Construction is underway at Rio Tinto's Silvergrass mine.

Contractors boosted by mine projects

Friday, 9 June, 2017 - 15:33
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Local contractor Primero Group is set to win its third major contract on a mining project this year while RCR Tomlinson has geared up to supply Rio Tinto’s new iron ore mine.

Primero has executed a letter of intent with Sinosteel MECC, the lead contractor to Northern Minerals' Browns Range project in the Northern Territory.

Its scope of work includes the concrete, mechanical and electrical installation, testing and commissioning of the pilot process plant, which will produce the heavy rare earth mineral dysprosium.

Primero managing director Cameron Henry said his firm has been working on the project for some time and he was pleased to sign the letter of intent.

Mr Henry said it strengthened Primero’s push into the technical minerals market.Primero is due to start work at Brown's Range in the third quarter of this year, after the commencement of mining.

The Northern Mineral deal comes three weeks after Tawana Resources announced it had engaged Primero to work on its Bald Hill lithium and tantalum mine in the eastern Goldfields.

Primero’s scope includes completing detailed design and engineering and ordering long-lead items for the processing circuit.

Its third major win this year was as a sub-contractor to Sydney-based RCR Tomlinson to work on Pilbara Minerals’ Pilgangoora lithium project.

RCR was selected as lead EPC contractor for the project, and chose sub-contractors Primero and Minnovo to provide technical and engineering support.

Meanwhile, RCR has ramped up its operations at Rio’s Silvergrass mine, which is being developed at a cost of $A468 million.

On a site visit yesterday, Rio said there were 510 people working on the project, which was 35 per cent complete.

Current activity includes the installation of steel modules, which will form the foundation for the ROM pad and primary crusher.

The use of steel modules, rather than concrete, means Rio can shift the modules when mining shifts to a new pit.

The project also includes construction of a 9-kilometre conveyor and associated power line to the existing processing plant at Nammuldi.

A Rio spokesman said one of the reasons RCR was selected was because much of the steel fabrication will take place at its Bunbury workshops.

The Silvergrass East mine will have a capacity of 20 million tonnes.

It follows an interim road haulage operation that was able to deliver up to 10mt pa.

Rio has already taken delivery of a fleet of Komatsu haulpak trucks.

The distinctive lightweight trays on these trucks are able to carry loads of 320 tonnes each, an increase of 20 tonnes on the load previously carried by each truck.

The Silvergrass fleet will add to the number of autonomous trucks at Rio’s Pilbara operation, which the company said were 15 per cent more productive than manned trucks.

As well as RCR, other contractrors to have worked on Silvergrass include Decmil Group and indigenous group Eastern Guruma.

Rio has estimated new developments underway at Silvergrass, and at its existing West Angeles and Yandicoogina mines, which are designed to sustain production volumes, will create about 1,000 construction jobs.

The journalist travelled to Silvergrass as a guest of Rio Tinto.

 

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