Australian Mining Feb 2016 by Prime Creative Media

VOLUME 108/1 | FEBRUARY 2016

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COMMENT

THE FIGHT AT THE END OF THE TUNNEL MINING’S STRUGGLES ARE FAR FROM OVER AS THE START OF THE YEAR SEES SHAREPRICES DECIMATED GLOBALLY. COLE LATIMER

ozmining@primecreative.com.au

e’ve well and truly moved through the looking glass here. This year has started as one of the worst for commodities in a long, with the Bloomberg Commodities Index kicking off at its lowest point, while metals such as iron ore, nickel, and copper all plunge to new depths. The coverage of returns for 22 different materials fell four per cent. Much of this has been driven by the Chinese implosion, as the country devalued its currency and experienced a sharp sharemarket decline; the nation’s markets were also unable to halt the tide of capital flowing out. This has had a massive impact on mining and commodity prices, which rely heavily on ongoing Chinese demand, and are being negatively affected by continuing uncertainty in the country. Of course, this has had a massive flow on effect for the operators. BHP, Anglo American, and Vale were the worst hit, with BHP falling to a decade low share price, slipping below its $15 per share low watermark. Billions is being wiped off the sharemarket, and the likelihood of much of this financial strength returning is close to nil for most miners. We have even apparently reached peak gold, with miners themselves and not just the market, predicting production rates to decline anywhere from three to 15 per cent in the coming years. Yet, in the face of all of this the Federal Government has predicted mining exports earnings to grow by more than 40 per cent by 2019-2020.

ASSOCIATE PUBLISHER MARTIN SINCLAIR Email: martin.sinclair@primecreative.com.au EDITOR COLE LATIMER Tel: (02) 8484 0652 Email: ozmining@primecreative.com.au JOURNALISTS BRENT BALINSKI Tel: (02) 8484 0680 Email: brent.balinski@primecreative.com.au BEN HAGEMANN Tel: (02) 8484 0884 Email: ben.hagemann@primecreative.com.au PRODUCTION CO-ORDINATOR ZIBA MAHABAT Tel: (02) 8484 0625 Email: ziba.mahabat@primecreative.com.au

The release of the Department of Industry, Innovation and Science Resources and Energy Quarterly report in the December quarter showed the mining sector’s contribution to the GDP over the past decade had increased from six to nine per cent, an upswing of 50 per cent. The department expects resources and energy earnings of $166 billion in 2015-16, down on the previous year by four per cent due to lower commodity prices. Chief economist Mark Cully said the low price conditions that characterised 2015 were forecast to persist in the short term, and that any prospect of recovery in that time frame was limited. “On the home front, Australia’s production of most commodities has continued to increase despite lower prices,” he said. “The rapid increase in mining output is expected to underpin the production phase of the boom and provide some support to export earnings. “However, the increase in volumes is unlikely to be sufficient to offset the effect of lower commodity prices across the board.” Mining has entered a strange new era, where the success of the last few years and wealth brought to the nation count for naught, and belt tightening and a focus on survival is the only way to ride the storm. Let’s hope mining, for its sake, has fight left in it.

FRONT COVER

In this edition of Australian Mining, the first for 2016, we’ve featured new liner wear plats for a SAG Mill, and how their installation dramatically cut wear, reduced maintenance, and overall change-out times. This edition also looks at the latest developments regarding the re-emergence of Black Lung in Queensland, how this occurred, how it affects the workers, and the steps being taken to combat its rise and stop the re-occurrences. Australian Mining looks further afield, bringing you an insight into one of the last totally closed countries – North Korea – and looks at how its mining industry is developing and what role Australians are playing in this. Our crew also visited a wire rope factory in the US, so we give you a run down on the history of wire ropes, and a look at ‘how the sausage is made’. We also look at new technology that is making underground coal mine spark testing safer, the latest excavators and shovels from Caterpillar, as well as new drills and bits.

Cole Latimer Editor

GROUP SALES MANAGER TIM RICHARDS Tel: (02) 8484 0829 Mob: 0420 550 799 Email: tim.richards@primecreative.com.au SALES MANAGER JONATHAN DUCKETT Tel: (02) 8484 0866 Mob: 0498 091 027 Email: jonathan.duckett@primecreative.com.au GRAPHIC DESIGNER LOUIS SANTOS SUBSCRIPTION RATES Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 READER SERVICES 1300 360 126

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CONTENTS

FUTURE MINING

COAL PAGES A SAFER ALTERNATIVE FOR SPARK TESTING New technology taking the danger out of spark testing in underground coal mines

18-19

10-13

THE NEXT STEP IN THE SPACE MINING RACE A one on one with the head of asteroid miner Planetary Resources about the future of the industry

BATTLING AGAINST QUEENSLAND’S BLACK LUNGS The re-emergence of black lung in Queensland

MANUFACTURING

20-21

MINESITE VEHICLES CAT RELEASE NEW MINING SHOVEL A new hydraulic excavator has been launched in both shovel and backhoe designs

FROM IRON TO THE DRAGLINE A twist on dragline steel wire ropes

QUARRYING, CRUSHING & SCREENING A SILVER LINER-ING AT A COPPER MINE A redesign of discharge chutes at a copper mine has resulted in increased service life

IN FOCUS

16-17

22-24

CUTTING CONVEYOR CHUTE BUILDUP Crusher discharge chutes are now cutting tacky conveyor buildup

A NEW MOVE IN NORTH KOREAN MINING A massive discovery in North Korea of a rare earth ‘super deposit’ may mean a revival of mining in the country

REGULARS

INDUSTRIAL COMMENT

NEWS

8 AUSTRALIANMINING

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PRODUCT SHOWCASE 4

EVENTS

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INDUSTRY COMMENT

2016: THE YEAR AHEAD FOR MINING AND METS METS INDUSTRY BODY AUSTMINE FORECASST WHAT MAY COME IN 2016, AND WHERE THE MINING AND METS INDUSTRIES ARE HEADED.

he start to 2016 for the mining and METS sectors has been a disappointing one. Whilst iron ore has temporarily risen in price, it is forecast to drop back down to around $US30 per tonne, and another smaller iron ore player, Gindalbie Metals, has been abandoned by parent company Ansteel and currently hovers in uncertainty about the future of its Karara Project. Some of Austmine’s directors took time out to share their thoughts on 2016, what it holds for the industry and what can be done about it. Alexander Kachellek, managing director of Korvest and chair of Austmine, gave a shrewd evaluation of what is to come in 2016. “Miners and METS companies need to be able to continue as they are for, I believe, the next 2 years with the current tumultuous business conditions. Businesses need to focus on strategies, then action plans, that include things like Kaizen that makes the business fitter and ready for an upswing. “Remember, ‘if it is down, then it will go up and if it is up, it will go down’; we just do not know the length of downs and ups!” Ian Gibbs, executive general manager mining of RCR Resources provided some excellent insights and advice: “The METS sector is facing one of the toughest periods in history, with 2016 being defined by weak domestic opportunities. (Certainly the worst I have seen in nearly 40 years in the industry). Many projects have been delayed and the outlook appears these will remain on hold for the most part of the year,” Gibbs said. “Both coal and iron ore sectors do not forecast rapid improvement, certainly in the first half of the year. Many companies will face the challenges of restructuring to prepare for the future, leaner and with improved effectiveness. “My thoughts are, our opportunities lie in improving our efficiency as suppliers,

restructuring our offering to clients and providing real cost saving solutions by innovation. This may include new technologies, but also new ways in engaging with clients in service and support. “However offshore opportunities will present with the weaker Australian dollar and I have already witnessed our competitiveness has dramatically improved, which should unlock many opportunities, for Austmine members,” he said. “Apart from the obvious measures to reduce costs Australian companies will need to be very nimble, seize the opportunities presented and looking a new ways to do things.” Rob Simpson, manager for infrastructure and environment at Xenith Consulting and deputy chair of Austmine concurred with Gibbs, emphasising the need for diversifying in METS: “Retaining existing clients whilst broadening service, geographic and/or customer base; as opposed to even further, unsustainable cost cutting and market shrinkage, is critical for METS companies sustainability over the next 12 months.” Max Wijasuriya, vice president for capital equipment at Metso Australia made some excellent observations on the opportunities and need for innovation provided by these challenging market conditions. He took a positive approach to how organisations need to tackle this new market norm: “The challenges will certainly be there in 2016 with the volatility around the world markets and uncertainty around commodity prices. What seems to be changing though, is the opportunity for innovation, to do things differently – something which has always been there, but where the takeup of these ideas was quite low (or took too long) in the past, due to the focus on proven production sometimes seemingly at any cost,” Wijasuriya said. “METS companies need to find more than ever before ways to add value, whethAUSTRALIANMINING

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er through technology, innovation, or different problem-solving approaches, etc. The need to maximise profit and improve efficiency has never been more important with less to go around given the challenging times – but mining will continue to remain a critical business worldwide; it’s just that some of what is being focused on may change and progress. “What was important before will remain important, but other areas and ways of thinking will come to the fore – a positive development.” Alan Broome, chairman emeritus of Austmine and chairman of Micromine and Hedweld, two Austmine member companies, offered his insights into the reality of the next 12 months for miners and METS here in Australia: “This year is going to be very tough for Mining and METS,” he said. “The latest Macquarie Bank commodities forecast is very gloomy, reflecting the current and immediate future state of our sector. My opinion is that a lot of Mining Companies will go out of business and a huge number of assets will be put up for sale at bargain prices. The flow on to METS will be significant and unless they can adjust, they will falter. “My view is that many METS businesses are not equipped to adjust quickly enough to the changing market demand and circumstance. They will need to be very focussed on ‘adjustment strategies’ rather than “more of the same”. I’m not sure that this is widely appreciated as yet. Every company needs to have its own adjustment strategy; there can be no one fits all approach. This state of the market is not a flash in the pan; it has been with us for quite some time and will continue for a fair while yet, so you can’t just hold your breath and hope it goes away.” Peter Seligman, managing director of SRO Technology, an SME METS business provided commentary and advice

based on his own position in the industry, facing these challenging times: “The last few years all the miners have been chasing their cost curve. Their products have been getting cheaper, so they either had to get more productive or cut the costs of their operations. More often than not, they’ve been focusing on getting cheaper, rather than more productive. We’ve seen this with them cutting their workforce, spending less on maintenance and investing in less capital expenditure. “Last year, David Moult, MD and CEO of Centennial Coal talked about the 3 waves of the downturn (a concept borrowed from Kirby Johnson, Consulting Partner at Wipro) and improving efficiency,” he said. “Firstly you cut costs, secondly you sweat your assets and thirdly is the reengineering phase, where you begin to spend money once again on making your assets more productive. That third wave is the huge opportunity for METS - but who knows when it’s going to happen? It might be 2016, it might not be. However, it does have to be relatively soon, because there’s no more cost the miners can cut. They will need to start spending money, in order to save any more on costs. “The opportunity for METS, in my opinion, lies in METS taking responsibility for kicking off that third wave. What can they do to get their hands dirty to demonstrate that miners can, and should, initiate that third wave?” Austmine CEO, Christine Gibbs Stewart shared her thoughts on what METS can do to stay strong and competitive during the year to come: “As noted by our Directors, and evident in the commodity prices, news and forecasts, 2016 is going to be another challenging year for the METS sector. We can either be defeated and go nowhere, or rise to the challenge and look at new ways of doing things, explore new opportunities, develop new relationships and importantly - innovate.” AM

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NEWS

THE LATEST MINING NEWS AND SAFETY AUSTRALIAN MINING PRESENTS THE LATEST NEWS AND SAFETY AFFECTING YOU FROM THE BOARDROOM TO THE MINE AND EVERYWHERE IN BETWEEN. VISIT WWW.MININGAUSTRALIA.COM.AU TO KEEP UP TO DATE WITH WHAT IS HAPPENING. RIO TINTO CEO FREEZES PAY IN 2016 Rio Tinto is primed to tighten its belt another notch this year with a global salary freeze on all employees, reduced travel expenditure across the board, and further scrutiny of contractor and consultancy spending. An internal email written by chief executive Sam Walsh [recently obtained by Australian Mining] revealed Rio Tinto’s increased focus on cost saving measures, spelling out there would be no annual pay increases for anyone from the CEO down. “Late last year we saw market prices continue to rapidly fall. What we see ahead is very sobering,” Walsh declared. The CEO said he anticipated 2016 would be an even tougher year than the last, with

prices for commodities “now around 2005 levels or lower”, and some “down as much as 80 per cent from their highs and nearing long-term historic averages”. “This situation is not temporary and our industry is moving into the new normal which means we must continue to be one step ahead,” Walsh said. “The pressure this is placing on our industry is significant and it is a tough time across the sector. It is important we recognise that the pressure isn’t going to let up. Walsh attributed the new pressures to sluggish global economic growth in the wake of the economic crises of 2009, but also because of slow growth in China and its transition from “metals-intensive sec-

tors - like infrastructure and construction - to consumer spending. “This decision was a very difficult one,” Walsh said of the pay freeze. “I’m sure you are disappointed by it, as am I, but it is necessary given the market context. “It doesn’t reflect the hard work or effort put in by everyone.” The email stated that Short-Term and Long-Term Incentive Plans (STIP, LTIP) from 2015 and the myShare Global Employee Share Plan would be unaffected. Walsh pointed out that this was not the first downturn seen by the company, and that he expected Rio Tinto can “thrive when others falter”.

NEW ELEMENTS DISCOVERED

IS 2016 THE WORST YEAR FOR COMMODITIES YET?

Four new elements have been discovered and added to the periodic table. Elements 113, 115, 117, and 118 were discovered, completing the seventh row of the table. They were manufactured by colliding light nuclei particles into one another and tracking the swiftly decaying elements, which have only limited stability and lifespan. It follows on from the discovery of elements 114 and 116 in 2011, and were uncovered in Japan, Russia, and the US. These new elements were verified just before the turn of the year, by the International Union of Pure and Applied Chemistry. Elements 115, 117, and 118 were uncovered by a joint US-Russian team, whilst 113 was found by a team of scientists

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from Japan’s Riken Institute. The Japanese team found element 113 by bombarding a thin layer of bismuth with zinc ions travelling at about 10 per cent the speed of light, theoretically, seeing them occasionally fusing to form an atom of element 113. Head of the Riken research team, Kosuke Morita, is now focusing on finding element 119. “Now that we have conclusively demonstrated the existence of element 113,” Morita said, “we plan to look to the uncharted territory of element 119 and beyond, aiming to examine the chemical properties of the elements in the seventh and eighth rows of the periodic table, and someday to discover the island of stability [where elements with longer half-lives will be found].”

The Bloomberg Commodity Index has recorded its worst start to a year since data began collection in 1992. The coverage of returns for 22 materials fell four per cent, according to Bloomberg. Much of this has been driven by the Chinese implosion, as the country devalued its currency and experienced a sharp sharemarket decline; the nation’s markets were also unable to halt the tide of capital flowing out. This has had a massive impact on mining and commodity prices, which rely heavily on ongoing Chinese demand, and are being negatively affected by continuing uncertainty in the country. The Commodity Index fell on Monday, for the fourth time in only six sessions, to 74.89, the lowest figure since 1999, edging close to the record low of 74.24 reached in that same year. Oil has fallen to a 12 year low, with predictions that it may slide down to close to US$10 per barrel. Copper has also fallen to its lowest point since 2009, the metal’s price fell to a six year low, dropping 1.7 per cent to US$4407.5 per tonne on the LME, and down to US$1.9964 per pound in the US 24 hour markets, wiping out the majority of gains made late last year. AUSTRALIANMINING

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COAL

A SAFER ALTERNATIVE FOR SPARK TESTING SUB: NEW TECHNOLOGY HAS BEEN DEVELOPED TO TAKE THE DANGER OUT OF SPARK TESTING IN UNDERGROUND COAL MINES.

round breaking research at CRCMining is set to revolutionise testing of devices for use in potentially explosive atmospheres such as underground coal mines, with the development of a safer, lower-cost electronic alternative to the Spark Testing Apparatus (STA). In collaboration with ACARP and German Metrology Institute Physikalisch-Technische Bundesanstalt (PTB), researchers at CRCMining are developing an alternative to the electro-mechanical Spark Testing Apparatus (STA) that has been the standard for 50 years. The research work was conducted in response to the many issues associated with the STA. According to CRCMining, the STA apparatus only provides a pass/fail result, with a high degree of variability; tests are expensive, time consuming, and can only be carried out at a few specialised laboratories. CRCMining’s new Electronic Spark Tester (EST) provides a more reliable, informative and versatile test method, and provides an intrinsically safety approach for better risk management in explosion protection. Peter Henderson, engineering manager of underground operations at Glencore’s Coal Assets Australia division, has monitored the progress of the research work which has been funded by ACARP. “This project has broken new ground in the understanding of intrinsically-safe (IS) equipment,” Henderson said. “It has shown that the processes used to assess IS equipment are out-dated. The ultimate outcome of this project will be a safer and more productive coal industry.” He went on to state, “This is another great example of the coal industry working with profes-

sional and competent research organisations, such as CRCMining, to improve the knowledge and understanding of complex issues that are not just relevant to the coal industry, but the broader community as a whole.” Enver Bajram, CRCMining’s project leader for the Electronic Spark Tester (EST), explained that unlike the STA, the EST does not require the creation of real sparks or explosions, instead a spark simulation is applied as a dynamic load to the device under test (DUT) using a custom designed electronic loading device. “The EST then makes a series of measurements of the DUTs voltage and current response to the spark simulation and interprets these measurements based on knowledge of spark physics, developed from experiments undertaken specifically for this project,” Bajram said. “The EST measures the response of the DUT and then provides an indication of spark energy and compares this to a known safe limit called an ignitability metric. “The information provided by the EST gives engineers and the developer the ability to characterise the response of the DUT and determine its level of safety or level of failure rather than a pass or fail as is currently the case with the STA.” “By removing the requirement for a specialised laboratory, the EST will enable a new approach where Intrinsic Safety (IS) testing can be conducted by developers, test houses, manufacturing facilities and on site personnel to ensure the ongoing safety of devices. Furthermore the EST will give the ability for every IS power supply to be tested as they roll off the production line, rather than a single device,” he said. Rajiv Shekhar, CRCMining’s principal researcher for the EST project said results have shown that there are significant dif-

ferences in the explosive limits between hydrogen and methane at low voltage levels that have not been previously studied. “If this knowledge can be used to inform future changes to the standards then this could provide significant benefits to the affected industries by providing for higher powered, low voltage supplies without compromising safety,”Shekar said. CRCMining has recently published a report detailing the project results and submitted a draft proposal to the International Electrotechnical Commission (IEC) for implementation into the IECEx 60079 standard. AUSTRALIANMINING

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While continuing with this research, the team at CRCMining are providing a new design review and prototype testing service to assist manufacturers with meeting the requirements of the current standards. In September 2015 CRCMining’s Electronic Spark Test research team received an ACARP Research and Industry Excellence Award for this project. ACARP executive director Mark Bennetts said the progress towards creating an Electronic Spark Tester as an alternative technique to the flawed existing spark test methodology is a remarkable achievement and will

THE ELECTRONIC SPARK TESTER DOES NOT REQUIRE THE CREATION OF REAL SPARKS, INSTEAD CREATING A SIMULATION

help the industry move forward with more certainty in this space. “The fact that CRCMining’s research has been delivered in collaboration with German Metrology Institute PBT, indicates the potential for international change of both testing and eventually International Electrotechnical Commission (IEC) standards,” Bennetts said. AM

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COAL

BATTLING AGAINST QUEENSLAND’S BLACK LUNGS BLACK LUNG, OR MINERS’ PNEUMOCONIOSIS, HAS REARED ITS HEAD IN AUSTRALIA AFTER A LONG PERIOD OF OBSCURITY FROM THE PUBLIC EYE.

ince the 1980s black lung has been regarded in the same category of diseases as polio and measles, as something thought to have been obliterated from our public health landscape. New standards for reducing particulate matter in coal mines were introduced, improving the overall health of coal miners, but how many cases have gone ignored over the decades? A renewed public focus on the disease has revealed six workers, at the time of printing this issue, had been diagnosed with black lung, and more expected to follow.

Typically thought to affect those with extensive experience in coal mining, particularly during the 1970s and 80s, the ages of the men recently diagnosed ranged from veteran retired workers in their 70s, all the way down to a man in his late 30s. The young age for some victims has alarmed unions in Queensland, and a new push is on to review the system of medical scrutiny for coal workers. Each of the six miners diagnosed (to date of writing) had worked at least one mine out of the Oaky Creek, Grasstree or Carborough coal mines. One recent case was an unnamed Middlemount man who

had been working underground since the 1970s, who was diagnosed with the symptoms of black lung by Dr Robert Cohen, an American expert in the field of coal worker’s lung diseases. Queensland will soon commence a review of the Coal Mine Workers’ Health Scheme (CMWHS) which will involve key industry and medical stakeholders.

The CMWHS involves taking x-rays of workers’ chests when they begin work in the industry, a minimum of once every five years, and when they exit the industry. Professor Malcolm Sim Monash University Centre for Occupational and Environmental Health, who has been assigned to head the review panel, says it

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COAL

DUST SUPPRESSION IN AN UNDERGROUND COAL MINE REQUIRES EXTENSIVE WATERING AT THE LONGWALL

appears there have been cases of black lung going undiagnosed. “It looks like there are at least some of those cases, so the number of those we are unclear about at the present time,” he said. The Queensland review will involve at least two experts rechecking old x-ray lung screenings from long-term miners. “We want to look, in the first instance anyway, at the longer term miners as this is the group where, if there is a problem, it will be most apparent,” Sim said. “There will be some hundreds of the existing x-rays that will be looked at. It might be four or five hundred, it might be more, but it just depends on how many of those are available, and how many we have the x-ray reports for that we can compare with.” The report from the review was expected to be released mid-year, however Sim said he wanted to make recommendations about changes to the health program before then, with the committee ready to release interim findings within the first quarter 2016.

Speaking with Australian Mining in January, Sims said he thought it was important to highlight that it appeared there was a failure by employers to correctly fill out work history information. “One of the limitations in the current system is there is a section in the medical form, which is meant to be filled in by the employer, which tells about the kind of work being done by the worker,” he said. “There is a box on the forms for what’s called the ‘Similar Exposure Group’, the classification SEG, and a lot of the time that’s not filled in properly. “So it really gives the people doing these medicals and x-rays little information about the type of exposure that people are having. “It is really important, useful information, so we would certainly be encouraging the mining companies and people responsible for organising the medicals to ensure that information is filled in, because it really helps doctors down the track to detect and in-

terpret anything they might find that is abnormal on the scans. “It really is critical information… it gives the people doing the medical a better idea of the likelihood of risk, and if there is an abnormality this impacts on the likelihood of a referral. Sim said workers who are worried about the state of their lung health should be observant of symptoms such as shortness of breath, coughing, and possibly chest pain. “Shortness of breath is one of the first symptoms, which is not an uncommon symptom, a lot of people get that as they get a bit older, so there are other things that need to be ruled out in that case,” he said. Last month state mines minister Dr Anthony Lynham said inspectors were working closely with all of Queenland’s 12 coal mines to examine coal dust issues. “Eight mines over the past 12 months have been directed to either improve monitoring or bring respirable dust levels back into compliance,” he said. AUSTRALIANMINING

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The minister said one of the mines was exceeding dust limits, but refused to reveal which mine because it would be “inappropriate” because the mine might already be in compliance with acceptable dust levels, and because workers were wearing respirators. Minister Lynham said he had written to Federal Resources minister Josh Frydenberg to raise the issue on the agenda for the na-

PNEUMOCONIOSIS, SIMILAR TO SILICOSIS, IS A RESTRICTIVE LUNG DISEASE CAUSED BY INHALATION AND LACERATING BUILD-UP OF FINE PARTICULATE MATTER IN THE LUNGS

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COAL

tional council of mining ministers. He also welcomed action by the ANZ College of Radiologists’ in compiling a register of radiologists who can report to an International Labor Organisation (ILO) classification of radiographs of pneumoconiosis. “Coal mine operators have offered their workers new chest Xrays and specialist analysis since this issue emerged,” he said. “I encourage any past coal miner with a concern to discuss it with their general practitioner.” CFMEU Queensland mining division president Steve Smyth and industry health and safety representative Jason Hill have joined the review committee as stakeholders, voicing their concerns that the health system has failed coal mine workers. “The good thing is that we know we’ve got a problem now,” Smyth said. “They acknowledge and accept that a lot of work has got to be done to review the respiratory aspects of the health scheme. “I think industry is accepting of that but from the unions’ perspective, I don’t think we ever really eradicated black lung, we just stopped looking for it.” Smyth has raised issue with the possibility that Australian radiographers, while qualified to read x-rays, are not correctly accredited as competent to review and recognise early stage coal miner’s pneumoconiosis. “There are set standards globally that health professionals need to be trained to a certain level of competency according to the International Labour Organisation,” Smyth said. “The standard for identifying pneumoconiosis is the B-reader standard from the National Institute for Occupational Safety and Health in the US. “Unfortunately since the late 70s the US had about 70,000 people die from pneumoconiosis, about 2000 cases every year, so they’ve established the standard against the ILO, and the standard is very high because the accreditation has to be retested every four years. “We certainly have trained and qualified radiologists here who can read x-rays, we don’t dispute that at all, but we don’t have people accredited to read these X-rays to a B-Reader standard,” he said. Smyth said that the biggest difference between Australia and the US was that B-readers in the

US dealt with cases of black lung on a regular basis, and were more experienced and better qualified to identify the disease. “That has been proven by the number of cases that have all been confirmed in the United States [after Australian X-rays were sent there] or have been confirmed by a lung biopsy, which is a very invasive procedure,” he said. “It’s a terrible state of affairs when here in Queensland in the 21st century we don’t have qualified people that can read these X-rays, it’s a disease that has been around since the 18th and 19th centuries.” Professor Malcom Sim disagreed about the capabilities and training of Australian radiographers, suggesting the problem was more about the lack of context provided to radiographers. “We have very good radiology training in this country,” he said. “We have the Royal Australian and New Zealand College of Radiologists, which has a four year training program with difficult assessments and exams…there’s not a problem in this country with radiologists being able to read x-rays. “What’s become apparent to me is they are not being given the information in many cases, that this person is a mine worker, that it’s part of a screening program, and when you’re looking at an x-ray from a diagnostic point of view, there may be minor changes that you think are not clinically significant, but in terms screening and detection of a particular disease, then you may report in a different way.” Sim said he had spoken with the incoming president of the college of radiologists and reached an understanding that they would work together to tighten up the system and ensure that diagnosis was done in the right context. Sim said the review would look at a range of issues to improve the current system, including quality control of the respiratory function test, or spirometry. “For many of these respiratory conditions it’s the one function test that can indicate the first sign of a problem, not necessarily at x-ray.” Sim also stressed that the level of concern from minister Lynham and those in his department showed their commitment to solving the issue.

“We have set up a reference group of all stakeholders, including two companies from the industry, the Chief Health Officer from Queensland, she is very concerned about it as well, as well as the minister and his department as well. “One message that came through very strongly that people feel there has been some complacency about this, as it felt like it

forward to the recommendations. “The top priority is the health and safety of mine workers and the resources sector is committed to their protection,” he said. “Queensland coal mines have a rigorous and transparent system of compliance with standards for dust levels and industry will continue to work closely with the department to ensure compliance.” AM

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was something which had gone away, and I think that was right across the board, across all stakeholders, the companies, the trade unions, the medical practitioners and the government, and I think everybody has become very interested in it now.” Queensland Resources Council chief Michael Roche said the QRC supported a government review of the CMWHS, and looked

FEBRUARY 2016

20/01/16 2:15 PM

MINESITE VEHICLES

CAT RELEASE NEW MINING SHOVEL A NEW HYDRAULIC EXCAVATOR HAS BEEN LAUNCHED IN BOTH SHOVEL AND BACKHOE DESIGNS.

aterpillar has unveiled a new hydraulic mining shovel. The Cat 6015B hydraulic shovel builds upon the former Cat 5011B shovel, and provides greater tonnage removals at a more productive rate. The 100 tonne machine features a large standard bucket and a payload capacity of 14.6 tonnes, “this design translates to fast cycles and a pass match advantage over leading standard-equipped shovels in its class when loading trucks of 55, 65 and 90 tonne capacities.” It comes with a single Cat C27 ACERT engine that provides 606kW of rate power. The large, 8.1-cubic-meter standard bucket, outfitted with Cat C70 hammerless GET, further boosts production capability. With the standard bucket, the 6015B is optimised to fill a Cat 773 truck in four passes, a 775 in five

passes, and a 777 in seven passes. The machine has a boom float feature that regenerates book oil for reduced engine demand, an oil cooling system that is independent of engine cooling, and is capable of regeneration of swing energy via its closed-loop swing system, all of which add to greater overall fuel efficiency. Designed with Cat’s automatic

flow proportioning technology, it has more efficient hydraulic pump utilisation, reduced energy loss, and increased fuel savings. “Exclusive Cat Proportional Priority Pressure Compensating technology ensures that hydraulic flow is proportional, according to demands, so individual functions—boom, stick, and bucket—are automatically

HAS A PAYLOAD CAPACITY 14.6 TONNES

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prioritised during simultaneous operations,” Cat added. This aids smooth, efficient operation and controllability. Pressure and flow compensation deliver only as much flow as needed, the result of which is reduced heat build-up and component wear. The boom and stick utilise high strength steel and rugged castings that are joined and thermally stress relieved for optimum structural life and resistance to impact and wear in difficult digging conditions. Its box section design provides superior rigidity and strength, and heavy duty castings are used in high load areas to add exceptional strength and durability. A newly designed hydraulic filtration system has also been built into the machine, where a separate kidney loop provides continuous filtration and optimum oil cleanliness at all times for greater consistency in oil cleanliness. Safe movement around the machine has been a focus in de-

sign, with well engineered access and egress with walkways for safe movement around the machine and an optional 45-degree powered access stairway. Wire and hose guarding facilitate safe maintenance, and numerous and optimally positioned lights, mirrors, and E-stop buttons further improve safety. The operator cab offers large, wide windows, which provide excellent all-around visibility of the work environment, contributing to the operator’s situational awareness during digging, loading and travel. The cab is pressurised to keep dust out, while the climate control system is fully automatic which allowing for consistent in-cab temperature and operator comfort in any weather conditions. Like other Cat machinery, it features MineStar, VIMS and Product Link for improved productivity, maintenance and equipment management. It is currently only available in a backhoe configuration. AM

FEBRUARY 2016

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QUARRYING, CRUSHING & SCREENING

A SILVER LINER-ING AT A COPPER MINE SUB: A REDESIGN OF DISCHARGE CHUTES AT A COPPER MINE HAS RESULTED IN INCREASED SERVICE LIFE.

espite having the world’s sixth largest copper deposit, Compania Minera Dona Ines de Collahuasi is facing the same issues miners are facing the world over: that of ensuring future productivity and overall viability. As part of this process the operator instituted a new ‘preventive improvement process’, with the objective of detecting potential problems in advance to maximise performance and equipment availability. Compania Minera Dona Ines de Collahuasi contacted Metso as part of this improvement effort to manufacture and mount a new chute with four outputs for a 11’ by 11’ semi-autonomous grinding (SAG) mill. “Pleased with the good results and the fact that all deadlines were met without any accidents, Compania Minera Dona Ines de Collahuasi decided to order three more chutes for the pebble stage,” Metso said. “As a company we look for suppliers who can provide an integrated service that includes engineering, manufacturing, as well as assembly,” Manuel Vera,

Compania Minera Dona Ines de Collahuasi’s asset management and reliability manager, said. “Metso’s unique ability to offer an integrated solution was one of the key factors in the company’s decision to collaborate with them.” Metso’s integrated approach consisted of several phases, beginning with the gathering of field data about the existing chutes in operation. It turned out that the SAG mills needed improvement and that a liner change out was relatively challenging. Additionally, the chutes were unable to absorb the full impact of the falling ore. “All this added up to an insufficient flow, as evidenced by the large amounts of ore in the passageways and around the transfer chute,” Metso said. “This excess material created premature wear in the conveyor belt and its support structure.” These findings were passed on to the design, where they resulted in proposed improvements that were then validated through HFS simulations. The design improvements aimed at reducing downtimes for liner change outs, increasing

overall availability as less time is needed to schedule maintenance. In addition, the new design included chute door systems for inspection and maintenance. The integrated solution also included carrying out the actual liner change out and the assembly of the new chutes, as well as a follow-up on the performance of the liners and a continuous improvement plan for the transfer chutes. Metso installed its extended wear life Trellex Poly-Cer solution, a modular system of ceramics and rubber, which provides AUSTRALIANMINING

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increase resistance to strong abrasives – even with high tonnages at high speeds. The new design of the chute liners makes maintenance easier by streamlining the change out of the anti-wear plates within each structure. “Thanks to Trellex Poly-Cer’s greater resistance, it is typically up to ten times more wear-resistant than its steel counterpart,” Metso said. The plates consist of ceramics (1400 HB) and rubber, providing both wear resistance and elastic-

THE NEW LINERS REDUCED THE NEED TO ENTER AND CHANGE OUT THE PLATES

ity to absorb impacts. As a result of these new designs, the service life of the chutes at Compania Minera Dona Ines de Collahuasi mine has increased. “The original design required maintenance every 20 days or so,” Vera said. “But now the interval is longer, and we know that optimisation of this can continue.” AM

FEBRUARY 2016

20/01/16 1:59 PM

QUARRYING, CRUSHING & SCREENING

CUTTING CONVEYOR CHUTE BUILDUP CRUSHER DISCHARGE CHUTES ARE NOW CUTTING TACKY CONVEYOR BUILDUP

ew dribble chutes have been launched to prevent buildup in conveyor discharge chutes such as those found on crushers. Martin, a global bulk materials handling business, has developed a new solution to prevent carryback released by secondary conveyor belt conveyors from sticking to the rear slope of the discharge chute. Typically, if left to build up, material can compress on secondary cleaners and deposit carryback on the return side of the belt, fouling and causing accelerated wear on idlers and pulleys, as well as mistracking and belt slippage. This not only caused a productivity issue, but also created a safety one, as it often required workers to reach into – or even enter – the chute to clear the blockage. Martin has created a vibrating dribble chute which uses material disruption to cause tacky sludge and fines to fall from the chute wall and back into the main discharge flow. “By addressing these issues, operators can experience a reduction in maintenance house, equipment replacement, and downtime, lowering the overall cost of operation,” Martin stated. It was developed after engi-

neers noted that majority of the buildup released by secondary cleaners collected at the rear of the chute mouth, where a sloped surface could trap carryback. “We discovered this could happen with nearly every discharge chute conveying adherent material,” Martin Engineering product engineer Dan Marshall said. “In some cases, even chutes treated with a low friction coating can experience buildup,” he said, “it’s only with the persistent disruption from vibration that we found materials flowed consistently.” The equipment itself comprises three parts, a low friction polyurethane dribble sheet, a steel mounting bracket, and a powerful vibrator, while the machine’s mechanical disruption combined with the slick surface prevents sticky material from adhering to the conveyor, ultimately feeding it back into the main discharge flow. When the unit is mounted onto pre-existing chute work, it also often extends the rear configuration closer to the belt, increasing the overall amount of material captured and further reducing spillage. The dribble chute is also designed for easy installation, with operators creating a slot in the rear sloped wall top accommodate a steel hook bracket that secures the entire unit to the chute.

Lined with a soft thick rubber on the inside arch to protect the chute from structural abrasion caused by the equipment’s constant vibration, as a J-shaped bracket holds the dribble sheet secure with four bolts. Importantly, the equipment can be field modified to fit with the width and length of any chute with the necessary belt clearance. A thick rigid sheet of abrasion resistant ultra-high molecular weight polyethylene material is also installed in an elevated position parallel to the chute floor so the sheet can vibrate free. It is driven by an electric motor that can be as large as 230460 volts, three phase,50/60 Hz and runs as fast as 3450 RPM at a centrifugal force output of 7484 kilograms. Its internal H class windings

are tripled dipped, shock resistant, and able to operate under sustained internal temperatures as high as 180 degrees Celsius. “We sought to design a simple and effective solution that only needs periodic pressure washing and is safer and more economical than the alternative: digging out equipment with shovels,” Marshall said.

THE DRIBBLE CHUTE IS SLASHING THE LEVELS OF CARRYBACK

“Less downtime and fewer maintenance hours results in a lower cost of operation, and over the long run, creates a safer workplace.” AM

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FEBRUARY 2016

SPACE

THE NEXT STEP IN THE SPACE MINING RACE AS THE US BRINGS IN LAWS OUTLINING THE LEGALITY OF MINING IN SPACE, COLE LATIMER SPEAKS TO THE HEAD OF ASTEROID MINER PLANETARY RESOURCES ABOUT THE FUTURE OF THE INDUSTRY.

ining in space seems like a futuristic, sci-fi dream, up there with hoverboards

and flying cars. Especially when you realise that humans have not physically been on another planetary body since we last landed on the moon – in 1972, an event which also saw the first (and last) time a geologist went to the moon. So why would we want to mine asteroids? “There are more natural resources on asteroids than have ever been mined in the history of the Earth,” American cosmologist Neil de Grasse Tyson explained. “So in 100 years all wars over limited resources are over because we have access to the unlimited resources in our back yard and that new back yard is our solar system.” Yet, is it really achievable? Humans have been to the moon, landed rovers on Mars, and last year – for the first time – we landed probes on the surface of a comet. Massive advances in communications and rocket technology, coupled with the leaps forward made in resources automation, are making the potential of space mining a reality.

But unlike the space race last century, this one is run mostly by private companies, not nations. Planetary Resources (PR) – which is backed by Google and has partnered with Virgin Galactic and Bechtel – and Deep Space Industries (DSI) are the frontrunners, having already launched a number of test vehicles, with PR launching its Arkyd 3 spacecraft in July from the International Space Station, and DSI working on processes for manufacturing in space. These two companies alone are breaking new ground in the field of space operations. But as is often the case, the capability runs well ahead of the laws governing it. While automated technology has become a mainstay in the resources industry, it was only recently that codes of practice were created to provide legal structures. However, the legality of who owns foreign bodies in space was always in question. With the signing of a new bill in the US – the US Commercial Space Launch Competiveness Act – which delineates ownership and the rights to mine asteroids and near earth objects (NEOs), at least for US citizens, the future of space mining has become that much more tangible

and less opaque. It follows on from the US creating the Space Act of 2015 delineates the process for obtaining rights to extract resources from asteroids and ownership of those resources, and also gives the fledging space mining industry close to a decade without regulatory oversights. Importantly, the bill reinforces that only companies or individuals, and not nation states, have rights to the materials obtained in outer space. However the creation of these new laws has been dubbed by some as a ‘who dares win’ philosophy when it comes to the rights of territory and objects in space, a senior lecture in international commercial law at the University of Kent, Gbenga Oduntan, explained that “the Moon Agreement (1979) has in effect forbidden states to conduct commercial mining on planets and asteroids until there is an international regime for such exploitation. While the US has refused to sign up to this, it is binding as customary international law”. “The new US act will also allow the private sector to make space innovations without regulatory oversight during an eight-year period and protect spaceflight participants from financial ruin. Surely, this will see AUSTRALIANMINING

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MANUFACTURING IN SPACE IS EXPECTED TO SUPPORT THE INDUSTRY’S DEVELOPMENT

private firms begin to incorporate the mining of asteroids into their investment plans. “Supporters argue that the US Space Act is a bold statement that finally sets private spaceflight free from the heavy regulation of the US government. The misdiagnosis begins here. Space exploration is a universal activity and therefore requires international regulation,” Oduntan said. “The act represents a fullfrontal attack on settled principles of space law which are based on two basic principles: the right of states to scientific exploration of outer space and its celestial bodies and the prevention of unilateral and unbridled commercial exploitation of outer-space resources. These principles are

found in agreements including the Outer Space Treaty of 1967 and the Moon Agreement of 1979,” he continued. “The US House Committee on Science, Space and Technology denies there is anything in the act which violates the US’s international obligations. According to this body, the right to extract and use resources from celestial bodies affirmed by State practice and by the US State Department in Congressional testimony and written correspondence. “Crucially, there is no specific reference to international law in this statement. Simply relying on US legislation and policy statements to justify the plans is obviously insufficient.”

FEBRUARY 2016

20/01/16 2:03 PM

Keep it Safe, Keep it Clean When conveyors shut down, core staff are often overwhelmed and maintenance of conveyor belt cleaners, skirts, impact beds and other conveyor accessories are often overlooked or service is performed by people who are not trained to service the equipment. Unless conveyor accessories perform at optimal levels, belt damage, carry-back and spillage can result.

ESS provides competency based technicians to speciﬁcally monitor and maintain Conveyor Belt Cleaning, Sealing and Support systems.

SPACEX IS ACCELERATING ITS PROGRAM FOR IDENTIFYING AND LAUNCHING ITS SPACE MINING VEHICLES

An international Space Station flight operations engineer and former FIFO miner, Andrea Boyd, also asked Australian Mining, “in what universe is it legally enforceable outside the USA?” However the head of the world’s leading asteroid miner, Planetary Resources’ CEO Chris Lewicki, believes that the new US laws set a precedent that will provide the industry a strong foundation from which to grow globally. “We’re very excited that this is a step we’ve taken forward, and [with the signing of this bill] we can proceed with confidence in developing technology for undertaking mining on asteroids,” Lewicki told Australian Mining “There are already a lot of international laws governing space, and the US laws were created in regards to these laws,” Lewicki explained. “The US is taking it another step forward by defining specifics in its laws, and I expect other countries to follow suit. “[Laws governing space are needed as] we are moving faster than most people think.” This new privatised space race isn’t on the hunt for glory, like that of the Cold War, instead it is focused on the wealth of metals and minerals to be found in asteroids and other near earth objects. One asteroid, named 2012 DA14, which flew past earth a few years ago is believed to contain minerals worth around US$195 billion. The incredibly rare Helium-3, which is believed to be found in abundance on the moon, is valued at around US$90,000 per ounce. While mining in space may seem expensive, terrestrial mining isn’t cheap either. In 2013 Rio Tinto alone budgeted close to US$1 billion for exploration, while BHP slated US$1.047 billion. One of the major advantages of mining

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ESS technicians are able to inspect conditions and produce a condition report and maintenance plan that can be actioned by Owners, Contracting companies or ESS technicians in a manner that prioritizes the maintenance based on risk analysis

in space is that once you are in space it is cheaper to produce materials as opposed to facing the higher costs associated with lifting materials out of earth orbit. “The common argument is that it costs about US$20,000 per kilogram to launch to deep space from Earth, so if you can produce that kilogram in space for less than $20,000, you’re ahead,” director of the Australian Centre for Space Engineering Research, professor Andrew Dempster said. “In fact, SpaceX publishes its launch costs on its website; currently, for its Falcon 9, that figure is about US$12,600.” According to Lewicki, one of the major initial focuses will be water, but “water is expensive, it costs about US$850 million to send a tonne of it into space, so finding it in space will make it easier to transport and further build the industry”. Through mining asteroids and obtaining these materials in space, it will dramatically cut the cost of further space exploration, and in turn, colonisation. “The mining industry has enabled our population to live and thrive on earth, and as our population moves into space we need to find materials locally to support it, so when we’re in space we’re close to asteroids than earth, so we’re now creating the industry that is helping us to move into this future,” Lewicki explained. According to Gordon Roesler, who works for the Australian Centre for Space Engineering Research: “We have reached the point where the question is no longer: is the commercialisation of space possible?; rather: what is the path to return on investment?” Interplanetary and asteroid mining is fast becoming a reality, technologically, financially, and legally, and with new laws created in the US – which have no international power – the first real steps are being taken to progress humanity. AM

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FEBRUARY 2016

20/01/16 2:04 PM

MATERIALS HANDLING

FROM IRON TO THE DRAGLINE BEN HAGEMANN PUTS A NEW TWIST ON THE STORY OF ONE OF AMERICA’S LAST SURVIVING STEEL WIRE ROPE MANUFACTURERS.

hen it comes to productivity and progress, ingenuity is the backbone of the mining industry. Many will agree that mining activities have been the precursor to almost every significant technological development in our history. The period to which we attribute the most exponential growth in technology, the Industrial Revolution, owes everything to a few key inventions. The steam engine, the Bessemer Method and dynamite are often listed as the most important inventions of the modern age, but there is one other without which these things would not have had such remarkable impact on our lives. At least, that’s what occurred to me after I was invited to take a tour of the 120-year old Wirerope Works factory site in Williamsport, Pennsylvania. As a rigger I had always appreciated the importance of steel wire rope to mining and to civil engineering, but despite this seemingly simple invention being part of every single day of my life working in the mining industry, I knew very little about how it is made, and even less about its history. They say you should never visit the sausage factory, and that may be true, but the wilfully ignorant are not to be trusted, and steel wire rope is a very special type of sausage… Flexible steel wire rope has been one of the mainstays of heavy industry for more than a hundred years. Whether you want to lash down scaff planks, carry out lifting and cranage, use draglines for surface mining, or even pull down a massive statue of Saddam Hussein, wire rope has thousands of applications. Based in Lycoming County in Pennsylvania, Wirerope Works (WRW) began its life as the Morrison Patent Wire Rope Company in 1886. The original

mill was built upstream on the banks of the Susquehanna River to service the softwood logging industry, however regular flooding led to the relocation and inevitable expansion of the factory in the town of Williamsport. The design and manufacture of steel wire rope was no longer in its infancy at that stage. The first practical use of steel rope in 1834 was credited to a German mining official named Wilhelm August Julius Albert, who worked at the Clausthal silver mines in Saxony. Up until that point, all mining haulage was done with hemp fibre rope or chains. In the humid, damp conditions of an underground mine, moisture would cause the ropes to perish from rot, the gradual deterioration reducing their load bearing capacity, so they required frequent replacement. Chains at that time were no better in terms of safety, as the Bessemer process for making steel was not invented until 1855. Iron chains lacked elasticity, but were also metallurgically inconsistent and therefore, unreliable. A single weak link could make a chain prone to catastrophic failure without warning, and there was no way of knowing which might be the weakest. That first incarnation of modern steel wire rope was extremely effective for heavy haulage, and much more reliable than rope or chain. Albert Rope, as it came to be known, was a simple construction of three 3.5mm gauge wrought-iron wires, handwound into strands, with three or four of those strands wound into a single rope. However, Albert rope lacked the flexibility of rope or chain, meaning it couldn’t be drawn through a pulley sheave, and its use stopped in the 1850s. But the idea for wire rope had already caught on in England, where thinner wires were woven around a fibre core, with six of

those strands woven around a central fibre core, resulting in a more flexible product. This design, as well as a mechanical system for its construction (called a strander), was patented by Robert Newall, who brought the new technology to America, and the boom-time economy of the California Gold Rush. However, it was in Pennsylvania where a German-born engineer and surveyor named John Roebling began to develop ropes which were entirely constructed of wire. Roebling used a 6/19 construction (6 strands; 19 wires per strand). A strand built of 19 wires of the same gauge resulted in a hexagonal profile, and desiring a round shape Roebling conceived of using three different gauges of wire to achieve that result. The effect of this was to reduce the space inside the rope, tightly packing the wires AUSTRALIANMINING

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WIREROPE WORKS IS NOT SHY OF SHOWING PRIDE, ESPECIALLY WHEN RELATING THE STORY OF HOW THEIR MILITARY SPEC TANK RETRIEVAL PRODUCT WAS USED TO TEAR DOWN THE SADDAM HUSSEIN STATUE IN BAGHDAD IN 2003 IMAGES: GETTY

together, which gave the rope greater stability under load. With massive demand for coal haulage in Pennsylvania, as well as cable car applications for public transportation, and most importantly civil engineering projects to service, Roebling set up a wire rope factory in 1849 in Trenton, New Jersey. But he wasn’t the first to invest in a factory like that: Other people had the same idea, and wire rope mills were starting to pop up around the United States. In only 14 years wire rope had gone from a hand-made experiment in a German silver mine, to a globally recognised tool of industry

with high demand for scaled-up production. If Roebling had any hubris about cashing in on this amazing new invention, you could be forgiven for thinking it was a little dampened when his arm and shoulder were horrifically mangled in an accident with one of his stranding machines. But it would seem that Roebling’s interest in wire rope was not strictly for profit, however, as he had for some time harboured a bit of an obsession with sketching suspension bridges. He was a big fan of the expansionist philosophy of Manifest Destiny, and had been very keen on es-

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MATERIALS HANDLING

tablishing a utopian settlement called Germania (now the town of Saxonburg), where people like him trying to escape the brutal oppression of post-Prussian War Europe could be free to make sauerkraut and smoked pork products, unmolested by the authorities. As luck would have it, farming cabbages didn’t really agree with Roebling. He studied in Berlin under the best academics in engineering, architecture, bridge construction, and hydraulics that Germany had to offer. Roebling was a very gifted individual, recognised at a young age as he grew up in Mühlhausen in Saxony, only 100 kilometres from the silver mines of Clausthal. But Roebling recovered from his injuries, his factory continued to produce wire rope, and he designed and built a number of suspension bridges using his own product right up until he began design work for the Brooklyn Bridge. Unfortunately, Roebling managed to get his foot crushed by a ferry while standing on a dock trying to work out where the bridge should go. He died of tetanus 24 days later, but his son Washington went on to complete the Brooklyn Bridge project, while his son Charles would invent an 80 tonne wire rope machine. By 1886, the year the Brooklyn Bridge was opened, a venture like setting up a wire rope factory in Pennsylvania was not at all a bad way to invest $100,000 (probably about $US3 million today), and that is precisely what three businessmen from Williamsport did. Morrison Patent was changed to the Williamsport Wire Rope Company in 1888, manufacturing steel and galvanised wire rope “from one-eighth of an inch to two and one-half inches in diameter, and any length up to two miles in one continuous piece”, according to an 1892 history of Lycoming County. The move to the Williamsport site set the company up for a period of charged innovation and growth, fed by the demand for haulage in Lycoming County’s massive lumber and coal mining industries. Williamsport was known as the “Lumber Capital of the World” and laid claim to having more millionaire residents per capita than anywhere else in the world. The lumber boom in Lycoming peaked in 1891, and the

neighbouring Indiana County saw a coal-mining boom start in 1900, so the industrial economy was perfect for the growth of the Williamsport rope mill. A new wire mill was built in 1916, and the current rope mill was built in 1928, which was pretty poor timing considering the Great Depression would start the next year. By the time the Great Depression ended in 1939, the company was ripe for purchase by Bethlehem Steel, which renamed it the Bethlehem Steel Wire Rope division. By 2004, the Williamsport site had been bought and sold a number of times, changing company names like a serial divorcee, acquiring assets from other defunct companies such as Roebling Wire Rope (the company started by John Roebling in 1849) but always keeping the Bethlehem Wire Rope brand, which became synonymous with top quality steel cable, and is still proudly emblazoned on their rope spools to this day. In 2002 Williamsport Wirerope Works bought out the bankrupt Paulsen Wire Rope, a rope mill located in nearby Sunbury, and continued to produce under the Paulsen name. But by 2003 the company was also in financial strife, and the management were looking for another buyer who could bail out the company and keep the 600,000 square foot Bethlehem factory running. The US wire rope manufacturing industry had changed dramatically over the course of 100 years. From an exciting new industry that would allow explosive growth in the productivity of coal mining through the development of dragline surface mining operations in the early 20th century, as well as enabling some of the biggest civil engineering projects ever seen since the Pyramids of Giza, the US stable of 27 wire rope companies had been consolidated down to just three names: Bridon, WireCo, and Bethlehem. Bridon is another Pennsylvania company, based 100 kilometres away in Wilkes-Barre. Unlike Williamsport which remained a local manufacturer, Bridon expanded rapidly, acquiring other wire rope companies and branching out across the world, developing into a massive, multinational conglomerate, as did WireCo Worldgroup. With two global entities for

domestic competition, Bethlehem also faced increasing pressure from low-cost offshore wire rope producers in countries like China, Korea and India. Present executive vice-president Lamar J Richards remembers circumstances were looking grim for the Bethlehem brand and for the local employees, with a bid for takeover by Pennsylvania, USA and world market rival WireCo Worldgroup in late 2003. “Instructions from the ownership at the time were, because we were about to be bought by a competitor we really weren’t going to be making wire, so we had to get rid of all the raw material, the rod, our starting point for the wire,” he said. “Being the industrial little guys that we are, we removed several thousand tonnes of rod,

And it was in this environment that local businessman Tom Saltsgiver, owner of a successful modular housing manufacturing plant, started to consider the prospect of buying an ailing historic business of significant value to the local economy, and decided to accept an invitation to take a tour of the Bethlehem plant. I didn’t know any of those things when I found myself standing there, in the foyer of the single largest wire rope manufacturing facility in North America on a muggy Thursday morning, fighting off a particularly vicious head cold and oblivious to the fact that our tour bus had dropped us off and left, with my camera bag still on board...

…TO BE CONTINUED IN THE MARCH ISSUE OF AUSTRALIAN MINING

BETHLEHEM WIRE ROPE BRANDING CONCEPT ART, CIRCA 1950S

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so at the end of 2003 we only had one pack, two tonnes left. We would normally have 2000 tonnes in stock. “We were later informed by our assessor that the deal probably wasn’t going to go through, and then our sole rod supplier went out of business in November. We didn’t really have any credence with any other suppliers, and availability was extremely tight, there was a rod shortage. “So in that environment, there was an effort by local people to see if they could put together a coalition to buy the company and keep the manufacturing here in Williamsport. The concern was that with a competitor buying we would ultimately be folded up and moved.”

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IN FOCUS

A NEW MOVE IN NORTH KOREAN MINING?

A MASSIVE DISCOVERY IN NORTH KOREA OF A RARE EARTH ‘SUPER DEPOSIT’ MAY MEAN A REVIVAL OF MINING IN THE COUNTRY. COLE LATIMER WRITES.

s the ‘Hermit Kingdom’ coming out of its shell? North Korea is one of the last mysterious nations on earth, with its tightly shut borders disrupting the flow of information in and out, making it an enigma in the current era of information overload. While its secrecy gives the impression of a country caught in a constant cycle of pushes towards militarisation or reconciliation with South Korea , behind the veil it appears the nation is somewhat changing its tack. The last communist outpost is reportedly making moves towards trying to develop an effective economy, and mining will play a major role in this shift. Historically the closed country has held outsiders at bay as it tried to develop its internal industry with some help from its neighbours and occasional allies Russia and China but new

economic policies may help aid the nation. So is this an about-face, or simply a focus on quick cash generation? North Korea’s government has repeatedly stated its goal of creating ‘a strong a prosperous nation’. Part of this is its adoption of new economic policies, and a shift away from the completely militarised focus to only a predominately militarised focus coupled with economic growth and resources development. According to international relations magazine Griffith Asia Quarterly, “North Korea’s era of ‘muddling through’ appears to be over under the leadership of Kim Jong Un.” “Rightly or wrongly,” Dr. Ben Habib, a professor of international relations at La Trobe University, explained in his paper in the Griffith Asia Quarterly, “his government has noticeably quick-

ened the pace of decisive policy decision-making in pursuit of a simultaneous nuclear security and economic development program.” MOVING INTO MINING Mining presents a unique opportunity to stimulate North Korea’s economy. AUSTRALIANMINING

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Unlike many of the economic avenues the nation has travelled down – drugs, arms, statues, and outsourcing its own citizens as a cheap labour force – tourism and mining are legally providing a development path unaffected by the existing UN sanctions. According to Pacific Century

THE PROJECT IS LOCATED NEAR CHINA AND THE CAPITAL

Rare Earth Minerals (PCRE), a joint venture between SRE Minerals and The DPRK’s Korea Natural Resources Trading Com-

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IN FOCUS

pany, “It is a common misconception that mining in countries which are the subject of UN sanctions is prohibited, [however] nothing could be further from the truth; the UN sanctions with regards to the DPRK are targeted to prohibit the development of specific military technology and weapons.” “There are currently 12 different countries, including DPRK, that are subject to UN Resolutions, all of which generate significant revenue from the extraction of minerals (i.e. DRC revenues from mining in 2012 were in excess of US$1.8 billion),” PCRE stated. Habib outlined how these open channels, outside of UN sanctions, are providing a course for growth for North Korea. “The resources sector has been the first legitimate sector of the economy to take off in the Songun (North Korea’s military first policy) era,” Habib said. “North Korea is coming up, and since 2009 we’ve seen a spike in the country’s income from natural resources, according to data from the Bank of Korea,” Habib told Australian Mining. According to figures from the Nautilus Institute, the combined value of these resources is in the trillions of dollars – US$6 trillion in rare earth minerals alone - and the nation is actively working to making mining feasible. Strangely enough, the nation is even doing what Australia and even Russia can’t, increasing its coal sales to China, and was the only country to actually boost its shipment levels to the nation as it provides high quality anthracite coal. “North Korea is the new No. 1 exporter of anthracite,” Georgi Slavov, head of basic materials research in London at Marex Spectron, told Bloomberg earlier this year. This is little surprise as North Korea has high levels of quality coal, as well as iron ore, and the second largest reserves of magnesite, which helped precipitate a growth in Chinese investment in the country’s mining sector. “The timing of this acceleration coincides with a renewed focus from the North Korean government in developing the mining sector,” Habib said. “According to Bank of Korea data, for 2011 the mining sector grew 0.9 per cent,” he added, a significant amount for the nation. The fact that it sits with geo-

graphically right in the middle of around a third of the world’s current GDP (thanks to its close proximity to Russia, China, South Korea, and Japan) has created a strong potential growth environment, Dr. Louis Schurmann, director and principal economic geologist at Chamoni Geoconsultants and director of operations for Pacific Century and the geologist who proved up the resource, explained to Australian Mining. However the country has also been hit by mining’s more recent decline. “While increased rents from resource extraction are providing the North Korean government with a valuable foreign currency revenue stream, this export is itself exposed to fluctuations in international commodity prices and could even retard the revival of the country’s manufacturing sector through the resource curse,” the Griffith Asia Quarterly stated. Added to this is the belief by current North Korean leader Kim Jong-Un that its resources are being sold off too cheaply, predominately to China and Russia, as it pushes for higher prices, which may have a negative backlash in a market that is already oversupplied. A MEGA-MINE? But it is not just coal and iron ore keeping the nation afloat. Rare earths are also proving a valuable commodity for the nation, and with the reported discovery of what may be the largest single deposit in the world. In late 2013 Pacific Century Rare Earth Minerals (PCRE) reportedly uncovered a rare earth deposit, dubbed the Jongju ‘Super Target’. Initially uncovered by North Korean geologists, who carried out years of drilling on site, early reports stated it had the potential of containing six times the reserves of China (which currently controls more than 90 per cent of the world’s resources) and will retransform the Global Rare Earth industry in the near future”. PCRE went on to state that it could support a ‘super mine’ status for more than 100 years. Early drilling on the deposit showed grades of 664.9 Mt at > 9.00% TREO, 634.0 Mt a > 5.70 ≤ 9.00% TREO, 2.077 Bt at > 3.97 ≤ 5.70% TREO, 340.4 Mt @ >1.35 ≤ 3.97% TREO, and 2.339 Bt at ≤ 1.35% TREO are present in

This rare earth project would not be the first in the country, although it would be the largest by far. According research from the Korea International Trade Association, North Korea last year exported 62,662 kilograms worth of rare earth elements, valued at US$1.8 million, to China.

THE DEPOSIT IS BELIEVED TO HOLD SIX BILLION TONNES OF RARE EARTH MINERALS

the Jongju REE Target (a total of 216.2 Mt TREO). This translates into a potential mineralisation of around six billion tonnes. The deposit is within a complex setting of the North China Craton and its eastern extension working into the North Korean peninsula, early Proterozoic alkaline intrusions were responsible for the creation of the Sakju complexes and the Jongju complex. The Jongju complex itself consists of six elongated multiple intrusions set within the country AUSTRALIANMINING

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rock, and in close proximity to fenitised country rock. According to PCRE these mineralised zones are characterised as multiple, strike orientated zones, continuous in depth and marked as finer-grained rocks with colour changing from dark green to brown. The main constituents are recrystallised, equigranular feldspar, clinopyroxene, alkaliamphibole, mica, magnetite, zircon and ilmenite, but with a pervasive “overgrown” nature,” Schurmann explained.

COURTING CONTROVERSY Schurmann told Australian Mining there has been more than 35,100 metres of trenching, several drilling campaigns, and a 57,00 tonne bulk sample study by geologists before he was brought on board to verify the sampling. “SRE/PCRE has a duty of care to ensure that historical information and data is verified, and that additional and new data is generated, compiled and presented under strict JORC 2012 guidelines,” he explained. Yet many have dismissed the potential deposit, from South Korean think-tanks through to potential investors looking to step into the project for cheap. A group of think-tanks in South Korea have rejected the legitimacy of the deposit. “The numbers are not backed up with any solid data, it is nothing but a list of what they have under the ground. [Schurmann] has absolutely no credibility. Whatever he says, I take it as hoax,” Choi Kyung-soo, a senior researcher at the North Korea Resource Institute has stated “We do not have any data regarding this issue, and the article does not really give us the solid proof about amount of DPRK’s rare minerals nor how profitable it is,” a spokesperson from the Information Systems for Resource of North Korea added. Choi went on to say the country is simply focused on attracting foreign investment with over-inflated resource estimates, a belief in part backed by the recent Social Change and Business Opportunities in North Korea conference, which stated that “the number of semi-private businesses in North Korea is growing and the regime has been calling for foreign investments”. Schurmann has rejected these claims refuting the deposits validity wholesale, adding that potential foreign partners have worked to downplay much of the value of the deposit, and overemphasizing problems in both the figures and marketing in

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IN FOCUS

order to wrestle greater control of the deposit. After viewing the numbers Schurmann had no doubt of the potential of the deposit. “I studied the data,” he stated, “and with no claim or political role I called it what it is”. “I’ve been on site, I’ve seen the drill cores with my own eyes, and I’ve done the work.” Australia also played a part in proving up the validity of the resource, with Schurmann sending samples back to Australia for independent analysis. “The information – after rock and concentrate samples were analysed in Australia – provided sufficient evidence to acknowledge the existence of such [a large] rare earths deposit. Habib was less black and white on its existence. “From what I’ve heard, much of the deposit is just extrapolating data from work done on the Chinese side, but it is likely that the same rock formation exists across the border,” he told Australian Mining. “They are working on assuring the deposits are as large as they say, but we’ll have to wait and see.” PROVING UP THE RESOURCE So who is the geologist who proved up this enormous resource? Louis Schurmann began his work on the site in 2011, after he was approached by SRE to examine several mineral occurrences and provide an outside brief. He has more than 25 years of experience in South Africa, where, in his words he was “always searching for economic potential in places where others would not go or were ignoring”. “The focus was also that of ‘new’ or ‘fashion to come’ commodities like rare earth elements and associated critical minerals and metals.” From 1987 through to 1991 he worked on platinum group metals in South Africa, finishing his Masters on the upper critical zone of the Bushveld complex, in the Rustenberg area, completing a PhD on alkaline rocks and carbonatites in 1999. Schurmann was also part of the early exploration work which led to the discovery of the Kamoa copper project in the Democratic Republic of the Congo (DRC) , which is the world’s largest, undeveloped high grade copper discovery, demonstrating his abil-

ity to uncover mega-deposits. His work on the Jongju project is not the only work he has carried out in North Korea. He worked for EHG Corporation – later Bunuru Corporation – carrying out field investigations of the Kumwha polymetallic deposits, and is also a non-executive director of the firm. His is also a Fellow of the Australasian Institute of Mining and Metallurgy. GETTING OFF THE GROUND However, it is not always smooth sailing for foreign investors. Despite rolling out 20 new economic development zones in 2013-14, bringing the total to 25, in a bid to woo foreign investors the economic initiative remains in its early stages. According to the Nautilus Institute’s paper by the aforementioned Choi Kyung-Soo’on North Korea’s mining industry, “Foreign companies have participated in about 25 mining projects in North Korea. China, Japan, the United States, and the United Kingdom have participated in North Korean mining projects.” “Chinese companies, in particular, have been aggressively participating in North Korean mineral development since 2003.

At present, China has participated in about 20 of these mining projects [with two thirds of all of the 300+ foreign investments in the country coming from China]. “It is very difficult for foreign investors to participate in North Korean mineral development operations, as most foreign investors want to establish their own companies and operate the mines independently. Therefore, North Korea’s legal provisions, sovereign risk, and antiquated infrastructure are barriers to foreign investment,” he said. “Firm political control remains the government’s overriding concern, which likely will inhibit changes to North Korea’s current economic system,” the CIA has stated in its research on the nation. This was demonstrated in 2012, with the calamity that was China’s Xiyang Group’s foray into the North Korean resources space. Its US$40 million investment into the region was reportedly a ‘nightmare’ event, according to the miner. A collapsed joint venture between it and the North Korean government devolved into accusations of North Koreans smashing the windows of Chinese

and associated acts and regulations are basic but efficient and practical. “The deals and agreements are fair with several points within supporting and promoting ‘good deals’ for all parties, there is also will at all levels to make these projects work to the benefit of everyone. “On a daily basis [it’s] great; the project areas are pristine [although] bird life is limited, but wild animals roam the mountains and reports of snow tigers are general. The winter months are cold but we get around that. Logistics like food, water, accommodation and transport are good. Pretty much like “glamping”. “My work and my involvement in any part of the world is apolitical…I do not get involved in any politics and will not even have an opinion, although what we do does have a positive effect.” Schurmann added: “NK is not what the international news agencies tell the rest of the world. Obviously there are problems, but I see them fading away in time as NK is changing rapidly for the good of the region. “ And mining may play that role in facilitating positive change for the country, and the region. AM

DESPITE A LACK OF INFRASTRUCTURE, LOGISTICS ARE REPORTEDLY NOT AN ISSUE

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workers in the country, stealing millions of Chinese currency, and widespread corruption. North Korea levelled its own accusations at the miner, stating that it failed to deliver around half the promised investment, and that laws were introduced to protect foreign workers. However, the country has reportedly attempted to move on since this time. “North Korea’s mining policies are attempting to increase mine production, explore new mineral resources, and modernize its mining technology,” Choi explained. “However, it is difficult for the country to develop its mines due to the shortage of equipment.” Schurmann gave his recent experience in North Korea, outlining a changing nation in terms of operating environment. “PCRE has not had any problem,” he said. “We have had access to mobile phones (local and international), courier services and the internet.” He also dismissed some of the perceived hurdles in operating in the country. “The legal environment (i.e. agreements) is to the point and in English; their mining laws

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PROSPECT AWARDS

THE PROSPECT AWARDS AUSTRALIAN MINING PREPARES TO RECOGNISE INNOVATION AND EXCELLENCE IN MINING AGAIN.

he Australian Mining Prospect Awards are launching again, and this time it’s our ‘lucky’ 13th Annual night. Year after year Australian Mining seeks out the best technology, innovations, individuals and companies in the resources industry in an effort to recognise and reward their achievements over the last 12 months. Whether it is better production rates, higher efficiencies, clever design, smarter technology, or simply someone who comes in each and every day and gives 110 per cent, the Prospect Awards are a forum to highlight the achievements that have been made. And in the current mining and industrial climate, highlighting the successes being made across mining is crucial to demonstrate that it is still a sector which – despite the volatile commodities and high pressure markets – is still one that is forging ahead to become a better industry. At last year’s event, which saw protests outside from various environmental and activist groups, hundreds gathered to celebrate an industry which has been doing it tough. Innovation in safety; smarter ways of making mines more efficient and productive; and instituting better work processes

were all highlighted. Since our awards in October last year things have become even more stressed, meaning now, more than ever before, the industry needs to take a step back and celebrate their many achievements. With this in mind Australian Mining is opening nominations again for these awards. So nominate someone you know who is making mining a better industry, and recognise those innovators today. AM THE AWARDS RAN ACROSS 15 CATEGORIES

THE EVENING SAW HUNDREDS OF PEOPLE GATHER TO CELEBRATE MINING

UNIQUE TECHNOLOGY, INDIVIDUALS, AND MINING PROGRAMS WERE IN FOCUS ON THE NIGHT

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PRODUCT SHOWCASE

COMPACT DRILL

SEALED GEAR PUMPS

Atlas Copco has released its new radio remote control drill rig, the FlexiROC T20 R (Mark II). “In response to requests from our customers around the world, upgrades have now been made making the new FlexiROC T20 R the best drill rig in its class of compact, radio remote controlled drill rigs,” global product manager Marcus Leü said. The machine features a completely new rig control system comprising electrical and hydraulic components, while remote control capabilities have also been installed. Atlas Copco’s rig builds from proven technology in its FlexiROC T25 R & T30 R drills. The drill features a new cylinder feed (BMH 2000) in three different lengths, reinforced drill

EnviroGear Pumps has launched its new G Series internal gear pumps. The G Series pumps (formerly known as Maag Industrial) are designed with only two moving parts and operate well in both HAS POSITIVE NON-PULSATING FLOW directions while providing a positive, non-pulsating flow. Its design provides multiple inlet and outlet positioning, a single-end clearance adjustment, and east drive-end access for greater ease of maintenance and adjustability. The G Series pumps are available in both cast iron and stainless steel, and “are extremely reliable and durable for challenging industrial applications involving both thin and highly viscous liquids up to 431,000 cST,” EnviroGear said. According to the company these pumps are interchangeable with 95 per cent of the internal gear pumps on the market, allowing for easy equipment upgrades with no piping changes, driver changes, coupling changes, flow rate ranges, or baseplate changes. • EnviroGear Pumps www.psgdover.com

HAS REMOTE CONTROL CAPABILITY

steel support, new hose routing with three bulk heads, a front facing feed holder, and improved service and maintenance access. “The new FlexiROC T20 R has now been equipped with the COP 1435 rock drill,” Atlas Copco added. “It has almost 30 per cent

higher impact energy and 30 per cent higher rotation torque than the previous model. With an impact power of 14 kW together with smooth cylinder feed action, the drilling performance has increased by up to 40 per cent.” • Atlas Copco www.atlascopco.com

RAISE BORING PILOT BITS

MOBILE JAW CRUSHER

Sandvik has developed a new range of bits for drilling raise boring pilot holes. Dubbed the RR880, the focus of its new design has been on improving gage protection in order to overcome the issues associated with gage wear and resulting bit change outs. “Most raise boring applications begin with the drilling of a pilot hole; the general length of a pilot hole varies from 30 - 1000 meters, with standard drill pipes of 1.5 meter length,” Sandvik explained. “The time and cost involved in pulling the pipes out from a deep pilot hole is significant and the service life of pilot bits is therefore crucial when it comes to keeping down cost and time for any raise boring project.” The RR880 bits provide increased durability and hole straightening, with up to 35 per cent longer bit life than its predecessor, slash-

IROCK has launched new mobile jaw crushers for mining applications. The new TJ-3046 Tracked Jaw Crusher has been designed for medium scale mining and quarrying operations, and features a 2.33 cubic metre feeder as well as grizzly pre-screening. Its feeder drive features a long control system for continuous, uninterrupted feeding, while an optional level sensor can be affixed to the jaw to control the feed rate to the crusher. The crusher itself has an inlet opening of 1.17 metres by 76 centimetres, and is built with a hydraulic wedge adjustment to provide operators greater product sizing control, down to 5 centimetres. IROCK’s TJ-3046 high swing jaw has an aggressive crushing action which speeds up material movement into the crushing chamber. Its 1.22 metres crusher discharge conveyor can stockpile up to 3.5 metres. A dirt conveyor comes as standard on the 50 tonne machine. The jaw crusher also features remote control capabilities, with a wireless remote capacity allowing operators to tram the tracked machine around site, while its hydraulic folding sides provide faster installation and set-up at new jobs. An operator friendly electronic crusher control system with touch screen HMI has been designed with ease of use in mind, and simplifies the crushing, service, and maintenance procedures. Powered by a 260kW Cat C-9 ACERT Tier 3 engine, the crusher has an output rate of 445 tonnes per hour, while its efficient direct drive system results in minimal fuel consumption levels. • IROCK www.irockcrushers.com

IMPROVES GAGE PROTECTION

ing the time and cost of changing tools, Sandvik claims. “With the new Sandvik RR880 pilot bits, you can drill longer between bit changes. Fewer bit changes means shorter project times and increased profit at the end of the day”, Göran Strand, product line manager for Sandvik Mining, said. • Sandvik www.sandvik.com

‘SEVERE DUTY’ BUCKETS DEVELOPED Doosan has developed a new range of severe duty buckets for crawler excavators. The buckets are designed for operators who need buckets that can work in abrasive materials in heavy digging and loading applications. The buckets are approved for use with Doosan’s DX140LC-5 through to its DX530LC-5 crawler excavators. They are available in both pin-on and wedge-lock style. According to Doosan, its severe duty buckets are available in sizes ranging from 45

centimetres to 1.82 metres for larger Doosan excavators. The buckets have been built with abrasive resistant materials for increased protection when digging in loose rocks, open pit, or quarry operations, with the side cutters, shell bottoms, side wear plates, and weld-on shroud also built from the similar material. Reinforcing gussets have been added to increase the strength of machine fitting joint on the bucket. Front wear pads have been included to provide extra pro-

AVAILABLE IN 1.82 M SIZES

tection from rocks and other materials. An abrasive wear strap also comes as standard. • Doosan Equipment www.doosanequipment.eu AUSTRALIANMINING

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HAS UNINTERRUPTED FEEDING

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PROD-

EVENTS

& operation updates; logistics & infrastructure; international project case studies; feedstock quality & processing technology; and environmental rehabilitation; stakeholder management & community engagement. This well-established annual event is the only Australian based meeting place offering comprehensive analysis of industry developments for the Ti02 and Zircon markets. • Informa 02 9080 4300 enquiries@informa.com.au www.informa.com.au

CONFERENCES, SEMINARS & WORKSHOPS EVENT SUBMISSIONS CAN BE EMAILED TO EDITOR@MININGAUSTRALIA.COM.AU

PACE SUPPLY CHAIN DEVELOPMENT PROGRAM 9 FEBRUARY THE SCIENCE EXCHANGE, ADELAIDE The resources sector is a major player in the Australian economy, but in changing times identifying how to best engage with the sector locally and globally is a challenge. In times of transition; how can you best place your company on a path to resources sector success, and what assistance can you access to truly unlock your industry potential? At the ‘Identify your opportunity in resources’ briefing you will hear: How the resources industry in South Australia is changing How to engage with and participate in the supply chains of major operators The Global resources market, and hot spots of global market activity Innovation and change in your business model, how to adapt to changing circumstances The PACE Supply Chain Development Program, and how your business can participate in this new and innovative program The PACE Supply Chain Development program is a program delivered by RESA and Austmine for the South Australian Government. It will Develop businesses by leading them on a pathway which provides them with the tools needed to enter the Australian resources industry supply chain and Extend into global supply chains. • Resources and Engineering Skills Alliance (RESA) 08 7325 8555 info@resa.org.au

19TH ANNUAL GLOBAL IRON ORE & STEEL FORECAST CONFERENCE & EXHIBITION 8 – 9 MARCH HYATT REGENCY, PERTH The annual Global Iron Ore and Steel Conference is recognised as THE conference to keep yourself up to speed on the global outlook for iron ore and steel demand / supply balance, where industry leaders comment on their future plans, opportunities, challenges, threats and release new announcements that can shift the balance of the market. The fluctuation of the iron ore market in the past few years has everyone concerned as to where the industry is heading. The raw material is a significant piece of Australia’s economic mix impacting not just the mining industry but many adjoining sectors. Topics to be covered at the 19th Annual Global Iron Ore & Steel Forecast include: • Global economic and financial outlook • Iron ore market outlook: Navigating and surviving excess supply • The perspective on iron ore industry from producers • Global supply outlook • Australia - New projects & expansions • The potential rationalisation of the Iron ore Industry and what this means for Australia? • Volume from Brazil what this means form the Asian market? • Will Africa ever happen? • Will other Pilbara projects get up? • Iron ore price frontier: Impacts on mine closures and investment decisions

• Development and prospects of iron ore futures market • Reality check from the investors • Managing through the downturn and improving productivity in the new low price era • Challenges going forward to service supply • Remuneration in the iron ore sector • Steel market outlook Global & Asia • Status of China’s steel industry - Examining China’s iron ore demands and future development directions • What role other Asian country will play in picking up excess supply • Scrap & rolling demand in China Join the most senior iron ore and steel executives, fund managers, engineering firms, industry suppliers and many more under the one roof for 2 days of discussion, debate and private meetings. No other event provides this unrivalled opportunity to network with key clients and make new business connections. • Informa 02 9080 4307 www.informa.com.au

PROJECT EVALUATION 2016 8 – 9 MARCH ADELAIDE The event provides a multitude of benefits for those

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attending, including the potential to hear over 20 technical papers presented over two days; participate in a dedicated VALMIN Code panel discussion; network with your fellow industry professionals; take part it practical workshops; address issues and relevant challenges faced by the mineral project evaluation and valuation communities; and gain 14 PD hours. • AusIMM Stephanie Addamo 03 9658 6124 saddamo@ausimm.com.au

16TH ANNUAL MINERAL SANDS CONFERENCE 15 – 16 MARCH RENDEZVOUS GRAND HOTEL, MELBOURNE here’s no better time to join Australia’s must-attend Mineral Sands event to keep you up to date with the latest industry news, developments and trends. Many analysts predict the market has reached the bottom of the pricing cycle and anticipate a steady recovery in Ti02 feedstock and zircon market conditions going forward. With much industry debate around the impacts of China’s softening market, what will this hold for the long-term outlook of mineral sands product appetite? Can we expect to see a volume-led recovery? What impacts will new technologies have on demand?Join

your peers and hear about these topics from international guest speakers, plus updates from Australia’s current projects and operations and more! Speakers include Steve Wickham, Chief Operating Officer - Mineral Sands, Iluka Resources Ltd; Reg Adams, Managing Director, ARTIKOL, UK; David McCoy, Managing Consultant, TZ Minerals International Pty Ltd; Hugh Stackpool, Equities Research Analyst, J.P. Morgan; Colin Bwye, Executive Director Operations, Base Resources; Robert Sennitt, Chief Executive Officer, Mineral Deposits Limited; Trevor Matthews, Managing Director, MZI Resources Ltd; Mark Teakle, Project Development Manager, Sheffield Resources Ltd; Neil McIntyre, Chief Executive, Diatreme Resources; Dr. Ian Pringle, Managing Director, Broken Hill Prospecting; Paul Vollant, General Manager, Business Development, TNG; Murray Lines, Director, Stratum Resources; Cameron Perks, Geoscientist, Geological Survey of NSW; Carolyn Balint, Senior Principal, Coffey; Jim Cooper, Chief Executive, Port of Portland; and Malcolm Geier, Business Development Manager, Port of Portland. Topics for 2016 include Ti02 & Zircon market supply & demand outlook; export trends; raising capital & project financing; project

INTERNATIONAL MINING AND RESOURCES CONVENTION (IMARC) 2015 7 – 10 NOVEMBER MELBOURNE CONVENTION & EXHIBITION CENTRE, MELBOURNE IMARC is Australia’s only truly international mining event. Uniting the entire mining industry, IMARC is where mining leaders, policy makers, financiers, technical experts, innovators and educators are brought together under one roof. IMARC has the continued support of Australia’s three leading industry associations, the Australasian Institute of Mining and Metallurgy (AusIMM), Austmine and Australian Mines and Metals Association (AMMA). • Meet 3000+ Australian and international mining experts, CEOs, government representatives and other industry leaders from over 35 countries ready to discuss. • Network with key decision makers and influencers through a range of structured events from round tables, one on ones and social hubs. • Inclusion of Mines and Money Australia – the country’s largest mining investment forum. • IMARC 0 3 9021 2031 www.imarcmelbourne.com

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