Mining - January 2022

January 2022 | miningglobal.com

Aggreko: Aggreko Powers Smooth Energy Transition

Quarry Mining: Dedicated to Becoming the Best in the Market

Ferrexpo: Fires up Decarbonisation and Autonomy

Anglo American: Plans for Sustainable Change

I have learned that this is an industry that has the potential to transform lives and communities Ana Milena Vásquez, Executive Vice President, Collective Mining

In Association With:

SHAPING THE FUTURE OF SUSTAINABLE BUSINESS

2022

February 23rd-24th STREAMED & IN PERSON TOBACCO DOCK LONDON

BUY TICKETS

SPONSOR OPPORTUNITIES

Confirmed Speakers Include:

Ben Clifford

Sarah Chapman

Global Health, Safety & Sustainability Associate Director

Global Chief Sustainability Officer

Fidelity International

Manulife Financial Corporation

Roy Cheung

Mary-Jane Morifi

Global Head, Sustainability Solutions, Engineering Plastics

Chief Corporate and Sustainability Officer

Covestro

Tiger Brands Limited

Øistein Jensen

Sandeep Chandna

Chief Sustainability Officer

Chief Sustainability Officer Tech Mahindra

Odfjell SE

Never miss an issue!

+ Discover the latest news and insights about Global Mining...

JOIN THE COMMUNITY

The Mining Team EDITOR-IN-CHIEF

DOMINIC ELLIS TOM SWALLOW EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

PHILLINE VICENTE JACK THOMPSON JANE ARNETA ELLA CHADNEY

PRODUCTION EDITOR

JANET BRICE CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON JORDAN WOOD VIDEO PRODUCTION MANAGERS

KIERAN WAITE SAM KEMP

MOTION DESIGNER

TYLER LIVINGSTONE DIGITAL VIDEO PRODUCERS

EVELYN HUANG JACK NICHOLLS MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN MARKETING DIRECTOR

ROSS GARRIGAN

MARKETING MANAGER

GRETA ANDREJEVAITE

PROJECT DIRECTORS

GLEN WHITE ASHLEY KIRBY

MEDIA SALES DIRECTOR

MARK CAWSTON

SALES AND MARKETING DIRECTOR

JASON WESTGATE MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN PRESIDENT & CEO

GLEN WHITE

EDITOR'S LETTER

Industry steps up decarbonisation and autonomy “Decarbonisation and autonomy will be priorities for mining companies as the push for sustainability and technological efficiency intensifies”

It's hard to say what the next 12 months have in store for the mining industry, particularly in a time of COVID-19, the energy transition and supply chain challenges.

But it's clear from talking to industry leaders, such as Jim North at Ferrexpo, decarbonisation and autonomy will be priorities for mining companies as the push for sustainability and technological efficiency intensifies.

For those fearful that technology will replace jobs, it was interesting to hear how Ferrexpo employs 12 'autonomous road builders' which map out routes.

But it was equally heartening to hear the primacy of people to the company, which has published a Responsible Business Report. You can read the whole profile on page 38.

Elsewhere, in our cover story, Ana Milena Vasquez, EVP at Collective Mining, also highlights the oftenoverlooked human benefits to the industry, and its potential to transform lives and communities.

Enjoy the issue.

MINING MAGAZINE IS PUBLISHED BY

DOMINIC ELLIS

dominic.ellis@bizclikmedia.com

© 2021 | ALL RIGHTS RESERVED

miningglobal.com

5

CONTENTS

Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Trailblazer:

Ana Milena Vásquez 16 Five Minutes With:

Robin Batterham

26

Aggreko

Aggreko Powers Smooth Energy Transition

38

Ferrexpo

Ferrexpo Fires up Decarbonisation and Autonomy

50

Quarry Mining

Dedicated to Becoming the Best in the Market

EMPLOYEES ARE WORTH KEEPING Don’t risk losing them to older methods of cannabis testing.

WATCH OUR VIDEO

Only the ultra-sensitive

HOUND® MARIJUANA BREATHALYZER

tests for very recent cannabis use, providing results in minutes.

1

The HOUND® MARIJUANA BREATHALYZER makes it easier to hire and retain trusted employees.

CANNABIS DETECTION WINDOWS 2 PEAK IMPAIRMENT3 up to

1m on th

24 ho ur s

Urine Oral Fluid

up

2

up t o

rs hou -3

CONCENTRATION

2-3 hours

to 3 months

Breath HOURS

DAYS

WEEKS

MONTHS

More employees are choosing to legally use cannabis.

Because tests of oral fluid, urine, and hair can detect cannabis use for days, weeks, or months, there is a greater risk of positive results.

The era of cannabis legalization requires new technology to balance SAFETY + FAIRNESS .

TM

JOIN THE WAIT LIST 1

2 3

The HOUND® MARIJUANA BREATHALYZER is for law enforcement, employer, and insurance use only.

Not for any medical or therapeutic use. https://houndlabs.com/2018/09/06/how-long-can-marijuana-be-detected-in-drug-tests/ https://houndlabs.com/wp-content/uploads/2020/12/drugshumanperformfs.pdf

Hound Labs, Inc. © 2021. All rights reserved.

Hair

BIG PICTURE

10

January 2022

The end of coal power is in sight Global

Following the two week COP26 Climate Change Conference, mining and energy organisations are left with the inevitable truth that coal is being phased out.

Major coal users, including Canada, Poland, South Korea, Ukraine, Indonesia and Vietnam are expected to eliminate their dependence on coal for electricity generation. The countries with the largest economies are expected to phase-out coal power by 2030 and smaller economies by 2040. miningglobal.com

11

THE BRIEF “The introduction of technology means we are now using less raw material and using all resources efficiently”

BY THE NUMBERS

The global market value of the coal mining industry according to Statista (US$)

George Whyte,

Managing Director, Australia Pacific and Global Mining Sector Leader, Aggreko 

697.82bn

2020

824.51bn

2019

826.27bn

“It’s been a very busy year for us, and we’ve not seen the same issues in mining that we have in some of our other sectors”

2018

READ MORE

2017

Technical Director, Quarry Mining 

805.89bn

Christian Drewes

Rio Tinto: the modern, safe, and sustainable Oyu Tolgoi mine The Oyu Tolgoi mine, located in the South Gobi region of Mongolia, is one of the most modern, safe and sustainable mining projects in the world.Covid-19 jabs across the Western Australian workforce.

READ MORE

READ MORE

“We have no intention of using carbon offsets – we want real carbon reduction” Jim North

Interim Chief Executive Officer, Ferrexpo  READ MORE

12

January 2022

CORE Innovation Hub opens for mining award nominations “Many businesses out there are driving change in their sector, but rarely put their hand up to tell the world what they’re doing or how they’re having an impact both in Australia and overseas.”

READ MORE

How is Rio Tinto driving low-carbon aluminium production?

Over the next 10 to 20 years, we can expect to see various changes occurring as a result of the impending issue of global warming.

READ MORE

 KORE MINING Reached a "major milestone" in relation to its Imperial Gold Project purchase agreement with Goldcorp USA, following investments totalling US$5mn.

The coal industry tops the sustainability agenda at COP26 In November, Glasgow hosted one of the most significant Climate Change Conferences, COP26, which assembled leaders from across the globe to discuss all aspects of sustainability.

As a result of the conference, more than 40 countries have committed to abolishing the use of coal over the next two decades.

Countries with larger economies will phaseout coal power by 2030, while the poorer countries that signed the pledge will aim for 2040.

One of the major steps towards the elimination of coal power is finance. Many of the countries, including the US, that signed the pledge have agreed to a further commitment to stop financing new projects in the industry.

With the plans firmly set by world leaders, it is expected to see many fossil fuel operators cut or divest their mining assets to reduce their contributions to global warming.

 EUROPE As mining operations are digitised, Europe has experienced better hiring rates for roles in robotics, developing solutions for mining applications, making up 22.6% of robotics jobs.

 HOCHSCHILD MINING Following the closure of two of its mines, by the Peruvian government, Hochschild Mining experiences a fall in share prices as it disputes the case.

 RIO TINTO Experienced backlash from the Mongolian government for delays to the first copper production schedule at the Oyu Tolgoi mine, Mongolia, with the potential to incur the costs.

U P

JAN22

D O W N

miningglobal.com

13

TIMELINE Anglo American Plans for Sustainable Change During, and leading up to, the discussions at COP26, Anglo American has been reporting its sustainability achievements and setting new goals in line with the needs of the industry and, more importantly, the planet. Take a look at the company’s most recent commitments, spurred on by major global changes.

4TH AUGUST 2021 Collaborates to decarbonise steel production

29TH JULY 2021 Donated US$100mn to sustainable causes The Anglo American Foundation announces its support for empowering women, young people and other vulnerable groups, by donating US$100mn towards the UN’s Sustainable Development Goals.The funding is not limited to social causes and is distributed for environmental change, community health and education.

14

January 2022

A memorandum of understanding (MoU) with Salzgitter Flachstahl, was signed to formally announce their collaborative efforts to decarbonise steelmaking.

The companies agreed to research feed materials for use in direct reduction (DR) steelmaking processes using less carbon-intensive methods.

5TH NOVEMBER 2021 Sets further climate-neutral targets

29TH OCTOBER 2021 Outlined its 2040 emissions goals

8TH OCTOBER 2021 Collaborates on hydrogen study The company emphasised its commitment to developing the hydrogen economy, through a feasibility study in collaboration with South Africa’s Department of Science and Innovation (DSI), the South African National Development Institute (SANEDI), Engie and Bambili Energy. The study is to assess the opportunity for a hydrogen valley in the Bushveld area.

Through the release of its 2021 Climate Change Report, Anglo American outlined its commitment to emissions reduction, while providing an update on the company’s progress towards its targets of 100% carbon-neutral in scopes one and two, and the reduction of its emissions in scope three, by the end of 2040.

During the period of COP26, Anglo American set out its aim to reduce freight emissions by 30% as it works towards its carbonneutral goal. The ambitious target goes hand-in-hand with its Sustainable Mining Plan, which confirms the firm’s target of 50% overall emissions reduction in scope three.

miningglobal.com

15

TRAILBLAZER

ESG Will Become a Staple in Mining Industry Ana Milena Vásquez, Executive Vice President at Collective Mining

M

ining exploration is a service that keeps the industry moving through mapping and surveyance. Organisations like Collective Mining are responsible for supporting mining operations, which in an industry of high demand is crucial for maintaining the supply of minerals and metals. Ana Milena Vásquez is a Colombian national and the Executive Vice President of Collective Mining with more than 15 years in the sector.

16

January 2022

Number of years working in the industry

15

Vásquez has tackled various challenges in her career, but her proudest moments were the launches of two companies, which she had been involved in.

One of those businesses received an investment of US$70mn for exploration and the other produced 800,000 megatonnes of coal in its first year of operation.

Her previous years in mining were spent at Continental Gold, as the Vice President of External Affairs and Sustainability, as the President of Red Eagle Exploration, Vice President of Operations and Business Development at CB Gold, and General Manager at Carbones del Cesar. Like many talented leaders, Vásquez has experience in other areas of work, such as her previous role in investment banking.

With experience implementing corporate social responsibility (CSR) programmes, and as an advocate for diversity and inclusion, Vásquez has had ample opportunity to learn more about sustainability and put her knowledge to action in realworld situations.

“In most of these positions I had the opportunity to implement corporate social responsibility programs and best practices in sustainability, while being involved in strategic stakeholder and media engagement,” said Vasquez.

Her current role at Women in Mining (WiM) allows Vásquez to challenge diversity in the mining industry, a historically maledominated industry. She said the

miningglobal.com

17

18

January 2022

TRAILBLAZER

“ I have learned that this is an industry that has the potential to transform lives and improve the livelihoods of local communities” group promotes “greater gender inclusion in the mining sector” and she has “a track record of advocating and promoting women’s opportunities, empowerment and equality from senior level positions in the private sector.”

“In the last years, I have been more involved in ESG and sustainability matters that have become my drivers,” said Vásquez. “I have learned that this is an industry that has the potential to transform lives and improve the livelihoods of local communities. I believe countries like Colombia have a huge opportunity to defeat poverty and inequality through the sustainable development of its natural resources.”

Over the next year, Vásquez believes that ESG will become commonplace among mining organisations and leaders will evaluate their ESG impacts more carefully.

“I see an industry more focused on implementing ESG practices and looking to be part of the solution for the energy transition and the economic recovery after the pandemic. In my country, exploration for green mineral deposits will be key in the following months and investors will evaluate how projects are applying ESG criteria in their operations at an early stage,” she says.

“Renewable energy sources and accelerating the adoption of electric vehicles (EVs) are some of the aspects companies will be looking at.” miningglobal.com

19

FIVE MINUTES WITH...

Robin Batterham Appointed the Chief Scientist of Australia in 1999, Professor Robin Batterham has worked as the Chief Technologist of a leading mining organisation and has since taken great pride in sharing his chemical engineering knowledge in academic settings, including the Australian Academy of Technology and Engineering (ATSE) and the Academy of Technological Sciences and Engineering.

We spoke to Batterham to find out more about his career in the mining industry and how he sees the future of the sector.

“ There is much hype around big data, data analytics and machine learning” 20

January 2022

Q. COULD YOU TELL US A BIT ABOUT YOUR EXPERIENCE IN THE MINING INDUSTRY?

» “Since graduating in chemical

engineering, my career has been primarily in industry (ICI, Rio Tinto) or collaborating directly with the mining industry (CSIRO and, for the last 11 years, at the University of Melbourne).

The focus of this work was and continues to be on the scale-up of new processes and the improvement of existing processes. Early in my career, I developed a successful principle for scale-up that has been applied in many examples and continues to be used to good effect, 50 years later. I have also served as the Chief Scientist of Australia and President of the 2 (soon to be 3) International Mineral Processing Congresses.”

Q. HOW DOES THE UNIVERSITY OF MELBOURNE CONTRIBUTE TO THE MINING INDUSTRY?

» “The University is very active in

collaboration with industry, from general support centres such as the Australian Research Council Centre of Excellence for enabling eco-efficient beneficiation of minerals through to specific and on-going collaborations in solvent extraction, in tailings dewatering, in mine planning and optimisation, in slope stability and many related areas such as emissions reduction and sustainability.”

miningglobal.com

21

FIVE MINUTES WITH...

“ The mine of the future will be deep underground with almost no surface expressions” Q. WHAT TECHNOLOGY DO YOU THINK WILL CONTRIBUTE MOST TO MINING IN 2022?

» “There is much hype around big data,

data analytics and machine learning, but I think the biggest change we will see in operating mines is how we handle tailings, dewatering in particular.”

Q. IS THERE A PARTICULAR ACHIEVEMENT YOU ARE PROUD OF IN YOUR CAREER?

» “A long life means you have the

privilege of being associated with many things but two stand out: Century Zinc—an ultrafine mineralisation that 22

January 2022

required grinding to 7micron for liberation and could be economically recovered by conventional flotation, and then the concentrate used in conventional smelters. The other would be the process for the direct smelting of iron ore.”

Q. WHAT’S NEXT FOR YOU IN YOUR CAREER?

» “The Net-Zero Australia is a focus, as are projects on soil carbon (quite relevant to mining), dewatering of tailings and a new project, not yet announced, that builds on previous work in direct smelting.”

Q. HOW DO YOU SEE THE INDUSTRY EVOLVING OVER THE NEXT 12-18 MONTHS?

» “I have a particular focus on iron

ore from mining to metal and see the biggest changes in 12-18 months as being the pursuit of more sustainable operations, in particular, fewer emissions.”

Q. WHAT ARE THE TOP THREE SUSTAINABILITY TRENDS IN YOUR INDUSTRY?

» “Emissions reduction, grade

engineering and ever more inclusive work practices. However, in the

long run, I think we will see mining transformed. The mine of the future will be deep underground with almost no surface expressions.

Minerals will be extracted in-place, primarily by leaching and either electrowon on the surface or underground. Already over 60% of the world’s uranium is won this way and copper will be next, not just the relatively easy oxide or primary sulphide minerals but secondary sulphides, currently regarded as not practical to leach. So we end up with no overburden piles, no low grade or waste piles and no tailings.” miningglobal.com

23

AGGREKO POWERS SMOOTH ENERGY TRANSITION WRITTEN BY: DOMINIC ELLIS

26

January 2022

PRODUCED BY: BEN WIGGER

AGGREKO

miningglobal.com

27

AGGREKO

28

January 2022

AGGREKO

For more than 60 years Aggreko has helped businesses manage their power demands – and now the focus is on doing so sustainably as LNG and renewables rise in stature

F

ar from its Glasgow HQ and the COP26 conference halls, around 150kms north of Kalgoorlie in Western Australia, Aggreko has been embarking on a new phase of industrial sustainability.

It has been integral to the development of a newly commissioned gas station at Ora Banda Mining’s Davyhurst Gold Mine, part of a broader global strategy to assist miners decarbonise their modular energy solutions.

Formerly running on diesel, the project – which provides around 8MW of power output – is believed to be the first to incorporate latest gas technology and involves a ‘virtual pipeline’ of gas being trucked over 650kms. It was installed in three months.

“We are very excited about this project,” said Rod Saffy, Global Head of Mining at Aggreko. “It’s going to save about 25,000 tonnes of CO2 and a great example of new technology coming to market, and miners having the foresight to commit to cleaner energy on site.”

Saffy says it now has similar projects up and running in four countries – two in Australia; two in Canada; one in Spain; and it is about to commission one in Chile. They are all between 6-10MW loads – five involve LNG truck gas and one is CNG compressed gas, and the distances are roughly the same, spanning between 500-1,000kms. miningglobal.com

29

AGGREKO

Aggreko powers smooth energy transition

Aggreko is on a mission to cut the amount of fossil diesel fuel used in customer solutions by at least 50% by 2030 and aiming to be net zero by 2050. The sustainable fortunes of its own business, and that of its clients, are very much entwined.

“LNG continues to be a strategically important option, and it’s certainly becoming more popular and providing a better option for our clients. Most mines that are running on diesel would prefer to run on gas,” said Saffy.

He foresees no reason why you can’t add a solar battery energy storage, and any other renewable, to this LNG arrangement.

“A good example would be our Granny Smith mine, where we have a gas-powered station and solar farm attached, and we’re looking at a wind option too,” he said, adding 30

January 2022

“ The Davyhurst project is going to save about 25,000 tonnes of CO2 and a great example of new technology coming to market, and miners having the foresight to commit to cleaner energy on site” ROD SAFFY

GLOBAL HEAD OF MINING, AGGREKO

AGGREKO

that it was one of the largest renewable microgrids in the world.

Power scale is a factor; if the loads get too high, nearing 30MW, then a lot of trucks are required as well as increased gas storage on site which means an increase in capital. “At this point it may make more sense to build pipeline infrastructure to the station, so it’s very situation dependent.”

Amid the transition from diesel to gas, renewables will continue to grow in stature, and batteries will reduce emissions further.

But access to gas can be a challenge.

“Not many mines have good access to pipelines, which traditionally has been a barrier to considering gas as a cost effective option.

However, we are seeing a trend where there are now more options available in the market to liquefying and transporting gas from the nearest pipeline,” said Whyte.

TITLE: GLOBAL HEAD OF MINING INDUSTRY: MINING LOCATION: GREATER SYDNEY AREA

EXECUTIVE BIO

Global knowledge at local level The advantage of global companies is when entering countries which may not be as developed, you can take established clean energy policies and commitments into these regions, added George Whyte, Managing Director, Australia Pacific and Global Mining Sector Leader at Aggreko.

“We are definitely the only true global company operating across all continents.

We apply global standards to mines, regardless of the country,” he said.

The company has seen rising demand in Africa, South and North America. It’s not only new mines which keeps Aggreko busy – mine expansions as well as scaling down a mine’s power needs is also important.

“There is an increasing trend, and definitely those running on diesel are looking to run on gas,” he said.

Aggreko is looking at alternate fuels, and as they become readily available, it will look

ROD SAFFY

Rod Saffy is the Global Head of Mining for Aggreko. Rod started with Aggreko in 2013 as an Area General Manager in the AusPac region, before quickly climbing the ranks to his current global position with the company. He is a business management professional with extensive experience in sales leadership, project management and engineering.

Having managed some extremely large teams of more than 250 employees, Rod has developed a high level of skill in people management, business and strategic management, sector deployment, complex matrix management and high performing teams.

With a Masters Degree in Engineering Business Management, and having worked for such companies as General Electric and Moog in previous roles, Rod has a strong background in the mining industry. His knowledge and experience are deeply ingrained, and he brings a deep understanding of the challenges and complexities of the mining sector to each project he engages in.

AGGREKO

GEORGE WHYTE TITLE: MANAGING DIRECTOR, AUSTRALIA PACIFIC AND GLOBAL MINING SECTOR LEADER INDUSTRY: ENERGY & MINING George Whyte became Aggreko AusPac’s Managing Director in 2013. He previously served as Sales & Marketing Director and Area General Manager, and has held various leadership roles within Aggreko since joining in 1999.

George brings extensive experience in the mining sector, having introduced the company’s Mine Cooling services and Life of Mine IPP contracts, and more recently solar hybrid solutions. Some of the company’s recent successes under George’s helm have included Gold Fields’ Granny Smith Gold Mine Power Station and Rio Tinto’s Amrun and Gove Power Stations. George’s recent focus has been to globalise Aggreko’s Mining Services with consistent standards of Quality, Technology and Expertise. He is very driven to support Aggreko’s customer base through its energy transition strategy.

George holds a Master of Business Administration (MBA) from Deakin University.

EXECUTIVE BIO

LOCATION: GREATER MELBOURNE AREA

at technologies which will support these fuels.

He foresees thermal power will continue to play a key element in hybrid solutions.

“When you think about renewables, it’s going to be a combination of solar, wind and storage. To achieve a high penetration, you will need all three. Everyone has different targets. We would like to reduce emissions for our customers and have a pathway to that.”

Typically solar accounts for less than half of your thermal load, but Saffy believes that will rise as batteries become more efficient.

“Mines will be able to access more storage.” he said.

Aggreko is exploring how it can integrate green hydrogen into its fleet, and combine it with renewables and battery storage to build efficient and resilient hybrid systems, which will help customers achieve their sustainability goals.

“ It’s been a very busy year for us, and we’ve not seen the same issues in mining that we have in some of our other sectors” ROD SAFFY

GLOBAL HEAD OF MINING, AGGREKO

Targeted approach to partnerships Predominantly Aggreko operates independently, often executing the engineer, procure, construct and manage (EPCM) process themselves.

Although many peers offer renewable solutions, not many have the experience required when managing off-grid mine power.

“Occasionally we’ll partner with specialist providers,” said Saffy. “In Chile, we’re installing a power station at 4,500 metres above sea level and using specialist local contractors.

“We are also technologically ‘agnostic’, and prefer to design a bespoke solution which will include the best combination of renewable and thermal technology.”

While most sectors have been impacted by the pandemic, mining, with its remoteness and scale, has weathered it better than most.

“The mining sector is used to managing risks, and has a lot of controls in place,” added Whyte.

“It’s been a very busy year for us, and we’ve not seen the same issues that we have in some of our other sectors. We are miningglobal.com

33

1962

Year Founded

400+ Number of Employees (AusPac)

£1.365bn Revenue British Sterling (2020)

34

January 2022

AGGREKO

“ I wouldn’t say it is for all companies but EaaS is a hot topic and increasingly miners are saying 'we do mining, you do energy' ” ROD SAFFY

GLOBAL HEAD OF MINING, AGGREKO

miningglobal.com

35

DID YOU KNOW...

MINERS ADOPT SUSTAINABLE SOLUTIONS Whyte said it is starting to see some companies adopt charging stations and believes hydrogen is definitely going to be a technology that presents itself in the near future.

“It feels that hydrogen is at the same place that wind and solar were 10 to 15 years ago - it’s a matter of time,” Saffy said.

“Whether it’s electric or hydrogen, it will mark a step change to ramping up green energy. Integration will be another game changing phase, not just the facilities but also the mobile equipment.”

36

January 2022

OPPORTUNITIES AND THREATS The greatest opportunities are the pace of change with the energy transition, and market expectations. “We’ve seen this sharp acceleration in customer collaboration, and need for ‘fast track’ options,” said Whyte.

The principal threat is the new technology, as it always carries investment risk, he adds.

“But the advantage of miners outsourcing it means they stick to their core business.

We are confident in our experience to manage the energy technology.”

AGGREKO

“ It feels that hydrogen is at the same place that wind and solar were 10 to 15 years ago - it’s a matter of time” ROD SAFFY

GLOBAL HEAD OF MINING, AGGREKO

very optimistic about the outlook in the next year or so, despite disruptions to the supply chain.

“We aim to replicate Australian mining standards globally for consistency, both in terms of energy technology and compliance.

A lot of developing countries are looking for the same standards, so that’s a unique offering being global. We’ve seen a great demand in the appetite among the global mining houses to engage with us.”

He said its key value propositions are its in-house technology and flexibility.

“Aggreko’s scale and access to equipment, as well as investment in technology, is a great platform to start with,” said Saffy. “We can meet customers’ early contact needs and as things change, we can bring in new technologies and deliver it under the same long-term contract.”

“We have committed to investing hundreds of millions of pounds a year to support our energy transition commitments towards becoming a Net Zero business by 2050.”

The mining sector needs more flexible solutions, and Aggreko focuses on mobile and modular and integrating them with technology. Aggreko is able to offer flexibility by leveraging its short-term contract business division, and its business model allows for low cost for upgrades / swap outs which reduces risk for miners.

Energy-as-a-Service (EaaS) is also rising in importance. “I wouldn’t say it is for all companies but EaaS is a hot topic and increasingly miners are saying “we prefer to do mining and we leave energy to specialists such as Aggreko,” said Saffy.

miningglobal.com

37

38

January 2022

FERREXPO

WRITTEN BY: DOMINIC ELLIS PRODUCED BY: ASHLEY KIRBY

FERREXPO FIRES UP DECARBONISATION AND AUTONOMY

miningglobal.com

39

FERREXPO

Interim CEO Jim North is firmly focused on decarbonisation, renewables expansion and autonomous fleet development

F

errexpo Interim CEO Jim North’s “big three” are probably not that dissimilar from many of his counterparts: growth, decarbonisation and technology.

But the fact that we spend the best part of an hour discussing them underlines their vital importance to the iron ore pellet company’s overall strategy.

North has been with Ferrexpo for seven years and Interim CEO since 2020. He speaks clearly and in an assured manner, which again is indicative of his focus.

As Group COO between 2014 and 2020, operational efficiency and discipline were priorities, but now as CEO, the task is how best to execute the growth and decarbonisation strategy for the Swiss-based commodity trading and mining company, listed on the London Stock Exchange, whose operations are in Ukraine; North is actually speaking to me from central Dubai, which seems strangely appropriate too for such an international entity (the Gulf city serves Kiev with two flights a day).

So to growth first. In its half-year results for 2021, revenues rose 74% to US$1,353 million, profit after tax came in at $661 million, and pellet production totalled 5.6 million tonnes; the pandemic-defying figures were attributed to a ‘multi-year investment programme in our assets’.

North remains humble though. “You never conclude business improvement – there are

40

January 2022

miningglobal.com

41

FERREXPO

Ferrexpo

“ Transitioning from a manned operation to autonomous is not just a case of buying the technology, bolting it onto the truck and letting them go. It’s about learning to live with autonomy” JIM NORTH CEO, FERREXPO

42

January 2022

different rates of implementation,” he reflects.

Operations and sustainability are now clearly two sides of the same coin.

Ferrexpo is aiming for 30% reduction in combined Scope 1 and 2 emissions by 2030 and to be carbon neutral by 2050. After achieving 16% and 6% reductions in 2020 and the first half of 2021 respectively, North is confident it will get there “well before” the scheduled date.

“We’re well down the path to achieving 30%,” he said. “We have no intention of using carbon offsets – we want to do real carbon reduction. We like to be conservative and over deliver. As we progress, you need to put more work in to get smaller gains.”

There are substantial amounts of renewables in the Ukrainian grid already but that will only take the company part of the

FERREXPO

JIM NORTH TITLE: CEO INDUSTRY: MINING LOCATION: DUBAI Jim joined Ferrexpo in November 2014 and since then he has successfully managed the Company's operations and introduced world class operating practices. Previously, Jim was Chief Operating Officer of London Mining plc, where he was accountable for setting the company's operational and investment strategy around the world. Prior to this, he held a variety of senior operational management roles in multiple commodities with Rio Tinto and BHP.

EXECUTIVE BIO

way in addressing Scope 2, so it is targeting solar and wind as possible solutions. It is already trialling a 5MW solar plant, and so far North is happy with the performance.

“We want to run it for a period of time to test the seasonal variations before we do more internal investment in renewables.”

It is also developing a small hydrogen test plant, and initially use it to replace natural gas in one of four pelletiser lines. Construction and commissioning will start by the end of next year.

Green hydrogen, for Ferrexpo, has two uses: as a gas replacement in the pelletisation process, and possibly to provide an alternative power source for mining auxiliary fleet.

“In terms of the overall renewables strategy, there has to be a blend. It isn’t cost effective to use hydrogen for power generation.

“We don’t want to take on significant tranches of debt. The commodity price will determine the rate of implementation of our decarbonisation plans.”

Electrification and energy efficiency are increasingly key subjects, especially as its fleet of 86 trucks is forecast to grow to 134 units. It has set a deadline for the first diesel engine replacement by 2027, though no manufacturer has been selected yet, and he said the “expectation” is that its primary mining fleet will decarbonise by 2032.

Meeting its own emission targets is just one element in the sustainable equation, and there are many uncertainties in the wider steel industry.

“We recognise that steel industry will need to significantly reduce carbon inputs to meet their obligations. We’re seeing car manufacturers under pressure to have carbon-free steel by 2030, which will be tough – 2040 to 2045 may be more feasible.” He said the bigger question is

FERREXPO

“ As we expand our business, we need to add lab and analysis capacity, and robotics is well advanced in these areas” JIM NORTH CEO, FERREXPO

46

January 2022

FERREXPO

Autonomous trucks

how are steelmakers going to fund the transition from traditional blast furnace technology to processes with reduced carbon inputs?

“China has invested a lot in traditional steelmaking processes over the last 20 years – for them to scrap all that, and implement direct reduction processes, would be a significant cost. It's not yet clear how European steelmakers are going to fund decarbonisation – that’s going to be multiple billions of dollars. Ultimately the cost of this transition will be passed onto the end consumer and steel will be more expensive, but it’s clear it’s needed.”

Autonomous focus drives digital growth Autonomy is an increasingly core focus within fleet development, and currently six trucks (CAT-793, 220 tons) are self-driving. miningglobal.com

47

FERREXPO

48

January 2022

FERREXPO

“We broke the project and robotics is well RISING TO EMISSIONS into two phases, the first advanced in these areas.”

CHALLENGES is six trucks, the second is With pellets firing nine. We’re holding off the at 1,400 degrees, AI is Currently, global steel deployment of the further also being courted to production accounts for 7% nine until we’ve operated measure variability in the six for a significant of global carbon emissions, off-gases to manage representing more than all of period,” he said. process variation. the emissions from the world’s “Transitioning from a “That will be a cars put together manned operation to significant advantage autonomous is not • Ferrexpo’s iron ore pellets for us in future. AI can reduce carbon emissions by 40% just a case of buying manage more variables for every tonne of sinter fines the technology, than a traditional control replaced with pellets bolting it onto the room operator.”

• Ferrexpo has invested over truck and letting He doesn’t envisage them go. It’s about US$2.9 billion in its operations in that jobs will go in the Ukraine since its IPO in 2007 learning to live new digital age, more • It invested $17 million with autonomy. that skills will evolve. in environmental projects The computer “A good example in 2020 doesn’t have any of this is we employ judgement – it will 12 surveyors who are only do what you ‘autonomous road tell it to do.” builders’ mapping the routes – that’s a Productivity is very important, role that didn’t exist before autonomy. and using robotics is going to play an We also have more network engineers increasingly key role. Jim says Ferrexpo in our business now to manage the is thinking about implementing communication networks – and if you’d robotics in its future mining labs. said to me 10 years ago we’d have a team “As we expand our business, we of drone pilots today, I wouldn’t have need to add lab and analysis capacity, believed you.”

“ I changed the leadership development programme, which was largely focused on hard skills, and now there’s a greater focus on cultural change” JIM NORTH CEO, FERREXPO

miningglobal.com

49

QUARRY MINING

DEDICATED to Becoming the BEST in the Market

WRITTEN BY: CATHERINE GRAY PRODUCED BY: ASHLEY KIRBY

50

January 2022

QUARRY MINING

miningglobal.com

51

QUARRY MINING

2002

Year Founded

140

Number of Employees

$15mn Revenue USD

52

January 2022

QUARRY MINING

Moritz Kerler, CEO and Christian Drewes, Technical Director and Deputy General Manager discuss the huge impact technology has made on the industry

Q

uarry Mining LLC design, manufacture and install industrial mineral processing plants, bulk handling systems and environmental technologies in any plant configuration. The company aims to provide the best value for money to its clients and is a reliable partner for suppliers.

Supporting industries in the MENA region, Quarry Mining has developed different, successful systems for bulk material handling, designed and built mineral processing plants for its market and has introduced dedusting filter systems for various applications.

CEO of Quarry Mining, Moritz Kerler, explained how he founded the company 19 years ago in the United Arab Emirates where the company now carries out its operation.

Kerler emphasised his drive to support the quarry and mining industries, saying: “We want to become the best in our field, so now we are focusing on the growth of the company.”

As with many companies across the globe, Quarry Mining had to adapt to the restrictions brought about by the COVID19 pandemic. The company’s Technical Director, Christian Drewes explained how the company has changed over the past year, he said: “We have moved from being on-site and now, more or less, everything is digital.”

However, he did add that these changes don’t come without their downfalls: “Although you can get far more information within a far shorter time, it can feel far more impersonal because you don't have close contacts to your clients or to other people miningglobal.com

53

QUARRY MINING

Quarry Mining have a qualified and highly motivated team of around 150 staff and offer solutions with no restriction to the size of the project.

“ We want to become the best in our field, so now we are focusing on the growth of the company” MORITZ KERLER CEO, QUARRY MINING

54

January 2022

on-site in the projects. It's good in some ways but it's also bad in others. Ultimately, digital technology is helping a lot to make things easier and improves the ability to gain information faster and more efficiently.”

To support workers as they adapted to this new way of working, Drewes explained that Quarry Mining utilised a lot of different technologies to facilitate remote working, he said: “To keep people remote where we could, we provided a VPN connection and access to all files from people’s homes.

This is when we realised that working remotely was possible and the business still operated effectively.”

QUARRY MINING

MORITZ KERLER TITLE: CEO COMPANY: QUARRY MINING

“Now, we have all of our information stored in the cloud and we also use Office 365 so we can share things via Teams.

We have had to learn a lot about how to communicate efficiently to adapt to this new environment,” he continued.

Determined not to slow down business operations throughout the pandemic, Quarry Mining learnt they were able to do tasks, such as complete commissioning, online. Drewes said: “Although it is a new way to work and handle things, we have adapted well. Our business operations have changed, but the result of our product has remained high quality.”

EXECUTIVE BIO

Moritz Kerler is a German National and was born in 1949 in a small village in South Germany. After a thorough Commercial Education, he was lucky to gain experience from various mentors, company owners and CEOs. One of them was Dr. Reihle, CEO of Maschinenfabrik Weingarten (Press maker for the automotive industry) for whom he worked as a personal assistant.

In 2002 at the age of 53 Kerler moved to the Middle East, to UAE where he established Quarry Mining LLC. He managed to group a great team of brilliant and dedicated experts around him, was choosing business opportunities very careful and been extremely successful. He wishes to offer all his future for his company family “Quarry Mining” and try to make it the best in its field and its territory.

QUARRY MINING

Quarry Mining: dedicated to becoming the best in the market

Utilising the latest technology to promote zero-harm Not only has technology been a huge support for Quarry Mining as it adapted to remote working, but it has also helped the company with its zero-harm ambition.

Workplace injuries occur in manufacturing industries at a significantly higher rate than in other industries. A zero-harm workplace would mean employees, contractors and visitors would not need to calculate the safety of their own movements as the worksite is designed to guarantee safety.

As a key player in the quarry and mining industry, Quarry Mining operates a lot of different machinery which has the potential to cause injury. Drewes explained how technology has helped them begin to create a zero-harm workplace: “As an example we use the newest technology within our welding helmets to automatic darkening the glass the 56

January 2022

QUARRY MINING

“ It is really important to us that the people we work with are also climate-conscious.

We only have one planet, and we believe it is everyone’s job to protect it” MORITZ KERLER CEO, QUARRY MINING

moment the spark will occur. This helps us reduce risk as in the past we have had a lot of injuries and hospital visits. We always make sure we protect people in our factories.”

The company is also realizing the benefits of automation to the general running of its business operations, but also as a support for its zero-harm and safety initiative.

As a driver for greater efficiency, Drewes explained where the company is implementing this technology to improve: “We are using the latest technology such as welding tractors, welding robots and automated machines in the factory to make things more automated. This takes the people away from dangerous situations to reduce the amount of harm on site.”

Adding to this, Quarry Mining has decided to digitalise its training process, including safety regulations, so all employees have the opportunity to remind themselves of safety processes if needed.

“We provide supporting videos with our training sessions to show people how to do certain things and how to manage different situations as well as safety instructions. We can use these for new employees to make sure they are up to speed,” said Drewes.

Promoting sustainability in both production and manufacturing With its ambition to become the best in its field, Kerler explained his plans to develop a climate-conscious company: “Especially after what the pandemic has shown us, we are now dedicated to looking at the sustainability side of our business.”

Although the company looks to many of its strategic partners, including FLSmidth, ThyssenKrupp, Kleemann and Stiebel, Kerler stressed the importance that these companies' sustainable targets and goals align with Quarry Mining. miningglobal.com

57

QUARRY MINING

58

January 2022

QUARRY MINING

CHRISTIAN DREWES TITLE: TECHNICAL DIRECTOR AND DEPUTY GENERAL MANAGER COMPANY: QUARRY MINING

EXECUTIVE BIO

He said: “It is really important to us that the people we work with are also climateconscious. We only have one planet, and we believe it is everyone’s job to protect it.

We like to deal with other companies that have sustainable goals aligned with our own. This brings more joy when working with them because they have the same philosophy as us.”

Echoing this, Drewes empahsised the importance of sustainable operations to the company: “We would rather lose business than work on a project where we know they are using polluting machinery or materials because that is not what we stand for. We want sustainable products which take everything into account throughout the value chain.”

As the world fights against climate change, it is particularly important industries in the mining and quarry industries take responsibility for the impact their operations have on the environment. Not only can

Frederic Carl Christian Drewes is a professional Engineer and holds a Bachelor of Engineering in Electrical Engineering and a Master of Science in Electrical Engineering and Business Management.

He has worked for ‘Quarry Mining LLC’ in Ras Al Khaimah since 2014 as its Technical Manager and since 2021 as Deputy General Manager. He successfully leads several projects worth multi million Euros and works to further develop and grow the company, strengthening its position within the market. He does not only focus on the technical elements of his role, but he also works to ensure the economy of all projects, via efficient financial controlling, contract management and project management.

QUARRY MINING

The company can design, manufacture, and install mineral processing plants, bulk handling systems and environmental technologies in any plant configuration.

60

January 2022

QUARRY MINING

mining pollute air and drinking water and harm wildlife and habitat, but it can also permanently scar natural landscapes.

Understanding the importance of incorporating sustainability into its operations, Quarry Mining has realised the potential of digital technology, but this time as a support to its sustainability ambitions.

“We are using the latest 3D technologies for all our engineering and designs,” explained Drewes.

“The introduction of this technology means we are now using less raw material and using all resources efficiently. We are using automated program to calculate how the raw material can be used in the most efficient way. Now, we have nearly zero cutoffs from the material we use, which also saves us money. The less waste you get from a material, the more efficiently you use it,” he added.

Quarry Mining is also looking at ways to tackle sustainability in the production side of the company as well as the manufacturing.

To reduce energy consumption the company Quarry Mining has installed energy-saving meters to track its energy consumption and aim to reduce energy use where it can. Drewes added: “The aim is to make different processes more efficient by using less energy.”

“ The introduction of technology means we are now using less raw material and using all resources efficiently” CHRISTIAN DREWES

TECHNICAL DIRECTOR, QUARRY MINING

Responding to the changing needs of the quarry and mining industries Undoubtedly the quarry and mining industries have massively changed over the years and as with many industries, technology has played a massive role in driving this change. Having worked in the industry for a long time, Kerler explained that in the last decade he has stepped up his company to meet the industries’ growing demands. miningglobal.com

61

QUARRY MINING

He said: “Things have definitely changed over the last decade in the quarry and mining industry. Operations have become increasingly bigger and as a result, smaller companies closed, and businesses concentrated on larger projects.”

“We designed the biggest crushing and screening plant for limestone. This plant is operating at a much lower cost per ton than it ever would have been able to achieve in the past. There are also many new products around that we can use to support our operations. I have seen a big change in the way the industry operates throughout my career,” added Kerler.

Expanding on this, Drewes highlighted what catalysed this change, he commented: “Operations are only increasing in size. The 62

January 2022

bigger you can get, with lower operational costs, the better your company will be. It’s only the development of new technologies that have made it possible for operations to grow.”

“To have large operations, you need new, larger machines and complex control systems; this is not possible without the development of technology. Things like the introduction of cloud connection, integrated systems and improved electronic offerings mean we can operate differently than ever before. It is technology that has brought us up to this level of efficiency,” Drewes continued.

With rapid advancements in technological innovation, including automation, digitisation, and electrification, it comes as no surprise that both Kerler and Drewes are seeing fundamental changes within their industries.

“We want to utilise this technology to become even more efficient” CHRISTIAN DREWES

TECHNICAL DIRECTOR, QUARRY MINING

Adapting Quarry Mining to be fit for the future In order to respond to these changes, Quarry Mining is keen to adapt and grow to meet the demands of the market, and as Kerler previously explained, become the best in the market.

Drewes outlined Quarry Mining’s path to becoming the best in its field: “To do so, we want to have a product that is of very high quality. We also know the importance of technology to get there. We want to utilise this technology to become even more efficient.”

Adding to this, Drewes said: “Everything is becoming digital. If you look at the mining industry, very few mines and quarries have the old setup without some technology. If you don’t continuously

replace and upgrade plants without the state-of-the-art technology, you will miss out on opportunities.

“We have a lot of plants where we want to upgrade the technology, so they are fit for purpose. We want to upgrade the electrical systems and make the data from the plants available on the cloud. This will allow the clients to gain more information from the plants and digitalisation will help us make older plants more efficient in the future,” he concluded.

miningglobal.com

63

Change is hard. The truth is that many mining companies are still very hesitant about furthering their digital mining transformations in fear of cost of implementation, risk and uncertainty.

However, digital solutions from AVEVA can help mining companies reduce complexity and optimize business and operational performance. aveva.com @avevagroup linkedin.com/company/aveva

For more information, read our free E-Book on Digital Mining Transformation.