[IMAGES] Rio Tinto and Chevron extend deals with Tempo Australia
As our sister site Business Review Australia reported, Aussie resource services company Tempo Australia recently secured new contract extensions with mining behemoth Rio Tinto and energy giant Chevron that will total about $50 million.
Tempo received an extension with Rio Tinto at its 353 million ton per annum Cape Lambert Port B Expansion Project in the Pilbara region of Western Australia. The $13.4 million contract will see Tempo provide structural, mechanical and piping miscellaneous works as well as commissioning support for Rio Tinto’s expansion work at the port.
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It is Tempo’s first major contract with Rio Tinto.
“We’re pleased to have been given the opportunity to execute the miscellaneous SMP and commissioning support works at Cape Lambert,” said Tempo general manager Daniel Hibbs.
Tempo reported sales receipts of $15.3 million and operating cash flows of $1.9 million during the June 2015 quarter. Established in 2011 to provide Structural Mechanical Piping (SMP) services to the mining, oil and gas sectors, Tempo works with clients to execute projects safely and deliver them both on time and within its budget.
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In addition, the change to Tempo’s existing sub-contract at Chevron’s Gorgon Liquefied Natural Gas (LNG)Project on Barrow Island in Western Australia refer to the arrangement of Managed Structural, Mechanical and Piping, Electrical & Instrumentation (SMPE&I) craft labour for construction, pre-commissioning and commissioning services to the Mechanical, Electrical and Instrumentation (ME&I) contractor on the project.
“The award of these major contract extensions in what continues to be challenging market conditions demonstrates and showcases Tempo’s ability to provide our portfolio of bluechip clients with solutions based on our core values of productivity, performance and safety, and we look forward to continuing to build long term relationships with these key clients,” said Carmelo Bontempo, executive chairman of Tempo Australia.
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Tempo’s secured requisition for additional personnel to stay on Barrow Island will increase its workforce under the company’s contract despite how difficult it is for workers to get beds on the island. However, Chevron has now approved the requisition for additional bedspace.
With the secured variations, nearly 400 Tempo employees are now on site at the Gorgon Project. When the contract was initially granted in May 2015, there were 100 members of personnel on the grounds.
The $55 million project is about 90 per cent complete, but is still months behind schedule. Chevron’s goal was to ship its first LNG cargo by the end of 2015, but acknowledged it may not happen until 2016.
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”