FQML Brochure i52 Summer 23

EXECUTIVE INSIGHT

FQML GoingBeyond Tradition

MACA is an Australian-founded contracting group servicing the mining, resources, and construction industries for over 20 years.

As a proud Thiess company, MACA is a trusted mining and resource partner. We understand that every mining operation is unique and work closely with our clients to deliver operational expertise and equipment tailored to meet their specific needs.

This approach has been particularly successful at First Quantum Minerals Ltd (FQML) Ravensthorpe Nickel Operations mine.

In 2019, MACA was awarded the five-year $480M open-pit mining service contract delivering drill, blast, load, haul and crusher feed services.

Since project commencement, MACA has worked closely with FQML to understand operational objectives and tailor services to provide flexible, cost-effective solutions to improve performance.

MACA has demonstrated its ability to deliver results that exceed client expectations and through mutual agreement with FQML, has provided additional works such as mine rehabilitation, site facilities, tailings dam lifts and camp facility enhancements to benefit respective employees.

Both MACA and FQML recognise the importance of supporting the local community and together strive to make a positive impact through employment, procurement, local involvement, and sponsorships.

MACA’s reputation for delivering high-quality mining services has been enhanced through this partnership which is a testament to the value that a strong client and contractor relationship can bring to a mining operation. We thank FQML for the opportunity to work together at the Ravensthorpe Nickel Operation and look forward to continuing our strong relationship well into the future. To find out more visit maca.net.au

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Company contact: Josh Redmond General Manager - Mining

MACA is an international contracting group providing services to the mining, infrastructure and construction sector industries for over 20 years. With a team of highly skilled and dedicated professionals, we deliver operational expertise and equipment tailored to suit the needs of our clients and end-users.

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First Quantum Minerals Ltd (FMQ) is one of the world’s top 10 copper producers, operating across four continents and employing about 20,000 people.

Gavin Ashley, FQM’s Regional Manager for Projects and Operations, described the group’s global footing: “We are a globally recognised business, headquartered in Canada but operating around the globe. We’re a rather decentralised group and our sites are quite autonomous in their operations, having full accountability for running their business. In this respect, we are not the typical sort of mining company.”

FQM’s global operation portfolio includes the Ravensthorpe Nickel Operation (RNO), an open-pit mine and primary processing plant located in the south west of Western Australia. FQM acquired 100% of the Ravensthorpe project, which was then a decommissioned mine, in 2010. In 2017, the mine was put on care and maintenance due to persistently low nickel prices.

In early 2020, the mine was restarted creating over 600 new jobs. A year later, the company sold a 30% equity interest in the Ravensthorpe Nickel Operation to POSCO, one of the world’s largest steel producers, and the mine is now poised to ramp up to full production levels.

Gavin explained that regarding Ravensthorpe, his role is more or less focused on operational oversight and supporting the FQM projects. “From a corporate perspective, in projects my responsibilities include the engineering, procurement, costs of scheduling site functions

within the project scope. FQM does not operate within a firm organisational structure so the roles tend to be fluid, which again, is unusual for a typical company of our size.”

The asset itself is managed by Scott Whitehead, Ravensthorpe Operations General Manager, whose accountability covers the asset’s operation from the start of the process, i.e. mining the mineral, right through to processing, logistics, shipping and ultimately liaising with the group’s trading arm, which sells the final product in the market.

“My role encompasses pretty much everything on site. We have a permanent workforce of about 450 people and then some 200 to 250 contractors, and I’m responsible for all functions from Health, Safety & Environmental, Training, HR to Production, Maintenance and Engineering,” said Scott, affirming Ravensthorpe is a unique technical operation, and a very rewarding place to work, in a good location with great people.

“Ravensthorpe is a unique technical operation, and a very rewarding place to work, in a good location with great people.

Callidus: Providing Expert Support to FQML at RNO Site

Callidus, a leading provider of corrosion and erosion solutions, has been collaborating with First Quantum Minerals Ltd (FQML) at their Ravensthorpe Nickel Operation (RNO) site to optimize operations and achieve maximum efficiency. Callidus has a vast experience in hydrometallurgy and has been offering its expertise in high-pressure acid leaching (HPAL) to the RNO site since commissioning. FQML has benefitted from the technical knowledge and experience of Callidus in the areas of valves, process piping, pressure vessels, shutdown repairs, and critical spares.

Callidus is known for its wide range of qualifications held by its personnel, and the company ensures that its personnel are trained and equipped with the latest skills and knowledge to deliver quality solutions to its clients. At the RNO site, Callidus personnel have provided critical support for the maintenance and repair of equipment, as well as offering technical advice and guidance to FQML.

Callidus specializes in providing valve services and operates a dedicated workshop for non-ferrous and exotic materials such as titanium, duplex, and other high-performance alloys. The company’s focus on delivering high-quality and reliable valve solutions has earned it a reputation as a reliable and trusted partner for any valve or exotic material project. Callidus prides itself on its knowledgeable and experienced staff, who are committed to providing exceptional service and solutions to its clients.

In conclusion, Callidus has been a key partner in the success of FQML at the RNO site. With its expertise in HPAL and a team of highly qualified personnel, Callidus is committed to providing exceptional engineering and maintenance solutions to its clients. The collaboration between Callidus and FQML has been fruitful, and it is a testament to the strength of the partnership between the two companies.

Restarted to ramp up Ravensthorpe comprises three separate deposits of low-grade nickel-inlaterite. Operations involve mining in three open pits, and ore processing in a beneficiation plant – a

simple scrubbing and screening process which upgrades the nickel laterite ore.

Sulphuric acid is produced on site in a double absorption acid plant for the leaching process. Waste heat from the

acid plant is recovered and used to generate most of the site’s electrical power as well as providing heat for the leaching process.

Ravensthorpe uses seawater piped from the Southern

Ocean and pumped via a 46km pipeline. Desalination on site provides fresh water for steam production and brine for use in the beneficiation circuit. The project includes purposebuilt facilities at the

“ EXECUTIVE INSIGHT MAGAZINE I SPRING 2023

port of Esperance for importation of sulphur for the acid plant and the export of MHP product from the plant.

Gavin explains that bringing the mine back into operation has had its challenges. “When we acquired the asset, we restarted and ran the operation for a few years to a point where nickel prices had collapsed. Shutting the mine had a major impact on the local community. So, building up credibility

and trust in our community and our stakeholders was key.”

Since restarting the mine, the company has invested some $130 million in the technology, expanding the mining operation with the opening of a new nickel deposit, known as ShoemakerLevy, extending the life of the mine by at least 20 years. Annual production is targeted at around 30,000 tonnes of nickel per annum. Gavin points out that FQM

is investing a lot in ensuring the reliability and integrity of the asset and ramping up production, which last year was just under 22,000 tonnes.

The human force

Speaking about challenges, Scott noted: “One of the challenges is to attract and retain good people, not an easy task in Western Australia, with its strong mining sector and tight labour market. As we continue to expand

our mining footprint, the task doesn’t get any easier, with only so many people available in the country.”

He pointed out that Ravensthorpe has a diverse and inclusive workforce and the company is also trying to engage people with no previous mining experience, installing special training programmes to bring new people into the industry. “We have an apprenticeship programme in place

which we are looking to expand. We are also promoting being an equal opportunity employer and providing flexible working arrangements for some roles to broaden our demographics.”

Gavin elaborated that FQM’s culture focuses on supporting an individual approach and thinking outside the box within a given framework. “We like people to use their minds, we want people to engage and be part of the solution and we want them to have the freedom to be able to do that.”

Collaboration with the local community is crucial and Ravensthorpe is lucky in this respect, given its favourable location. This is also one of the aspects that make the project unique. Unlike most of Australian mining operations located in remote areas, Ravensthorpe is just 50 km from the coast, offering the opportunity to live residentially. “Being home every night with family and being able to live in a coastal community is a key differentiator for us,” acknowledged Scott.

Work with the indigenous population is also highly important for the company, he affirmed, explaining that the company has appointed a dedicated liaison officer for communication with the traditional owners, the Noongar people, and supports the young generation of Indigenous children within a grant scheme that covers education, training as well as health. “The feedback has been really positive.”

Industry innovator

Speaking about what further distinguishes FQM from other mining companies, Gavin highlighted the capability to self-perform its projects. “We build projects from start to finish, which provides really strong ownership

We like people to use their minds, we want people to engage and be part of the solution and we want them to have the freedom to be able to do that

of project outcomes and risks. The projects ramp up fast, they’re owned by our people in the operation, and that’s a key element.”

He added that FQM is also a very innovative company with a flat organisational structure, not averse to taking appropriate risks, adopting innovative approaches serving to the betterment of the industry.

“We are driving innovation also at a broader level. Ravensthorpe is making a product that will be used predominantly in the electric vehicle battery market. We’re one of the lowest carbon intensity producers of laterite nickel in that area. We use seawater for our process water. We generate our own power right on site, we’re not connected to the grid. We fully contain our tailings and waste wastewater on the site. This approach is pretty unique in the industry.”

Right now, the company is contemplating the deployment of more energy-saving technology and a switch to wind power, reducing the mine’s reliance on supplementary diesel generators. “We are investigating the

possible installation of a wind farm to supplement our power generation. So that would further reduce our carbon intensity,” stated Scott, adding that project is in its early design stages and expect the project may take up three years for the necessary approvals and construction to take place.

Reliability and integrity

Gavin emphasised again that the focus now is on ensuring the safety, reliability and asset integrity of the Ravensthorpe Nickel Operation. Although supply chains continue to face some difficulties, the company fosters long term relationships with its suppliers, working in partnership to resolve any potential issues, and striving to leverage each other’s strengths.

Scott affirmed that Ravensthorpe supports local businesses as much as it can but given the nature of the business, uses contractors on a national or international basis. “We support the local business forum in the area and we are very much engaged and connected with the local business network. We do have a lot of specialised, unique equipment here at

Ravensthorpe, so we also draw from abroad from time to time for technical specialists.”

Asked how he sees Ravensthorpe developing over the next 12 months, he said: “The key focus areas will continue to be staff attraction and retention, safe and steady operations increasing production, and, as Gavin pointed out, assuring the reliability and sustainability of our production.”

Gavin added another dimension from the corporate perspective: “From the First Quantum point of view, historically Ravensthorpe

has been a nickel operation inside a copper company. And right now, we’re commissioning our second nickel operation, the Enterprise operation in Zambia, that is expected to ramp up to full plant throughput in 2024.”

“So suddenly, FQM is going to be a major producer in the nickel industry, both in the sulphides and the laterite segments. Increasing our nickel capability as well as bringing on our other growth projects in the copper operations is a big focus in 2023. I think these are pretty exciting times.”

C-SERIES, 10-INCH, 600 CLASS RAVENSTHORPE NICKEL OPERATIONS WESTERN AUSTRALIA

So suddenly, FQM is going to be a major producer in the nickel industry