The dotted line: January’s biggest contracts

contracts

Keep up with the latest and largest contracts from across the mining sector, including at Stanmore Resources, BHP, South32 and more.  

Stanmore Resources welcomed a new statutory coal mining operator in EPSA Pacific to the Isaac Plains Complex near Moranbah, Queensland.

The five-year contract was worth $564 million as Stanmore ramps up the Isaac Downs mine to full production while beginning an owner-operator model at the coal handling and preparation plant (CHPP).

“This project will mean mining jobs for another 10 years, including for the 300 mine workers currently at Isaac Plains, as well as jobs completing rehabilitation in the Isaac Plains East area until 2025,” said Resources Minister Scott Stewart.

Isaac Downs was approved for construction and operation in July 2021, at a rate of 2.5 million tonnes per annum over 10 years.

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BHP chose a CIMIC Group subisidiary to debottleneck Nelson Point at the Port of Port Hedland, Western Australia, under a contract worth $100 million.

CPB Contractors will deliver a structural, mechanical, piping, electrical and instrumentation package at the Port Hedland, with works to begin this year to conclude in 2023.

Past CIMIC Group/BHP contracts have included Thiess’ $110 million mining services at BHP Mitsubishi Alliance’s (BMA) Caval Ridge coal operation, and UGL’s $180 million maintenance and shutdown services at BMA’s Queensland coal mines.

“We’re pleased to be supporting BHP with this project. Our mining and resources experience and history in the Pilbara means we can collaborate on the project’s high standards of safety and quality,” said CIMIC Group executive chairman Juan Santamaria.

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South32 and KCC Chartering signed a contract of affreightment to supply the Worsley Alumina refinery in Western Australia with six years’ worth of caustic soda.

The contract will see the companies collaborate to reduce emissions in the delivery of the caustic soda, including a sustainability framework and established trajectories for annual carbon reductions targets.

South32 chief human resources and commercial officer Brendan Harris said this partnership would go a long way to see South32 achieve its goal of net-zero operational carbon emissions by 2050.

“It’s partnerships like these that contribute to the decarbonisation of our value chain and promote the responsible production of commodities needed in a low-carbon world,” Harris said.

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Solar power was a big winner in January, as both Glencore’s Mount Isa Mines (MIM) and Calidus Resources signed solar farm contracts to power their respective mining operations.

CIMIC Group company UGL was contracted for the design and construction of a second stage to the 88-megawatt (MW) Mica Creek solar farm in Mount Isa, Queensland, as well as a substation and transmission line to be operated by APA Group.

The Mica Creek solar farm will help to power MIM’s copper operations while bringing APA’s Mount Isa generation fleet well below Australia’s average emissions intensity.

Meanwhile, Calidus signed Zenith Pacific to construct a 4MW solar farm with a 3.5MW battery energy storage system to power the Warrawoona gold project in Western Australia’s East Pilbara district.

Zenith is already constructing an 11MW gas-fired power station at Warrawoona under a power purchase agreement (PPA).

The solar farm will be constructed in the second half of 2022 and will feed into the distribution line between the power station and accommodation village.

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