CONTRACT MINING
and its Siilinjärvi mine produces the world ’ s purest phosphate for use as raw material in fertiliser . Tapojärvi is a Finland-based service provider that has carried out work with Outokumpu ( Kemi ), LKAB and Boliden ( Kevitsa ).
The goal of the alliance is continuous development of mining activities , and Sandvik ’ s new solutions increase production sustainability by improving drilling safety , productivity and fuel efficiency – ultimately reducing emissions .
Sandvik launched the new Top Hammer XL drilling system globally in March 2021 and Tapojärvi became the first company to begin using the technology at the Siilinjärvi mine . The components of the system – a new Pantera DP1600i drill rig , new RD1840C rock drill and new LT90 rock tools – are all optimised to work seamlessly together to achieve exceptional drilling results , the OEM says .
Tapojärvi will operate all six Pantera DP1600i drill rigs remotely with the AutoMine Surface Drilling automation system designed for Sandvik ’ s i-Series surface drill rigs . The rigs will initially be operated from remote control stations near the drilling area and , at a later stage , from the mine control room .
OptiMine for Surface , a new solution for optimising and analysing surface drilling processes , will be used by the alliance partners for continuous improvement of mining operations .
Fleet management foray
In Indonesia , a major open-pit contract mining market , PT Bukit Makmur Mandiri Utama ( BUMA ) recently awarded Hexagon ’ s Mining division with an eight-year fleet management project .
Delta Dunia Makmur acquired BUMA in 2009 and has since been overhauling it into a more streamlined corporation . It holds approximately 20 % of the market share and provides coal mining services to many of Indonesia ’ s largest and longest-running names in the coal industry .
As part of this project , Hexagon successfully deployed 150 units of HxGN MineOperate OP Pro to BUMA ’ s IPR site operation in Indonesia with the system optimally running within three months , according to the company .
HxGN MineOperate OP Pro , Hexagon ’ s Mining division says , offers open-pit mines highprecision guidance for dozers , drills and loading equipment . The solution improves bench elevations , reduces dilution and decreases rework to improve site safety , efficiency and profitability .
Contract consolidation
Perenti – one of the main protagonists in the contract mining M & A story in recent years – acquired 100 % of the issued share capital of
DDH1 Limited , a surface and underground mining contractor , in early October .
DDH1 brings significant capability across a range of specialised surface and underground drilling services that complement Perenti ’ s existing service offering , enabling the company to benefit from increased scale and the ability to leverage the operational and financial strengths of both companies .
The transaction has seen Perenti become one of the largest drilling services companies globally , while having some 85 % its revenue base tied to production and resource definition ( rather than exploration ). It holds one of the largest drilling fleets , with over 190 modern rigs from DDH1 and 99 from Perenti .
North American Construction Group has also been increasing its market share in Australia of late and , in October , agreed on a contract to acquire MacKellar Group for an estimated C $ 395 million ($ 288 million ).
MacKellar Group , with its heavy construction equipment fleet , is an Australia-based provider of heavy earthworks solutions to the mining and civil sectors , with a reputation derived from decades of reliable performance , NACG says . The transaction will significantly expand NACG ’ s capability and allow the company to serve a highly valuable and diversified base of customers globally , it added .
The transaction followed NACG ’ s entry into Australia through the acquisition of DGI Trading Pty Limited in 2021 .
MacKellar , which counts Anglo American Australia and Bravus Mining and Resources as clients , will continue to operate and execute on its growth strategy , while delivering on its commitment of service to all its customers and partners .
It adds approximately 450 mobile heavy equipment assets ; 1,000 employees , including over 375 maintenance personnel ; and 15 operating projects across a variety of service offerings including contract mining , civil earthworks , dry and maintained equipment rentals and component rebuilds to NACG .
Joe Lambert , Chief Executive Officer of NACG , said : “ NACG has built a strong relationship with MacKellar over the past two-plus years . Given the operational and cultural similarities that our companies share , this acquisition is a rare and attractive opportunity .
Model attraction
The appeal of the contract mining sector has shone through in not only the M & A market , but also in a spate of new business for these service providers .
Capital , a leading mining services company that only recently ventured into the load & haul space with its flagship Centamin-Sukari contract , recently announced the award of a material drilling contract in Nevada , USA , with Nevada Gold Mines ( NGM ).
The three-year drilling services contract with NGM , a 61.5:38.5 Barrick and Newmont joint venture , spans a wide range of drilling services including diamond – both surface and underground – and underground reverse circulation .
The drilling spans several operations across NGM including underground diamond drilling in the Leeville underground mine within the Carlin complex , underground RC drilling in Carlin and diamond drilling at the Robertson project within the Cortez complex .
The contract will consist of nine rigs and will include equipment with advancements in automation for improved safety and efficiency , Capital said .
Portugal-based MOTA-ENGIL has been adding to its work roster in Africa with key contracts from Vedanta Zinc International , Managem Group and Rio Tinto Iron Ore Atlantic Ltd .
The first of those contracts , signed with a subsidiary of Vedanta Zinc International , is associated with the extension of a zinc project currently underway in South Africa , from 2.5 Mt / mth to 5 Mt / mth , which has been extended up to March 2030 .
The second contract , signed with a subsidiary of the Managem Group in Senegal , includes , among other tasks , the installation , operation and maintenance of facilities , installations , infrastructure , systems and equipment required to extract gold from a mine .
The last agreement is associated with the Simandou iron ore project , in Guinea , with the works to be carried out including the initial land movement for the establishment of access and for the future industrial facilities of a mine , as well as sedimentation basins , spillways and the implementation of erosion control measures .
In Australia , NRW Holdings Limited was recently issued with a Letter of Intent from Allkem Limited in respect to the contract for mining services works at the Mt Cattlin open-pit lithium mine in Western Australia .
The works to be performed under the contract include load & haul , drill & blast and material rehandling , with NRW using an existing fleet comprised of 200-250-t-class excavators and 150- t-class trucks together with ancillary plant .
Not too far from Mt Cattlin , Macmahon Holdings has sealed a load and haul services contract with Talison Lithium Australia for the Greenbushes lithium project in Western Australia following its selection as the preferred load and haul contractor for the project last year .
This contract involves open-pit mining activities of load and haul , and crusher feed , which commenced in July , for a seven-year period with an option to extend for up to two years . IM
50 International Mining | NOVEMBER / DECEMBER 2023