Suppliers Roundup (January 17, 2005)

SNC-Lavalin helps get Goro going

The Australian subsidiary of SNC-Lavalin Group (snc-t) has teamed with fellow contractor Foster Wheeler to help Goro Nickel design and build a US$1.8-billion nickel-cobalt project on the southern coast of New Caledonia. The contract is worth US$150 million.

Goro Nickel is 85%-held by Inco (n-t) and 15% by French government-owned Bureau de recherches gologique et minires. Inco Australia Management, a wholly owned subsidiary, is responsible for Goro’s development.

The joint contractors recently completed a study to determine the economic viability of extracting nickel from Goro laterites. In particular, the study identified ways to reduce capital costs at the Goro Nickel project.

“Goro can be a viable project at a reasonable capital cost, and we can help Goro Nickel make it a reality,” says Pierre Duhaime, executive vice-president of SNC-Lavalin.

The Goro mine is expected to produce 60,000 tonnes of nickel and 4,000 tonnes of cobalt annually, with construction slated to begin in early 2005 and last almost three years. The projected startup date is fall 2007.

Foster Wheeler is a wholly owned subsidiary of U.K.-based Foster Wheeler Energy.

Rio Tinto befriends Cat

Rio Tinto (rtp-n) intends to buy at least US$1 billion worth of equipment manufactured by Caterpillar (cat-n) as part of a deal to make Cat its primary supplier of ancillary mining equipment for the next five years.

The agreement covers certain classes of haulage trucks and support equipment, though specific terms were not disclosed.

“Our partnership allows us to combine both companies’ considerable expertise to reduce costs per tonne,” says Richard Benson, president of Caterpillar Global Mining.

The contract outlines costs to operate and maintain equipment, and provides for continuous technology and service improvements.

MHSA OKs Houghton fluid

The Mining Health and Safety Administration (MHSA) in the U.S. has approved the proprietary vegetable oil-based hydraulic fluid of Houghton International, a supplier of metal-working fluids and technology.

Cosmolubric B-230 is described as the first fire-resistant vegetable oil hydraulic fluid to meet U.S. federal regulations. It is biodegradable and possesses the lubricity associated with more expensive synthetic fluids.

The lubricant can be used on conveyor systems, hydraulic shovels, and other mining equipment.

P&H shovel heads to Elk Valley

Milwaukee, Wis.-based P&H MinePro Services will provide Elk Valley Coal with a 4100XPB shovel for use at the Fording River mine in British Columbia.

Elk Valley Coal will use the shovel to load metallurgical coal on to its 320-ton haulage trucks. The company already uses the shovel at the nearby Greenhills and Elkview coal mines.

Other P&H equipment already on site at Fording River include 4100A, 2800XP and 2800MKII machines.

P&H MinePro Services’ Canadian operations are based in Calgary, with warehouse facilities and technical support in British Columbia, Saskatchewan and Labrador.

P&H MinePro Services is the global distribution arm of P&H Mining Equipment, a supplier of electric rope shovels, large rotary blasthole drills, and walking draglines.