Market Update September 2020 Market Update - September 2020 2 WA Project Update At TR we pride ourselves on being the Partner of Choice for Technical Professionals. We believe that a key part of our role is to ensure that our clients and candidates are kept up to date with the latest developments in our Industry. In order to keep our Trusted Partners up to date we have reviewed and compiled a summary of major projects. These projects are the lifeblood of the economy and they enrich the lives of all West Australian’s. WA has many natural advantages to protect it from the worst of the health effects of COVID-19, the decision by both state and federal governments to grant an exemption to mining to keep them open has also meant that we have been shielded from the worst effects financially as well. COVID-19 has still had a negative impact and certainly the impositions of longer rosters and tighter controls has provided challenges to both the site and Perth based workforce. Thankfully, the majority of our industry was able to transition to working from home arrangements meaning that they were able to stay working and productive. With the difficulty in engaging people from the east coast on a FIFO basis the demand for people in WA has continued to grow. The majority of our clients in the Iron Ore space are enjoying record prices for their product and they are looking to continue to complete their greenfields projects and are investing in existing infrastructure. We have also seen increased activity in base metals such as copper/gold and with signs that the Lithium market is starting to turn around the picture for WA mining is looking positive. Unfortunately, the Oil and Gas sector has had to deal with the double impact of both the Corona virus and a depressed oil price globally. This has resulted in widespread job losses across the operators and a slowing down or putting on hold of many of the major projects. The State Government is set to fast-track $2.3 billion worth of projects to help reboot the COVID-19 hit economy. With a massive pipeline of road works and their Metronet program forming the centrepiece of the works. If you are interested in seeing the quality of candidates, we have in our network then please call me on 0422 848 865 or email at [email protected] Alternatively, if you are looking for your next opportunity, please get in touch with the myself for a confidential discussion. techresources.com.au Mining Koodaideri The pre-feasibility study project concept included a 40Mtpa capacity dry crushing and screening plant, Non- Location: Pilbara Process Infrastructure (NPI), product stockyards, rail loop Project Owner: Rio Tinto and load-out as well as a 170km rail link to the main line. Project Engineering Consultancy: Worley & Calibre The process plant features the construction of the Projects (signalling and communications) following major facilities: Construction Contractors: • Primary Crusher apron sized for up to 300 tonne class Primero ∙ NPI ∙ $115 million haul trucks • Dual truck tipping points and ROM dump hopper of Pindan ∙ Camp Construction ∙ $90 million 600 tonne live capacity and discharge surge bin of NRW ∙ Bulk earthworks and the Southern rail ∙ $137 600 tonne million • Direct feed crushing facility complete with dump Acciona Clough JV ∙ Great Northern highway road over rail hopper, gyratory crusher, service crane, rock breaker bridge and discharge apron feeder onto the overland Project Value: ~$3.5 billion conveyor Project Status: Detailed design and construction. • Conveyors feeding a coarse ore fixed stacker • Primary crushed ore stockpile with 25,000 tonne live Project Status: The project is an open cut iron ore mine storage and reclaim with two apron feeders and associated infrastructure including railway, roads, • 7-bay screening plant with shuttle fed, bins, feeders, administration buildings, water supply infrastructure and and screens accommodation camps. • Allowance for a future 8th product screening bay in Koodaideri has an estimated mine life of 30 years and the design is expected to produce up to 70Mtpa of iron ore. It is Rio • Two bay secondary crusher facility with bins, belt Tinto’s first-ever ‘intelligent mine’, with autonomous feeders and MP1250 type secondary crushers drilling, haulage, and rail transport. All designs are digital • Sample plants – cutters, conveyors, and equipment and first being built as 3D models, to become digital twins for sampling lump and fines for maintenance once the elements have been built. • Stockyard with two slewing and luffing stackers and a Aimed to be the smartest, safest, and most efficient mine rotary reclaimer they have ever constructed. Development is expected to • Volumetric train load-out. The major facilities are require 2000 employees for construction and will provide linked by conveyors capable of providing an average a further 600 permanent jobs during operation. 43 Mtpa SOP. More detail on the major facilities is provided in the following sections. techresources.com.au Market Update - September 2020 4 Koodaideri Stage 2 Western Turner Syncline Stage 2 Location: Pilbara Location: 35km North-West of Tom Price Project Owner: Rio Tinto Project Owner: Rio Tinto Project Engineering Consultancy: Worley Project Engineering Consultancy: Calibre Projects Construction Contractors: TBA (Brownfields) Mondium (Greenfields) $400 million Project Value: ~$3.5 billion Construction Contractors: TBA Project Status: Pre-feasibility study Construction Period: First quarter of 2020 Project Details: Phase 2 of Koodaideri could increase Project Value: ~$1 billion annual capacity to 70 million tonnes, the pre-feasibility Project Status: Construction study is ongoing. There are significant innovations in the Project Details: scope including: Brownfield • A digital replica of the processing plant, accessed in Project outcomes include the construction of 13km real time by field workers haul road and all non-process infrastructure for WTS2 • Fully integrated mine automation and simulation mine, Drill and blast / load and haul over 4 years, 28mt systems road train haulage of high-grade iron ore from mine to • Advanced automation including an automated processing. Project will be in operation for over 4.5 years workshop and will produce 7Mtpa of ore. • Numerous data analytics capabilities and control loops to optimise production and reduce downtime. The proposal will comprise of an infrastructure corridor (approximate length of 12 km) linking B1 to the S10 mine Koodaideri will feature technology already in use across site, including a conveyor system, light and heavy vehicle Rio Tinto, such as autonomous trucks, trains, and drills, access roads, above‐ground power lines, water pipelines and implement systems connecting all components of and communications. the mining value chain for the first time. The mine support infrastructure (located predominantly The development will consolidate everything Rio Tinto near B1) will include primary crushing facilities, ROM has learned from its studies into finding advanced ways pad, workshops, fuel storage/refuelling facilities, to extract minerals while reducing environmental impacts waste disposal facilities, explosives storage facility, and improving safety, known as the Mine of the Future™ communications infrastructure, heavy and light programme. vehicle access roads, power distribution infrastructure, administration facilities, and other ancillary facilities as required. Greenfields The investment into the Western Turner Syncline Stage 2 will add to the existing mine site. The outcome will include the construction of a new crusher and a 13-km conveyer. The new conveyor system is set to help lower the greenhouse gases being produced by the existing road haulage system by 3.5% The existing haul truck fleet will be fitted with Autonomous Haulage System (AHS) technology as of 2021 to enable autonomous operations at WTS2. The investment into WTS2 is set to help sustain the existing workforce of Rio Tinto’s Greater Tom Price production hub which will exceed 1000 people at the peak of construction. Production of the first ore form the new crusher is scheduled for 2021. techresources.com.au Market Update - September 2020 5 West Angelas (Deposit C, D and G) Robe Valley (Mesa H and Mesa B&C Location: Pilbara Location: Pilbara Project Owner: Rio Tinto (53%), Mitsui (33%), Nippon Project Owner: Rio Tinto Steel (10.5%) and Sumitomo Metal Industries (3.5%) Project Engineering Consultancy: Calibre Projects Project Engineering Consultancy: Worley Construction Contractor: Multiple small contractors, main Construction Contractor: BGC Contracting ∙ Bulk package yet to be awarded. earthworks ∙ $100-$200 million CAPE ∙ Miscellaneous Services ∙ $12 million NRW ∙ Infrastructure ∙ $100 million CPB Contractors ∙ Bulk earthworks ∙ $150 million Monadelphous ∙ SMP ∙ $100 million Project Value: ~$2.15 billion Project Value: ~$600 million Project Status: Detailed design Project Status: Detailed design into construction Project Details: Mesa H – Located approximately 16km execution. south west of Pannawonica the Mesa H project proposes Project Details: The expansion to the existing mine is set the development of above and below water table cut to increase production capacity from 29 million tonnes of iron ore pits, Including water management infrastructure iron ore to 35 million tonnes of iron ore a year. The mine and other associated infrastructure. The proposal is to life will be extended to approximately 2030. sustain production from the existing