Tag Archives: Western Australia

NRW books A$62 million of business with FMG for Eliwana rail project

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

NRW has been formally awarded the contract for Stage 1 earthworks, roadworks and drainage works of Fortescue Metals Group’s Eliwana Rail project in Western Australia.

The contract, which has a final value of around A$62 million ($44 million), follows the ASX-listed contractor being selected as the preferred contractor for these works at the end of last year.

The overall Eliwana mine and rail project is expected to cost $1.275 billion to build, and include 143 km of rail, a new 30 Mt/y ore processing facility (OPF) and infrastructure. Production is slated for December 2020 with a life of mine strip ratio of 1.1.

The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the mining company’s 2019 financial year.

Panoramic’s Savannah nickel-copper-cobalt project rises again

Base metals, Mine operation news, Mineral project development, , , , , , ,

The first shipment of bulk nickel-copper-cobalt concentrate from Panoramic Resources’ recently recommissioned Savannah project, in the Kimberley region of Western Australia, has departed Wyndham bound for Lianyungang, China, the company says.

The MV Heemskerkgracht (pictured) departed with 7,735 t (wet) of concentrate on-board, with a preliminary invoice value of approximately A$ 8.6 million ($6.1 million), Panoramic reported.

Panoramic’s Managing Director, Peter Harold, said: “It is wonderful to see Savannah concentrate being shipped again from Wyndham. This is a significant milestone in the recommissioning of the mine and processing plant at Savannah and I would like to thank the team at Savannah for their efforts to get the project going again.”

Panoramic successfully commissioned the $65 million Savannah project in late 2004 and then, in 2005, purchased and restarted the Lanfranchi nickel project, near Kambalda. In its 2014 financial year, the company produced a record 22,256 t of contained nickel and produced 19,301 t contained nickel in the year after.

The Lanfranchi and Savannah projects were placed on care and maintenance in November 2015 and May 2016, respectively, pending a sustained recovery in the nickel price.

After delivering an updated feasibility study on Savannah in October 2017, securing an offtake customer and putting in place project financing in July 2018, the company made the decision to restart operations at Savannah. The Lanfranchi project was sold, in December 2018, for a total cash consideration of A$15.1 million, providing additional financial support for the reopening of the Savannah project.

Savannah is expected to ramp up to full production over 15 months to a forecast life of mine average annual production rate of 10,800 t of nickel, 6,100 t of copper and 800 t of cobalt metal contained in concentrate.

Strategen and JBS&G Australia to combine environmental services

Environmental, Mining mergers and acquisitions, Mining services, Water management, , , , , ,

Strategen has agreed to merge with JBS&G Australia to create a leading environmental firm serving several industries.

“As a new combined entity, our merger (effective July) will bring together some of Australia’s leading experts within the environmental industry, allowing us to offer a broader range of services to our clients across the country,” Strategen said.

This will create a total workforce of more than 200, adding not only depth of experience to Strategen’s capabilities in Western Australia, especially in contaminated sites, approvals and stakeholder engagement, but also a broader offering of services to its clients across the country, Strategen said.

Strategen CEO, Darren Walsh (pictured left), said: “This merger will enable us to build on our 25-year track record of delivering results for some of Western Australia’s most important projects and we are delighted to be enhancing our ability to meet client needs through this partnership.

“Our new combined firm positions us to service our clients in Western Australia with a far superior depth and strength, and also allows the provision of Strategen’s range of services to JBS&G’s clients throughout Australia.

“We are proud to remain privately owned; and this new merger will solidify us as one of the largest, independently owned environmental consultancy firms within Australia”.

Walsh will retain a prominent role in the Western Australia business, becoming an Executive Director of the combined firm and continuing to work with the team to ensure exceptional levels of service and outcomes to clients, Strategen said. Current Strategen General Manager, Tim Bowra, will become the Western Australia Managing Principal. Current JBS&G CEO, Andrew Lau (pictured right), will continue at the helm of the expanded JBS&G business.

Lau said bringing together the two strong, complementary businesses will help drive growth and increase overall competitiveness. “Strategen’s technical expertise and track record of success in securing complex environmental approvals is a perfect fit for JBS&G and will help us continue to deliver unmatched expertise to our clients.

“We are bringing together some of the brightest minds and best people in the industry, with unmatched experience on some of Australia’s largest and most significant projects. This will enable us to continue to deliver fast, capable expertise to our clients and expand the breadth of services we deliver, particularly to Western Australia in the land development, infrastructure, mining, renewables and oil & gas industries.”

Strategen will, in part, retain its trading name in Western Australia, becoming Strategen-JBS&G from July. The JBS&G WA team, meanwhile, will relocate to Strategen’s offices in Subiaco in June, Strategen said.

Aggreko to deliver renewable power microgrid to Gold Fields’ Granny Smith mine

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Gold Fields’ Granny Smith gold mine is set to install one of the world’s largest renewable energy microgrids powered by more than 20,000 solar panels and backed up by a 2 MW/1 MWh battery system, according to mobile and modular power company Aggreko.

The mining company has contracted the Scotland-based firm to design, build and operate the 8 MW solar power generation system along with the battery system at Granny Smith, which is located east of Laverton in Western Australia’s Goldfields region.

In June, said it was working with Gold Fields on plans to provide 7.3 MW of solar power generation, as well as a 2 MW/1 MWh battery system, to be integrated with the existing gas supply as a hybrid power station.

Gold Fields Executive Vice President Australasia, Stuart Mathews, said: “We are thrilled to reach an agreement with Aggreko for the design, installation and operation of this innovative source of renewable energy which will generate nearly enough power to run the mine’s processing operations.

“We expect the renewable power microgrid will be up and running at Granny Smith by Q4 (December quarter) 2019 and it will be a welcome addition to our suite of on-site energy solutions across other operations which will enable us to reduce our carbon footprint,” he said.

Construction of the renewable energy system is planned to commence in May and, when completed, will be one of the world’s largest hybrid off-grid microgrids, integrated with Aggreko’s existing 24.2 MW natural gas generation.

Aggreko AusPac Managing Director, George Whyte, said the solar, thermal and battery storage assets will be seamlessly integrated and managed by Aggreko’s control software platform – maintaining full system availability and optimising the lifetime of existing thermal assets.

Whyte said: “The solar-plus-battery system is projected to reduce fuel consumption by 10-13% – the equivalent of removing 2,000 cars from the road – and produce about 18 GWh of clean energy per year.

“Gold Fields understands the performance, cost and environmental advantages for their operation, as well as the need to integrate this resource into their system without compromising power supply reliability or mining productivity.”

While the solar photovoltaic (PV) will reduce the need to run thermal generators, the battery plant will provide essential services such as spinning reserve displacement, PV ramp rate control and transient voltage/frequency support.

The current Granny Smith power station was designed and installed by Aggreko in 2016 and the new hybrid power system, combined with a thermal station expansion, will meet the increased daily power needs of 24.2 MW, with 12.2 MW allocated to the Wallaby underground mine and the remaining 12 MW to the processing plant, associated facilities and mining camp, Aggreko said. Granny Smith produced 290,000 oz of gold in 2017.

RCT sensor solution passes the test at WA Goldfields mine

Automation, Equipment maintenance, Mining equipment, Mining maintenance, Mining safety, Mining services, Precious metals, , , , , , , ,

RCT says it has developed a monitoring system to improve underground mining operations at a gold mine in Western Australia’s Goldfields.

The miner approached RCT’s Kalgoorlie-based staff to develop a way to monitor the project’s ore passes to ensure they did not get blocked by larger rocks during the transfer of material.

The ore passes – now used to dump waste – are vertical chutes used by the mine’s Epiroc MT6020 haul trucks to dump material to backfill an old stope.

RCT subsequently developed the ore pass monitoring system consisting of a VEGAPULS 69 radar, spanning the 91 m deep pass, and a VEGAMET 391 measurement display to indicate at what depth a blockage may occur.

The VEGAPULS 69 is a sensor for continuous measurement of bulk solids under different process conditions, while the VEGAMET 391 is suited to simple control tasks in level, gauge and process pressure measurements, as well as for inventory management and remote enquiry, according to its manufacturer VEGA.

The display was designed to use its readings to control an associated traffic lamp assembly on the wall of the mine to advise mine staff whether material had been successfully transferred.

RCT said: “Once the system was implemented, the mining company introduced a procedure for operators to ensure the traffic lamps changed back to green after tipping to indicate the pass is clear of material.

“RCT’s technicians also installed a suppression field in the first 20 m of the ore pass and directly above it to stop sharp edges in the pass bouncing echoes and falsely tripping the sensor.”

RCT Kalgoorlie Branch Manager, Rick Radcliffe, said the monitoring system can significantly reduce the downtime associated with blocked ore passes.

“If the pass becomes blocked then operators may not notice until the entire pass is filled up with material and, at that point, it will take a significant amount of time to clear the pass,” he said.

“The monitoring system ensures blockages are identified and cleared immediately.”

Gold Road and Gold Fields Gruyere JV on track for June quarter pour

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Gold Road Resources and Gold Fields’ jointly-owned Gruyere gold project in Western Australia is on track to pour first gold in the June quarter, the companies said in a construction and commissioning update this week.

Construction of the project, around 200 km east of Laverton in WA, was 91.2% complete as of January 18, 2019, with first ore mined on schedule this month. Downer, the mining contractor, has commenced double‐shift operations as part of the production ramp‐up, the companies said.

Gruyere is expected to produce 85,000-120,000 oz of gold in 2019. Once steady state production is achieved, the average annual production is forecast at 300,000 oz.

To de‐risk the project start‐up, a significant amount of ore is expected to be stockpiled in advance of first gold production, the companies noted, adding that construction works in the primary crusher area were substantially complete. Ore commissioning of the primary crusher to coarse ore stockpile circuit is in progress, they said.

The remaining process plant construction works are concentrated in the milling, carbon-in-leach and elution areas, and include piping, electrical and instrumentation installations and progressive commissioning of systems and equipment through these areas.

The project team at Gruyere includes a joint venture EPC contractor, Amec Foster Wheeler Civmec Joint Venture, MACA Ltd, which is carrying out bulk earthworks at Gruyere, and Downer EDI, which was previously awarded a five-year mining services contract.

Gold Road and Gold Fields said the project remained on schedule for first gold production in the June quarter and within previously announced forecast total cost estimates of A$621 million ($445 million).

Baru Group wins conveyor and stacker work at Rio Tinto’s Brockman 2 iron ore mine

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Rio Tinto has awarded its 100th work package to local businesses in the Pilbara of Western Australia, as part of a programme designed to increase opportunities for companies within the state.

The programme, launched in May 2017, features an online local procurement portal to increase the visibility of upcoming work and maximises opportunities for local companies to be part of Rio Tinto’s supply chain, according to the company.

One of the most recent local businesses to secure work through the portal was indigenous-owned-and-operated civil and concrete construction company, Baru Group.

The work awarded to Baru involves an upgrade of the stackers and conveyors at Rio Tinto’s Brockman 2 operation, including earthworks and a structural upgrade to the stacker rail sleepers and conveyor foundations.

Baru, based in Karratha, is expected to complete the project by the end of 2019.

Anne Tallon, director of Baru Group, said: “Winning this work has a flow on effect for our employees and their families. Rio Tinto’s local procurement portal shows us what jobs are coming up and provides us with enough information so that we can do our own investigation into whether we can be cost competitive as well as if the scope of works are within our capabilities.

“Being successful in these opportunities means that our businesses can grow, our employees and their families can live in the towns they chose to live in, and our communities can thrive.”

Rio Tinto Iron Ore Managing Director Pilbara Mines, Stefan Buys, said: “The programme is gaining momentum and we have now received more than 3,000 expressions of interest from suppliers for work published on the online platform, the Local Procurement Portal.

“Rio Tinto aims to make a significant contribution to our local communities by making sure we provide opportunities for local businesses to benefit from our activities. Our procurement practices, and those of our contractors, help sustain many Western Australian and Pilbara-based businesses.”

NRW Holdings to start work on Rio Tinto’s Koodaideri iron ore project in April

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NRW Holdings has been awarded a bulk earthworks contract at Rio Tinto’s new ‘Intelligent Mine’, Koodaideri, in the Pilbara of Western Australia.

The A$65 million ($46 million) work of works included bulk earthworks and drainage, the ASX-listed contractor said, adding that it was expected to run for 11 months, commencing on site in April.

Koodaideri is set to deliver a new production hub for Rio’s iron ore business and is 35 km northwest of the Yandicoogina mine in the east Pilbara.

In December, it was announced that Perth-based Pindan will build a 780-room construction camp at Koodaideri as part of a A$45 million contract award.

Construction on Koodaideri Phase 1 will start this year with first production expected in late 2021. Once complete, the $2.6 billion mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

In addition to mine infrastructure and the accommodation camp, an airport and mine support facilities will be built. Throughout the construction period, Rio expects to employ over 2,000 people with 600 permanent roles created once the mine is operational.

Sheffield Resources’ Thunderbird mineral sands project to use LNG

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Sheffield Resources has secured a 15-year agreement with Woodside Energy and Energy Developments Pty Ltd (EDL) for the supply and delivery of 1,950 TJ/y of liquified natural gas (LNG) to its Thunderbird mineral sands project in northern Western Australia.

LNG will be supplied from Woodside’s Pluto LNG truck loading facility, near Karratha in Western Australia (pictured), and transported to Thunderbird’s LNG storage facility by a newly formed joint venture between Woodside and Energy Developments. The JV will own and operate a purpose-built road tanker fleet to safely and reliably deliver the LNG to Thunderbird. This is customary with other gas logistic arrangements in place for the towns of Broome, Derby and other communities in the Kimberley region, according to Sheffield.

“The advantage of using LNG at Thunderbird is three-fold, providing Sheffield with a low-cost, low-emission fuel source that is ideally suited to the ilmenite low temperature roast (LTR) process proposed for the Thunderbird processing plant,” Sheffield said.

As previously announced, Sheffield has secured infrastructure funding support from the Northern Australia Infrastructure Facility (NAIF).

“Part of the A$95 million ($68 million) financing package will be allocated to the proposed Thunderbird LNG storage and power station facilities, which will be constructed and operated under separate agreement with third parties,” the company said.

“This arrangement will enable Sheffield to capture long-term gas supply cost savings relative to the bankable feasibility study (BFS) published in March 2017. The BFS assumed an outsourced LNG storage and power station facility model on a build own and operate basis.”

The NAIF funding arrangements enable in-sourcing of LNG storage and power station facilities to take place, providing significant reduction in operating costs compared with the BFS assumptions, according to the company.

The agreement is subject to several customary conditions precedent, including the company making a final investment decision toward the development of Thunderbird.

Sheffield Resources Managing Director, Bruce McFadzean, said: “The project is now fully permitted and construction ready, with offtake and financing agreements in place. We look forward to continuing our relationship with Woodside and EDL as we move toward development during 2019.”

Back in November, Sheffield signed up GR Engineering Services to build a 7.5 Mt/y mineral processing plant and associated facilities at Thunderbird.

Swift expands digital contract at Western Areas’ Forrestania nickel operation

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Among a number of resource-sector contract wins, Swift Networks Group has expanded its previous agreement with nickel miner Western Areas at its Forrestania operation in Western Australia.

The existing contract, originally signed in 2014, was to provide in-room digital services to the 465-bed accommodation village at Forrestania. The new pact expands Swift’s contract by 68 rooms to 533 rooms and includes an on-site phone network upgrade in addition to Swift’s entertainment and communication services.

Swift, which calls itself a diversified telecommunications, content and advertising solutions provider, says it delivered consistent growth in the resources market over 2018, both through direct contract wins and new clients secured by the company’s network of reseller partners.

“The company continues to view Resources as an attractive growth opportunity in light of the significant pipeline of new mining exploration, construction and development projects currently underway throughout Australia,” Swift says.

Forrestania is Western Areas’ flagship asset and consists of the Flying Fox and Spotted Quoll mines, the Cosmic Boy concentrator, a regional tenement package considered highly prospective for further nickel discoveries, and significant site infrastructure; including the accommodation village, grid-connected power, water management network, airstrip and nickel concentrate export facilities.

Based on 10-year production targets, Forrestania is expected to produce an average of 25,000 t/y of nickel concentrate.