Australian Mining April 2016

Page 1

VOLUME 108/3 | APRIL 2016

PRINT POST APPROVED PP100008185

MicroRAE

Real-time, wireless gas monitoring for faster, more informed decisions www.raesystems.com


MicroRAE - For customers that want to go beyond compliance The MicroRAE brings a higher level of user-friendliness and flexibility to wireless gas detection. It enables real-time visibility on safety threats, so you can make faster, more informed decisions to protect your workers, prevent a crisis and optimize operations. Small & Ergonomic design • Dimensions - 117 x 76(66)74 x 24 mm • Weight - 206 g Minimal training time • Simple to operate, so workers can focus on the job at hand. The detector has a tamper-proof design, so workers see only what’s necessary for basic operation Easy to hear and see • Reliable alarm awareness in any environment • 100dB Alarm • Multi Color backlight screen & LEDs for maximum visibility in challenging conditions • Vibrator Alarm Rugged • Stainless Steel front plate • IP67 (Third Party tested) Specifications • Man down alarm with real time remote wireless notification • GPS module for location • Bluetooth technology for smart phone device communications • WiFi • 915MHz Mesh connectivity

www.raesystems.com

+61 3 9464 2770

haa@honeywell.com


HUNTER VALLEY SPOTLIGHT BLACK LUNG IN FOCUS VOLUME 108/3 | APRIL 2016

AUTOMATION

UNDERGROUND MINING THE LATEST IN NEW TECHNOLOGIES

PRINT POST APPROVED PP100008185

SERVING THE MINING INDUSTRY SINCE 1908



EDITORS COMMENT

A NEW GUARD? MINING IS ENTERING A NEW ERA, BUT WILL THIS MEAN A NEW ERA OF LEADERS TOO?

COLE LATIMER

ozmining@cirrusmedia.com.au

A

re we seeing a new changing of the guard for the major miners? There are rumours in the air of more cuts at the top, and conditions are looking ripe for a repeat of the mass management changes we saw recently. Only two years ago we witnessed a bloodbath at the top as CEO changes rocked nearly every major miner, including BHP, Rio Tinto, Anglo American, Kinross, as well as quite a few others. Marius Kloppers, Tom Albanese, and Cynthia Carroll all got the boot when their businesses changed focus and direction as the Great Boom began to lose steam. Anglo American led the way with the axing of Carroll, then it was Rio Tinto’s turn with the ‘mutual’ culling of Albanese, and BHP soon following suit and replacing Kloppers with current incumbent Andrew Mackenzie. At the time it was an investor revolt; all demanding higher and higher returns in the face of the start of what became the downturn; they were almost unwilling to accept that the heady days were over and thus the scapegoating and fingerpointing – driven by diminished returns and many a poor choice during a previously aggressive acquisition period – ramped up, resulting in a change of management. And now with the new CEO at the top of Rio Tinto – as Jean-Sebastien Jacques steps into to Sam Walsh’s shoes – and BHP reconfiguring its entire business as well as getting rid of some major executives such as Jimmy Wilson and Tim Cutt as it merges all of its Australian operations into a single unit, the management landscape is changing once again. So who will be next? Which head will be on the chopping block? Will it be Anglo American’s Mark Cutifani, who has been at the helm as the miner implodes and announces plans to completely pull out of Australia; will it be Vale’s chief again as the Brazilian Government

ASSOCIATE PUBLISHER MARTIN SINCLAIR Email: martin.sinclair@primecreative.com.au EDITOR COLE LATIMER Tel: (02) 8484 0652 Email: ozmining@primecreative.com.au JOURNALISTS BRENT BALINSKI Tel: (02) 8484 0680 Email: brent.balinski@primecreative.com.au BEN HAGEMANN Tel: (02) 8484 0884 Email: ben.hagemann@primecreative.com.au

FRONT COVER

once more decides to wade into its affairs; will Peabody finally file its long predicted Chapter 11 bankruptcy; or will BHP’s Mackenzie feel the sting? Who can tell? This is a new era in mining, and we’re seeing the dramatic re-evolution of the ‘new miner’ that focuses on corporate and social responsibility as well as shareholder returns. Ethical investors are demanding more and more of miners, and not every CEO has the wherewithal to successfully lead from the front and build the business when commodity prices collapse and the market enters a long period of weakness. The market smells blood, and it is up to this new guard to lead the industry into the new age of mining. But as to who will be at the vanguard of this change, only time will tell.

In this, the April edition of Australian Mining, we focus on the latest technologies developed for the underground mining space, including trucks, drills, LHDs, and look into what experts are predicting will be the main areas of focus in underground automation technology. This issue also looks at a number of different mining events, ranging from the equipment and machinery focused Bauma held this month through to the finance and strategy focused PDAC held early last month. The 50th anniversary of the Australian Coal Preparation Society is also covered in detail. The poor state of the commodity markets is also investigated in our finance feature, as we examine how miners are reacting to the crumbling of investments, softening Chinese demand, and weakening commodity prices. As always, we endeavour to bring you the latest mining technology and equipment in our Product Showcase feature.

Cole Latimer Editor

PRODUCTION CO-ORDINATOR ZIBA MAHABAT Tel: (02) 8484 0625 Email: ziba.mahabat@primecreative.com.au SALES MANAGER JONATHAN DUCKETT Tel: (02) 8484 0866 Mob: 0498 091 027 Email: jonathan.duckett@primecreative.com.au GRAPHIC DESIGNER LOUIS SANTOS SUBSCRIPTION RATES Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 READER SERVICES 1300 360 126

AUSTRALIANMINING

3

APRIL 2016

PRIME CREATIVE MEDIA Tower 2, Level 3, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Locked Bag 4700, Chatswood Delivery Centre, NSW 2067, Australia Tel: (02) 8484 0888 Fax: (02) 8484 0633 ABN 80 132 719 861 ISSN 0004-976X 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

SAFETY

HUNTER VALLEY SPOTLIGHT GOING GREEN IN THE HUNTER Unique options for post-mined lands

10

26-27

A CRACKDOWN ON COAL DUST Black lung’s re-emergence, and what can be done

POWER GENERATION

28

UNDERGROUND MINING

12

LIFTING UNDERGROUND MINING A world first robotics event A CUT ABOVE New rock breaking technology

A HYBRID APPROACH How solar and diesel are powering sites

MINERALS PROCESSING

30

13

WHEN IT COMES DOWN TO THE WIRE Underground drilling technology NARROW VEIN MINING Accessing difficult ores

ACPS CELEBRATES 50TH ANNIVERSARY The past, and the future, of coal processing in focus

HIRE & RENTAL

14 32-33

NEW UNDERGROUND TRUCKS LAUNCHED The latest trucks to hit the market POLISH PEDIGREE A new machinery option

THE CHANGING YELLOWGOODS MARKET Will the downturn prove a boon for rental firms?

FINANCE OIL & GAS

34-35

APPETITE FOR LNG GROWS How efficiency management will change LNG operations

18-19

IS GOLD GOING TO DROP? Will gold fall below US$1000?

BAUMA WHAT’S NEW AT BAUMA 2016 The new technology and machinery on show

THE GREAT IRON ORE BATTLE Calls for investigations into deliberate iron ore oversupply

MORE MINERS TO GO BANKRUPT IN 2016 Who will be the next miner to fall?

20

CRANES & LIFTING

40 PDAC AUSTRALIA GRABS PDAC SPOTLIGHT An insight into the world’s largest mining conference

22-23

42-43 SOFTWARE & HARDWARE THE NEXT GENERATION OF MOBILE DEVICES Panasonic launch new ruggedised Toughbooks

24

A NEW TIER IN LIFTING New all-terrain cranes

AUTOMATION & REMOTE CONTROL AUTOMATION WON’T DESTROY JOBS How automation will change miners’ roles THE NEXT FOUR TRENDS FOR THE IIOT The changes ahead for the Industrial Internet of Everything

REGULARS

INDUSTRIAL COMMENT

6

NEWS

8 AUSTRALIANMINING

PRODUCT SHOWCASE 4

APRIL 2016

48

EVENTS

52


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

WHY ARE WE NOT SEEING ANY DISCUSSION REGARDING INNOVATION AND TECHNOLOGY ASSOCIATED WITH THE RESOURCES INDUSTRY? DIGGERS & DEALERS FORUM CHAIRMAN NICK GIORGETTA DISCUSSES THE DISMISSAL OF MINING’S CONTRIBUTION TO MORE THAN JUST THE ECONOMY.

G

overnments and communities are happy to promote an association with the resources industry when commodities prices are high and taxes and royalties associated with the development of natural resources in Australia are robust and the industry is creating substantial employment, capital expenditure and a general positive economic contribution. When the commodity prices are in a down cycle, it seems that the resources industry becomes the “invisible industry” for general Australia. The Federal Government has a focus on developing enthusiasm and investment for innovation and technology which is appropriate and hopefully will generate new ideas with associated emerging new industries and strong economic contribution in a substantial manner for the Australian economy. Almost no profiling has been provided when discussing the benefits of innovation and technology within the resources sector that has demonstrably provided over a sustained period some of the most effective innovation and new technology developed in Australia and historically the industry has also been early adopters of new technology. The Australian mining industry since the 1930’s has pushed the boundaries of developing new ways to operate; mainly as a result of managing assets that are remote with associated hurdles. The challenges aligned with remoteness have also created opportunities to develop new and practical technological breakthroughs. These technologies and methods of operating are often initiated in remote regions in Australia and adopted as “state of the art” operational processes internationally. Since the 1980’s the Australian resources industry has been involved with the development of, or has been early adopters of the following non-exhaustive list of technologies that have often been low profile but represent significant advances in the manner the resources industry has operated. • Carbon in pulp processing • Satellite imagery • Remote controlled treatment facilities • Remote controlled driverless trains • Remote controlled driverless trucks • Geotechnology • Hard rock Seismic technology • Automated remote sensors • Drone technology • Satellite telephones • Remote controlled underground mining equipment • Advanced simulation technology These are a few of the examples that the mining industry uses as day to day operating processes but the technologies have a relatively low profile as innovation for the general public. Notwithstanding the low profile,

in any case study each of these examples stands alone as a major breakthrough that Governments should be shouting about as leaders of innovation and technology. These have had direct positive impact on: • Safety • Productivity • Profitability • The ability to exploit remote resources and create positive economic activity for regions and for the Nation Almost every company operating in the Australian resources industry has in the last few years utilised the efficient use of technology and innovation as well as excellent management practices to drive operational efficiencies and operating costs in all areas of the industry and are now again reaching levels that allow under reasonable commodity prices companies to deliver sustainable profits. Without an industry that takes a proactive and positive approach to developing new and efficient technologies and innovative operational activities, many existing resources that have generated strong positive economic contributions for companies and the Nation would not have been able to be practically or economically developed. Numerous subsidiary industries have been developed aligned with delivering the new technologies and processes to the industry creating substantial employment. It is impressive that the Government is spending funds and energy to encourage new ideas and test boundaries and to encourage companies to be innovators and to be bold and take risks. It would be appropriate for the Government to hold the Australian and International resources industry up as providing long term leadership in developing and implementing new technology and innovation. AUSTRALIANMINING

6

APRIL 2016

It is appropriate given the success of the industry in this area that scientific and possible associated financial and organisational support be directed to generating the next phase of technology that will drive the next mining boom. After all, this is an industry that has a track record of success in this area and the industry has a strong historic association of collaboration with organisations such as CSIRO, the Western Australian School of Mines and other pre-eminent organisations that can deliver world class research. This industry has always understood that the time to look for new resources and develop new methods of operating is not when the commodity prices are high. The industry understands lead times in generating successful technology through to commercialization and implementation. Commodity prices are showing some early resilience. Let’s not ignore our remarkable industry when focusing on technology and innovation. Let’s use the expertise we have to tap into the enthusiasm the Government seems to have for new ideas. It would be appropriate in the forthcoming budget where we would expect that innovation and technology will feature, that the mining and resources sector is provided for as a leader and a successful developer of and user of technology and innovation. We are sending a copy of this to the Prime Minister, the Minister for Resources, Energy and Northern Australia and the Minister for Industry, Innovation and Science for their reference and we would encourage other organisations that represent various areas associated with the resources sectors and professional organisations that have a contribution to make to consider making a similar submission. If we are silent we will be ignored.


Dig deep into your mining expertise You’ll find innovative solutions that stand up to corrosive and erosive conditions.

No matter where your mining operations take you, we provide packaged solutions and process expertise to support all of your mining needs. From our industry-leading Mono™ and Moyno™ progressing cavity pumps to our fiberglass piping systems, Kenics™ mixers and Brandt™ shakers, we’re ready to put together the right package for you. Let us support your most corrosive and erosive conditions with proven dewatering systems, bulk explosion pumps, cooling solutions, settling pond clean-up, tank mixing and more. Learn more about Process and Flow Technologies at nov.com/pft/mining © 2016 National Oilwell Varco | All rights reserved


NEWS

RIO TINTO ANNOUNCE NEW CEO SAM WALSH HAS ANNOUNCED HE WILL RETIRE FROM RIO TINTO IN JULY, AND WILL BE SUCCEEDED COPPER AND COAL HEAD JEAN-SEBASTIEN JACQUES. Following this announcement late yesterday Jacques immediately joined the miner’s board and stepped into the role of deputy chief executive in order to create a smooth transition into the top position. Jacques has led the copper and coal business for more than three years. “He has delivered a step-change in both safety and cash performance while significantly reducing costs,” Rio Tinto said in a company statement. Speaking on his transition to CEO, Rio Tinto chairman Jan du Plessies said, “Jean-Sébastien is a very experienced executive with a demonstrated track record and brings a unique blend of strategic and operational expertise.” “He has run complex operations and projects across five commodities and five continents. J-S is a highly-regarded leader who shares Rio Tinto’s strong values and has embraced its culture. “Today’s announcement is the culmination of a comprehensive and deliberate execu-

tive succession process. The board has decided that J-S is the right person to lead Rio Tinto in an increasingly complex world filled with both challenges and opportunities for our industry.” Jacques welcomed his appointment, and thanked Walsh for his steering of the company over the last few years. “The board appointed Sam as chief execu-

tive at a challenging time for our company and I am very grateful for his tremendous leadership during the past three years,” Jacques said. “Against the backdrop of a volatile economic environment, Sam and his team have transformed the business, removing more than $6 billion of costs, strengthening the balance sheet and returning more than $13 billion to shareholders. Sam leaves Rio Tinto as a much stronger company, with a bright future.” He went on outline his focus for leadership of the business, stating, “The safety of all of our people across the world will remain a key focus and, together with Sam, I will take every opportunity over the next few months, to meet and listen to our shareholders, customers, employees and stakeholders, all of whom play an integral role in making this great company so successful.” Chris Salisbury has been appointed as acting chief executive of the now vacant copper and coal product group.

SODEXO WINS $2.5 BILLION RIO CONTRACT

Sodexo has been awarded a ten year, $2.5 billion contract to provide facilities management services to Rio Tinto’s Pilbara operations. As reported earlier by Australian Mining, Sodexo was shortlisted for the deal ahead of Spotless Facilities Services and ISS Facility Services last year. Sodexo announced the win late yesterday, stating that this is the largest contract of its kind for the company. The contract’s scope includes project management and integration; building and grounds maintenance; accommodation and catering services; village and town services; cleaning services; transport services; aerodrome management; and

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

SANDVIK FORMS NEW MINING DIVISION

property management. “Sodexo was successfully awarded the contract after demonstrating a number of strengths in keys areas such as consistency and quality in services, alignment with improving quality in village life, and strong engagement with communities located within their operational footprint,” it said in a company statement. Michael Landel, Sodexo CEO, stated the contract is a major step forward for the business. “Mobilising an international team of nearly 100 industry experts, we designed a solution for Rio Tinto that reflects the commitments of both companies to improved performance, responsible growth and development of the communities in

which we operate,” Landel said. “I am extremely pleased and proud to expand this partnership, which will bring the best of Sodexo to Rio Tinto.” Sodexo’s head of its worldwide mining division, Johnpaul Dimech, said, “Looking to the future, Sodexo’s role is to support Rio Tinto’s long-term strategic plan by continually reengineering ourselves to operate at the right cost while providing seamless service solutions and anticipating evolving needs in quality of life. “This is a unique opportunity to strengthen the commitments and values we share to ensure an uncompromising safety culture and engagement with communities who we work alongside with in the Pilbara.”

AUSTRALIANMINING

8

APRIL 2016

Sandvik has unveiled a new business division, Sandvik Mining and Rock Technology. The division was formed through the merging of the Sandvik Mining and Sandvik Construction divisions. According to Sandvik, the new division “will be organised in a de-centralised business model with separate product areas based on the product offering”. “Each product area will have full responsibility and accountability for its respective businesses.” Bjorn Rosengren, Sandvik’s CEO, explained the reasoning behind the merger. “Products developed for the customer segments mining and construction are based on common technologies with a similar aftermarket offering,” Rosengren said. “In addition, manufacturing units are already largely shared with to some extent shared front line resources. By joining the operations into one business area we achieve a leaner and more efficient structure. The decentralised business model enables an even clearer focus and faster response to our customers.” The new structure will begin operation in July. Current head of Sandvik Mining, Lars Engstrom, has been appointed president of the new division, while current president of Sandvik Construction, Dinggui Gao, will leave the company on 1 July.


The easiest way to find the right products and suppliers

MANUFACTURING | MINING | INDUSTRIAL

8

ferret.com.au

(

1300 156 836

AM0216_ADS.indd 25

20/01/16 1:44 PM


HUNTER VALLEY SPOTLIGHT

GOING GREEN IN THE HUNTER INNOVATIVE CATTLE GRAZING TRIALS ARE PROVIDING A VIABLE OPTION FOR POST-MINED LAND. SHARON MASIGE WRITES.

M

iners, now more than ever before, are focused on corporate and social responsibility, and the impact their operations will have long after they stop mining. One miner is making leaps forward in investigating how it can repurpose its old mines for agricultural uses. Glencore Coal’s Liddell mine has commenced a third cattle grazing trial following positive results from two trials conducted on their land previously used for mining. Glencore began their first cattle grazing trial at the Liddell mine in December 2012. Trials at the mine, located halfway between Singleton and Muswellbrook in NSW Upper Hunter

Valley, sought to determine whether rehabilitated pastures can sustain cattle grazing to an extent similar to before the land was mined. The trail had three main objectives: to analyse and compare livestock, soil and vegetation results to an un-mined pasture; to establish guidelines on ways to create and maintain rehabilitation areas; and to prove cattle grazing as a rehabilitation suitable option for use on previously mined land. The initial trial involved monitoring adjoining natural and rehabilitated mines measuring 70 hectares each, with the rehabilitated land having not been sown between three and ten years. Two groups of 30 Charbray steers were used in the trial, positioned on either the

CATTLE GRAZED ON REHABILITATED LAND SHOWED HIGHER WEIGHT GAINS

natural or rehabilitated land at a stocking rate of one steer per 2.4 hectares; a range over the recommendations of year round stocking by the NSW Department of Primary Industries. In June 2014, after 18 months, the trial identified an overall weight gain of cattle grazed on rehabilitated pasture. At the beginning of the trial the cattle had an average weight of 406kg and at the end weighed an average of 662kg; a 250kg increase per animal. This, in turn, generated higher financial yields, with each steer selling for nearly $220, close to 25% more in price than cattle grazed on natural land. Cattle reportedly grazed more frequently on the rehabilitated pasture due to the higher feed quality of the land which contained legumes and introduced tropical pasture species. In contrast, the natural land was mainly comprised of native and natural grasses which tend to have lower feed quality for cattle. Results from topsoil analysis was varied. While natural pastures were more acidic, rehabilitated pastures maintained an alkaline nature. Higher levels of sodicity and salinity were found in the rehabilitation pastures. Stock water quality in both pastures was acceptable for grazing cattle. The second phase of the trial showed minor differences AUSTRALIANMINING

10

APRIL 2016

from the first. Conducted over 12 months, between November 2014 and December 2015, using 20 steers, it found cattle grazed on rehabilitation pastures still gained weight, although the difference was less than the first trial, with an average of 14kg. This time, natural land maintained a better feed quality as legumes and single super was used in both pastures. Agricultural operations in the Hunter Valley often use this method to improve the quality of their pastures. The cattle from the natural and rehabilitation pastures received good returns overall; however, as cattle from both pastures were sold at a flat rate, returns from each treatment could not be evaluated. Despite the positive results of both trials the results are not yet definitive, with a third trial starting last month to determine trends over a long period of time. Previous rehabilitation initiatives have been successful in Australia, with the nearby Mt Owen coal mine receiving international acclaim for its efforts. The mine conducts ongoing rehabilitation of forests, pasture, and native woodlands in postmined land to establish sustainable pasture and create habitats for native wildlife. Land that began rehabilitation during the 1990s has since developed native

vegetation similar to that of the adjacent Ravensworth State Forest. This restored area has also seen the return of native animals such as gliders and quolls. Members from the International Mining for Development Centre (IM4DC) inspected these rehabilitated areas in March 2015. Director of University of Queensland’s Centre for Mined Land Rehabilitation Professor David Milligan said that the mine showcases the best in rehabilitation application. Mangoola, another Glencore mine in the Hunter Valley, has included natural landform into its mine rehabilitation program and aims to return the entire post-mined land to the natural environment that surrounds it. Mangoola’s operations manager Tony Israel acknowledged how monitoring the effect of mining on the environment is an overall value of Glencore. “For us at Mangoola it’s part of our site values managing the impacts we have on the environment and in the community,” he said. In 2011 Mangoola began to transform the land into native animal habitats and for agriculture. Within the last four years over 145 hectares of natural landform has been created, with Glencore expanding this reform to its Bulga and Ravensworth mines. AM


T H E EVO LU T I O N O F M I N I N G It’s time to move on. The future belongs to the smarter. The smaller. The ones that get the job done, but with less fuel, fewer parts and fewer problems. The ones that will deliver higher availability, increased productivity and better profi tability. Welcome to a new era of mining solutions at scania.com/global/trucks/scania-mining

C206386_Scania_Mining_Ad_B_235x297mm.indd 1

2016-03-14 11:46


UNDERGROUND MINING

LIFTING UNDERGROUND MINING A WORLD FIRST EVENT HAS DELVED DEEP IN TO ROBOTICS AND AUTOMATION IN UNDERGROUND MINING.

W

hen people imagine the automated or remote control mine they think of massive open cut operations, with unmanned trucks making their way across the site. The machine, not the person, will be running the mine. It will become a matter of artificial intelligence mixed with remote operating centres controlling vehicles traversing all over the site without a human to be seen apart from in the workshops. However many of the major leaps forward in automated mining and robotics are not happening on the surface, but underground. The technology, although still in its infancy, is making major strides forward in lifting safety and productivity levels as it removes the operator from the rockface, and ensures measureable, consistent, and reliable machinery action. The field has also now taken another important step following the holding of the world’s first global workshops for robotics and autonomous systems in underground mining. Organised by Sheffield Robotics and STFC Boulby Under-

ground Laboratory, with support from euRobotics; the Science and Technology Facilities Council; and SPARC – The Partnership for Robotics in Europe, the event brought together 55 attendees from the mining, robotics, and autonomous sector for collaborative workshops aimed at solving the main challenges this new sector is facing. According to the group, “After a morning of briefings and introductions to mining and robotics, delegates were split into working groups, to discuss the most pressing challenges and opportunities facing the mining industry, and to consider which of these challenges and opportunities could be addressed with robotics and autonomous systems.” “Delegates were asked to consider what they had heard in the morning sessions and to bring their own experience and perspectives in considering the most significant of these critical challenges. “The challenges were then ranked in order of perceived importance by the participants and the opportunities for automated systems to provide a solution.” Unsurprisingly, delegates rated the issue of safety the main challenge for the industry and the space where automated and

robotic systems are likely to have the most impact. It addresses many risks faced in underground mining by removing them from the mine itself, allowing for teleremote or semi-automated operations, where a single operator can control a number of vehicles from a single location, addressing the issue of productivity and energy efficiency in operations. An issue which is only likely to grow in prevalence as easy to access ore is depleted – that of accessing smaller and new deposits in remote locations and narrow vein mining – was voted the second most important issue which could addressed by robotised mining systems. According to a Rio Tinto seminar in 2010, in 2009 underground operations accounted for 26 per cent of all copper production, however Rio forecast that by 2025 underground operations would account for 40 per cent of global

TELEREMOTE MINING IS CHANGING UNDERGROUND MINING

AUSTRALIANMINING

12

APRIL 2016

EXPERTS IN AUTOMATION & ROBOTICS GATHERED TO DISCUSS THE ISSUES

copper production, growing as a percentage of operations as automation sees increased uptake. Technology-wise, one of the major indicators of the greater importance being placed on underground mining has been the shift of previously open cut focused mining machinery manufacturers – such as Caterpillar and Komatsu, moving underground. Caterpillar did this through its acquisition of Bucyrus, and a greater focus on new underground equipment; Komatsu through its partnership with GE Mining. Underground contractor Pybar’s group business development manager David Noort explained it succinctly to Australian Mining, “If you want to get into the mining game, or strengthen your position in it, you have to get in to underground.” Narrow vein mining has been touted by many as the future for mining, particularly in Africa, although it is unlikely to become a major component of the Australian hard rock mining industry in the near future. Speaking to contractors at a recent mining event, they told Australian Mining that as mines

get deeper and more expensive and higher grades are harder to come by many miners will turn to narrow vein mining to cut costs and operate more efficiently as tunnels no longer have to be as large. Automation opens up the possibility of accessing these narrower veins without putting workers at risk, in turn lifting safety as it removes risk. The skills shortage, an issue exacerbated by an aging workforce, was also in focus, in particular a younger workforce entering the sector and their wider use of technology that falls under the Internet of Everything umbrella. University of Sheffield professor Tony Dodd, from the department of automatic control and systems engineering as well as Sheffield Robotics, explained “the aim of the day was to formulate a robotics and autonomous systems research strategy involving key stakeholders”. According to Sheffield Robotics, the results from the event will be used to as the groundwork to build upon recent initiatives, such as SPARC, to construct a roadmap for the future of the industry as it struggles under the current downturn. AM


UNDERGROUND MINING

A CUT ABOVE NEW TECHNOLOGY IS LIFTING UNDERGROUND ROCK BREAKING CAPABILITIES.

C

RCMining has partnered with Joy Global to further develop and advance its DynaCut technology by modelling equipment performance across a range of rock properties. Licensed to Joy Global since 2006, CRCMining’s ODC (Oscillating Disc Cutter) technology was rebranded DynaCut with Joy Global taking over equipment development. In 2011, Joy Global engaged with CRCMining and potential technology users to improve knowledge of fundamental rock breakage and utilise this knowledge to further enhance equipment performance. Having commissioned its test machine in 2013, Joy Global has since then made substantial improvements to the operating performance and mechanical reliability of DynaCut technology. When the test machine Surface Rig 1 (SR1) was conceived in 2011, the performance of a single DynaCut cartridge in hard rock was 2m³ per cutting hour with an average of 10 hours between breakdowns for the cutting device. Based on the chassis of a mid-sized road header, the SR1 machine

was developed for the specific purpose of enhancing DynaCut technology. When conceptualising the design of a mine development machine with multiple cartridges and multiple booms, it was apparent that a number of cartridges would be required to achieve competitive excavation rates. However, it is possible today to achieve commercially attractive rates with a single cartridge, creating substantial benefits for the application of such a simplified arrangement. CRCMining Director of Industry Engagement Steve Powell recalled that the Joy Global team was intent on improving performance and reliability of DynaCut technology; however, nobody predicted the level of success that has now been achieved. At the CRCMining forum, Brad Neilson from Joy Global outlined how the team was working together to advance the understanding around fundamental rock breakage mechanisms as well as key rock properties impacting DynaCut performance. He added that the Fundamentals of Rock Cutting project team was working with Joy Global’s full-scale cutting

AUSTRALIANMINING

machine, which was applied to substantial rock samples rather than laboratory scale samples. Steve Styles, Hard Rock Mining Program Manager for Joy Global said SR1 has demonstrated that a single DynaCut cartridge is capable of excavating igneous hard rock with Instantaneous Cutting Rates in the range of 15m³ to 30m³ per hour for various igneous rock types. Tests on massive sandstone (nominally 80MPa

13

APRIL 2016

INCREASED CUTTING RATES HAVE BEEN RECORDED

UCS) are achieving results up to 80m³ per hour. Additional tests will be conducted on sandstone in early 2016. CRCMining has been working with Joy Global on several projects, co-funded by CRCMining, Anglo American and Joy Global. AM


UNDERGROUND MINING

WHEN IT COMES DOWN TO THE WIRE NEW UNDERGROUND DRILLING TECHNOLOGY IS LIFTING SAFETY AND CORING.

D

rilling for the mining sector presents a number of unique challenges not typically faced in other industries. These challenges are multiplied when it goes underground. When it comes to underground coring it is no different. The average surface hole is anywhere between minus 60 degrees to minus 90 degrees in angle. In this range of dip, gravity typically pulls the inner tube – the assembly that collects core – to the bottom of the hole and prevents inner tubes from accidently coming out, except when drilling into pressurised aquifers. For underground coring holes, the angle is typically between minus 20 to plus 90 degrees which means drillers need to get inner tubes to the bottom of the hole and it allows for the possibility of an uncontrolled ejection and injury due to gravity – an issue not faced in surface mining. When wireline coring was first intro-

duced – in 1958 – flat and up-holes were not addressed and were cored conventionally by tripping rods to retrieve core. By the 1970s wireline systems that were pumped was introduced however they did not indicate when the inner tubes were in place i.e. latch indication, and were prone to uncontrolled releases. While Boart Longyear released the Quick Pump-in Link Latch underground coring system in 2003 to provide latch indication, there were still a few steps to go to increase productivity and safety. To lift safety during up-hole coring, it has now released its Quick Pump-In Roller Latch system with the first hold-back brake used in any wireline coring system. If the inner tube moves due to gravity in an up-hole, the spring-driven retracting case deploys brake rollers. This braking action prevents movement of the inner tube under loads as high as 89 kilonewtons, limited only by the strength of the drill rod’s material. “Only when the wireline is under tension will the brake rollers retract, allowing for a controlled recovery,” Boart Longyear said. “In the event of a blow-back or free-fall situation, the rollers automatically engage and immediately stop the head assembly, protecting drillers from a hazardous falling inner tube. The brake has the added benefit of providing a virtual ‘extra set of hands’, holding in place once inserted into the rods, allowing operators to manage loading chambers and water swivels.” While other underground coring systems use spring loaded latches to lock into place at the bottom of the hole that rub along the inside of the rods as the tool descends, the new system uses brake and latch rollers which create less friction due to their rolling action. “Reduced friction contributes to the significantly reduced inner tube tripping times, as much as 30 per cent faster than the previous Quick Pump-in Link Latch system,” Boart said. In addition to its primary latch indication function, the system also has a fluid seal on pump-in and a fluid bypass during retrieval, increasing the overall speed of the operation. It also has an optional up-hole bushing that blocks water from passing through the head during retrieval, eliminating the usual delays faced as fluids drain from the rods. AUSTRALIANMINING

Water control can further be improved through a fluid retention spring and bushing the overshot. During inner tube retrieval the wireline cable may stick, in which case the stock overshot needs to be retrieved and redeployed; with the fluid retention spring installed it forces the ball back into the bushing, allowing fluid pressure to be maintained until the overshot has landed. The new system also prevents stuck tubes. In traditional pivoting latch systems, axial clearance and axial movement is required during wireline retraction. This technology employs rollers that directly retract or deploy without needed axial clearance or movement of the inner tube. “This prevents the inner tube from jamming when it is over-filled,” Boart

14

APRIL 2016

THE BRAKE ROLLERS ALLOW FOR A CONTROLLED RECOVERY

Longyear said, “also, conventional latch mechanisms can be difficult to retract against a jammed ‘core block’, where the rollers will simply drop back in upon wireline retraction, eliminating this source of lost productivity.” Operator safety has also been in focus. The significantly lighter V-Wall rods are reportedly 30 per cent lighter, and create less driller fatigue during operation and rod handling. The design of the v-lip seal elastically adjusts to the interior of the drill rod, quickly changing its size and shape to accommodate the changes in mid-body diameters. AM


Keep it Safe, Keep it Clean

NARROW VEIN MINING DEMANDS HIGHER FLEXIBILITY OF EQUIPMENT

E

asy to access and mine ores are diminishing at an increasing rate. Operators are now chasing narrow, previously less economical veins to continue. However, narrow vein mining poses the question: is it better to use selective mining with dedicated narrow machines which gives limited productivity per tonne, or widen the headings and cut the vein which generates higher productivity but increases the volume of waste? Increasing the production heading size and accepting a higher waste rock index is preferred for higher productivity. Wider headings allow standard drilling rigs, bigger LHDs and standard long-hole drilling equipment. These types of machines produce up to five times more tonnes, but generate a higher level of waste rock.

In comparison selective mining can be used, which follows the vein with cuts as tight as possible to lessen the amount of waste. It produces less tonnes which ultimately requires smaller mills and flotation. It also has less of an impact on the environment. Selective mining, however, creates a compact operating area, needs dedicated equipment and low productivity of tonnes. With less space, equipment suppliers are limited in their safety, reliability and productivity. Mine Master took this challenge and designed a new narrow vein drilling rig, which offers more ways to utilise the equipment. Due to limited space in production headings, kinematic of working unit has to be ready for face drilling as well as vertical long-hole drilling with a quick reset of the feeder position. The new machine is equipped with a field tested design of a heavy duty 2-axial rotary actuator,

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

allowing for easier position changes from horizontal to vertical within limited areas of tight headings. Additional dump cylinders improve the correction fore and aft movement during vertical drilling and match the direction of vertical drilling in accordance with vein deposit. Tramming and drilling stability issues caused by the narrow operating dimension has been solved by another design concept previously proven on low profile machines. Central oscillated vertical main pivots change the tyre load distribution and increase stability during tramming on uneven roads and headings. The drilling process which requires high stiffness of the carrier, can be achieved by the machine’s rigid chassis. Mine Master has implemented a new solution to convert the flexible, oscillated carriers to rigid modules. The new machine will soon be tested in Australia. AM

ESS provides competency based technicians to specifically monitor and maintain Conveyor Belt Cleaning, Sealing and Support systems. ESS technicians are able to inspect conditions and produce a condition report and maintenance plan that can be actioned by Owners, Contracting companies or ESS technicians in a manner that prioritizes the maintenance based on risk analysis ESS offers a range of flexible maintenance and monitoring services to ensure optimum performance from the plants conveying systems. We tailor our services to your requirements. ESS Maintenance and Monitoring Services Include; • Installation and Commissioning • Service and Maintenance • Inspection and Reporting Services • On site trouble-shooting • Site Compliant Vehicles and Equipment • Maintenance Contracts • Conveyor Accessory Maintenance Training

Proudly Manufactured in Australia AUSTRALIANMINING

15

APRIL 2016


UNDERGROUND MINING

NEW UNDERGROUND TRUCK LAUNCHED ARTICULATED DUMP TRUCK MANUFACTURER BELL EQUIPMENT HAS DEVELOPED A RANGE OF NEW TRUCKS, LAUNCHING THE VEHICLES AT BAUMA.

A

s part of its new release, the company will be using the massive mining machinery event in Germany (read page 20 to find out more about Bauma) as the launchpad for the release of its new trucks. One of the main attractions will be the unveiling of its latest generation of underground articulated dump trucks. According to the company this new range of upgraded vehicles will help to set Bell apart from other vehicle manufacturers in the sector, while at the same time help operators lift their margins in the face of a tighter environment. “The industry may be going through a tough period but mining continues,” Bell Equipment marketing manager for articulated dump trucks, Tristan du Pisanie, said. “The biggest change is that the environment is much more competitive than it was a few years ago,” he said. “We believe that this will result in

greater emphasis on efficiency in all areas of mining operations, and our ongoing research and development puts us in an ideal position to offer solutions to assist with this. Our trucks, being locally manufactured, have a lower capital cost and spare parts pricing while still burning less fuel for the same productivity. Combined these factors have the potential to offer a significant reduction in the running cost of an underground ADT.” The new machine, designed for underground operation, is the latest generation B33L, a 33 tonne low profile articulated dump truck, and reportedly now the largest low profile truck in Bell’s range. To improve its underground capabilities “we use Kessler axles, which have spring applied hydraulic release (SAHR) brake systems, which is a requirement of most underground mines,” du Pisanie said. “The main structure is designed to keep height to a minimum and due to the harsh operating environment it is

AUSTRALIANMINING

also much more robust than the standard ADTs through the use of thicker steel plate.” The ADT is designed to provide more support, and had a generating gross power of 290kW and gross torque of 2000nM. Based off Bell’s field proven B40D ADT, the B33L “is fast establishing itself as a preferred production tool due to its powerful drivetrain and suitability to heavy duty mining”. On the back of the new design Bell has also focused on increasing its spare parts stock levels for its underground ADTs at its Global Logistics Centre, as well as a number of its customer service centres. While the machine has only just been released, Bell is looking ahead to continue upgrades of the machines, including developing side mount cab options. “We’re also looking at the possibility of developing a larger underground truck, which should deliver a lower cost per tonne,” du Pisanie stated. “However there are challenges with regards to cooling and extraction in an underground mine. Larger trucks will generate more heat, which would need to be balanced by the productivity gains. The bottom line is that each mine needs to understand its own optimum equipment configuration,” he said. It also has plans to enhance its underground fleet management through new wi-fi solutions. Bell is also launching other new trucks at Bauma, and showcasing its 60 tonne all weather trucks, as part of its new E-Series. The E-Series large truck programme has been in development for three and a half years and is planned for worldwide

16

APRIL 2016

release, the new range – which includes the B50E and B60E – are powered by the new Mercedes Benz HDEP engine platform, and are optimised for offhighway use by MTU. They are also fitted with Allison 4700 transmission, du Pisanie stating, “The move to a seven speed Allison transmission across the range, with the exception of the B35E, effectively delivers better performance due to the smaller steps between gear ratios, which keeps the engine at optimum revs.” Bell’s E-Series have increased power thanks to the new engine platform, while the move to a larger transmission provides for seven gear ratios for better grade ability with reduced overall fuel consumption, whilst payloads have already increased. “The [former] D-Series has proven itself as the industry benchmark delivering the lowest cost per ton of dirt hauled and a key requirement of the E-Series large truck programme was to improve on this,” du Pisanie said. “During comparative testing between the B40E and the B40D it was found that, taking into account all the variables, the B40E will deliver a six to seven per cent lower cost per tonne to Bell customers than the B40D.” The company has also taken an innovative approach in terms of its B60E, incorporating a bin much wider than an ADT, resembling a conventional rigidtype bin. Telescopic cylinders tuck under the bin to push it up in stages during the tipping process, with a cradle supporting the rear axle and struts being used to create shock absorption for a controlled ride. AM


UNDERGROUND MINING

POLISH PEDIGREE COMES TO MINES DOWN UNDER A POLISH UNDERGROUND MOBILE PLANT MANUFACTURER IS MOVING INTO THE AUSTRALIAN MARKET, FORGING A NEW RELATIONSHIP WITH KOPEX WARATAH.

A

ustralian miners have always been fond of quality European manufacturers of mobile plant. One of the newest entries top the Australian market comes from the coal mining capital of Europe: Poland. Hard rock mining equipment manufacturer KGHM ZANAM has recently struck a deal with KOPEX Group, a specialist supplier of underground equipment, to supply a range of new machinery to the Australian market. With a range of KGHM ZAMAM products now available in Australia, KOPEX can now supply and maintain a range of new underground machines, including low loaders, boggers, drilling and bolting rigs, and other auxiliary machines.

KGHM ZAMAM is headquartered in Poland and can boast a true mining pedigree as a subsidiary of one of the world’s biggest copper and silver producers, KGHM Polska Miedz S.A., and has delivered more than 2100 mining vehicles to customers all over the world. A push for further global expansion has brought the Polish manufacturer to Australia to reach agreement with KOPEX Waratah and join their existing portfolio of shuttle cars, feeder breakers, and road headers. The European machines are designed for work in tough underground conditions, with efficient cooling systems and crush resistant cabins. The cabins are designed to sustain an impact equivalent to 60 kNm, or six tonnes dropped from a height of one metre. One of the trademarks units from

KGHM is the LKP-1601 loader. Manufactured from hard-wearing Finnish steel, the LKP is designed to resist fatigue and minimise wear on any exposed parts. Advanced monitoring and diagnostic systems which allow wireless data transfer for maintenance, with data readable from any device such as a smartphone, meaning less downtime for diagnostics before taking the machine out of service. Data reporting is complemented by an application for fleet monitoring to deliver detailed operational reports. The LKP is the largest loader on offer from KGHM, with a load capacity of 17.5 tonnes. Safety measures include an emergency active control system, which can supply steering and brake hydraulic power from a battery unit. This provides backup power in the event of failure of the internal diesel engine, and allows

KONECRANES JIB CRANES Konecranes Pty Ltd Tel: 1300 937 637 Email: sales.magazines@konecranes.com Website: www.konecranes.com.au

Load capacity 2,000 kg

Rotates up to 270 degrees

Konecranes jib cranes are very easy to install, use, and even relocate in your work environment. Our range has lifting capabilities up to 2,000 kg, and is ready for immediate delivery. Larger capacities or special requirements can be engineered to order. Jib cranes offer cost effective lifting solutions in a variety of applications and industries. They optimise your production and eliminate manual handling risks.

AUSTRALIANMINING

17

APRIL 2016

for easy manoeuvring into position for towing. KGHM released the LKP-1601M to the Russian market for testing last year, which revealed the machine was good for 96.17 per cent operational availability over a six month trial. With machinery manufactured in Poland using components sourced from around the world, sale prices are very competitive, and can deliver lower lifecycle costs than other OEMs. KOPEX Waratah is based in NSW, and also has a workshop in Mackay, Qld. KOPEX has teams of skilled electrical and mechanical field service technicians on-call to carry out installation, commissioning, repair and maintenance of underground equipment with rapid response times for breakdowns and other unscheduled maintenance tasks. AM


OIL & GAS

APPETITE FOR LNG GROWS, DESPITE INDUSTRY STRUGGLES AS ENERGY PRICES FALL, THE NEED FOR GREATER EFFICIENCIES GROWS. ASPEN TECHNOLOGY DEY PETER CARO WRITES.

D

espite record low LNG prices and increasing capital costs for new production plants, there is a pressure on the industry in AsiaPacific to increase capacity by improving efficiencies and constructing more facilities. Demand for LNG as a carbon-friendly energy source continues to

grow in many regions, with appetite highest within Asia-Pacific. Before the decade’s end, when most of the current under-construction projects reach production, there will be a short-lived period of oversupply. But by 2021 the world will need additional supply capacity – more output, more plants. Nonetheless, in the current volatile economic climate, and because of the project

AUSTRALIANMINING

construction timelines of five to ten years, investors are reluctant to commit to new LNG projects. At a macro level, there are engineering design solutions that can aid in mitigating investment risk, assist with optimising design and lowering construction costs, as well as, at a detailed level, improve efficiencies for existing facilities.

18

APRIL 2016

LNG price on the slide

The crude oil spot price continues to fall, and since the LNG price is indexed to the oil price, LNG supply prices are racing to the bottom. This is despite the fact that in the Asia-Pacific region LNG supply contracts are long-term (as Australia has signed with Japan), so these contracts really only delay the inevitable. From the start


OIL & GAS

of 2014, the LNG price at the Japan/Korea Marker (JKM) has fallen 60 per cent. The impact on existing large Australian LNG plants, mostly using offshore gas feeds, is devastating, and they are scrambling to find ways to improve efficiency and reduce operating costs (OPEX). Optimising the existing plant, with a focus on the liquefaction process (40 per cent of the operating costs) offers the quickest and most significant OPEX reduction. Optimising this process by implementing advanced process control (APC) can improve efficiency and bolster plant reliability, resulting in greater yield and lower costs.

LNG demand on the climb

The demand for LNG from the AsiaPacific regions continues to grow at around 4 per cent annualy. This is despite the fact that, since 2012, Japanese consumption

has dropped as they recommission their nuclear power plants that were mothballed after Fukushima. The excess supply has been absorbed by increased purchasing from China and Korea, but in anticipation of significantly higher demand, offshore natural gas and CSG-to-LNG projects were launched nearly a decade ago, and as these come online there will be an over-supply for a few years, and then a supply shortage from 2021. It is anticipated that by 2017 Australia will be the world’s largest LNG exporter. According to Philip Olivier, CEO of ENGIE Global LNG, “Oil will not stay at current lows so we should avoid being hit by a double-whammy of rebounding oil prices and a growing shortage of LNG supply.” Looking forward from 2021, and with a five to ten-year construction timeline, more new LNG facilities need to be on the drawing boards right now. But the construction costs (CAPEX) of LNG facilities, recognised as one of the most expensive process plants to build, have increased by 20-30 per cent since 2005, however 80 per cent of the current projects are over budget and behind schedule. By implementing leading edge process plant design software that incorporates sophisticated capital cost estimating, it is possible to mitigate against inefficient upfront design, avoid over-engineering (and over-spending), and improve execution. Using these tools will help to reduce the capital costs and project blow-outs, reducing investor risk and uncertainty.

Modelling the market

To further reduce FID hesitation in this volatile LNG market, investors demand greater assurance than ever before that every business scenario has been simulated and tested. Economic scenarios such as future oil prices, demand, the impact of renewable energy, long-term contract viability, political stability, and much more need to be modelled by the economic strategists. It is imperative that the potential LNG project – including conceptual design, detailed design, project costing, anticipated throughput, planned efficiency, operations and maintenance, as well as ROI – is extensively modelled and tested to take into account every conceivable scenario. This includes gas feed composition variations; gas feed pressure changes; output demand volatility; environmental considerations such as ambient temperature (after all LNG is a cryogenic process), and plant reliability impacting shutdowns and start-ups. The latest process plant design software tools incorporate the option to perform realistic and extensive technical simulations. Chiyoda Corporation, the largest Japanese integrated engineering company and the world’s leading LNG contractor with AUSTRALIANMINING

major involvement in the Inpex Ichthys project off Darwin, uses these tools to verify operability and controllability of new LNG plants. Chiyoda examines possible transient scenarios such as operation procedures for start-up and shutdown including compressors. This allows Chiyoda to design more reliable plants.

Down with downtime

The extremely ‘tight’ LNG industry demands high plant reliability and minimal downtime. This requirement is even more critical in CSG-to-LNG plants due to the upstream implications of a gas train malfunction. Typically an LNG train is supplied by hundreds of CSG wells. Less groundwater needs to be pumped out and treated the longer a well is in operation. Consequently, if the gas demand on wells is reduced due to a train shut, then the groundwater builds up and has to be pumped out in greater volume at a later stage, costing more. Alternatively the wells can be allowed to supply gas as normal but the gas is then flared to the atmosphere: both costly and environmentally harmful. The train is also not producing and earning revenue. A prerequisite for success in this market is robust detailed overall design, coupled with intensive design and simulation testing of each phase of the process, each sub-process, and even individual critical pieces of equipment. Implementing a software engineering tool incorporating the ability to drill down to component level can ensure sufficient detailed simulation and testing, delivering a robust, reliable LNG facility. Within Fives for example, the Cryogenic|Energy business group is a major manufacturer of brazed aluminium heat exchangers (BAHX), using exchanger design and rating simulation software products to understand the exchanger’s impact on the entire process rather than as a sole unit. Specifically, Fives wanted to monitor multiple BAHX in series, and the real pressure levels at BAHX outlets along with thermo-hydraulic coupling to optimise the final design of the cold box. This strategy allowed Fives to optimise the equipment design in the context of the process, but also to optimise CAPEX and OPEX simultaneously over the life of the equipment.

Big data, big gas

One of the strongest challenges in oil and gas is managing information to implement efficiency strategies. According to Curtin University’s Dr Brian Evans, director of Subsea Engineering Projects, “Our ability to become lean and mean will come down to our ability to master data analytics.” The second report in Lloyd’s Register Energy’s Oil and Gas Technology Radar series maintains that any number of reasons can be cited for companies’ inability to use data more effectively. Simply han-

19

APRIL 2016

dling and safely storing the large volumes of data being collected is a challenge. The same is true of dealing with unstructured data e.g. data originating, for example, from images or maps, or text embedded in email. According to Duco de Haan, commercial development director at Lloyd’s Register Energy, “Two factors stand out as hindrances to upstream companies’ better use of data. Silos (in companies) are the biggest problem. The lack of data integration across different parts of the business is rated the toughest challenge oil and gas firms face in improving their use of data. It was not uncommon, over the years, for different business units of large, integrated operators or contractors – or even different departments within the same units – to adopt slightly different formats in entering the data they collected. … Databases can of course be cleaned and formats standardised, but it can be a long and expensive process.” Tim Walsh, COO, Assurance Operations, Lloyd’s Register Energy claims, “The biggest challenge for asset management is working out basic information about the configuration of the plant and what condition it’s in.” “Much of this could be expedited through better use of data – understanding what data is available, what form it’s in and having systems that are joined up. System integration is a big issue. There can be four or five systems that look at the same thing.” The situation is exacerbated when operators and engineers, looking for increased efficiencies, start with plant optimisation which is typically ‘tested’ using extensive spread sheeting, and playing the ‘what-if’ game. The results of this scenario planning are not available to all stakeholders and seldom tested in conjunction with the overall control system. Until recently there has been no readily available plant optimisation software including a data historian and the ability to seamlessly interface into multiple formats of data. Now it is possible to run ‘what-if’ modelling as before, but integrated into the optimisation software so that the iterations are evaluated and stored for future reference.

Opportunities in gas

Within five to six years there will be a shortfall in LNG supply, it is critical for new projects to be ‘on the table’, if not already in initial building phase. The current low oil/LNG prices will not continue for much longer, especially when demand outstrips supply, and then returns on investment will be meaningful. But it is essential that owners of existing and planned LNG facilities employ the latest engineering software tools to ensure reliable and ‘proven by simulation’ design, efficient processes, and optimised process control. In this way risks can be minimised and ROI maximised. AM


BAUMA

WHAT’S NEW AT BAUMA 2016 ANYONE WHO’S ANYONE IN AUSTRALIAN MINING WILL BE TAKING A LONG HAUL FLIGHT TO GERMANY THIS MONTH TO SEE THE LATEST IN MOBILE PLANT AND MACHINERY AT BAUMA 2016.

T

he bi-annual industry event will be showcasing some of the most exciting new developments for increasing productivity and safety in mines all over the world. This year Liebherr will make some market leading releases, including the unveiling of their R9200 Mining Excavator . Complementing their broad mining range, the R9200 has a 12.5 cubic metre bucket, the largest in class, designed to match mining trucks with a payload up to 140 tonnes. The R 9200 is available in backhoe and face shovel configuration and is fitted with the Liebherr advanced bucket and GET solution. With a standard bucket volume of 12.5m3, the R 9200 bucket solution delivers superior digging performance and high fill factors, even in the most extreme mining conditions. This new excavator is powered by the Cummins QSK38 diesel engine that complies with USA/EPA Tier 2 or 4i exhaust emission limits and has a rated output of 810 kW (1,086 hp). The cutting-edge cab of the R 9200 provides the operator with a panoramic view of their operation, which leads to efficient truck loading and safe machine positioning. The R 9200 integrates an advanced electronic piloting control system which is both intuitive and versatile.

Crushers

Atlas Copco will launch its latest generation of its high output bucket crushers at this year’s event, with the new BC 2500 and BC 3700 bucket crushers, which reportedly provide high resistance to wear and fatigue and have up to 80 per cent more output than previous models. The machines are designed for smaller operations or jobs as an alternative to mobile jaw crushers, and are able to crush up to 99 tonnes per hour with its circular crushing cycle. It features an advanced twin-drive system with two hydraulic motors. The bucket crushers’ sturdy timing belt is designed for long service life and the system provides high levels of torque right from the start. Full loading capacity can be used without risk of blockages and the absence of slippage during start-up ensures constant

power transmission and no extra load on the bearings. The internally mounted drive system allows a narrower shape without compromising loading capacity. Atlas Copco has designed the buckets with an automatic anti-lock mechanism that gives continuous repositioning of the material, ensuring that even larger pieces are guided automatically in the direction of the crushing jaw. If the material gets jammed, the reversing function enables the operator to change the rotation direction, push the material back into the inlet and thus easily remove the blockage. When adjusting the crushing size (granulometry) on the new BC bucket crushers, intuitive functionality eliminates the need for long experience or special craftsmanship, allowing the user to adjust the required jaw outlet correctly without any special tools. All types of inert material, including asphalt, stone and concrete debris, mine and quarry material, can be crushed and re-used on-site using a rig-mounted BC bucket crusher. Atlas Copco will also introduce the latest from their portable energy division, unveiling the 8 Series Compressor. A highly-anticipated feature of the 8 Series compressor will be the latest iteration of the HardHat canopy, which celebrated its 10th anniversary in 2015. First launched in 2005 to replace traditional metal canopies with a lighter and more durable medium-density polyethylene version, the award-winning HardHat set a new international benchmark for protective hoods. The extension and expansion of dewaAUSTRALIANMINING

tering solutions will also feature strongly, with Atlas Copco showcasing exciting additions to its WEDA electrical product range, as well as highlighting products that will now be available as the Varisco line, following the completion of the company’s acquisition in January 2016. Lighting solutions are another important component of the Portable Energy division’s product offering. Atlas Copco will officially launch the HiLight range, which consists of seven models to ensure customers can select the right light for their site. Visitors to the show can expect to see a number of new innovations, such as the latest in LED lighting, as well as understanding how incorporating the latest technology has enhanced energy efficiency, portability and safety.

Dump Trucks

Terex will launch their Generation 10, 38 tonne TA400 articulated dump truck, the largest in their articulated range. This machine has a number of improvements in quality and durability and has been designed as part of a major product renewal program. The durability of truck components as well as upgrading hydraulic hoses, electrical interfaces, transmission mountings and brake pipes have been a major focus. In order to prolong hydraulic component lifecycles, Terex Trucks has also introduced magnetic pressure filters to reduce the risk of contaminants entering the system, improving hydraulic oil cleanliness. Enhancing safety has also been key, with a focus on the force-cooled multidisc brakes.

20

APRIL 2016

Supported by an electronic activated exhaust brake and a six-stage modulating transmission retarder, the TA400 benefits from longer brake component lifecycles. “The transmission now features high performance oil that extends time between service intervals to 6,000 hours, and the powerful drivetrain maintains traction in even the most difficult terrain thanks to longitudinal and limited slip transverse differential locks,” Terex said. It features automatic adaptive shifting and a pre-selected two-speed transfer box for greater productivity in all operational conditions. The new Generation 10 TA400 introduces the Stage IV compliant series of engines for the European market. A Stage IV system features the Selective Catalytic Reduction (SCR), combined with Exhaust Gas Regeneration (EGR) technology and a Variable Geometry Turbo (VGT). Its new design has also removed the need for a Diesel Particulate Filter (DPF), with all trucks fully compliant with the new European Stage IV system. Greater operator comfort has been part of the new trucks’ design, with antivibration mounts for the engine and cabin, as well as cushioned stops on the steering cylinders have been integrated, and the cab features an improved air conditioning and ventilation system. Machine performance information has also been improved, including transmission diagnostics that informs the operator on the status of the machine, including the oil quality, oil level, filter life, and fault codes/service indication. AM The event runs from 11 to 17 April, in Munich, Germany.


ADVERTISEMENT

BUSINESSES THAT INNOVATE ARE 60% MORE LIKELY TO INCREASE THEIR PROFITS. Australian Innovation System Report 2015.

The National Innovation and Science Agenda aims to encourage ideas and create opportunities for Australian businesses by: • providing new tax breaks to support businesses that take risks and innovate • encouraging businesses to work with researchers to create new products, processes and services. Welcome to the Ideas Boom.

innovation.gov.au

#ideasboom

Authorised by the Australian Government, Capital Hill, Canberra. Printed by Manark Printing, 28 Dingley Avenue, Dandenong, Victoria, 3715


PDAC

AUSTRALIA GRABS PDAC SPOTLIGHT RECOGNITION OF WESTERN AUSTRALIA AS THE PLANET’S TOP MINING JURISDICTION, RISING GOLD PRICES AND FALLING ENERGY COSTS PROVIDED A BOOST FOR AUSTRALIA AT THE WORLD’S LARGEST MINING CONFERENCE. PETER DIEKMEYER WRITES.

A

ustralia was the big newsmaker at the Prospectors & Developers Association of Canada’s annual conference which took place in Toronto early March. Just a few days earlier Western Australia was named the world’s most-friendly mining jurisdiction, by the Fraser Institute Survey of Mining Companies, 2015. That nomination, coupled with rising gold prices which have increased the relative attractiveness of numerous Australian ore bodies as well as falling oil prices which have been putting downwards pressures on extraction costs, provided good news amidst a sector beset with challenges. More than 22,000 geologists, investors, politicians, students and other stakeholders attended the annual Toronto event,

which targets the junior mining sector. This year, PDAC also hosted its first International Mines Ministers Summit, which brought together mining ministers from 16 countries. Many bill PDAC as the world’s largest mining conference. For example BNN, a Canadian business-news channel, notes that this year attendance dwarfed the 7000 participants who showed up at the Indaba gathering in Cape Town last year; the 2100 who attended IMARC in Melbourne, Australia; the 2500 at Mines and Money London; and the 8000 at the China Mining Congress.

International participation amidst a tough economy

More than half of the world’s public mining companies are listed on the Toronto Stock Exchange and Toronto Venture AUSTRALIANMINING

Exchange; so PDAC naturally attracted huge international interest. This included participants from more than 100 countries, notably a strong Australian component. Peru and Ecuador, which are trying to attract increased international investment in their domestic mining sectors, also hosted large delegations. The mood at PDAC was surprisingly upbeat despite the weak data underpinning the industry in recent months, which was highlighted in a piece compiled by SNL Metals & Mining. The company’s World Exploration and Trends 2015 report, which was released at the conference, noted that non-ferrous exploration fell by 19 per cent to $9.3 billion in 2015. This followed a 26 per cent decline the previous year. “With depressed metals prices and weakening Chinese demand, combined with strong metal production and high lev-

22

APRIL 2016

els of political turmoil, investors are shunning the industry,” the report noted. Mining stocks, pushed down by the tanking prices of coal, iron ore, copper and other commodities haven’t fared much better. For example earlier this year the Bloomberg World Mining Index hit an 11-year low. According to one estimate, more than $1.4 trillion worth of market capitalisation was wiped out, from to the index’s 2011 peak.

Western Australia comes in tops

The boost from the Fraser Institute report could not have come at a better time for Australia’s mining sector, which has also seen its share of woes, due to slumping demand in emerging markets for the sector’s offerings. Western Australia’s number one ranking is up three spots from its fourth place


PDAC

move up is benefitting marginal producers on the record to media, Western Australia showing the previous year. Saskatchewan, such as Newmarket Gold, a TSX listed fully deserved its positive recommendain Canada, once again came in second company that operates three major propplace in the survey which measures “how tion. The source cited Cameco’s large mineral endowments and public policy erties in Australia. Newmarket, like many investment in a Western Australian urafactors such as taxation and regulatory unAustralian and non-US producers, is also nium deposit, during a time that Uranium mining was banned there, as a vote of benefitting from the fact that the yellow certainty, affect exploration investment.” metal trades in US dollars and that operatconfidence that mining companies can The US state of Nevada dropped to third. work with public sector and environmenAccording to Don Flint, assistant direcing costs are priced in local currencies, many of which, like the Australian dollar, tal groups in the region to advance develtor (resources) at the Western Australian opments in a sustainable manner. have fallen against the greenback. This Department of Mines and Petroleum, the significantly increases operating margins ranking is extremely important due to the at the mines and mills. study’s influence with international invesUS dollar up, energy costs down This dual currency dynamic helps altors who are vulnerable when they decide The recent uptick in gold prices since to develop a project, due to the large most all Australian mining producers. For the start of the year is also providing example one official at Aeris Resources, investments typically required. “The fact some respite for Australian producers, that the Fraser Institute is an independwho hope that the trend spreads to other an Australian copper producer which metals. Gold prices have tended to track recently restructured, noted on backent organisation makes its ranking all the other commodity prices in recent years. more credible,” Flint said. ground that the price which it is getting However its recent spike suggests that the for copper – which is at a six year low in “Because it’s not just us blowing our precious metal may be trading more like a own horn.” USD terms – is nevertheless doing well According highly-placed The company, like almost A M 1 1 1to5one _ 0 0 0 _ M I CanaN 1 currency 2 0 1lately. 5 - 1 1 - 0 9 T 0 9 : 0 5 : 2 in 2 AUD + 1 1terms. : 0 0 That said, experts say that the recent all Australian producers is also benefitting dian source, who is not allowed to speak

from falling oil prices, which for many, comprise a significant portion of the operating costs.

The PDAC bounce?

One example of PDAC’s huge global influence, which sector participants don’t like to talk about too much, relates to the “PDAC bounce,” that gold and many gold company stocks get prior to the convention. In past years, particularly during 2015, investors bid up the prices of both categories of assets prior to the event, in large part due to the buzz surrounding it, only to see them fall after the convention was over. Whether that will happen again this time around is anyone’s guess. However the 22,000 participants who attended the conference and those that work at the organisations they represent, are crossing their fingers hoping that it won’t. AM

MineARC Systems y

Electric Stench Gas

MineARC Stench Gas is an emergency alert system designed to suit noisy locations where alarms cannot be heard. The powerful odour can be quickly dispersed throughout an underground mine to alert workers of impending danger Remote activation

Independent operation of cylinders

Plug & play installation

Steel housing with reflective signage

Real time network monitoring

Pressure gauge with viewing window

Zoned stench gas control

Stainless steel pipework and valving

Dispersion line venting 15m (50ft) from your location

Manual override

For more information:

MA_248_CIrrusMedia_HP_Electric Stench Gas.indd 1

+61 (8) 9333 4966

AUSTRALIANMINING

23

APRIL 2016

www.minearc.com/electricstenchgas

6/11/2015 12:20:59 PM


SOFTWARE & HARDWARE

PANASONIC LAUNCHES THE NEXT GENERATION OF

RUGGED MOBILE DEVICES WITH NEEDS IN THE FIELD ALWAYS SHIFTING TOWARDS MORE MOBILITY AND VERSATILITY, THE TOUGHBOOK 20 WILL SET NEW STANDARDS FOR EXPLORATION AND MINING INFORMATION TECHNOLOGY.

P

anasonic has announced the Australian launch of a new generation of the famous, ruggedised Toughbook, a workhorse of the mobile technology market in the mining industry for two decades. To commemorate the 20th birthday of the Toughbook, the new Toughbook 20 takes a new direction. Not only is it the slimmest computer in class, but Panasonic has followed the trend towards detachable devices. The new Toughbook operates in a number of modes, but most importantly is interchangeable between laptop and tablet with a detachable screen. The goal is to achieve maximum versatility in the field for users, which Panasonic senior product marketing manager Stuart Buxton said will get more out of the Toughbook than ever before. “The drive for mobility in Australian businesses continues to accelerate,” he said. “Users are constantly pushing the boundaries of how and where devices are used. They are increasingly aware of the true cost of consumer-grade devices failing in the field.” Buxton said the replacement cost of a mobile device is not only in the replacement value of the technology, but also the resulting downtime which can lead in inability to fulfil contracts on time, and under the worst conditions can even result in lost business. “The Toughbook 20 provides lower lifetime costs, increased flexibility and

functionality, and extraordinary ruggedisation that has made Panasonic a global leader in field-ready PCs, tablets and handhelds,” Buxton said. The Toughbook 20 is a single rugged device with all the advantages of a fully functioning laptop and tablet, with six usage modes that make it suitable for a range of uses. As well as being used as a traditional laptop, the tablet can be detached and used by itself or flipped 180-degrees to show content in presentation mode. The convertible mode allows users to see the display with the keyboard attached and ready when it is needed. Using the built-in handle, the device can operate in carry mode or hanging on a wall, while vehicle mode provides full functionality and operation of the device when on the move. The Toughbook 20 has a glove-enabled touchscreen and purpose-built vehicle mount and desktop port replicator. The new device is ideal for field workers that need a highly mobile computing solution and the ability to reliably capture large amounts of data. The Toughbook 20 is purpose-built for challenging environments in the mining and oil and gas sector, where dust, water, impact and vibration can quickly spell the end of conventional devices. Engineered to set new standards for ruggedness and reliability, the Toughbook meets MIL-STD-461F for electromagnetic interference and MIL-STD-810G for drop, shock, vibration, explosive atmosphere, temperature, humidity, rain and sand, as well as waterproof and dustproof ingress (IP65). The device features a magnesium alloy case, fanless design, locking port covers, raised bezel, Solid State Drive (SSD) heater and a built-in handle for ease of use, which also serves as a kickstand for desktop stability and enables use while hung. Designed for tough outdoor use from bright sunlight to heavy rain, Toughbook 20 has a 10.1”, 10-finger capacitive multi-touch WUXGA screen (1920 x 1200 pixels). Suitable for workers that need to operate touchscreens with gloves, the device uses the latest IPS Panel technology, providing a new level of viewing quality for tablet users working outside, AUSTRALIANMINING

with 800cd/m² brightness. In addition, there is the optional IP55 Digitiser pen for workers that need the highest levels of touchscreen accuracy, writing or drawing in the toughest of weather conditions. In addition, the new Toughbook is powered by the very latest technology to ensure performance for the length of its life. It includes Intel CoreTM m5-6Y57 vProTM processor technology (4MB cache, 1.1GHz up to 2.8 GHz with Intel Turbo Boost Technology) with a fanless design, Intel HD Graphics 515, 8GB RAM, 256GB SSD and a full Windows 10 Pro operating system with the option to downgrade to Windows 7. One of the most interesting features of the machine is its battery hot swap capabilities, allowing the batteries to be switched by the user whilst in operation. There is a battery powering the tablet and another optional battery that can be inserted into the keyboard base unit to provide double the battery capacity. The batteries can also be hot swapped between the tablet and base unit. To ensure mobile workers are always connected to the business, the Panasonic Toughbook 20 is equipped with a 2MP webcam with stereo microphones and an 8MP rear camera. There is a 4G LTE option for connection to the office and workforce management systems, and the

24

APRIL 2016

THE BUILT-IN HANDLE PROVIDES GREATER USABILITY

option for the latest U-Blox 8 GPS for precise navigation. Available at launch, the Panasonic Toughbook 20 has a number of support peripherals to maximise productivity, whether on the road or in the office. The device’s slim, purpose-built vehicle dock comes with antenna passthrough for the strongest communications signal while in the vehicle, and full port replication to provide users with the full functionality of the device when docked. The tablet is removable when the keyboard base is in the dock. The device can also be locked in storage mode to keep the Toughbook 20 secure and is lockable when in convertible mode to allow for job routing and access to the GPS functionality. The sleek desktop port replicator allows the Toughbook 20 to be used as a high performance desktop device. The four bay battery charger is ideal for large organisations where the ability to charge multiple batteries can reduce work downtime. The Toughbook 20 will retail from $5,399 and is due for release to the Australian market in May 2016. AM


MT235a Australian Mining Full Page Screens Advertisement October 2011.indd 1

26/08/11 12:05 PM


SAFETY

A CRACKDOWN ON COAL DUST

[OPINION]

THE RE-EMERGING OF BLACK LUNG HAS GIVEN US CAUSE TO QUESTION OUR MEDICAL SCRUTINY, BUT IS AUSTRALIA UP TO WORLD’S BEST PRACTICE FOR DUST SUPPRESSION? BEN HAGEMANN WRITES.

T

he resurgence of black lung in Queensland, and the discussion around it, is gaining momentum. On top of the review into the Coal Mine Workers’ Health Scheme, we now have had a senate inquiry into the issue of how health reviews can be improved. And surprisingly, we’re looking to America for guidance on how to manage the black lung situation. A lot of people think of the US as a place where workplace safety standards are below those in Australia, and in many types of workplaces you wouldn’t be far wrong.

Last year at a foundry in Pennsylvania, I watched drill heads and military ordinance manufactured by people covered in soot with little to no PPE. The gaggle of journalists I was among didn’t appear to be very site savvy, nor was the owner of the company who seemed happy to let everyone stand behind an idling forklift at one stage in the tour. But in terms of identifying early onset of black lung, the US is way ahead of us. The CFMEU maintains Australia needs specially trained radiologists, respiratory disease diagnosis experts who would be the equivalent of the International Labour Organi-

sation’s B-reader standard. Up until late last year, we in Australia thought black lung was a 19th century disease: Not our problem. We thought we had standards so high that it was impossible to get black lung… obviously not in Queensland. At present, Queensland’s maximum allowable dust exposure level for a single shift is 3mg per cubic metre of air. The Mining Act references an 8 hour shift, but that maximum allowable level goes for any length of shift, so in a sense that is a single day’s maximum exposure for a coal miner in Queensland. The coal industry in NSW has attracted some unexpected AUSTRALIANMINING

26

APRIL 2016

praise as a result of the negative press in Queensland. In NSW, the allowable coal dust limit in a single shift is 2.5mg per cubic metre of air. Senator Doug Cameron highlighted the collaborative system used in NSW, which sees companies and workers

participating in an overarching co-operative process with the Department of Industry, NSW Coal Services, and the CFMEU. The fact that we have different allowable dust limits between states is a cause for concern. Why should some


SAFETY

workers enjoy better protections than others? Both states mine thermal and met coal, both states have underground and surface mining, and both states have the same companies in operation. It is true that different types of coal can have different effects in terms of the speed at which they can cause Coal Workers’ Pneumoconiosis (CWP), but legislation ought to aim for best practice across the board and not on a case-by-case basis. Speaking at the Senate Inquiry via phone link on last month, US black lung expert Professor Robert Cohen revealed that effective from February 1 this year, the United States has implemented a national standard for 1.5mg of coal dust per cubic metre. Do we really want to be known as a country with a coal mining industry that is sub-par against world’s best practice? Do our coal mining companies really pride themselves on being among the safest in the world, or are they just pulling everyone’s chain? It should also be addressed that there have been some 80,000 cases of CWP identified in the US in the past few decades. Those are some staggering numbers, but don’t forget that’s a nation of 300 million people. But what is really worth considering is that the US has been successfully detecting those cases. We haven’t. The fact that another Western nation has taken new measures to protect their workers, while we are discovering that our system of health review for coal miners has been letting the early signs of CWP slip through the cracks is a pretty damning indictment. While the expert review and administration of coal workers’ medical examinations is clearly due for an overhaul, that is not entirely the crux of the problem. It has been clearly identified that underground coal mines in Queensland have routinely exceeded allowable dust limits. For example, Anglo American’s Grasstree and Grosvenor mines have been named as repeat offenders in terms of exceeding the maximum allowable dust limits, and that is with a limit of 3mg per cubic metre. The CFMEU says both mines have been directed to stop making people work in the returns of active mining panels. But let’s

not single out one company; Vale’s Carborough Downs is also a known offender with sample levels as high as 4.7mg per cubic metre. Talking to Australian Mining, CFMEU health and safety representative Jason Hill said he did not believe most underground coal mines in Queensland were compliant with the dust limits. This means we are allowing the companies to break occupational safety laws. How can this possibly be acceptable? Let’s just spell this out: A mine should be shut down for any systemic breach of safety until the systems in place have been improved or rectified, let alone for repeat offences. Has this kind of behaviour been tolerated by the Mines Inspectorate in Queensland? It’s also worth mentioning that that in the US, they increased the number of dust monitoring tests to be taken at each mine from 30 to 45 times per month. In Queensland this is said to be around 15 times per month. On top of that US legislation stipulates that the tests must be done at 80-100 per cent production levels, not during maintenance and slow periods as is presently allowed in Queensland. Recently former Department of Mines inspector and mine manager Kevin Clough said he was not surprised by new reports of the disease in the industry, and that he had been “expecting it for years”. However, Clough chose to focus on the use of PPE in mines as a contributing factor in the resurgence of black lung, in that he was aware that some workers would avoid wearing dust masks. “You could tell them to wear the mask, and they’d wear them while you were there but then they’d take it off,” Clough said. “Through the years, you’d have a downright argument with the boys: ‘You wear the mask’; ‘I don’t want to wear it’. Ninety per cent of them did [wear dust masks], but you’d always get one or two that would say ‘I’m fine, I’m bulletproof’.” This phenomenon is well known to anyone who works in the trades. There is a crosssection of any large work crew who will eschew the use of PPE because it would constitute some sort of admission of weakness. “Have a spoonful of concrete, mate, it’ll harden you up,” some

will joke, but respiratory disease is no joke, and it doesn’t choose its victims on the basis of their toughness or masculinity. Professor Cohen, in giving evidence to the Senate Inquiry, spoke about dust sensitivity. Dust exposure will not necessarily result in black lung. Some individuals are sensitive to the effects of dust and will develop symptoms, while others do not. But there is no way of knowing who is sensitive until they develop the early signs of CWP. In my time in mining and construction, I’ve seen the way people avoid PPE. I’ve even done it myself, and it can be heavily influenced by peer pressure. This is observable in larger groups. The two dustiest environments I ever worked in were very different in terms of the size of work crews. The first was working in minerals sands around air core rigs. We were warned about the hazards of silicosis, and the drillers always wore their masks if conditions were visibly dusty. This was a very small, remote exploration work crew. The other was a threemonth shutdown to replace the furnace floor at the, well, let’s just say the main nickel smelter near Kalgoorlie, back before the boom. The furnace was so choked with nickel dust you only had to walk near the building before getting the taste of a twenty cent piece in your mouth. Inside the air was thick with the sparkling dust as we tore out and AUSTRALIANMINING

27

APRIL 2016

replaced the steel framework and copper panels, yet still people would work without wearing their dust masks. Leading hands in particular couldn’t issue clear instructions to their crewmates, and supervised with their masks dangling uselessly off their necks. Failing to carry a respirator in a belt pouch at all times was a sackable offense anywhere on the site, yet in the heart of the danger zone a blind eye was turned to any breach of this documented OHS policy. This type of thing is going on in job sites all over the country, and I have no doubt it is happening in coal mines today. It needs to be said that, yes, dust levels need to be maintained at legal levels, and the mines need to be held to account to ensure they meet even Australia’s relaxed standards through engineering controls such as those outlined in the 2010 report from the US National Institute for Occupational Safety and Health (NIOSH), Best Practices for Dust Control in Coal Mining. But by the same token, workers need to protect themselves at all costs. It’s not about whether or not your employer makes you wear a dust mask, and it’s not about whether or not someone can hear you clearly. Respirators may be the last line of defence you have to protect your lung health, but that does not mean you shouldn’t have to use it. There are no excuses; we don’t need a special training session to

THE EFFECTS OF CWP CAN BE AVOIDED OR MITIGATED

make us aware of the dangers of black lung, or when to use a dust mask. Demand a proper respirator and supply of replacement cartridges; throw out those awful P2 paper masks and shave properly to get a good airtight fit. If you’re serious about being a coal miner, you should be serious about protecting your lungs, if only for the sake of your kids. It’s obvious that more needs to be done to ensure the early effects of CWP are detected so that miners can make decisions about their health and their lives in the mining industry. But that is not enough. Queensland needs a full examination of the processes and procedures for dust suppression, leading to better legislation for engineering controls that will ensure dust levels are as close to zero as possible, and enforceable sanctions that will encourage companies to employ world’s best practice. This is not an area where red tape needs cutting, quite the opposite. We need a crackdown. AM


POWER GENERATION

A HYBRID APPROACH

M

ining and renewable energy are often seen as two diametrically opposed industries, however this couldn’t be further from the truth. All renewable energy technology relies on the mining industry for the resources it provides, and now the mining industry is turning to the power generation capabilities of renewable energies. Rio Tinto has led the way for the mining industry to green its image with the successful implementation and operation of a solar diesel hybrid power plant at its Weipa bauxite mine in far north Queensland. First Solar and the Australian Renewable Energy Agency (ARENA) have worked with Rio Tinto to develop Australia’s first commercial sized diesel displacement solar plant. The miner turned to the plant as a solution to an issue many operators face – working in a remote, off the grid region. According to ARENA CEO Ivor Frischknect, “remote industries in Australia currently rely on 1.2 GW of power

from diesel fuel that is prone to price volatility and supply interruptions.” While this isn’t the first time a miner has looked at innovative renewable technologies such as these, with Sandfire Resources implementing plans for the construction of a $40 million, 10.6MW solar array power plant at its DeGrussa Copper mine, Rio Tinto’s is the largest to date. “Renewables are already competitive with fossil fuels in many off-grid applications, offering a strong, secure and reliable alternative to trucked-in diesel,” Frischknecht added. The Weipa Solar Plant will generate approximately 2,800 megawatt hours of electricity per year for the mine and facilities, as well as the township, and help to not only cut its diesel usage by around 600,000 litres annually, but also reduce its carbon emissions by approximately 1600 tonnes per year. Designed by First Solar with their FuelSmart solutions, the plant hybridises photovoltaic (PV) systems with a fossil fuel engine generator to provide optimal fuel savings at no cost to system reliability.

AUSTRALIANMINING

28

APRIL 2016

Speaking to Jack Curtis, regional manager for Asia Pacific at First Solar, he told Australian Mining that first phase has been successful, and has “proved solar and diesel can co-exist”. “The first stage has been completed, with 1.2 MW installed, and the 2nd phase – of 5 MW – is currently being examined. “The second phase will introduce more solar photovoltaic and see a stronger energy contribution,” Curtis said. “Feedback from the first stage has been positive, and everyone is keen to more to the second phase, there’s a lot of positive sentiment.” To date PV has seen an energy penetration rate of 20 per cent, although Curtis states that it has the potential to provide up to 70 per cent at current time, with plans for the next stages to get it to a level where PV can provide 100 per cent of the power. “Rio Tinto has pioneered this solution, and we’re seeing this uptake as a positive catalyst for the industry, which has seen it proven out on site,” Curtis said. “This is watershed moment for the industry. It’s a credit to Rio Tinto, but they are usually a market leader.” AM


A sneak preview of

what’s coming

down the pipeline. Our next Australian-designed, innovative underground prototype is now undergoing onsite trials. We can’t show or tell you much about it yet. But we can say that things are looking good for release to Australian underground mine owners and operators mid 2016. Designed and built to MacLean Engineering’s famous DNA of robustness and quality, this vehicle is squarely aimed at providing safer and quicker utility job outcomes. For a further clue, read the DMP Mines Safety Bulletin 114 at http:/www.dmp.wa.gov.au/Documents/Safety/SRS-Publications-Mining_and_ Explorations-Safety_Bulletin_114.pdf Don’t procure your next integrated tool carrier (ITC) until you’ve had a chance to talk with us first. Or you could miss out on complying with future EWP guidelines.

Contact the team at MacLean Engineering for experienced advice & comprehensive knowledge about underground mining vehicles and equipment.

Tel: Fax: Email: Web:

+ 61 (0) 8 9303 9740 + 61 (0) 8 9303 9739 aussales@macleanengineering.com www.macleanengineering.com

BUILT FOR LIFE UNDERGROUND 14617 A4+


MINERALS PROCESSING

ACPS CELEBRATES 50TH ANNIVERSARY PROCESS ENGINEERS AND SERVICE PROVIDERS FROM AROUND AUSTRALIA HAVE CONVERGED ON WOLLONGONG FOR THE 16TH AUSTRALIAN COAL PREPARATION SOCIETY (ACPS) CONFERENCE, TO DISCUSS THE PAST AND THE FUTURE OF COAL PROCESSING.

C

elebrating its 50th year, the ACPS works to promote the science of coal preparation, and help with educating, training, publishing textbooks, and providing opportunities for people in the coal industry to exchange new ideas about process technology and innovations. ACPS life member Peter McFadden, who first came onto the organising committee in 1999, said this year’s conference saw 370 exhibitors, guests and speakers in attendance. “The conference is very well attended by people from all sections of the coal mining industry, both throughout Australia and from overseas as well,” he said. “This conference sees the first female chairman to organise the conference, Ngaire Baker, and we’re very pleased to have her as part of the society.” ACPS Conference Local Organising Committee chair Ngaire Baker said organising the conference was an “absolute pleasure and honour”. “After 27 years in the mining industry I have found the last nine in coal and particularly coal processing to be extremely rewarding,” she said. “To be a part of the ACPS, particularly in their 50th year,

and working with a team of industry experts has been an experience I will relish for many years.” ACPS Technical Committee chairman Andrew Swanson said the conference, held every two years, was a practical way for society members to present academic papers and stay up to date on the latest in the industry. In terms of the present state of the coal industry, Swanson said the commodity downturn was one of the most significant in decades, which had brought more focused cost cutting in mines which had a flow on effect to the rest of the service industry. “The thing that people are looking for is to be able to do more with less. It’s about taking your existing assets and through small, incremental amounts of capital, drive changes and efficiency and reduced costs,” he said. “The depression of price in the industry has been felt everywhere. If you mine less coal, you have less coal to prepare, but I have to say that by and large the tonnages of coal being exported increase every year, so we’re still washing and producing as much coal, but the problem we’re finding is that all the mining companies [want] low value projects and… to drive the cost out of operations, and they really need

THE CONFERENCE SAW NEARLY 400 EXHIBITORS

an excellent case to spend any money on studies or engineering or upgrades.” Swanson said that while the coal companies had trimmed down the number of staff by five or ten per cent in the past two years, staff numbers in the service organisations had been decimated, which would likely have an adverse effect on the number of coal process engineering experts in the future. “We’re talking about organisations that have only 30 per cent of the staff they had in early 2012, so we’ve taken out almost a whole generation of people out of these businesses, and when the next boom comes, we’ll be back where we were with not enough people, not enough of the right skills, loss of experience,” he said. “[There’s a] lack of demand for new processes, there’s a lack of demand for new plant, lack of demand for people and money to engage in studies… the money is just so tight. “There’s definitely an opportunity [for young engineers], and the organisations have been pretty receptive to having young people listening to their ideas, but the problem is that there would probably be a lot more here four years ago, and a lot of those people, when you AUSTRALIANMINING

30

APRIL 2016

downsize your organisation you will lose people, you do need to retain some of the more experienced people, so there’s probably a disproportionate amount of younger people getting culled, and when they leave they won’t come back.” Swanson said that the conference turnout in 2016 was one of the lowest he had seen in decades, something he hoped would rebound with industry recovery. “The turnout this year is probably our second lowest. Our last lowest turnout was in 2000, for the conference that was held in Port Stephens, which was the last significant downturn,” he said. “That downturn wasn’t as big as this, this is a one in 30, 35 year downturn we’re feeling now, but I guess people have realised that we’re trying to do something to improve [the industry]. But the response for this time has been quite good.” This year the Arthur Le Page Lecture, given in honour of one of the founding members and greatly respected contributors to the ACPS, was presented by industry veteran, friend to Arthur Le Page and retired coal process engineer Jim Donnelly. Donnelly’s paper ‘Reflections on 50 years of Australian coal preparation’, charted some of the

FUTURE PROCESSING TECHNOLOGIES WERE IN FOCUS

most significant technological developments in Queensland and NSW coal processing. Donnelly was followed by Chris Clarkson presenting a paper, co-authored by Carolyn Hillard, on a vision of coal preparation for the next 50 years. Clarkson said the costs of large scale production away from the mine meant train haulage costs become more significant, and that further cuts could be made to operating expenditure by designing “smaller, cost effective, distributed plants with centralised stockpile and loading”. He recommended scaling down process plant modules to the minimum possible size, planning for assembly offsite to be constructed in a “cassette” style system where modules are readily removable for maintenance elsewhere. Clarkson said at present large plants were necessary to allow operators to conduct maintenance safely, however smaller modules could be achieved by removing the space needed for operators to conduct maintenance within the plant. AM


The beginning of the stope clearing operation

An operator inspecting progress

The extent of clearance about half an hour after commencement

Ore recovery is up, stope cleaning time down. This WC3 Water Cannon is delivering extremely positive results in a major West Australian underground gold mine. Byrnecut’s senior foreman Des Whaling says: “We’re recovering more dirt, we’re doing it faster and, importantly, we’re doing it safer”. Previously the mechanical scrapers set-up process required taking a jumbo out of the development cycle to drill the pin holes for the anchor points, losing at least a day of machine and operator time during the set-up of every stope. And two men were needed to carry out the actual cleaning process which involved some tough physical labour exposing them to the risk of injury.

See the Water Cannon action video on our website. Contact the team at MacLean Engineering for experienced advice & comprehensive knowledge about underground mining vehicles and equipment.

Tel: Fax: Email: Web:

+ 61 (0) 8 9303 9740 + 61 (0) 8 9303 9739 aussales@macleanengineering.com www.macleanengineering.com

BUILT FOR LIFE UNDERGROUND 14620 A4+


HIRE & RENTAL

THE CHANGING YELLOWGOODS MARKET THE DOWNTURN MAY PROVIDE A BOON FOR MACHINERY HIRE FIRMS.

T

he market for mobile plant for the mining industry is undergoing a marked depression in value. Equipment is selling for less at auction, contract work is drying up, leaving punters to ask ‘where is the best value, purchase or rental?’ The 2016 Ernst and Young Australian Yellowgoods report paints a bleak picture, one in which the indexed resale value of a standard mining fleet has plunged 46 per cent in the past 12 months. Significant oversupply of yellowgoods in the mining sector is tied to plunging commodity prices, with the bulk of opencut extractive machinery, such as excavators and haul trucks, employed in the iron ore and coal sectors. Sustained low commodity prices combined with the increasing production from the low-cost major miners has put unwanted pressure on higher cost produc-

ers, leading to reduced need for load and haul fleets. There have been many contracts cancelled with mining service contractors, and Ernst and Young estimates there is anywhere between $600 million and $1 billion worth of machinery parked up. One market participant reported there are an estimated 1500 haul trucks idle in Queensland alone. Auction clearance rates for mining yellowgoods are only 60 per cent, compared to the more flexible, recovering construction market which is still in excess of 70 per cent. Between September 2014 and September 2015 the value of low hours/late model equipment dropped 30 per cent, concurrent with a 22 per cent drop in the value of high hours equipment. While on one side of the picture there are some substantial bargains to be had in the second hand market as cheap investAUSTRALIANMINING

ments at a low point in the boom-or-bust cycle, it is also advantageous, perhaps even necessary for survival that miners and services contractors conserve their capital in these treacherous times and turn instead to the rental market. Indeed, the reduced demand for rental and contract fleet services points to a better bargaining position for prospective renters in the sector looking for new contracts. Sally McPherson is the director of marketing for iSeekplant, an online mining and civil equipment supplier database. She says that much of the expected mobile plant market for coal mining has reached a standstill. “We’re definitely quoting for machinery but it’s all seems to have stalled. There’s Adani with Carmichael sitting on tenterhooks, Shenhua Coal in NSW, and Acland Stage 3 here in SW Queensland,” she said. “We’re pricing [for equipment], the

32

APRIL 2016

prices are coming through, but it’s not turning into work at the moment.” iSeekplant presently does around 32 per cent of its business in the resources sector, thanks to increases in the civil construction of oil and gas and offshore projects around the country, although mining equipment is only making up eight per cent. “It’s a better time to hire. What we’ve seen is there’s a swing back to the mining companies hiring gear and coming to us,” McPherson said. “Long term mining hire contracts are as rare as hen’s teeth, but we’re seeing them come through the sites more and more, and the reason is because there are capital expenditure freezes on a lot of these companies.” One of the key advantages to hiring equipment is that it is not a large capital expenditure that can significantly affect a company’s balance sheet. Instead, with


HIRE & RENTAL

maintenance included, the smaller incremental payments are easier to account. In addition, maintenance services are carried out by the rental company, meaning the customer is not liable for the expense of any mistakes in the workshop, or the HR complications of hiring a maintenance team. McPherson said that now more than ever, rental companies are hiring equipment at very affordable rates, with many in the plant hire sector even willing to mobilise for free. One option to consider when hiring is taking machines on a wet hire basis. This simply means the machine comes with an operator, which circumvents issues with hiring new staff. “We’re seeing a big rise in wet hire at the moment throughout construction and mining because EBA agreements and other forms of direct employment can be onerous, and the responsibility falls with the plant hire companies. That gets around some of the administrative workplace issues that can arise,” McPherson said. An interesting consequence of the mining downturn is the new supply of secondhand light vehicles, ex-mining fleet that are no longer required due to large scale redundancies across Australia. “With less people on sites and less movements, there’s less call for light vehicles, so there’s lots of liquidation going to auction.” Drilling and boring equipment is also

in oversupply now, along with the auxiliary equipment like fuel cells, generators and other support machinery. For those who do want to buy mobile plant for their rental fleet, it is very easy to pick up used equipment, and indeed preferable given that the Australian dollar is so low at the moment at the moment, making the purchase price of new equipment from

overseas OEMs much more expensive. On top of that, McPherson says now is a very good time to arrange finance: “What we are seeing now is incredibly low finance rates, very low interest rates, and the good thing is this will all be better for companies in the long run. The plant hire game is all about getting your money back for hours put onto that asset.” AM

MORE COMPANIES ARE LOOKING AT ‘WET HIRE’, CIRCUMVENTING STAFFING ISSUES

Hardox Wearparts. Your local experts in efficient wearparts solutions The world’s largest network of wearparts producers and service providers utilising the worlds number one range of wear resistant steels. Supporting local manufacturing and servicing a wide range of wear-intensive industries, if you want protection from wear...

Hardox Wearparts Hobart Hazell Bros

0428 122 870 | hobart@hardoxwearparts.com

Hardox Wearparts Melbourne Australian Steel

03 9580 2200 | melbourne@hardoxwearparts.com

Hardox Wearparts Perth - Hazelmere BluPoint

Hardox Wearparts Townsville NQHF

Hardox Wearparts Wellington Real Steel

Hardox Wearparts Perth - Forrestfield Transbeam

07 4782 0144 | townsville@hardoxwearparts.com

1300 447 558 | perth@hardoxwearparts.com

0800 732 578 | wellington@hardoxwearparts.com 08 9494 2535 | forrestfield@hardoxwearparts.com

www.hardoxwearparts.com AUSTRALIANMINING

33

APRIL 2016


FINANCE

THE GREAT IRON ORE BATTLE FORREST REIGNITES CALL FOR IRON ORE OVERSUPPLY INVESTIGATION.

F

ortescue Metals’ chairman Andrew Forrest has once again called for a probe into the increasing levels of iron ore oversupply. He launched the call at the Global Iron Ore & Steel Forecast Conference, demanding an investigation into the major miners ‘supply side strategy’, stating their actions have ‘crushed’ Australia’s economy. Last year a war of words erupted between BHP, Rio Tinto, the MCA and FMG over the issue of ongoing iron ore oversupply. Forrest claimed the major miners made a deliberate play to keep prices down by flooding the market and making

statements about the future increases in production. Blaming the majors for the bearish sentiment which befell the iron ore industry, he even went as far as to urge the public to “stand up” and ask if the multi-national miners have a social licence to operate. “I believe it is in the national interest to fully investigate why certain industry players repeatedly made forward looking statements about oversupplying the market and how those statements contributed to the collapse in the price of iron ore,” Forrest said FMG was also behind an online campaign , Our Iron Ore, against ‘multinational companies’. It urged people to sign a petition in orAUSTRALIANMINING

der to ensure a “sustainable future for our important mining industry”. “Iron ore is Australia’s most important single export earner and a dramatically falling price is putting significant pressure on current and future living standards of all Australians,” the site states. “Australia’s export income is being savaged, along with tax and royalty returns to state and federal governments, shareholder returns, superannuation fund values, jobs and activity in the economy.” Forrest himself went on to outline how the actions directly threaten Australia’s economy, stating, “If we don’t get responsibility coming into the future actions and the current statements of the very multinational companies that derive their fortunes

34

APRIL 2016

from our own land then the iron ore price will continue to fall, the budget will be thrown into jeopardy, the deficit will grow and our standard of living will fall.” The war of words prompted an abortive government inquiry led by senator Nick Xenophon, which failed to gain traction, and led Xenophon to accuse the big three miners of conducting a “furious campaign” against it. “They say it is a commercial matter and that it should not be the subject of a public inquiry,” Xenophon said. “But the minerals of this country are owned by the people of Australia and there are huge public policy interests at stake.” BHP defended itself against the ac-


Sensors & Training Equipment for Mining

IECEx Certified Pressure Sensors for High Temperature, Explosive Atmosphere

Geotechnical strain sensors, load cells & pressure sensor

cusations, with CEO Andrew Mackenzie echoing prior statements by Rio Tinto’s Sam Walsh that an inquiry would send the wrong message. Mackenzie also dismissed an inquiry, saying it would be an ‘amazing gift’ for Australia’s competitors. “I am very confident if an inquiry goes ahead that we will see this as a well-functioning market which is in the interests of both customers and suppliers,” he said. The Minerals Council of Australia also launched its own web campaign in order to refute the ‘myths’ made about the industry. The then treasurer Joe Hockey quashed all future for the bill, stating that the government would not support an inquiry, despite the fact then prime minister Tony Abbott had thrown his weight behind an inquiry, stating, “We do need to know the facts ... what we don’t want to see is predator behaviour by any company.” Forrest accused the larger miners of having too much influence on the government. “We literally saw plane loads of lobbyists get flown in by the multinationals into Canberra and they never let up all week,” he said during an interview with Nine’s Karl Stefanovic. “You shouldn’t be allowed to totally manipulate governments, which is what I think has been done here. “You saw the previous government flip, this government flip. The real question is do the multinationals have too much influence in this country and we should be allowed to ask the question.” He has now reignited the fight as iron ore prices begin to falter following a short rally, stating that an inquiry is still warranted. It came after US iron ore miner Cliffs Natural Resources outspoken CEO Lourenco Goncalves highlighted what he believes is the major miners flawed strategy of selling ‘dirty cheap’ iron ore in

LEVELS OF IRON ORE OUTPUT ARE ONLY NOW STARTING TO DECREASE

order to price other players out of the market. “Taking BHP, Rio and Vale, their combined revenue in 2014 was $US67 billion. In 2015, $US43 billion. Combined iron ore EBITDA for the three companies in 2014 was $US37 billion. In 2015, $US20 billion,” he said. “Combined market capitalisation of the three companies in 2014 was $US469 billion. In 2015 $US179 billion. In other words, $US290 billion of market capitalisation was destroyed with the intention of growing market share.” “When you [Australia] have 59 per cent of the market share, what the hell do you need more market share for? What can you do with more than 59 per cent that you can’t do with 59 per cent? And then you grow to 64 per cent and you destroy $US290 billion? And you guys do that and it’s OK?” Goncalves said. “I think that you should be outraged by that. I think that Australians should understand that a finite resource is being decimated and that generations to come will regret that this generation did not do a thing to stop destruction of value in this country.” Rio Tinto has rejected the statements, while BHP has declined to comment on the matter. Brendan Pearson, the Minerals Council of Australia’s chief, did not mince words, telling the SMH, “Mr. Forrest’s proposal for an iron ore inquiry is dead, buried and cremated. The notion of an inquiry never gained traction. His calls for intervention in the operation of iron ore markets are as misguided today as they were in 2015.” AM AUSTRALIANMINING

RFID sensor for monitoring mining truck conditions & smart wireless sensor networks for structure health

Mining Engineering & Safety Training Systems

PH: (03) 9540 5100 E: enquiry-am@bestech.com.au www.bestech.com.au 35

APRIL 2016


FINANCE

IS GOLD

GOING TO DROP BELOW US$1000?

DESPITE STARTING THE YEAR AS THE BEST PERFORMING METAL, MANY ANALYSTS ARE PREDICTING THAT GOLD WILL SOON DROP INTO THREE DIGIT FIGURES. COLE LATIMER WRITES.

A

ustralia’s gold production has reached a 12 year high on the back of soaring gold prices. The metal, which has been 2016’s best performing asset, saw a full year production of 285 tonnes last year, two more tonnes than 2014 and the highest levels since 2003. The metal has risen 15 per cent in value to date, as market expectations of the US Federal Reserve holding off on a rate rise drive more investors to gold, while a weaker Australian dollar supports increased production. Gold reached $1778.65 earlier this year, the highest point since 2011, although it has since slipped in value “If you factor higher prices and tighter cost containment into the overall equation, margins have increased,” Surbiton Associates director Sandra Close said. “Much of the local gold sector is travelling quite well for the moment.” However the future direction of the metal is mixed, with many analysts expecting it to drop below US$1000 this year. Bernard Dahdah, from French investment bank Natixis and the winner of last year’s London Bullion

Market Association’s gold price forecast competition, is predicting the metal to average around US$970 per ounce this year, with a low of US$900. Dahdah predicted that “the biggest influence on the price of gold this year will be the expected path of interest rate hikes”. “Natixis expects further rate hikes by the Fed this year, which should increase the opportunity cost of holding the metal,” he said in the London Metals Bulletin Market Association’s latest precious metals forecast. “Outflows from physically backed ETFs are expected to continue as higheryielding investments and a stronger dollar becomes more attractive to investors. “The upside risk comes from possible delays in rate hike cycle due to a weak US performance or more severe economic issues in China.” BNP Paribas’ Martin Squires also predicted a weak gold price, with an even more bearish US$960 per ounce average forecast, and a US$900 low for the metal. “BNP Paribas believes that gold’s downward trend will remain in place throughout 2016, pressured by the slower global growth, strengthening US dollar and the associated expectation of three further US rate hikes this year,” Squires said. AUSTRALIANMINING

“We are forecasting gold to average US$960 per ounce in 2016,” he said. However he remained positive for the short term, stating there are transient positives for the metal. Goldman Sachs forecast a bearish future for gold. “Higher prices are much harder to sustain in a supply-driven market since supply is primed to return with higher prices,” the Goldman analysts wrote in a recent market report. “But this lesson will likely only be learned through false starts.” Overall, the average of more than 30 analysts forecast a median price of US$1103 per ounce, with expectations of it shifting between a low of US$978 and a high of US$1231 per ounce over the year. This movement is in spite of the industry predicting peak gold for 2016. New research by Thomson Reuters GFMS stated that production of gold globally will begin its decline, falling three per cent this year alone, and capping close to a decade of rising output levels. Peak gold was predicted to occur last year, as falling prices made as many as 10 per cent of all gold operations uneconomical. Gold Fields head, Nick Holland, explained, “We are all talking about how production was going to increase every

36

APRIL 2016

year; I think those days are probably gone.” “You are not going to see massive production increases in the industry,” he said, making the 2015 production figure a potential high water mark for the metal before it begins receding in output. Much of the decline is due to major producers such as China, Australia, Russia, and the US failing to fill the enormous gap left by sharply falling production rates out of South Africa. “2015 will be the peak in world gold production,” Grant Thornton’s Brock Mackenzie told Australian Mining in an interview early last year. “So every year after that there will be less gold produced, which will have a positive effect on the price.” Goldman Sachs research echoed Mackenzie’s prediction, with a dire warning of only 20 years of known mineable reserves of gold left, adding that discoveries of new sources peaked in 1995. Barrick Gold president, Kevin Dushnisky also had a similar forecast combining a peak gold belief with a more positive future for the metal, stating that “falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook.” AM


THIS IS WHAT 50 MILLION TYRES LOOK LIKE. THAT’S HOW MANY ARE DISCARDED IN AUSTRALIA EACH YEAR.*

Volume based on Equivalent Passenger Units (EPUs). An EPU is standard passenger car tyre. Full EPU Ratio Tables available at www.tyrestewardship.org.au

*

TRP TSA0017

If you want your old tyres recycled in the most environmentally sustainable way, only deal with Tyre Stewardship Accredited suppliers. Look for this logo or go to our website to find out who they are. www.tyrestewardship.org.au


FINANCE

MORE MINERS TO GO BANKRUPT IN 2016 WITH COMMODITIES FORECAST TO ONLY WEAKEN THIS YEAR, MORE MAJOR MINERS ARE PREDICTED TO FOLLOW THEIR TRAJECTORY DOWNWARDS. COLE LATIMER WRITES.

A

nalysts and investment groups are touting an acceleration of mine closures this year. Moody’s and BlackRock fund manager Evy Hambro – manager of some of the world’s largest mining funds – have predicted a year of bankruptcies and closures ahead for the resources industry. In Moody’s recent Corporate Default and Recovery Rates, 1920-2015 report it forecasts speculative-grade corporate defaults will increase this year to the highest levels since the Global Financial Crisis. While globally there are a high level of defaults, unlike the GFC the majority of these are resources industry specific, with mining and metals companies seeing the highest default rate last year at 6.5 per cent, while oil and gas operators were closed behind at 6.3 per cent. To date major miners such

as Arch Coal and Alpha Resources in the US have already declared Chapter 11 bankruptcy, following the predictions of Wood Mackenzie analysts who remain extremely bearish on the future of miners. Many miners have already seen credit downgrades as the market’s belief in their ability to pay down debt and generate effective returns diminished in the face of lower commodity prices and soft demand from China. Moody’s predicts the sector to further weaken as the continued downturn wipes billions from revenues, and has already indicated it is looking at downgrades for 175 mining and energy companies globally. “Although credit quality declined throughout 2015, the magnitude of ratings downgrades widened significantly in the fourth quarter,” Moody’s vice president and senior credit officer Sharon Ou said. “These factors, combined

with the sharp increase in defaults and rising investor caution, indicate that the credit cycle is turning.” It expects mining and energy default rates this year to spike to as high as 8 or 9 per cent, with the baseline forecast sitting at

7 per cent, more than double the historical average, with speculative companies slated to be hit the worst. These figure edge close to the 9.4 per cent default rate mining and metals experienced in 2009. “Persistently low commodity

prices, slowing economic expansion and widening highyield spreads will send default rates higher in 2016,” Ou said. BlackRock’s Hambro forecasts were in line with Moody’s report. “Commodity markets remain over-supplied and prices for

COAL MINERS ARE EXPECTED TO BE THE WORST HIT

AUSTRALIANMINING

38

APRIL 2016


FINANCE

certain commodities will need to remain at current levels, or move lower, to see loss making production leave the market. In light of this, dividends will remain under pressure,” Hambro said. “As we enter 2016, the industry will be forced to respond and we would expect to see an acceleration in production cuts which should be supportive for commodity prices,” he said. “The oversupply in bulk commodities (namely, iron ore, thermal coal and metallurgical coal) is set to persist. However, the balance between supply and demand is tighter and likely to tighten more quickly for a number of the base metals (copper and zinc in particular).” BHP has already made strides forward in this regard, announcing a shift in its views on iron production, with BHP CEO Andrew Mackenzie stating that a renewed focus on cash flows means it will no longer rely on higher volumes. “High quality medium-tolonger term projects will only be pursued at a time when they add greater value than all other options, and do not exacerbate the current supply-demand imbalances,” Mackenzie said. But this is unlikely to stem the tide in the short to medium term as Chinese stockpiles remain high. Wood Mackenzie analyst Andy Roberts stated, “Who can blame producers for rushing to close the books on a really bad year and shifting their gazes to tomorrow?” “Across the industry, 2016 promises more pain than gain.

“It’s what producers won’t do that matters most. They won’t sufficiently rationalise production to balance supply and demand. They won’t, because most of them can’t, repair debt-laden balance sheets and that will leave many vulnerable and their bond-holders squeamish. They won’t find it easy to re-capitalise their mines because financers are backing away from coal.” These forecasts are in line with many miners’ predictions for their year ahead.

View from the pits

Anglo American head Mark Cutifani and current Vedanta Resources CEO – and former Rio Tinto chief – Tom Albanese are both pointing to more turmoil for the mining industry in the coming months. “This is exactly where we were in the late 1990s,” Albanese stated. “The survivors were the ones that enjoyed the benefit when China kicked in starting in 2003. Those who can manage their balance sheets the best in this period of time, manage their assets the best, stay opportunistic. We could be OK. “We’re all quite hesitant to say to say the bottom is here and has turned.” Cutifani gave a similar outlook, talking of ‘grim’ markets and more job losses ahead for the industry at a mining industry event earlier this week. “Things may still get worse before they get better,” Cutifani said.

“We can’t rely on a reversal of this price slump any time soon. For many of us in the industry, 2016 is already shaping up to be the most challenging yet.” He went on to state that no miner has been untouched by the downturn. This current situation is compounded by the latest data from the London Stock Exchange, which found LME listed companies cash held fell by 1.1 billion pounds over the last 12 months.

Light at the end of the tunnel

However despite this negative pressure on the mining industry, it is still supporting Australia’s economy. A BIS Shrapnel study released last month stated that sustained growth in mining production and export levels has managed to buoy Australia’s economy, protecting it from a potential recession. According to BIS Shrapnel chief economist Dr. Frank Gel-

KEECH Keech Austr

abrasive co

BUCK

alia’s buck

nditions of

ber, the main reason Australia has yet to spiral into a depressed economy has been strong and sustained growth in resource production and export volumes (around eight per cent per annum in each of its past three years), aided recently by surging education and tourism exports, but this situation can’t continue indefinitely. He pointed to Australia’s position as a low-cost, bulk commodity producer which has lifted output levels and rode out the worst of the downturn, albeit not without repercussions. BIS Shrapnel’s report goes on to state that the low cost producers in the Pilbara are playing a major role in keeping the nation afloat. “Australia is a low-cost, high quality resources exporter, and other countries simply cannot compete with that,” Gelber said. “While prices have fallen dramatically, export volumes are growing strongly as projects come on stream.” This is likely to be later sup-

et protectio

undergroun

ET PRO

n range is

designed to

DEFAULT RATES HAVE RISEN TO THEIR HIGHEST LEVELS

ported by the LNG production coming online however it will not be entirely offset, as we are currently entering only the second year of a predicted four to five year decline “that will constitute an enormous negative shock to GDP growth,” BIS Shrapnel stated. “We are only at the beginning of the decline in mining investment, but we are still looking at strong growth in production and exports,” Gelber said. “The net effect is that the negative impact from falling investment is being offset by continued growth in production. Having been a strong driver of growth during the boom, mining is now not contributing at all. That’s why growth is, and will remain, weak. “There is little risk of recession, but we’re stalled, waiting for the non-mining economy to pick up.” AM

TECTIO

protect all

N R AN GE

types of OEM d and open reliability on pit mining. mine sites buckets from Our Wearp TM around the the ac combine w w t parts ha or ld . Keech mec ith internal ve a long histor hanical side gussets an y of cutters, he d box protec All parts co el shrouds, tors to prov me in a rang pads and bl ide an all ov e ades of er bucket pr configuratio ensures max otection pa ns and size imum perfor ck s ag to e. su it m any applicat ance, with needed, elim all wear pa ion. Our inno inating the rts made so vative design ne ed that individu to re made in Aus place the en al parts can tralia for th tire system be replaced e toughest in one go. as Get in touch work in eart Keech wea r parts are h. now to arra designed an nge a trial d or request a brochure www.kee .

ch.com.au

AUSTRALIANMINING

39

1300 4 KE

APRIL 2016

ECH


CRANES & LIFTING

A NEW TIER IN LIFTING

M

anitowoc has introduced a new Grove all-terrain crane for the global market As with other recent Grove launches, the crane offers unique innovations and class-leading capabilities in the taxi (road travelling) category. The four-axle Grove GMK4100L-1 boasts the best load charts in its class and its compact design makes it easy to access and manoeuvre on the narrowest of job sites. The new 100 t capacity crane replaces the GMK4100L and is part of a new generation of Grove taxi cranes. Grove was the first manufacturer to produce a 100 t capacity crane on four axles when it introduced the GMK4100L. Now, the new GMK4100L-1 has raised the bar even higher with some notable improvements. The GMK4100L-1 not only offers the best load charts in this class in its maximum counterweight configuration, but also in its most common taxi configuration with a weight of less than 12 t per axle (a common axle load limit in many countries). Compared with the GMK4100L, the new GMK4100L-1 delivers 6.9% better load charts overall when in its 26.2t maximum counterweight configuration. In the taxi configuration with a 6.7t counterweight, the GMK4100L-1 boasts an increase of 9.3% improved performance. Even when operated with the maximum roadable 19.9t counterweight for up to 16.5 t per axle, the crane sets a new benchmark in its class. Customers will also benefit from the crane’s fully removable counterweight – which reduces the basic crane’s Gross

Vehicle Weight to the lowest level in the four-axle category for a 100 t rated machine with a 60 m boom. Boosting the crane’s overall reach is an 18 m telescopic swing-away jib which can be extended with an 8 m boom extension for a total jib length of 26 m. The telescopic swing-away jib offers an improved offset of 0 - 45°. Jens Ennen, senior vice president allterrain and truck-mounted cranes at Manitowoc, said the new GMK4100L-1 is the result of improvements and innovations developed at the factory in Wilhelmshaven, Germany, where the crane is built. “We have focused strongly on bringing superior reliability, return on investment, ease of transportation, user friendliness and capacity to this crane,” he said. “With classleading load charts and specifications, the new GMK4100L-1 is a highly mobile crane that is suitable for use on job sites around the world. The GMK4100L exceeded our expectations in both performance and reliability so we are expecting the GMK4100L-1 to continue this tradition.” The GMK4100L-1 is more compact than its predecessor, making it even easier to access narrow job sites. With 14-inch tires, the crane boasts a 2.55 m width versus the 2.75 m of the GMK4100L. Overall it is also 0.5 m shorter, making it more manoeuvrable on congested job sites. The GMK4100L-1 is powered by a single engine, this reduces the weight of the crane allowing it to carry more counterweight which delivers superior lifting ability. The Tier IV Final/EUROMOT 4 Mercedes-Benz OM470LA is a six cylinder diesel engine with a 320 kW rating at 1,700 rpm and a maximum torque of 2,100 Nm at 1,300 rpm. The crane is also available with an equivalent Tier 3 engine. Better profitability for users is available through the inclusion of the Fuel Saver function on

AUSTRALIANMINING

the Tier IV Final/EUROMOT 4 engine. Life is also made easier for the operator with Manitowoc’s new Crane Control System (CCS) and the new Boom Configurator Mode. The standardized CCS is a user-friendly interface that Manitowoc is featuring on all new crane models. The CCS components and operating software have been specifically designed, developed and tested by Manitowoc engineering and innovation teams worldwide to ensure the highest reliability standards. The highly intuitive Boom Configurator Mode makes it quick and easy to select the optimum boom position for a specific lift. The operator inputs the

40

APRIL 2016

THE CRANE HAS THE LOWEST LEVEL IN THE FOUR-AXLE CATEGORY FOR A 100 T RATED MACHINE WITH A 60 M BOOM

lift parameters such as radius, load or boom length to be moved and the system calculates the best boom configuration. Once the operator selects the preferred option, the boom automatically extends to the required length. The look of the crane has also been improved with a facelift that includes a new ergonomic carrier cab. As one would expect, trademark features such as the TWIN-LOCK boom pinning system, MEGAFORM boom shaping and MEGATRAK independent active suspension, are all included in the new GMK4100L-1. AM


WOMEN IN INDUSTRY AWARDS

THE WOMEN IN INDUSTRY AWARDS THE WOMEN IN INDUSTRY AWARDS HAVE LAUNCHED FOR ANOTHER YEAR, FOCUSING ON WOMEN EXCELLING ACROSS A NUMBER OF FIELDS

W

omen are consistently achieving greatness and excelling in their chosen fields within the mining, engineering, manufacturing and process control industries and we think their talent should be acknowledged. The 2015 Women in Industry Awards recognises and rewards the achievements of women working in the industrial sectors, and aims to raise the profile of women within industry, as well as promote and encourage excellence. Australian Mining has teamed up with Manufacturers’ Monthly and PACE to acknowledge women who have achieved success through their invaluable leadership, innovation and commitment to their sector. The program aims to recognise women who are leading change in their chosen field and breaking down the barriers in what can often be maledominated industries. The awards seek to single out and reward women who have created innovations, driven productivity, spearheaded change, and provided social and economic benefits through their fields. The only awards program of its kind to encompass mining, manufacturing and engineering, it also encourages the industrial world to raise the profile of women working in the differing sectors by embracing diversity and flagging clear paths for the next generation to follow. And with so many thought-leaders together in one room on the night of the awards, it provides a forum for women to meet and exchange information, ideas and solutions to problems and offers individuals an opportunity

to expand personal and business networks, maintain awareness of industry developments and make a contribution to other women in the industrial sectors. Editor of Cirrus Media’s industrial publication Australian Mining, Cole Latimer, said the program was important in recognising the contributions being made to the changing face of industry. “Though female participation has risen across all industrial sectors in Australia, companies are still focusing on more innovative attraction and retention strategies to foster this growing talent and support young women working in the sector. “Women already working in the sector make up a big part of these support programs. “They are paving the way for others and achieving great success, and we thinks this needs to be recognised in its own right.” Any women working in the industrial sector can enter the awards, with the event culminating with a cocktail event to be held next year. So help us recognise the women making a difference today!

CATEGORIES FOR NOMINATION • BDM of the Year • Employer of the Year • Excellence in Engineering • Excellence in Manufacturing • Excellence in Mining • Industry Advocate • Marketing/Communications • Mentor Award • Rising Star Award • Social Leader

LAST YEAR’S AWARDS SAW MORE THAN 150 ATTENDEES

Platinum Sponsor After the success of the 2014 inaugural Women in Industry Awards, Pacific Merchandising has upped its commitment to the event. The company is the Platinum Sponsor for 2016. Recognising excellence amongst women in male dominated industries is a great way to provide inspiration and leadership for change. Pacific Merchandising looks forward to wonderful entries from some of the innovative women out there in the field. Pacific Merchandising is an experienced industry specialist supplier of promotional merchandising to Mining, Oil & Gas, Construction and Transport and Australian Trade Unions. A one-stop shop with expert help from sourcing to art design, decoration to manufacture, and gift packaging to freighting, the company specialises in leading global brands and wholly Australian craftsman designed and manufactured goods, such as custom belt buckles (and keyrings). Pacific Merchandising 1300 88 77 95 www.PacificMerchandising.com.au

Excellence in Engineering ABB is one of the world’s leading power and automation engineering companies. It provides solutions for secure, energy-efficient generation, transmission and distribution of electricity, and for increasing productivity in industrial, commercial and utility operations. Ultimately, the company helps customers meet their challenges with minimum environmental impact and with safety and quality as the highest priority. ABB’s portfolio ranges from light switches to robots for painting cars or packing food, and from huge electrical transformers to control systems that manage entire power networks, mining operations and factories. Its products and solutions serve a number of industries including mining, oil and gas, manufacturing, paper, transport, marine, consumer, automotive and building industries. Employing 145,000 people across 100 countries, including nearly 2000 people in Australia, ABB understands what it means to provide a workplace that is career enriching and culturally safe. The company encourages individualism, values diversity and understands that culture forms part of everything it does. ABB in Australia is proud to support the Women in Industry awards and to recognise and acknowledge the value of a diverse workforce. The company looks forward to playing its part at the event and wishes the best of luck to all participants. ABB Australia 1800 222 435 new.abb.com/au

Excellence in Mining Mining Machinery Developments Australia ( MMD Australia) is a designer and manufacturer of material processing equipment used in varied types of surface and underground mining operations worldwide. In particular, MMD extended the technology of mineral degradation with the original development of low profile high capacity compact sizing machines in 1978. MMD Australia is an equal opportunity employer which encourages women to join, not only the mining industry, but the varied industry sectors in Australia and abroad. Today the company celebrates the excellence women bring to our environment and encourage all similar organisations to join it. MMD Australia 07 3193 2800 www.mmdsizers.com

THE AWARDS RUN ACROSS 10 CATEGORIES

AUSTRALIANMINING

66

NOVEMBER/DECEMBER 2015


AUTOMATION & REMOTE CONTROL

AUTOMATION WON’T DESTROY JOBS, BUT IT WILL CHANGE THEM AS AUTOMATION BECOMES MORE PREVELANT STEFAN HAJKOWICZ EXAMINES WHAT IT MEANS FOR WORKERS.

T

he last few years have seen numerous studies pointing to a bleak future with technologyinduced unemployment on the rise. For example, a pivotal 2013 study by researchers at the University of Oxford found that of 702 unique job types in the United States economy, around 47% were at high risk of computerisation. This was backed up by similar findings in Australia suggesting 44% of occupations – representing more than five million jobs – were at risk over the coming 10 to 15 years. Is the situation really so dire? Are we heading towards mass unemployment as

computers and robots do all the work? The short answer is no. The economy can be expected to create new jobs at a commensurate rate at which it extinguishes existing jobs. There are reasons to believe that job creation will outpace job destruction.

History rhymes

However, the full answer is more nuanced. Australia’s current and future workforce is certainly in for challenging times ahead. We are entering into an era of more rapid than usual technologyfuelled disruption of labour markets. The exponential growth in device connectivity, platform economies, eAUSTRALIANMINING

commerce, social media use, computing power, data volumes and overall internet penetration will change the nature of work. Some are suggesting that platform economics and the new gig economy are set to challenge the longstanding theory of the firm by Nobel Prize laureate Ronald Coase and fundamentally restructure the way labour is organised. Such sudden shocks have happened in the past. The industrial revolution of 1750-1850 saw the invention and widespread adoption of the steam engine, spinning wheels, cement, chemicals and many other technologies. These discoveries improved the productivity of industry. This eventually led to higher wages,

42

APRIL 2016

higher employment rates and improved living standards, but it took half a century for this to happen. A study by Charles Feinstein, economic historian at the University of Oxford, finds that average real weekly earnings for workers in the United Kingdom increased at the rate of 0.4% per annum over 75 years (1782 to 1857). It took time for the benefits of automation to flow to workers, hence the reaction of Luddites like these to modern factories. Other quality-of-life indicators reveal similar patterns of sluggish growth. From 1800 to 1860, the life expectancy (at birth) for the population in provincial cities (over 100,000 inhabitants) in England


AUTOMATION & REMOTE CONTROL

But is the industrial revolution a good guide for today’s information revolution? Are we in for a half-century of hardship? Perhaps the words often attributed (mistakenly, it seems) to Mark Twain will help us: “History doesn’t repeat itself, but it does rhyme.”

Transition time

We’re likely to see similarities and parallels to what happened in the industrial revolution but today’s world is a different place. We also know more about how to adapt. It’s becoming increasingly clear the key to surviving digital technology disruption is finding ways to combine your skills with the power of advanced robots and computers. This is what Andrew McAfee and Erik Brynjolfsson call learning to race with the machine not against the machine in their book The Second Machine Age. Spreadsheets didn’t kill off accounting jobs. On the contrary, smart accountants learned how to use spreadsheets

to become more productive and more employable. If we look at some recent trends in Australian employment, we see evidence of this occurring. Consider two job types: field photographers and laboratory-based photography printers. As shown below, the lab staff have dwindled in number to almost none. This trend is almost perfectly mirrored by growth in the number of field photographers. Jobs in photography have not suffered due to digital disruption. Australian Bureau of Statistics, Catalogue Number 6291.0.55.003 There are similar patterns for transactional finance workers versus finance advisers, and accountants versus data entry operators. Basically the routine, repetitive and rules-based tasks are susceptible to automation while tasks involving creativity, complexity, judgement and social interaction are beyond the scope of robots. So we’re not entering into an era of job destruction but rather one of rapid transi-

and Wales remained roughly constant at 41 years and living standards declined for many of the new urban industrial workforce. It wasn’t until after 1860 that life expectancy began to rise, reaching 47 years by 1900, along with improvements in living standards. That’s quite a sobering thought. For the first half or two thirds of the 100-year industrial revolution, the bulk of workers experienced little benefit and many saw their working conditions deteriorate. The often-misunderstood Luddites – who smashed spinning looms – may not have been angry at the mechanical spinning looms; they may have just been angry and the looms happened to be nearby. AUSTRALIANMINING

43

APRIL 2016

MORE ROLES IN MAINTENANCE WILL EMERGE

tion. We need a more agile, flexible and nimble workforce able to cross professional and industry boundaries quickly and smoothly. Unfortunately, the people who lose jobs are often not the same as the people who get jobs. And transitions take time. There are some serious social equity considerations in this story and some big challenges about managing the distributional impacts. We very much want an Australia where the benefits of digital transformation are experienced right across our diverse geographies, skill sets and communities. The challenge for government, industry and society is finding ways to make sure that happens. Stefan Hajkowicz, is a senior principal scientist for Strategy and Foresight, at Data61.


AUTOMATION

THE NEXT FOUR TRENDS FOR THE INDUSTRIAL INTERNET

AUSTRALIANMINING

44

APRIL 2016


AUTOMATION

AS THE MINE BECOMES MORE ‘INTELLIGENT’, AUSTRALIAN MINING EXAMINES THE UPCOMING AUTOMATION TRENDS. COLE LATIMER WRITES.

I

s Mining is entering a new financial dark age? All of the world’s largest miners have declared massive losses and cut costs, many have had to shutter operations or sell underperforming assets, and others have cut hundreds of workers. BHP, Rio Tinto, Anglo American, Vale, and Glencore have all suffered, and many pundits in the market are forecasting the industry to continue to be pressured until late this year. Data from Bloomberg Intelligence showed capex by the top 10 miners fell dramatically year on year, from US$82.5 billion in 2014 down to US$65.5 billion the following year, with forecasts that it will decline by 25 per cent this year to US$49.23 billion, and another 12 per cent next year to US$44.1 billion. So what can miners do to keep their operations afloat and in shape, preparing themselves for the eventual revival of mining? Innovative, smarter technology, automated processes, and an eye to increase efficiencies are what miners are turning to in these turbulent times to weather the storm. This new technology is helping shift focus from the old, siloed way of doing business and disconnected pit to port chains into one where the entire business is working in concert; asset performance management is key. As Schneider Electric’s head of mining and metals, Diego Areces, has previously told Australian Mining, “it used to be about being the biggest, pushing out the most tonnes”, but the position has evolved along with technology. “The focus is no longer on being the biggest; it’s on being the best, the most efficient.” According to the McKinsey report How Digital Innovation Can Improve Mining Productivity, and its author Ryan Geragthy, a number of digital technologies that have been developed over the last few years are now available and affordable enough to operate across the mining industry. “The industry has shifted its focus to improving productivity by “sweating” existing assets, but this strategy will only go so far. Despite the industry’s booms and busts, the nature of mining has stayed the same for decades,” Geragthy said. AUSTRALIANMINING

45

APRIL 2016

Mining is undergoing a productivity revolution, and using innovation to address cost issues. According to new BMI Research, “miners will increasingly focus capital expenditure on innovation through the use of technology and automation to improve efficiency and increase output at existing mining operations.” “Firms’ competitiveness will increase as technology is utilised to improve mining operational management and processes,” it said. “This shift will follow miners’ strategy of retrenchment and divestment of high costs assets.” So what are the areas of focus?

THE FOUR KEY AREAS Man & Machine

BMI Research, in its paper IoT (Internet of Things): The Future of Mining, has outlined the four key innovation areas. It labelled machine interfaces, IIoT (Industrial Internet of Everything) platforms and processors, communication and controllers, and equipment utilisation. Regarding human and external interfaces, it stated that fatigue and fatigue management programs and technology can aid in lifting efficiency. “Technology can be utilised to improve both mining operational management and safety and environmental governance,” BMI said. “For example, according to a study by Caterpillar, mining companies face significant losses in operational efficiency through employees being fatigued and distracted.” According to McKinsey, one example of this technology is “smart glasses or goggles that feed instructions to workers carrying out repairs”. “Another is work clothing that incorporates sensors transmitting data to managers about hazardous conditions and the physical condition of the workers themselves, improving safety outcomes.” BHP has installed systems like these on its trucks in the Pilbara. According to the company 110 trucks have implemented the technology, which uses eye tracking and facial recognition technology to measure truck drivers’ fatigue. BMI linked employee management, scheduling, and tracking systems to lowering issues related


AUTOMATION

to battling productivity loss through absenteeism and a deeper understanding of workers operate, implementing more efficient standards.

Big Data

Internet of Everything (IIoT) platforms and processors, essentially Big Data, is being integrated at every level. “Mining firms’ operational efficiency will increase through the use of data analytics and processing. Nearly every aspect of the mining industry, from minute processes through to massive haul truck payloads and warehousing and maintenance activities are now measured, tracked, and stored, and now these machines and data sets can now compare and create a predictive picture for future production in a way the industry never could before. “We see a significant number of mines that have data locked away in individual systems but now want to federate that data together, instigate new processes, involving their people in new ways to achieve better outcomes. Mining generates big data because the number of sensors are growing rapidly and systems involved are becoming more intelligent, so the challenge ahead is to federate that data,” Cisco Systems engineer Michael Boland said. Rio Tinto has embraced this innovation path, and opened its ‘Big Data’, Analytics Excellence Centre early last year. According to Rio the new centre “will assess massive volumes of data captured by the array of sensors attached to Rio Tinto’s fixed and mobile equipment and enable experts to predict and prevent engine breakdowns and other downtime events, significantly boosting productivity and safety”. “Using predictive mathematics, machine learning and advanced modelling, data scientists in the Analytics Excellence Centre in Pune, India will be working to identify a range of problems before they occur. “This analysis will reduce maintenance costs and production losses from unplanned breakdowns,” the miner said. “The Analytics Excellence Centre will allow us to extract maximum value from the data we are capturing around the performance of our equipment, making our operations more predictable, efficient and safer,” Rio Tinto group executive technology and innovation Greg Lilleyman said at the time. “The Centre will help us predict the future through the use of advanced data analytic techniques to pinpoint with incredible accuracy the operating performance of our equipment. Our aim is to run more efficient, smarter and safer mining operations and provide greater shareholder returns.”

Communications & Control

BMI states that innovation through improving communication and controls will increase the availability for process control, asset monitoring, and overall safety and security for workers in difficult and harsh operating environments. There will be a growing focus on the capabilities for connectivity, real-time data delivery, collaboration and machineto-machine (M2M) communications, and the role they will play as critical technological pillars for the industry. These solutions bridge the gap between remote sites, improving management efficiency and reducing the time it takes to make important business decisions, according to Kevin Griffen, Orange Business Services country manager – Australasia. “Mining site communications is a varied mesh of different technologies including GSM, MPLS, VSAT, undersea and surface fibre optic cables. It’s critical to create a reliable and real-time environment for collaboration in today’s increasingly digital mining operations. “In order to get the most benefit from digitisation, mining infrastructure must have hybrid networking capability to provide cost effective access to the cloud; support advanced collaboration services such as video conferencing, unified communications and remote monitoring; and deploy M2M communications for devices within mines to communicate. “A robust, high availability communications network makes operations more cost-effective because mining companies can stay up-to-speed with changes in supply and demand,” he said. AUSTRALIANMINING

BMI added this intercommunication capability will improve blasting and drilling processes and safety, while also boost signals, helping to link communications between site, surface, and underground mining equipment, aiding remote control operations and lifting safety levels by removing the operator from the vehicle itself.

46

APRIL 2016

Machinery utilisation

Smarter use of equipment will lead to streamlining and efficiencies. BMI Research’s latest paper states “apparatus innovation will improve operational efficiency and lower production costs by increasing fleet utilisation”. According to professor of mining engineering at the University of British Co-


AUTOMATION

lumbia, John Meech, autonomous vehicle operations can help increase productivity by between 15 to 20 per cent, and truck uptimes by up to a fifth, with Rio Tinto automated fleets recording a 12 per cent production increase compared to manned vehicles. “At our Hope Downs 4 site our automated trucks have load utilisation rates 14 per cent higher than manned trucks and their

operating costs are 13 per cent better,” Rio Tinto’s Greg Lilleyman said. “And what of our maintenance of our fleet of trucks? Well using asset analytics and the power of Big Data we can better predict and extend component life, improve maintenance schedules and, most importantly, reduce production down time.” BMI explained that by more efficient

AUSTRALIANMINING

utilisation, battling absenteeism, and hot seating during shift changes productivity was lifted.

Pushing mining forwards

A combination of these trends, better regulation and safety guidelines in operating with and around automated processes and vehicles, and a focus on efficiency is changing the face of mining

47

APRIL 2016

in what is an economically inhospitable environment. By driving geological modelling, daily operations scheduling, increased mechanisation, managing hazardous conditions and predictive maintenance, mining companies could make better decisions that would help improve their understanding of the resource base and optimise materials and equipment. The Industrial Internet of Things is taking the world by storm and opening new and exciting possibilities to businesses, government and industries. The mining sector also has much to gain from the benefits that IIoT can provide, particularly in light of the current challenges. Through IIoT, mining operations can save energy, downtime and costs associated with production and transportation of resources. Remote operations remove people from potentially hazardous situations. The IIoT provides the platform for the integration and optimisation of the entire supply chain. Boland explained: “On a national scale, for Australia, the benefits that the IIoT can deliver are most important because as a country we are not going to win on efficiency gains based on cheaper labour to drive down costs.” “We are going to use our expertise and knowledge of mining and automation systems to continually improve the most efficient and cost effective mining capability in the world.” AM


PRODUCT SHOWCASE

EXTENDED RANGE SCREW VACUUM PUMPS The GHS 350-900 VSD+ vacuum pumps introduced by Atlas Copco in April 2015 are now available in an extended 1300-1900 m3/h range designed to boost production. An all-in-one vacuum pump with efficient variable speed drive (VSD) technology, easy to install plug-and-play design and display and connectivity features providing controllability, the Atlas Copco GHS VSD+ Series has now added the GHS 13001900 VSD+ version, offering a range of 1300–1900 m3/h with an ultimate pressure of 0.35 mbar(a) as well as VSD providing the ability to keep up with fluctuating production demands for vacuum. Key features and benefits of the GHS 1300-1900 VSD+ rotary screw vacuum pumps include plug-andplay design with a footprint of less than 2.3m3, enabling easy installation without taking up valuable floor space at the production facility; average energy savings of up to 50 per cent compared to alternative technologies; market-leading low noise operation; SMARTLINK connectivity option for maximum uptime; and clear and detailed colour display putting control in the user’s hands. The new extended vacuum pumps range also comes with Atlas Copco’s Elektronikon for state-of-the-art monitoring, enabling full control for greater energy savings. A remote monitoring option allows easy integration of Elektronikon with plant management systems.

The GHS 1300-1900 VSD+ rotary screw vacuum pumps are also available in optional water cooled versions featuring an integrated energy recovery system to potentially recover up to 100 per cent of the used energy as hot water (90°C), which can be used in the production process to save energy and achieve additional savings. The new vacuum pumps also contribute to a cleaner working environment for employee wellbeing, with their market-leading oil retention capacity ensuring the quality of the exhausted air is optimal. Oil spills are also avoided on the factory floor, which commonly occur with conventional oil-lubricated pumps. The plug-and-play design of the GHS VSD+ Series assures simple and fast installation that saves time and space. The GHS 1300-1900 VSD+ variable speed drive vacuum pump is available in a turbo version to meet any requirement for fast evacuation times, enabling faster cycle times and more production. Recommended for meat, cheese and chicken packaging, as well as cooling applications, the turbo version for fast cycling machines is available for most sizes of the GHS VSD+ range and comes with upgraded motors and control system. For wet applications such as plastics, clay moulding and drying pipelines, customers can choose the GHS VSD+ Humid version, which is suitable for high

HAS A PLUG-AND-PLAY DESIGN WITH A FOOTPRINT OF LESS THAN 2.3M³

water content duties (up to 100 per cent). Atlas Copco’s GHS 1300-1900 VSD+ variable speed drive vacuum pumps are suitable for centralised vacuum systems, glass bottle manufacturing and canning among many more applications. A self-assessment can be performed with the Utility Vacuum App available for free in the App Store and Google Play Store. • Atlas Copco www.atlascopco.com

INDUSTRIAL IMPACT WRENCHES Chicago Pneumatic has added two new straight impact wrenches with D-handle to complete its industrial maintenance range. Previously available only in a pistol version, the new robust ¾” CP6763-D18D and 1” CP6773D18D wrenches now come in a straight version with a D-handle to offer more flexibility and choice to the user. All four impact wrenches in the range deliver class-leading value for money with the ¾” straight impact wrench being one of only a few products on the market with a D-handle. Chicago Pneumatic’s rugged pneumatic tools offer exceptional performance and excellent ergonomics for optimum safety and user comfort to maintenance, repair and operations (MRO) users in metal fabrication, oil and gas, heavy machinery, petrochemical, mining and minerals processing, and other heavy industries. Key features of the CP67X3-D18D industrial impact wrenches include outstanding power-to-weight ratio, providing maximum torque of 1300 ft.lbs (1760 Nm) for only 14.5 lbs/6.6 kg (CP6763) and 14.7 lbs/6.7 kg (CP6773); short and compact body at just 11.4” (290 mm) in length, enabling users to work with more precision and efficiency in spaceconstrained areas; steel motor and met-

CHANGEOVER SWITCHES

COMES IN A D-HANDLE VARIETY

al power setting and housing offering high strength and durability; and steel clutch housing and aluminium motor housing providing rugged reliability in harsh applications. Chicago Pneumatic’s impact wrenches incorporate several user-friendly features such as an ergonomic grip; power setting accessible from both sides; a comfortable side handle making the tool easy to use and carry around; and a hole and a ring retaining system for improved safety and flexibility. Chicago Pneumatic Tools product manAUSTRALIANMINING

ager Harald Odenman explains that the new CP67X3-D18D offers extreme power, high quality and great ergonomics, making it an outstanding bolting tool for demanding MRO applications. He adds that the new user-friendly impact wrench series gives operators the confidence they can work efficiently and with better safety. The CP67X3-D18D impact wrenches are now available from Chicago Pneumatic Tools authorised distributors. • Chicago Pneumatic www.cp.com/en/

48

APRIL 2016

Kraus & Naimer offers a range of open and enclosed changeover and source selection switches designed to suit most applications including enclosed Mains – Off – Gen switches with appliance inlet. Displaying excellent performance characteristics, the switches exceed the requirements of IEC 60947-3 with positive contact movement during making and breaking functions. The switches have superior AC-3 and AC-23 making and breaking capabilities and higher dimensioned air and creepage distances for 690 V or 1000 V providing additional safety advantages. The flexibility and versatility of Kraus & Naimer’s proven line of changeover switches can be enhanced with accessories such as gold or silver auxiliary contacts, late break early make neutral contact, base or panel mounting, door clutches, extension shafts, interlocks, pad lockable devices and an extensive range of stainless steel, metal or plastic enclosures. • Kraus & Naimer www.krausnaimer.com.au


PRODUCT SHOWCASE

ZERO LEAKAGE KNIFE GATE VALVE

SOLENOID VALVES The Cat Reman product line now includes double solenoid valves for underground mining applications. These valves are remanufactured to the same high specifications as new solenoids using the same Cat OEM-designed components, the same quality checks and the same test equipment. They incorporate all critical engineering changes and updates and meet MSHA regulations for Intrinsically Safe components. Available off the shelf at a fraction of the price of new, Cat Reman

valves are backed by a sameas-new warranty. Caterpillar states: “Both new and Cat Reman valves are designed to perform reliably in extreme conditions and withstand harsh underground mining environments. They are made with top quality materials including chrome and gold, which provide corrosion resistance to improve connectivity and reliability. Unlike other brands, Cat new and Cat Reman double solenoid valves feature sealed electronic components to elim-

inate potential for spark ignition of underground gases and coal dust.” “All seals and fasteners are installed and torqued to precise specifications to maximise protection against dust, water and other contaminants. Whether longwall managers prefer new Cat parts or the Cat Reman option, both are readily available through the Cat dealer organisation, and both can be installed quickly to maximise uptime.” • Caterpillar www.cat.com

The Keystone OS1700 from Pentair Valves & Controls is a new truly bi-directional, zero leakage ASME Class 150 rated knife gate valve providing lower total cost of ownership for mining and mineral processing applications. Designed to provide customers in diverse sectors from mining to pulp and paper with superior performance at higher pressures, the Keystone OS1700 combines almost 50 years of slurry knife gate development insights of the company with the latest technology and engineering techniques. Darrel Des Rochers, Knife Gate Product Manager at Pentair Valves & Controls explains that the full-round port and advanced seat design that places the elastomer seat outside the flow path minimises turbulence to greatly extend the life of the valve and protect downstream pipework and equipment. Suitable for inline or dead-end service up to full rated pressure, the Keystone OS1700 knife gate valve is built to MSS-SP135 short pattern specifications, requires less maintenance and delivers greater reliability compared to other styles of knife gate valves. According to Des Rochers, the new Keystone OS1700 is not only ideal for challenging applications such as high pressure slurry and oil sands applications, it is also an excellent choice for customers looking for a solution to protect against process pressure spikes that could damage an ordinary knife gate valve and any associated equipment. The MSS-SP135 short pattern face to face also matches MSS-SP81 dimensions, enabling simple upgrades of existing knife gate installations. The Keystone OS1700 is available in NPS 2 – 48 (DN 50 to 1200) sizes for customers across the US, Latin America and Asia Pacific including China. The precision moulded elastomer seat, available in EPDM, HNBR or GUM enables the valve to operate at up to 400°F (200°C) temperatures. • Pentair 1300 742 228 www.pentair.com

BRIDGING TECHNOLOGY Advanced technology bridge launching and crane stability assistance systems being introduced to Australasia by Enerpac are engineered to enhance the precision, safety and cost-efficiency of public and private infrastructure construction. The compact PLC controlled highpressure (700 bar) hydraulic technologies – engineered to reduce manpower, hazards and complexity on major and minor projects – include globally unique spindle bar systems, Enerlauncher incremental launching systems, heavy lift strand jack systems and SyncHoist high precision hydraulic load hoisting and positioning systems for cranes. The PLC controlled precision systems – which use globally proven 700 bar high pressure hydraulics to pack greater power into more compact tools – complement Enerpac’s wide experience in Australasia with synchronous

and heavy lift technology proven in Australasia in public bridging projects as well as by resource, transport, ports, infrastructure and electrical generation industries. The launch systems complement bridge lifting, shifting and nose recovery technology as well as maintenance systems for steel, concrete, wooden and composite road and rail structures, including the latest EVO synchronous lifting systems. Synchronous technology involves multiple sensor-equipped cylinders controlled by one person at a single point, where the status of every lifting cylinder is constantly monitored and displayed. This radically improves the simplicity, accuracy and safety of multiple cylinder lifts formerly involving whole teams of engineering staff spread around a job. Enerpac’s latest bridge launch and crane assistance technology includes: AUSTRALIANMINING

Spindle Bar Bridge System Enerpac’s spindle bar bridge launch system – which is suitable for uphill and downhill bridge launching – integrates sets of in-line hollow plunger cylinders through which steel bars are inserted for pushing, pulling and braking. The system – incorporating bars in standard lengths of six metres – is unique to Enerpac, says Enerpac Australasia Integrated Solutions Manager Warren Baltineshter. Enerpac Integrated Solutions’ expertise is dedicated to lifting, shifting and manoeuvring some of the world’s most challenging objects and structures. These include the world’s highest viaduct, the Millau Viaduct in France, which, with a mast summit of 343 metres, is twice as high as the Sydney Harbour Bridge. Enerlauncher System The Enerlauncher hydraulic bridge launching system uses PLC control

49

APRIL 2016

to safely and precisely lift, push and steer huge bridge sections into place. Enerlauncher is fully automatic, with synchronous incremental hydraulic tandem launching utilising a lifting bed designed for rigidity and security. The system delivers a total lift force of 1600 tons a unit and pushing force of 600 tons, says Baltineshter. The main advantage of the Enerlauncher System is that the synchronized hydraulic movements allow full control over the bridge sections during launching. Integrated PLC-control over two or more Enerlauncher Systems working simultaneously allows steering of the bridge. Strand jacks incorporate bunches of steel cables (strands) which are guided through main hydraulic pulling cylinders complemented by smaller integrated mini jacks to provide braking. • Enerpac www.enerpac.com


PROSPECT AWARDS

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

T

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

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

THE EVENING SAW HUNDREDS OF PEOPLE GATHER TO CELEBRATE MINING

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

AUSTRALIANMINING 28 50 MARCH APRIL 2016 AUSTRALIANMINING 2016



EVENTS

PROD-

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

LNG18 11-15 APRIL PERTH The 18th International Conference & Exhibition on Liquefied Natural Gas will be held at the Perth Convention and Exhibition Centre. More than 2,500 global LNG industry professionals from over 70 countries and hundreds of additional gas industry people will attend the conference for LNG 18. CEOs from Chevron, Shell and Woodside will share centre stage in the Opening Plenary Session speaking about “The Transformation of Gas”. Industry leaders and policy makers will address current challenges posed for the LNG industry with global and relevant focus. • LNG18 www.lng18.org

ALTA 2016 NICKELCOBALT-COPPER, URANIUM-REE AND GOLDPRECIOUS METALS CONFERENCE & EXHIBITION 21-28 MAY PERTH ALTA 2016, organised by ALTA Metallurgical Services, will be the 21st year of one of the world’s premier annual metallurgical events. The conference is an annual gathering of the global Nickel, Cobalt, Copper, Uranium-REE and GoldPrecious Metals industries and features highly focused programs, topical forums and presentations by key international speakers. The event comprises:

Three international conferences in one week Nickel-Cobalt-Copper Sessions including Hydromet Processing Sulphides Forum & Panel Uranium-REE Sessions including Membranes in Uranium Ore Processing Forum & Panel Gold-Precious Metals Sessions including Refractory Gold Ores Forum & Panel Three Short Courses The A-Z of Copper Ore Leaching Solvent Extraction and its Application to Copper, Uranium and Nickel-Cobalt Uranium Ore Processing Trade Exhibition ALTA 2016 will be an outstanding platform for exposing the latest worldwide developments in plant operations, process technology, new projects, testwork and scaleup, process modelling and control systems, application of mineralogy and geometallurgy, R&D, equipment, reagents,

materials, tailings disposal and environmental alleviation. The event provides an excellent opportunity to network with a wide variety of key industry professionals and showcase products and services to key decisionmakers in the pertinent field. • ALTA Metallurgical Services Allison Taylor 0411 692 442 alisontaylor@altamet. com.au www.altamet.com.au

QUEENSLAND MINING & ENGINEERING EXHIBITION 26 – 28 JULY MACKAY SHOWGROUND, MACKAY This biennial event is Queensland pre-eminent mining event. Held in Mackay, this even connects exhibitors directly with miners, giving them to showcase

the latest technology, equipment, and mining services available to the region. Presented by REEDMININGEVENTS, QME is the leading QLD showcase for the METS sector and a celebration of mining innovation. • REEDMININGEVENTS www.queenslandmining expo.com.au

SIEMENS PLM INDUSTRIAL INSIGHTS 2016 12 MAY NOVOTEL SYDNEY, OLYMPIC PARK, SYDNEY Today’s customers are demanding products that are designed and manufactured for an increasingly connected world, which are smarter, connected and – importantly – better able to drive down the user’s costs. The impact on companies is that engineering and manufacturing need

to communicate more effectively with each other. And virtual product development and real production need to become better interlinked as products become more complex. “The key to innovation in today’s complex world is adopting a strategy for digitalisation where the digital thread ties together all phases of the product’s lifecycle,” says Rajiv Ghatikar, VP and GM of ASEAN/Australasia with Siemens PLM software. “Today you can have technology that enables collaboration so seamlessly across locations and across supply chains that manufacturing is redefining itself.” Key enabling technologies are changing not just what we innovate, but how we innovate. • www.eventbsite.com. au/e/siemens-plmindustrial-insights-2016tickett-22381579908

World class equipment for drilling and bolting

Face Master 2.5 NVDR

Face Master 2.8 MPD

distributor: Nick Phillips Phone: +61 8 9297 4707 Nick.Phillips@ghh-fahrzeuge.com

AUSTRALIANMINING

for more information about our latest products visit:

www.minemaster.eu

52

APRIL 2016


The business of

building a strong future

5-7 MAY 2016 MELBOURNE SHOWGROUNDS - INCORPORATING

• NEW MOVING DISPLAYS AREA

• NEW VEHICLE TEST TRACK

• EDUCATION & CAREERS PAVILION

• VTA FREIGHT OUTLOOK CONFERENCE

• TRUCK & TRAILER LEADERS SUMMIT • AUSTRALIA’S RICHEST SHOW & SHINE EVENT

• HERITAGE TRUCK COLLECTION • OVER 500+ EXHIBITORS & 40,000 GUESTS

YOU’LL NEED TO BE QUICK TO BE PART OF THE 2016 ACTION REGISTER YOUR INTEREST AS AN EXHIBITOR AT THE 2016 SHOW NOW! Email your request to simon.coburn@primecreative.com.au or phone +61 3 9690 8766 Platinum sponsor



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.