Australian Mining - March 2017

LITHIUM IN THE PILBARA

XXX

PRODUCTIVITY PURSUIT VOLUME 109/2 | MARCH 2017

AUTONOMOUS MINING

DRILLERS IN

DEMAND

PRINT POST APPROVED PP100008185

S E R V I N G T H EAUSTRALIANMINING M I N I N G I N1DMARCH U S T 2017 RY SINCE 1908

CALL IN THE SAFEST EVER WORKHORSES

Working in Mining, you know all about the importance of safety ďŹ rst, above all else. Welcome HiLux and LandCruiser 70 Series, both with the maximum 5-Star ANCAP Safety Rating.* With legendary levels of safety, toughness and reliability, these workhorses will get the job done safely, no matter what the challenge is at hand.

Visit your local Fleet Specialist Dealer or call 1800 444 847

TFM1965 AM 01/17

*LandCruiser 70 Series single cab variants only

toyota.com.au/fleet

TFM1965_HiLuxLC70_AMM_297x235_C1c.indd 1

24/01/2017 11:37 AM

1:37 AM

COMMENT

POSITIONED FOR SUSTAINABLE GROWTH BEN CREAGH

Ben.Creagh@primecreative.com.au

TRENDS IN THE MINING INDUSTRY HAVE EVOLVED IN A POSITIVE DIRECTION OVER THE PAST YEAR.

W

hen Deloitte releases its Tracking the Trends report each year it is usually interesting to look at how the new edition compares with the previous year’s.

The 2017 report is no different.

The biggest difference between the past two reports is Deloitte’s transition to a more positive global outlook for the mining industry.

Last year’s report focused a lot on when the “down cycle will eventually come to an end” while the 2017 edition considers the “measure of cautious optimism” that has crept into the industry.

While a year ago Deloitte was advising mining companies to be prepared for the upswing, it is now recommending that they become positioned for sustainable growth as commodity prices rise and financing picks up.

The positivity behind last year’s belief that market conditions would eventually improve has come to fruition – to this point. And a year on it would seem, reading the new report, that the mining industry has progressed to one of the early phases of an upward cycle.

Interestingly, the trends in 2016 were in a section titled, The Issues, whereas in 2017 the trends more closely resemble industry opportunities.

Reading further, the new report goes on to highlight very few trends that are similar to what was covered in the 2016 edition.

A key similarity within the trends is, you guessed it, the need for innovation in the industry. In 2016, innovation was labelled a critical theme and that sentiment has been reinforced in the latest issue, with Deloitte advising mining companies to become serial innovators.

Mining’s innovation focus has obviously led to benefits as conditions have turned. The likes

MANAGING DIRECTOR JOHN MURPHY EDITOR BEN CREAGH Tel: (03) 9690 8766 Email: ben.creagh@primecreative.com.au JOURNALIST SHARON MASIGE Tel: (02) 9439 7227 Email: sharon.masige@primecreative.com.au CLIENT SUCCESS MANAGER KRISTINA PERIC Tel: (02) 9439 7227 Email: kristina.peric@primecreative.com.au

of Australia’s iron ore behemoths BHP Billiton, Rio Tinto and Fortescue Metals Group have all talked up the effectiveness of their innovation pursuits during the recent reporting period.

Deloitte urges mining companies to take another step in this process, saying that “in order to get to the next layer of efficiency gains, they need to turn to innovation.”

This sends a clear message that the job mining companies set out to achieve during the struggles of the downturn is not yet complete.

Commodity prices may have risen and financing may now be offered more freely, but much of the industry is still finding its feet for what could be an upward swing in conditions.

While Deloitte describes the mining industry as cautious, it has also been responsibly cautious in its 2017 report, albeit with an underlying positivity not evident a year ago.

As mentioned, it highlights many opportunities – instead of issues and challenges – like how companies can now add shareholder value, unlock further productivity gains, collaborate with each other, and make the most of the digital revolution.

To be honest, it’s about time that we started to read more about how the industry can be on the offensive instead of what is the best form of defence (or survival for that matter).

As has been the case in the past, Australian Mining will continue to review Deloitte’s Tracking the Trends report, starting in this edition with: Understanding the drivers of shareholder value.

In this, the March edition of 2017, we look at the emergence of the lithium sector in the Pilbara region of Western Australia through an interview with Pilbara Minerals CEO Ken Brinsden.

This issue also focuses on the drill and blast sector of the industry, including the latest solutions from Atlas Copco and the growth of services company, Action Drill & Blast.

In a company profile, we investigate SEWEURODRIVE’s new service centre in Mackay, Queensland, and its potential to add productivity and efficiency gains to the mining industry in the region.

The latest communication trends are covered in an interview with Motorola Solutions, with the advantages and challenges of implementing the latest technologies in this area explored.

And as always, we provide the latest mining technology and equipment in our regular Product Showcase section.

Ben Creagh Editor

SALES MANAGER JONATHAN DUCKETT Tel: (02) 9439 7227 Mob: 0498 091 027 Email: jonathan.duckett@primecreative.com.au ART DIRECTOR Michelle Weston GRAPHIC DESIGNERS James Finlay, Blake Storey, Sarah Doyle SUBSCRIPTION RATES Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 For subscriptions enquiries please call GORDON WATSON 03 9690 8766

AUSTRALIANMINING

FRONT COVER

3

MARCH 2017

PRIME CREATIVE MEDIA Suite 303, 1-9 Chandos Street Saint Leonards NSW 2065, Australia www.primecreative.com.au © Copyright Prime Creative Media, 2016 All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher.

Average Net Distribution Period ending September 2015 7,827 PRINTED BY MANARK PRINTING 28 Dingley Ave Dandenong VIC 3175 Ph: (03) 9794 8337 Published 12 issues a year

CONTENTS

PILBARA SPOTLIGHT LITHIUM ELECTRIFIES THE PILBARA Lithium makes its mark in Western Australia’s Pilbara region

MATERIALS HANDLING

10-13

34-35

TRACKING THE TRENDS

PRODUCTIVITY & EFFICIENCY

36-39

DELOITTE’S TRACKING THE TRENDS – DRIVING SHAREHOLDER VALUE Deloitte’s strategies to increase shareholder value

DRILL, BLAST AND GEOMECHANICS BLASTING INTO THE NEXT ERA OF MINING Action Drill and Blast handles the turnaround in market conditions

ENGINEERING IMPROVES CONVEYOR MAINTENANCE PROCESSES How ESS’ new retractable idler frame design benefits conveyors

14

CONTINUOUS IMPROVEMENT PROCESSES BOOST BOART LONGYEAR PRODUCTIVITY How Boart Longyear has achieved operational efficiency DELIVERING NEW SERVICE CAPABILITIES TO QUEENSLAND MINING A new service centre in Mackay is set to benefit the local mining industry

16-21 URANIUM

IMPROVING STEEL CASING INSTALLATION IN UNDERGROUND MINES Pybar’s new process to streamline steel casing installation

40-41

DRILLING TOWARDS MORE EFFICIENT OPERATIONS Atlas Copco’s success with its latest drilling solutions

URANIUM PROJECT APPROVALS BOLSTER SECTOR AMID GLOBAL DOWNTURN The future looks bright for uranium production in Australia

GOLD MARKET

42-45

WILL GOLD RISE AGAIN? How the gold market has performed in the year so far

AUTOMATION & REMOTE CONTROL ATLAS COPCO BECOMES AUTOMATION READY Australian Mining speaks to the company about its autonomous vehicle range

22-25

OIL & GAS

46-47

MAINTENANCE & MONITORING MINIMISE DOWNTIME, WITH EQUIPMENT INSPECTIONS Eriez outlines ways to extend the life of mining equipment

COMMUNICATION MORE THAN A MOBILE PHONE Motorola discusses communications challenges on site

OIL DEMAND TO SLOW DOWN AMID A RISE IN RENEWABLES How renewables will affect the global oil demand

PROSPECT AWARDS

48-49 26

PROSPECT AWARDS WINNERS PROFILE Australian Mining looks back at a part winner of the Prospect Awards

28-30

PRODUCT FOCUS: PPVC

50-51 ENSURING PIT WALL STABILISATION AND DEPRESSURISATION The importance of high-quality pumps on site

SOFTWARE & HARDWARE WHEN LIGHTNING STRIKES The latest lightning detection technology from Strike Alert

32-33

REGULARS

INDUSTRIAL COMMENT 6

NEWS 8

PRODUCT SHOWCASE 52

AUSTRALIANMINING

4

MARCH 2017

EVENTS 54

Atlas Copco is known for innovative and sustainable solutions for mining, tunneling and quarrying. Many of our ideas for developing products and solutions are in collaboration with customers, suppliers and the industry. We move mountains with ideas from all parts of our business - design, sales, finance, training, service and more.

Learn more at ideasmovemountains.com

INDUSTRY COMMENT

ADDRESSING THE FUNDING GAP IN MINING BANKS ARE RETREATING FROM THE MINING SECTOR, MEANING THAT MANY MINING COMPANIES ARE STRUGGLING TO FIND FINANCE. PAUL MITCHELL, FALCON GROUP’S AUSTRALIA AND NEW ZEALAND REGIONAL HEAD, DISCUSSES THE RISE OF NON-BANK LENDING AS THE NEW GO-TO FUNDING OPTION FOR MINERS.

A

lack of access to capital is making it increasingly difficult for mining companies to plan for longterm growth while simultaneously meeting short-term financial obligations. This is certainly true for smaller players, although is potentially impacting any miner unable to access the bond market.

As a consequence, many mining companies are finding themselves severely cash-strapped and, therefore, unable to meet debt obligations, or to develop new projects.

Of course, the most significant driver of this situation is the ongoing and global retrenchment of bank lending.

Post-crisis regulations and increased capital requirements continue to make the lending of money from mainstream banks more costly and complex – causing many banks to significantly scale back operations.

In Australia, for instance, the ever-increasing pressure on reducing exposure to risk has led to banks – on which mining companies have heavily depended on for injections of cash – to reduce lines of credit, or withdraw from the sector completely.

New providers

Luckily, mining companies prepared to look beyond the bank market can still find financing. In particular, the non-bank financing industry is stepping into the breach.

Non-bank lenders have a higher tolerance for risk, are more flexible and innovative and – crucially – understand that mining is a cyclical industry that will not stay depressed forever.

As such, specialist financiers such as Falcon have adopted an approach that takes a long-term view while recognising the crucial need to plug short-term capital shortages.

Non-bank financiers are more agile and freer from the pressures that can weigh down traditional lenders.

Not least, the fact they do not take deposits means they are free from the regulatory hurdles of mainstream banks. They are also freer to be

innovative with respect to lending structures and security.

What’s more, while banks may be shrinking their global footprints, non-bank lenders are expanding their international networks. So, as Western Australian mining companies look further afield to grow their operations and establish regional headquarters, non-bank lenders will play an increasingly important role – opening doors to new markets, as well as enabling companies to diversify their pool of funding partners.

Yet non-bank lenders are not the only alternative to bank lending, far from it. A number of junior mining firms are turning towards private equity funds (PE) to fill the funding gap.

According to BMI Research, over the first four months of 2016, 12 deals, with an estimated total deal value of $US2.8 billion, were made by PE funds. Moreover, PE investment is predicted to strongly increase in countries with a strong junior miner presence which, of course, includes Australia.

New solutions

Structured solutions are also proving popular. Over the past several years, off-take deals are being conducted with increasing frequency between development-stage mining and financing parties looking to invest in projects.

This model is particularly well-suited to smaller mining companies – which are primarily focused on exploration and extraction – as it enables them to secure difficult-to-find upfront capital while the investor has the option to store, or sell, the mine’s future output.

Meanwhile, royalty and streaming arrangements provide capital to mining companies in the form of an upfront cash payment in exchange for a percentage of future production or revenues from the mine.

The pressures remain

Such funding models have been filling the gap created by the challenges of raising sufficient traditional equity, debt and project financing. Yet the fundamental drivers of uncertainty in the mining industry remain, meaning such funding flexibility will be key even if bank appetite returns.

A weak pricing environment over the past several years has had a negative impact on the cash generation of Australian mining assets.

In part, this has been due to the Chinese economy’s rebalancing, and its shift in focus from heavy manufacturing to services.

AUSTRALIANMINING

6

MARCH 2017

Having once been responsible for approximately 40 per cent of global demand for commodities, it comes as little surprise that a decline in Chinese demand – in a market awash with supply – has resulted in price pressures across the industry.

Of course, last year saw something of a fightback. In particular, rising prices for coal – coupled with lower operating costs – helped improve the fortunes of larger mining companies, including Whitehaven Coal, the country’s leading producer.

Prices of iron ore, meanwhile, swung between highs of $US83.58 and lows of $US38.30 per tonne – making it increasingly difficult for junior to mid-cap players to stay afloat.

While the recent higher prices are, of course, good news for the Australian mining industry overall, expectations of challenging operating and market conditions are set to continue into 2017.

And, as with a scarcity of funding also showing no signs of abating, Australian miners will need to seek innovative funding models, so it is just as well such innovation is thriving. AM

Leaders in ‘better than new’ technology In 2017 we continue to lead the field in surface engineering technology across a range of industrial applications.

We’re passionate about innovation, productivity and conservation. We’ve been excelling at it for 25 years.

We’ve learned a great deal about the tribology of wearing parts and advanced metallurgy. We’re tailoring alloys that will dramatically reduce wear in specific situations, rebuilding worn parts to work better than new and creating innovative new components that are superior. And we have the best deposition methods to apply them. This is why we have attained prized strategic partnerships with leading companies and university researchers. Why we enjoy alliances with key industry bodies and cutting edge technology associations. Why we’re actively collaborating to develop more ‘Living Labs’ to further pioneer improved wear resistance methodology. To discuss the possibilities of increasing wear life, refurbishing worn components and reducing costs for any aspect of your business, contact Laserbond.

R

19

92

SA

RY

LaserBond – an excellent choice VE •2 017 • A N N I

LaserBond Limited | www.laserbond.com.au Sydney | Adelaide | Freecall 1 300 527 372 International +612 4631 4500 | Fax +612 4631 4555 Email info@laserbond.com.au

Quality 9001, Environment 14001, Health & Safety 4801 14662 Branding2 A4+

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.AUSTRALIANMINING.COM.AU TO KEEP UP TO DATE WITH WHAT IS HAPPENING. BHP BILLITON COAL ALLIANCE OFFERS HUNDREDS OF JOBS IN QUEENSLAND More jobs are returning to Australia’s coal industry. Queensland’s coal sector in the Bowen Basin is the beneficiary on this occasion, with the BHP Billiton Mitsubishi Alliance (BMA) offering hundreds of jobs in the region for the Peak Downs and Saraji mines.

According to the Queensland Resources Council (QRC), the job opportunities are another sign of the green shoots returning to the coal industry, with more than 200 people expected to be engaged for employment at the mines.

BMA is targeting Townsville for fly-in, flyout (FIFO) employees because of the high

unemployment rate in the city, as well as the contingent of workers left behind by the collapse of Queensland Nickel.

News Corp media reports outlined that about 70 jobs went to locals in Moranbah, with BMA looking to labour hire contractors in Townsville to fill 200 FIFO contract positions. The jobs are said to be mostly for truck drivers and mobile plant operators, and likely to last for up to 12 months.

QRC chief executive Ian Macfarlane said it was great news for people in Queensland’s north and the broader coal sector in the state, which had been struggling through a downturn

AUSTRALIAN URANIUM INDUSTRY PLAYS A ROLE IN GLOBAL PRODUCTION GROWTH Australia’s Four Mile uranium mine in South Australia is playing a part in a global lift in production of the mineral.

Global uranium production is expected to increase at a compound annual growth rate of 4.3 per cent, to reach 76,493 tonnes in 2020, research and consulting firm GlobalData revealed.

The company’s latest report states that growth in production is needed to meet upcoming demand from new reactors. It outlined that output at Four Mile increased from 750t in 2014 to 990t in 2015.

There are 22 new reactors scheduled for completion in 2017, with a total capacity of 22,444 megawatts (MW), according to GlobalData.

This includes eight reactors in China with a combined capacity of 8510 MW, two reactors in South Korea with a combined capacity of 2680 MW, two reactors in Russia with a combined capacity of 2199 MW, and four reactors in Japan with a combined capacity of 3598 MW. Global uranium consumption is forecast to increase by five per cent, to reach 88,500t of triuranium octoxide (U₃O₃) in 2017.

The major expansions to nuclear capacity are projected to occur in China, India, Russia and South Korea over the next two years to 2018. The United States is forecast to remain the largest producer of nuclear power in the short term, with the recent completion of the 1200 MW Watts Bar Unit 2 reactor in Tennessee.

Cliff Smee, GlobalData’s head of research and analysis for mining, said, “Commercial operations at the Cigar Lake project in Canada commenced in 2014, with an annual uranium metal capacity of 6900t.

“The project produced 4340t of uranium in 2015, compared with 130t in 2014. Meanwhile, production at the Four Mile project in Australia rose from 750t in 2014 to 990t in 2015.

“By contrast, production from the US declined by 32 per cent in 2015, while in Namibia it decreased by 20 per cent. This was due to respective declines of 33 per cent each at the Smith Ranch-Highland and Crow Butte mines in the US, and falls of 20 per cent and 13.6 per cent at the Rossing and Langer Heinrich mines in Namibia.”

over the past few years.

“This is another sign of green shoots for the Bowen Basin, an area which delivered much of the $1.6 billion boost to royalties for the state government,” Macfarlane, the former federal resources minister, said.

“It follows on from the good news we are seeing right across the Queensland coal industry with record exports last year and new mines opening up.”

After coal prices surged in 2016, several mines in Australia and overseas were reopened, including Glencore’s Collinsville operation.

AUSTRALIAN MINING GETS THE LATEST NEWS EVERY DAY, PROVIDING MINING PROFESSIONALS WITH UP TO THE MINUTE INFORMATION ON SAFETY, NEWS AND TECHNOLOGY FOR THE AUSTRALIAN MINING AND RESOURCES INDUSTRY.

BLACK LUNG CASE CONFIRMED IN NSW A NSW coal mine worker has been diagnosed with coal worker’s pneumoconiosis (CWP), or black lung, the first confirmed case in the state since the 1970s.

The former mine worker had worked in a number of open cut mines in the state before leaving the industry in 2014.

NSW Resources Regulator chief compliance officer Lee Shearer said although the disease has not been identified in NSW for a number of decades, “one case of pneumoconiosis is one case too many”.

“The priority is to ensure the worker is getting the best possible level of support and care,” she said.

The Resources Regulator’s Major Investigation Unit is investigating the incident to determine whether there were any breaches of work health and safety laws.

Lucy Flemming, managing director and CEO of Coal Services, said the state has a strict regime to protect coal mine workers.

“Our approach is a combination of the most rigorous coal dust exposure limits in Australia, legislated requirements for achieving minimum standards of ventilation, monitoring of airborne contaminants in the worker environment and prescribed worker health monitoring regimes for exposure to airborne dust.

“Workers receive periodic health surveillance every three years. Outside of the placement, medical assessments are undertaken for all coal mine workers prior to commencing employment and ongoing assessments are offered to workers after they leave the industry.

“Workers’ health is the absolute priority and this latest news only serves to demonstrate the utmost importance of such strict regulations.”

Shearer added that CWP is preventable through dust control, atmospheric monitoring and worker monitoring measures at mine sites.

Flemming also emphasised the importance of constant health surveillance for all current and former NSW coal mine workers.

“Prevention and education is the key – mine operators must have strong dust elimination and mitigation controls in place, workers should wear personal protective equipment and attend medicals even after they leave the industry,” she said.

The first confirmed case of black lung from an open cut coal mine occurred in October last year, affecting a 55-year-old Queensland man.

At the time, Stephen Smyth, CFMEU Mining and Energy Division Queensland district president, said, “So far, industry and governments have been assuming this problem is isolated to underground mines – we now know this is a false assumption.”

There have been 16 confirmed cases of black lung in Queensland.

AUSTRALIANMINING

8

MARCH 2017

Aust M

OUR SOLUTIONS YOUR PRODUCTIVITY introducing sandvik’s Rhino Raise Borer - the first of its kind in australia in 2017.

Highly mobile, self-contained and featuring a purpose-built mobile crane for rod handling, Rhino creates a safer, more productive and more efficient working environment.

Lead the charge in 2017 with Rhino.

SANDVIK MINING AND ROCK TECHNOLOGY PARTS SALES 18001 7263845 | GENERAL ENQUIRIES 13001 7263845 info.smc-au@sandvik.com | WWW.MINING.SANDVIK.COM

Aust Mining March ad - Rhino.indd 1

3/02/2017 1:36:16 PM

PILBARA SPOTLIGHT

LITHIUM ELECTRIFIES THE PILBARA WESTERN AUSTRALIA’S PILBARA MAY BE BETTER KNOWN FOR IRON ORE, BUT LITHIUM IS QUICKLY MAKING ITS NAME IN THE REGION. BEN CREAGH WRITES.

L

ithium has undoubtedly been one of the hottest commodities in the world for some time now.

Demand from countries like China has grown significantly in the past two years as manufacturers look to increase output of lithium-related technology, such as li-ion batteries, in addition to its more traditional use for production of ceramics or glass.

Prices for lithium carbonate have

skyrocketed as demand has risen, with its value around triple what was recorded in 2015.

The mineral has enjoyed a strong presence in Western Australia for more than 25 years. In the state’s south-west, the Greenbushes mine produces about a third of the world’s output.

AUSTRALIANMINING

Now, lithium is emerging as a hot prospect with the potential to diversify the mining industry in the Pilbara, as exploration continues to show how the region has enough high-grade material to accommodate global demand.

Several prospects are being evaluated in the region with development in sight, including Pilbara Minerals’ Pilgangoora project, which is on track to start producing in the fourth quarter of 2017.

10

MARCH 2017

While the Pilbara’s lithium sector is obviously not on the same scale as its iron ore industry, it’s hard to ignore the parallels between the two commodities and how they are emerging in the region.

Pilbara Minerals chief executive officer Ken Brinsden believes the region is well positioned to play an important role in the development of lithium as a key commodity in Australia, as it did with iron ore.

“Of course, the Pilbara is very famous for its iron ore mining. I

Experience.

Quality.

Excellence.

With FLSmidth’s experience, commitment to operational excellence and adhering to the highest quality standards we can help you achieve the lowest total cost of ownership and increase productivity safely and responsibly.

From ore to metal, FLSmidth offers an increased level of service and unsurpassed knowledge within the minerals industry. We partner with customers to improve plant recovery and ore throughput, while striving to minimize environmental impact.

We’ve built a strong reputation around providing safe and reliable equipment. Working together, our expertise, optimized solutions and sustainable technologies empower customers with innovative ways to responsibly develop the world’s resources.

For more information, visit flsmidth.com

PILBARA SPOTLIGHT

am convinced that it is soon to be famous for its lithium ore material supply because there are some amazing resources up there,” Brinsden told Australian Mining.

“Pilgangoora sits right at the heart of it. You couldn’t ask for a better place to be constructing a mine. It is so close to key infrastructure – the port of Port Hedland, power supply and the road networks.”

Energising China

Another parallel between lithium and iron ore in the Pilbara is the role of China, which is currently demanding lithium raw materials in record quantities in the same way it pursued iron ore.

Brinsden said while some sceptics may still view this surge in demand as a ‘flash-in-the-pan’, he believes this opinion could not be further from reality.

“It’s really phenomenal what is going on, especially in China. The speed with which they are building

out their lithium ion supply chain and at the higher quality end is phenomenal,” Brinsden said.

“The evidence is not just in the growth of battery-making capacity but it is also the price they are paying for the raw material.

The reason they are paying the high prices is because there is a fundamental shortage.

Brinsden added, “The phenomenon about the resources industry is that when it is put

under pressure to grow, the supply will introduce new tonnes which are at higher costs than what was developed historically. As a result, the cost base shifts which means the price must also shift.”

Project progress

In 2016, Pilbara Minerals focused on de-risking the Pilgangoora project by securing several key milestones, including the native title agreement and mining lease.

THE PHENOMENON ABOUT THE RESOURCES INDUSTRY IS THAT WHEN IT IS PUT UNDER PRESSURE TO GROW, THE SUPPLY WILL INTRODUCE NEW TONNES WHICH ARE AT HIGHER COSTS THAN WHAT WAS DEVELOPED HISTORICALLY. AS A RESULT, THE COST BASE SHIFTS WHICH MEANS THE PRICE MUST ALSO SHIFT.”

AUSTRALIANMINING

12

MARCH 2017

These milestones led to another important achievement in January when it awarded the engineering, procurement and construction (EPC) contract to Australian services company, RCR Tomlinson.

The contract, which is worth a maximum $148 million, involves the EPC of Pilgangoora’s two million tonnes per annum lithium-tantalum processing plant, including wetand-dry circuit with concentrator, associated plant and commissioning of the mine.

RCR selected sub-contractors – Primero and Minnovo – to provide it with technical and engineering support during the contract. Both subcontractors have previous experience in the lithium sector.

“We were very lucky, we had a competitive tender process and some tough decisions to make in how we would do it. The consortiums that were put together were very capable and cost effective…it was an embarrassment of riches really,” Brinsden said.

PILBARA SPOTLIGHT

“The RCR consortium (of companies) are very capable operators and have a proven track record, even to the point where they are already operating in the lithium industry, which is very rare in WA.” Brinsden said the company was working towards awarding additional services contracts for the development of Pilgangoora and beyond.

“That is all happening in parallel.

There will be lots of minor contracts that relate to the balance of the construction on site – things like installation, road construction, road upgrades and rail crossings,” Brinsden said.

“Then, in addition, the one we have to work through is for the actual mining enterprise, including the mining contract.”

during the past decade.

“It translates into some good opportunities for Pilbara in terms of pricing, the availability of the resources and even out-of-the-box opportunities like buying things second hand,” Brinsden explained.

“There are lots of things that are now available or redundant to previous activities that we are able to pick up very cheaply. We

have bought a 300-man camp from the Roy Hill project and we have done that very cost effectively in comparison with buying new.”

Brinsden described the past decade in the Pilbara as an ‘extreme scenario’, which had left many redundant camps, building sheds and even processing plants behind.

“Some of those things are a big advantage to the likes of Pilbara

Post-boom Pilbara

Pilbara Minerals is also finding cost-friendly opportunities in the aftermath of the mining investment boom in the region.

Brinsden said Pilgangoora’s development process was being aided by the remnants of the wide-spread construction of mines Projekt1 12.01.17 13:14 Seite 1

AUSTRALIANMINING

13

MARCH 2017

(Minerals) who are constructing.

Having said that, I think it is true that the whole industry has turned the corner and things are getting busier again,” he said.

“You would have to expect then that things will get a little bit more competitive, but perhaps nothing like that hyperinflation environment that existed in the Pilbara as recently as four years ago.” AM

TRACKING THE TRENDS

DELOITTE’S TRACKING THE TRENDS – DRIVING SHAREHOLDER VALUE DELOITTE HAS RELEASED A LIST OF THE TOP 10 INDUSTRY TRENDS WE CAN EXPECT IN 2017. WITH SEVERAL OPPORTUNITIES AND CHALLENGES FACING THE SECTOR THIS YEAR, IT’S IMPORTANT TO STAY A FEW STEPS AHEAD AND PAY ATTENTION TO THE INDICATORS.

D

elivering shareholder value has not traditionally been a strength of the mining industry, Deloitte outlines in the Tracking the Trends 2017 report.

In recent years, this has been particularly evident, with total shareholder returns (TSR) in steady decline since 2011. Most of the global diversified miners have registered double-digit declines in TSR growth over the past five years, Deloitte explained.

However, this decline contrasted with the mining investment boom era when mining companies delivered strong TSR. The primary driver of this was revenues rising in a strong commodity price environment, as well as production increases, margin expansion and organic growth.

With commodity prices now increasing, Deloitte believes it is an opportune time for mining companies to improve their TSR once

again. Instead of relying on strong commodity prices, however, it said companies were now looking for ways to control the creation of sustainable shareholder value.

Deloitte Australia mining leader Nicki Ivory said the focus on shareholder value in the mining industry was sharper than ever before, with return on invested capital (ROIC) a key metric.

“While companies are starting to focus on growth again, this is being carefully balanced with the need to maintain financial discipline,” Ivory said.

“As a result, growth strategies are no longer about significant M&A deals and major new capital projects, but focused on portfolio optimisation through a combination of brownfield expansions, strategic acquisitions and/or divestments and productivity improvements.”

Deloitte identified the following short and long-term strategies that mining companies can adopt to help create shareholder value:

AUSTRALIANMINING

Optimise portfolios

Companies should continue to optimise portfolios by analysing their asset mix on an ongoing basis, making strategic decisions to divest lower returning assets and/or acquiring smaller strategic assets to position portfolios for best-of-breed ROIC and future growth.

Strengthen M&A processes

Companies that choose to pursue inorganic growth through M&A must take steps to adopt more disciplined investment decisionmaking processes and strengthen transactional capabilities to avoid the missteps of the past.

Sustain the focus on costs

The austerity programs of recent years must remain ongoing to reap sustainable advantages. Strategies include improving capital project performance, strengthening thirdparty risk management to avoid revenue leakage, retroactively reviewing supplier invoices to

14

recover past overpayments and petitioning governments to reclaim unpaid tax credits.

Play the long game

There is a growing movement to encourage the investor and analyst community to embrace the benefits of long-term investing.

Companies can generate long-term value by aligning incentives to long-term financial performance, adhering to long-term strategic plans and engaging with investors to discuss long- term value creation goals rather than shortterm results.

Pursue innovative growth

By investing in existing resource development, companies can refine marketing approaches to gain commercial negotiating leverage and pricing power; explore commodity trading opportunities commensurate with their risk appetite; and commercialise existing assets to generate additional income. AM

MARCH 2017

MT10

Improve your crusher’s productivity by up to 30% with our new generation upgrades This is how we make the big difference, the Metso Way.

Now the robustness and reliability of Superior™, Nordberg™ and Symons™ can incorporate the performance that only Metso’s modern crushers achieve.

Without having to buy a new machine, you can get our new generation crusher upgrades to improve your crusher’s safety, performance and maintenance to make you more profitable.

Find out how our new generation of upgrades can make the big difference for your crusher at metso.com/CrusherUpgrades. #TheMetsoWay

MT103 Ad-crusher-upgrades-2016 [Australian Mining].indd 1

23/12/2016 10:22:07 AM

DRILL, BLAST & GEOMECHANICS

BLASTING INTO THE NEXT ERA OF MINING

BY IMPLEMENTING SEVERAL KEY INITIATIVES AND STICKING TO A COMPANY STRATEGY DURING THE MINING DOWNTURN, ACTION DRILL AND BLAST IS WELL PLACED FOR A TURNAROUND IN MARKET CONDITIONS. BEN CREAGH WRITES.

T

he mining downturn was difficult for drill and blast companies. Activity slid significantly as major mining companies in Australia, and globally, reduced their workload in this area.

For companies like Action Drill and Blast (ADB), however, it looks as though the worst of the conditions has passed. Miners are starting to lift production in key commodities like iron ore, coal and gold, and exploration activity is gradually rising around the country.

Despite recent challenges, ADB’s management of the mining downturn has left it well placed for what is being considered as the start of a turnaround for the industry.

In fact, ADB expanded significantly in December 2016 following the acquisition of east coast drilling company, Hughes Drilling, by its parent company, NRW Holdings.

NRW acquired Hughes’ operations, its fleet of 35 large drill rigs and more than 140 employees, all of which are currently being integrated into ADB’s portfolio.

ADB now has one of the largest fleets in Australia and believes it has become the best-equipped contractor in the country to offer large diameter drilling capacity.

General manager Warren Fair told Australian Mining that the company had focused on continuing to provide a unique and superior service through the delivery of several key value adds and initiatives while activity was low.

The initiatives included an integrated drill and blast service offering in Queensland’s coal industry, a flexible pricing model, a best-for-project approach, technical expertise and best practice quality, fleet maintenance and advanced safety systems.

“In the Queensland coal industry, we are the only company providing an integrated drill and blast contract service. Our contract pricing model is flexible and includes the option of a fixed price per blasted cubic metre ($/bcm) rate with strict quality assurances,” Fair said.

“The typical drill and blast model in coal is to contract separate drilling and blasting contractors on a price per

metre drilled or tonnes of explosives used basis.

“On a fixed $/bcm rate, bestfor-project solutions are developed to optimise blasts, resulting in reduced explosives use, less metres drilled and therefore less cost to our clients. The $/bcm model places more incentive on the contractor to reduce overall drill and blast costs for the client.”

Explosives alone can contribute more than 50 per cent of a drill and blast project’s costs, Fair continued, so getting more value out of all explosive products to achieve the targeted result – rather than simply using more product – can have a significant impact on a client’s profit margins.

Innovation focus

A common theme that emerged in the industry during the downturn was the need for mining, exploration and

AUSTRALIANMINING

services companies to be innovative to remain competitive.

ADB operates across several commodities, including lithium, coal, iron ore and gold, with each of these requiring a specialist approach to meet the needs of the industry and clients.

Fair said innovation was one of ADB’s core values and this focus had helped it satisfy these needs.

“It’s imperative that we have the expertise to successfully apply advanced technological solutions where we know they can deliver value, we are always considering alternate methods of work,” Fair said.

An example of this is ADB’s application of electronic initiation systems at the Middlemount coal mine in Queensland, which achieved exceptional results.

ADB’s innovation was also exhibited through the utilisation of an Atlas Copco D65 drill at

16

MARCH 2017

the Greenbushes lithium mine in Western Australia to undertake production, pre-split and RC grade control drilling. This resulted in a reduction in the amount of equipment and personnel required on the project.

Fair added, “When it comes to maintenance, we have developed an industry-leading maintenance strategy underpinned by a whole-oflife approach to all of our equipment.

Using computerised maintenance planning and work order systems ensures we adhere to our strict preventative maintenance program.”

Fair said the ADB fleet achieves an average availability greater than 90 per cent – the industry accepted standard is 85 per cent.

Staff and training focus

While widespread redundancies and job cuts have been the norm in the mining industry in recent years,

ADB has used this situation as an opportunity to strengthen its focus on workforce development.

This has involved a common human resources trend to equip its staff to perform in several tasks or areas at its projects.

Fair said ADB’s well-trained workforce and multi-skilling mandate was a point of difference that it had established.

“This means teams can perform multiple duties across the drill and blast operations, increasing productivity, efficiencies and safety, while reducing costs through efficiencies and less personnel,” Fair said.

“The hands-on experience of crew members in different roles also allows them to be proactive in regards to safety across more areas of the drill and blast operation.”

Fair said ADB had also retained the skills and experience of its workforce, with around 80 per cent of its leadership team having been with the company for more than six years. Most of the company’s senior personnel also have more than 20 years’ experience, he added.

Upcoming opportunities

With ADB in a strong position, Fair said the company was committed to maintaining its existing customer base, while also pursuing new opportunities that were being offered around Australia.

“During its seven years of operation, ADB has established long term partnerships with a number of key projects, executing long term contracts and contract extensions,” Fair said.

“The most notable are the Middlemount and Isaac Plains coal mines in Queensland, and the St Ives gold mine, Greenbushes lithium mine and Cloudbreak iron ore mine in WA.” Fair added that the new opportunities it was targeting were primarily in WA and Queensland – a positive sign for the two states.

“Our estimating department is busy and we are certainly seeing more tenders being issued in the mining industry, in both WA and Queensland. We are hopeful of turning our share of these opportunities into business for the company,” he concluded. AM

“ ProTrac measures reliably – even under extreme conditions.”

New from VEGA: the radiation-based instrument series, ProTrac.

ProTrac delivers reliable measurements for level, density, mass flow or point level.

Using four detector variants, ProTrac can solve the most difficult measuring problems – whether in extreme temperatures, high pressures or aggressive media. The system also provides additional security with integrated asset management. www.vega.com/au/innovation Phone: 1800 817 135

AUSTRALIANMINING

17

MARCH 2017

DRILL, BLAST & GEOMECHANICS

IMPROVING STEEL CASING INSTALLATION IN UNDERGROUND MINES PYBAR MINING SERVICES HAS DEVELOPED A PROCESS THAT STREAMLINES THE DRILLING AND INSTALLATION OF STEEL CASING IN UNDERGROUND MINING SITUATIONS.

I

n underground mining, a steel casing or pipe is used to line holes that have been bored or drilled for rising mains water, utility lines and paste fill, protecting the contents from damage and loss into open voids or broken ground.

Installing steel casing using conventional welded methods can be time consuming and costly for underground mining projects.

Depending on the requirements, it can take days to install and necessitates additional labour and equipment hire, such as boilermakers, chairing frames, cranes or integrated tool carriers.

Following a rigorous development

process, Australian mining contractor Pybar Mining Services is offering an improved service.

Pybar chief operating officer Brendan Rouse said the company’s specialist drilling division received a tender for in-the-hole (ITH) drilling and installation of steel casing for paste fill application.

“The team identified an opportunity to streamline the drilling and installation process by using one drill to conduct the drilling, reaming and casing operations while also improving safety, efficiency and reducing delays associated with carnage, suspended loads and hot work in an underground environment,” Rouse explained.

AUSTRALIANMINING

In collaboration with steel casing manufacturers and engineers, a threaded casing installation system, which is far more productive that traditional welded methods, was designed.

The ability to lift, rotate and lower the casing mitigates some of the risk associated with the casing hanging up or becoming stuck part way down the bore hole – common issues often encountered when installing steel casing.

Completely eliminating hot work and the associated management controls from the underground environment, the threaded casing system features specially designed joints comprising of external

18

MARCH 2017

couplings with machined tool joints, specialised installation tooling and casing hanger.

The casing has been engineered to exact specifications and ensures a consistent pressure rating is maintained throughout the length of the installation. The method results in flush internal joints, greatly increasing the life expectancy over the butt-welded casing method by reducing wear points for erosion of the casing.

For life of mine applications, ceramic coating is also available to further increase the casing life. In addition to paste fill, casing can be manufactured to suit a variety of applications, including service holes

DRILL, BLAST & GEOMECHANICS

and rising mains applications.

The Cubex Aries ITH drill, a recent addition to Pybar’s drilling division, was designated as the ideal drill for installing the system.

While raise bore rigs have previously been used to install steel casing, the highly flexible Aries ITH offers a far greater range of angles where casing can be installed over raise bore or conventional welded methods. Costs can be further reduced with longer lengths of casing and, compared to the raise bore installation, there is no requirements for cement pads.

Productivity gains at Gwalia

The Aries ITH has recently been used to complete a drill, ream and casing installation project at St Barbara’s Gwalia gold mine in the Goldfields region of Western Australia.

A pilot hole was diamond drilled due to the shallow design angle of the hole. The Aries was then used to ream the hole to 254mm in diameter and install the six-inch schedule 80 steel casing in the 82m hole, 24 degrees below horizontal.

The casing was installed in a single shift without incident. It is estimated that using welded methods, the installation would have taken up to five days.

“The results at Gwalia clearly demonstrate the efficiencies achievable by applying this method.

In addition to increased productivity, we strongly believe this method greatly improves the safety and quality of the casing installation for our clients whilst greatly reducing the associated labour costs over conventional steel casing installation methods,” Rouse said.

Mounted on a mobile articulated

THE TEAM IDENTIFIED AN OPPORTUNITY TO STREAMLINE THE DRILLING AND INSTALLATION PROCESS BY USING ONE DRILL TO CONDUCT THE DRILLING, REAMING AND CASING OPERATIONS” carrier, the Aries can drill on a 360-degree rotation plane making it one of only a few tyre-mounted drills with this capability that is available

for contract services in the Australian market. Service, production and slot holes can all be drilled with the one machine. AM

INTEGRATED SERVICES

ACTIONEXCELLENCE R E S P O N S I V E . E F F I C I E N T. R E S U LT S. A TRACK RECORD OF EXCELLENCE PERFORMANCE

SAFETY

PEOPLE

VALUE

EXPERTISE

RELIABILITY

PARTNERSHIP

EQUIPMENT

Visit actiondb.com.au email wedeliver@actiondb.com.au

AUSTRALIANMINING

19

MARCH 2017

DRILL

BLAST

SERVICES

EXPLOSIVES

DRILL, BLAST & GEOMECHANICS

DRILLING TOWARDS MORE EFFICIENT OPERATIONS ATLAS COPCO HAS RETURNED POSITIVE TESTING RESULTS FROM ITS NEW DRILLING SOLUTIONS, WHICH ARE ON THE VERGE OF ARRIVING AT SITES ACROSS AUSTRALIA.

A

tlas Copco continues to bolster its drilling equipment and software solutions for the Australian mining industry.

As the Swedish manufacturer’s SmartROC CL drill rig arrives on Australian shores this quarter, it does so after positive testing in the Northern Hemisphere.

Atlas Copco believes the SmartROC CL, which it launched on the international stage in the second half of 2016, might be the company’s most efficient drill rig yet, after it was rigorously tested in tough conditions in eastern Finland.

The test site was in the Northern Hemisphere’s largest source of apatite, a mineral that defines the rank of five-of-10 on the Mohs hardness scale, according to the company.

Mattias Hjerpe, Atlas Copco’s product manager for the SmartROC CL, said it was crucial that field tests were tough.

“It’s when things don’t work that we can learn and make improvements. We’re really satisfied when we get performance numbers like these, despite the challenging conditions,” he said.

“It’s good to know that the results we got here can actually be even better for many of our customers.”

After an autumn of demanding operational hours in Finland, the

SmartROC CL showed impressive numbers, Atlas Copco continued.

Fuel consumption was below initial targets and the SmartROC CL also demonstrated a penetration rate up to 50 per cent greater than previously attainable with conventional DTH rigs. The average penetration rate recorded during testing reached over one metre per minute with a 165mm drill bit.

Even in harsh conditions, like in Finland, the SmartROC CL maintained an impressive production speed with low fuel consumption, Atlas Copco added.

Hjerpe said optimisation of the rig’s engine power, combined with the opportunity to utilise Atlas Copco’s COPROD drilling technique for high penetration and accuracy, made for an advantageous rig.

“Many of our mining customers who use the DTH drilling method in Australia, South Africa, Latin America, Scandinavia and other regions can now lower their fuel bills and boost their productivity at the same time,” Hjerpe said.

“Since the current economy can be hard on miners, an efficient low-fuel drill rig like the SmartROC CL will help for sure.”

The Australian industry will soon find out exactly how much the drill rig will help when it arrives on sites around the country.

Atlas Copco also recently launched the Dynamic tunnelling package, new automation software which it says improves accuracy of excavation as drill plans are always fitted for the current section.

With this software, the

drill rig can create its own drill plans directly at the face of the tunnel, according to Atlas Copco.

By downloading the contours of the tunnel or mine drifts, together with a drill rule file, the drill rig can create drill plans tailored for the section it is navigated within.

Atlas Copco product manager, boomer Johan Jonsson said, “Today, in tunnelling projects, especially large ones in urban areas, there are differences in the cross section.

“You go up and down with your drill plans. The Dynamic tunnelling package helps you so you don’t have to go up and down anymore. The drill plan is made on the drill rig and at the face.”

The software package has also been tested in the Northern Hemisphere, by Atlas Copco customer Veidekke at the RV80 project in Norway.

“There’s a tunnel that’s two times 2.5 kilometres, where we are going to excavate about 500,000 cubic metres of rock,” Jon-André Nilsen, Veidekke manager surveying technic underground, said.

“Dynamic tunnelling package makes our drilling more precise.

We can make changes to drill plans directly on the rig. We can move cuts or drill-holes. We are more flexible at the tunnel face compared to making all changes at the office.

“We use the Dynamic tunnelling package to make niches (areas of the tunnel with larger cross section). This makes the work more precise.”

Today, all tunnelling models exist in a 3D model. Previously, the model was imported into Atlas Copco’s underground manager software for

MANY OF OUR MINING CUSTOMERS WHO USE THE DTH DRILLING METHOD IN AUSTRALIA, SOUTH AFRICA, LATIN AMERICA, SCANDINAVIA AND OTHER REGIONS CAN NOW LOWER THEIR FUEL BILLS AND BOOST THEIR PRODUCTIVITY AT THE SAME TIME” AUSTRALIANMINING

20

MARCH 2017

DRILL, BLAST & GEOMECHANICS

the drill plans to be implemented manually.

With the Dynamic tunnelling package, the 3D model is still imported but now only a set of rules need to be set up in underground manager. The set of rules and the 3D model are then brought to the drill rig

by USB or WiFi connection.

The drill rig will then make its own drill plans based on where in the tunnel it is navigated and according to the tunnel model, Atlas Copco outlined. Due to this, the drill plans will always be precisely made for the section and size that should be excavated.

Atlas Copco’s new solutions for

the drilling sector arrive as it has announced plans to split into two companies next year, with the mining and construction tools division shaping as the basis of a new entity.

NewCo, the working name for the spin-off company, will focus on mining and civil engineering customers and include the mining

and rock excavation technique business area and the constriction tools division, according to Atlas Copco.

The business has about 12,000 employees and annual revenues of 28 billion krona ($4.2 billion). Atlas Copco will propose the split at its 2018 annual general meeting.

If a split does occur, the remaining Atlas Copco business would focus on industrial customers and include the compressor technique, vacuum technique and industrial technique business area, plus the portable energy division and speciality rental division.

Atlas Copco president and chief executive officer Ronnie Leten said the two businesses have different demand drivers and demand characteristics.

“A split will increase their respective abilities to add value to customers, grow the business and attract talent,” Leten said.

If approved by shareholders, the split would take place through a share distribution, whereby Atlas Copco shareholders receive shares in NewCo in proportion to their existing stake.

Meanwhile, Atlas Copco has appointed Mats Rahmström as its new president and CEO, effective April 27. Rahmström will replace Leten, who has resigned after eight years in the position. AM

Process Density Measurements DensityPRO series of gauges Increase safety and lower capital costs with easy-to-use, non-contacting process density gauges. The Thermo Scientific™ DensityPRO series offers accurate density measurements, capable of the highest precision at the widest temperature range.

Find out more at thermofisher.com.au/IP For Research Use Only. Not for use in diagnostic procedures. © 2017 Thermo Fisher Scientifi c Inc. All rights reserved. All trademarks are the property of Thermo Fisher Scientifi c and its subsidiaries unless otherwise specifi ed. 1485211219

AUSTRALIANMINING

21

MARCH 2017

AUTOMATION & REMOTE CONTROL

2017

AUSTRALIAN MINING PROSPECT AWARDS

NOMINATIONS NOW

OPEN To nominate, please go to

www.prospectawards.com.au Sponsors

AUTOMATION & REMOTE CONTROL

ATLAS COPCO BECOMES AUTOMATION READY ATLAS COPCO’S NEW MINETRUCK MT65 IS ALREADY LEAVING ITS MARK ON AUSTRALIAN MINE SITES. EXPECT THIS TO CONTINUE AS THE INDUSTRY MOVES TOWARDS AN AUTONOMOUS FUTURE. BEN CREAGH WRITES.

B

efore development had even started on Atlas Copco’s Minetruck MT65 it had an advantage – it would be based on the proven MT6020.

With haulage costs representing a crucial item on a miner’s balance sheet, MT6020 stood out as a truck powerful enough to carry heavy loads over long distances, yet also compact and robust enough for challenging ramps. Since its launch in 2008, more than 220 MT6020s have been delivered to Australia.

Reflecting on the MT6020, Atlas Copco underground product manager Shaiful Ali said it gave miners an opportunity to increase their tonnagekilometres per hour, while also saving on costs by reducing the size of their fleets.

“Now, MT65 is taking those principles to the next level, combining the features that made its predecessor successful with the latest technologies and safety features,” Ali told Australian Mining.

“Based on years of knowledge from MT6020, MT65 offers built-in reliability, and high-speed on grade and increased capacity to improve AUSTRALIANMINING

mine site productivity. It is also now automation ready with the inclusion of our Rig Control System (RCS).”

Atlas Copco developed MT65 to be its strongest and smartest truck yet. The truck weighs 46.3 tonnes, measures 2.785 metres in height, has a width of 3.5 metres, and is 11 metres long. It is driven by a Cummins QSK19 EPA Tier 2 engine, with a 567kW power rating, and has an 844-litre fuel tank capacity.

Productivity boost

An obvious upgrade on MT65 over its predecessor is a larger tray, which is

23

MARCH 2017

designed to carry a 65-tonne load, for easy release of materials and for fast down cycles.

Atlas Copco has built the dump box with optimised angles and wear-resistant steel for longer operational life.

Ali said MT65 delivers more efficient ramp performance by including Atlas Copco’s proven powertrain for consistent haulage and an upgraded hydraulics system that lowers fuel consumption.

“A new feature on MT65 is a load-weighing capability that allows operators to monitor the size of loads,

AUTOMATION & REMOTE CONTROL

which are displayed at the back and front of the cabin via beacon lights,” he said.

“Inclusion of Atlas Copco’s Rig Control System, which has been a key feature on the company’s drill rigs for many years, also lifts productivity and provides crucial automation capabilities for the future of mining.”

With RCS, production logs and other data can be saved to a USB stick in the MT65’s cabin. RCS also connects to Atlas Copco’s telematics system, Certiq, which provides a summary of the machine’s performance, loading maintenance systems and other maintenance issues on an online portal.

Automation ready

The addition of RCS means MT65 is automation ready. Automation

a tyre monitoring system, a machine warm-up function, a machine protection system and an over-speed protection system.

and safety. Service information that operators require can also be obtained from the RCS screen in the cabin.

The key engine filters are gathered and accessible in the smart service bay, while test gauges are integrated on-board for pressure checks.

Other features that prepare MT65 for service include: a tilt able cabin for easy access to the engine compartment; open hoods and hatches for easy reach and cleaning; and onboard diagnostics via RCS.

Service convenience

Comfy cabin

ATLAS COPCO DEVELOPED MT65 TO BE ITS STRONGEST AND SMARTEST TRUCK YET. THE TRUCK WEIGHS 46.3 TONNES, MEASURES 2.785 METRES IN HEIGHT, HAS A WIDTH OF 3.5 METRES, AND IS 11 METRES LONG.” is a mining trend that continues to emerge and Atlas Copco has ensured its latest truck is prepared, Ali added.

“MT65 is the second Atlas Copco truck that utilises RCS after MT42.

RCS not only enables automation, but also integrates with the company’s smart battery/hybrid/technology and its loaders and drilling equipment,” Ali said.

Other smart, optional solutions for MT65 include Certiq’s maintenance planning and reporting capabilities, AUSTRALIANMINING

The serviceability features of MT65 have been enhanced with the aim of making the truck the leader of this segment.

Daily service checks are undertaken from ground level for improved operator convenience

24

MARCH 2017

The FOPS/ROPS certified MT65 cabin was designed for both operator safety and comfort, with all controls positioned within their reach and being simple to manage.

“MT65’s front axle is the foundation of the comfortable environment as it

AUTOMATION & REMOTE CONTROL

involves a separate suspension system that absorbs uneven ground, reducing vibrations and minimising operator fatigue. Driver comfort is enhanced even further by improved steering sensation for added control,” Ali explained.

“Noise inside the cabin has been significantly reduced, with sound levels staying below 80 decibels, due mainly to the upgraded hydraulics system and the addition of several smart solutions.”

These features are complemented by the presentation of information to the driver via a seven-inch colour display, as well as an additional monitor for reversing and the truck’s right-hand side.

Safety focus

Atlas Copco has maximised the safety features on MT65 to provide a more secure underground operation and better working environment.

In addition to the comfort features of the cabin, its safety has been enhanced by illuminated steps that guide operator movement, Ali said.

“MT65’s brake system features spring-applied, hydraulically released (SAHR) brakes in the wheel ends and a built-in retarder in the transmission.

Automatic brake testing and logging via an intuitive guide is also included,” he said.

The emergency stop buttons are found in-line with the machine, while open brake apply is standard, meaning the truck will shut down at low speeds if the door is left open.

There is a safety support stand function by the cabin tilt, articulation and dump box to keep the operator a safe distance from the hazard area.

Hand rails are fitted as standard throughout the vehicle.

Solitherm

Solitherm

Available in Cooling Capacities of 320W - 1500W

Available in Cooling Capacities of 320W - 4000W

Slim Line Series ...KEEP COOL!

Positive impression

MT65 is already leaving its mark in Australia after being trialled at St Barbara’s Gwalia gold mine in Western Australia. Gwalia is one of the deepest underground gold mines in Australia, making it an ideal site to test the new vehicles.

The mine’s Hoover Decline was extended to about 1600 metres below surface in 2016 to allow St Barbara to produce from a range of sources.

St Barbara, with contractor and operator Byrnecut, have focused on delivering productivity improvements at Gwalia in recent years as a high-cost operating environment and fluctuating commodity prices continued to affect the gold industry.

With a hauling distance of about 10 kilometres, the Gwalia mine operators are always looking for new equipment that moves ore more efficiently.

For this reason, Byrnecut accepted an opportunity to trial MT65 at Gwalia for four months during the second half of 2016.

And the new truck didn’t disappoint Byrnecut, which was already familiar with the Minetruck series, having utilised MT6020 at Gwalia.

The 65-tonne truck carried an average 65.7-tonne payload for over 2000 hours at similar speeds to the MT6020s during the trial.

Based on this performance, MT65 delivered a 10 per cent tonnekilometre (TKM) increase over the existing fleet, as well as a reduction in fuel use.

Byrnecut has since ordered two MT65s for Gwalia and is one of the first Australian companies to receive delivery of the model. AM

Compact Series

NEW STOCK AVAILABLE

NEW STOCK AVAILABLE

ENCLOSURE CABINET PRECISION COOLING Seifert Systems - Precision air conditioning for process control cabinet applications. Designed to keep your electronics cool and operating at optimum performance. Seifert air conditioning incorporates filter less technology. No need to change filter mats means less maintenance and less down time. Cooling capacities range from 200W to 4kW. Seifert also offer heat exchangers, heaters and fan systems - complete thermal solutions.

A 105 Lewis Rd, Wantirna South VIC 3152

E info@seifertsystems.com.au

T +61 3 9801 1906 / F +61 3 9887 0845

AUSTRALIANMINING

25

MARCH 2017

seifertsystems.com.au

MAINTENANCE AND MONITORING

MINIMISING DOWNTIME WITH EQUIPMENT INSPECTIONS IN CURRENT MARKET CONDITIONS, IT IS COMMON FOR MINING COMPANIES TO EXPLORE WAYS TO EXTEND THE LIFE OF THEIR MINING EQUIPMENT, ACCORDING TO ERIEZ.

W

ith the pressures of a challenging economy and the capital expense of new equipment, many mining companies are extending the life of their installed equipment by leveraging Eriez service capabilities to repair and refurbish existing units rather than buy new.

There is a lot to consider when making this decision, especially as it pertains to the Eriez equipment line, which includes vibratory feeders, metal detectors, suspended electromagnets, magnetic drum separators and high-intensity magnetic separators.

Eriez OEM technicians can provide free inspections of equipment on-site or at its factory.

While customers must cover travel and freight costs, the company’s personnel can provide a detailed report outlining the next best course of action, whether it is a simple preventative service, replacing some mechanical components, updating electronics, or carrying out complete tear down and refurbishment of the entire separator back to the OEM specifications – including an ‘as new’ warranty.

In some cases, a total replacement is needed, but that is only after consideration is given to several scenarios to get your equipment back on line and into production.

Eriez believes its understanding of the dangers associated with managing the significant potential energy contained within its permanent magnetic separators is unmatched.

The company’s personnel are fully qualified and experienced with the safety measures required to properly handle the dangers inherent to the high-powered magnetic elements, making its equipment one of the leaders in terms of strength and performance.

For safety’s sake, the company always recommends working with its factory staff and representatives.

Eriez should be contacted prior to any dis-assembly, modification, rectification or handling of magnetic equipment to ensure safe procedures

are in place, and to avoid injury to personnel.

Described in the simplest way possible, downtime equals loss of production. As such, an Eriez inspection can help remove downtime from the equation by identifying anything that may ultimately cause a production stoppage.

The company’s on-site and factorybased technicians have the necessary skills and knowledge to service, repair or refurbish equipment so that it is operating again at peak performance, minimising the instance of failure.

Eriez Magnetics is always conducting research and development to bring technology improvements to the industry. With Eriez-based services, whether at the factory or in the field, its new technology and innovations can often be implemented during the rebuild process. Other times these improvements can only be enjoyed once a new product is purchased.

For instance, one of Eriez’s early innovations is the use of an external oil expansion tank on its line of suspended electromagnets (SEs). This attribute ensures that the magnet stays completely submerged in oil and prevents moisture infiltration and coil burn-outs. In other words, its SE magnets run cooler, are stronger, and last longer than competing varieties.

Working with Eriez, this feature can even be added to a competitor’s piece of equipment if in its factory.

Similarly, the magnetic power of new magnetic drum separators may be incorporated into the old model. With vibratory feeders, newer designed products now come equipped with energy-saving components that should be explored before rebuilding or buying new.

Even older metal detectors can be improved with updates in software and the addition of smart phone technology.

Optimum operating efficiency and equipment’s useful life depends greatly on the individual piece of equipment, its working conditions, duty and operating environment.

Since tramp metal protection and magnetic process equipment represent a significant capital AUSTRALIANMINING

investment, annual inspections of equipment is highly recommended to identify maintenance issues or process improvement opportunities.

Regular equipment checks, in-plant certifications and detailed reports will help minimise equipment problems and achieve maximum productivity.

Eriez only uses original OEM parts, remanufactures equipment to

refurbish all its equipment quickly, accurately, and safely.

Eriez is recognised as a world authority in advanced technology for magnetic, vibratory and inspection applications. The company’s magnetic separation, metal detection, x-ray, materials feeding, screening, conveying and controlling equipment have applications in the

BEFORE

AFTER

original specifications and offers ‘as new’ warranties.

It employs trained OEM technicians and has all the machining, fabricating and welding capabilities necessary to service, repair or

26

MARCH 2017

process, mining, aggregate, plastics, metalworking, packaging, recycling and textile industries. It manufactures and markets these products through 12 international facilities on six continents. AM

, D E E N U .

O T Y E R R E ER N. V E F O T N S A I O H W D IT RCH A N I E F ES TH

RELY ON AUSTRALIA’S MANUFACTURING, MINING AND INDUSTRIAL HUB 70,000 monthly users can’t be wrong. Find what you’re looking for with over 12,000 business listings and 8,000 specific product listings. Access relevant information and resources, empowering you to make a qualified purchase decision. You can always rely on your industry hub.

FERRET GROUP OF WEBSITES

F E R R E T.C O M . AU

COMMUNICATIONS

MORE THAN A MOBILE PHONE MARTIN CHAPPELL, GENERAL MANAGER AUSTRALIA AND NEW ZEALAND COMMERCIAL CHANNELS, MINERALS AND ENERGY, AT MOTOROLA SOLUTIONS, SPEAKS TO AUSTRALIAN MINING ABOUT THE BENEFITS AND CHALLENGES OF IMPLEMENTING COMMUNICATIONS TECHNOLOGIES ON SITE. SHARON MASIGE WRITES.

O

ne of the first things often associated with Motorola is mobile phones, especially looking back not quite so long ago, when flip phones like the Motorola Razr dominated the market.

With an 85-year history, the company has always focused on communication – particularly radio communication – and has serviced a whole range of sectors including emergency departments, retail, hospitality and mining.

“One of the beauties of our business is not a lot of people actually see us day to day,” Martin Chappell, general manager Australia and New Zealand commercial channels, minerals and energy at Motorola Solutions, told Australian Mining.

“You don’t see our products and services out there but it’s probably touched your life today already and you’re not even aware of it.”

The company employs around 20,000 people, with its head office

in Chicago and regional head offices in Melbourne and Singapore. It has been operating in Australia for more than 40 years.

While Motorola specialises in radio communications, Chappell said it aimed to extend into applications on various devices; expanding from pure hand-held or mobile radio devices and digitising its products to run on different platforms that are both consumer and industrial grade.

Communications challenges on site

Chappell said the biggest communications challenge for mine sites was continuity of service; getting enough coverage so management can talk to or locate employees.

“In the last several years, applications through digitisation of radio products has allowed us to be able to locate people,” he said.

“I can use a specific example

AUSTRALIANMINING

of a mine just out of Emerald in Queensland where they do blasting nearly every day. Obviously they need to know where their staff are before they go and blast.

“In the old days it was via voice, now it’s via voice as well as GPS tracking.”

As miners constantly look for ways to reduce downtime on site, being able to easily locate workers and equipment falls within that category.

Proper communications services are also a key part of improving worker safety, which remains a top priority as companies continue to ensure every worker goes home safely after every shift.

The remoteness of mines presents another challenge for communications technology, particularly as miners continue to go further and further in search of mineral resources.

Chappell spoke about the company’s radio network which he referred to as a ‘campus device’ - that could

28

MARCH 2017

be placed on a mine site, providing extended coverage.

“What it’s doing now is it’s also linking back to head offices,” Chappell said.

“So if we look at the IROC (Integrated Remote Operations Centre) system in WA, which is through BHP (Billiton), what that does is have a multitude of mines which all talk back to a central command system based in Perth. So they might be talking from the Pilbara or wherever back to Perth.”

The IROC system controls all BHP’s Pilbara operations, including its rail, stockyards and port facilities.

The system also facilitates the growing shift toward automation in the mining industry.

COMMUNICATIONS

“From that centralised position in Perth, they’ve got autonomous trucks going now, so there’s a lot of automation that’s coming from these centralised command centres,” Chappell said.

To further overcome the communications difficulties at remote sites, Chappell added that the company had devices that could switch to public networks to provide better coverage.

“Now you can have devices that can roam off of those campus sites or your mine sites and onto public networks where you haven’t got coverage from your dedicated network,” he said.

“When you leave or go into town and you’re a manager, you still need to be in touch with the mine, which could be 200km away. You can roam onto the public network and use it as a radio [and] log back securely into your private system.”

Although Apple and Samsung currently rule the commercial consumer market, Chappell reinforced the inability of their phones to handle conditions on site. He mentioned the Motorola Lex L10, a hybrid mobile phone radio device that is more suitable, as it is rugged and longer lasting.

“That’s a device you pick up and think it’s a smartphone,” he said.

“Sure it’s a little bit thicker and a little bit more rugged but to the untrained eye, that’s not a big big difference. What that is, is essentially a product that has two-way radio on site and when you get to town, it’s your smart phone.”

Chappell added that the device is LTE (4G) capable and can use two sim cards.

“When you’re on your mine site you can use it to be on your lock down radio network or LTE network.

When you’re in town you roam on to

Vodaphone, Optus, Telstra, whatever it is and use the application to get back into your dedicated system on site.”

“It works in water and is dust proof,” he said, “you can drop it from three levels and it won’t break.

“Those are the sort of devices that we’re pushing down into the market in terms of mining.”

WHEN YOU LEAVE OR GO INTO TOWN AND YOU’RE A MANAGER, YOU STILL NEED TO BE IN TOUCH WITH THE MINE, WHICH COULD BE 200KM AWAY. YOU CAN ROAM ONTO THE PUBLIC NETWORK AND USE IT AS A RADIO [AND] LOG BACK SECURELY INTO YOUR PRIVATE SYSTEM.”

Communications across Australia

Chappell believes Australia is at the forefront globally when it comes to implementing wireless communications on site.

“This goes back 30-40 years for analogue radio systems that were rolled out through lots of mines across Australia,” he said.

“Most of them now have been upgraded to digital for various reasons, mainly to get greater coverage, better voice quality and to bring on a suite of applications, and those applications deliver a multitude of benefits to the mining companies.

“So I think Australia has been early adopters in terms of heading down that digital road on two-way radio and enjoying the benefits that you get from that.”

In terms of the future of mining communications, Chappell considered more progress would happen through applications.

“I think it’s probably more around the application side, so the benefits that they’re getting out of apps in terms of worker safety, in terms of journey management - being able to track the workers from point A to point B - doing that autonomously so it’s automatic,” he said.

He also spoke of blast tones on site to aid workers.

“They can send out blast tones over the network [so] that people are

Phone: 1800 082199 sales@lacrossetechnology.com.au http://shop.lacrossetechnology.com.au

AUSTRALIANMINING

29

MARCH 2017

COMMUNICATIONS

warned that there’s actually blasting that’s taking place in certain areas,” he added.

“That’s where it’s all heading, and I think it’s heading towards workers being focused on their particular job at that point in time as opposed to having to muck around with technology to make sure it’s working.

So there’s a lot of applications around that, in terms of keeping the safety of workers at the forefront.”

While Motorola has a mining focus, it also has offerings for the oil and gas industry, such as the Tetra ATEX MTP8000EX portable radio, which has a higher standard to stop any chance of it sparking or igniting a fire.

Although it invests in all three of its communications platforms, one of its main focuses is its DMRs. “There’s a big emphasis on digital mobile radios, and then from an

IT WORKS IN WATER AND IS DUST PROOF, YOU CAN DROP IT FROM THREE LEVELS AND IT WON’T BREAK.” Motorola’s communications platforms

Chappell explained that Motorola has three different communications platforms; the P25, which is predominantly in the public safety arena; the Tetra, which is a European standard; and digital mobile radio (DMR).

LTE perspective, Motorola’s doing a lot of work around LTE in terms of infrastructure, to deliver that higher bandwidth data across mine sites or indeed across public safety.”

In terms of delivering the right communications on site, Chappell emphasised selecting platforms that are standards based and companies

AUSTRALIANMINING

that have been in the business for a long time.

“Another way that they can ensure it is by working with the vendor and the vendors’ partner community who have been in the business for a long long time,” he added.

“You would also be looking towards a company and a partner who can not only deliver the products and the system from the outset, but support it through its lifespan, whether that be 10, 15 or 20 years.”

A glimpse ahead

While the company looks ahead at further developing its DMR range, it also has big plans for its software capabilities, especially in analytics and predicting events to increase worker safety.

“Motorola talks a lot about that in terms of its public safety business and how we are now analysing and predicting for crimes going to take place in a particular area. That is also starting to play into the mining space where we can predict a potential

30

MARCH 2017

accident happening or collisions of vehicles,” Chappell said.

“So lots and lots of emphasis over the next year to 24 months around what those pretty significant software suites can do in predicting as well as getting a return on investment, journey management, route management, all those type of stuff that mining businesses are acutely aware of these days as they continue to further drive costs down and improve their ROI.” The company has already seen a lot of success in its public safety business over the past year in the mining sector. It has, secured contracts with BHP Billiton Mitsubishi Alliance (BMA) in Queensland’s Bowen Basin, BHP’s rail business in WA’s Pilbara, Wesfarmers and a yet to be identified major international oil and gas producer.

With technology constantly evolving and upgrading, who knows what will be next for radio communications. AM

NOMINATIONS NOW OPEN 11 MAY 2017

MELBOURNE WWW.ENDEAVOURAWARDS.COM.AU

SOFTWARE AND HARDWARE

WHEN LIGHTNING STRIKES LIGHTNING CAN POSE SERIOUS RISKS TO WORKERS ON MINE SITES. TESA ELECTRONICS DIRECTOR ROBERT BURSTALL TELLS AUSTRALIAN MINING ABOUT HOW THE COMPANY’S NEW STRIKEALERT LIGHTNING DETECTION DEVICES CAN HELP INCREASE SAFETY IN THE INSTANCE OF A LIGHTNING STRIKE.

A

ustralia is subject to some of the most volatile weather conditions in the world and has experienced some of the hottest days and months on record over the past year.

According to the Bureau of Meteorology (BOM), 2016 continued the trend of high temperatures in Australia by becoming the country’s fourth hottest year on record.

At the same time, however, 2016 also recorded above average rainfall measurements for most of the country, reaching 17 per cent more than usual.

Associated with rainfall is storms, and with storms come lightning, which is a threat to mine sites. Back in 2012, two FIFO workers were affected by lightning strikes near Port Hedland in Western Australia,

while working on Fortescue’s Solomon rail mine.

One of the workers, a 24-year-old, was directly struck and suffered burns to five per cent of his body; the other suffered minor neck injuries after he was knocked to the ground.

“There have been many fatalities in the last 12 months related to lightning,” Burstall told Australian Mining. “In fact some statistics in the United States say that lightning kills more people than sharks do.

“It happens anywhere where you’ve got the basis of electricity.

Lightning - bulk lightning - is a positive energy pulse which is a very high average voltage, and it will reach an area of the ground which is also moist, where there’s water mixed with minerals.”

Each day, there are around 100 lightning strikes per second. The

AUSTRALIANMINING

THERE HAVE BEEN MANY FATALITIES IN THE LAST 12 MONTHS RELATED TO LIGHTNING. IN FACT SOME STATISTICS IN THE UNITED STATES SAY THAT LIGHTNING KILLS MORE PEOPLE THAN SHARKS DO.” United States National Oceanic and Atmospheric Administration notes that lightning can heat up to nearly 28,000°C, with some reports claiming that temperature is up to five times hotter than the sun’s surface.

During Queensland’s summer storms in December last year, the state’s south east coast recorded more than one million lighting strikes, according to Energex. Some of these struck homes, caused injuries and killed a backpacker at the top of Mount Warning.

32

MARCH 2017

To help reduce the likelihood of being struck by lightning, TESA Electronics has released two lightning detection devices - the StrikeAlert LD1000 and StrikeAlert HD LD3000.

TESA Electronics director Robert Burstall said the LD1000 was designed for more general recreational purposes. It has a 180° scanning range and users must face the direction the lightning is coming from.

The LD3000, however, is for industrial use and has a 360° scanner.

SOFTWARE AND HARDWARE

“This particular model is targeted obviously for industry where there’s a lot of conductivity, that is, where lightning will strike the ground, such as open cut mines, large vehicles working, and also based on water content in the surrounding areas,” Burstall said.

He explained that lightning strikes were more likely in the mining industry, particularly on sites that deal with metals - both metals that are used and the metals mined - that involve sluicing and where the ground is damp. “[This] is very attractive to the lightning seeking a negative area to dispense its energy,” he said, adding that it would alert the user of any disturbance, cyclonic or otherwise.

Both devices are roughly the same size as a smartphone and are battery powered, lasting roughly 10-15 hours from when they are triggered.

The LD3000 has an intuitive graphical display, allowing operators to visually see the lightning strike distance and the one-hour storm trend; it tracks lightning in all directions and has the option of either an audible or vibrate warning either before (and during) lightning is in striking distance.

The device also has LED indicators that light up accordingly at distances of 38-64km, 20-38km, 10-20km and within 10km. There is

THE STRIKEALERT HD LIGHTNING DETECTOR

THIS PARTICULAR MODEL IS TARGETED OBVIOUSLY FOR INDUSTRY WHERE THERE’S A LOT OF CONDUCTIVITY THAT IS WHERE LIGHTNING WILL STRIKE THE GROUND, SUCH AS OPEN CUT MINES, LARGE VEHICLES WORKING, AND ALSO BASED ON WATER CONTENT IN THE SURROUNDING AREAS.” also the option of selecting the unit to shut off after two hours if no lightning has been detected.

Burstall said it has generated a lot of interest in the mining industry.

“I know there has been considerable interest in the mineral mining fields - gold and otherwise pretty much all the minerals for this type of alert device,” he said.

While lightning cannot be prevented, Burstall emphasised the importance of using the device to protect workers on site.

“It’s a safety precaution - a top level safety precaution - against any fatality or damage that can occur personally and otherwise wherever the person may be,” he explained.

“There are also horrendous soundwaves that are created and

Engineering Products & Services

AUSTRALIANMINING

33

MARCH 2017

pressure waves that are created by these strikes that can damage humans.”

Burstall added that it was also useful in the emergency services as lightning also causes fires.

“That’s one of the main problems in Australia outside the mining area,” he said. “We have sold a considerable amount of these devices to different fire safety brigade areas.”

In addition, Burstall identified several steps operators can take to minimise the chance of getting struck such as avoiding high-ground, water, solitary trees, open spaces and metallic objects. And if they are in a large vehicle to ensure they close their windows and are sitting in a non-metal seat. AM

MATERIALS HANDLING

ENGINEERING IMPROVED CONVEYOR MAINTENANCE PROCESSES ESS’ NEW RETRACTABLE IDLER FRAME DESIGN SIMPLIFIES CONVEYOR MAINTENANCE, REDUCES COST AND ENHANCES WORKER SAFETY.

L

eading Australian engineering firm ESS Engineering Services transformed a design challenge at a major ship loading terminal into an opportunity to improve the maintenance process for the client while increasing worker safety.

Conveyor systems in all industries, including mining, ship loading and power stations, require maintenance to avoid critical disruption to operations.

Performing conveyor roller change-outs is an important aspect of conveyor system maintenance with conventional practices requiring workers to operate at height using scaffolding and fall arrest equipment.

Such processes are not only labourand time-intensive, but also have worker safety implications with the maintenance crew required to change the rollers at height in difficult conditions.

Hazard control measures required in traditional roller change-outs not only increase time

and cost of basic maintenance but also involve a larger crew size of up to three workers to change the rollers as well as scaffolders to erect and dismantle work platforms.

Design challenge

ESS’ client sought to upgrade over 1000 idler frames on the conveyor system at the ship loading terminal to simplify maintenance for the crews responsible for roller change-outs.

The ESS product development team worked with the client to develop an updated sliding idler system that would eliminate the hassle

AUSTRALIANMINING

and engineer out the existing hazards from roller replacement.

Key concerns that needed to be addressed during the idler frame design process included safety issues related to working at height in awkward positions, manual handling, pinch points and risk of injury; access constraints in hard-to-reach areas; and difficulties in roller removal from idler frames.

As the exclusive licensed manufacturer of Martin Engineering USA, the original developers of TRAC Mount Idlers, ESS was equipped to bring its experience and expertise to the design table. For the ship loading terminal upgrade, ESS refined the original Martin Engineering design for idler frames, retaining the successful core principles while increasing the durability and safety aspects.

34

MARCH 2017

ESS Quick Change Trac Mount retractable idler frames ESS designed and manufactured a new idler frame that simplifies roller change-outs on any elevated conveyor or in restricted access areas. The upgraded design is recommended for use in any materials handling facility from underground mines to ship-loading operations over water.

The new ESS Quick Change Trac Mount (QCTM) retractable idler frame is designed to smoothly slide out from the conveyor along a custom-built track and easily disengage the rollers.

Several design features address the safety concerns related to roller change-outs in conveyor maintenance. For instance, the

MATERIALS HANDLING

ESS REFINED THE ORIGINAL MARTIN ENGINEERING DESIGN FOR IDLER FRAMES, RETAINING THE SUCCESSFUL CORE PRINCIPLES WHILE INCREASING THE DURABILITY AND SAFETY ASPECTS.”

wider footprint of the new QCTM retractable idler frames ensures operational stability on the conveyor.

The new ESS frame has a fully enclosed self-supporting design ensuring stability when sliding out. A stopper pin prevents the frame from sliding all the way out from its mounting.

QCTM idler frames are manufactured in both galvanised steel and stainless steel; however ESS recommends stainless steel for better performance and long-lasting service, especially in harsh environments. QCTM frames are also very rigid in service with no movement or vibration.

The frame’s lightweight design allows the worker to safely slide it all the way off its track without requiring any lifting device. Workers can easily access the rollers from the walkways without entering the belt or requiring any scaffolding or fall arrest equipment to carry out roller change-outs.

Making idler maintenance simpler, safer

Upgrading to QCTM retractable idler frames is delivering huge savings to clients in maintenance time and man-hour requirement.

A job that previously required up to three workers and anywhere from an hour to an entire shift to change the rollers on a single idler frame can now be performed by a single worker in less than 10 minutes.

The significant maintenance cost savings not only ensure quick payback for the upgrade investment but also maximise profitability for the company.

By building safety into the design, ESS has minimised the risks of roller change-outs and engineered out the major hazards encountered during conveyor roller maintenance.

The QCTM retractable idler frame is just another example of ESS’ collaborative design process with its development team engaging proactively with the client to design solutions that respond to the functional, operational and safety challenges on site. AM

Maximise Profitability by Maintaining your Equipment Eriez Magnetics offers top quality technical service, repairs and on-site inspections

Most affordable rates in Australia!

Magnet Rebuilds

• On-site Field Service, Inspection and Repair • Skilled handling of potentially Dangerous Magnetic Equipment • Equipment Re-manufacturing • Original OEM Parts • Full “As New” Warranties • Auditing and Reporting

Before

After

Wet Drum Separator Rebuilds

Proudly Australian for 50 years!

Schedule Your FREE Inspection Today!

Before

Visit www.Eriez.com

(Conditions apply)

Call

After

61 3 8401 7400 or email sales.au@eriez.com AUSTRALIANMINING

35

MARCH 2017

PRODUCTIVITY AND EFFICIENCY

CONTINUOUS IMPROVEMENT PROCESSES BOOST BOART LONGYEAR PRODUCTIVITY AN IMPROVEMENT PROGRAM AT DRILLING COMPANY BOART LONGYEAR HAS DELIVERED NOTABLE GAINS IN PRODUCTIVITY AND OPERATIONAL EFFICIENCIES.

B

oart Longyear’s continuous improvement program is proving that small changes, when measured and carried out consistently, can add up to a big impact on productivity and efficiency.

The Hard Work Cycle is a continuous improvement program that uses a system of processes and key performance indicators (KPIs) as tools to ensure the highest productivity and efficiency while safely drilling more straight meters.

A key component of the Hard Work Cycle is the comprehensive suite of reports used to manage individual driller performance, shift performance and project productivity.

Sharing those metric-driven

results with customers enhances communication, transparency and accountability.

“The program has helped us identify what’s important in our day-to-day operations, how we can focus attention on doing those things better, and how those improvements drive the bottom line,” said Scott Beckwith, regional director for Asia Pacific Drilling Services, based in Adelaide.

“By implementing these improvements, we’ve been able to achieve gains in efficiency and productivity.”

The Hard Work Cycle consists of interlocking principles, including: setting transparent KPIs, reviewing KPIs as a team and agreeing on and recording actions, and continually AUSTRALIANMINING

generating, prioritising and implementing ideas.

During implementation, Boart Longyear emphasised participation from everyone, highlighting the benefits of not only improving productivity and efficiency, but also improving safety and communication (between crews and management and the customer) and reducing operating costs.

“It gives us measurable targets and tools that each of us can use to make a difference,” Beckwith said.

“Safety is the right thing to do and always our first priority; every driller deserves to go home safely to their family each day. But safe operations also benefit productivity. If we are safer, we are more productive, because we aren’t spending time

36

MARCH 2017

investigating incidents or dealing with reports or worst-case scenarios, such as lost time and injured employees.”

The Hard Work Cycle also impacts safety by structuring safety conversations. By adding safety discussions to regular Hard Work Cycle meetings, crews are talking about incidents, near misses and concerns.

They are also generating ideas about safer ways to do things, how to work better as teams, and how safe operations increase productivity.

One of the many improvement ideas implemented over the past 12 months involved using prestart meetings more effectively.

The improved format is now being standardised across all Boart

PRODUCTIVITY AND EFFICIENCY

Longyear drilling sites.

Structured meetings between each level of operations also facilitate ongoing discussions and resolutions of any productivity or safety concerns.

Another example was a special display board to improve communication between the drilling crews and mine operations.

Supervisors use information posted from mining operations to prioritise and ensure the maximum number of drills are turning.

Mine operations use the information to ensure sites are prioritised and ready for drilling.

This process resulted in a significant increase in the number of rigs turning per shift and in the total metres drilled per shift, which was tracked and measured to ensure effectiveness.

In the beginning, employees were asked to do a few things differently – help generate improvement ideas, have a weekly review, and adopt new practices – but the focus remained the same – being safe, getting productive metres and helping each other.

According to Beckwith, the program is succeeding because supervisors and workers have taken ownership of it.

When the program was introduced, supervisors and drillers were charged with implementing ideas

to increase drill time and rate, improving processes and results rapidly, and discussing productivity metrics regularly.

“We are brainstorming ideas on a daily basis,” Beckwith added.

“By changing the mindset to continually look for improvements in the way we work, we get a steady flow of ideas that deliver a lot of value.”

A Boart Longyear driller in Canada recently won an award for suggesting a slight schedule change that resulted in a significant increase in productivity. This change decreased the drill start time and increased the average total metres drilled per shift.

Measuring and tracking also gives the company the opportunity to identify trends, implement corrective actions, and demonstrate transparency to customers. A win-win for everyone.

A local Boart Longyear supervisor, Dave Barrett, had an idea for improving a part on underground coring rigs. His design was engineered and tested and is now being used across the Asia Pacific region, delivering significant efficiency gains.

Global implementation of the new design is in the works.

Beckwith emphasises the importance of measuring productivity for each driller, identifying actionable items and who is responsible for each

AUSTRALIANMINING

action, and following up.

“We graph drillers on each KPI metric, with drill logs, bit penetration logs and productivity measures. We see which drillers drill faster and then find the how and why so we can replicate it where it makes sense,” Beckwith said.

“It promotes healthy competition and opens up conversations about

37

MARCH 2017

what works and how we can strive to continually do things safer and better.

“By involving everyone, the Hard Work Cycle has empowered our drillers and demonstrated that we can get big results from small changes.

It’s rewarding for the guys to see the difference their ideas are making, and we think it’s imperative to recognise them for their efforts.” AM

PRODUCTIVITY AND EFFICIENCY

DELIVERING NEW SERVICE CAPABILITIES TO QUEENSLAND MINING MINING COMPANIES IN QUEENSLAND WILL BE ABLE TO REPAIR AND RETURN KEY EQUIPMENT TO THEIR OPERATIONS MORE EFFICIENTLY WHEN SEW-EURODRIVE’S LATEST AUSTRALIAN SERVICE CENTRE OPENS IN MACKAY. BEN CREAGH REPORTS.

S

EW-EURODRIVE is set to help mining and bulk materials handling companies in North Queensland overcome service, repair and maintenance obstacles that often plague the region with its new Mackay service centre.

In the past, mining companies were regularly forced to transport their transmission and motor control systems and parts to major cities, or even interstate, for maintenance or repairs. This process usually meant costly extended downtime, as well as additional costs due to the logistics involved, for the companies.

The German headquartered company has developed its new Mackay facility, which is set to open in March, to help relieve this issue by offering several service solutions not previously available in the region.

An example of this is the inclusion of advanced load testing for gearboxes and complete drive assemblies at the centre, a service

not previously available in not only Mackay and the surrounding region, but throughout Queensland as well.

According to SEW-EURODRIVE, the load testing service will deliver a breakthrough capability to the mining industry in the state by offering tests for up to 500 kW power and up to 600,000 Nm torque.

Mining companies in the region were previously faced with significant downtime and high service costs to undertake this level of load testing, according to SEW-EURODRIVE Far North Queensland operations manager Daniel Dallari.

“Until now, industry in the region had been either sending the overhauled drives interstate for load testing or relying on local spin testing,” Dallari explained.

“The weakness of spin testing is the potential of defects that will only be revealed after the unit is back in operation, with all the costs and downtime related to changing the unit over again.”

AUSTRALIANMINING

UNTIL NOW, INDUSTRY IN THE REGION HAD BEEN EITHER SENDING THE OVERHAULED DRIVES INTERSTATE FOR LOAD TESTING OR RELYING ON LOCAL SPIN TESTING.” Dallari said the purpose of load testing gearboxes was to ensure reliability of operations and processes. The testing loads the bearings and gearing, avoiding gear mesh backlash that affects vibration analysis, and ensuring fast Fourier transform (FFT) reading will identify the potential of bearing, gear or shaft defects, he added.

“Loaded gear tooth patterns will detect potential misalignment, including misalignment caused by load, speed or temperature. Load testing also allows measuring noise levels and checking compliance with noise requirements,” Dallari said.

SEW-EURODRIVE collaborated on the load testing system with Melbourne-based CNC Design,

38

MARCH 2017

which has extensive experience in GEARTest load testers for both industrial and wind turbine gear units in Australia and overseas.

Technologically advanced facility

SEW-EURODRIVE’s Mackay facility will also feature a range of

PRODUCTIVITY AND EFFICIENCY

other new and emerging technologies and services not readily available in the region. For example, replacing or re-engineering parts for older gearboxes will be made easier by engaging the new facility, Dallari explained.

“When looking at the mining operations in the area, there is probably one common denominator for most of them. That is the use of old series gearboxes for which replacement or even parts may be difficult, if not impossible, to obtain,” Dallari said.

“Some gearboxes had gears replaced with locally cut gears that could not capture microgeometry and gear tooth correction factors. This results in a reduction of the torque rating of the unit.”

SEW-EURODRIVE will offer mining companies and service providers with solutions to replace gears in matched pairs with the company’s technology.

“SEW-EURODRIVE will measure the gear pair macrogreometry and engineer a new gear pair with equal or higher torque rating that will fit in lieu of the old gears with

no other modification required,” Dallari explained.

The facility will also deliver the potential to engineer and supply identical drop-in replacements, he added.

“Identical drop-in replacements will require no modifications on site as they will fit in the same footprint and envelope of the old gearbox,

AUSTRALIANMINING

including same shaft dimensions,” Dallari said.

“This solution is extremely beneficial when the existing gearbox can’t be procured anywhere, but also when operations requirements can’t be met by existing brands.

“Just as an example, we are currently designing a drop-in gearbox that will fit in lieu of two different

39

MARCH 2017

gearboxes allowing the site to reduce the number of spares.”

Regional promise

Despite the mining downturn and economic concerns throughout Queensland and Australia in recent years, SEW-EURODRIVE will open the service centre optimistic about the future prosperity of the industry and the region.

While still relatively new in Mackay, Dallari believes the mining industry is gaining momentum again and there is renewed confidence in the area.

“The downturn showed everybody that long-term business comes from sensible planning, sustainable growth and efficient use of resources,” Dallari said.

“The mining industry, together with the sugar industry, represents remarkable potential for this service centre. This year SEWEURODRIVE celebrates 35 years in Australia and we can display a proven track record of wise investments under the guidance of our farsighted shareholders, this service centre being the most recent.”

Even with its newest service centre only on the verge of opening, Dallari said SEW-EURODRIVE was already contemplating expansion plans in Mackay to capitalise on the large facility it had developed.

He said the 2000-square-metre premises allowed for future growth and would allow the team to expand in the future.

“The service centre is already equipped with the state-of-theart equipment, including load testing, gearbox rotating machines, automated test panel, threelevel filtration unit and much more, but rest assured that SEWEURODRIVE will further invest if new technologies become available,” Dallari concluded. AM

URANIUM

URANIUM PROJECT APPROVALS BOLSTER SECTOR AMID GLOBAL DOWNTURN WESTERN AUSTRALIA HAS NOW APPROVED FOUR URANIUM PROJECTS AND IT LOOKS MORE LIKELY THAN EVER THAT THE STATE WILL FINALLY HAVE A PRODUCING OPERATION.

T

imes have been tough in the global uranium market for a while now.

Since the Fukushima disaster in Japan in 2011, excess global uranium supplies have kept prices for yellowcake at record lows, forcing mining companies to close mines, abandon projects and significantly lower costs to adjust to the challenging environment.

In Australia, however the longterm future of the uranium sector

looks promising for the country’s mining industry, once/if yellowcake turns around.

There are now four projects in Western Australia that have been approved by the state for development.

The latest uranium prospect approved was Cameco’s Yeelirrie project in the Goldfields region.

Yeelirrie actually didn’t satisfy all of the Environmental Protection Agency’s (EPA) requirements, missing out on one of its nine

AUSTRALIANMINING

key environmental factors.

However, the Canadian company was given the go-ahead to advance the project once the broader economic and social benefits were also considered by the state.

Despite WA overturning a ban on uranium mining in 2008 the state is yet to see a mine enter production.

And going by WA premier Colin Barnett’s comments, it is long overdue for the state to make the most of its uranium assets.

“Australia has been producing

40

MARCH 2017

and exporting uranium for peaceful purposes for more than 30 years and it is high time that Western Australia, with our significant reserves, became part of that industry,” Barnett said.

“Australia’s international treaties guarantee that uranium can only be used for peaceful purposes. We should also remember that nuclear medicine is also an important part of our health care system.”

If all four projects proceed, the WA Government believes they will create about 1500 jobs and a potential

URANIUM

$1 billion a year export industry in the state, based on prices rising to economic levels.

Minerals Council of Australia executive director – uranium, Daniel Zavvattiero, said that while the approvals come at a time of challenging uranium market conditions, they are important steps in readying the projects for when new production is required to meet market demand.

“Australia, with almost a third of global uranium resources, is producing around a tenth of world production.

There is an opportunity to expand uranium production and exports as the global nuclear industry expands in the decades ahead,” Zavvattiero said.

To recognise the achievement of having four uranium project proposals advance through the arduous approvals process, Australian Mining looks at each prospect:

Vimy Resources – Mulga Rock Mulga Rock is considered the third-largest undeveloped uranium

deposit in Australia. The project, which is near Kalgoorlie in the WA’s Goldfields region, has a 76.8 million pound uranium oxide resource and an expected 17-year mine life.

The WA Government approved Mulga Rock in December 2016 in an endorsement of the ‘very low environmental impacts’ associated with the project.

“The Mulga Rock project was deemed to have no significant residual impacts upon the environment, if implemented with the required conditions,” the company announced.

The project is expected to create close to 500 jobs in WA and around $19 million in royalties and taxes to the state government.

Toro Energy – Wiluna

Wiluna was approved by the federal government back in 2013. An extension to the mine was then proposed after Toro acquired the Lake Maitland deposit, meaning the company had to win further approvals

AUSTRALIANMINING

to add new deposits to the mine plan.

The new proposal was accepted by the WA Government in January.

Wiluna’s resource contains about 80.5 million pounds of uranium oxide, which Toro expects will deliver a mine life of at least 20 years. The proposed mine is expected to create about 170 full-time jobs.

Toro still requires federal approval for the proposed mine, which it hopes to receive in March.

Cameco – Yeelirrie

As mentioned, Yeelirrie is the latest uranium project to be approved by the WA Government, despite only satisfying eight of the EPA’s nine requirements.

Yeelirrie, located about 400km north of Kalgoorlie in the Goldfields region, is 100 per cent owned

by Cameco. The mine deposit is estimated to contain 127.3 million pounds of uranium oxide and has an expected mine life of more than 20 years.

The operations will include two

41

MARCH 2017

open pits, processing facilities, roads, accommodation, stockpile and laydown areas.

Cameco acquired the project from BHP Billiton for about $US450 million in 2012.

Cameco – Kintyre

The Canadian company’s advancedstage Kintyre project in the Pilbara region was the first of the four prospects to receive approval from the WA Government (excluding the approval of Toro’s first proposal for Wiluna). It was also approved by the Australian Government in April 2015.

Kintyre has a resource of 53.5 million pounds of uranium oxide and an expected mine life of more than 13 years. It is estimated that about 450 workers will be required to operate the site.

Cameco owns 70 per cent of the Kintyre project, which is a joint venture with Japan’s Mitsubishi Development. The project was acquired from Rio Tinto in 2008. AM

GOLD MARKET

WILL GOLD RISE AGAIN? ABC BULLION GENERAL MANAGER NICHOLAS FRAPPELL LOOKS AT HOW PRECIOUS METALS HAVE STARTED THE YEAR.

G

old ended last year just above the major lows of 2015, and the slump of 2010, almost eight per cent higher on the year in US

dollar terms.

While a respectable number, it was a disappointment for bulls who saw gold rally almost 30 per cent from the beginning of the year to the $US1375 high in July.

Gold was thrust higher by Brexit, but could not push past the trend line resistance that extended back past the October 2012 high to the September 2016 high. Whatever the psychology and angst surrounding this key event, Managed Money longs on the CME Comex division saw the rally as a level to reduce their bets on gold moving higher, and increase bets on gold going lower.

Less than 120 days after the vote, longs had reduced their commitments by a third, as the Dollar Index (DXY) started a rally from around 95, which would take it to a yearly close of 102.21, and bond yields showed signs that the almost four-decade long rally in prices had reached a natural limit.

Starting in January, gold rallied strongly, exceeding the upward move in the price seen in the first month of last year.

The proximate drivers for this performance were a 3.8 per cent drop from the highs in the Dollar index, as speculators re-assessed the likely impact of Donald Trump’s election as United States President on US growth and the likely policy response from the Federal Reserve.

Also causing reassessment was a more ‘gradualist’ pronouncement

AUSTRALIANMINING

from Fed Chair Janet Yellen in her speech at the Stanford Institute on January 19, where she asserted that the US central bank had not lagged behind the curve in terms of tightening monetary policy.

In short, the euphoric response from some markets to the election of President Trump was tempered by considerations over how much fiscal stimulus can be expected, and how quickly it can take effect. Given low levels of American unemployment, would it stir inflation rather than boost productivity?

The beginning of the year shows that Managed Money longs on the CME increased their positions from 12.79 million fine troy ounces (Ftozs), the lowest level seen since February 16 last year, to 13.516 million Ftozs.

This is slightly less than half of

42

MARCH 2017

the maximum reached in July last year, and less than the average of the past seven years, so there is scope for speculators to rebuild their commitment to the bullish cause.

Managed Money shorts ended the year with quite extended positioning, which reached 9.123 million Ftozs on January 3, just shy of the recent level reached this time in 2016, in what looks like a replay of past events.

Since the beginning of the year, shorts have bought back 1.182 million Ftozs, however a continuation of the recent rally could force more short-covering.

ETF positions have stuck to the 57 million Ftoz mark this month, down from a recent high of 64.41 million Ftozs on November 9 2016.

The immediate outlook for gold is dominated by the collision between

GOLD MARKET

the price and the base of the Weekly Cloud at $US1211, and the 38.2 per cent retracement of the move down from the July 2016 high, both of which have resisted gold’s upward path so far.

Further resistance lies at $US1245, from the Weekly Standard Line.

If the price weakens, support is expected at $US1171 from the current level of the Weekly Turning Line. This would be a plausible level for the price to retreat to.

In Australian Dollar terms, gold’s rally has been hampered by the recent strengthening of the AUD. Major resistance for gold in AUD terms lies at $A1641.

The medium-term outlook for gold looks broadly positive as we go into the first quarter of 2017, with signs that the US dollar rally has stalled, some concerns over inflation, further weakening of the Yuan, and diffuse fears that the incoming US President will trigger a destructive spat over trade and inflame tensions in the South China Sea.

Silver shows promise

Silver opened well after forming an inverted hammer on the Weekly Candlestick charts at the end of 2016.

The price had held trend line support on the December lows, and turned in a respectable performance during 2016, finishing the year up 15 per cent.

By July, silver was up 52.6 per cent, but as with gold, the second half of the year was distinguished by a steady diminishment of gross longs, from 521 million troy ounces (Tozs) at the end of July 2016 to 291 million Tozs at year-end, a decline of 230 million Tozs.

In January, the price rallied by 7.34 per cent (at the time of writing).

Positioning by Managed Money gross longs on the CME futures exchange had risen by over 50 million Tozs since the beginning of the month, while gross shorts declined by 18.60 million Tozs.

Silver has slightly out-performed gold over this period after a half-year

AUSTRALIANMINING

where under-performance was the recent trend.

CME positions have changed at a VWAP (volume weighted average price) of $US16.67 in the period between January 3-17.

Silver has run into resistance at $US17.34, the 50 per cent retracement of the move from the November 2016 high to the December low, and the 38.2 per cent retracement of the move from the high in early September 2016 to the December low.

In addition, those levels are adjacent to the monthly Standard Line at US$17.39, and the base of the Weekly Ichimoku Cloud, so there are plenty of technical resistance levels to thwart silver’s progress at that level.

Support comes in at $US16.75, and then at $US16.48 from the Weekly Turning Line and the 50 per cent retracement of the move higher (so far…)

In terms of relative performance, the gold-silver ratio is range bound

43

MARCH 2017

between 70 and 72. Below 72, silver may outperform towards 67.

Global silver ETFs are 649,397,144 Tozs, almost the lowest level in the past two years, about three million Tozs less than at the end of December, and about 25 million Tozs less than the recent maximum recorded on November 9 last year.

Platinum lifts

Platinum rallied sharply during January. Before looking at why it is worth looking at the context of the final quarter of 2016, a period where Managed Money short positioning was at the highest seen in 2016, indeed about 77 per cent of the largest short position recorded in the past seven years, and the ratio of longs to shorts had declined to 1.21, almost the very low.

By comparison, the average ratio of the past seven years sees Managed Money longs outweighing Managed Money shorts by a factor of 9.33 to 1.

A weaker South African Rand, an apparently lower threat of strike

GOLD MARKET

action there and a likely increase in platinum recycling from older cars with higher catalyst loadings, as well as weaker Chinese jewellery demand, all played a part in weak prices.

The start of 2017 saw significant buying from speculative shorts, with 302,000 Tozs of buying from the Managed Money sector, as against 115,100 Tozs from longs over the January 3-17 period.

Shorts now stand at 386,650 Tozs, compared with a peak of 1.149 million Tozs on October 25. The price rallied up to find resistance at the Weekly Cloud base from the middle of the month and has not managed to hustle past that level, instead making a high right below the 38.2 per cent Fibonacci retracement ($US1005.85) before retreating to current levels of US$978 (at the time of writing).

The big increase in shorts of 642,000 Tozs between September 27 to October 25, an increase that took place at a VWAP of $US974, was unwound in more or less a straight line at a VWAP of $US954 between October 25 and January 17.

Major resistance in platinum lies at $US1005, $US1042 and $US1078.

Support lies at $US948 from the Weekly Turning Line, and from the recent lows at $US888.

Global ETFs were 2,380,212 Tozs on January 26, an increase since the end of December of about 20,000 Tozs.

From here, the relatively low level of speculative short positioning (Managed Money shorts are at 386,650 Tozs) suggest that they could comfortably increase their positioning, especially since the price lies above the last area where they established large bets against platinum.

Long positioning is just below the long-term average of 1.4 million, having taken a major knock from the mid-August levels of around 2.4 million.

Commercial vehicle demand in the EU ended firmly with 212,000 units sold in December and an 11.6 per cent increase in registrations for the year.

However, looking forward to 2017, light-duty diesel looks likely to be on the defensive in terms of market share, with recent market share of just over 55 per cent representing a historic peak. American auto sales totaled 18.29 million units in 2016, up from 17.44 million in 2015. It is a sobering reminder to look back at the 10.18 million units sold in 2008.

Expect moves in gold to be the leading factor in the evolution of the

platinum price in the upcoming year.

The other thing to bear in mind is the damage done to crops in southern Africa from the ‘Fall Armyworm’.

A non-native species, the worm is destroying corn crops in countries such as Zambia, and according to the UN are moving south now into Zambia and Zimbabwe. Corn is a staple food in South Africa, particularly among miners and the migrant groups that form mining’s employment base.

Scarcity that leads to food price inflation of staples may lead to pressure for wage increases again, along with disenchantment with the ANC (African National Congress party) that has long been central to SA politics. Anecdotal reports suggest that food prices are inflating already. This could impact producers in the region if crop destruction spreads.

Palladium picks up

Palladium continued to trade in a volatile range in the final quarter of the year, and rallied hard in January as investors expressed belief in healthy automotive sales, especially

AUSTRALIANMINING

in gasoline engine vehicles and the persistence of high deficits.

CME Managed Money longs grew by 291,000 Tozs since January 3, while Managed Money shorts initially bought back positions, but started to sell into the recent rally.

Managed Money longs bought 166,600 Tozs at a VWAP of $US738 in the week ending Tuesday January 10, and another 124,400 Tozs in the week ending January 17, at a VWAP of $US756. As the time of writing, spot is $US723.

Even if some of the recent longs have liquidated in the tremendous sell-off seen since the market made a high of $US797, there must be some stranded longs left.

Open interest on palladium futures declined by 172,400 Tozs between Tuesday and Wednesday, implying that at least that much long liquidation took place before allowing for any possible fresh short selling.

In essence, this leaves room for further selling pressure in the near term given the recent arrival of that 291,000 Tozs of fresh longs since early January.

44

MARCH 2017

Palladium ETFs saw further outflows in the early part of January of 185,822 Tozs, taking holdings down to 1,521,743 Tozs by January 26. December and November saw more significant outflows of 155,705 Tozs and 152,448 Tozs respectively, and the three months combined have seen a diminishment of ETF holdings by 25 per cent worldwide since the beginning of November.

The price failed to rally beyond the highs of May 2015 before selling off dramatically. Support lies around the Weekly Turning Line at $US725, which the price has recovered to after briefly dropping to support at the Daily Ichimoku Cloud top.

Support lies at the Weekly Standard line at $US704, and in the event of a strong decline, at the long-term trend line that extends back to the January 2016 low. That is currently located at $US646.

Longer term upside targets suggest $US860, however the shorter term looks like a pull-back within a bullish trend, with recent buying making the market look a bit over-extended. A decline to $US670 would not seem unreasonable within that context. AM

GOLD MARKET

WILL GOLD TRUMP ALL RESOURCES? WITH NEW UNITED STATES PRESIDENT DONALD TRUMP NOW IN POWER, THERE IS A LOT OF UNCERTAINTY OVER WHAT THAT COULD MEAN FOR THE RESOURCES SECTOR, PARTICULARLY GOLD. AUSTRALIAN MINING SPOKE TO HUNTSMAN RESOURCES MANAGING DIRECTOR NIGEL FERGUSON TO PROVIDE HIS INSIGHTS INTO THE GOLD PRICE. SHARON MASIGE REPORTS.

T

he gold price fluctuated in the lead up to United States President Donald Trump taking office, and upon his inauguration, reports indicated that the precious metal surged to a seven-week high of $US1196.60 a troy ounce.

However, Huntsman Resources managing director, Nigel Ferguson highlighted the uncertainty over the outlook of the gold price now that Trump is at the helm of one of the most powerful countries in the world.

“I think there’s still an uncertainty at the moment over which way it’s [gold’s] going to go,” Ferguson said.

He added that the surge in the gold price stemmed from this uncertainty over the future of the commodity.

“Gold has obviously come back up recently,” he said.

“The uncertainty in America is certainly pushing this as well so I think you’ll find the gold price will be going up. It’s something like $US1200-$1210 at the moment and the Australian gold price is obviously much better than that because of the exchange rate, so yes I think we can see another $50-$100 dollars or something like that.

“Maybe a big jump I don’t know but I’m certainly expecting it to go up.”

Ferguson also highlighted the positivity of this pricing for Huntsman Resources, which focuses mainly on gold exploration. The company has operations in Australia – with its Crackerjack project in the Kimberley goldfields of Western Australia and its flagship Mambasa Greenstone project in the Congo.

“We’re a small exploration company that looks like it’s managed to pick the turn of interest in gold.

People are coming back to it again,” he said.

In terms of what Australia should be doing amid this uncertainty, Ferguson emphasised the importance of not waiting or relying heavily on what the US is doing.

“I don’t think they [Australian companies] should be sitting back

and waiting, [they should] take control of their own future,” he said.

“I don’t think they should be cowtailing to the US all the time.

They have trades with the US but I don’t think it’s a major part of our trading relationships.

“I think we’re very much focused on Asia - Chinese and Japanese and iron ore and the gas in the northwest shelf and all the other products there. I think we trade with those countries more than anything else.

“I don’t think there’s a huge part that America plays in our future - yes they are a major alliance country but maybe it’s going back to Britain again.”

However, there do seem to be some positive signs for the resources sector, particularly in terms of iron ore, which reached above $US80 twice in the lead

AUSTRALIANMINING

up to his inauguration.

Moreover, Trump’s infrastructure spending has created some confidence in demand for the commodity, as he plans to, “Create thousands of new jobs in construction, steel manufacturing, and other sectors to build the transportation, water, telecommunications and energy infrastructure needed to enable new economic development in the U.S.” Notwithstanding his repeated intention to build a wall along the country’s border with Mexico.

This potentially higher steel demand would be a boost for iron ore producers and exporters - running in parallel with the big infrastructure push in China that increased iron ore prices last year.

Trump’s infrastructure spend

45

MARCH 2017

was also taken as a good sign from Artemis Resources chairman David Lenigas.

“I just see that this is potentially the beginning of a super-boom for resources for the next 10 or 15 years,” Lenigas said.

Although Trump’s meeting with BHP Billiton’s bosses - chairman Jac Nesser and chief executive Andrew Mackenzie - earlier this year was described as “productive” it seems only time will tell what will hold for the resources industry as the year progresses.

“Generally commodities have come back up but I think that’s just a trend, whether the US is going to be a catalyst for faster change, I don’t know, but certainly you would think that’s going to happen,” Ferguson added. AM

OIL AND GAS

OIL DEMAND TO SLOW DOWN AMID A RISE IN RENEWABLES DESPITE THE OVERALL GROWTH IN GLOBAL ENERGY DEMAND, OIL DEMAND EXPANSION IS EXPECTED TO SLOW DOWN OVER THE NEXT 20 YEARS, HAMPERED BY THE SHIFTING ENERGY MIX AND THE MOVE TOWARD ENERGY EFFICIENCY. SHARON MASIGE REPORTS. world’s most dominant sources of energy - making up three quarters of the energy supply. According to the report, oil demand will continue to grow but at a slower rate than it has been in previous years due to the shifting trend towards renewable energy.

The oil and gas outlook

The global liquid demand is expected to rise by around 15 million barrels per day (Mb/d) to reach a total of 110 Mb/d by 2035, with the report estimating that oil demand could begin to drop during the mid-2040s. The Organisation of the Petroleum Exporting Countries

(OPEC) is believed to account for around 70 per cent of growth in the global oil supply, set to rise from 9 Mb/d to 48 Mb/d by 2035. This contrasts with non-OPEC countries, which are projected to increase a little over four per cent in the same period, coming mainly from the United States, Brazil, Russia and Canada.

However, OPEC decided to cut oil production by three per cent as of January this year, to 32.5 Mb/d for six months, in a bid to curb the oil oversupply.

Despite the decline in oil demand, the report indicates that there remains a large amount

of oil resources, which BP said would “dwarf the world’s likely consumption of oil out to 2050 and beyond”. It also stated that for every oil barrel used, more than two were discovered, further reinforcing the availability of the next few decades.

Most of these resources lie in the Middle East, Commonwealth Independent States (CIS) and North America.

BP identified gas as the fastest growing fuel, set to surpass coal and become the world’s second largest fuel source by 2035. Liquefied natural gas (LNG) consumption is also set to increase, brought on by high demand in Asia. Alternatively,

CREDIT: CHEVRON AUSTRALIA

B

P’s latest Energy Outlook highlighted a growth in energy demand to 2035 rising by around 30 per cent. This will be driven by the growing population, particularly in emerging economies such as China and India, which will in turn increase economic prosperity.

The report projected global population to reach around 8.8 billion people by 2035 and gross domestic product (GDP) to nearly double, emphasising the increased energy demand in the future.

Oil, gas and coal remain the

AUSTRALIAN OPERATIONS, SUCH AS CHEVRON’S GORGON, ARE GOING TO LIFT GLOBAL LNG OUTPUT SIGNIFICANT.

AUSTRALIANMINING AUSTRALIAN

46

MARCH 2017

OIL AND GAS

supply will mainly come from Australia and the US. “Australian LNG supplies are normally likely to be absorbed within Asia,” the report said.

“US LNG exports are likely to be more diversified, providing the marginal source of gas for markets in Europe, Asia, and South and Central America.”

Electric vehicles and their effect on oil

As the transport sector accounts for most of the world’s liquid fuel consumption, the growing trend towards more energy efficient vehicles is set to foster the reduced oil demand, although to a relatively minimal extent.

BP group chief executive Bob Dudley said the energy transition would move toward a gradual decarbonisation of the fuel mix shifting away from carbon-based fuel sources.

“Oil demand continues to increase, although the pace of growth is likely to slow as vehicles become more efficient and technological improvements, such as electric vehicles, autonomous driving and car sharing, potentially herald a mobility revolution,” he said.

With global prosperity expected to rise over the next 20 years, it is expected to bring with it a larger demand for cars, particularly those with a higher energy efficiency.

In 2015, cars accounted for a fifth (19 Md/d) of liquid fuel demand worldwide and the expected increase in more energy efficient car usage has the potential to cut down oil demand growth.

Global car fleets are set to reach 1.8 billion by 2035; double the rate of 2015. Within the increased number of cars will be a significant share of energy efficient vehicles, expected to skyrocket from 1.5 million in 2015 to 100 million in 2035. These will make up six per cent of the global car fleet.

Seventy five per cent of electric vehicles will be pure battery electric vehicles, while a quarter will be plug-in hybrids, running on a combination of oil and electric oil, the report added.

CREDIT: BP ENERGY OUTLOOK 2017

The rising number of electric vehicles, however, will only have a minimal effect on oil demand, set to only reduce oil demand growth by 1.2 Mb/d [around a tenth of the impact of the gains in vehicle efficiency].

Renewable energy

Renewables, including hydroelectricity and nuclear power, are identified as the fastest growing fuel source; quadrupling in demand over the next 20 years. The report attributed this to increased competitiveness, particularly between solar and wind power.

“Rapid improvements in the competitiveness of renewable energy mean that increases in renewables, together with nuclear and hydro energy, provide around half of the increase in global energy out to 2035,” Dudley said.

The report indicated that renewables would account for 40 per cent of the growth in power generation [thus increasing its share of the global power to 20 per cent

OIL DEMAND CONTINUES TO INCREASE, ALTHOUGH THE PACE OF GROWTH IS LIKELY TO SLOW AS VEHICLES BECOME MORE EFFICIENT AND TECHNOLOGICAL IMPROVEMENTS, SUCH AS ELECTRIC VEHICLES, AUTONOMOUS DRIVING AND CAR SHARING, POTENTIALLY HERALD A MOBILITY REVOLUTION.” AUSTRALIANMINING

by 2035]. The European Union is heading this trend, providing the reception of renewables.

But even with the rise of renewables, carbon emissions will still grow, albeit at a slower growth rate. Carbon emissions are expected to grow at 0.6 per cent a year, compared to 2.1 per cent growth 20 years ago - the lowest it has been since BP began its record.

Dudley added that strong action on carbon emission reduction would still be required over the coming years.

“Faster gains in energy efficiency combined with the gradual changes in the fuel mix mean the growth of carbon emissions from energy is expected to slow sharply relative to the past 20 years,” he said.

“Even so, the most likely path sees carbon emissions continuing to increase, indicating the need for further policy action.

“The timing and form of that action will have an important bearing on the nature of the energy transition.”

What about coal?

Like oil, global coal demand is set to slow down - with global consumption expected to hit its peak during the mid 2020s.

The decline is reinforced by an International Energy Agency (IEA) report, which indicated that coal’s share in the power generation mix would reduce from 41 per cent in 2014 to 36 per cent in 2021. The IEA

47

MARCH 2017

report added that while coal demand dropped in 2015 - the first time it is has declined this century – it was not expected to reach the level it had in 2014 until 2021.

China is the world’s largest market for coal, and over the next 20 years, will account for nearly half of the global coal consumption. However, as the country begins to shift and adjust to more sustainable, and lower-carbon fuels, worldwide coal consumption will further decline.

“China’s coal consumption is projected to broadly plateau over the next 20 years, in sharp contrast to the rapid, industrialisation-fuelled growth of much of the past 20 years,” the report said.

Moreover, China’s coal output will also reduce amid its government’s plan to cut down on coal production.

Last year, it outlined plans to shut down 1000 mines and reduce coal by around 500 million tonnes over the four years to 2020.

A final note

While oil and gas will continue to be two of the biggest energy sources, renewables are encroaching more and more into the mix.

“Traditional centres of demand are being overtaken by fast growing emerging markets,” Dudley said.

“The energy mix is shifting, driven by technological improvements and environmental concerns.

“More than ever, our industry needs to adapt to meet those changing energy needs.” AM

PROSPECT AWARDS

PROSPECT AWARDS WINNERS PROFILE AUSTRALIAN MINING SPEAKS TO RCT, ONE OF THE PAST WINNERS OF THE PROSPECT AWARDS, ABOUT THE SUCCESS OF ITS INDEPENDENT GUIDANCE SOLUTION.

R

CT won last year’s innovative mining solution award for its ControlMaster Independent Guidance system for underground operations – an expansion of one of its earlier models.

Back in 2010, the company first released the ControlMaster Guidance solution, which fits to underground loaders and trucks to ensure they don’t come in contact with any walls or obstacles. It helps operators increase their cycle times and reduces machine damage to increase productivity.

From there, the company released the now award-winning system Independent Guidance Solution – which allows operators to set a predetermined path into the system and with the simple push of a button, the machine travels by itself to its intended destination. The system automatically controls the machine’s steering, speed and brakes, using laser technology to keep the machine on a centre path to avoid walls and other obstacles. It can be installed on all types and brands of underground loaders and trucks; increasing speeds, reducing damage and improving bottom line profit.

There were 160 Independent Guidance Solutions working globally by the end of 2016. RCT’s head of product management, Dave Holman said there was a positive response from customers due to the immediate gains in production they had experienced.

“The systems have been used right throughout all our global regions, including Australia -through the Goldfields and eastern hard rock regions to New South Wales, and up through Queensland - as well as into

the African region, up into China and Russia,” he said.

On top of that, the newer Independent Guidance Solution also achieved global recognition, with the successful deployment of the system at a site in Russia, in which it performed extremely well in very poor conditions, bringing an added boost to the company.

“Since the release of Independent Guidance at the beginning of last

AUSTRALIANMINING

year, it’s had a fairly rapid takeup and clients are now looking at upgrading their existing systems,” Holman said.

“There’s been about a 50 per cent conversion from Guidance to Independent Guidance since its release and we are finding that new clients are now opting for the new solution going forward, so there’s been a great response so far.”

48

MARCH 2017

Winners for innovation

From its beginning in Kalgoorlie in the late 1970s, RCT has maintained its mission to ensure all workers are removed from harm by developing remote controlled technologies as a solution. Holman said the company had always been innovating in the mining region – particularly when it

PROSPECT AWARDS

comes to mobile equipment.

“We’ve always been an innovation driven company, our people are our assets within our business,” he said.

“We have a great depth of knowledge of the industry and technology solutions, so when we match them together we are very strong in supplying long term, sustainable machine solutions that help increase productivity throughout the mining market.”

Highlights for 2016

Over the past year the company noted several key achievements.

In 2016, the company expanded its distribution into South America, entering a distribution agreement

with Chilean company Fasser to deliver its auto-electrical line of products throughout Chile and Peru.

This was particularly effective as it came at a time of weak economic conditions in the copper industry, which warranted a range of solutions to reduce costs on site, while enhancing the safety of mobile equipment operators.

RCT’s Custom team showcased its extensive capabilities when retrofitting an old dozer with its ControlMaster Line-of-Sight remote when other remote control companies said it was virtually impossible.

The company also celebrated its two-year anniversary with Activ Foundation, which provides

THE SYSTEMS HAVE BEEN USED RIGHT THROUGHOUT ALL OUR GLOBAL REGIONS, INCLUDING AUSTRALIA - THROUGH THE GOLDFIELDS AND EASTERN HARD ROCK REGIONS TO NEW SOUTH WALES, AND UP THROUGH QUEENSLAND - AS WELL AS INTO THE AFRICAN REGION, UP INTO CHINA AND RUSSIA.” employment for people living with a disability. Activ Foundation is Western Australia’s largest employer of people with a disability. Of its 15 locations, Activ’s business in Kewdale is next to RCT’s headquarters in Perth, and since their partnership it has been helping RCT package electronic component kits, pressure switches and looms, which are then transported worldwide.

A time of expansion

Over the past three years, RCT has been undertaking a global expansion with positive results, particularly in Russia.

“We’re having a very strong growth through the Russian market, which has been a very big highlight for us,” Holman said.

The company also expanded into North America, with its solutions and technology base also experiencing high take-up rates and positive feedback.

Looking forward in 2017, the company is focusing on growing its new Salt Lake City branch in Utah, United States.

“We’re now growing a team of people through that region and our focus for the next 12 months is putting together a sustainable long-term plan that gives us successful growth.”

The company is also expanding its products across more machine types and models.

“What RCT has done with our successful Independent Guidance solution for underground loaders and trucks has really proven that technology can play a major role in mining,” Holman said.

“So our aim now is to expand AUSTRALIANMINING

49

MARCH 2017

this technology base into other machine applications.”

Innovation is key

With innovation increasingly a central part of the mining industry, Holman reflected on how implementing innovative technologies in the sector, especially in Australia, has been slower.

“Australia’s been quite good at it [innovation] but in the past technology has taken a backseat role when it comes to mining and its only just been recently - and recently I mean probably the last three to five years that the mining industry is reaching out and looking at other industries and seeing what technology, or how technology, is playing a role in their business, and how is it improving their business,” he said.

However, the slow uptake of technology has recently seen a greater shift, with companies looking at technology during critical planning stages of their operations.

“Technology is the main topic of discussion at all mine planning meetings now,” Holman said.

“Companies are now starting to plan with the consideration that technology is going to play a major role.”

A final note

Commenting on the company’s win at the Prospect Awards, Holman said it was an acknowledgment of the hard work of RCT’s employees.

“These awards are very good recognition for our people who put in a lot of time and effort to put together these solutions to ensure they work effectively and efficiently,” he said.

“I would encourage all companies that are thinking of entering in the Prospect Awards for 2017 to do so, and good luck to their efforts.” AM Nominations for the 2017 Prospect Awards are now open. To nominate, visit www.prospectawards.com.au.

PRODUCT FOCUS

ENSURING PIT WALL STABILISATION AND DEPRESSURISATION AIRWELL GROUP OUTLINES WHY HIGH-QUALITY PUMPING SOLUTIONS ARE INTEGRAL IN ACHIEVING PIT WALL STABILISATION AND DEPRESSURISATION.

D

ue to the nature of open cut mining, issues with pit wall stabilisation are always front of mind for mining companies, according to Airwell Group.

Not only does stabilisation affect the on-going production of a mine, but it is also a large safety consideration on any site.

Pit wall stability is affected by several factors, including: strength of soil and rock, type of soil and stratification, groundwater table and seepage through the slope, external loading, and geometry of the slope.

Although sound engineering design of pit walls at the beginning of the mining process can prevent many issues commonly encountered, equally important is the need for ongoing refinement based on geological and other environmental factor changes within an active mine.

According to Airwell managing director Alan Brown: “It is important that operators, consultants and pit designers have a number of strategies in place to deal with the factors mentioned, both at the beginning of a project and provision to deal with the changing environment in and around the site over time.”

AUSTRALIANMINING

Dewatering a key solution

Dewatering and groundwater control is an important part of many open pit and underground mines – when mining below the water table groundwater is an inevitable challenge.

On some projects groundwater will be a minor impediment that can be dealt with on an ad-hoc basis. On other projects, and in other geological settings, planning and execution of dewatering may be fundamental to the viability of the mine and may require very large resources and management.

As discussed, groundwater seepage and the rising groundwater table

50

MARCH 2017

are contributing factors to pit wall stabilisation. In some situations, a simple sump to collect inflows to be pumped out might be all that is required. Such a sump would be required in any case to collect and remove stormwater.

Dewatering will be required if there are likely to be inflows of groundwater at rates that affect mining operations, particularly pit wall stability, traffic movements and blasting.

Dewatering can be achieved in several ways, including pumped wells or deep sumps inside the pit, pumped wells outside the pit, free flowing drillholes inside the pit (the inflow

PRODUCT FOCUS

IT IS IMPORTANT THAT OPERATORS, CONSULTANTS AND PIT DESIGNERS HAVE A NUMBER OF STRATEGIES IN PLACE TO DEAL WITH THE FACTORS MENTIONED EARLIER BOTH AT THE BEGINNING OF A PROJECT AND PROVISION TO DEAL WITH THE CHANGING ENVIRONMENT IN AND AROUND THE SITE OVER TIME.” being collected and pumped from one or more sumps), and pumping from older, deeper mine workings.

Each of these methods is designed to lower the water table so that mining operations can proceed in an essentially dry environment.

Dewatering methods

Airwell has provided pump solutions to the mining, industrial and environmental industries for more than 30 years. The company provides options for both low flow and high flow dewatering on mine sites to improve pit wall stability and/or lower the groundwater table.

Low flow Airwell pump solutions: The unique features of the Airwell direct air displacement pumping systems make them a highly sustainable and in-demand pumping system for use in pit wall dewatering projects.

Several features make the pump the best option when it comes to seepage control, pumping from depressurisation well in the pit wall or floor. These include: adjustable to varying bore yields (can pump from one litre per second down to a zero flow rate); ability to handle grit, solids and variable water quality; low maintenance and easy

AUSTRALIANMINING

to install; and remote from power operation – a centrally located compress can operate multiples pumps over five kilometres away.

51

MARCH 2017

“These features eliminate many of the issues and problems associated with dewatering and leachate recovery that other systems can find difficult,” Brown said.

High flow dewatering and control equipment: As already highlighted, dewatering solutions can often be a combination of different techniques and equipment, including bores and collections sumps which have high flow rates.

Airwell also provides electric submersible pumping equipment for dewatering in these applications to suit a range of flow rates.

“To effectively manage a high flow groundwater pumping program, Airwell offers a skid mounted control unit incorporating modern technology and control methods to manage a dewatering program,” Brown added.

Features of the control unit include: variable speed drive control to control pump flow rates, mag flow meter for an accurate record of flow rates, prgrammable logic controller (PLC) control unit and data logger, remote monitoring capabilities, and all equipment is installed in a climate controlled compact skid unit for easy use on site.

Brown concluded: “These solutions are not only applicable to dewatering applications but also tailings dam recovery and general water supply projects.” AM

PRODUCTS

ULTRA-RUGGED TABLET WITH ANDROID 6.0 AND 2 GB OF RAM Handheld Group has upgraded its Algiz RT7 rugged Android tablet for mobile workers.

The seven-inch lightweight and ergonomic tablet now runs Android 6.0 (Marshmallow), which provides added security features and, for the first time, allows users to expand their internal storage via micro SD. The tablet has also been upgraded to 2GB of RAM which boosts processing speed, particularly when using memory-intensive applications or running multiple applications simultaneously.

The Algiz RT7 is both fully rugged and designed for mobility. It weighs 650g and meets stringent MILSTD-810G U.S. military standards for protection against drops, vibrations and extreme temperatures.

Its IP65 rating means it is waterproof, as well as fully sealed against sand and dust.

The tablet comes standard with voice and LTE data capabilities, plus 802.11 b/g/n WLAN, BT Class 1 and Class 2, and near-field communication (NFC) functionality. It also features dual cameras (8-megapixel rear-facing and 2-megapixel front-facing), as well as dual SIM card slots.

The unit comes with a built-in accelerometer, gyroscope and e-compass and a stand-alone u-blox GPS receiver for navigation.

Designed for mobile workers, the tablet also features a high-brightness seven-inch outdoor-viewable capacitive display that can handle outdoor challenges.

Battery performance is key for any mobile application and the tablet comes with a long-life 3.7V 6000mAh lithium-ion battery. Four programmable buttons allow users to launch and use applications in the field, and to enhance data capture – users can choose an optional 2D imager or RFID plus 2D imager.

• Handheld Group +1 541-752-0319 www.handheldgroup.com

BKT TO DISPLAY EARTHMAX TYRE RANGE AT CONEXPO BKT will exhibit its range of Earthmax tyres at this year’s CONEXPO-CON/AGG 2017.

The tyres are designed to favour best load distribution on the ground when fitted on dumpers, wheeled loaders, dozers or graders.

All Earthmax patterns have a common feature: the All Steel structure conferring major resistance to the casing, protecting them against impacts such as punctures and penetration of foreign matters on large construction sites, quarries, pits and mines.

The Earthmax SR 45 Plus is BKT’s new giant tyre - with a diameter of 2.7 metres. Engineered for rigid dumpers, the giant radial tyre is suitable for long-haul operations. Additionally, the strong All Steel casing structure ensures high stability and makes it particularly resistant to any kind of cuts, tears and abrasions.

The Earthmax SR 22 tyre is designed for loaders and graders operating on snow-covered terrains that will be displayed in size 20.5 R 25. The large footprint area provides strong performance during snow-clearing operations. In addition, the combined action of the compound, the aggressive tread design and its grooves provides outstanding traction and road grip on snowy grounds.

The Earthmax SR 30, engineered for articulated dumpers and wheel loaders, will be showcased in size 20.5 R 25. Its special compound, resulting from a particular production process, enables the tyre to resist to cuts and abrasions, as well as to quickly dissipate the heat developed during operations.

For articulated dump trucks, the Earthmax SR 41 will also be on display in size 20.5 R 25.

This tyre features a deep tread with reinforced connecting elements, which provides better lug stiffness - resulting in increased stability. The special lug design also ensures high traction – an essential feature for articulated dump trucks operating on tough terrains under severe conditions.

• BKT +39 (0)30 3539159 www.bkt-tires.com

AIR/GAS FLOW METERS FOR INCREASED PROCESS CONTROL Fluid Components International, together with AMS Instrumentation & Calibration, has released the ST75V Air/Gas flow meter to solve air/gas ratio mixing problems.

The meter improves heat treating process control, increases product output, reduces fuel gas consumption and lowers total operating costs.

The meter offers an alternative solution for heat treating process control that provides direct mass flow measurement for accuracy, operates over a wide turndown range and supports all common and specialty fuel gases. It features integral advanced flow sensing electronics with the necessary measurement accuracy and repeatability for heat treating processes.

The meters are an in-line (spool-piece) design with no moving parts and are available for use in pipe diameters from 6-51mm. Process connection options include male NPT, female NPT and flanged. These thermal flow meters feature wide 100:1 turndown and depending on pipe size, will measure from 0.01 NCMH to 950 NCMH. Its Vortab flow conditioner is built into the spool-piece to AUSTRALIANMINING

provide accurate and repeatable flow measurement for installations with limited pipe straight-runs and/or for operating in transitional flow ranges. The sensing element is designed with precision, platinum RTDs in small diameter, “equalmass,” all-metal thermowells for high accuracy, repeatability and fast response.

Standard accuracy is ± one per cent reading, ± 0.5 per cent full scale.

In addition, the meter’s electronics are housed in a rugged, IP67 rated enclosure with dual conduit ports in either NPT or M20 threading. The instrument comes standard with dual 4-20 mA outputs and a 500 Hz pulse output.

Optionally, the meter includes HART, as well as NAMUR compliant 4-20 mA outputs and SIL compliance rating. The flow meter’s transmitter/electronics can be integrally mounted with the flow element (probe) or be remote mounted to best match the installation. The complete instrument carries global Ex agency approvals for Division l/Zone 1 installations.

The ST75V meter’s fully scalable dual 4-20mA standard outputs are user assignable to flow rate and/or temperature and a 0-1kHz pulse output of total flow. The instrument can be ordered for input power with either 18 to 36 Vdc or 85 to 265 Vac, with or without a built-in LCD digital display.

The durable ST75V Flow Meter withstands process temperatures from -18 to 121°C. It operates at pressures up to 16.5 bar (g) with a standard t-fitting (NPT female) process connection. With a tube process connection, the meter withstands 41 bar (g).

• AMS Instrumentation & Calibration (03) 9017 8225 www.ams-ic.com.au

52

MARCH 2017

PRODUCTS

KEESTRACK UNVEILS FULL HYBRID JAW CRUSHER Keestrack has released its full-hybrid jaw crusher B4e.

The B4/B4e jaw crusher is optionally available with conventional diesel-hydraulic drive or as full-hybrid “e-version”. With active two-deck pre-screening and the re-designed 1100x700 mm jaw crusher featuring the patented N.S.S. overload protection.

The new model follows on the successful Apollo/B4 for flexible recycling applications or medium-sized quarry operations with capacities up to 300 t/h. Equipped with new options, like the one-deck afterscreen module with oversize conveyor, the new designed frame - incorporating elements of highstrength Domex steel - guarantees low transport weights (max. 49 tonnes).

The full-hybrid Keestrack B4e is equipped with a 242 kW diesel engine and a 225 kVA on-board generator. The latter supplies the 110 kW electric crusher motor, all other electric drives on conveyors and screens and the separate 55 kW electric motor/hydro pump unit for all installed hydro drives (cylinders, tracks).

During “plug-in” operation (external gen set/mains) the diesel engine doesn’t have to be started, the whole energy management is controlled automatically including the electric supply of a secondary unit (screen, stacker).

• Keestrack +32 (0)89 51 5851 www.keestrack.com

BLAST MOVEMENT SOLUTIONS FOR OPEN PIT MINES Blast Movement Technologies (BMT) has released three new products to complement its existing solutions for blast movement in open pit mines.

The Survey Enabled Detector (SED) allows for quick attachment and release of the High Precision GPS and is accurate to 10cm in most areas of the pit. It improves safety as it reduces the number of people on the muck pile and enhances efficiency by eliminating the time taken to provide coordinates.

The RDT unit allows for the data from the PDA to

be transferred to BMM Explorer Software remotely, eliminating the need to transfer data via a USB. This data transfer can occur directly from the pit if Wi-Fi is available, or alternatively it will use the office Wi-Fi to connect and transfer data. The seamless transfer of pre- and post-blast data ensures high efficiency and minimal disruptions, as well as eliminating previous driver conflicts that could arise when using USBs. The Value Calculator is an ore loss and dilution module that provides a visual comparison of ore

blocks in their in-situ position versus post blast ore locations. It provides a summary report in PDF format; highlighting ore loss, dilution and misclassification.

It provides a visual representation of the value being created with every blast and can be emailed to senior management to reinforce the financial value created by the mine.

•Blast Movement Technologies +61 7 3122 2982 www.bmt.com.au

CATERPILLAR TO DEBUT EIGHT MACHINES AT CONEXPO Caterpillar will debut eight machines at this year’s CONEXPO in Las Vegas, Nevada. The machines include the M317F wheeled excavator, a compact radius design that enhances productivity in tight work areas.

The 390F and 336F XE Excavators, both with crawler undercarriages, have been updated to deliver improved productivity and lower costs. Both excavators lead their size classes in fuel efficiency. The 390F can be equipped with the industry’s only integrated payload system for accurate truck loading. The 336F XE has the payload system as standard equipment, as is 2D GRADE—with the option of several integrated Cat Connect grade control systems.

New Cat wheel loaders will also be on display, including the 986K which replaces the H Series model and delivers lower cost per tonne in earthmoving and aggregates operations.

The 950 GC will make its North American debut in the Gold Lot, where it will be displayed alongside the full-featured 950M. In addition to the 950M, the 972M XE and 982M will be on display to highlight updates including new Cat Connect Technologies, additional operator comfort and safety features, and features that help reduce operating costs.

The new 745 Articulated Truck features a new, classleading cab with enhanced visibility. Innovative machine

control features further improve operator efficiency and safety. The new stability assist system reduces the risk of rollovers and the new economy mode reduces fuel consumption.

The updated D6T Dozer features a new transmission and the new auto shift system that allows the dozer to achieve higher fuel savings compared with the previous model. Fuel savings can increase to as much as 30 per cent in light-load and finish-grading applications. The fully automatic system maintains production while optimising fuel efficiency. Additionally, the updated D6T is equipped with GRADE, with slope assist as standard equipment.

Another dozer is featured in a live demonstration in the Gold Lot exhibit. A D8T dozer in Peoria, Illinois, will be controlled remotely from the operator station in the exhibit. The new Cat Command remote control system for the D8T offers a choice of two operator interfaces—a portable operator console designed for line-of-sight use and an ergonomically designed operator station that can be located remotely when the dozer is equipped with the command vision system. Wireless connectivity enables the operator to work from a safe location, whether nearby or far away.

The company will also feature three new cold planers— AUSTRALIANMINING

53

MARCH 2017

PM825, PM622 and PM312. The new PM800 Series complements the previously released PM600 Series and features increased engine power for demanding applications.

Increased weight and cooling capacity allow the PM800 Series to perform under the toughest of conditions. The PM300 Series is highly versatile, capable of urban and patchwork applications, small to medium road milling or where compact dimensions, optimum maneuverability and high production capabilities are required.

•Caterpillar www.cat.com

EVENTS XXX PRODUCT SHOWCASE

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

MINES AND MONEY ASIA APRIL 5-7 2017 HONG KONG CONVENTION & EXHIBITION CENTRE Now in its 10th year, Mines and Money Asia will continue to attract thousands of senior executives from global mining and energy companies as well as financiers and industry professionals from over 40 countries. Delegates will get the opportunity to hear from more than 150 speakers for two and a half days of learning, networking and deal making. The event will cover a range of opportunities to help companies succeed in the mining finance landscape. This year’s event will also see the addition of Future Energy and Finance Asia, a two-and-a-halfday programme covering renewable, sustainable and clean energy, carbon efficiency, energy storage, infrastructure and technologies as ethical and viable investment opportunities.

•Mines and Money Asia (852) 2219 0111 asia.minesandmoney.com

TARGET 2017 APRIL 19 2017 UNICLUB, UNIVERSITY OF WESTERN AUSTRALIA, PERTH

applied exploration geophysics and geochemistry and 3D exploration and will provide hands-on training opportunities for conference delegates.

•Target 2017 (61) 08 9355 2164 enquiries@geoconferences.org.au target2017.org.au

in direct contact with equipment, technology and minerals processing companies.

•21st International exhibition of machines and equipment for mining, processing and transportation of minerals (603) 7842 9863 www.miningworld.ru

21ST INTERNATIONAL EXHIBITION OF MACHINES AND EQUIPMENT FOR MINING, PROCESSING AND TRANSPORTATION OF MINERALS APRIL 25-27 2017 CROCUS EXPO, MOSCOW, RUSSIA

40TH SYDNEY BASIN SYMPOSIUM APRIL 27-28 2017 MERCURE RESORT HUNTER VALLEY GARDENS, NEW SOUTH WALES

More than 3000 delegates from 42 countries are set to attend the 21st International exhibition of machines and equipment for mining, processing and transportation of minerals. The event will focus on natural resources, mining and quarrying; featuring a range of companies that specialise in bulk materials through to mine safety and power supply. It provides an opportunity for delegates to get

The Sydney Basin Symposium will celebrate its 40th anniversary in 2017 and this year’s theme is “Weathering Change”. Initiated by the University of Newcastle in 1966, the long-running series of symposia on ‘Advances in the Study of the Sydney Basin’ has become a well established focal point for the discussion of research findings and other studies of academic, industrial and community interest for one of the most significant geological provinces in Australia. As the mining industry continues to face a series of

The Target 2017: Innovating now for our future conference, organised by Geoconferences (WA) will focus on all aspects of mineral exploration as the mining industry acts to find the next generation of mineral deposits. It will bring together more than 250 attendees from around the Australian and international mineral exploration community, including executives, professionals, researchers and university students.

The technical program will consist of a plenary session, panel discussions and poster sessions, focusing on multi-commodity exploration - from greenfields at the regional scale through to brownfields and near mine exploration. Short courses and workshops will cover topics such as the mineral systems approach to exploration targeting, AUSTRALIANMINING

54

MARCH 2017

challenges, the symposium will cover topics including coal geology, gas and petroleum geology, mine engineering and the state of the industry now and into the future.

•40th Sydney Basin Symposium (612) 9922 5754 www.sydneybasinsymposium.net

MINESAFE INTERNATIONAL 2017 MAY 1-2 2017 PERTH, AUSTRALIA The Australasian Institute of Mining and Metallurgy (AusIMM), together with the Chamber of Minerals and Energy of Western Australia and WA Department of Mines and Petroleum, is launching the Minesafe International conference series.

The series aims to ensure health and safety maintains a high level of awareness in the resources industry.

It will include all sectors within the resources industry – minerals, oil and gas. Australian and international key health and safety practitioners to discuss their research, network, and share their achievements and challenges.

•Minesafe International 2017 (61) 03 9658 6128 www.minesafe.ausimm.com.au

W a A t

“Providing pumping solutions to the mining, industrial, environmental, oil & gas and agricultural industry for over 30 years�

High Flow Pump/Bore Testing Mobile Groundwater Sampling Pit Wall Dewatering Remote Monitoring & SCADA Control Tailings Dam Leachate Recovery Pollution Recovery Remote Water Supply Contaminated Site Remediation Gas Well Deliquification Solutions Gas Well Management Control Skids

r the e v e t a h W ication, appl has Airwelul tion the sol

Electric Submersible Pumps Solar Pumping Equipment Echometer Well Analysers Pump Installations & Field Services

Sales - Hire - Service 30 Harris Road, Malaga WA 6090 P: +61 8 9209 3355 F: +61 8 9209 2666 W: www.airwellgroup.com.au (Offices also in Queensland and Victoria)

ContiTech is your conveyor solutions provider Choosing the best conveyor belt for your operation is vital for maximising productivity and minimising cost. There is only one rubber manufacturer founded in Germany in 1871 which today has combined sales of $8 billion. Only one that has over 41,000 employees in 150 locations in 31 countries. Only one who provides market-leading Technical and Onsite 14658 A4+

Services for all makes and types of conveying systems.

And only one who has more repeat business customers than any of its competitors. Make ContiTech Australia Pty Ltd www.contitech.net.au +61 3 9721 0600 Melbourne VIC +61 8 6240 3502 Perth WA +61 8 8 91860500 Karratha WA +61 7 48419800 Mackay QLD +61 2 8839 9600 Parramatta, NSW +61 2 4966 3493 Beresfield NSW

sense? Then talk to ContiTech before you make your next conveyor decision. And ensure it will be one of the best you’ll ever make.