Redefining mining through sustainable best practice
SIRIUS MINERALS 02
Economic and sustainable excellence in mining WRIT TEN BY
DA LE BENTON PRODUCED BY
RICHARD DE ANE
03
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Through the $4.2bn Woodsmith Mine, Sirius Minerals will disrupt the ‘sustainability in mining’ conversation
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estructive by its very nature, the mining industry is one that requires an incredible focus and understanding of the impact
that a project has, and can have, on the environment. For many mining operators, getting this one element right is key to achieving any form of success. Get it wrong and the results can be catastrophic. With a vision to become one of the world’s largest producers of multi-nutrient fertilisers, and a $4.2bn (£3.2bn) project to achieve that, Sirius Minerals takes its environmental responsibility incredibly seriously. In fact, it’s built into the company’s very mission statement of ‘sustaining the future’. “This project will establish Sirius as a global fertiliser company,” says Graham Clarke, Operations Director at Sirius Minerals. “But I think what’s important to us is the way we’ve gone about doing that and the way we work. “We’re not just a mining company trying to develop a resource and make as much money as
05 we can out of it. It’s how we’ve always engaged with the local communities, national government and well as regionally. I think we’re really setting the benchmark in sustainability within mine development.” The Woodsmith Mine is a 2.66bn tonne polyhalite project: the largest highest grade polyhalite resource in the world. Located near Whitby in the North of England, Sirius Minerals is currently implementing major infrastructure that will connect a deep shaft system and w w w.si ri usmi ne ra ls . com
www.josephgallagher.co.uk
Leading the way underground. From London’s Super Sewer to Sirius Mineral’s Woodsmith Mine. Joseph Gallagher is a trusted partner for some of the biggest underground tunnelling and infrastructure projects taking place in the UK today.
SPECIALIST CIVIL ENGINEERING CONTRACTORS
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TUNNELLING | CIVIL ENGINEERING | TRENCHLESS SOLUTIONS
Joseph Gallagher founded his company in 1982, which has grown significantly in the last 36 years to become a leading tunnelling and civil engineering sub-contractor in the UK. 2018 has been been aa milestone milestoneyear yearfor the the company, leading the way both for company, leading the way in terms of recent project both in terms of recent project successes and and their their safety safetyculture. culture.
Sirius Minerals Woodsmith Mine Joseph Gallagher has been contracted by Careys to undertake shaft sinking works at Sirius Minerals’ £3.2bn polyhalite mine near Whitby. The project reached a historic milestone in September this year, with the naming of the Herrenknecht Vertical Shaft Sinking Machine (VSM) that will be used to excavate the first 120m of a 360m deep tunnel access shaft. “Using this innovative cutting-edge machine is proof of our determination to use the best, most effective engineering solutions to build this mine.” Chris Fraser, CEO and Managing Director Sirius Minerals.
Tideway Project Tideway Project The £4.2bn £4.2bn Thames ThamesTideway TidewayTunnel project, project, a 25km atunnel run to Tunnel 25kmtotunnel beneath the River Thames in thein run beneath the River Thames centre of London, is theislargest the centre of London, the largest sewer improvement improvementproject projecttotobebe conducted in conducted inthe theUK UKfor forover overa a century. Contracted century. Contractedbybythe theFerrovial Agroman Laing O'Rourke joint Ferrovial Agroman UK and Laing venture, Joseph O’Rourke (FLO) Gallagher joint venture, constructed two, 10constructed metre internal Joseph Gallagher two, diameter, SCL 10 metre 37-metre-long internal diameter, tunnels, and two reinforced 37-metre-long SCL tunnels,concrete and portal frames (20m x 16m) two reinforced concrete portal containing 280x tonnes of steel. frames (20m 16m) containing 280 tonnes of steel. Joseph Gallagher has previously worked with Ferrovial and Joseph Gallagher hasAgroman previously Laing O'Rourke onon thethe Northern Line worked with FLO Northern Extension and this working Line Extension andpositive this positive relationship continuedcontinued onto Tideway, working relationship whereTideway, the same level of onto where the same level professionalism andand workwork ethicethic were of professionalism a big contribution in delivering the were a big contribution in work successfully. delivering the work successfully. An industry industryleading leadingsafety safetyculture culture Joseph Gallagher Joseph Gallagherbegan beganitsitsLiving Living Incident Free Incident FreeEveryday Everyday(LIFE) (LIFE) behavioural safety behavioural safetyprogramme programmetoto fundamentally change fundamentally changeits itsculture culture and attitudes attitudestowards towardssafety safetynearly nearly four years years ago. ago. “We have have had hadgreat greatsuccess successwith with the programme, programme,attitudes attitudesand andways of working have moved on. Buton. ways of working have moved therethere is still to be to achieved.” But is more still more be Joseph Gallagher, Chairman. achieved.” Joseph Gallagher, Chairman.
Joseph Gallagher Joseph Gallagherview viewleadership leadershipas fundamental to promoting and and as fundamental to promoting sustaining the sustaining thesafety safetyand andwell-being of its people. aim of the LIFE well-being of The its people. From the programme is toevery provide everyone 1st of October member of withJoseph the exceptional leadership and the Gallagher Group will be mutual respect that is required to attending an industry leading and empower people feel comfortable awarding winningtoimmersive with challenging un-safe training day provided bybehaviours Active and situations. Training Team (att…). The session combines interactive experiences, “A safe business is the by-product film, drama, live action, exercises, of the business having exceptional participation and facilitated leadership. We continue on our discussion, leaving participants journey with the next phase with a lasting understandingofofour LIFE Culture.” Steve Harvey, their role in ensuring the safety Managing Director. and well-being of everyone. From October 2018 every member of The aim of Gallagher the LIFE programme the Joseph Group will is to provide everyone with attend an industry-leadingthe and exceptional leadership and training mutual awarding-winning immersive respect that is required to day provided by Active Training Team empower people to feel (ATT). comfortable with challenging un-safe behaviourstraining and situations. The ATT immersive day combines live drama, film, exercises “A business is the by-product andsafe facilitated discussion. “People of the business having come away with a deep, lasting exceptional We for awareness ofleadership. their responsibility continue on our journey their own safety and that ofwith the next phaseand of our Culture.” colleagues the LIFE practical Steve Harvey, Managing Director communication tools to make a
difference.” Dermott Kerrigan, Joseph are creating DirectorGallagher Active Training Team. an environment where people decide to make the Joseph Gallagher areright creating choices, wherever theypeople work across an environment where decide the company. From procurement, to make the right choices, wherever to planning, HR, the engineering they work across company.and From project management, everyone procurement, to planning, HR, is a leader whenand it comes engineering projectto safety and well-being. management, everyone is a leader when it comes to safety and well-being.
an underground tunnel directly to nearby sea ports and shipping channels. The challenge for Sirius lies in the location, as the project is situated inside a major national park, meaning that the level of environmental responsibility placed on Sirius’ shoulders is significant. “It started with the way that we designed the project and the infrastructure. Post construction, it will have minimal, if any, impact on the environment,” explains Clarke. “The mine site itself won’t be visible from any viewing point around the site once we’ve finished, 08
and I think we’ve demonstrated that it’s possible to design a deep mine in a sensitive area without it having a significant impact on the environment. As a company, we take a lot of pride in the way we’ve gone about that, from the way we engage with the local people and the care we take in the environment.” This is echoed by Chris Fraser, Managing Director and CEO of Sirius. He notes that the innovative low impact design came about through initial discussions and planning meetings about the mine, which originally was going to involve turning the polyhalite into sulphate of potash (SOP) through a large-scale thermal process that
“I think we’re really setting the benchmark in sustainability and the way to develop a mine” — Graham Clarke, Operations Director at Sirius Minerals
CLICK TO WATCH : ‘SIRIUS MINERALS – THE PROJECT EXPLAINED’ 09 would use a large amount of energy and water. This, he explains, would leave a rather significant carbon footprint. “The process, while technically feasible, caused us great concern because of the amount of gas it was going to consume and the amount of carbon it was going to produce.” As the team went back to the drawing board and conducted a number of studies to find a more carbon neutral process, it was discovered that when left in its high grade natural mineral form, polyhalite’s crop yield performance surpassed expectations. It was decided w w w.si ri usmi ne ra ls . com
“ It’s who we are and it’s the way we do things. We will address whatever is coming in the future in the same way that we’ve addressed everything we’ve done so far, and I think that’s one of the things that sets us aside, is our ability to change and evolve and meet the next challenge” — Graham Clarke, Operations Director at Sirius Minerals 11
that, rather than turn polyhalite into
Given the location of the ore body,
SOP, a product which was already
Fraser also recognised that Sirius
widely used, Sirius would market
needed to work closely with the local
polyhalite itself as a new fertiliser
community and national government in
product. This had the added benefit
order to ensure that the Woodsmith
of significantly reducing the energy
Mine could even get off the ground.
consumption required for processing.
“We made the early design decision
“That was choice number one, and
that we would not build big headframes
that meant that our carbon footprint
into the sky as normally seen with
reduced massively as a project,” says
underground mines around the world,”
Fraser. “It also meant that we didn’t
explains Fraser. “We decided that all
have to have a massive chemical
of our infrastructure should go under-
process plant nearby consuming huge
ground. These choices mean that there
amounts of gas and water.”
will be zero visual impact on the National w w w.si ri usmi ne ra ls . com
12 Park, which is a fundamental ethos of the
MTS is a fully segmented tunnel
whole project.� While Fraser admits this
containing a conveyor belt that will
decision did incur additional costs, he
transport the extracted ore outside
stresses that these were non-negotiable.
the national park to the industrial port
The second component was one of
of Teesside, where the polyhalite will
transportation: extracting the ore and
be granulated and shipped. It will be
moving it to and from the mine site. The
constructed using three tunnel boring
transportation and logistics surround-
machines (TBMs) undertaking three
ing mine sites create a myriad of major
independent drives: one will launch
and minor noise and light pollution, as
from the surface at the port end, and
well as congestion and additional carbon
two from sub level launch chambers at
emissions. To avoid this impacting the
the mine end and at an intermediate site.
park, the company looked to another
“The tunnel will be dug through one
innovative solution: an underground
rock strata, Redcar Mudstone, at an
Mineral Transport System (MTS). The
average depth of 250m� says Clarke.
“What we’ve had to do is design a project that is setting new standards in sustainable design because ultimately, we’ve a project for the next century and beyond, rather than one that’s based on thinking from the last century” — Graham Clarke, Operations Director at Sirius Minerals
13 E X E C U T I V E P R OF IL E
Chris Fraser Chris Fraser has almost 20 years’ experience in the mining industry with a particular focus on financing and strategic developments. He is the founder of the Project, has led its development since 2010 and has been managing director and CEO of the Company since January 2011. During his finance career he worked for KPMG, Rothschild and Citigroup, the latter culminated in him being appointed head of metals and mining investment banking for Australia in 2006 and managing director in 2008. Upon leaving Citigroup in 2009, he founded Sigiriya Capital, a boutique advisory and investment firm. Chris founded York Potash in 2010 and subsequently joined Sirius Minerals Plc in 2011.
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Pioneering Your World. OLKO-Maschinentechnik GmbH has been awarded a contract by Sirius Minerals for the supply and commissioning of two winders for the North Yorkshire Polyhalite Project. Compared to a human body, the shaft hoisting system can be considered as the main artery of a mine. OLKO is very pleased to have been entrusted by Sirius Minerals with that responsible task and is delighted that their hoists are part of one of the world’s ambitious mining projects. OLKO is a German based manufacturer and considers itself as supplier of high-end shaft hoisting systems. The company covers a wide range of winders, such as Koepe, Double Drum or Double Blair Winders. Beside the winders, OLKO supplies rope handling equipment, loading and unloading facilities and has references worldwide.
www.ts-olko.com olfen@olko.info
find us
“That means it will be deep enough to
footprint of the operation, Fraser
avoid any meaningful surface impact
believes that it represents a shining
during construction, and have minimal
example as to what can be achieved
environmental visual impact post
with regards to sustainability in mining.
construction. Effectively when the
“What we’ve had to do is design
project’s built, nobody will actually
a project that is setting new standards in
know there’s a mine here, or a tunnel
sustainable design because ultimately,
in existence.”
we’ve got a project for the next century
In building such massive infrastruc-
and beyond, rather than one that’s based
ture, which provides low operating
on thinking from the last century,” says
costs, minimal environmental impact
Fraser. “Beyond that, we can really tap
and contributes to reducing the carbon
into the incredible technological
E X E C U T I V E P R OF IL E 15
Graham Clarke Graham joined Sirius Minerals in 2011 and has been involved in all aspects of the development of the project. He is currently responsible for construction activities at the Woodsmith and Lockwood Beck sites. He has over 30 years’ experience in the potash mining industry, in particular extensive operational experience at Cleveland Potash Limited (CPL). Starting as a graduate trainee, Graham initially worked underground as a miner, supervisor and shift manager before taking on more senior management roles culminating with the post of Managing Director, a position held for 7 years. At CPL, he secured investment to support the exploration and development of polyhalite, making CPL the first mine in the world to commercially extract this valuable mineral.
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17 advantages and thought that comes out
onto that. I’ve never doubted it for
of the UK, in terms of designing our
a minute since I joined the company,”
operating systems, with regards to
he says. “It’s a feeling shared by every
remote and/or automated operations,
single one of us here at Sirius. We
and really looking at achieving even
believe in that vision as well, and the
higher standards, in terms of our
reality is, that if you actually believe
operational presence, once this infra-
you can do something, then you’ve got
structure’s constructed.”
a pretty good chance of doing it.”
For Clarke, this vision of setting new
Sirius’ first exploration programme
standards and pushing the boundaries
ran from 2011 to 2013 which resulted
as to what can be achieved through
in the identification of the 2.6bn tonne
innovative thinking and sustainability in
resource. With construction beginning
mining is something that he bought into
in early 2017, Sirius has targeted
from the very start. “Chris Fraser had
production of the first polyhalite
a vision at the very beginning; I signed
towards the end of 2021 and an initial w w w.si ri usmi ne ra ls . com
10mn tonne per annum operation by 2024. For the immediate future, Fraser notes that the company’s attention is entirely focused on completing the remaining financing required to build the project. “Construction is well underway and we’re coming toward the end of our second year of our construction schedule,” says Fraser. “Now we look at stage two of our financing, which is our senior debt financing. That is concluding early next year and involves finalising our project procurement, signing and securing our delivery partners on the project. These include DMC, Strabag, Jacobs and our market partnerships 18
with our customers, with whom we have already secured aggregate peak take or pay sales of 8.2mn tonnes per annum.” As the project continues to advance, both Clarke and Fraser can look at how far the company has come since identifying the resource back in 2010. More importantly for Clarke, the company can prove that it has and will continue to do things in future the right way. “It’s who we are and it’s the way we do things. We will address whatever is coming in the future in the same way that we’ve addressed everything we’ve done so far. I think that’s one of the things that sets us aside, is our ability to change and evolve and meet the next challenge,” he says. Through that vast polyhalite resource,
combined with the incredible understanding of its environmental responsibility, Sirius Minerals will truly transform not only the fertiliser industry, but it will send a clear message to the global mining industry. The mining conversation is often dominated by Canada, Australia and emerging mining markets across Africa, but both Fraser and Clarke feel passionately that the Woodsmith Mine can put the UK back on the map – it is the first deep mine to be built in the UK in decades, and will produce over two billion pounds a year through exports alone. This is a key driver for Fraser and is a cornerstone of his vision for Sirius: “I think the material contribution that mining projects can make is just such a fundamental component that has been lost from the UK. Look at a project like this, done to such high sustainable standards. It really does show you the power of mining as an economic driver for growth.�
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Resolution House Lake View Scarborough YO11 3ZB 01723 470 010 info@siriusminerals.com www.siriusminerals.com