[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.
RELATED TOPIC: Australia is primed to cash in on uranium
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.
RELATED TOPIC: Rio Tinto aims to cut costs by $1 billion but how?
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.
RELATED TOPIC: LNG surpassing coal and iron ore in Australia
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.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.