Tag Archives: WestStar Industrial

SIMPEC to construct wet process plant at Iron Bridge magnetite project

SIMPEC has been awarded a A$145 million ($107 million) contract for the construction of a wet process plant for the Iron Bridge magnetite project in the Pilbara of Western Australia.

The WestStar Industrial subsidiary has been contracted by Iron Bridge Operations Pty Ltd, a company representing the joint venture between Fortescue Metals Group subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd.

The wet processing plant is a significant part of the new magnetite mine at Iron Bridge, which will be central to the production of 22 Mt/y (wet) of 67% Fe magnetite concentrate product.

SIMPEC is to supply vertical construction services for the contract, with an anticipated workforce of more than 500 personnel. The contract is expected to commence immediately with works due to be completed by the middle of 2022.

SIMPEC’s part of the project consists of major module installation, tank installation, major mechanical installation, large bore piping and a significant portion of supply and installation of electrical and instrumentation works.

Fortescue, in its June quarter results, released today, said the Iron Bridge project was expecting first production by December 2022 and a ramp-up period of 12-18 months before reaching capacity.

SIMPEC awarded significant Cloudbreak crusher contract from Fortescue

SIMPEC’s relationship with Fortescue Metals Group continues to strengthen, with the engineering contractor set to replace two Metso Outotec Nordberg® C160 jaw crushers at the miner’s Cloudbreak iron ore operation in the Pilbara of Western Australia.

The WestStar Industrial Ltd subsidiary’s new contract for the Hopper 5 Jaw Crusher Replacement project is the first win directly from Fortescue but is far from the first time the company has stepped on site at one of its mines. SIMPEC has previously carried out work on its operations after being subcontracted by the likes of Central Systems, Energy Power Systems, ATCO and others.

The scope of the jaw crusher contract includes removal of all structural and mechanical items required to access the jaw crushers, followed by reinstatement on completion of the change out. It also includes maintenance works and modifications to the existing Hopper 5 hoppers, chutes and screens, SIMPEC said.

Worth A$2.1 million ($1.6 million), the vertical contract has commenced immediately, with works expected to be completed in April.

SIMPEC Managing Director, Mark Dimasi, said: “It has been a long-term goal of SIMPEC to work directly for Fortescue and to break into the field of sustaining capital works. By building our sustaining capital portfolio, SIMPEC aims to achieve a more stable cash flow as well as provide continuity for our workforce.

“This is a very proud moment for the team, and we look forward to successful completion of this project and what we hope will be a long-term relationship with Fortescue.”

SIMPEC to help Central Systems with Fortescue Solomon Hub work

SIMPEC is to supply and install the electrical, instrumentation and communication works for the Solomon Central Facilities Workshop Yard at Fortescue Metals Group’s Solomon Hub iron ore operations in the Pilbara of Western Australia.

The contract, awarded by Central Systems, is valued at A$7 million ($5.4 million), according to SIMPEC, WestStar Industrial’s engineering contractor business. Work has commenced immediately.

FMG Solomon Pty Ltd, a subsidiary of Fortescue, is developing the Solomon Central Facilities Workshop Yard, which involves consolidating various workshops, facilities and other non-process infrastructure into a centralised location. Central Systems was awarded the A$57.5 million design and construct contract for the Central Facilities (picture courtesy of Central Systems) back in October, and SIMPEC will be working with the company on site to supply and install the electrical, instrumentation and communication works for these facilities.

This award, SIMPEC’s first from Central Systems, builds on the portfolio of non-process infrastructure work packages successfully undertaken by SIMPEC across Western Australia and Sydney, New South Wales, the company said.

SIMPEC Managing Director, Mark Dimasi, noted: “To be part of this new development in the non-process infrastructure space on a Fortescue Metals Group project is very rewarding for the team. This large project allows SIMPEC to showcase its true electrical and instrumentation capabilities.”

Fortescue’s Solomon Hub is in the Hamersley Ranges and comprises the Firetail and Kings Valley mines, which together have a production capacity of 75 Mt/y. At the hub, higher iron grade, low cost Firetail ore is blended with low phosphorous Chichester ore to create the company’s Fortescue Blend.

IronMerge SIMPEC joint venture to work on Pilgangoora lithium operation

SIMPEC and IronMerge have secured their first contract under a newly incorporated joint venture, with the IronMerge SIMPEC JV to work on Pilbara Minerals’ Pilgangoora lithium operation in Western Australia.

WestStar Industrial Ltd’s SIMPEC formed its first Aboriginal Business joint venture, IronMerge SIMPEC JV, with IronMerge Pty Ltd just last month.

The Stage 1 A$15 million ($11.7 million) improvement works contract at Pilgangoora involves a series of works to improve operating time and throughput as part of continuous improvement to operational performance of Pilgangoora’s Stage 1, 2 Mt/y processing facility.

SIMPEC has been contracted to perform all vertical installation works including earth works, civils, fabrication, structural, mechanical, piping, tanks, electrical and instrumentation works for the project. All works will be conducted with joint venture partner IronMerge.

The Pilgangoora lithium-tantalum project has a current resource of 222.5 Mt and existing JORC compliant reserves of 104.6 Mt.

SIMPEC Managing Director, Mark Dimasi (pictured on the right), said: “This newly awarded contract is a tribute to not only our SIMPEC delivery team but also Ian Taylor (Chairman of IronMerge, pictured in the middle next to Ken Brinsden, MD and CEO of Pilbara Minerals, on the left) and his IronMerge team. This is a very proud moment for all of us and I sincerely look forward to seeing this JV relationship growing and developing in the construction and mining sector. A big thank you to the Pilbara Minerals team for backing us throughout this tender phase.”

SIMPEC and IronMerge create Aboriginal Business JV serving the Pilbara

WestStar Industrial Ltd’s engineering contractor business SIMPEC has formed its first Aboriginal Business joint venture, IronMerge SIMPEC JV, with IronMerge Pty Ltd.

IronMerge is a Supply Nation Aboriginal-owned mining and civil works service company, delivering local contracting solutions to customers across the Pilbara, driving employment outcomes for Indigenous people and local communities in the Port Hedland region, WestStar says. The company prides itself on being a Nyamal family business and offers direct employment for Nyamal people in the Pilbara.

IronMerge SIMPEC JV, an unincorporated 50:50 joint venture, has been formed to deliver a key component of SIMPEC’s Aboriginal engagement strategy and overall commitment to returning benefit to Traditional Owners and communities within its operational footprint, according to WestStar.

The key objectives of the joint venture are:

  • For SIMPEC and IronMergeto cooperate and support one another in construction and service opportunities in and around the Pilbara, winning work jointly or separately;
  • To actively participate and positively contribute to the communities in which the parties operate by continuing to create local employment opportunities and engaging the community interest in everything that is done; and
  • To be project and service delivery partners of choice through complete alignment with clients in meeting their goals, obligations and commitments to Traditional Owners and local Aboriginal businesses.

SIMPEC Managing Director, Mark Dimasi, said: “This is a milestone achievement not only for SIMPEC but also Ian Taylor (pictured in the centre) and his IronMerge team. This is a very proud moment for all of us and I sincerely look forward to seeing this JV relationship delivering sustainable outcomes to our businesses and equally to Aboriginal business and communities. A big thank you to all involved in bringing the first step in our ambitious goal to a reality.”

SIMPEC says it continues to develop and strengthen its relationship with local Traditional Owners and Aboriginal businesses.

“We believe our overall focus on social responsibility will further enhance SIMPEC’s positioning for financial year 2021 and beyond,” it added.

Alltype Engineering gassed up in Western Australia

WestStar Industrial’s engineering construction contracting business, Alltype Engineering, has been awarded contracts to a total value of circa-A$8 million ($6 million) across multiple clients and projects, including A$5 million of contracts in gas transmission.

APA Group has contracted Alltype to deliver multiple gas offtake and metering facility projects throughout the Midwest region of Western Australia. These turnkey multidiscipline projects involve civil, structural, mechanical, piping, electrical and instrumentation scopes, both workshop and site, with remote area working conditions and logistics and eight off-workshop fabricated gas skids to be completed off site.

Included in the projects are a gas lateral offtake and metering station for the Beyondie sulphate of potash project (pictured), a gas lateral offtake and metering project for the Lakeway SO4 potash project, and gas lateral offtake and metering work for Capricorn Metals’ Karlawinda gold project.

WestStar is also scheduled to build a gas lateral metering station for Primero Group at the Kalium Lakes potash project.

WestStar said: “These newly awarded contracts for Alltype continue to demonstrate its strength and reliability in working successfully with APA and the Australian gas industry, including both upstream and downstream projects.

“Furthermore, having fabricated, assembled and FAT tested over 20 modularised gas skid process packages in the last two years, Alltype continue to leverage off this experience and knowhow to fast track aggressive timeline projects with full supply chain control.”

Alltype has commenced the works for APA Group, which are planned to be completed by the March quarter of 2021.

In addition to this work, Alltype says it was awarded its first contract from Newmont at the Boddington gold mine, also in Western Australia. This contract had an aggressive timeline for completion of urgent fabricated plate and piping componentry for a shutdown, which was achieved. The balance of works is in the process of being completed, it noted.

Still in Western Australia, Alltype says it continues to provide goods and services for the three major iron ore developments in the Pilbara, being BHP South Flank, Rio Tinto Gudai-Darri and FMG’s majority-owned Iron Bridge project.

Alltype Engineering goes modular for Rio Koodaideri iron ore plant deliveries

WestStar Industrial Ltd’s engineering contractor business, Alltype Engineering, is to help build an iron ore mine plant at the Rio Tinto-owned Koodaideri project in the Pilbara of Western Australia, thanks to a contract award from Laing O’Rourke.

The Phase 1 Structural, Mechanical, and Piping package for the mine plant comes with a value of around A$6 million ($4.4 million) for fabrication works plus associated modularisation scopes, WestStar says.

The execution plan developed by Laing O’Rourke, the managing contractor, is based upon substantial preassembly and modularisation of the structural steel elements at Alltype’s Naval Base facility, in Western Australia (pictured). The contract win takes immediate effect with delivery and install dates up to January 2021, it said.

“The works to be performed leverage off the core competencies of the company with similar delivery strategies utilised for oil and gas, petrochemical and infrastructure projects in the past,” WestStar said.

Koodaideri is a greenfield mine development, around 35 km northwest of the Yandicoogina mine in the East Pilbara mining region. The mine will initially be developed as a nominal 43 Mt/y high-grade, dry processing operation. First production is expected in late 2021.

WestStar acquired Alltype Engineering last year in a deal that involved an upfront payment of around A$5.9 million, along with a deferred consideration subject to Alltype achieving its 2020 financial year targets.

Alltype Engineering Managing Director, Kelvin Andrijich, said: “Alltype Engineering undertook a significant strategic shift in direction in 2017, focusing on multi-discipline construction solutions, technology partnerships with OEMs and leveraging off the well-established industry exposure developed over 35 years of operation. This strategy continues to unfold with our established local fabrication capability and by building upon successive projects delivered of increasing scale and complexity with existing and new clients.

“The support of our new owner, WestStar Industrial, allows the group to execute larger contracts previously constrained by working capital, as well as start to expand the operational footprint to the east coast of Australia where there is further market opportunity for this offering.”

WestStar ‘accelerates’ towards increased revenues with Alltype Engineering purchase

WestStar Industrial says it has executed a share sale agreement to acquire 100% of Alltype Engineering Pty Ltd, effectively diversifying and expanding its capability to provide end-to-end project solutions.

The company has agreed to pay around A$5.9 million ($4.04 million) upfront, along with a deferred consideration subject to Alltype achieving its 2020 financial year targets, WestStar said.

Alltype will provide WestStar an integrated offering through workshop fabrication, site installation, construction and maintenance services to a broad range of industries, in both the private and public sectors, it said.

Established in 1985 and with a current workforce of around 120 personnel, Alltype is a leading provider of workshop fabrication, site installation, construction and maintenance services to the oil & gas, water, power generation, infrastructure, mining, resources, utility, petrochemical and defence industries, in both the private and public sectors across Australia.

Its customers include BHP and Rio Tinto, among others, and it has a 7,000 m² fully-equipped workshop for steel fabrication.

WestStar Group CEO, Robert Spadanuda, said the acquisition broadens WestStar’s horizons and will “significantly accelerate” it towards increased revenues and earnings.

“With the addition of Alltype, continued growth in SIMPEC and continued execution of our growth strategy, we look forward to continuing to build a strong, diversified, engineering company,” he said.

SIMPEC to help with plant handover at Tianqi Lithium’s Kwinana plant

SIMPEC has added to its existing scope of works at the Tianqi Lithium-owned lithium hydroxide process plant (LHPP1) in Kwinana, Western Australia, with a new A$5 million ($3.34 million) contract to carry out structural, mechanical, piping, and electrical and instrumentation work at the operation.

This work, which comes on top of the pyromet piping installation contract the WestStar Industrial subsidiary was awarded by lead contractor MSP Engineering in 2018, will assist Tianqi with the handover of the plant to the operations team.

SIMPEC Managing Director, Mark Dimasi, said: “This award is a true reflection of our team’s performance to date on the LHPP1 project. An outstanding effort by everyone involved. I personally would like to thank all the MSP Engineering personnel for supporting our team over the past 10 months and Tianqi Lithium Kwinana for backing the incumbent SIMPEC site team.”

This new contract builds on previously announced extensions during the company’s 2020 financial year and brings contract awards received during the first half of this period to circa-A$23 million.

BHP engages WestStar’s Precast Australia for South Flank iron ore project work

WestStar Industrial subsidiaries SIMPEC and Precast Australia have won more contracts in Western Australia, with a notable win at BHP’s South Flank iron ore development in the Pilbara.

The two have been awarded A$3 million ($2.1 million) in contracted work, with engineering contractor business SIMPEC receiving circa-A$2 million in extensions to its current contracts in the state.

SIMPEC didn’t name any specific contracts within its statement, but the company recently won a contract to construct the 25 MW diesel power generation facility at Fortescue Metals Group’s Eliwana iron ore project in WA.

Prefabricated concrete construction business Precast Australia, meanwhile, has been awarded a contract by Georgiou Group to supply wall panels for the construction of a Costco Warehouse in the Perth Airport precinct. It has also been engaged directly by BHP to initially supply and deliver 200 precast concrete elements to South Flank. The company said there was an opportunity for substantial growth in this contract award.

In addition, Precast Australia was awarded contracts by RHG, Zorzi and Shelford, with total contracts awarded being circa-$1 million.