To be on the panel means that most commercial terms and conditions are agreed, and capability proven, for an array of project opportunities the client has in their pipeline. It allows the clients to engage to get projects awarded and commenced promptly*. For certain packages this may mean that the company can be contracted without having to go through any tender process where rates have already been agreed**.
Civmec Awarded BHP Site Engineering Panel
Civmec has been accepted onto BHP’s Western Australian iron ore operations’ site engineering panel of contractors. This is a three-year contract with an option for a two-year extension and allows Civmec to tender for maintenance and capital upgrades across BHP’s Western Australian Iron Ore operations in the Pilbara region. These include an integrated system of four processing hubs and five mining hubs, connected by more than 1,000km of rail infrastructure and port facilities.
Civmec Awarded Rio Tinto “Umbrella” Services Agreement
Civmec has been awarded an “umbrella” services agreement to provide construction services for the delivery of sustaining capital projects for Rio Tinto facilities across multiple sites. This is a three-year contract with options for extension and allows Civmec to provide structural, mechanical, piping, earthworks, civil, non-processing infrastructure and any other ancillary works across the Yarwun Refinery, Boyne Island Smelter and Weipa sites on the east coast of Australia. This contract has provisions that allow for future inclusion to other Rio Tinto site locations across other Australian states.
Growing Client Base
Civmec is aware of the need for a wider client base to ensure consistency of employment for its maintenance workforce and overall sustainability for the division. Significant inroads towards achieving this have been made with increased existing client engagement and the commencement of new opportunities with others including:
Roy Hill – The existing relationship with Roy Hill has strengthened over the last 12 months to include additional services to Civmec’s multidisciplinary maintenance team including scaffolding, rope access and non-destructive testing. The scope of work has also diversified to encompass more specialist tasks across both port and mine site facilities, all resulting in an increase in personnel numbers required on site. The Roy Hill operations consist of a conventional open pit, bulk mining operation from multiple production benches, a 60million tonnes per annum wet processing plant, a 344km single line, heavy haul railway to port and a two-berth iron ore port facility at Port Hedland.
Talison Lithium – Civmec’s maintenance and shutdown team regularly provides multidisciplinary services to the Greenbushes mine site and lithium processing facility. Civmec is now undertaking a significant portion of the regular shutdown activities on a monthly basis. Talison Lithium’s lithium mining and processing operation is located directly south and adjacent to the town of Greenbushes in Western Australia. The site comprises a number of open cut mining pits for spodumene (lithium mineral) and leading-edge lithium concentrate production facilities.
Newmont – Civmec recently completed a package of work at Newmont Boddington (course ore stockpile bin wall replacement) with successful outcomes for safety and productivity performance. This has opened engagement between the parties for further works to be awarded under competitive tender. Newmont Boddington is Australia’s largest gold producing mine and is located 130km southeast of Perth in Western Australia.
Civmec has also carried out some capital upgrade works for BHP-Nickel west and recently received a Master Service Agreement from IGO to cover project and maintenance work across their lithium facilities. Civmec has also been granted an extension for its existing Alcoa Calciner Maintenance Major Overhaul and Repair Services Contract as well as providing regular maintenance support to Karara Mining’s magnetite mine, which is located 200km southeast of Geraldton in Western Australia.
Civmec’s Chief Executive Officer, Mr. Patrick Tallon, said: “We are delighted to have secured a panel position with BHP on the west coast and with Rio Tinto via an umbrella agreement on the east coast of Australia and are very confident this advancement will go a long way towards achieving our strategic growth plans for our maintenance and capital works division and paving the way for recurring revenue growth. It’s pleasing to secure a contract extension with Alcoa and increase scope offering to another of our long-term clients, Roy Hill. While contracts with our new clients may initially only require relatively small teams, the engagements represent a definite opportunity for growth and expansion with them and others as we move forward.”
*(noting that the Construction Services Agreement is non-exclusive).
**(note: procurements made under the Construction Services agreement will be competitively tendered amongst the Panelists, and where required other contractors, in accordance with internal governance requirements, and evaluated to ensure the successful contractor has the requisite capability to undertake the works)
