Mining Projects in Western Australia Part 2

The following are key projects either underway or due to commence in Western Australia.

RAPID GROWTH PROJECT 6

Operators:  BHP Billiton

Location:  Pilbara

Timeframe:     2 years, increased output achieved by 2013

Cost:   US$4.8b

Employment: More than 2,000 construction and 600 operational jobs

Status:   In addition to the significant expansion associated with the Rapid Growth Project stage 5, BHP Billiton is pushing ahead with its iron ore expansion plans in the Pilbara, agreeing to spend an additional $US1.93 billion ($2.15 billion) to increase output at its Jimblebar mine.  The company said the funding forms part of its Rapid Growth Project 6 in the Pilbara region designed to increase the annual capacity of the operations to 240 million tonnes by 2013, and will be used to procure long lead time items and detailed engineering for port, rail and the Jimblebar mine expansion.

Awarded Contracts and Employment Opportunities include:  

• Monadelphous – will provide structural and mechanical pre-works at Nelson Point as part of Stage 6 in addition to securing a significant contract for major works, including structural, mechanical and piping works for the supply, preassembly and installation of the stockyard and train load out facilities and modifications to the existing Ore Handling Plant 2 (OHP2).
• Joint venture partners, RCR Tomlinson and Laing O’Rourke - to design and construct primary and secondary crushing facilities, including overland conveyors. 
• FASTis a joint venture between Fluor Australia and SKM to develop and deliver iron ore projects to meet the global market demand forecast for BHP Billiton’s Iron Ore business. The joint venture will provide program management of all projects and selected EPCM (engineering, procurement, construction and management) services.
• John Holland.
• Ausco Modular– installed a 1200 bed village and associated facilities at Yandi in the north of Western Australia.  Work started on the village in July 2009 and was completed in January 2010.
• A Macmahon Holdings and Leighton Contractors 50/50 joint venture has been awarded a contract for the double tracking of sections of the Mount Newman rail line, plus the construction of more than 1,000 camp rooms complete with kitchens and recreation facilities, 1.2m cubic metres of earthworks, construction of ten new dual track bridges and installation of 840kms of fibre optic cable.  The joint venture is expected to employ more than 1,100 workers over the life of the project and will encourage a high level of indigenous participation. NRW was recently awarded a $200m work package as part of the rail duplication contract.
• A subsidiary of the Norfolk Group – O’Donnell Griffin Rail - has secured a contract for railsignallingrelocation and installation.
• United Group Resources; awarded a $A165 million contract for the fabrication and on-site installation of structural steel and mechanical equipment associated with transfer stations, conveyors and shuttles.
• Downer EDI.
• Thiess; access road upgrade and rail formation.
• Rock on Ground Pty Ltd (ROG); controlled drilling and blasting works.
• AGC; awarded a $100m contract for the structural, mechanical, piping and heavy haulage at the company’s Yandi operation.  The scope of work includes construction of an Ore Handling Plant, stockpile and conveyor systems; fabrication of 2,000 tonnes of conveyor components; and transportation of 43 structural modules - ranging from 100 to 300 tonnes - from Port Hedland to the Yandi mine site.

SINO IRON ORE PROJECT

Operators: CiticPacific Mining

Location:  85kms south of Karratha

Timeframe:  First production expected in 2011 with a 25 year mine life

Cost:  US$30b

Employment:   More than 4,000 construction jobs and 600 operational jobs

Status:   CiticPacific is developing the first magnetite project of this scale in Western Australia and, when complete, will be one of the world’s largest mines.   Construction is underway with more than 2,500 people working on site.  Four accommodation villages are operational to house more than 1,800 people.

Awarded Contracts and Employment Opportunities include:  

• NRW Civil and Mining and VDM Group Joint Venture; $240m contract to complete the drilling, blasting and excavation of more than 6.5 million cubic metres of rock, employing a workforce of 500 employees.   
• Austrian Energy and Environment.
• The construction contract for the project infrastructure was awarded to China Metallurgical Group Corporation (MCC), an international construction company. 
• The provision of general mining services has been awarded to Central Mining and Contracting Pty Ltd.
• John Holland will construct the marine works.
• Thiess has been awarded Scaffolding services and will construct roadways.
• Southern Cross Electrical Engineering; early phase electrical works at Cape Preston.
• VDM Group’s Wylie & Skene are constructing the accommodation village.
• Downer EDI.
• Boart Longyear.
• DTMT Construction.
• BGC.
• In a move that will benefit the Indigenous workforce at Cape Preston, CPM has awarded a bus contract to the Wong-Goo-Tt-Oo group.  Since early May, Wong-Goo-Tt-Oo has been providing a daily bus service that transports Indigenous employees from Roebourne to site and return. In addition, from the start of July, Wong-Goo-Tt-Oo will run an on-site truck service, which will take care of pick-up, delivery and disposal of stores, recycling and waste.

SOUTHDOWN IRON ORE PROJECT

Operators: Grange Resources

Cost:  $1.6bn

Location:    90kms northeast of the Port of Albany

Timeframe:      2 year construction timeframe from FID, anticipated in first quarter of 2012

Employment:  1,000 construction and 600 operational jobs

Status:    The Project has received approval from the state government and continues to move through the pre-feasibility process.The green light was also given for the proposed pipeline infrastructure that will accompany the mine.  At Albany Port, the construction of a new berth will be required and the Albany Port Authority will reclaim land to accommodate a concentrate storage facility and ship loading infrastructure. Widening of the existing shipping channel into Princess Royal Harbour and extending the channel into King George Sound is also proposed to facilitate the access of capesize vessels.  Grange intends to export the Magnetite concentrate from Albany to a new pellet plant located at a suitable location. The design capacity of the pellet plant is 6.8 Mtpa. These pellets are forecast to be suitable for use in producing Direct Reduced Iron (DRI).  The life of operation is 30 to 50 years and the workforce will be residential (ie no FIFO offered).