{"id":2594,"date":"2018-02-01T11:46:58","date_gmt":"2018-02-01T00:46:58","guid":{"rendered":"http:\/\/yinghuiinternational.com\/?p=2594"},"modified":"2018-02-02T09:25:27","modified_gmt":"2018-02-01T22:25:27","slug":"demand-for-mining-services-ramps-up","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2018\/02\/01\/demand-for-mining-services-ramps-up\/","title":{"rendered":"Demand for mining services ramps up"},"content":{"rendered":"<p>It was undoubtedly a better year for Australia\u2019s leading mining services companies in 2017.<\/p>\n<p>Improved commodity prices led to an increase in mining activity, meaning the expertise of the country\u2019s mining services contractors was in growing demand.<\/p>\n<p><em>Australian Mining<\/em>\u00a0takes a closer look at some of the companies that were awarded key mining contracts during 2017 in this two-part feature.<\/p>\n<p><strong>Ausdrill<br \/>\n<\/strong>Ausdrill\u2019s long-term relationships with mining clients in Australia and Africa continue to serve the company well. The Perth-based company\u2019s 2017 was highlighted by a series of contract extensions, as well as a few new contracts across both continents.<\/p>\n<p>Ausdrill finished off spring by announcing it had secured three extensions in the gold industry, including an extra three years of production drilling work with Evolution Mining at the Mungari project in Western Australia.<\/p>\n<p>Through its African Mining Services (AMS) subsidiary, the contactor was awarded a two-year extension worth $142 million at AngloGold Ashanti\u2019s Iduapriem gold mine in Ghana, while Resolute Mining extended its contract at the Syama operation until May 2018.<\/p>\n<p>Earlier in 2017, Ausdrill secured more than $200 million worth of contract extensions with two of its existing clients in the Goldfields region of Western Australia \u2013 Kalgoorlie Consolidated Gold Mines (KCGM) and Gold Fields.<\/p>\n<p>It was also awarded a three-year, $60 million contract extension to provide exploration drilling services at Gold Fields\u2019s St Ives and Granny Smith gold operations.<\/p>\n<p><strong><span style=\"color: #ff6600;\">BGC Contracting<\/span><br \/>\n<\/strong>BGC Contracting\u2019s 2017 was highlighted by the award of two major contacts, one in Western Australia and the other in New South Wales. BGC most recently won a five-year, $700 million contract by Idemitsu Australia Resources at the Boggabri coal mine in New South Wales.<\/p>\n<p>Earlier in the year, BGC secured a five-year contract worth more than $720 million at Arrium\u2019s Iron Knob and South Middleback iron ore operations near Whyalla in South Australia. The Arrium contract replaced an existing mine services contract BGC had with the steel-maker and iron ore miner.<\/p>\n<p>The Perth-based company topped off its year by taking out the\u00a0<em>Australian Mining<\/em>\u00a0Prospect Awards 2017 Contract Miner of the Year for the second straight time. The company was honoured for the collaborative model it has successfully applied to contracts with the likes of Arrium, Cliffs Natural Resources and now, Idemitsu.<\/p>\n<p><strong>CIMIC<br \/>\n<\/strong>CIMIC\u2019s mining and mineral processing divisions \u2013 Thiess and Sedgman \u2013 thrived for the Spanish-controlled company during 2017.<\/p>\n<p>Thiess\u2019 contract wins and extensions continue to be at the top end of town with the likes of BHP and Fortescue Metals Group awarding it with significant work.<\/p>\n<p>BHP, through its BHP Mitsubishi Alliance, awarded Thiess two contracts worth a combined $440 million. The contracts, at BMA\u2019s Caval Ridge and Peak Downs coal mines in the Bowen Basin of Queensland, will see Thiess deliver mining services for specific components of work.<\/p>\n<p>Fortescue extended its mining services contract with Thiess at the Solomon Hub in the Pilbara. The $650 million contract extension strengthens a relationship between the two companies first formed at the site in 2011.<\/p>\n<p>Also in coal, Thiess was awarded a $189 million contract extension to continue to operate the Jellinbah Plains open pit at the Jellinbah East coal mine in central Queensland.<\/p>\n<p>Thiess was active in Indonesia, winning a $437 million contract at the Gunung Bara Utama (GBU) coal mine and a $300 million contract with Kaltim Prima Coal (KPC) at the Sangatta coal mine.<\/p>\n<p>Meanwhile, Sedgman backed up its $107 million EPC contract win at Heron Resources\u2019 Woodlawn zinc-copper project in the first half of the year with two new agreements in the east coast coal industry.<\/p>\n<p>Stanwell Corp awarded Sedgman a $6 million engineering, procurement and construction (EPC) contract to deliver a tailings dewatering facility at the Meandu mine coal handling and preparation plant in Queensland.<\/p>\n<p>Sedgman then won contracts at QCoal Group\u2019s Byerwen coal mine in Queensland worth almost $100 million. The contractor is delivering a stockpiling and train load-out facility, and a coal handling and processing plant at Byerwen through two engineering, procurement and construction (EPC) contracts.<\/p>\n<p><strong>Civmec<br \/>\n<\/strong>Civmec announced plans to list on the ASX during 2017, a move that will add to its existing place on the Singapore Exchange. A listing on the ASX will complement the Perth-based company\u2019s strong portfolio of mining-related contracts in the country.<\/p>\n<p>In 2017, the company was active in the mining, oil and gas and infrastructure sectors. In mining, Civmec was awarded contracts or work extensions at a diverse range of projects in Western Australia.<\/p>\n<p>In June, Civmec announced it had received $90 million worth of contracts for resources clients, with the most notable a construction job at Alcoa\u2019s Pinjarra alumina refinery in WA. The company will undertake the engineering, procurement, delivery, construction, integration, commissioning and performance testing of a filter facility, materials handling system and supporting infrastructure at the refinery.<\/p>\n<p>Civmec, as part of the Amec Foster Wheeler Civmec Joint Venture (ACJV), was awarded a $298 million engineering, procurement and construction (EPC) contract at the Gruyere gold project in WA.<\/p>\n<p>The company also secured a contract to construct the civil component of the process plant at Altura Mining\u2019s Pilgangoora lithium project in the Pilbara.<\/p>\n<p><strong><span style=\"color: #ff6600;\">GR Engineering<\/span><br \/>\n<\/strong>Perth-based GR Engineering secured a series of contract wins in Western Australia during 2017, particularly in the state\u2019s gold sector.<\/p>\n<p>In April, Dacian Gold executed a $107.1 million EPC contract with GR at the Mt Morgans project in the Goldfields region. The work involves development of the Mt Morgans treatment facility and supporting infrastructure.<\/p>\n<p>GR also signed an agreement with Gascoyne Resources for an EPC contract for a minerals processing facility at the Dalgaranga gold project in the Goldfields.<\/p>\n<p>In June, GR secured another EPC contract, this time a $31.3 million deal with AngloGold Ashanti at the Sunrise Dam gold mine.<\/p>\n<p><strong>Downer<br \/>\n<\/strong>Downer\u2019s 2017 took a turn when Adani became the owner-operator of the Carmichael coal project in Queensland, effectively scrapping the letters of award the two companies had signed for construction and mining at the controversial operation.<\/p>\n<p>How Downer fills the void in work left behind by Adani\u2019s decision to go-it-alone at Carmichael is yet to be seen, but the diversified contractor did manage to bolster its order book in other areas during 2017.<\/p>\n<p>Downer was awarded a $400 million contract to provide mining services at the Gruyere gold joint venture project between Gold Fields and Gold Road Resources in Western Australia.<\/p>\n<p>The five-year contract involves construction of haul roads, stockpiles and other infrastructure; drilling and blasting; loading and haulage of ore and waster; run of mine feed; and technical services.<\/p>\n<p>Its joint venture with Ausenco is also bearing fruit, with OZ Minerals awarding the JV a $312 million EPC contract at the Carrapateena copper-gold project in South Australia.<\/p>\n<p>The Carrapateena scope of works includes engineering, procurement and construction (EPC) of a minerals processing plant, including the non-process infrastructure to support the operations.<\/p>\n<p>Downer Blasting Services (DBS) also won $240 million of work at open cut and underground mines in Queensland, New South Wales and Western Australia.<\/p>\n<p><strong>Macmahon Holdings<br \/>\n<\/strong>Macmahon (it hopes) put CIMIC\u2019s failed takeover attempt for the company behind it by winning lucrative contracts on both sides of the country during the second half of 2017.<\/p>\n<p>In Western Australia, Mamchaon won a mining contract worth at least $250 million at one of the country\u2019s most exciting new gold developments \u2013 Dacian Gold\u2019s Mt Morgans operation in the Goldfields.<\/p>\n<p>The five-year contract will see Macmahon provide drilling and blasting, loading, hauling and technical services.<\/p>\n<p>In Queensland, Macmahon executed a $350 million mining services contract at QCoal Group\u2019s majority-owned Byerwen coal mine in the Bowen Basin. The contract involves the provision of all open cut mining and bulk earthworks at the new mine near Glenden.<\/p>\n<p>Macmahon also pursued additional work in Indonesia\u2019s coal industry throughout the year.<\/p>\n<p><strong>Monadelphous<br \/>\n<\/strong>Monadelphous\u2019 diversified contract portfolio was bolstered from a mining perspective during 2017 with new contracts or extensions for maintenance and construction work.<\/p>\n<p>Most recently, Monadelphous secured maintenance and construction contracts in the resources and infrastructure industries worth a combined value of around $110 million.<\/p>\n<p>The work includes a three-year contract to provide shutdown maintenance, breakdown and repair services, minor projects and ad hoc services for BHP at Mount Arthur Coal in the Hunter Valley of NSW.<\/p>\n<p>In September, Monadelphous has secured new maintenance and construction work in the resources industry worth $220 million. The new maintenance work includes a two-year contract to supply fixed maintenance services for Rio Tinto at its Pilbara operations.<\/p>\n<p>Monadelphous was also active in the international mining industry, securing an agreement to provide services for the Shaft 1 and 2 surface infrastructure at the Oyu Tolgoi project in Mongolia.<\/p>\n<p>In the first half of 2017, Monadelphous announced it had secured $120 million worth of new contracts for resources companies, including Fortescue and BHP. The Fortescue work included two contracts, one for cranes services at FMG Solomon and Solomon Hub, and the other to provide services for subsidiary, The Pilbara Infrastructure. Monadelphous\u2019 contract with BHP involved upgrading a water treatment plant at the Mining Area C iron ore operation in the Pilbara.<\/p>\n<p><strong>NRW Holdings<br \/>\n<\/strong>NRW Holdings\u2019 2017 went from strength to strength, culminating with gold developer Gascoyne Resources official awarding it with a $324 million mining services contract at the Dalgaranga operation in the Murchison region. The six-year contract is for open pit mining services, as well as drill and blast operations and associated services.<\/p>\n<p>Perth-based NRW reported in August that its participation in the early contractor involvement process at OZ Minerals\u2019 Carrapateena copper-gold project in SA was nearing completion. The $111 million Carrapateena package one contract comprised development of an access road, tailings storage facility, quarry and an airstrip.<\/p>\n<p>NRW also acquired east coast mining services company, Golding Group, for $85 million during the year. As part of NRW, Golding was awarded a mining services contract at Fitzroy Australia Resources\u2019 Broadlea open cut coal mine in Queensland.<\/p>\n<p>To kick-start NRW\u2019s 2017 campaign, lithium developer Altura Mining awarded it with a $110 million contract for mine development and drill and blast services at its Pilgangoora project in February. The five-year contract includes the construction of mining infrastructure, development of mine haul roads, drill and blast services and load and haul production mining of ore and overburden.<\/p>\n<p><strong>RCR Tomlinson<br \/>\n<\/strong>Pilbara Minerals awarded the EPC contract for its Pilgangoora lithium operation to RCR Tomlinson in early 2017. Worth up to $148 million, contract involved the EPC of Pilgangoora\u2019s 2Mt\/y lithium-tantalum processing plant, including wet-and-dry circuit with concentrator, associated plant and commissioning of the mine. Pilbara cleared the way for construction to start on the plant in July.<\/p>\n<p>Fortescue awarded RCR with a $33 million contract to design, manufacture and construct a five-kilometre relocatable conveyor system for its iron ore operations in the Pilbara. RCR is leading the design, manufacture and construction of the conveyor system, which will be trialled at Fortescue\u2019s Cloudbreak mine.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It was undoubtedly a better year for Australia\u2019s leading mining services companies in 2017. Improved commodity prices led to an increase in mining activity, meaning the expertise of the country\u2019s mining services contractors was in growing demand. Australian Mining\u00a0takes a closer look at some of the companies that were awarded key mining contracts during 2017 &hellip; <a href=\"https:\/\/yinghuiinternational.com\/index.php\/2018\/02\/01\/demand-for-mining-services-ramps-up\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Demand for mining services ramps up&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[],"class_list":["post-2594","post","type-post","status-publish","format-standard","hentry","category-mines-and-quarry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-FQ","jetpack-related-posts":[{"id":2618,"url":"https:\/\/yinghuiinternational.com\/index.php\/2018\/02\/09\/mining-recovery-boosts-cimic-performance-with-new-contracts\/","url_meta":{"origin":2594,"position":0},"title":"Mining recovery boosts CIMIC performance with new contracts","author":"yinghui","date":"February 9, 2018","format":false,"excerpt":"Global contractor CIMIC has used improving market conditions in mining and minerals processing to help increase its 2017 profits by 21 per cent. The diversified company\u2019s mining and minerals processing divisions \u2014 Thiess and Sedgman \u2014 achieved growth last year, CIMIC reported, securing contracts and extensions in Australia and Indonesia,\u2026","rel":"","context":"In &quot;Clients&quot;","block_context":{"text":"Clients","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/clients\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1114,"url":"https:\/\/yinghuiinternational.com\/index.php\/2015\/11\/17\/mining-for-business-potential-with-as-a-service\/","url_meta":{"origin":2594,"position":1},"title":"Mining for business potential with As-a-Service","author":"yinghui","date":"November 17, 2015","format":false,"excerpt":"Mining companies across the world face challenging market conditions including price volatility, rising costs, and a lack of financing. According to the Australian Government\u2019s recent Resources and Energy Quarterly, a combination of weak growth in consumption and strong supply growth placed considerable downward pressure on commodity prices in the first\u2026","rel":"","context":"In &quot;Mines and Quarry&quot;","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1027,"url":"https:\/\/yinghuiinternational.com\/index.php\/2015\/10\/15\/mining-the-value-of-assets\/","url_meta":{"origin":2594,"position":2},"title":"Mining the value of assets","author":"yinghui","date":"October 15, 2015","format":false,"excerpt":"During the last couple of years mining services companies have had to rapidly adjust their strategies, shifting from a focus on growth to one of cost-control and cost-efficiency. The challenges facing the mining industry are well known. Declining commodity demand and falling prices have had a big impact on miners\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"WEB_Trucks-on-smooth-road-at-Hunter-Valley-Operations","src":"https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2015\/10\/WEB_Trucks-on-smooth-road-at-Hunter-Valley-Operations.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2602,"url":"https:\/\/yinghuiinternational.com\/index.php\/2018\/02\/02\/2020%e5%b9%b4%e6%97%b6%e7%9a%84%e7%9f%bf%e5%b1%b1\/","url_meta":{"origin":2594,"position":3},"title":"2020\u5e74\u65f6\u7684\u77ff\u5c71","author":"yinghui","date":"February 2, 2018","format":false,"excerpt":"THE NEAR FUTURE OF MINING: GLOBAL PREDICTIONS January 2018 Read the Full Analysis [PDF] WHEN ROBOTS RUN THE MINES PREDICTION 1 ROBOTS By 2020, robots will replace more than 50 percent of miners, and mining accidents will be cut by 75 percent. 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Under the agreement, the two companies will develop advanced analytics solutions to improve maintenance, safety, productivity and operational services of mining and rock excavation equipment.\u2026","rel":"","context":"In &quot;Big Data&quot;","block_context":{"text":"Big Data","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/big-data\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1225,"url":"https:\/\/yinghuiinternational.com\/index.php\/2016\/01\/19\/oil-and-gas-contractors-and-diamonds-australias-fastest-declining-industries\/","url_meta":{"origin":2594,"position":5},"title":"Oil and gas, contractors, and diamonds Australia\u2019s fastest declining industries","author":"yinghui","date":"January 19, 2016","format":false,"excerpt":"A new IBISWorld report has highlighted petroleum refining, contract mining, and diamond mining as the country\u2019s fastest declining industries in 2016. Petroleum refining is slated to shrink 16.7 per cent this year, with industry revenue to decline at compound annual rate of 7.7 per cent over the five years through\u2026","rel":"","context":"In &quot;Mines and Quarry&quot;","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts\/2594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/comments?post=2594"}],"version-history":[{"count":3,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts\/2594\/revisions"}],"predecessor-version":[{"id":2599,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts\/2594\/revisions\/2599"}],"wp:attachment":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/media?parent=2594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/categories?post=2594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/tags?post=2594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}