Tag Archives: Western Australia

Fortescue celebrates first shipment of Iron Bridge magnetite

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Fortescue’s first shipment from its newly built, majority-owned Iron Bridge operations, in Western Australia, will soon be on its way to Vietnam marking the first time the company has exported a high-grade magnetite product.

It follows first production earlier this year, which saw the plant surpass expectations with a first run grade of greater than 67% Fe.

Iron Bridge, Fortescue says, is a demonstration of the company’s pioneering innovation. It signifies the first time the company has produced a wet concentrate product, which is transported to Port Hedland through a 135 km specialist slurry pipeline where dewatering and materials handling occurs to create a high grade magnetite product.

Fortescue Metals Chief Executive Officer, Fiona Hick, joined Nyamal Traditional Custodians and representatives from Fortescue’s Iron Bridge Joint Venture partner, Formosa, in Port Hedland as the first shipment was loaded.

Hick said: “Today is a truly special day for Fortescue. Last week we celebrated 20 years since Fortescue was founded and, today, we celebrate our first shipment of high-grade magnetite product from our most complex and innovative project yet.

“Iron Bridge is a game changer for Fortescue and builds on our track record of safely and successfully developing and operating iron ore projects in the Pilbara.

“High grade magnetite product will play an important role in lowering emissions in the steel industry, and Fortescue is moving at pace to ensure we are at the forefront of developing green steel technologies.

“I congratulate the entire Fortescue team for delivering this project while maintaining strong safety performance. We remain focused now on achieving a safe and efficient ramp up.”

Iron Bridge is an Unincorporated Joint Venture between FMG Magnetite Pty Ltd (69%) and Formosa Steel IB Pty Ltd (31%).

At full capacity, Iron Bridge is expected to deliver 22 Mt/y of high grade 67% Fe magnetite concentrate.

Monadelphous wins A$150 million worth of work with Fortescue, BHP and Rio Tinto

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Engineering company Monadelphous Group Limited says it has secured new contracts and contract extensions across the mining and metals space in Australia totalling approximately A$150 million ($102 million).

The company has been awarded a contract with Fortescue Metals Group for the supply and construction of an overland conveyor and transfer station at the Christmas Creek mine site in the Pilbara region of Western Australia. The scope of work, which includes civil, structural, mechanical, piping, electrical and instrumentation works, commences immediately and is expected to be completed in the first half of 2024.

In addition, Monadelphous has secured a two-year extension to its existing maintenance services contract at BHP’s Olympic Dam operations in South Australia. The scope of work includes mechanical and electrical maintenance, shutdown and project services.

Finally, the company has been awarded a two-year extension to its existing contract with Rio Tinto to continue providing mechanical, electrical and access maintenance services for fixed plant shutdowns at its Gove operations in the Northern Territory.

Liontown awards A$175 million Kathleen Valley lithium haulage contract to Qube

Energy minerals, Mineral project development, Mining services, , , , , , ,

Liontown Resources has awarded the spodumene and direct shipping ore (DSO) haulage services contract for its Kathleen Valley lithium project in Western Australia to integrated logistics solutions provider, Qube Holdings Limited.

Following what Liontown referred to as an extensive tender process, Qube has secured the five-year contract, which involves loading spodumene concentrate at Kathleen Valley; haulage of the concentrate to the Port of Geraldton; storage and stockpile management at the port and the outload to port infrastructure for shipment to Liontown customers. Storage will be in a dedicated facility within the Port of Geraldton.

Qube will use ultra-Quad road-trains to truck all concentrate from Kathleen Valley to the dedicated storage facility at the Port of Geraldton for the duration of the contract. Qube will use its 24/7 fleet monitoring centre in Perth to manage safety and environmental outcomes.

The contract is due to commence in mid-2024 in line with process plant ramp-up. Provision has been made for the services to be provided earlier for DSO as Liontown nears completion of offtake and processing options. As well as generating early revenue for Liontown, selling and shipping DSO will allow the company to trial the haulage logistics chain with lower grade material before first production is achieved from Kathleen Valley in mid-2024.

The concentrate haulage services contract, which is conditional upon Qube finalising arrangements to secure the storage facility at the Port of Geraldton, is valued at approximately A$175 million ($119 million) over the five-year contract term.

Qube has committed to the latest technology in driver and trucking safety as well as pursuing measurable carbon reduction initiatives as part of Liontown’s broader ESG commitments, working with the Kathleen Valley Tjiwarl Traditional Owners and exploring numerous revenue-generating opportunities with Tjiwarl businesses in the coming months, Liontown says. The contract will generate around 45 new positions and the Quad-trailers will be sourced in Western Australia.

Liontown’s Managing Director and CEO, Tony Ottaviano, said: “We look forward to working with Qube on the haulage and storage of our spodumene concentrate and DSO material from Kathleen Valley as well as benefiting from their expertise in the industry, especially with their extensive experience managing spodumene for others.

“This contract coupled with the Underground Mining Services (due this quarter) represents one of the last few outstanding contracts to be awarded as we progress Kathleen Valley towards first production mid-2024.”

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate, according to the company.

MLG Oz makes contract inroads with Ora Banda, Gold Fields, Bellevue Gold

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MLG Oz says it has been selected as the preferred supplier for the provision of haulage and site services at Ora Banda Mining’s Davyhurst site, in Western Australia, on top of receiving a letter of award from Gold Fields for the provision of construction works for the latest tailings storage facility project at the gold miner’s 50% owned Gruyere gold mine (pictured), also in Western Australia.

The company is currently finalising contract execution for a two-year extension, plus a one-year option, to its existing arrangements for the provision of services at Davyhurst. It would come with new commercial terms across the scope of works already being provided negotiated in line with current cost drivers and production expectations, with annual revenue subject to production and performance anticipated to be
approximately A$15 million/y ($10.2 million). This is subject to a contract being signed.

Ora Banda Mining owns an existing centralised 1.2 Mt/y processing hub, as well as additional established infrastructure at Davyhurst.

The letter of award with Gold Fields, meanwhile, is for the provision of construction works for the Gruyere Tailings Storage Facility Stage 4 (TSF) project at the gold mine, a joint venture between Gold Fields and Gold Road Resources. The award is still subject to the final negotiation of contract terms. The anticipated contract length is around eight months, with total revenue of approximately A$17 million subject to final terms and key milestones being achieved.

In addition to this new scope of works, MLG has also agreed to commence haulage services for Bellevue Gold from its open pit to Genesis’s Gwalia processing facility, also in Western Australia. The initial works are expected to commence this month and run for approximately three
months and contribute circa-A$4 million in revenue.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms. The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships, and further demonstrate MLG’s broad capability both in terms of haulage and site services, but also in the support for our growing civil construction business.”

BHP Pilbara villages safety and accessibility upgrade complete

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BHP says work is complete on its A$300 million ($200 million) investment to improve safety and accessibility for residents and guests at its Pilbara villages in Western Australia.

The accommodation safety and security upgrade project began in 2020 and was completed earlier this year by the WA Iron Ore Non-Process Infrastructure (NPI), Engineering and Asset Projects teams.

Kate Holling, WA Iron Ore NPI General Manager, said the initiative involved a significant amount of work by a big number of people, however the results were outstanding.

“In total, 10,756 rooms were upgraded across our 13 WAIO villages with more than 10,000 doors, 8,000 lights, 1,500 CCTV cameras and 4.75 km of fencing installed,” she said.

“The work was delivered using 100% Australian manufacturers and local contractors, including many Traditional Owner businesses.

“Safety continues to be our number one priority and I’m happy to see this work complete to make our villages feel safer and more accessible for everyone who visits them.”

Regis Resources opens Balkau Decline at Garden Well South underground mine

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Regis Resources Ltd has officially opened the Balkau Decline at its Garden Well South underground mine, in Western Australia, named after Regis General Manager of Exploration, Jens Balkau, who passed away in 2021.

Garden Well South underground is an underground extension of the Garden Well open-pit mine, which is a key production source at Regis’ Duketon gold project, located in the Goldfields region of Western Australia.

The original Garden Well deposit was discovered as a “blind deposit” by the Regis exploration team led by Jens Balkau.

Balkau was one of the first and longest serving employees of Regis, joining in January 2006 as the General Manager of Exploration, and remaining in that role until February 2016 when he retired from full-time work. He remained a consultant to Regis before he passed away from a long-term illness in November 2021.

The Balkau Decline provides access to Regis’ second underground operation, located at Garden Well South, which commenced commercial production during May 2023. This is part of the mineralised system that extends for at least 1 km underneath the existing Garden Well open pits, which resulted from the original discovery by the team that Balkau led, Regis said.

This milestone is the culmination of more than two years of preparation, commitment and hard work from Regis teams with support from major mining services providers Barminco and MACA, it added.

Garden Well Underground will become a key part of the wider Duketon operations, which produced 356,000 oz of gold in the year ending June 30, 2021.

The official opening ceremony for the Balkau Decline was attended by Balkau’s family, local Traditional Owners as well as many former and current Regis employees, including Regis Chairman, James Mactier, and Managing Director and CEO, Jim Beyer.

Beyer said: “The official naming of the Balkau Decline yesterday reflects this positive evolution for the Garden Well operation, so it is fitting we name it after the man who led the initial discovery of Garden Well. Jens was a much-loved and valued colleague, friend and mentor to many at Regis. He led the exploration team for over a decade with enthusiasm and an abundant willingness to nurture the next generation of geologists.

“Jens is deeply missed, but his legacy will always be remembered at Regis.”

Decmil receives logistics link upgrade LNoA from Covalent for Mount Holland lithium project

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Decmil Group says it has received a Limited Notice of Award (LNoA) for a contract at Covalent Lithium’s Mount Holland lithium project in Western Australia.

Formal award of the contract remains subject to finalisation of terms and conditions, but, under the currently envisaged scope of the LNoA, Decmil is authorised to perform early works, commence procurement of materials and draft management plans.

If Decmil is awarded the contract, it will upgrade the logistics link between Great Eastern Highway and Covalent’s Mount Holland site. This encompasses 113 km of road upgrades with mobilisation scheduled to commence in August 2023 and completion anticipated by December 2024.

Covalent will develop and operate the Mount Holland project, which will be a unique, fully integrated producer of battery-quality lithium hydroxide in Western Australia. The company says it is targeting 75% recovery of spodumene in its concentrator and expects to produce more than 380,000 t/y of spodumene concentrate.

This LNoA further strengthens the relationship between Covalent and Decmil, with Decmil currently completing the design and construction of non-process infrastructure buildings at Covalent’s Kwinana site (pictured).

Decmil CEO, Rod Heale, said: “We are delivering on our shift towards larger-sized contracts with more equitable risk allocations that fit within our core geographic and operational expertise. This LNoA perfectly illustrates Decmil’s evolution towards this highly selective tendering strategy to underpin increasingly profitable revenue growth.

“The LNoA is also a testament to the successful delivery of our current package of works with Covalent, as we continue to positively progress our operational turnaround.

“Additionally, continued exposure to the Mount Holland project will further enhance the company’s position in the burgeoning lithium sector.”

Metso extends calcining and acid roasting input at Kemerton lithium hydroxide processing plant

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Metso says it has been awarded a contract to deliver ancillary equipment for Albemarle Lithium Pty Ltd’s calcining and acid roasting facilities at the Kemerton lithium hydroxide processing plant in Western Australia.

This agreeement is an addendum to the two pyro processing and comminution lines that were awarded to Metso and announced in December 2022. The value of the contract is approximately €40 million ($43.5 million).

Metso’s scope of delivery includes selected material handling and gas cleaning equipment for the calciner, calcine grinding and acid vapour sections.

Chris Urban, Vice President, Heat Transfer at Metso, said: “We are pleased that Albemarle, which is one of the largest lithium producers in the world, has selected us as the partner for their lithium hydroxide processing plants. In addition to the pyro processing and comminution lines ordered, it was also our honour to deliver two pyro lines, which were recently commissioned.”

The Kemerton plant initially consisted of three production trains, each producing 20,000 t/y of lithium hydroxide, with a potential expansion to five trains that will see production increase to 100,000 t/y by around 2025. The plant will be supplied with lithium concentrate produced at the nearby Greenbushes mine.

Austin banks A$25 million truck tray order destined for Western Australia

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Austin Engineering says it has now received all the purchase orders expected following a successful tender process last year, plus a further 25% in additional orders, under a single contract for truck trays to be delivered to Western Australia.

The value of the orders received to date is approximately A$25 million ($16.7 million).

The first three trays under this order were delivered ex-works 10 days ago for onward shipment to the customer site. The remaining trays are in, or scheduled for, production at Austin’s facilities in Batam, Indonesia and Perth, Western Australia.

Austin announced in May 2023 it had received 85% of the outstanding purchase orders related to this contract and was awaiting receipt of the final orders, which has now occurred.

Overall order book growth has been maintained. Austin’s group order book to the end of May 2023 is up 21% year-on-year to A$146 million and more than double from the same time two years ago, it says.

Austin CEO and Managing Director, David Singleton, said: “We are very pleased to have received more purchase orders than expected under the financial year 2023 tender contract and can confirm that most of the revenue will be booked in financial year 2024. Further, we have continued to build our financial year 2024 order book, driving an improved revenue outlook.

“Our recently expanded Batam manufacturing centre continues to provide the extra capacity and flexibility we need in our business. With deliveries now scheduled across the world including US, Australia, Europe and India, we are expecting a strong performance for our Batam operations in financial year 2024.”

Zenith Energy and Northern Star seal renewable energy-focused PPA at Jundee

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Zenith Energy has converted the preliminary works agreement and term sheet it had in place with Northern Star Resources related to bolstering the power supply to the Jundee gold mine in Western Australia with a renewable energy Power Purchase Agreement.

Jundee is an existing mining operation that will have wind, solar and battery retrofitted into the mix and integrated into the existing gas power station. The renewable generation being added includes 24 MW of wind, 16.9 MWp of solar, and 12 MW/13.4 MWh of battery energy storage.

Zenith says this new energy mix will result in 56% of the mine site’s power coming from renewable sources, contributing towards the aim of cutting Jundee’s Scope 1 and 2 carbon emissions by 35-50% by 2030.

Currently all ore is sourced from Jundee underground operations which yield circa-1.8 Mt/y of ore. There are three underground portals which provide access to the various underground lode structures – Barton, Gateway and Invicta portals. Underground mining is being carried out by an up-hole long-hole open stoping sequence as its primary method. No backfill or paste is used.

The Jundee processing circuit is a conventional carbon-in-leach plant with a hard-rock processing capacity of approximately 3 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 carbon-in-pulp process achieving 92% recoveries, according to Northern Star.