Tag Archives: Western Australia

Downer EDI to maintain BHP’s Port Hedland iron ore export facilities

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Downer EDI has been granted a three-year maintenance contract by BHP’s iron ore division as the world’s biggest miner by market capitalisation looks to shore up its export facilities in Port Hedland, Western Australia.

Downer’s scope of works spans the maintenance of the Port Hedland export operations across the Finucane Island and Nelson Point facilities. This will include the provision of mechanical, electrical, heating, ventilating and air conditioning, minor civils, rope access services and integration with the BHP maintenance team in planning and executing the services, Downer said.

This is the second such maintenance contract BHP’s iron ore divison has awarded in recent days.  The company, this week, signed a similar agreement with Monadelphous that covered five of its iron ore mines.

Grant Fenn, Chief Executive Officer of Downer, said the contract win demonstrated Downer’s leading position in the delivery of major maintenance and industrial services to customers in the resources and energy sectors.

SMS Mining Services receives A$640 million of new gold project contracts

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Western Australia-based contractor SMS Mining Services has been named as the preferred mining contractor for both Capricorn Metals’ Karlawinda gold project near Newman and Adaman Resources’ Kirkalocka gold project near Mt Magnet.

The two contracts are worth A$640 million combined – A$420 million ($301 million) for Karlawinda and A$220 million for Kirkalocka – and push SMS’ contract book past the A$1 billion mark, according to SMS Managing Director Danny Sweeney.

Sweeney added that the company also has contracts in the pipeline extending out to 2027, and a remaining tender pipeline of over A$1.2 billion.

The Karlawinda gold contract is for a duration of eight years and 10 months, representing the entire life of mine. It will consist of open-pit mining services including load and haul, drill and blast, and mine development.

SMS will mobilise new and existing equipment, and deploy significant technology and operational initiatives, the company said.

“We are excited to be part of Capricorn Metals story. We look forward to forging a successful long-term partnership and supporting the company in bringing the Karlawinda gold project into production in 2019,” Sweeney said.

Formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming months. Contract works are due to start in the June quarter of 2019.

A feasibility study on development of the Bibra deposit at Karlawinda was completed in October 2017. This envisaged a a single large open-pit deposit feeding a 3 Mt/y CIL processing plant, producing approximately 100,000 oz/y of gold at an average all-in sustaining cost of A$1,025/oz over the initial mine life.

Meanwhile, the company has also secured preferred contractor status for Adaman’s Kirkalocka project, 70 km south of Mount Magnet. SMS owns a 33% stake in privately-owned Adaman Resources as part of its equity strategy of supporting small and mid-tier miners to enter production.

The four-year contract with an option to extend will consist of open-pit mining services including load and haul, drill and blast, and mine development. Drilling is currently is underway to extend the mine life beyond the current six years.

Again, formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming weeks. Contract works are due to start in late 2018.

Roy Hill receives training plaudits at Western Australia awards ceremony

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Roy Hill Holdings has been named the Western Australia Employer of the Year at a gala ceremony for the WA Training Awards.

The awards are presented by the Department for Training and Workforce Development, to recognise the outstanding achievement of apprentices, trainees, vocational students and the contribution to training made by trainers, training organisations and employers.

Roy Hill’s acknowledgement as WA Employer of the Year 2018 is in recognition of achieving excellence providing nationally recognised training to its employees, the company said. In addition, this year Tarra Ninyette was also named a finalist in the Aboriginal & Torres Strait Islander Student of the Year.

Roy Hill CEO Barry Fitzgerald said the award was especially significant given the company is still young and evolving.

“Since Roy Hill’s inception in 2012, we’ve held a passionate belief that by helping our people to continually learn and develop, they can reach their full potential – and we all succeed. We are absolutely committed to the training and development of our people, aligned with our values of Lead, Care, Think and Perform,” he said.

“This year, we have developed and implemented a large number of training and development initiatives for our employees. As Roy Hill accepts this award, we have more than 800 people actively engaged in training programmes, complementing more than 300 staff who have successfully completed an accredited training course in the last two years.

Fitzgerald said Roy Hill allocates additional training days for its site-based operators and trades personnel for their personal development, enabling the development of additional skills for alternative career paths.

“We are also committed to providing people without mining experience, but the right values, attitudes and behaviours with opportunities in the industry, through a willingness to train and develop these people hands on,” he said.

“Our training and development initiatives also extend into the broader community, with the establishment of a curriculum based, learning experience where Year Eight students participate in a hands-on visit to our Remote Operations Centre. This initiative is focused on highlighting both the educational and diverse career opportunities in the mining industry with a focus on science, technology, engineering and maths courses, and opportunities for girls.

Fitzgerald concluded the win demonstrated the company’s commitment to a career enrichment programme of upskilling, providing development and career progression opportunities is not only working, but achieving award winning standards.

Roy Hill operates a 55 Mt/y iron ore operation in the Pilbara of Western Australia.

Civmec readies for first shutdown maintenance campaign at Roy Hill iron ore mine

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Australia-based Civmec Ltd’s maintenance team is about to mobilise to Roy Hill Holdings’ iron ore operations in the Pilbara of Western Australia as it commences the first shutdown campaign of its long-term services contract with the company.

In July, Civmec was awarded a maintenance contract with Roy Hill and the company is now “working collaboratively on planning, drawing experienced personnel from its extensive resource pool to ensure this first phase of a long maintenance campaign is delivered seamlessly”, it said.

Civmec said the outcomes of this first phase of work, due to start this month, will dictate the client’s approach to ongoing maintenance.

The contract includes providing mechanical, scaffolding, electrical, conveyor and shutdown management services, according to the company.

Civmec said this contract, and others recently secured with the likes of Alcoa, Rio Tinto and Fortescue Metals Group, was the direct result of investing in dedicated maintenance facilities nationally, together with bolstering its maintenance management team capability, training and recruiting.

Patrick Tallon, Civmec’s CEO, said: “We see the commitment towards the continual growth of a maintenance division as a very strategic move to support the significant requirement to maintain the many new plants that have recently been constructed in the minerals and metals and oil and gas sectors across Australia.”

Civmec has traditionally been thought of as a multi-disciplinary heavy engineering construction company.

Roy Hill is a 55 Mt/y iron ore mining, rail and port operation in Western Australia’s Pilbara region. Civmec previously carried out four contracts as part of the build, included heavy engineering and structural, mechanical, piping and electrical instrumentation packages.

DRA to start work on Yangibana rare earths FEED contract in Western Australia

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DRA Global is to carry out the Front-End Engineering Design (FEED) contract for Hastings Technology Metals’ Yangibana rare earths project in Western Australia.

Yangibana will be Hastings’ first rare earths project on the Australian continent, containing substantial neodymium and praseodymium resources, according to DRA.

The project currently spans approximately 650 km² and is located in the Gascoyne region of Western Australia. A definitive feasibility study (DFS) in 2017, based on a 5.15 Mt reserve, detailed a production rate of 1 Mt/y to produce up to 15,000 t/y of mixed rare earths carbonate.

Following this, Hastings has undertaken to develop the project further, specifically the first phase of the processing plant. The site plot plan has been approved and is ready for detailed engineering and execution to proceed.

The flowsheet for this initial project will comprise of two key elements; beneficiation and hydrometallurgy. This FEED scope of work shall progress the process plant engineering design and place long lead equipment orders to obtain vendor data to progress engineering in critical areas.

“A further outcome of this scope of work will be to define the requirements for detailed design, procurement, construction and commissioning of the Yangibana rare earths project processing facility,” DRA said.

The scope of work will also progress engineering and update the project cost estimate for the processing facility. This element of the project has been fast tracked by Hastings Technology, with the first phase expected to be completed by the end of December.

Hannes Zandberg, Project Director at Hastings Technology, said: “DRA brings decades of engineering experience to this project and has a globally proven track record. This has allowed us to set some tight deadlines and, although it is a challenge, our close working partnership with DRA inspires confidence. We are certain that this FEED phase will have a successful outcome and will lead to future collaboration on the Yangibana project.”

Grounded Construction ahead of schedule at Iluka’s Cataby mineral sands project

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Grounded Construction Group has made a fast start on its contract for installing two mining villages and a mine infrastructure administration and maintenance facility for Iluka Resources’ Cataby mineral sands project in the Perth Basin of Western Australia.

The company recently handed over the keys to Iluka, ahead of schedule, after the completion of two stages of its work on the A$275 million ($201 million) project.

The recent completion of stage one and two took place over six months for Tronox Ltd in Cataby and Iluka Resources in Dandgaragan. Stage one included a 260-person mining village, with the greenfield site requiring bulk earthworks, concreting, sealed roads and the transport of buildings.

“As with all Grounded Construction Group projects, best practice methods were used to install accommodation facilities,” the company said. The entire project included the installation of all waste and water treatment plants, electrical, plumbing, communications, bitumen roads, line-marking and car parks.

Stage two in Dandgaragan included the building of a 180-person elevated campsite. Similar to stage one, the project included bulk earthworks, concreting, construction of sealed roads, transportation of buildings and cranage. It also involved waste and water treatment plants, electrical, plumbing, communications, bitumen roads, line-marking, car parks and the installation of a maintenance shed.

Paul Natoli, Grounded’s Managing Director, said: “Our team of project managers and contractors have all worked cohesively and cooperatively to complete these two major stages ahead of schedule and on budget.”

Grounded is currently working on the beginning stages of stage three.

The Cataby mineral sands deposit is a chloride ilmenite deposit with associated zircon and rutile production. It is expected to have an economic life of around eight-and-a-half years.

Heavy mineral concentrate produced at the site will be processed into final products at Iluka’s Narngulu mineral separation plant. The chloride ilmenite product will be suitable for both sale or as a feed source for the production of synthetic rutile.

The project was approved in December 2017 with first production expected in the June quarter of 2019.

RCT helps Cat LHDs go digital at Gold Fields Granny Smith mine

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RCT is helping Gold Fields’ Granny Smith mine in Western Australia achieve further efficiencies with its latest automation technology , the company said.

The underground gold mine’s CAT loaders, equipped with RCT’s ControlMaster® Teleremote and Guidance Automation solutions, will go digital with RCT’s Guidance Select and Guidance Control features, according to RCT.

“This will be facilitated via the mine network and RCT’s Automation Control Centre, all of which will transform their operations into a mine of the future,” RCT said.

The Guidance Automation solution ensures faster production cycle times and reduces potential machine damage during the tramming cycle.

The Granny Smith mine is 720 km east-north-east of Perth. It produced 290,000 oz of gold in 2017.

FMG backs Western Australia Aboriginal businesses in latest contract awards

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Fortescue Metals Group has awarded more than A$6 million ($4.4 million) worth of contracts to two Western Australia Aboriginal businesses, as part of the iron ore company’s Billion Opportunities programme.

Aboriginal-Noongar owned business Kooya Australia Fleet Solutions, Australia’s largest indigenous fleet management and rental company, has been awarded a three-year contract for the supply of light and commercial leased vehicles across Fortescue’s operational sites, while majority owned Aboriginal business Thuroona Services has been given a contract for maintenance work at Fortescue’s rail operations.

Since the inception of Fortescue’s Billion Opportunities in 2011, 270 contracts and sub-contracts valued at A$2 billion have been awarded to 110 Aboriginal-owned business and joint ventures, Fortescue said.

Fortescue Chief Financial Officer Ian Wells said the contracts signified the company’s continued commitment to supporting local content as part of its procurement process.

“By partnering with Aboriginal businesses to build their capability and capacity, we are opening the doors to future work with other organisations which is fundamental to their economic sustainability and prosperity,” he said.

BHP blasts off at South Flank iron ore project in Pilbara

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BHP has carried out the first blast at its South Flank iron ore project in the Pilbara of Western Australia, as the mining major continues with a schedule that should see first ore come out from the new mine in 2021.

The company officially broke ground on the $3.6 billion development in July, just over a month since it approved construction.

The South Flank project expands the existing infrastructure at Mining Area C, and involves construction of an 80 Mt/y crushing and screening plant, an overland conveyor system, stockyard and train loading facilities, procurement of new mining fleet and substantial mine development and pre-strip work.

South Flank is forecast to produce ore for more than 25 years, and is expected to help BHP Western Australia iron ore division’s average iron grade go from 61% to 62%, with the overall proportion of lump increasing to 35%, from 25%.

Clough is the EPC contractor on the project, with MACA, CIMIC’s CPB, SIMPEC and NRW Holdings also carrying out work at South Flank, which is owned 85% by BHP and 15% by Itochu and Mitsui (collectively).

Matsa starts mining Red Dog gold operation in Western Australia

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Australia-listed Matsa Resources has started mining the Red Dog gold deposit in Western Australia, with blasting expected to commence later this week.

Red Dog is around 25 km west of the Fortitude gold mine, which Matsa conducted trial mining on earlier this year and is currently being weighed up as a full-scale operation.

Matsa said all equipment is on site at Red Dog, offices have been established and blasthole drilling in preparation for the first blast this week is underway.

The company has an agreement with AngloGold Ashanti Australia whereby all gold ore will be treated at its nearby Sunrise Dam gold mine treatment facilities.

The feasibility study on Red Dog envisaged mining some 30,000 bank cubic metres (BCM) per month, using a 120-130 t excavator and a fleet of Cat 777 dump trucks. The total material movement is expected to come in at 600,000 t at a strip ratio of 2.4:1.

Mining of the open pit is scheduled to take two months to complete with ore haulage to the mill continuing for a further month.

This would see some 13,400 oz of gold recovered over the life of mine at an all-in sustaining cash cost of A$1,294/oz.