CEO, Duncan Gibbs, said the gold pour is a significant milestone given the Gold Road team discovered the Gruyere orebody less than six years ago.

“Our work is far from done – we remain committed to exploring the highly prospective Yamarna Greenstone Belt to unlock the potential through the discovery of more resource ounces for Gruyere and new discoveries that could be developed as stand‐alone gold mines. I want to thank the entire Gold Road team and our Gruyere JV partner, Gold Fields, for the safe and successful delivery of first gold at Gruyere.”

With the delivery of first gold bars, the focus now turns to commissioning of the final components of the process plant, in particular the ball mill, which is anticipated to be completed early in the September quarter. Commissioning of the gravity gold recovery circuit is in progress and follows reinstallation of pipe work required for the safe operation of the circuit, the companies said. Gold production will continue until the ball mill is fully operational and is integrated into the circuit.

During the commissioning and initial stages of ramp‐up, lower grade stockpiled ore will be processed to reduce gold losses associated with lower recoveries anticipated as the plant operations are stabilised.

Commencement of the operation of the ball mill will mark the start of an anticipated ramp‐up period of six to seven months. The Gruyere JV forecasts attaining commercial production mid‐way through the ramp‐up period, with anticipated gold production for 2019 to be between 75,000-100,000 oz.

The final forecast capital cost estimate remains in line with the previously announced A$621 million ($428 million).

Gruyere’s life‐of‐mine average annual production is forecast at approximately 300,000 oz/y at average all‐in sustaining Costs over a 12‐year life of approximately A$1,025/oz.

Fortescue completes tug fleet and towage infrastructure at Herb Elliott Port

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Fortescue Metals Group has celebrated the completion of its fleet of tugs and towage infrastructure at the company’s Herb Elliott Port, in Port Hedland, Western Australia.

Founder and Chairman, Andrew Forrest (pictured on the left), together with Chief Executive Officer, Elizabeth Gaines (pictured on the right), and the core leadership team, were joined by local politicians and members of the Port Hedland community to celebrate the milestone ahead of tug operations commencing in July.

Fortescue has procured and constructed six tugs and leased a further three tugs, including six Advanced Rotor Tugs 85-32W, which were constructed by Damen Shipyards at the Song Cam and Damen Song Cam shipyards, in Vietnam, it said. The tugs will be based at the new nine berth tug and harbour facility, located in the vicinity of Fortescue’s berths one to three at Anderson Point.

Forrest said: “As Australia’s economic and industrial gateway to Asia, the port of Port Hedland is the largest bulk export port in the world. It is an economic powerhouse of our country generating countless jobs and businesses directly across the nation and supporting the standard of living of us all.

“Since Fortescue was founded, we have set ourselves the toughest stretch targets we could. We aimed to develop the world’s most advanced vertically integrated bulk operations infrastructure, and to seamlessly link this with our core exploration, metallurgical and mining operations.

“Our aim was to develop an integrated world leading system to deliver critical ores that would build the economies of nations. The strategic decisions made by the Board to build our fleet of ore carriers and Fortescue owned and operated towage capability mark the critical completion of this part of Fortescue’s journey.”

Gaines added: “Fortescue operates the most efficient bulk port operation in Australia and the towage fleet represents the final element in our supply chain, with our innovative new tug fleet able to provide safe and reliable towage services and additional towage capacity for all Port Hedland users. The tug fleet and new facilities will maximise the efficiencies of our operation and provide long-term sustainable towage services crucial to meeting the demands of our customers.

“I would like to thank the entire Fortescue team for their work to bring us to the point of operational readiness, as well as the Pilbara Ports Authority, Damen Song Cam Shipyard, who constructed the vessels, and KOTUG and Westug Pty Ltd, who will manage the towage operations.”

Vossloh to keep Rio Tinto’s Koodaideri iron ore plans on track

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Vossloh Tie Technologies says it has won its first major order in Australia for the delivery of concrete ties for Rio Tinto’s in-development Koodaideri iron ore project in the Pilbara of Western Australia.

The production and supply of the ties will be performed by Vossloh’s Australian subsidiary, Austrak Pty Ltd, which was acquired in late-2018. The order encompasses approximately 280,000 concrete ties, expected to be delivered in 2020.

Koodaideri will include construction of an additional rail line to connect the new mine to Rio Tinto’s existing network. This is where Vossloh’s concrete crossties come in, providing improved track surface, alignment and gauge holding performance; strong, stable track structures to support high speed and heavy haul rail applications; smooth running surface to lower overall costs by increasing rail life and reducing locomotive fuel consumption; and longer lifecycles by providing exceptional durability and resistance to weathering and corrosion, according to the company.

Production at the $2.6 billion Phase 1 Koodaideri project is planned to start in late 2021, before ramping up to the nameplate 43 Mt/y capacity.

Austrak will perform the deliveries from a factory in Western Australia, which will also serve as a production site for further upcoming mining projects in the Pilbara region, Vossloh said. This will provide the potential to offer further growth opportunities for the company in Australia.

Andreas Busemann, Chief Executive Officer of Vossloh AG, said: “We are excited to see that our recent acquisition Austrak succeeded in this tender, contributing substantial value to Vossloh shortly after acquisition. This perfectly underlines the company’s strong position in Australia’s concrete tie market and once again confirms Vossloh’s outlook for the 2020 fiscal year, seeing an increase in sales and profitability.”

Gold Fields goes for low-carbon energy solution at Agnew gold mine in Australia

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Gold Fields says its Agnew gold mine, in Western Australia, will become one of Australia’s first mining operations to be predominantly powered by renewable and low-carbon energy following a deal with global energy group EDL.

Gold Fields and EDL have agreed on a A$112 million ($78 million) investment in what the gold miner says is a “world-leading energy microgrid combining wind, solar, gas and battery storage”.

The Agnew mine consists of two underground complexes and one processing plant, with a capacity of 1.3 Mt/y consisting of a three-stage crushing circuit, two-stage milling circuit, gravity circuit and carbon-in-pulp circuit.

The microgrid will be owned and operated by EDL, which will recoup its investment via a 10-year electricity supply agreement with Agnew.

The project, which is already under construction, has the backing of the Australian Government with the Australian Renewable Energy Agency (ARENA) contributing a recoupable A$13.5 million to its construction, according to Gold Fields.

The Agnew microgrid is initially forecast to provide 55-60% of the mine’s energy needs, with potential to meet almost all energy requirements at certain times, Gold Fields said. The Agnew microgrid will consist of five wind turbines delivering 18 MW of power, a 10,000-panel solar farm contributing 4 MW, a 13 MW/4 MWh battery energy storage system, and a 16 MW gas engine power station to underpin supply when required.

EDL said stage one consists of a new off-grid 23 MW power station incorporating 16 MW gas and 3 MW diesel generation and 4 MW photovoltaic solar, which is on track for completion in mid-2019. Stage two includes 18 MW wind generation, a 13 MW battery and an advanced micro-grid control system, with construction recently started and due for completion in 2020.

The hybrid microgrid at Agnew follows the announcement of a microgrid at Gold Fields’ Granny Smith mine, featuring 20,000 solar panels and a 2 MW/1 MWh battery system planned for completion in the December quarter.

Gold Fields Australia Executive Vice President, Stuart Mathews, said the Agnew hybrid microgrid project reflects the company’s strategic objective to strengthen energy security, optimise energy costs and reduce its carbon footprint through innovation and the adoption of new technologies.

“The ARENA contribution supports and encourages our efforts. We are making staged investments across our mines in Western Australia to significantly ramp up the innovative use of renewables to meet our dynamic and growing load requirements,” Mathews said.

The funding is part of ARENA’s Advancing Renewables Programme. ARENA CEO, Darren Miller, said the project marks a growing shift in the mining sector’s thinking around powering mine sites.

“The project Gold Fields is undertaking will provide a blueprint for other companies to deploy similar off-grid energy solutions and demonstrate a pathway for commercialisation, helping to decarbonise the mining and resources sector,” Miller said.

Gold Fields says it is embracing innovation and technology across all levels of its mining operations and Mathews said this also extended to its approach to power supply and demand management.

“At Agnew, we will be using instrumentation to detect approaching cloud cover for solar and, potentially in the future, detect changes in wind velocity. Based on this data, the gas power station will have forward-looking systems in place to schedule gas generators in response to forecast changes in the renewable energy supply,” he said.

EDL CEO, James Harman, said the company has seen increasing momentum towards hybrid energy solutions, particularly in remote, off-grid locations. “EDL is pleased to be an active contributor to Australia’s transition to sustainable energy,” Harman said. “Our knowledge and experience from our successful hybrid renewable projects will enable us to provide Agnew with greater than 50% renewable energy over the long term, without compromising power quality or reliability.”

Mathews said: “The configuration of Agnew’s hybrid solution is a first for Gold Fields and is an excellent example of using innovation and technology to improve efficiencies and lower costs. We are fast sharing lessons from this project with our other regions, as part of our global strategic initiatives to improve our security of supply and reduce carbon emissions.”

Gold Fields is the third largest gold producer in Australia. It currently owns and operates three mines in Western Australia and is completing the construction of a fourth, Gruyere, in joint venture with Gold Road Resources.

Commercial launch for CSIRO’s ‘Going for Gold’ process technology

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On the back of successful industry trials and the first gold pour last year, Australia’s national science agency, CSIRO, says it will transfer its ‘Going for Gold’ process technology to Australian company, Clean Mining Ltd.

The alternative gold recovery process technology, which dispenses with toxic cyanide and mercury currently used in most gold production processes worldwide, could open the door for Australian and international gold miners and end users to capitalise on demand for sustainable processes and products, according to CSIRO Research Program Leader, Dr Chris Vernon.

“Cyanide is used in about 75% of global gold production, and while the industry works to manage the associated risks, there have been recent toxic spills overseas that have caused great concern to communities,” Dr Vernon said.

“Developing an alternative process, which eliminates hazardous chemicals while maximising gold recovery, meets industry and consumer demands for more sustainably-produced gold.”

The CSIRO-developed ‘Going for Gold’ process replaces cyanide with a reagent, known as thiosulphate, creating a relatively cost-effective, non-toxic and safe alternative to conventional cyanide-based gold recovery process, according to CSIRO.

Clean Mining will deliver the new technology solution to a global market of gold producers, offering technology products and licences as well as turn-key processing plant options, plus equipment and product support throughout the mine life.

Clean Mining Managing Director, Jeff McCulloch, says the technology is suitable for new greenfield mines, locations where cyanide cannot be used or is banned, as well as in existing mines looking to upgrade and transition to the new technology.

“This technology provides gold miners with an opportunity to proactively evolve their environmental, social and governance standards,” McCullloch said.

“This new technology literally delivers a new gold standard for the global gold industry.

“The technology is scalable and cost effective, and the process has been tested and proven at an industrial-scale to deliver commercially viable results.”

Clean Mining is currently in negotiations with ICA Mining Services Pty Ltd in the Northern Territory of Australia to commission the first commercial plant to process gold using this technology, and with Nu-Fortune Gold to commission a plant in the Goldfields of Western Australia.

Adaman’s Kirklalocka gold project to be powered by LNG

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Adaman Resources’ owned Kirkalocka gold project, in Western Australia, is set to be powered by LNG after the asset owner and EVOL LNG signed a agreement.

The long-term arrangement, between EVOL and Adaman Resources’ wholly-owned subsidiary Kirkalocka Gold SPV Pty Ltd, will see EVOL LNG fuel Zenith Energy’s 14.5 MW power station, with supply planned to commence from September 2019.

The gold mine, around 70 km south of Mt Magnet in the mid-west region of Western Australia, is set to restart operation after more than a decade, with the mine’s new owners refurbishing the processing plant and increasing its capacity to over 2.2 Mt/y.

EVOL LNG and Wholesale Manager, Nick Rea, said the use of LNG as an alternative to diesel will help minimise the mine’s carbon emissions.

“LNG produces 25% less CO2 emissions than diesel, and during the initial six years of operation, the mine will avoid 50,000 t of greenhouse gas emissions by fuelling its power station with LNG instead of diesel. This is the equivalent of keeping around 3,000 cars off the road,” Rea said.

EVOL, part of Wesfarmers Chemicals, Energy & Fertilisers, will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine, it said. “The facility will use EVOL LNG’s modular design which allows for fast installation and expandability to suit the mine’s growing energy requirements,” the company added.

Adaman Resources’ Chief Executive Officer, Craig Bradshaw, said EVOL LNG will provide environmental, financial and economic benefits for the company.

“Utilising LNG as an alternative to diesel-fired generation will significantly reduce our energy costs and exposure to volatile diesel prices. Based on the current diesel price, we estimate our energy costs to be reduced by more than A$13 million ($9 million) during the first six years of operation,” he said.

EVOL’s Rea said Kirkalocka was the company’s third major contract in the mid-west in recent years; he sees huge potential for growth in this region.

“The scarcity of gas pipelines and absence of grid power would otherwise force off-grid mines to use diesel for power generation, but we are able to provide a much better solution with LNG. It’s clean, safe, reliable and lower cost than diesel.

“We have proven ourselves to the mining industry over the last decade, with seven mine sites now powered by EVOL LNG,” he said.

Rio and Hitachi Rail STS celebrate AutoHaul achievements

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Rio Tinto and its lead technology partner on the AutoHaul™ project, Hitachi Rail STS, joined together today to celebrate the successful deployment of the world’s first automated heavy-haul long distance rail network.

AutoHaul trains, which deliver safety and productivity benefits for Rio Tinto’s iron ore business, have also firmly positioned Western Australia and its heavy-haul rail industry as a global leader in the joint development and application of rail technology, Rio said.

Today, 2.4 km long trains, monitored remotely from an operations centre in Perth, travel across a network of 1,700 km of track, delivering iron ore from 16 mines to ports in Dampier and Cape Lambert in Western Australia. These trains have now safely travelled more than 4.5 million kilometres autonomously since they were first deployed last year.

“This world-first was made possible by the close collaboration with project partners from Japan, US and Australia,” Rio said. “These include Hitachi Rail, Calibre, New York Air Brake, Wabtec and others who provided the necessary expertise, innovation and software to make AutoHaul a success. Several of these partners maintain a strong presence in Western Australia and have committed to continuing to invest locally.”

Rio Tinto Iron Ore Managing Director Rail, Port & Core Services, Ivan Vella, said: “The success of AutoHaul would not have been possible without the expertise, collaboration and dedication of teams within Rio Tinto and our numerous partners. I’d also like to commend our train driving workforce for their support and professionalism during the transition period.

“This project has cemented Western Australia as a leader in the heavy-haul rail industry and has attracted interest from around the world. The successful deployment of the world’s first heavy-haul long distance rail network demonstrates the potential for significant further improvement in such operations with others around the world looking to replicate.”

Western Australia Minister for Mines and Petroleum Bill Johnston, who also joined in with the celebrations, said the AutoHaul project is a world-first and an example of the strength of Western Australia’s resources industry, which continues to excel in technology and innovation.

“I’d like to congratulate Rio Tinto, Hitachi and all the other project partners for their hard work and dedication over the past decade to delivering this project, which really cements our State as a global leader in rail technology,” he said.

“AutoHaul has brought the rail freight industry in this country into the 21st century and is rightfully the subject of global interest. I’d also like to mention that the development of the world’s biggest robot is such a success because of the contribution from Western Australia’s skilled engineers and innovative workers.”

Michele Fracchiolla, President Americas and APAC Business Unit, Hitachi Rail STS, said: “Hitachi Rail STS is extremely proud of the lead technical and delivery role it played in enabling the deployment of the world’s first fully-autonomous heavy haul, long distance rail operation.

“This is a new technical benchmark for the freight rail industry worldwide and the result of a long-established and collaborative partnership between Rio Tinto and Hitachi Rail STS. Now that the trains are running autonomously, the levels of continuous improvement that can be achieved in safety, operational efficiency and sustainability are endless, and we look forward to continuing to collaborate with Rio Tinto to enhance the AutoHaul system.”

Early results from the deployment of the $940 million AutoHaul program highlight the technology’s potential to improve productivity, increase flexibility and reduce bottlenecks in Rio Tinto’s iron ore system, the miner said. “Rio Tinto’s Pilbara operations are being transformed to flex in line with market conditions and AutoHaul is a vital component in increasing flexibility and safety in the system.”

Rio operates about 200 locomotives on what is the largest privately-owned rail network in Australia and, in December, the deployment of software on Rio Tinto’s locomotives was completed.

“Autonomous trains improve safety through reduced risk at level crossings and automated responses to speed restrictions and alarms,” Rio says. “AutoHaul also removes the need for almost 1.5 million km of road travel per year previously required to transport drivers to and from trains mid-journey.”

All locomotives are fitted with AutoHaul safety systems including collision detection systems, automatic train protection technology – which controls train speed to ensure adherence to speed limits – and an on-board video camera to record the front view from the train.

The average return distance of these trains is about 800 km with the average journey cycle, including loading and dumping, taking about 40 hours. All public rail crossings on the network are fitted with CCTV cameras and have been upgraded to the highest safety standards, according to Rio.

Rio Tinto provides funding for Australia’s first automation course

Automation, Careers in mining, IoT, Mining people, Steel and iron ore, Sustainable mining, , , , , , , ,

Rio Tinto has welcomed the introduction of Australia’s first nationally recognised qualifications in automation at the South Metropolitan TAFE Technical and Further Education institution, in Fremantle, Western Australia.

The course will provide workers in the resources sector and others looking to join it, with the skills and knowledge needed to succeed in an increasingly science, technology, engineering and mathematics-based industry, the miner said.

“The new certificate courses, the first to provide education pathways to jobs in the area of autonomous operations, are the result of an historic collaboration between Western Australia’s resources sector including Rio Tinto, South Metropolitan TAFE and the Western Australian Government,” Rio said.

The courses have been developed over the last year and are now accredited by the Training Accreditation Council (WA), with Rio contributing up to A$2 million ($1.37 million) to development of the new qualifications.

A Certificate II in Autonomous Workplace Operations will be introduced to TAFE curriculum and piloted by a group of Rio Tinto’s iron ore workforce from August, Rio said. It will also be piloted for Year 11 and 12 students in selected high schools across the state.

A Working Effectively in an Automated Workplace micro-credential course for trade-qualified, apprentices and technicians will also be available, according to Rio, which said a Certificate IV in Remote Centre Operations was also in development.

Rio Tinto Iron Ore Chief Executive, Chris Salisbury (pictured furthest right), said: “Australia’s workforce is in the midst of an important shift, as innovation and technology create new business models across all industries. Mining has moved to become a genuine leader in innovative technology and we recognise the critical need to provide effective education programmes and opportunities to help our people succeed in this new era.

“We believe these courses will make a long-lasting and positive difference to the lives of many Australians. It will help ensure our industry remains globally competitive and is a leader in innovative technology.”