RESOURCE STOCKS

Mining contractor Pilbara Resource Group powering into new era

Best mates behind driving force

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Pilbara Resource Group’s Jonathan Winton undertaking a survey

Pilbara Resource Group’s Jonathan Winton undertaking a survey

The two best mates behind Pilbara Resource Group have built the Perth-based business from the ground up to become a sought-after mining contractor.

What helps set PRG apart is its pit-to-port and owner-operator mining experience, industry contacts and access to capital.

"We're a driving force in the contract mining and operating space," explains Scott Dryland, who started PRG with Scott Thompson.

PRG director Scott Thompson with Joanna Daglish on site
PRG director Scott Thompson with Joanna Daglish on site

The pair have decades of civil, mining and contracting experience between them, including work with leading miners such as BHP Billiton, Atlas Iron and Fortescue Metals Group.

PRG's projects have included civil earthworks, site facilities installations in the Pilbara, camp refurbishment for iron ore major Rio Tinto, and smaller-scale iron ore mining.

The privately-owned company has evolved over the years to focus on two core areas, mine development and mine operations.

The development stream covers everything from establishing a camp to processing plants, roads and bulk earthworks.

Then there is the mining operations arm of the business, which has also evolved.

"We've transitioned from being a typical contractor to tier one clients, into a mine operator and mine owner as well," Dryland said.

"Anything mining related, we do."

Top pick

Of the projects PRG has taken on to date, Dryland said the development of the Wiluna West C4 iron ore mine was one of the best.

"It's out of Wiluna, it's a stranded asset and we built it in record time, under budget," he said.

"It's just really top quality, every stakeholder that we take to that mine is blown away at the level of quality, safety and overall presentation of the site."

C4 was developed through an alliance with GWR Group, with PRG providing upfront capital under a profit-sharing arrangement.

Mining insight a point of difference

PRG has a number of small iron ore operations in the Mid West and Goldfields and Dryland said this experience distinguished PRG.

"Having our own mines gives us the insight to understand end-to-end what mining is really about," he said.

"A lot of contract miners who go in there and dig dirt out for a cost per ton don't understand the complexities of end to end. What seems to be a minor change here and there on grade, cycle times, tonnes or other, can have a major impact on the end result for the project. 

"So having that in-depth knowledge really matters.

"We've been exposed to really understanding what it's all about and how to have our clients' or our partners' best interests at heart."

Access to capital

A key differentiator is PRG's access to capital, enabling explorers to become producers through partnership arrangements.

"Exploration companies are great at finding resources," Dryland said.

"They're great at identifying new projects, but they don't necessarily know how to take the next step.

"So with our experience on the mine development side and the contract mining side, we're able to bring their project from the concept through to full operations and completion.

"We bring the knowledge and the experience in taking a great resource to actually digging in the first road, building your haul road, building your camp, building your mine operations centre, and then do your quick stripping and clearing of the mine and then going straight into production.

"And by doing so, when we identify projects that we believe in, we will also help by bringing the capital in to support that project to develop it and then making us a partner of that project.

"That's really what differentiates us from a lot of the other contractors."

Best mates behind the business

As for whether working with his best mate has its moments, "surprisingly not" is Dryland's answer.

"There are certain areas that he [Thompson] excels in, and there are certain areas that are my strengths and there's an imaginary line that we just don't cross," he said.

"We put our case across, there's no grudges and we just back each other."

Thompson is an operations specialist with a track record in managing extremely challenging projects plus an ability to build, motivate and engage teams.

Dryland is an accomplished international project management professional with a focus on compliance, financial rigour and quality delivery.

The pair recently revitalised the business after a difficult period during the pandemic, which included the iron ore price plunging from about US$240 per ton towards $70/t within a matter of weeks.

"We believe in the brand, we believe in the name and we believe in the values of what it stands for," Dryland said.

"There's a sense of satisfaction in everything we do."

He noted it was a relatively small industry and therefore critical to do the job well.

"It doesn't matter who you know, if you're not good at what you do people already know," he said.

The Pilbara Resource Group team
The Pilbara Resource Group team

Upskilling

Labour and skills shortages have been widely acknowledged and Dryland said PRG upskilled as much as possible within its business.

"We bring a lot of external labour on where needed but we try and keep a core group of our own guys and just keep it busy," he said.

Numbers can fluctuate up to 250 people.

"We've been lucky enough to have such a diverse workforce that we're able to put different people in different roles and it's good, because it gives them a bit of variety," Dryland said.

"And that's key to retaining the guys that you've got."

In terms of PRG operating effectively in what can often be remote and challenging environments, Dryland has a straightforward recipe for success.

"Leading from the front and being present," he said.

"There's no such job as ‘set and forget'.

"You need to be constant, you need to be relevant and involved in the process and whilst you've got to back your decision makers, you need to ensure that you're there to support them the same time."

Dryland paid tribute to the great team at PRG, saying they had built it up so everyone felt "part of the family".

"PRG is a brand but it's actually our people as well and our relationships with everyone else," he said.

"We'll go as far as we can, and beyond, for our clients and our people, to develop our relationships and do the job right, with integrity."

ABOUT THIS COMPANY
Pilbara Resource Group

Head Office Address:

Ground floor, 10 Kings Park Road, West Perth WA 6005

Tel: +61 8 6424 8219

Email: info@pilbararg.com.au

Web: https://www.pilbararg.com.au/

Leadership

Scott Thompson, Scott Dryland

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