Mining Global - February 2020

ADVANCED TECHNOLOGIES THAT SUPPORT IMPROVED SAFET Y AND PRODUCTIVIT Y

F E BR U A R Y 2 0 2 0

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Deep passion for commitment to driving change in industry

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FOREWORD

W

elcome to the February issue

harnessing data to drive the industry

of Mining Global magazine!

towards the digital mines of the future.

“The whole point of our digital

“We believe industrial businesses

transformation is to build a foundation

are ready to move towards business

to prepare ourselves for the next

reinvention: scaling digital and AI and

phase of growth to support key out-

embedding it in the business,” says

comes of enhanced safety, improved

Manish Chawla, IBM’s Global Manag-

productivity and reduced costs with

ing Director for Energy and Resources.

true technology innovation.” For our

“The key to winning is centred

cover story this month, Barun Gorain,

around what we at IBM call the

Chief Technology and Innovation

Cognitive Enterprise.”

Officer at Vedanta Resources, explains how Hindustan Zinc is leveraging technology to aim for zero waste and maximum metal recovery for the company’s flagship digital mines at Rampura Agucha and Sindesar Khurd

Elsewhere, we also speak with New Century Resources, Eramet, and MST Global about how each of their innovative and technological strategies are driving success.

in Rajasthan, India.

Sharpening our digital focus, we also profile the work being done by IBM’s Energy and Natural Resources business unit. The organisation is helping mining companies solve prob-

Do you have a story to tell? Email daniel.brightmore@bizclikmedia.com to join the conversation with Mining Global.

Enjoy the issue!

lems from connectivity through to autonomous solutions, along with

Daniel Brightmore, Editor

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EDITOR-IN-CHIEF

DAN BRIGHTMORE EDITORIAL DIRECTOR

MATT HIGH

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CONTENTS

REIMAGING MINING TO IMPROVE PEOPLE’S LIVES

32

OCEANAGOLD: INNOVATION, PERFORMANCE AND GROWTH

CONQUERING DISTANCES AND ENVIRONMENTS

68 76

46

USES OF COPPER

58

90 Events

THE PROFESSIONAL DRILLING EXPERIENCE Drillon is a newly established drilling company with a globally experienced, highly focused and motivated multinational team from the drilling industry. With a success-oriented team our aim is to give our clients “the professional drilling experience”.

DRILLING

CONSULTANCY

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94

New Century Resources

130 Eramet

IBM Industry Academy

112

10

Aiming for zero waste and maximum metal recovery WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RICHARD DEANE

FEBRUARY 2020

11

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H I N D U S TA N Z I N C

How Hindustan Zinc, a subsidiary of Vedanta Resources, is aiming to make its flagship Sindesar Khurd and Rampura Agucha operations the most advanced digital mines in the world

H

industan Zinc is India’s only zinc producer and among the world’s top three zinc producers today. A subsidiary of Vedanta

Resources, the company’s flagship operation, Rampura Agucha (Agucha) in Rajasthan, is the 12

world’s largest mine for industrial metal. Allied to this, and strategic to the company’s growth, is the Sindesar Khurd (SK) mine offering a rich source of silver along with zinc and lead. Hindustan Zinc also runs three large smelting operations at Chanderiya, Dariba and Debari in north west India and 10 milling facilities across the country.

“How do we drive efficiency to support future growth across our operations?” asks Barun Gorain, Chief Technology & Innovation Officer at Hindustan Zinc, Vedanta Resources. “The whole point of our digital transformation is to build a foundation to prepare ourselves for the next phase of growth to support key outcomes of enhanced safety, improved productivity and reduced costs with true technology innovation.”

FEBRUARY 2020

13

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H I N D U S TA N Z I N C

“The whole point of our digital transformation is to build a foundation to prepare ourselves for the next phase of growth to support key outcomes of enhanced safety, improved productivity and reduced costs with true technology innovation” — Barun Gorain, Chief Technology & Innovation Officer, Vedanta Resources

16

FEBRUARY 2020

CLICK TO WATCH : ‘CORPORATE FILM HINDUSTAN ZINC DIRECTED BY MANEESH JOSHI’ 17 Gorain points out that few mining

business operation models for each

companies work in this way: “We

and every part of a unit operation so

take a very holistic view of this digital

that we can go beyond data analysis

innovation with a portfolio focused on

with a system based approach and

three areas to build that foundation.

official automation.

Critically, the first step is to integrate

“This leads us into the third area.

all of our operating data into one

Digital alone is not going to help us so

platform so it can enable the digital

we must support our subject matter

enterprise with all of the financial,

expertise. Many companies across the

commercial and HR systems.

globe go digital but without strength-

“Secondly, with all the data on a sin-

ening their core know-how, which for

gle platform, we have begun a deeper

us is mining, milling and smelting. The

analytics drive where we’re looking

idea is to leverage digital, which is just

not just at predictive and prescrip-

the enabler to help us in optimising all

tive controls, but also at developing

of our individual operations. Now this w w w.mi ni nggl o b a l. com

Cisco enables digitization of India’s largest underground mine, Hindustan Zinc Limited As the digital transformation technology partner of Hindustan Zinc, Cisco deployed a scalable and secure underground mine network to improve the efficiency of the mine’s operations, extend the life of its assets, and control costs while supporting its present and future demands.

In association with Cisco, Hindustan Zinc aims to develop a fully connected, efficient, safe and collaborative mining system.

CLICK TO WATCH: HZL’s mining 4.0 journey powered by Cisco

Welcome to the future of connected mining!

“Digitization is the future and our partnership with Cisco is going to help us move in that direction.”

- Barun Gorain Chief Technology and Innovation Officer, Hindustan Zinc

19

approach is actually quite deep, com-

asset tracking, people tracking, asset

pared to most companies, and this is

management, short interval controls,

where we see the benefits.”

automated scheduling & task manage-

In embracing Mining 4.0 Gorain’s

ment management,” he says. “We are

team is using the OSI-PI system to

doing this at a scale not seen before in

bring all operating data – mining, mill-

any underground mining scenario, it’s

ing, smelting and power plant – into

a game changer.”

one platform which will eventually be

To change the game, Vedanta has

integrated with SAP. “We are looking

recently inaugurated their Hindustan

to digitally integrate 1,500 people, over

Zinc Collaboration Centre based at

200 pieces of equipment and several

the company’s head office in part-

different outsourced business part-

nership with OSIsoft and ABB to

ners at our flagship SK and Agucha

improve efficiency, safety and sustain-

mines. It allows us to do real-time

ability while enhancing value across w w w.mi ni nggl o b a l. com

The cutting edge of underground productivity and safety True digitalization of underground mines with double digit productivity increase, unparalleled efficiency and increased safety in modern mines.

The undisputed leading product portfolio Mobilaris Mining Intelligence™ features: - Real-time Situational Awareness with 3D visualization opens the lid and enables transparency. Everyone, everywhere will know what is going on down below.

- Emergency support. Unique functions that dramatically increase mining safety.

- Ventilation on demand. Let the presence of machines control the ventilation.

- Complete suite for Short Interval Control including shift-planning and work task dispatch.

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- In-shift Production Monitoring features that shows the true real-time status about the shift.

- Totally technology and vendor agnostic.

Our unique agnostic approach allows realtime location, tracking and monitoring of vehicles, personnel and any equipment using a mixture of technologies (e.g. LTE, WiFi, UWB, RFID) from various vendors.

LEARN MORE

True digitalization of underground mining With new innovative technology Mobilaris Mining & Civil Engineering takes digitalization of mining operations to the next level. So far, the result has been double digit productivity increases, higher efficiency and increased safety for the mining industry.

Many mining companies around the world are facing daily challenges that make the mining operations unpredictable, resulting in a waste of valuable time and inefficient use of machines, assets and equipment. During a normal shift, there are many obstacles that can cause differences between planning and reality, for example machine breakdowns and people taking the wrong decisions due to lack of information.

both empower people by increased transparency, increase productivity by less traffic congestions and a safer work environment”, says Hans Wahlquist, VP Business Development and Strategic Product Management at Mobilaris.”

When every second counts

In the case of a stressful situation like a fire or a collapse that requires evacuation of the mine, time is of essence.

Rescue personnel and evacuation leaders need to have the best tools available to ensure that the evacuation is done as quickly as possible and according to defined procedures. With Mobilaris Emergency Support, rescue personnel have access to real-time information on “We help mining companies to become aware where in the mine people are located – knowing who is safe and who is not. Studies show that with these of what is going on in the mine, right tools in hand, the time to evacuate people in danger here and now. Every day, all the time. is dramatically reduced.

This information makes it possible to take control over the operations and the resources. With our digital In partnership with Hindustan Zinc Ltd solutions people can act upon what Hindustan Zinc Ltd has partnered up with Mobilaris is happening in real-time and make Mining & Civil Engineering to digitalize the Rampura the right decision faster. We offer Agucha mine, their flagship of mining operations. tools for new, more efficient, ways of working”, says Mikael “We feel honored that Hindustan Zinc has chosen us Nyström, CEO Mobilaris Mining as a partner for modernizing their mine operation & Civil Engineering. even further. We will provide solutions for smooth and seamless operations that defines new, more efficient, ways of working“, Says Mikael Nyström, Mobilaris Onboard ™ CEO Mobilaris Mining & Civil Engineering.

A disruptive innovation

The latest product from the Swedish company is Mobilaris Onboard, a unique product that runs on a standard tablet mounted in a vehicle.

Just like with a GPS car navigator, Mobilaris Onboard™ makes it easy for anyone underground to navigate to a location or to a moving asset without any specific knowledge about the mine. Without any dedicated infrastructure for positioning needed.

“We are confident that Mobilaris Onboard™ will cause a paradigm shift in the underground mining industry. It makes every miner aware of the whole real-time situation in the mine and enables a set of unique tools that will

The partnership includes solutions for situational awareness designed to visualize and support the mining operations in all its complexity, in real-time.

By implementing superior real-time 3D visualization with information from various systems and sensors, Hindustan Zinc will have the tools for superior control and planning of their mining operations.

Hindustan Zinc Ltd will also be among the first customers worldwide to implement the new disruptive product Mobilaris Onboard™, for navigation underground and a smoother traffic flow.

EXPLORE OUR WORLD

H I N D U S TA N Z I N C

22

Hindustan Zinc’s operations. “The

operations. ABB, as one of the world’s

unique thing here is that we’re con-

top experts in control innovation, is sup-

necting all our operating people with

porting us on this quest.”

OEMs, subject matter expertise and

Looking long-term, the company

our data scientists,” explains Gorain.

vision is moving towards converting all

“OSIsoft and ABB are helping us to con-

of its underground mining operations

nect our operating data across all of our

from batch to continuous with the

mines, mills, smelters and power plants.

support of next generation technolo-

It’s a crucial initiative because, along

gies, including underground hydraulic

with insights, we’ll be able to predict

ored pumping solutions to enable

things in real-time and collaborate in

mining with minimal or no tailings or

a way that allows us to maximise the

waste. “From an extraction or recov-

benefit that digital solutions from SMEs

ery point of view, we’re looking at

can have in helping us to optimise our

completely digitised equipment to aid

FEBRUARY 2020

the recovery of minor, major and pre-

improvement from 81% up to 92%,” he

cious metals,” adds Gorain. “In parallel,

adds. “Silver recovery is forecasted

greater efficiency will come from fine

to rise from 57% to 70% leading to an

tuning via digital means.”

additional 70,000 tons of lead-zinc

Gorain’s team is targeting benefits

metals.” Gorain stresses that enhanc-

on the mining side to improve effi-

ing safety is a key aspect and one

ciency by 15% which translates to

of the major reasons why SK mine is

74,000 tons of extra metal by 2021

considered one of the most digitally

– a huge gain. “Meanwhile, on the

advanced mines in the world. “With

milling side we’re looking at recovery

safety as a top priority, continuous

E XE CU T I VE PRO FI LE

Barun Gorain Barun Gorain has more than 25 years of experience in metallurgical plant operations, plant optimisation, capital (growth) projects, technology development, metallurgical consulting and also in technical advisory and board roles. Focused on operational excellence, technology innovation, as well as technology transfer with demonstrated benefits and breakthroughs for projects and operations, before returning to Hindustan Zinc he worked for Barrick Gold and Teck Resources. “I’m a metallurgist by background and combined with my experience with digital innovation I’m in a unique position to be able to understand both worlds so we can take Hindustan Zinc to the next level,” pledges Gorain. “When we look at our business needs for future growth it’s vital to bring these two strands together to make our mining, milling and smelting more efficient to meet our long-term goals and vision.”

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“We are looking to digitally integrate 1500 people, over 200 pieces of equipment and several different outsourced business partners at each of our flagship mines. It allows us to do real-time asset tracking, people tracking, peak management, internal controls, automated schedule link up management, you name it” — Barun Gorain, Chief Technology & Innovation Officer, Vedanta Resources mining, automation, digitisation, less

have to lay out the cables and the

man-machine interaction, remote

network on a daily basis. As we go

monitoring and real-time visualisation

deeper underground, the challenges

of people will be a tremendous leap

keep evolving, so these partners make

forward which will also lower the cost

sure we have the best of the best with

of production.”

mobile networking and LTE to access

Underground wireless communications are vital to be able to integrate

all of our data in real time.”

Sandvik has been instrumental

new solutions. “It is the foundation,

at the SK mine, where it provides

along with the sensor technology, on

Hindustan Zinc with around 90% of

which everything else is built,” con-

its equipment. “The first phase of this

firms Gorain. “To achieve this, we’ve

digitisation through our collaboration

partnered with Cisco at the SK mine

with Sandvik has now been com-

and with Israeli company Eurotech

pleted focusing on driving efficiency,”

at the Agucha mine. The whole idea

confirms Gorain. Meanwhile, at the

is that networking is something that

Agucha mine, the company is also

doesn’t really finish anytime soon, we

partnering with Mobilaris who are w w w.mi ni nggl o b a l. com

25

H I N D U S TA N Z I N C

A New Mining Paradigm

26

“The existing mining paradigm is not sustainable in the long-term,” argues Barun Gorain, Chief Technology & Innovation Officer at Vedanta. “Much of the material generated from mining is waste. For example, with base metals typically 90% is waste.

This increases our footprint, heightens risk and can trigger environmental hazards within our communities. We need to ask ourselves why we generate waste in the first place. It’s why we’re pushing towards a new mining paradigm through automation, electrification and digital solutions to help us deliver the extraction of metals with minimum waste. Governments, NGOs and communities are asking the same question: ‘Why can’t we develop a better way of mining?’ We’re committed to delivering the innovation to achieve that goal.”

Barun Gorain, Chief Technology & Innovation Officer, Hindustan Zinc, Vedanta Resources

FEBRUARY 2020

Inside Hindustan Zinc “We are leveraging digital solutions to improve our availability, utilisation and productivity at the Sindesar Khurd (SK) Mine,” says Sunil Duggal, CEO at Hindustan Zinc Limited. “With OptiMine® we will be able to plan, schedule and monitor overall operations in real time. This will add major value and increase our productivity, eliminating bottlenecks, and allowing us to measure and monitor our key performance indicators in real time, proactively addressing problems before they occur.”

Sunil Duggal, CEO at Hindustan Zinc Limited

“SK Mine has embarked on a major digital transformation journey in partnership with Sandvik and Cisco. We are now considered the most digitally advanced mine in India, but we aspire to be the world’s most advanced digital mine by 2022,” pledges Rajeev Bora, SBU Head SK Mines.

“We have our unique set of complexities but the ongoing digital program will allow us a step change in safety and productivity.”

27

Rajeev Bora, SBU Head SK Mines “Digitalisation is becoming the new way of working at Rampura Agucha,” agrees Sujal Shah, Director Agucha SBU. “Let us all become the agents for change in t ransforming our mines to become Sujal Shah, digitally advanced Director Agucha operations.”

SBU

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H I N D U S TA N Z I N C

28

FEBRUARY 2020

10.5%

Average zinc-lead grade

Zinc

Reserve base of 105.7mn MT

78%

Share in India’s primary zinc industry

29

providing connections for visualisa-

he concedes. “We want to make peo-

tion and equipment tracking. “They’re

ple think more about how we plan for

helping us to leverage digital to com-

the future across such a large work-

municate in a way that keeps all of our

force. Change management is always

teams aligned,” he adds. “We’re reduc-

an issue, so we are educating employ-

ing the time of the track operations,

ees about how digital is not going to

improving the asset optimisation, and

take jobs away but create new ones

it’s helping us better predict our main-

in safer areas of the business with

tenance needs.”

less physical labour requirements in

Continuous alignment is a challenge that Gorain believes must be met to ensure all teams are looking at one

different roles where technology can support them.”

The benefits of new technologies

truth with minimal manual intervention.

are evident with Gorain’s team’s

“There’s always resistance to change,”

recent initiatives on advanced w w w.mi ni nggl o b a l. com

H I N D U S TA N Z I N C

30

“With safety as a top priority, continuous mining, automation, digitisation, less manmachine interaction, remote monitoring and real-time visualisation of people will be a tremendous leap forward which will also lower the cost of production” — Barun Gorain, Chief Technology & Innovation Officer, Vedanta Resources

FEBRUARY 2020

for one shared truth. Second, we deploy the right analytics solutions to enhance the working environment of everybody across the company. Third, we have to integrate the subject matter teams into the digital way of doing things. These three areas combine to help us identify the right technologies for the right purpose so that our guiding principles - in terms of enhancing safety, productivity, and reduced costs - are in alignment with our vision.”

Vedanta and Hindustan Zinc’s vision is to make the SK and Agucha operations one of the most advanced digital mines in the world. “Our goal is to achieve the highest benchmark process controls. “We’ve had great

of recovery and metal extraction in

success at Zawar,” he says. “We

the zinc industry,” says Gorain. “Not

have experienced a 10% increase in

just lead-zinc major metals, but also

crusher throughput, and around a

the minor and precious metals such

3 - 5% increase in recovery, which is

as germanium, cobalt, and silver.” The

really quite remarkable.”

vision for mining in India and a move

Gorain notes that with so many technologies to choose from the problem

towards zero waste looks set to welcome a new mining paradigm.

can be selecting the right one. “To meet this challenge, our three-stage approach has been very useful,” he explains. “First, we must make sure to integrate all the data into one platform w w w.mi ni nggl o b a l. com

31

LEADERSHIP

32

FEBRUARY 2020

G N I N I M G N REIMAGI TO IMPROVE S E V I L S ’ E L P PEO How Anglo American is leveraging FutureSmart Mining to resource the future at the Quellaveco copper project in Peru

WRITTEN BY

DAN BRIGHT MORE

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33

LEADERSHIP

A

nglo American’s presence in Peru began over 25 years ago, when it purchased the Quellaveco copper project

in the Moquegua region; in July 2018, the board

approved the development of the project when partner Mitsubishi increased its interest to 40% aligned with a pre-funding CAPEX commitment of $500mn. Quellaveco involves a substantial investment of more than $5bn, and will create 15,000 jobs during construction and approximately 2,500 jobs when in operation, increasing Peru’s copper production by a forecast 300,000 34

tonnes per year.

Since the project was approved, engineering, contracting and procurement are well advanced, with site earthworks also meaningfully progressed and concrete and steel installation underway.

The full complement of accommodation required for workers was built during the first half of 2019.

First production is expected in 2022, with the ramp-up complete in 2023.

SOCIAL LICENSE TO OPERATE “Quellaveco is a very rare and attractive opportunity to develop a world-class copper mining operation that will operate in the lower part of the cost curve,” pledges Tom McCulley, CEO Anglo American Peru & Group Head of Projects.

Obtaining and maintaining a social license FEBRUARY 2020

35

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LEADERSHIP

“ QUELLAVECO IS A VERY RARE AND ATTRACTIVE OPPORTUNITY TO DEVELOP A WORLD-CLASS COPPER MINING OPERATION THAT WILL OPERATE IN THE LOWER PART OF THE COST CURVE” — Tom McCulley, CEO Anglo American Peru & Group Head of Projects

and represents 60% of exports. “The support of the surrounding communities is the result of an innovative 18-month

36

to operate is a key challenge that

consultation with local authorities and

any mining company must overcome

community representatives from the

when developing a new project. “It is

Moquegua region,” explains McCulley.

only through being responsible and

“Through this ‘dialogue table’, we have

collaborative partners that we will be

agreed to 26 detailed and specific short

able to achieve that level of trust that

and long-term commitments relating

society demands from us,” continues

to water management, environmental

McCulley. “We have had a per-

protection and social investment.”

manent engagement with the

For example, by ensuring that the

local community and continue

water required by the operation

to enhance and build support

is drawn mainly from a river natu-

as a long-term partner for the

rally unfit for human or agricultural

community of Moquegua.”

use and, additionally, by collecting

Mining is important for the Peruvian economy.

The country is the

excess rainfall and sharing it with the communities, McCulley notes Anglo

world’s second

is delivering on

largest copper

its promise of a

producer; min-

positive water

ing accounts for

impact for local

around 10% of

people and their

Peru’s total GDP FEBRUARY 2020

livelihoods.

CLICK TO WATCH : ‘WELCOME TO QUELLAVECO’

“The things I’m proudest of include

of Commerce of Moquegua and

water and employment,” he says. “Out

Ilo. The fund is designed to allocate

of the 11,000 people we have hired

investments for the development of

(so far), 44% are locals. That is a great

important initiatives for the region.

achievement on a project of this scale.

For example, a $30mn agricultural

Once the mine is up and running, our

infrastructure project that will benefit

canon and royalty payments will reach

more than 10,000 farmers and a

$150-200mn annually, which should

$10mn investment to improve edu-

help improve roads, schools, water

cation, specifically offering higher

treatment and health infrastructure.”

technological education.

In 2014, the Development Fund of

“Furthermore, we have established

Moquegua was established with the

the Quellaveco Fund, a $3mn fund

authorities from regional and local

financing 45 projects that benefit more

governments and the Chambers

than 25,000 people,” adds McCulley. w w w.mi ni nggl o b a l. com

37

LEADERSHIP

“ FUTURESMART MINING IS OUR INNOVATION-LED APPROACH TO SUSTAINABLE MINING THAT WILL TRANSFORM THE NATURE OF HOW WE SOURCE, MINE, PROCESS, MOVE AND MARKET OUR PRODUCTS. IT’S ABOUT TRANSFORMING OUR PHYSICAL AND SOCIETAL FOOTPRINT” — Tom McCulley, CEO Anglo American Peru & Group Head of Projects

38

“The NGOs supporting these projects

Mining programme) is Thriving

are key allies for the development of

Communities, the other two are

Quellaveco and we are proud to be

Trusted Corporate Leader and

working alongside them.”

Healthy Environment,” says McCulley.

Anglo has committed to a commu-

“The key partnerships enabling us

nity investment spend of approximately

to develop the Quellaveco project are

$300mn over the next 30 years to

those that were borne out of the ‘dia-

deliver on these promises on top of

logue tables’,” explains McCulley. In

taxes and royalties. “That’s why one

2018, the Regional Entrepreneurship

of the three global pillars of our

Support Council was created, with the

Sustainable Mining Plan (which

participation of 12 public and private

together with step-change innovation

bodies, aimed at strengthening the

in technology, digitalisation and sus-

Business Development Programs

tainability make up our FutureSmart

implemented by Anglo, which have

FEBRUARY 2020

39

provided training for more than 1,000

innovations that will transform the

companies.

nature of mining — how we source,

McCulley pledges that training will

mine, process, move and market our

enable the company to support its pur-

products — and how our stakehold-

pose to “re-imagine mining to improve

ers experience our business. It’s

people’s lives” with FutureSmart

about transforming our physical and

Mining supporting technology, digitali-

societal footprint.”

sation and sustainability to work hand in hand.

Anglo is undertaking a feasibility study to assess the possibility of rolling out one of its FutureSmart technolo-

FUTURESMART MINING

gies, Coarse Particle Recovery (CPR),

“FutureSmart Mining is our innovation-

at Quellaveco. “CPR crushes particles

led approach to sustainable mining,” he

to 2.5 times larger than normal, reduc-

explains. “These are the step-change

ing energy consumption and mill time, w w w.mi ni nggl o b a l. com

LEADERSHIP

leading to a 20% increase in throughput and 85% water recovery - a key issue in Peru given the concerns around water scarcity,” says McCulley.

“By allowing water to release from the much coarser particles, CPR will reduce the risks associated with wet tailings and ultimately help eliminate them altogether. When combined with low cost additives, it is possible to dewater residual waste and produce dry stackable tailings. This technology remains a focus area for us as water sent to 40

tailings facilities often represents the largest water loss at a mine.”

Quellaveco is going to be the first mine to run the FutureSmart operating model from day one. Anglo’s idea is to build a stable base on which it can layer new technologies, CPR being one of them. “We will also be a fully digital mine, which brings us future benefits in terms of understanding and applying changes in real time,” adds McCulley. “Our trucks and our drills will be automation-ready.

We have taken the approach that, when we decide to move into an autonomous operation, no jobs will be lost, but the nature of some people’s jobs will have to change.”

FEBRUARY 2020

DID YOU KNOW

Quellaveco: facts & figures Quellaveco is one of the world’s largest undeveloped copper deposits. Located in the Moquegua region of Peru, it offers a superb opportunity for Anglo American to add another world-class mining operation to its portfolio. Boasting ore reserves of 1.3 billion tonnes at an average grade of 0.57 TCU, Anglo forecasts a throughput rate of 127,500 tonnes per day while producing 300,000 tonnes of copper equivalent per year in the first 10 years of operation. The projected recovery of 7.5 million tonnes of copper would provide enough copper for 90 million electric vehicles and enough copper to wire 80 million homes.

Quellaveco will support 2,500 jobs during normal operation across a projected 30-year mine life. With strong social support and all key permits in place, Anglo forecast a 20% return on capital employed with an above 50% EBITDA margin.

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41

LEADERSHIP

COPPER

and roof sheets benefit from copper’s

Copper is a key ingredient in the fast-

resistance to corrosion. Copper’s ther-

growing renewable energy and electric

mal conductivity makes it good for air

vehicle markets. “Copper has been

conditioning and refrigeration. It’s also

used for more than 10,000 years by

commonly used in hospitals, owing to

human beings and has a vital role in

its antibacterial qualities. And its visual

decarbonisation and improving living

qualities account for many other uses

standards,” McCulley says. “Common uses for copper are all around us.

42

— in buildings and everyday objects.”

Global copper demand is forecast

Around 60% of total global demand

to increase from 23.6 million tonnes

is for electrics — wire, cables and

in 2018 to 29.8 million tonnes by 2027

connectors, including in vehicles and

(at 2.6% annual growth) but the

consumer electronics — while 20%

market is expected to experience per-

is used in construction: water pipes

sistent undersupply. Mcculley shares

E XECU T I VE PRO FI LE

Tom McCulley Before moving to the Quellaveco project McCulley was Anglo American’s Group Head of Projects, which enabled him to work with the Board, GMC, across all the group functions and with Anglo’s EPCM partner, Fluor. “I’ve been fortunate to have worked on several projects of this scale in different parts of the world and, while each project is unique, there is one requirement that is consistent across all projects of this scale — the fact that it takes a team, not one individual, to build a project of this size, scale and complexity,” says McCulley, who also held various roles at Newmont Mining across 15 years. “Building these relationships, both internally and externally, enables me to identify the support needed to deliver Quellaveco successfully as a truly integrated team.”

FEBRUARY 2020

his predictions for the market over the

exploration - as the deposit is open at

next decade and elaborates on how

depth and in all directions. It contains

Quellaveco will aid Anglo’s response.

approximately 7.5 million tonnes of

“World copper use per person is

copper in ore reserves — enough to

expected to increase from 3kg to 4kg

wire 80 million homes or equip 90

by the 2030s at a rate of 2.5% per

million electric vehicles. It will be one

annum,” he notes. “If demand grows

of the world’s most important copper

as forecast, we would require the

mines, and a major source of supply

equivalent of more than 20 new

for an increasingly industrialised world.”

mines of Collahuasi’s size by 2030.

“Quellaveco has a confirmed mine

2020 VISION

life of 30 years and, based on other

The next set of milestones at Quellaveco

mines in the area, we would hope to

include, structural steel installation,

see this expand in the future through

completion of the tailings starter dam,

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43

LEADERSHIP

“ QUELLAVECO, HAS A CONFIRMED MINE LIFE OF 30 YEARS AND, BASED ON OTHER MINES IN THE AREA, WE WOULD HOPE TO SEE THIS EXPAND IN THE FUTURE THROUGH EXPLORATION — AS THE DEPOSIT IS OPEN AT DEPTH AND IN ALL DIRECTIONS” — Tom McCulley, CEO Anglo American Peru & Group Head of Projects

tunnel excavations for overland conveyors, the start of pre-stripping and continuing to progress the process plant construction. “Throughout 2020 we will remain focused on reaching these milestones and working with our host communities to ensure we continue to develop positive and mutually

44

beneficial long-term relationships,” says McCulley. “To date, we have provided training to over 1,200 people, employed approximately 6,000 local people at the project and we are now one of the top 10 employers in Peru and number one in Moquegua.”

With regards to those trends that McCulley is seeing across the copper mining sector, he states: “We are continuing to see grades declining and some offset from ‘possible’ projects, as greenfield project approvals fall away,” he highlights. “When you combine this with longer term potential from the low carbon economy, including FEBRUARY 2020

45

global copper demand in vehicles

provides structure, stability and predict-

increasing significantly, we expect to

ability in the way that we plan, do and

see a tightly balanced market and a

revise our core processes.

supply gap in the medium and long term.

“Through a strengthening of our portfo-

“Our uniquely positioned copper

lio, with the approval of the Quellaveco

business is perfectly placed to service

project and organic growth from both

the forecast supply/demand gap in the

Quellavec, combined with optionality

market — we have transformed the

at Los Bronces and Collahuasi, we

business through our operating model,

believe we are well placed to resource

and P101, improving the performance

the future.”

of our most value-driving mining and other processes to industry best-in-class benchmarks, then pushing the capability boundary further. Our operating model w w w.mi ni nggl o b a l. com

S U S TA I N A B I L I T Y & C S R

OCEANAGOLD: INNOVATION, 46

OceanaGold is building a positive legacy every day with a sustainability philosophy, delivering value throughout and beyond the life of its mines WRITTEN BY

FEBRUARY 2020

DAN BRIGHTMORE

PERFORMANCE AND GROWTH 47

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S U S TA I N A B I L I T Y & C S R

O

ceanaGold has been a public company since 2004 and is listed on the ASX (Australian Securities Exchange).

Its genesis lies in the establishment of the Macraes mine in the South Island of New

Zealand back in 1989. Since then, the company has built three further mines in New Zealand alongside operations in the Philippines and the US. “We’ve also purchased the Waihi mine in New Zealand’s North Island,” adds President and CEO Mick Wilkes.

“Today, we operate four mines. Two in New 48

Zealand (Macraes and Waihi), one in the Philippines (Didipio on Luzon Island), and one in South Carolina (the Haile gold mine).

I joined the company in 2011 to build out that project in the Philippines as the CEO and lead the company to the next level, which we did in 2015 when we acquired the Haile asset.”

SUSTAINABILITY OceanaGold does a lot of work with the communities in the Philippines, as Wilkes explains.

“We’re creating business development opportunities, protecting the environment, creating employment and supporting education; we’re also maturing infrastructure with the construction of roads, schools and hospitals.” OceanaGold has built over 100km FEBRUARY 2020

49

of roads to remote agricultural areas allowing farmers to more easily get their produce to wider markets and make their enterprises more viable.

He adds that the company is spending around $7mn each year on community projects to further support scholarships and medical services. “We have a very close relationship with the community of Didipio which we’ve been building strongly since we started operations in 2013.” w w w.mi ni nggl o b a l. com

S U S TA I N A B I L I T Y & C S R

“ WE’RE CREATING BUSINESS DEVELOPMENT OPPORTUNITIES, PROTECTING THE ENVIRONMENT, CREATING EMPLOYMENT AND SUPPORTING EDUCATION; WE’RE ALSO MATURING INFRASTRUCTURE WITH THE CONSTRUCTION OF ROADS, SCHOOLS AND HOSPITALS” — Mick Wilkes, President & CEO, OceanaGold

Wilkes highlights a big push coming from the investment community on environment sustainability and governance (ESG). “That’s good to see. It’s

50 Building opportunities beyond the

something that the industry has been

mine, and creating industries which

doing widely over a number of years,

are sustainable beyond the life of the

but the requirement by investors for

mine, is key for OceanaGold. “One of

higher standards of environmental

the companies that’s been created is

management and social governance

called Dicorp (short for Didipio

is good because it raises the bar and

Corporation), which is owned by the

makes us aim higher.”

long-term residents of the local village Didipio, and currently employs nearly

A TECHNOLOGY TRANSFORMATION

400 people,” reveals Wilkes. “It’s the

The Didipio mine is leading

second largest taxpayer in the prov-

OceanaGold’s transformation.

ince, has contracts in catering and

According to the company’s recent

camp management through to road

sustainability report, the mine aims

maintenance and busing services,

to be “a model modern operation

and is looking to spread its business

delivering greater safety, higher effi-

to other parts of the province.”

ciencies and increased productivity”.

FEBRUARY 2020

CLICK TO WATCH : ‘DIDIPIO DELIVERING HOPE THROUGH QUALITY EDUCATION’ 51 To drive this transformation, its

The seeds for this transformation

alliances with Sandvik, for their

were sown back in 2014 when Wilkes

expertise in mine automation sys-

asked CIO Chris Cawood to champion

tems, and MST Global, for their

innovation across the business. “We

experience in the data communica-

didn’t know this would lead to opera-

tions systems required to support

tional technology, which is what IT

productivity and safety processes

information technology has morphed

in underground mines, are vital. The

into,” explains Wilkes. “Since then,

Didipio Underground Transformation

we’ve focused a lot on underground

Project launched in 2018 following

mining technology, with the view to

an OceanaGold collaborative auto-

increasing productivity through auto-

mation and digital workshop involving

mation. More importantly, it’s taking

Sandvik and MST which enabled

people away from the coalface, so to

the deployment of a focused team

speak, and into other roles to improve

for transformation implementation.

safety outcomes.” w w w.mi ni nggl o b a l. com

S U S TA I N A B I L I T Y & C S R

DID YOU KNOW?

Adapting to drive sustainability

52

Digital transformation presents an industry-wide opportunity to enhance performance and reduce environmental impact.

OceanaGold is getting on board with this new way of operating through its automation, digital and process transformation (ADAPT) program. ADAPT was conceived to change how the company will plan, operate, assess, manage and evolve its operations - helping it to develop modern mines which integrate people and digital processes. ADAPT comprises four key elements: 1. Analytics: turning data into information to improve decision-making 2. Digital: hardware and software that generates, stores, processes and transmits data 3. Automation: digital control of equipment and processes 4. Processes: systems used to extract ore from the ground

FEBRUARY 2020

“ FINDING THE RIGHT INNOVATION PATH WITH THE BEST PARTNERS LIKE SANDVIK, MST GLOBAL AND OUTOTECH (WHICH IS DEVELOPING NEW PROCESSING TECHNOLOGY) IS CRUCIAL BECAUSE WE’VE GOT MINES TO BUILD AND THEY’VE GOT THE TECHNOLOGY TO HELP US ACHIEVE THIS” — Mick Wilkes, President & CEO, OceanaGold

53

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S U S TA I N A B I L I T Y & C S R

The automation of underground equipment also allows OceanaGold

Sandvik, MST Global and Outotech

to operate 24/7. “We don’t have to

(which is developing new processing

shut down for shift changes or lunch

technology) is crucial because we’ve

breaks,” adds Wilkes. “We’re on that

got mines to build and they’ve got

journey now and partnering with

the technology to help us achieve this.”

Sandvik to continue that process.

54

path with the best partners like

Hiring people with the skills to mine

They’re helping us embrace the tech-

differently by harnessing the best

nology so we can be operating at

solutions modern technology can offer

the leading edge of that in the future.

is a big part of the strategy for Wilkes

There’s a lot of cheaper mining equip-

and his team. “We’re not looking for

ment now being produced in countries

miners per se, we’re looking for tech-

like India and China, but that doesn’t

nicians of the future,” he says. “We’ve

have the technical capability we’re

already had great experiences with

looking for. Finding the right innovation

this approach at Didipio where we’re

“MINING IS A TRANSITION INDUSTRY FOR DEVELOPMENT AND KICKSTARTS THE TRANSFORMATION OF THE ECONOMY AND SOCIETY IN WAYS THAT ALL AREAS CAN BENEFIT FROM. WE’RE STICKING TO THAT VISION AND DOING THE JOB PROPERLY FOR THE LONG RUN” — Mick Wilkes, President & CEO, OceanaGold FEBRUARY 2020

leveraging data and using program-

complete electrification of modern

ming to create systems to operate

mining equipment now an achievable

machinery automatically.”

target thanks to advances with battery technology, Wilkes believes it’s

SAFETY FIRST

becoming more realistic to replace

Wilkes’ vision is that by 2050 there

diesel engines in an underground

won’t be anyone working under-

environment, which reduces expo-

ground at an OceanaGold operation.

sure to particulates and the associated

“It’s driven by a need for better safety

health risks from carbon emissions.

in the industry, and it’s also made

“For example, at one of our mines

possible by the advances in technol-

in New Zealand that we are looking

ogy over the past 10 years. An

to build in the next five years, we’re

example of that is wifi, which didn’t

starting to think about how we design

exist 20 years ago and now it’s ubiq-

it to be a zero-carbon operation,”

uitous in our businesses.” With the

he says.

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55

S U S TA I N A B I L I T Y & C S R

THEY SAID IT COULDN’T BE DONE… “Back in 2010 they said it was the mine that couldn’t be built,” says Wilkes, remembering the company’s efforts to deliver the Didipio mine. “It had been around for 20 years and had gone through issues with permitting, development and exploration. We decided to set about doing it from first principles, engaging with communities, and using experience from building other mines in countries in Asia, to do it the right way. We’ve built a mine with a fan56

tastic culture. It’s a real icon of the way a mine should be built and run. It’s very efficient and 98% run by local employees, with just a handful of expatriates there. I’m proud to say, we did it!”

Building on its success in the Philippines, OceanaGold also aims to continue the ramp up of the Haile mine in South Carolina, built in 2016

productivity. “It’s a very prospective

and commissioned in 2017. “We’re still

area, lots of gold, and plenty of poten-

expanding the mine,” reveals Wilkes.

tial to create value: that’s a big focus

“The process plant has been going well

this year,” affirms Wilkes.

and we intend to start an underground

Wilkes began his career in the indus-

development next year.” The company

try as a mining engineer, working

is also extending mine life through

around the world in Australia, Papua

another development at Waihi, which

New Guinea and the UK, and brings

will add up to 15 years of further

a wealth of operational expertise to

FEBRUARY 2020

57

his role at OceanaGold which has

transformation of the economy and

given him the opportunity to use both

society in ways that all areas can

his technical and social skills. “I’ve

benefit from. We’re sticking to that

learned a few tricks along the way,”

vision and doing the job properly for

he says. “I think it’s important to make

the long run.”

sure people know where we’re going as a company with a clear vision.

Mining is a transition industry for development and kickstarts the w w w.mi ni nggl o b a l. com

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TRANSFORMING SAFETY AND EFFICIENCY IN MINING WRITTEN WRITTENBY BY

WILLIAM WILLIAM SMITH SMITH PRODUCED PRODUCEDBY BY

RICHARD RICHARD DEANE DEANE

FEBRUARY 2020

59

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MST GLOBAL

Haydn Roberts, CEO of mining technology company MST Global, reveals the integrated, platform approach futureproofing mines worldwide

M

ining technology firm MST Global can trace its origins back some 30 years to an urgent need for improved commu-

nications in a mining setting. Inspired by a tragic mining disaster at Moura colliery, the company was involved in pioneering a form of through-the-earth 60

communication known as PED. “It provided the ability to communicate through the rock and send a one way message to trapped miners,” says CEO Haydn Roberts. “From there the company started out of Sydney and grew into offering other types of technologies and solutions, all focused around underground coal and hard rock mining linked to voice or data communications and the tracking of people. We’ve really built a whole digital ecosystem around that initial offering.”

When he joined four years ago, Roberts brought years of experience in the mining industry, as well as a passion for technology. “When I was very young, around 1980, I got my first computer – a Sinclair ZX80. I had a passion for computing and technology from a very early age, and right when the worldwide web was taking off I moved FEBRUARY 2020

Below: Corey Nesbit Systems Engineer and Nick Miller Senior Solutions Architect, Underground in a mine

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61

MST GLOBAL

“ Technology is going to change over time, and whatever we put into the underground space has to be upgradeable” 62

— Haydn Roberts, CEO, MST Global

to the US and worked for a surface mining company in California. I got quite involved in the technology side of mining at this particular open-pit surface mine with things like fleet dispatch, GPS and mine planning.”

Roberts’ career has seen him involved in a number of technological advances in the mining industry, including the introduction of autonomous trucks back in the mid-90s.

Digital transformation has perhaps an even more critical aspect in an industry such as mining, with lives potentially on the line in the harsh environment of an underground mine.

“Communication’s very difficult, you can’t see each other that easily, you’re working in different parts of the mine and so forth,” emphasises Roberts.

“So by definition you’re a very distributed workforce in a very risky environment.”

Gone are the days, however, when miners had to rely on canaries for safety. “Digitalisation lets you build a digital ecosystem where everything is connected. You have the ability

1989 Denis Kent with MST founder Gary Zamel and Voest Alpine founder Chris McGuinn Newstan Coal Mine FEBRUARY 2020

to track people and equipment, you have the ability to put in sensors that can detect methane and different

CLICK TO WATCH : ‘MST GLOBAL: AXON PRODUCT LAUNCH VIDEO’ 63 poisonous gases, you have the ability

time, and whatever we put into the

to detect movement of the rock. All of

underground space has to be upgrade-

this can be converted into data in real

able. That’s a key differentiator versus

time and acted upon.”

other vendors out there.” The company

This sense of integration character-

is able to combine solutions thanks

ises MST’s approach to its offerings.

in part to its vertically integrated

“We’re technology agnostic in terms

model. “We do our own manufacturing,

of wireless technologies and tracking,”

design, development of software and

Roberts emphasises. “We don’t just

hardware, and then direct selling and

bat for LTE or wifi. We realise that, in

support. That’s a very important part

an underground situation, you’re going

of it all, the service that goes around

to be using Bluetooth, you’re going

deploying it and supporting it. We’re

to use LoRa, you’re going to use wifi

very much focused on that.”

for certain things and LTE for others.

Technology is going to change over

Another differentiator is the company’s AXON platform. “We’ve just launched w w w.mi ni nggl o b a l. com

MST GLOBAL

our latest smart infrastructure or smart network platform,” says Roberts.

“We realised that our older platform, Impact, wasn’t as easy to upgrade when new technologies came along.

With AXON, we knew we had to take a different view on that. We designed it so that it could be in a mine for 10, 15, or 20 years, but have the ability to be upgradeable as different technologies come along.” With an eye on upgrades comes an openness to integrating emerging technologies into the 64

platform. “We work with Microsoft quite closely and we designed AXON to use elements of Microsoft Azure.

Within Azure there’s things like voice

also need the ability to be tracked,

and video recognition. For instance,

just like people. Using wearables you

we plan to pick up certain phrases that

can track where people are in a mine,

the Azure module will allow us then

and then, for instance, if they go into a

to act on and turn on a fan or send a

certain area, secondary fans will turn

request for a piece of equipment to

on to make sure that those areas are

go down to a certain end.”

ventilated. The automation of fixed

Automation has a part to play across

assets underground is something that

the full spectrum of technologies

excites us – it’s a more sustainable

deployed in mines. “Automated vehicles

and safer way of mining.”

need real-time communications, so

Considering his experience in the

they need a platform like AXON that

mining industry, Roberts views the

can connect high bandwidth wirelessly

community as a family, a stance

to those vehicles,” says Roberts. “They

MST extends to the work it does with

FEBRUARY 2020

partners. “With all of our customers, we take a long-term partnership view,” he says. “There’s probably 30 mining companies in the world that mine 80% of the minerals. The truth is that it’s a very small industry when you compare it to something like automotive. We do business with about 300 mines. Every one of those needs to be a special relationship and a partnership.” MST Global’s work with gold-mining firm OceanaGold is one such example.

“From the very get-go we sat down and worked out how we could share

E XE CU T I VE PRO FI LE

Haydn Roberts Haydn is the CEO of MST Global. Haydn commenced his career in underground gold mines in South Africa before joining Rio Tinto, with roles in manufacturing, smelting and mining in the UK and USA. He has held senior leadership roles with Groundprobe and Komatsu Modular Mining Systems based in the US and Australia. Prior to MST Global, Haydn was the CEO of Leica Mining and COO of Hexagon Mining. He has extensive experience in executive management, mining technology and best practice. Haydn has a Mining Engineering degree from Cardiff University, Wales and a Master’s Degree in Systems Management from the University of Southern California.

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65

MST GLOBAL

66

“ It’s incumbent upon all of us to accept the reality of global warming and to do something about it” — Haydn Roberts, CEO, MST Global FEBRUARY 2020

A tunnel project to access a gold ore body at a new gold mine in Australia

our roadmap with theirs and identify the common alignment. We had workshops where they listened to what we felt about the strategic vision for the technology in this space, and then we started to deploy solutions at their various mines. They’ve been a great partner.”

As for the future, Roberts is clear that one challenge facing MST and the wider industry above all others is sustainability. “It’s incumbent upon all of us to accept the reality of global warming and to do something about it. What I seek for MST is to ask: ‘how do we address sustainability?’ How do we bring youth into the discussion and get their feedback on how we can improve the business? To me, that’s probably the most important external factor that we have to address in a meaningful way.”

While there’s a long way to go, MST is on the path and encourages fellow industry members to do the same. “It’s a journey of a thousand steps, but you’ve got to make that first one.”

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67

TECHNOLOGY

68

CONQUERING DISTANCES AND ENVIRONMENTS

HUBER+SUHNER’s Market Unit Manager for Industry, Dr Thomas Paul, explains why plug and play could be the answer to the future of mining communications WRITTEN BY

THOM AS PAUL

FEBRUARY 2020

69

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TECHNOLOGY

T

he need for new, innovative technologies in the mining industry is becoming more pressing. As easily accessible reserves

decline, mining companies are forced to go deeper underground and to improve recovery yields while keeping costs under control. In addition, more stringent regulations on worker safety from authorities, the public and shareholders, incentivise miners to drive their operations to higher degrees of automation.

As a consequence, the demand for flexible and high-bandwidth communication in mines is soaring, because data links are the backbone of automated 70

operations and serve as safety critical infrastructure. Information from sensors, CCTV, data-heavy automation solutions and voice communication needs to be broadcast across long distances and through difficult environments. The link between the surface and operations underground is the umbilical for safe and efficient mining operations.

Fiber optic networks are key to enabling the level of bandwidth required by mining corporations, providing a bridge between control systems, devices and data processing units. Fiber optic technologies also bring additional benefits such as immunity to electromagnetic fields, galvanic insulation and the advantages of future-proofed bandwidth extension.

The harsh environment of mining operations, however, can pose a risk to the physical integrity of these networks. This creates a need for high-performing FEBRUARY 2020

“ The demand for flexible and high-bandwidth communication in mines is soaring since data links are the backbone of automated operations and serve as safety critical infrastructure” — Dr Thomas Paul, Market Unit Manager for Industry, HUBER+SUHNER 71

solutions when it comes to installing, modifying and maintaining underground communication links.

The operation of mines increasingly relies on the ability to have a continuously accessible network for communications between workers, sensors and machines. It is mission critical, therefore, to have a quick fix when things go wrong and a mine’s fiber optic network becomes damaged.

Network failure and outages prove a headache for mining companies as it implies a loss of essential communicaw w w.mi ni nggl o b a l. com

TECHNOLOGY

“ The experience of HUBER+SUHNER in providing essential solutions for communication in challenging conditions has been leveraged alongside Ampcontrol’s renowned expertise in integrated electronic equipment and power solutions for mines to create H3RO — Harsh Environment Reticulated Optics” — Dr Thomas Paul, Market Unit Manager for Industry, HUBER+SUHNER

mised temporarily, significant financial damage is incurred.

The need to be able to repair the network quickly is a serious challenge faced

72

tions — leading to major safety risks.

by mines throughout the sector. Solving

Under such circumstances, operations

issues underground is time consuming:

in the affected underground areas must

the availability of qualified fiber optic

be stopped and personnel removed.

engineers with the necessary tools is

Next to safety being potentially compro-

low and expensive. Despite best efforts,

E X E C U T I V E P R OF IL E

Thomas Paul r Thomas Paul brings the fusion of business thinking and D scientific curiosity to functions where continuous transformation and novelty are essential. With over ten years in the manufacturing industry, he builds adeptness in steering complex innovation and business development programs, from idea generation to commercial success. Accomplished in establishing cross-functional stakeholder relationships and in leading diverse teams, he is passionate about effectuating bold moves in technology and business innovation. Prior to his role at HUBER+SUHNER, which he took up in October 2018, Dr Paul was a Group Leader for Sensor Technologies at ABB and a Project Manager at Zeiss Group.

FEBRUARY 2020

CLICK TO WATCH : ‘SOLUTIONS FOR SMART CONNECTED FACTORIES, ENERGY INFRASTRUCTURE AND OIL&GAS APPLICATIONS’

damage to fiber optic networks cannot

munication in challenging conditions has

always be avoided - but operators can

been leveraged alongside Ampcontrol’s

reduce the amount of downtime needed

renowned expertise in integrated elec-

on a network and get back to normal

tronic equipment and power solutions for

much more quickly.

mines to create H3RO — Harsh Environ-

Such capability stems from a new

ment Reticulated Optics. This provides

breakthrough from HUBER+SUHNER

a toolbox-like fix via standardised com-

and Ampcontrol. The two have com-

ponents, allowing fiber optic networks

bined their expertise to create a speedy

to be deployed quickly.

and innovative solution, H3RO, to ensure

H3RO is a pre-terminated modu-

fiber optic networks in mines can be rap-

lar fibre optic system which removes

idly installed, maintained and repaired.

the requirement for specialised

The experience of HUBER+SUHNER

labour and simplifies installation with

in providing essential solutions for com-

plug and play modular elements that w w w.mi ni nggl o b a l. com

73

TECHNOLOGY

supports standardisation, allowing reductions in cost, a simplified rollout, consolidation of spares and consistent high-quality system expansion within difficult environments.

It combines telco grade low loss connectors with fit-for-purpose industrial breakout terminals (BOTs), glands and cable armour to allow for a reliable and robust industrial solution. The BOTs replace the need for large enclosures and minimise common failure points such as needless patching and 74

unnecessary connector exposure to harsh elements. Supporting traditional Ethernet, as well as passive optical network (PON) models, the single-mode fiber optic system removes the need for timely fiber optic terminations in

cians and offers a simple to use and

the field and allows the introduction of

robust solution in case of mishandling.

a standardised and future-proof fiber

It has already been used by several

optic infrastructure.

The separate components of H3RO

mining customers, including a gold and copper mine in Western New South

make it flexible in design, ensuring it

Wales (Australia), which switched to the

is suitable for enabling easy modifica-

H3RO system after an existing com-

tion and expansion of networks when

munications cable was severed. It was

a mine’s structure changes as it gets

deployed from an existing fiber optic

deeper or larger in size. It is also handy

break out terminal (FOBOT) panel, ran

for mine workers who are not skilled

along 1km of the mine’s roof, down

communications technology techni-

several vertical drops and into another

FEBRUARY 2020

result of the low loss connectors, network expansion and recovery for similar incidents in the future is now hassle free.

The whole cable consists of four 260m, 12-core H3RO cables, adding to its functionality of being able to swap out any section without necessarily having to replace the complete run, or the need for fiber field splicing, where constraints such as time, darkness and low-cleanliness all affect the quality of the job.

There are many options for mining operators to consider when selecting fiber optic systems for their communications networks, but as the mining industry is progressively being squeezed for higher capital and operational efficiency, operators need to take advantage of FOBOT enclosure. The modular

systems that are simple, risk free, cost

design of the product and its plug

effective and that will help them to do

and play features made it the perfect

their jobs more effectively.

choice for enabling the fast installation of cabling, allowing their network

H3RO will be exhibited by

to get back up and running quickly.

HUBER+SUHNER at Expomin 2020,

The IP68 connectors and bulkheads

held in Santiago, Chile in April 2020.

meant it was relatively easy to be deployed and also allowed it to integrate seamlessly with the off-theshelf IP68 bulkheads and pigtails to match the existing panels. As a w w w.mi ni nggl o b a l. com

75

T O P 10

76

FEBRUARY 2020

Uses of Copper

77

From ancient Egypt to electric vehicles, Mining Global counts down copper’s major uses

WRITTEN BY

DAN BRIGHTMORE

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T O P 10

78

10

Medicine

Ancient Egyptians used copper to disinfect wounds and surgical tools.

Fast forward to 2013 and Dr. Bill Keevil at the University of Southampton found that norovirus (a highly infectious sickness bug) and viral pathogens such as MRSA cannot survive on copper surfaces, while they are able to on the platinum metals often used in hospital building railings, doorknobs, and beds. Following his research, hospitals are increasingly installing copper touch surfaces around the world to halt the spread of bacterial infections in medical settings.

FEBRUARY 2020

09

Transport

Key components of boats, planes, trains and automobiles are all dependent on the electrical and thermal properties of copper.

High-speed trains can use up to 10MT of copper per kilometre of track while powerful locomotives contain as much as 8MT of the base metal. A modern airliner includes around 118 miles (190km) of copper wiring which accounts for 2% of its weight. In cars, copper and brass radiators and oil cooling systems have been the industry standard since the 1970s. In recent years, the growing use of electronic components, including the trend for onboard navigation systems and anti-lock braking, has further ramped up demand from the automotive sector.

79

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T O P 10

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08

Telecommunications

Telecommunications systems are built on copper. Twisted copper wires are used in ADSL and HDSL wiring for local area network (LAN) internet lines. Unshielded twisted pair (UTP) lines contain eight colour-coded conductors, which are constructed of four pairs of thin copper wires. Despite the current increase in wireless technology, modems, routers and other interface devices remain dependent on copper.

FEBRUARY 2020

81

07

Jewellery

Copper is an easily moulded base metal that is often added to precious metals to improve their elasticity, flexibility, hardness, colour, and resistance to corrosion. Gold is one of the most common alloyed metals with copper. Most jewellery stores carry 18C palladium white gold, 18C rose gold, 18C pink gold, 18C light green gold and 18C yellow gold (the most commonly used gold alloy in jewellery-making). Sterling silver is also a copper alloy used to make utensils, tableware, and jewellery. It’s a harder alloy than gold, making it an obvious choice for items such as rings and bracelets, while much sterling silver jewellery is also nonirritating thanks to copper’s hypoallergenic properties.

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06

Electrical Wiring

Copper is still the most effective conductor of electricity. Combined with its malleability, resistance to corrosion and ability to endure tensile stress, copper is the ideal metal for electrical wiring. Busbars, conductors that distribute power, transformers and motor windings are all dependent upon copper’s conductivity, which can be up to 99.75% efficient. Electrical applications ranging from computers and televisions to mobile phones and portable devices have become major consumers of the copper needed for microchips, circuit boards, electrical connectors, semiconductors, electromagnets, heat sinks and more.

FEBRUARY 2020

05

Battery Technologies

Metal foils and copper chemicals are incorporated into both lithiumion and the nickel-metal hydride batteries that power fuel-efficient vehicles and will support the move towards mass e-mobility. The batteries used in electric vehicles are now a proven technology that can last for many years, guaranteed by their manufacturers. For example, Nissan says that its electric car batteries will last eight years or 100,000 miles, and Tesla offers a similar guarantee.

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T O P 10

84

04

Construction

Beyond its traditional use in fixtures like doorknobs and roofing for church domes and spires, copper is now the standard material for portable water and heating systems in many developed countries. This is thanks to copper’s bacteriostatic properties, allowing the ability to inhibit the growth of bacterial and viral organisms in water. Copper’s malleability and solderability, allied to its resistance to extreme heat and corrosion, makes it ideal for use in saltwater and industrial environments where it is a key component in everything from irrigation sprinkler systems and cement pumps to gas distribution and heat exchanger tubes in chemical plants and steam power stations.

FEBRUARY 2020

85

03

Solar Panels

Copper is a highly efficient conductor of electricity and heat used in renewable energy systems to generate power from solar, hydro, thermal and wind energy across the world. Renewable energy sources provide nearly one quarter of the world’s power and copper plays an important role in making it as efficient as possible with minimal impact on the environment. Copper forms part of the materials currently used for photovoltaic solar cells, present in the technology’s cabling, earthing, inverter, transformers and photovoltaic cell ribbons.

A photovoltaic solar power plant contains approximately 5.5 tons of copper per megawatt of power generation.

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T O P 10

CLICK TO WATCH : ‘COPPER FOR WIND ENERGY’ 86

FEBRUARY 2020

02

Wind Turbines Heightened demand for copper will come from wind turbine manufacturers where it is used in power, control and instrument cables, the generator, cooling and heating systems, the transformer and grounding systems. The average copper content per installed wind turbine is 2.5-6.4 tonnes per megawatt. Global’s expanding fleet is expected to consume more than 5.5mn tonnes of the metal by 2028 with renewable energy sources now supplying America’s grid with 18% of its electricity.

One wind farm can require between four and 15mn pounds of copper.

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T O P 10

01

Electric Vehicles The growing trend for hybrid and electric vehicles (EVs) will further increase global copper consumption. The average combustion engine vehicle requires 20kg of copper, a hybrid 40kg, and a plug-in

88

EV (which can include up to a mile of copper wiring in its stator windings) 109kg. Much simpler than a combustion engine, the copper coil in an EV’s drive motor converts electrical energy into mechanical energy, with an electric motor only having three moving parts (stator, coil and core). The cars of the future could require as much as 163kg of the metal, with EV sales expected to rise from 2 mn units in 2018 to 21mn units by 2030.

FEBRUARY 2020

CLICK TO WATCH : ‘THINK COPPER.’ 89

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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY DAN BRIGHTMORE from around the world

3–6 FEBRUARY 2020

90

Investment in African Mining Indaba [ CAPE TOWN, SOUTH AFRICA ] Investing in African Mining Indaba

President, Elaine Dorward-King. Mining

celebrated 25 years of championing

2050 will also provide a platform to

Africa’s mining industry in 2019. Aiming

analyse operational optimisation, green

for its biggest event yet, the 2020

and sustainable technologies, a startup

edition will unite 750 investors, mining

spotlight, IIoT and digital transforma-

companies, governments and industry

tion, among other hot topics. Anglo

stakeholders with the shared goal of

America Chief Executive Mark Cutifani,

advancing mining on the continent.

Barrick CEO Mark Bristow, Hon.

Highlights include Sustainable Develop-

Gwede Mantashe, Minister of Mineral

ment Day, the Investment Battlefield for

Resources, South Africa and Kimberly

emerging projects and a focus on diver-

A. Reed, President, EXIM Bank, will

sity with Women in Mining featuring

be among the featured speakers

the likes of Newmont’s Executive Vice

delivering insightful keynotes.

FEBRUARY 2020

17–19 FEBRUARY 2020

Coaltrans India 2020

91

[ GOA, INDIA ] India’s largest coal event will bring

confirmed speakers delivering industry

together 700 major players and deci-

insights will include: HS Bajwa, Direc-

sion makers from across the nation

tor of Traffic, Ministry of Railways,

and the globe for three days of net-

Government of India; Sarah Liu, Vice

working, knowledge-sharing and

President, Fenwei Energy Information

deal-making. Preconference round

Services and Pradip Sil, Head of Pro-

tables will cover key topics including

curement, Tata Power. Keynotes will

the Chinese market, India’s recession

address the impact of 2020 iron ore

and the focus on renewables to meet

lease expirations on the Indian market,

net-zero goals. The big debate hosted

Indonesia’s emergence, the rise in

by Rahul Bhandare of Knowledge

demand for petcoke, the trader’s per-

Infrastructure asks, ‘Is burning coal

spective on changing coal trade flows

in India’s best interest?’ Elsewhere,

and India’s future energy mix.

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EVENTS & A S S O C I AT I O N S

1–4 MAR 2020

92

23–24 MAR 2020

PDAC 2020

Future of Mining Australia

[ TORONTO, CANADA ]

[ SYDNEY, AUSTRALIA ]

Marking its 88th year, PDAC (The Pros-

The third edition of the Future of Mining

pectors & Developers Association of

Australia conference is organised in con-

Canada) proudly leads Canada’s mineral

junction with Australia’s Mining Monthly

exploration and development commu-

and gives a platform to over 400 mining

nity. Founded in 1932, and with more than

leaders, comprised of c-suites, heads

7,500 members worldwide, its mission

and managers of mining operations from

is to promote a globally responsible, and

enterprises around the globe, to debate

sustainable minerals industry. Pitched

and define the future of the industry in

as the world’s leading mining convention,

Australasia and beyond at the Knowl-

over 25,000 visitors from 135 countries

edge Exchange. The Insight Stage will

will descend on Toronto next spring to

showcase the latest technologies from

share ideas and learn about the new

leading companies like Caterpillar, Inmar-

technologies and processes presented

sat and Komatsu, while the Future of

by 1,100 exhibitors. The 2020 Mineral

Mining awards will recognise leaders in

Outlook keynote will be delivered by

Operational Excellence, Innovation and

Catherine Raw, Chief Operating Officer,

Environmental Stewardship. More than

North America at Barrick Gold Corpora-

80 speakers will deliver keynotes on eve-

tion, who will examine the impact of

rything that matters in mining today: from

mergers and acquisitions across the

exploration and development, leadership

gold sector. Practical seminars will offer

and sustainability, through to optimisa-

advice on building an investor toolkit and

tion and digital transformation. Among

sustainable mining approaches, while

those confirmed are Dr Ben Adair, CEO,

the annual awards gala will recognise

CRC Ore and Gerrard Baron, Chairman,

Canada’s industry innovators.

DeepGreen Metals.

FEBRUARY 2020

21–23 APR 2020

Mining World Russia 2020 [ MOSCOW, RUSSIA ] Mining World Russia is the most representative international exhibition of machines and equipment for the min-

13–14 MAY 2020

ing and processing industry in Russia.

Deep Sea Mining Summit

Last year’s edition welcomed nearly

[ LONDON, UK ]

6,000 visitors, along with 431 exhibi-

The 10th annual Deep Sea Mining

tors, from 29 countries. Organised by

Summit is aimed at solution providers,

Hyve, the event provides an efficient

upcoming deep sea miners, members of

business platform for communication

the scientific community, and investors

between manufacturers and suppli-

keen to learn more about opportunities

ers, experts in mining facilities and

within this emerging market. Attendees

refining plants, as well as wholesale

include leaders in deep sea exploration,

trading companies from across Rus-

metallurgical engineers, dredging com-

sia’s industry. With a focus on the

panies and international law of the sea

automation of technological processes,

advocates. Speakers will focus on: the

exhibitors include Datamine, Scant-

potential for growth for marine mining;

ech and Micromine. Heralded as the

achieving sustainable seabed mining;

‘Best Exhibition in Russia’ — 85% of

the latest methods for prospecting and

last year’s participants reported a

exploration; the current opportunities

great return on their investment — it

to harvest Seafloor Massive Sulphides

features seminars and keynotes on

and Manganese Nodules; technological

everything from IT and automation

advances and the challenges associated

to mineral deposit exploration tech-

with navigating the global regulatory

nologies and future trends.

framework to realise success.

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93

A VISION FOR SUSTAINABLE MINING THROUGH A DIFFERENT LENS WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RICHARD DEANE

94

FEBRUARY 2020

95

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NEW CENTURY RESOURCES

How New Century has delivered economic mine site rehabilitation to the Century deposit and maintained the social license to operate while building for future growth

T

he first mining lease in the region of Australia’s North West Queensland was issued way back in 1890. However, it was

not until 100 years later when Rio Tinto’s exploration arm completed the discovery of “big zinc” that 96

large scale mining become possible, hence they named it the Century deposit. This was sold on to Pasminco, which took the open cut zinc, lead and silver mine into production in 1997. While the pipeline and port facility could handle a million tonnes per annum of concentrates, a slow floating ore body meant that Pasminco was faced with metallurgical challenges to optimise production and maximise returns from the operation. The choices available were to increase available residence time through building additional floatation capacity or increase throughput at the sacrifice of recoveries. The latter was chosen due to the lower capital requirements and the large resource available.

This ultimately led to the substantial mineral resource in the tailings dam, and the opportunity for New Century.

FEBRUARY 2020

97

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NEW CENTURY RESOURCES

“We were able to convert the tailings dam at Century into what was at the time, and still is, the 14th largest known mined zinc reserve in the world — 77mn tonnes of tailings, containing 3% recoverable zinc with homogenous grade distribution” — Barry Harris, Chief Operating Officer, New Century Resources During initial operations, Century was one of the world’s largest base

98

metal mines, churning out an average 475,000tpa of zinc and 50,000tpa of lead in concentrate products over its history. Pasminco went into voluntary administration in 2001 due to numerous corporate issues and the Century asset transferred into a new entity Zinifex.

Zinifex did extremely well when the zinc price skyrocketed in 2006 before being part of a merger that created OZ Minerals which, in turn, was acquired

by MMG. The latter went on to run the Century mine site through until the exhaustion of the main ore body in 2016.

Explaining Century’s chequered past, New Century Resources’ Chief FEBRUARY 2020

CLICK TO WATCH : ‘NEW CENTURY ZINC | NEW CENTURY RESOURCES (ASX:NCZ)’ 99 Operating Officer Barry Harris says the

together we could maintain our collec-

company was drawn to the asset when

tive social license to operate.”

it came into care and maintenance.

By March 2017 New Century had

“Prior to this, our Managing Director

taken on the previous care and mainte-

Pat Walta had engaged with MMG over

nance allowances, and proceeded to

a number of years discussing a novel

get the project developed and opera-

approach, that being an economic

tions started through the remining

mine site rehabilitation strategy,” he

and subsequent reprocessing of the

says. “Partnering with New Century

tailings ore body, these activities are all

Resources (formerly Century Bull) was

part of the overall rehabilitation works

the best option for MMG to fulfil all of

and provide revenues to complete

their obligations with the rehabilita-

works required on the mine lease, while

tion of the mine, returning it to a state

generating returns for shareholders.

where it could be handed back to

With AUS$70mn already spent by on

the community, and making sure that

waste dump rehabilitation, MMG had w w w.mi ni nggl o b a l. com

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NEW CENTURY RESOURCES

102

developed a best in class waste dump

what had gone into the tailings since

cover system for semi-arid environ-

first ore. However, “The first step for

ments that New Century can apply

New Century when we took over was

to the remaining dumps.

to convert the tailings dam into an

MMG also carried out substantial

ore body,” recalls Harris. “We

proof of concept test work prior to the

needed to do that in order to

transaction, determining that a sale-

achieve a JORC — compliant

able zinc product could be produced

ore reserve.”

from the tailings, proving the viability of the project.

New Century was fortunate to have

“We drilled out the tailings, using a quarter of the core for assaying to get a clear

tailings sample results for the whole

picture of what the whole

life of mine, and so were able to deter-

ore body looked like, and

mine to a certain level of confidence

what the grade profile was

FEBRUARY 2020

throughout the entire layered deposi-

and still is, the 14th largest known

tion in the dam,” reveals Harris. “The

zinc deposit in the world — 77mn

other three quarters of that core were

tonnes of tailings, containing 3%

sent off and used to complete a large

recoverable zinc with a homogenous

pilot program; a test work plant was

grade distribution.”

ran to see how we could further opti-

Harris explains that, though hydro

mise the actual operations of the plant

mining is well established globally,

to extract as much zinc as possible.

it’s a method rarely used in Australia.

Between those two approaches, we

“We’re innovating with rehabilitation

were able to convert the tailings dam

of the mined land through the use of

at Century into what was at the time,

economic rehabilitation,” he explains.

E XE CU T I VE PRO FI LE

103

Barry Harris Barry Harris is a resource industry professional qualified in mining engineering, mineral economics and corporate compliance with experience in operational mine management, compliance, and the technical and financial aspects of the resources industry. Graduating from the University of Queensland with an honors degree in Mining Engineering, Barry has gone on to complete post graduate studies including a Master of Science (Mineral Economics), and the AICD’s and MIoD Company Directors courses. Barry’s experience within the mining industry includes varied roles in both coal and metalliferous mining, during which he gained First Class Mine Managers certification for all four of the Australian jurisdictions he worked in. With a focus on safely increasing mine physicals, improving standards, cost reduction, technical improvements and system optimisation, he is applying all this experience to his current role as the COO of New Century Resources assets, focused on leading the company in all facets of the restarting of operations; again establishing Century as a significant world zinc producer. w w w.mi ni nggl o b a l. com

NEW CENTURY RESOURCES

“By making rehabilitation a profitable enterprise through what we’re doing, we’re carving out a niche in the industry, we see this as the future for improved environmental outcomes in the mining industry.

We’re utilising the best methodology to leveraging the sunk capital and time spent on world class infrastructure, approvals and permitting as well as the very ore body itself to monetise the value left behind in the tailings dam. After remining we’re 104

reprocessing it, and then using subaqueous (below water) deposition to put it beneath the lake in the original pit shell. “Historically, aging mine sites have presented a long-term challenge in Australia and overseas jurisdictions. Our approach shows that mine sites no longer meeting the investment brief of top tier mining companies can still provide opportunity for more focused agile mining companies to come in and extend the economic life, while extracting a lot more value through the process of rehabilitation.”

The recommencement of economic activity at Century has involved FEBRUARY 2020

2017

Year founded

$300mn Revenue in australian dollars

350

Number of employees significant engagement with and cooperation from the local community surrounding Century’s operations.

“The traditional owners will continue to receive benefits associated with the Native Title agreement that would have otherwise ceased with the closure of Century by its previous owner,” explains Harris. “More widely the local governments will continue to receive premium benefit through rates, and other industries will gain through Century engaging with local businesses buying services and products from them.” w w w.mi ni nggl o b a l. com

105

NEW CENTURY RESOURCES

local communities in Doomadgee, Normanton and Mornington Island, which is assisting with sustainable community development goals identified by the community representatives themselves. “We took a different approach to how this was done previously,” explains Harris.

“Previous owners used to spend a lot of that money training up people to be truck drivers, grader operators and other mining specific skill sets on the actual mine lease.What we have done differently is engaged with the

106

local communities, and asked them what they actually want, which will mean more sustained benefit to the local communities, rather than just Meanwhile, through its port operations

creating employees for the mining

to support the mine’s infrastructure

operation itself”. This scheme is being

New Century is dredging up the chan-

spearheaded by Shane Goodwin,

nel at its Karumba facility, opening up

our Head Of Stakeholder Relations

economic opportunities to the sports

and Community Engagement, which

and fishing industries, which otherwise

has been recognized through the

would have been compromised by the

Aboriginal Enterprises in Mining,

silting up of the river.

Energy, and Exploration (AEMEE)

Currently employing 350 people, New Century is also rolling out a AUS$1.8M per annum training and development program for the FEBRUARY 2020

Awards, and more recently the Prospect Mining Awards.”

The main focus for 2020 remains ramping up operations to 12mn tonnes

per annum of tailings throughput

ore feed. Our current mine life extends

through the existing infrastructure. To

up to 2026 and gives us a platform to

support this goal, New Century have

then further define and bring into the

embarked on a programme of infra-

life of mine the known in-situ resources.

structure refurbishment to upgrade the

Everything that we do, be it open pit

hydro mine and processing plant. What

mining or underground, the final clo-

are the plans for realising the future

sure and/or rehabilitation of the land

potential of zinc and lead resources at

post any mining activities will be at the

Silver King, South Block, and the East

forefront of all the mine design and

Fault Block? “Future mineral resources

planning decisions made up front.”

across the mine leases will be the sub-

Forging strong alliances has been

ject of an executable feasibility study

key to the progress made so far at

during 2020,” reveals Harris. “The

Century. “We partnered with National

potential to restart traditional mining

Pump & Energy and Paragon Tailings,

operations at Century will be investi-

who assisted in the development of

gated further for economic viability, it’s

our hydro mining operation, getting

then a matter of optimising when these

those off the ground and training

resources fit best into the life of mine

up the workforce in how to actually

“Zinc prices will rise and Century will be well-placed to meet the demand for mine supply thanks to the investment we’ve made in expanding our facilities” — Barry Harris, Chief Operating Officer, New Century Resources w w w.mi ni nggl o b a l. com

107

NEW CENTURY RESOURCES

108

Meeting the demands of the zinc market Zinc is a commodity very much driven by industrial demand which has remained strong, however with the current global trade disputes, sentiment around that demand has been muted. New Century Resources’ Chief Operating Officer Barry Harris expects to see this sentiment turn once these are resolved. “The zinc market globally is about 14n tonnes of refined metal per annum, with mine supply and the mining capacity fairly well matched in recent history,” he

FEBRUARY 2020

notes. “What happened is that China went from focusing on quantity of tonnes, to quality of tonnes. Over the last few years they’ve been tightening up on their environmental compliance, and with that about 1.3mn tonnes per annum of refining capacity was actually turned off, because those smelters had to put in additional environmental compliance works to get up to a standard that the Chinese government are happy with. That’s why the refined metal stocks dropped

off to a point where right now there’s only about 50-60,000 tons of refined metal on the LME stockpiles.”

Alongside this demand thematic, more mine supply than smelting capacity has led to the current record high treatment charges. “It’s an interesting conf luence of events,” observes Harris. “With the smelting capacity in China now turning back on, those charges will start to drop.

Those record high treatment charges have meant, combined with a relatively low zinc price, that mining companies take home has been squeezed dramatically from historic average.

What you then see happen is quite a lot of marginal supply from mining concentrate suppliers has been turning off. We believe we’re about to see a major turnaround in this balance, as smelters work their way through the build up in concentrate supply, and all the additional smelting capacity comes back on. You can see it in the numbers, the month on month Chinese refined metal outputs are growing substantially, as those smelters are coming back online.

This restarting of capacity will result in a drawdown on the current concentrate build up, which will then require a supply response, however we are seeing that there’s not actually the additional mine supply available to feed into this drawdown. The other key factor you need to see to drive a step change in the zinc price, is for global sentiment around the trade disputes to settle. If one or both of these occur, we anticipate a substantial increase in the zinc macro environment” Harris believes that when the US and China come to an agreement, demand will take off again for industrial metal. “We’ll see a huge demand for copper and associated base metals do to expected increased economic activity,” he says. “Zinc prices will rise and Century will be well-placed to meet the demand for supply, thanks to the investment we’ve made in expanding our facilities which will increase our output while lowering our operational costs to make our business more resilient through any price cycle and ready to take advantage of higher pricing.” w w w.mi ni nggl o b a l. com

109

NEW CENTURY RESOURCES

110

carry out hydro mining operations,”

the project up and running in record

says Harris. “We also partnered with

time. Allied to this, we’re working with

Sedgman, which gave us a strong

Murray Engineering, which supplies

partner for the refurbishment, and

and maintains our mobile fleet, while

with the operations and maintenance

P&O operates our 5,000 tonne trans-

of our processing facilities both at

shipment vessel, the Wunma, out of

Lawn Hill and Karumba. Sedgman is

Karumba.”

a well-known processing plant infra-

Operating for just over 14 months,

structure company here in Australia,

Century is now among the top 15

bringing a wealth of experience to the

zinc producing mines in the world

full refurbishment and helping us to get

and pushing for the top 10. “We’ve

FEBRUARY 2020

“The traditional owners will continue to receive benefits associated with the native title agreement that would have otherwise ceased with the closure of Century by its previous owner” — Barry Harris, Chief Operating Officer, New Century Resources

111

managed to attract a great team of

repeated elsewhere. It’s a huge oppor-

people and have been working hard to

tunity to see mining through a different

foster a culture where our people enjoy

lens, not only here in Australia, but

coming to work and share the values

throughout the world.”

driving our success,” affirms Harris. “As we stabilise operations at Century, and look at ways to extend the mine life, we want to be an example to other mining companies of the great things that can be achieved through economic rehabilitation and hope to see the process w w w.mi ni nggl o b a l. com

112

CHANGING THE GAME FOR ENERGY AND RESOURCES WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RICHARD DEANE

FEBRUARY 2020

113

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IBM INDUSTRY ACADEMY

IBM is helping mining companies solve problems from connectivity through to autonomous solutions, as well as harnessing data to drive the industry towards the digital mines of the future

“

echnology, in its various stages of evolution, is our business at IBM,” reflects Manish Chawla, Global Managing Director for Energy & Natural Resources. “We’ve been involved in mining for decades, and just like in any other industry

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we’ve re-invented our offerings to add services, software, data handling, cloud and AI capabilities. Our focus has progressed from IT and core functions to meet the needs of business transformation projects such as SAP implementations or process outsourcing, to support the mining industry in managing data as a strategic asset; helping the industry to capture, monetise and secure it.”

IBM’s portfolio features a set of offerings targeting enterprise & operations transformation, outsourcing, SAP implementations, and helping clients use their data to their specific strategic advantage. “Look at technologies such as blockchain for traceability in the supply chain,” Chawla adds. “Today, we are a full-service partner focused on the employee experience, while using technology for transforming various functions across a mining organisation.”

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IBM INDUSTRY ACADEMY

Chawla notes a recognition from the mining industry that technology can now solve specific problems from

116

make the industry attractive to a new generation? Technology holds the key.”

A recent study by the World

connectivity through to autonomous

Economic Forum forecast that over

solutions. “Now we’re able to har-

the next decade the mining industry

ness the data, the C-suite can see the

will create further value of $190bn

importance of digitisation and how it

from additional transformational

will drive the business in the future,” he

measures. “When these strategies are

says. “A technology-savvy and enabled

executed in a more integrated fashion,

mining enterprise is critical for attract-

inside-out and outside-in transforma-

ing and supporting the workforce of

tion, we believe businesses will be at

the future. How do you get people

a great advantage from humans and

out of the unsafe conditions of under-

machines working together,” explains

ground mines in remote areas and

Maxelino Nelson, Senior Executive for

“ A technologysavvy and enabled mining enterprise is critical for attracting and supporting the workforce of the future” — Manish Chawla Global Managing Director for Energy & Natural Resources, IBM FEBRUARY 2020

CLICK TO WATCH : ‘SANDVIK: PUTTING I OT TO WORK FOR THE MANUFACTURING INDUSTRY’ 117

Industry Innovation, Global Solutions, & Business Strategy at IBM. “This will outperform humans or machines working on their own. It’s a great opportunity for us and our mining clients to solve some of the societal challenges relating to sustainability while developing the mining sector’s ecosystem to partner with IBM to truly transform the business in a more holistic way.”

Nelson notes that over the past 5-10 years the digital transformation journeys IBM’s clients have taken have been characterised by AI and w w w.mi ni nggl o b a l. com

IBM INDUSTRY ACADEMY

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experimentation with customer-facing

With the initial trends of the first

apps; activities that have been driving

chapter maturing, Nelson maintains

the cloud during chapter one of a digi-

we’re on the cusp of the next big shift

tal reinvention.

in the business architecture. It will

What will chapter two hold? “We

be driven by the pervasive applica-

believe industrial businesses are ready

tion of AI and cognitive technologies,

to move towards business reinvention:

combined with data, to the core pro-

scaling digital and AI and embedding it

cesses and workflows across mining

in the business. It’s about hybrid cloud,

organisations alongside important

moving mission critical applications

functional areas such as finance,

from experimentation to true end-to-

procurement, talent and supply

end transformation. The key to winning

chain. The results of this revolution-

is centred around what we at IBM call

ary change will be defined as the

the ‘Cognitive Enterprise’.”

Cognitive Enterprise.

FEBRUARY 2020

“Companies that get this journey right

How is IBM helping companies

are on the way to being a Cognitive

embrace Mining 4.0 and support the

Enterprise,” affirms Nelson. “In our

move towards the digital mine of the

experience, critical areas for natural

future? “We’ve developed a data-driven

resources industries to get right on this

productivity platform with Sandvik, a

journey are openness and collabora-

leading supplier of underground min-

tion, integration, intelligent workflows

ing equipment. This partnership has

and cultural skills. In a time of continued

seen us connect their assets, their

volatility and disruption, open innova-

equipment, to our cloud to be able to

tion and co-creation are vital to be able

pull data off. The value proposition to

to partner across ecosystems and

a mining company is not only to get

learn from other industries to achieve

data from the Sandvik equipment, but

fundamental transformation as 90% of

also from other vendor feeds,” explains

the jobs in mining are changed, not nec-

Chawla. “Interoperability as well as

essarily replaced, through technology.”

the open data standard is critical for

E XE CU T I VE PRO FI LE

Manish Chawla An ecosystem thinker, Chawla is an experienced Global Manager with a demonstrated history of leading and scaling technology-driven businesses in the energy & resources, industrial and construction, sectors.

His passion is helping companies leverage exponential technologies (AI, IoT, Blockchain, Industry 4.0, AR/VR, 5G etc) to fundamentally re-imagine their enterprises in the platform economy to survive (and thrive) in the face of the three climate changes - environment, globalisation and technology

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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.

a mine operator. They get visibility

safety use cases and optimisation

to production information, help with

of smelters.” IBM is also working with

equipment, maintenance analytics and

Newmont Goldcorp to help them

improved uptime.”

better understand their ore body,

Built on IBM technologies, Sandvik

allowing them to reduce the time

offers a platform for underground mine

spent by geologists in analysis |and

optimisation, both for production and

data collection to determine where

data/maintenance related aspects.

to guide the next drilling campaign.

“We’re also the primary data analyt-

“We’ve reduced inaccuracy by 95%

ics platform and AI software services

with the geology data platform that

partner for Vale for where they have

we call ‘cognitive ore body discovery’,”

an AI centre of competence,” Chawla

says Chawla.

reveals. “We’re doing an extensive set

IBM is committed to supporting

of use cases with them, including

the sustainability efforts of mining

route optimisation for trucks, testing

operations across the globe. “By using

E XE CU T I VE PRO FI LE

Maxelino Nelson “As a global industrial leader for mining I’m part of IBM’s leadership committee that oversees the strategy and development of worldwide mining industry practice and other natural resources industries.” An entrepreneurial business leader with two decades’ multinational experience, including the Americas, Europe, Middle East, Africa, China, India, Russia, and Australia, Nelson is a leader in the global industry for manufacturing and resources and leverages industry ecosystem partnerships to help clients take solutions from idea to reality.

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IBM INDUSTRY ACADEMY

intelligent workflows on the blockchain to address social sustainability in the context of the entire supply chain, miners can demonstrate social responsibility and also begin to build a culture of innovation,” believes Chawla. “The work we are doing on the Responsible Sourcing Blockchain Network (RSBN) with RCS Global allows businesses to track cobalt from industrial and mining companies to ensure that they are working responsibly, whether it’s in the Congo or other parts of the world, 122

across the supply chain from mine to smelter to battery manufacturers and to automotive OEMs.” IBM are seeing many automotive OEMs joining the platform along with key industrial scale miners operating cobalt mines in Congo who wish to augment their use of OECD (Organisation for Economic Co-operation and Development) responsible supply chain guidelines.

The company is looking to extend the network to other metals such as tin, tantalum, and gold, which are all important to the new economy emerging for minerals associated with electronics and EVs. FEBRUARY 2020

Chawla notes the demand, driven by the rise of EVs and electronic brands, for an active, working and open democratic network to ascertain responsible sourcing and support artisanal miners to be able to operate safely in a fairtrade manner.

IBM is also working with Minehub – a mining and metals trading platform – helping it streamline operations with various business partners across the mining ecosystem. “The MineHub platform is not a market-maker; it allows buyers and sellers to agree on trade. It comes to play once the trade has been set and the terms have been agreed,” explains Chawla. “This helps to improve the operational efficiencies, logistics and financing, while concentrating the supply chain from the mine to the buyer.”

MineHub has been working in collaboration with IBM and other industry participants across a value chain that includes the likes of ING Bank, leading precious metals firm Ocean Partners and Capstone Mining. Minehub also features clearing houses, refiners, smelters, financiers and other providers like Kimura joining along with w w w.mi ni nggl o b a l. com

123

IBM INDUSTRY ACADEMY

FACTS

IBM on mining trends

124

“Sustainability has become a crucially important vector,” asserts Manish Chawla, Global Managing Director for Energy & Natural Resources at IBM. “This is allied to a bigger focus on mixing the recovery of the minerals and metals that will support the technology of the mines of the future.

Meanwhile, operating them in a remote and autonomous manner will force mining companies to develop network connectivity with the ability to manage assets and equipment to move the needle, leveraging AI and data analytics in a much more profound and highly integrated way.”

Chawla adds that similar efforts must be made to support the culture change required to drive the benefits of innovation.

IBM are keen for mining companies to learn from the construction sector and implement digital twins. “It allows you to investigate how a mine asset is performing and functioning at any given moment,” explains Chawla.

“Monitoring via a digital twin ref lects not only the way the mine was designed with autonomous equipment

FEBRUARY 2020

but also how it’s being operated.

Technology starts to guide action, and can intervene so that safe and reliable operations can continue. The expectation is that data and connectivity become ever-present and omnipresent, guiding autonomous agents to perform functions rather than humans.”

Maxelino Nelson, Senior Executive for Industry Innovation, Global Solutions, & Business Strategy at IBM, sees an increased urgency from mining companies to establish an integrated road map as an important step in bringing strategy operations and IT together. “They use a road map to understand business drivers with technology requirements, all incorporated, so the entire enterprise will be moving forward in an integrated manner. It’s more common now to see business and IT coming together in collaboration, trying to determine which projects can deliver the most value and can easily be scaled from the pilot site.”

IBM — Cognitive Mining Solutions Geological Intelligence

Equipment Intelligence

Improve Orebody discovery and geological activities to ultimately recover more ore, deliver accurate ore budgets and support rapid mine planning to optimise drill, block and blast activities for consistent fragmentation and recovery.

Improve maintenance planning, efficiency, and effectiveness to reduce time, effort, and cost of both scheduled and unscheduled work (e.g. implement to advanced predictive condition-based maintenance models).

HSSE & Worker Safety Intelligence

Supply Chain Intelligence Mine-to-Port supply chain delivery and rapid mine planning improved plant operations can better connect the demands of the market to your suppl.y Optimise supply chain and resupply operations by predicting and consolidating requirements across multiple locations and driving down facility operation and sustainment costs.

Production Intelligence To improve production via managed and optimised mobile f leet operations; optimise control processes; predict and avoid process interruptions, slowdowns, stopwpages and under or overruns; and accelerate operator issue-resolution to sustain higher uptime levels of normal operations.

Analyse historical incident data, workforce data (qualifications, experience, performance, etc), environmental data, and work conditions to identify changes in risk profile or potential issues before they become incidents.

Optimise emergency response to mitigate risk, enhance outcomes, and accelerate return to normal operations Enterprise Intelligence Risk mitigation and resource allocation in capital projects, aimed at minimising impacts to production plan commitments.

Push greater efficiencies in legal and procurement functions and sure compliance to core polices, commercial practices, and legal & regulatory obligations.

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IBM INDUSTRY ACADEMY

royalty holders and streamers such as Lincoln. A tier one miner is also set to trial the platform. Chawla notes they are all benefiting from the efficiencies of the platform, all providing key pieces of information to these transactions.

When it comes to digital innovation across the mining panorama, Chawla says it’s still a challenge to ensure all parties are aligned so that everyone benefits. “It’s important to get centreled IT and overall C-suite leadership both working towards the improve126

ment of operating assets,” he says.

“With much of the work we do, we also think hard about the experience of

“ We believe industrial businesses are ready to move towards business reinvention: scaling digital and AI and embedding it in the business” — Maxelino Nelson Senior Executive for Industry Innovation, Global Solutions & Business Strategy, IBM

FEBRUARY 2020

frontline employees and incorporate this into the design of the solutions to ease adoption. We’ve taken this approach with Sandvik where we’ve done design sessions at the mine site with shift supervisors, truck drivers and mine managers.”

A key obstacle to overcome in order to successfully integrate digital innovation is access from a network perspective and being able to capture the data. “Many companies are upgrading their networks and 5G is

127

exploding,” notes Chawla. Allied to this

challenge. If it’s approached in col-

he believes measured interoperability

laboration with interoperability in mind,

is vital. “Mining companies operate

then you can accelerate. But that is a

differing fleets from a range of vendors

continued two steps forward, three

with equipment right across the value

steps back kind of situation.”

chain. Each vendor is pitching their

IBM is pushing forward in 2020 to

own solutions. Do they go with one of

meet its goals around driving inno-

the vendors? Or do they go with devel-

vative solutions for the energy and

oping their own platform? And then,

natural resources industries. “We want

will the vendors open up and share

to infuse more data and AI capabilities

the data that the mine operators and

into their operations to take them live,”

ourselves can leverage in partnership?

pledges Chawla. “We will be continuing

This complex ecosystem becomes a

our work on three specific new platforms w w w.mi ni nggl o b a l. com

IBM INDUSTRY ACADEMY

1911

Year founded

$79.59bn+ Revenue in US dollars

350,000 128

Number of employees

FEBRUARY 2020

to further enhance the idea of ecosystems coming together to drive tangible outcomes for our clients in all the vectors of mining.” Chawla’s team also plan to nurture and scale IBM’s cybersecurity offering to secure operating technology and systems. “As more plants, more mines, and more equipment get connected, the cyber threat increases, so we’re pleased with the tremendous progress we’re already making to secure operations as they grow.”

Nelson confirms IBM is currently working with a large oil and gas supermajor for potential partnership to co-create a digital mining services integrated platform. “This platform is tendered around developing a different model for how mining companies consume digital solutions and services, and how mining providers and solutions developers can make them available to the industry. It is a game changer and it shows how upbeat and interesting the mining industry has become to wider industries.”

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A UNIQUE DIGITAL TRANSFORMATION WRITTEN BY

HARRY MENEAR PRODUCED BY

RICHARD DEANE

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ERAMET GROUP

Ludovic Donati, CDO at Eramet, discusses the French mining giant’s use of drones, AI, ML and other cutting-edge technologies in order to overcome unique challenges and thrive in a new digital age

A

global digital transformation is underway.

New digital solutions, powered by artificial intelligence (AI), machine learning (ML),

the Internet of Things (IoT), Big Data analytics and augmented reality (AR) are driving a digital revolu132

tion. Across every industry, companies are facing new challenges and exploring new opportunities.

But digital transformation is more than the simple adoption of cutting-edge technology; those companies that wish to reap the largest rewards are the ones that look to transform more than their software solutions. “We’re not guided by new technology, but by the new applications of that technology and the new ways of thinking and operating that it enables,” says Ludovic Donati, Chief Digital Officer at French mining and metals giant Eramet Group.

Operating since 1880, Eramet is a leading global player in the extraction of metals like nickel and manganese, as well as the processing and manufacture of high-value alloys such as high-speed steels, high-performance steels, superalloys, and FEBRUARY 2020

133

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ERAMET GROUP

“ We’re not guided by new technology, but by the new applications of that technology and the new ways of thinking and operating that it enables” — Ludovic Donati, CDO, Eramet

US$4bn in 2018. The company’s main operations include mines and process-

aluminum and titanium alloys. “We

ing plants in Europe, Africa, Oceania,

also produce special alloys for differ-

Asia and North and South America.

ent sectors like aerospace, nuclear,

134

After obtaining a PhD in chemistry,

defense, and so on. For instance, when

Donati joined Eramet in 2011 and spent

you travel in a plane made by Boeing or

three years in the company’s R&D

Airbus, you are traveling with Eramet,

department as a research engineer.

because we produce a lot of very

In 2014, he moved over to the corpo-

important parts for those companies,”

rate strategy department and, in 2017,

Donati explains. “Eramet is an interest-

was asked by senior leadership to

ing organisation because it’s both a

conduct a study of what exactly the

metallurgical and mining company;

digital transformation of a mining and

we are present all the way up the

metallurgical company like Eramet

value chain.” Eramet employs around

would look like.

13,000 people across 20 countries and reported revenues of more than

FEBRUARY 2020

As the global business landscape is reshaped by the digital revolution,

CLICK TO WATCH : ‘ERAMET, EXPLORING OUR WORLD’ 135 a shifting political zeitgeist and a

demand for lithium in things like elec-

worsening climate crisis, Eramet is

tric vehicle batteries, smartphones,

undergoing a unique digital trans-

etc. and, to produce it in quantities

formation in order to employ new

that meet our customers’ needs, we’re

mindsets and technologies to over-

going to use digital to drive efficiency

come new and evolving challenges.

wherever we can.”

“We started by making some proof of

In order to effectively transform

concepts that showed good results.

Eramet’s operations using technology

Then, we decided it was necessary

ranging from IoT and drones to digital

to create a new digital transformation

twins and advanced data analytics,

department,” recalls Donati. “Today,

Donati and his team need to overcome

the crux of Eramet’s strategy is to use

several challenges that are unique to

digital to support being a leading pro-

a company like Eramet. “So the first

ducer of nickel, manganese and also

problem is: how do you digitalise a

of lithium. We’re predicting exponential

mine when it’s in the middle of w w w.mi ni nggl o b a l. com

ERAMET GROUP

“ It’s very important for our operations to be connected, in real time, to our experts” — Ludovic Donati, CDO, Eramet

136

FEBRUARY 2020

a rainforest? Or the middle of the pacific ocean? That’s a challenge,” he reflects.

The second challenge is that mining is a relatively old industry, and the skills required by Eramet are set to shift dramatically. “If you’re a miner or a geologist today, tomorrow you’re also going to need to be a data scientist and a drone pilot,” Donati says. “In order to align ourselves, we held a workshop with people from our operations in New-Calédonia, Gabon, Senegal, Norway, Paris — you name it. We sat down with everyone and worked together to define our vision for Eramet 4.0 using three axes.”

SAFETY In locations with environmental threats, Eramet is using IoT and drones to check equipment and monitor operations with w w w.mi ni nggl o b a l. com

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ERAMET GROUP

138

1880

Year founded

more accuracy and speed. “In New Caledonia, cyclones are quite common, and you need to run regular checks to make sure equipment hasn’t been

€3.825mn

damaged,” says Donati. “Previously, we’d send a car with two people in it to

Revenue in euros

check and hear back in three to four

12,705

to three hours.” The company has also

Number of employees

FEBRUARY 2020

days if everything was ok. Now, with a drone, we can reduce that down to two begun implementing AI-powered collision avoidance technology in its truck fleet, as well as overseer software to prevent fatigue-based accidents.

OPTIMISATION

says Donati. “With all this data, we’re

In addition to reducing fuel consump-

actually building a digital twin of the mine

tion across its entire operation, Eramet

in New Caledonia, so we will soon have

is using AI-powered data analytics to

the possibility to run different scenarios

manage its fleet and process topo-

based on, for example, fluctuations

graphical modeling data gathered by

in the price of nickel.”

drone surveyors. “We’re using drones to do these topographical measure-

REMOTE EXPERTISE

ments and, in 2019, we mapped more

As a way of solving the problem

than 300,000 acres, which is about 100

of changing skill needs, Eramet is

times more than the previous year,”

investing heavily in an operational

E XE CU T I VE PRO FI LE

139

Ludovic Donati Ludovic Donati has been the Chief Digital Officer of the Eramet Group since its beginning in 2017. Eramet is a global mining and metallurgical group employing about 13,000 collaborators with a presence in 20 countries. Since 2018, Ludovic has been the Digital Correspondent of the French Mining and Mellurgy Sector and a board member of the Afnet association. A normalien with a PhD in chemistry, Ludovic joined the Eramet group in 2011, where he held various positions in R&D, investor relations and strategy (CEO’s office).

Ludovic was appointed Group Chief Digital Officer at Eramet in 2017 in order to provide the company with a strong, coherent and sustainable vision for digital transformation and to launch concrete achievements from proof of concept to industrialisation in the fields of Mine 4.0 and Plant 4.0. He was nominated for the Next Leader Awards of Les Echos French newspaper in 2018 and won the “Grand Prix de l’Acélération Digitale BFM Business” for Eramet in 2019.

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This means smart mines that are efficient to operate, maximize safety and minimally impact the environment.

hexagonmining.com

“ If you’re a miner or a geologist today, tomorrow you’re also going to need to be data scientist and drone pilot” — Ludovic Donati, CDO, Eramet

70 people, 50 of whom are focused on data science and engineering and now we’re working on AI, data sci-

transformation of the way it delivers

ence and ML projects. Our algorithms

expertise to remote locations. “We’re

implemented in our ferronickel or sili-

using remote expertise powered

comanganese furnaces are learning

by AR,” explains Donati. “It’s very

and, every day, they’re becoming more

important for our operations to be

and more accurate.” At the end of a

connected, in real time, to our experts.

successful year of small-scale imple-

We’re collecting all the data from our

mentations and proof of concept tests,

mines and plants and in 2020 we will

Eramet is at a tipping point. Looking

implement remote operations centres

to the future, Donati acknowledges

across our operations.” This, Donati

that the coming year will be one of

explains, allows the company powerful

monumental change for Eramet. “We

insight into the processes of its facili-

did a great job in 2018, running proof

ties, helping to drive efficiency on

of concepts and tests. This year, we

a global scale and enabling Eramet to be

industrialised and deployed a lot of pro-

more reactive to changes in the market.

prietary solutions,” he says. “Next year, in 2020, we will be aiming for full scale

THE FUTURE

deployment.”

This transformation has been defined by its speed and scale. “A year and a half ago, we had no competencies in data science, cloud, analytics etc.,” recalls Donati. “Since then, we’ve built a digital transformation team of about w w w.mi ni nggl o b a l. com

141

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