Tag Archives: Western Australia

Clough to provide key infrastructure at Rio’s Koodaideri iron ore project

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Clough, as part as the Acciona Clough joint venture, has been awarded a civil works contract for the construction of the northern rail formation for the Rio Tinto Koodaideri iron ore project, in Western Australia.

Clough CEO and Managing Director, Peter Bennett, said: “We are excited with the opportunity to work with Rio Tinto Iron Ore to deliver its vision for the Koodaideri project as we continue to grow our presence in Western Australia’s iron ore developments.”

Bennett said the execution of the contract would create more than 200 new jobs, with the scope including 100 km of rail formation earthworks, culverts, bridge construction, access roads and level crossings.

“Clough is a proudly Western Australian engineering and construction company with a proven history of delivering world-class projects with outstanding safety and quality results in Australia and overseas,” he added.

The engineering and construction company is celebrating its 100th year of operation.

The Koodaideri project is a greenfield mine development for Rio Tinto Iron Ore, in the East Pilbara mining region. The mine will initially be developed with an annual capacity of 43 Mt. To allow the transportation of iron ore product to either Dampier or Cape Lambert, the project requires a 170 km rail spur to connect the Koodaideri mine to the existing Rio Tinto Iron Ore rail network, just south of Lyre Siding at Numbat.

WorleyParsons is carrying out the EPCM contract for the project, while FLSmidth said this week that it will bring the latest 3D smart design to the development.

The project has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine, which is expected to be Rio Tinto’s lowest cost contributor to its industry benchmark Pilbara Blend product.

DDH1 after WA iron ore contract growth with Ranger Drilling acquisition

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DDH1 Holdings says it has acquired Ranger Drilling as it looks to grow the Australia iron ore RC drilling specialist’s business.

DDH1 Holdings now consists of three drilling businesses, namely DDH1 Drilling, Strike Drilling and Ranger Drilling.

Ranger was established in 2005 by Matt and Julie Izett and specialises in providing reverse Circulation (RC) drilling services to customers operating in the Western Australian iron ore market.

DDH1 Chief Executive Officer, Sy van Dyk, said: “Ranger will continue operating as a separate company, under the same management from the same premises. DDH1’s intention is to continue to grow the Ranger brand, while preserving their culture of leadership, productivity, innovation and safety. These are the qualities that attracted our investment in Ranger and we want to ensure it is protected and fostered going forward.”

Ranger’s Managing Director, Matt Izett, said: “DDH1 is a natural partner for Ranger to further our growth ambitions by providing additional capital to the business in a cost-effective and disciplined manner. I look forward to continue leading and growing the business Julie and I founded in 2005 and to deliver superior drilling solutions to our loyal customer base, whilst contributing at a senior level to the wider group’s operations”.

DDH1 Drilling, Strike Drilling and Ranger’s capabilities are highly complementary, DDH1 said, and the combination of the businesses provides the opportunity to offer clients the full suite of drilling services required across the resource life cycle, from discovering new deposits to extending existing mine lives. “The group’s drill rig fleet is modern, standardised and highly productive,” the company said.

DDH1 Managing Director, Murray Pollock, said: “DDH1 and Ranger have worked together on a shared contract basis, during which time we have observed Ranger’s premium customer service offering, the productivity gains delivered by their modern fleet and quality management team led by Matt Izett. Together, we are committed to being the drilling contractor and employer of choice in the Australian drilling industry.

“The group now has 84 Tier One drill rigs and employs over 700 staff to provide our customers with end-to-end drilling solutions. I am also pleased that as part of the transaction Matt and Julie Izett will become significant shareholders in DDH1 Holdings and we look forward to working with them.”

FLSmidth to bring the latest smart 3D design to Rio Tinto’s Koodaideri iron ore mine

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Rio Tinto has chosen FLSmidth to supply key minerals handling equipment for the company’s Koodaideri iron ore project in Western Australia, the mining OEM says.

The contract is a turnkey agreement for the design, supply, installation and commissioning for the new greenfield iron ore mine.

“FLSmidth will provide the products and know-how that will be instrumental in developing the Koodaideri mine to be Rio Tinto’s most technologically-advanced mine to date,” FLSmidth said. “Rio Tinto will for the first time apply smart technology to interconnect all components in the mining value chain. FLSmidth will design the equipment to the latest Australian standards and incorporate smart 3D design and a variety of advanced engineering solutions, such as BulkExpert™ (pictured).

Manfred Schaffer, President, FLSmidth Mining, said: “Koodaideri will set new benchmarks in digitalisation and will feature the most technologically-advanced solutions employed to date in the iron ore sector. This will enable Rio Tinto to run the most advanced mining operation featuring high productivity and high safety in a cost-efficient set-up and we are proud to be part of this.”

Construction at the Koodaideri mine will commence this year with the first ore expected to be fully functional by late 2021, with a production capacity of 43 Mt/y of iron ore.

The exact total contract value for the supply of the equipment won’t be disclosed but is exceeding A$80 million ($56 million) and will be booked in the June quarter, FLSmidth said.

Monadelphous adds ‘inflow’ infrastructure work to BHP South Flank iron ore package

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Engineering company Monadelphous Group says it has been awarded a second construction contract, valued at A$104 million ($74 million), at BHP’s South Flank iron ore project in the Pilbara region of Western Australia.

The contract includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s inflow infrastructure and brings the total value of work secured by Monadelphous on this project to A$212 million, the company said.

The company’s previous contract – awarded last month – includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s outflow infrastructure.

Work under the inflow infrastructure contract is expected to start immediately and be completed by March 2021, according to Monadelphous.

Monadelphous Managing Director, Rob Velletri, said the award of a second contract at South Flank enables Monadelphous to realise efficiency synergies between the two packages of work, and underlined the strength of its long-term relationship with BHP.

BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output. This will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.

MRC Graphite drafts in Mondium for Munglinup ECI and FEED contracts

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Mineral Commodities’ wholly-owned subsidiary, MRC Graphite, says it has executed a professional services agreement with Mondium to undertake early contractor involvement (ECI) and front-end engineering and design (FEED) for the Munglinup graphite project, in Western Australia.

MRC Graphite is in the final stages of completing a definitive feasibility study (DFS) for Munglinup, which will provide the pathway to a final decision to commence construction. In addition, environmental permitting is ongoing and the current schedule, cognisant of regulatory processes and south coast seasonal variation, offers the opportunity to engage an engineering and construction firm to deliver additional value to the project through a purposeful ECI and FEED programme, the company said.

Mondium is an incorporated joint venture between Monadelphous Group and Lycopodium, which leverages the skills of both companies to provide technical and delivery solutions to its clients, Mineral Commodities said.

Mineral Commodities Executive Chairman, Mark Caruso, said: “Given the current tightening of resources in the mining project space, MRC is very pleased to have formed this relationship with a highly regarded engineering and construction firm. This will enable MRC to undertake significant value-add for the Munglinup graphite project through ECI and FEED stages, leading into construction later in the year, subject to approvals and a decision to mine.

“Mondium and its owners, Monadelphous and Lycopodium, are extremely well qualified and experienced in flotation design and construction and MRC looks forward to developing the Munglinup graphite project as safely, quickly and cost effectively as possible to ensure MRC emerges next year as a low cost, high quality graphite producer.”

According to a prefeasibility study, Munglinup will produce, on average, 54,800 t/y of high-purity graphite concentrate at a life of mine production cash cost of circa A$531/t ($377/t) graphite. Initial capital costs were estimated at A$52 million including 15% engineering procurement and construction costs (A$5.5 million), 15% contingency (A$6 million) and all owners’ costs (A$3 million).

FMG sets up Future of Mobility Centre in WA, starts autonomous light vehicle trial

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Fortescue Metals Group has announced the establishment of a research and development centre based in Karratha, Western Australia, to explore opportunities for the application of autonomous mobility technology in an urban environment.

On top of this, it said it had commenced an autonomous light vehicle trial at its Christmas Creek iron ore operation in the Pilbara of WA.

In partnership with the local community, City of Karratha and technology and research partners, the Fortescue Future of Mobility Centre will “leverage the company’s success in using autonomous technology across its operations”, FMG said.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said that innovation and emerging technologies, like autonomy, present an opportunity to work closely with the community to bring about mutual benefits.

“We are at the forefront of this technology with our mine operations set to become the first in the world to be fully autonomous and our fleet having safely travelled over 26 million kilometres since the first autonomous truck was introduced in 2012,” Gaines said.

“We are now building on our autonomous capability with the commencement of an autonomous light vehicle trial, at our Christmas Creek mine.

“The emergence of autonomy is one aspect in which our world is changing rapidly, and we intend to be part of the opportunities that it will represent for the mining industry, local communities such as Karratha, and beyond.”

By establishing the Fortescue Future of Mobility Centre in Karratha, FMG will have the ability to develop, test and trial this technology, Gaines said. This will further contribute to “Western Australia’s position as a world leading autonomous hub”, she added.

“We’ll be exploring all facets of the future of mobility including software, hardware and various forms of mobility solutions, to see where the opportunities lie,” she said.

City of Karratha Mayor, Peter Long, said: “I am delighted that of all the potential locations around Australia, Fortescue has selected Karratha as its base to develop this exciting and innovative new technology.”

Dr Fang Chen, Executive Director Data Science at The University of Technology Sydney, which will be a leading research provider to Fortescue’s work in autonomous technology, said: “Research into new technology and infrastructure will accelerate innovative mobility solutions to accommodate growth and future demands.”

Bis’ Rexx 20-wheel dump truck impresses at Glencore’s Murrin Murrin mine

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Bis Industries says its “revolutionary” new mining haul truck has delivered outstanding results in trials at Glencore’s Murrin Murrin nickel mine in the north-eastern Goldfields of Western Australia.

Known as Rexx, the dual powered 20-wheel dump truck has been designed with a range of features specifically incorporated to deliver savings to Bis customers, the company said. Rexx has more than four times the range of conventional dump trucks, outstanding manoeuvrability, operator comfort and maintainability plus on demand power that lowers fuel consumption, according to Bis.

Bis CEO Brad Rogers said the testing at Murrin Murrin mine has been carried out in `real-life’ operating conditions and the results to date indicated Rexx had the capacity to deliver up to a 30% reduction in operating costs compared with conventional dump trucks. These savings will be delivered to miners as part of Bis’ integrated haulage solution, it added.

Rogers said one area of the savings that could be passed on to Bis customers in haulage costs was average fuel use by Rexx, which was around half the fuel consumed by equivalent competing dump trucks.

“The fuel savings are a direct consequence of Rexx being designed with patented on-demand power that lowers fuel consumption,” the company said. “The vehicle has the capacity to carry enough fuel for at least two 12-h shifts, eliminating downtime needed for refuelling.”

Rogers said Rexx had been designed in-house by the Bis engineering team while the construction had used the talent of Western Australian tradespeople.“In Rexx we have a game changing work horse that showcases Australian innovation,” he said.

For example, the steering system enables an industry leading turning circle of just 13.5 m, allowing Rexx to manoeuvre easily in smaller spaces, the company said.

With an eye to industry trends, Rexx had also been designed and built to be easily retrofitted for autonomous operations with features including steering sensors, stability control sensors and a futuristic in-cab console, Rogers said. The console provides the operator with real-time data including pressure monitoring on all tyres and sensors for detecting bin tipping, engineering operation and payload.

Mining Manager at Murrin Murrin, David Ayres, said: “We were thrilled to be involved with Bis on this exciting project. Outside of autonomous systems, there haven’t been many major fundamental design changes in the rigid-frame off-highway game in a long time.

“The Bis design offers the ability to haul directly from pit-to-plant from a much longer distance, without the need for the re-handle step, which should save costs and reduce ore loss/dilution. Rexx solves a niche haul-distance equation,” he said.

Rexx has sparked significant interest from major miners both internationally and within Australia and a series of demonstrations are now being staged with interested customers, Bis said.

BCI Minerals brings in GR Engineering for Mardie potash DFS

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BCI Minerals says it has appointed GR Engineering Services as the lead engineer for the Mardie salt and potash project definitive feasibility study (DFS) on the northwest coast of Western Australia.

As lead DFS engineer, GR Engineering will be responsible for coordination and integration of the process and engineering design packages for the ponds and crystallisers, salt plant, sulphate of potash (SOP) plant and port facilities. It will also prepare and verify the DFS level capital and operating cost estimates and will undertake the design and supervision of pre-final investment decision site works and supporting infrastructure during 2019.

BCI said: “GR Engineering is a reputable Perth-based engineering group with significant experience in study management, engineering design and construction of resource projects in Western Australia and globally, both as engineering, procurement, construction and management and EPC contractor.

“Members of the GR Engineering team nominated for this engagement have appropriate experience in salt operation and sulphate of potash study management.”

Following completion of a prefeasibility study during the June 2018 quarter, BCI commenced the Mardie DFS. As well as improving design accuracy and further de-risking the project, BCI is aiming for the DFS to improve on the PFS development plan and business case in a number of key areas, including:

  • Increasing the production capacity to 4 Mt/y salt and 100,000 t/y SOP;
  • Establishing the tenure, approvals and designs for a fit-for-purpose export facility at the Mardie site, which will eliminate haulage costs to the Cape Preston East Port site, and;
  • Establishing test ponds and completing construction of project support infrastructure to bring forward the target date for first salt and SOP production.

The site works GR Engineering will initially carry out include a 135-ha trial pond, seawater intake pumps, circa-20 km upgrade of access roads, initial accommodation camp and power generation.

BCI’s Managing Director, Alwyn Vorster, said: “We are focused on delivering a high quality DFS that will place BCI in a strong position to reach a final investment decision by the first (March) quarter of 2020. GR Engineering’s technical ability and project management strengths will make them a valuable partner to BCI as Mardie is progressed towards full project construction.”

BCI’s areas of focus in the period to June 30, 2019, include:

  • Appointments of process design engineers (ponds, two plants and port);
  • Geotechnical drilling programme of pond, plant and port areas completed;
  • Construction of small-scale trial evaporators completed;
  • Port tenure negotiations with the Pilbara Port Authority(PPA);
  • Environmental Review Document submitted to the Environmental Protection Authority(EPA);
  • Construction of the 135-ha trial pond and supporting facilities (camp, roads, power, pumps) commenced;
  • Funding discussions with Northern Australia Infrastructure Facility and other entities progressed;
  • Product offtake potential developed, and;
  • Significant potential investor/financier briefings.

BCI said all activities until the final investment decision in Q1 2020 – estimated at A$25 million ($17.8 million) – will be funded from BCI’s existing A$36 million cash and the ongoing quarterly royalties from Iron Valley, the company said.

Civmec to help modularise BHP’s South Flank iron ore mine

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Civmec says it has signed a contract with BHP that will see the ASX-listed engineering company fabricate and modularise key components for the under-construction South Flank iron ore project, in the Pilbara of Western Australia.

The award of the South Flank module fabrication and assembly package #3 covers the supply and assembly of 23 fully-equipped ‘smart modules’, including the supply and installation of the required mechanical and electrical equipment up to no-load commissioning for each module, Civmec said. The scope comprises conveyor shuttle modules, sample station, pump skids, train loadout and feeder modules, all of which will be fabricated and assembled at Civmec’s facility in Henderson, Western Australia, before being transported to site for installation.

Work will commence immediately, with completion anticipated by mid-2020, according to Civmec.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are extremely pleased to be given this opportunity to further support BHP in the delivery of what will ultimately become its flagship mine. The award of this scope of work complements the packages already in production for thyssenkrupp, in the supply, manufacture, trial assembly, surface treatment and pre-assembly of stackers, bogies and equalisers for the rail mounted machines for the South Flank project.”

When fully operational, South Flank will be one of the world’s largest iron ore operations integrating the latest advances in autonomous-ready fleets, digital connectivity and modular design, Civmec said.

BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output. This will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.

The combined value of these packages for South Flank is around A$48 million ($34 million).

GR Engineering lends gold study expertise to Calidus’ Warrawoona project

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Calidus Resources has appointed GR Engineering Services to carry out the prefeasibility study (PFS) on its Warrawoona gold project in Western Australia.

The PFS is scheduled to be completed in the September quarter.

Calidus said: “GR Engineering are an ASX-listed engineering company that has successfully managed 19 gold feasibility studies and the construction of three gold processing plants in Western Australia in the last two years and has an excellent track record of delivering process plants on time and on budget.”

Calidus Managing Director, Dave Reeves, said: “The appointment of GR Engineering to undertake the PFS for Calidus is another step towards development of the Warrawoona gold project.

“Detailed inputs for the study have been collected over the last 12 months to ensure an accurate representation of the economics can be provided to investors on the completion of the PFS and allow discussions to commence with debt financiers.

“With regional drilling of untested anomalies due to commence next month in parallel with the PFS, we believe we are just starting to unlock the true value of this untested greenstone belt in Western Australia.”

Calidus has outlined a resource of 21.3 Mt at 1.83 g/t Au for 1.25 Moz at Warrawoona, which includes a higher-grade component of 14.6 Mt at 2.37 g/t for 1.1 Moz. Around 64% of the resource is classified as indicated.