Tag Archives: Western Australia

Valmec secures gas pipeline facility contract at Mineral Resources’ Wodgina lithium project

Energy services group Valmec has secured a number of sustaining capital works contracts across its Energy & Infrastructure division, with one of these being for Mineral Resources’ Wodgina lithium project in Western Australia.

Its new works contracts – which include the Wodgina agreement, a compression installation for Beach Energy Ltd and infrastructure development works for Pilbara Ports Authority and Water Corp – have a combined value of A$10 million ($7.2 million).

The Wodgina contract will see the company complete a facility for an 81 km, 10 inch (0.25 m) gas pipeline feeding a combined 64 MW power station at the project. This pipeline is expected to be commissioned in the March quarter and be operational in the June quarter, according to Mineral Resources.

In March, Mineral Resources commenced onsite construction of essential non-process infrastructure services and utilities assets, a new crushing plant and a new 750,000 t/y spodumene concentrate beneficiation plant to produce 6% spodumene concentrate at Wodgina.

Pindari to build Koodaideri iron ore mine construction camp for Rio

Rio Tinto has confirmed Perth-based Pindan will build a 780-room construction camp at its new Koodaideri iron ore mine in Western Australia as part of a A$45 million ($33 million) contract award.

The miner approved a $2.6 billion investment in Koodaideri last month, saying it would become its most technologically advanced mine. The award to the Australia-based construction company was acknowledged in Iron Ore Chief Executive Chris Salisbury’s presentation at the WA Mining Club on Friday.

Koodaideri will deliver a new production hub for Rio’s iron ore business in the Pilbara, incorporating a processing plant and infrastructure including a 166 km rail line connecting the mine to the existing network.

Construction on Koodaideri Phase 1 will start next year with first production expected in late 2021. Once complete, the 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.

MACA set for open-pit mining and process plant work at Echo’s Yandal gold project

Two of MACA Limited’s subsidiaries look set to carry out open-pit mining and refurbish the mill at Echo Resources’ Yandal gold project in Western Australia.

MACA said a letter of intent (LoI) had been signed that could see MACA Mining awarded an open-pit mining services contract and MACA Interquip receive a mill refurbishment contract.

These two contracts hinge on the Echo Board of Directors proceeding with an investment to develop Yandal and the project receiving all statutory approvals.

The scope of work to be undertaken under the mining contract will include load and haul, and drill and blast, with the pricing of the agreement to be updated (using the same inputs as tendered, adjusted for rise and fall) based on the final Yandal mine plans from a bankable feasibility study (BFS).

The mill contract is to include refurbishment and commissioning. MACA said: “While final pricing is to be determined under the aforementioned methodology, the previously released BFS for Stage 1 estimated mining costs at A$172 million ($124 million).”

Yandal, located 83 km northeast of Leinster in Western Australia, will treat ore through the 2 Mt/y Bronzewing processing plant (pictured), which is currently on care and maintenance. The project has existing mineral resources of 1.7 Moz of gold and ore reserves of 856,000 oz. The previously released BFS for Stage 1 envisaged the development of an 1.8 Mt/y operation able to produce 746,000 oz of gold over an eight-and-a-half-year life.

In addition to this LoI, MACA said, following mobilisation and early site establishment activities at the Bluff coal project in Queensland, Australia, mining of overburden would commence on or around December 10. MACA was previously awarded a A$700 million life of mine contract at Bluff from Wealth Mining.

SIMPEC ready for camp construction and deconstruction at West Angelas

WestStar Industrial’s engineering contractor business, SIMPEC, has been awarded a key contract by ATCO Structures and Logistics in the construction and deconstruction of a 600-room camp at Rio Tinto’s West Angelas iron ore mine in the Pilbara of Western Australia.

The A$4 million ($2.96 million) contract award work is due to commence early in 2019.

SIMPEC’s electrical and communications scope of work is to design, supply, construct, test, commission and deconstruct the electrical and communications systems of the construction camp. The camp will be delivered over a three-to-four-month period and is to be used in the major development project at West Angelas to build deposits C and D.

Following completion of mine development, SIMPEC will return to site and deconstruct the camp’s electrical and communications systems.

SIMPEC said the contract award at West Angelas builds on the portfolio of camp work packages successfully undertaken by SIMPEC, specifically the camp works completed at Iluka Resources’ Cataby iron sands project, 150 km north of Perth, Western Australia.

SIMPEC Managing Director Mark Dimasi said: “This is a tribute to our team resulting from our efforts at the Cataby project. What a commendable achievement to secure a project with ATCO Structures and Logistics for the Rio Tinto West Angelas mine site, further enhancing our exposure to camp construction works.”

The investment at West Angelas’ C and D deposits is part of a $1.55 billion plan to sustain production capacity at part of the Robe River joint venture (owned 53% by Rio, 33% by Mitsui and 14% by Nippon Steel & Sumitomo Metal Corp).

The joint venture partners will invest $579 million in developing deposits C and D, with first ore expected in 2021.

BHP grants Decmil extension to Mulla Mulla camp contract

Decmil Group’s wholly-owned subsidiary, Decmil Australia, has been awarded an extension to its contract with BHP at the Mulla Mulla camp in Western Australia.

The works, which upgrade and expand the existing Mulla Mulla village, will support current operations at Mining Area C and the South Flank iron ore project, the latter of which is currently in execution.

The extension adds to the A$13 million ($9.5 million) early works package announced in August 2017 and the A$75 million stage one package announced in November 2017.

The second stage includes the refurbishment, relocation and installation of a further 632 rooms, the installation of 10 laundries and the supply and installation of new verandas. The scope also includes internal roads, drainage and concrete footpaths. The works on the second stage will commence immediately.

The 80 Mt/y South Flank iron ore project is aimed at sustaining BHP’s Western Australia iron ore production as the Yandi mine is exhausted over the next five to ten years. The South Flank deposit is around 130 km by road northwest of the town of Newman, and approximately 8 km to the south of the company’s existing Mining Area C operation.

BHP commenced its first blast at the project in September and expects first ore extraction to take place in 2021.

Alliance and BHP Nickel West extend air charter services agreement

Alliance Aviation Services Limited has extended the air charter services to BHP Nickel West for a further five years.

This service, which has been operational since November 2006, was Alliance’s initial service in Western Australia and has become the cornerstone for the company developing a large presence in the state, the company said.

Lee Schofield, Alliance’s CEO, said: “Alliance has worked with BHP Nickel West as a partner in the provision of these services accommodating changes during the resources downturn and now we are experiencing growth of up to 17 charters per week as economic conditions continue to improve.

“As with our other resources customers throughout Australia, we are seeing growth in the number of charters as the current demand for resources is maintained and production increases.”

In July, Alliance won a three-year extension to its aviation services contract with St Barbara’s Leonora gold operations in the state.

BHP Nickel West, meanwhile, has recently signed a mining services contract extension with Thiess, part of the CIMIC Group, to continue operations at the Leinster underground mine.

BHP’s South Flank to receive world’s largest rail-mounted stackers and reclaimer from thyssenkrupp

thyssenkrupp Industrial Solutions has been awarded one of the largest fabrication and construction projects the company has ever handled in Western Australia, with an order from BHP’s South Flank iron ore operation.

Under the €150 million ($171 million) contract, thyssenkrupp will design, supply, construct and commission large-scale stockyard machines for South Flank, in the central Pilbara region.

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.

thyssenkrupp will supply two stackers that deposit iron ore into stockyards for loading, and a reclaimer for loading the ore on to trains for transport to Port Hedland. The machines will have a capacity of 20,000 t/h, making them the largest rail-mounted stackers and reclaimer in the world, according to the company.

Torsten Gerlach, CEO Mining Technologies at thyssenkrupp Industrial Solutions, said: “South Flank will be one of the largest iron-ore operations worldwide. We look forward to contributing to this project by combining longstanding global expertise in the mining business with local experience.

“Our strong partnership with BHP extends globally, but the Pilbara region is a core area where we have provided material handling solutions for decades. With our field service teams, we are supporting our customer on a daily basis.”

The design of the machines incorporates the latest Australian design standard requirements and technology improvements centred on safe construction, operation and maintenance activities, according to the company.

 

SIMPEC books business at Iluka’s Cataby mineral sands project in Western Australia

SIMPEC is continuing to win business in the Western Australia mining sector, this time being awarded a contract to install a flocculant treatment plant for Iluka Resources’ new mineral sands project in Cataby.

The A$1.7 million ($1.2 million) contract award will see SIMPEC, a subsidiary of WestStar Industrial, start work on the plant immediately. It is the company’s second award at Cataby, having successfully completed a key mechanical, electrical and communications contract in the construction of two separate accommodation facilities for use by Iluka and Tronox, respectively.

The plant package is a fabrication and construction project consisting of four tanks including structural, mechanical and piping works. The project will be delivered over a three-month period and forms part of a “complex mineral and chemical processing facility”, according to SIMPEC.

At Cataby, the heavy mineral concentrate produced at the site will be processed into final products at Iluka’s Narngulu mineral separation plant.

The A$250-275 million Cataby project was approved in December 2017 with first production expected in the June quarter of 2019. It is expected to produce an average of 200,000 t/y of synthetic rutile, 50,000 t/y of zircon and 30,000 t/y of rutile over an 8.5-year mine life.

SIMPEC said the Cataby award builds on its portfolio of tank work packages carried out at the Talison lithium mine in Greenbushes, Western Australia.

With this award, SIMPEC has built an order book of A$9.5 million, with more than A$150 million of work tendered over the past year, it said.

Zenith to supply more power to NSR’s Jundee gold mine

Zenith Energy has executed an amendment to the power purchase agreement (PPA) it had in place with Northern Star Resources for the Jundee gold mine in Western Australia.

The new pact will see Zenith add another 6 MW of installed capacity in the power station at Jundee and bring the ASX-listed power company’s overall build own operate (BOO) capacity to more than 189 MW.

Under the amend terms of the PPA, Zenith will BOO an expanded 24 MW power station for Jundee, located in the northern Greenfields region of WA. The power station will comprise 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 amended PPA is expected to have a supply commencement date of the March quarter and a 10-year term aligned with the existing PPA.

Zenith Energy’s Managing Director, Hamish Moffat said: “We are delighted to sign this PPA amendment with Northern Star, which further demonstrates Zenith Energy’s ability to build strong, long-lasting relationships with Tier One clients such as Northern Star Resources through the continued delivery of excellence in safe, innovative, reliable, highly efficient and cost-effective power generation solutions to support the diverse needs of our resources clients in demanding remote locations.”

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.35 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.

The company produced 285,000 oz of gold in its last financial year from Jundee.

New generation Scania XT trucks go to work at Pilbara mine site

Scania’s first new truck generation XT mining chassis have arrived in Australia and are already in use at a Pilbara mine site in Western Australia.

The two Scania NTG G 450 8×4 twin steer chassis have been fitted with new, higher-capacity 40,000-litre Shermac water cart bodies for the customer.

Scania says the tailor-made Shermac bodies are more than double the capacity of those fitted to traditional road-going trucks used on mine sites and are designed to replace mine-specific road train combinations.

“The new Scania XT trucks offer the customer a more cost-effective solution to the requirement for dust suppression and road building assistance on-site,” Scania says.

Robert Taylor, General Manager, Mining at Scania Australia, said the mining customer has had experience operating a fleet of Scania trucks on-site as service vehicles, flatbeds and technical support vehicles for the past year.

“The trucks were in service 24-hours per day, seven-days per week and have clocked up around 70,000 km on-site in their first 12 months. They have been very reliable in service and the drivers enjoyed the comfortable and quiet Scania cab,” he said.

“When we were discussing the replacement of the customer’s existing water carts, we suggested a more flexible solution, in the form of the NTG 450 XT 8×4 as they could handle the higher payload of 40,000-litres for a GVM (gross vehicle mass) of around 66 t,” Taylor said.

The water carts are also on call 24/7 and reliability is very important to the customer, Taylor added.

“They work in an extremely harsh environment where there is a lot of dust and heat and so water cart availability is critical to the mine’s operations. The vehicles will be serviced on-site to maximise uptime,” he said.

This new high-capacity water cart underscores Scania’s ability to configure a vehicle exactly to a client’s needs, according to Taylor.

“Our client wanted a reliable, high-capacity vehicle that could be maintained easily and quickly and one that could do the job day-in, day-out. The new Scania XT range is designed for these conditions and, in addition to being able to source and fit a suitable body, we have been able to deliver a solution at a reduced capital cost to the client compared with their previous solution,” he said.

“One of our longer-term goals has been to be able to offer our customers the ability to replace their very high-cost capital equipment with Scania solutions that provide a greater degree of resource utilisation flexibility as well as cut their capital expenditure without compromising availability or productivity. And we are able to deliver solutions in a timelier manner as well.

“With these new XT water carts we believe we are taking another significant step towards delivering on that strategy,” he said.

Jim Ray, who controls sales and sales management at mining engineering equipment supplier Shermac, said Scania was confident the 8×4 chassis would be suitable for this 40,000 litre payload, having seen 66 t payloads used widely in tipper configurations in South America and Indonesia mine sites.

“All of our water carts are custom designed and extensively tested to ensure optimum weight distribution and performance no matter how tough the environment or challenge,” Ray said.

“With liquid loads you do get high dynamic forces, but our Roadserve 2000 model water cart is well baffled and on-site speeds will be low and there are few inclines, allowing the vehicles to do their jobs reliably. Scania also has a lower centre of gravity compared with the previous solution, which also aids stability and safety,” he said.

The Scania NTG XT range has been designed for challenging operating conditions and comes with a 150 mm protruding steel front bumper bar that protects the vehicle against significant frontal knocks.

With protective grilles for the LED headlights, a fold-down bumper-mounted step to allow safe access for windscreen cleaning on-site, and a 40 t capacity tow point, the XT is suited to the operating conditions of a mine site. Additionally, Scania has added extra tough door mirror covers for the XT, as they are often very vulnerable to accidental damage.

Within the NTG cabs, all drivers are seated more comfortably in new seats, positioned closer to the screen and door for enhanced visibility, while repositioned A-pillars and mirrors provide an even safer and enhanced view out to the front and side.

The G 450 B8x4HZ chassis selected by the customer has a 5,950 mm axle distance, and two 12 t front axles and two 21 t rear drive axles for a GVM of 66 t.

The 450 hp (336 kW), 13 litre, six-cylinder in-line engine drives through a Scania Opticruise automated gear-change and GRSO935R transmission, with specific off-road mode built into the management system.

The latest and highest output Scania hydraulic retarder system is fitted to provide safe braking, preserving the service brake linings on the drum brakes, which are backed by ABS.

Steel leaf spring suspension all-round provides a solution for the on-site driving environment, backed up by a heavy-duty mechanical suspension for the cab to chassis connections. A new electrically powered cab tilting mechanism is occupational health and safety friendly, as well, Scania says.

Within the low roof day cab, the Scania XT is fitted with a steering-wheel mounted airbag as well as driver and passenger side curtain airbags designed to protect occupants in the event of a rollover.