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NEWS
THE LATEST MINING AND SAFETY NEWS
AUSTRALIAN MINING PRESENTS THE LATEST NEWS FROM THE BOARDROOM TO THE MINE AND EVERYWHERE IN BETWEEN. VISIT WWW.AUSTRALIANMINING.COM.AU TO KEEP UP TO DATE WITH WHAT IS HAPPENING.
FORTESCUE BUILDS IRON BRIDGE WITH SIMPEC
SIMPEC has won a $145 million major construction contract for a wet processing plant at Fortescue Metals Group’s Iron Bridge magnetite project in Western Australia.
The Iron Bridge project is a joint venture between Fortescue subsidiary FMG Magnetite and Formosa Steel.
SIMPEC, which is an engineering contractor subsidiary to WestStar Industrial, will provide vertical construction services for the project
FORTESCUE’S IRON BRIDGE PROJECT. with a workforce of around 500.
According to WestStar, the wet processing plant will require major module installation, tank installation, large bore piping, and supply and installation of electrical and instrumentation works.
The wet processing plant is a key part of Iron Bridge’s planned magnetite production rate of 22 million tonnes per annum.
SIMPEC managing director Mark Dimasi said the contract represents a major milestone after four years of being part of WestStar.
“This is an important milestone achievement for SIMPEC in the delivery of our company’s mission to deliver major projects in the industry,” Dimasi said.
Fortescue completed a technical and commercial assessment of Iron Bridge in May 2021.
The assessment resulted in a
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revised cost of up to $US3.5 billion ($4.7 billion) for the project.
“We look forward to further developing our relationship with the Iron Bridge joint venture and thank them for the opportunity to deliver such a high-profile project,” Dimasi said.
“Thank you to the team for their dedication and efforts in securing this major award. This contract will strengthen our position in the market and allow us to continue to take our business to a new level.”
FMG Magnetite owns 69 per cent of the project while Formosa owns the remaining 31 per cent.
FLSMIDTH SPLASHES OUT FOR THYSSENKRUPP MINING BUSINESS
FLSmidth has agreed to purchase thyssenkrupp’s Mining Technologies business (TK Mining) for €325 million ($522.28 million) to create a pit-to-plant technology solution with a sustainable focus.
The deal was highly amenable as both companies had complementary interests in transforming their businesses.
FLSmidth is a Danish company which serves over 60 countries with engineering, equipment and service solutions for minerals, metals, concrete, electronics and more.
FLSmidth chief executive officer Thomas Schulz said the addition of TK Mining’s prowess in mining systems, materials handling and processing would be complementary.
“TK Mining and FLSmidth are a perfect match and I am proud to announce this agreement to join forces,” Schulz said.
“This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool, and one of the world’s largest and strongest suppliers to the mining industry.”
The deal will welcome 3400 TK Mining employees to FLSmidth, once regulatory requirements are completed within the next 12 months.
As a multinational group of industrial and technology businesses, thyssenkrupp chief executive officer Martina Merz views the deal as not as a loss, but a shedding, to allow the company to strengthen other business areas.
“The successful sale of the mining business shows that we are pressing ahead at full speed with the transformation of thyssenkrupp and achieving important results step by step,” Merz said.
“But we have not yet reached our goal. The principle ‘performance first’ continues to apply. We need to return to positive cash flow as quickly as possible. The sale of Mining Technologies makes an important contribution to this.”
KOMATSU PLUGS IN ZERO-EMISSION INITIATIVE FOR MAJORS
Rio Tinto and BHP have joined forces with Komatsu to create and commission zero-emission haulage solutions.
The mining companies will trial Komatsu’s pre-production vehicles and have been given an option to be first buyers of the solutions once commercially viable.
The collaboration will form part of the Komatsu Greenhouse Gas (GHG) alliance, which was launched in August.
The alliance’s founding members include Rio Tinto, BHP, Codelco and Boliden, which will collaborate with Komatsu on the planning, development, testing and commissioning of zero-emission mining equipment.
According to Komatsu, the alliance will advance its power agnostic truck concept for haulage vehicles that can run on different power sources including diesel electric, electric, wired, battery power and hydrogen fuel cells.
“Rio Tinto and Komatsu have a shared history of partnership on innovation going back to when we built the world’s largest Komatsu autonomous haulage fleet in 2008,” Rio Tinto chief commercial officer Alf Barrios said.
“Our support of a trial, and the option to buy some of the first trucks from Komatsu, underscores our shared commitment to actively collaborate on product planning, development, testing and deployment of the next generation of zero-emission mining equipment and infrastructure as we look to decarbonise our business.”
BHP will provide engineering and technical resources to Komatsu through the development stage, with further collaboration through BHP’s FutureFit Academy to increase the skills of its workforce to operate the trialled equipment.
“Tackling climate change requires strong collaboration and collective effort across the supply chain,” BHP chief commercial officer Vandita Pant said.
“Reducing vehicle emissions is key to our climate strategy, and we are thrilled to join with Komatsu and our peers in the global mining sector on real, tangible action to help accelerate our transition to a low-carbon future.”
THE KOMATSU GREENHOUSE GAS ALLIANCE WAS LAUNCHED IN AUGUST.
SILVER LAKE RETHINKS MOUNT MONGER WORKFORCE PLAN
Silver Lake Resources has modified its operating strategy at the Mount Monger gold mine in Western Australia after a skilled labour shortage caused productivity and cost issues.
The new operating strategy will cut mill operation and instead focus on using Mount Monger’s stockpiles.
COVID-19 restrictions have impacted Silver Lake’s ability to source skilled labour, with the company expecting the shortage to continue in the 2022 financial year.
“The consequence of this has been higher turnover, lower productivity and higher costs,” the company stated.
“It appears unlikely the mobility of skilled labour will improve significantly in the 2022 financial year, however, Silver Lake’s historical stockpile build, and mill constrained operating plan, provides the company with operating flexibility to deliver 2022 financial year guidance.”
Silver Lake was still able to reach the higher end of its annual sales guidance with 248,781 ounces of gold and 1724 tonnes of copper sold in the 2021 financial year.
The company’s gold sales target for the 2022 financial year is set at 235,000 to 255,000 ounces of gold and 600 to 1000 tonnes of copper at an all-in-sustaining-cost (AISC) of $1550 to $1650 per ounce.
“At Mount Monger, Silver Lake will modify its operating strategy to reflect the limited mobility of skilled labour which is resulting in lower productivity and higher costs,” Silver Lake stated.
“This modified operating plan is made possible by Silver Lake’s investment in stockpiles at Mount Monger, which will maintain a mill constrained operation as Silver Lake reviews the scheduling of its projects to limit the operating and financial risk in the prevailing operating environment, while retaining optionality over established infrastructure.”
Silver Lake’s sales target for Mount Monger in the 2022 financial year is 125,000 to 135,000 ounces at an AISC range of $1750 to $1850 per ounce.
NORTHERN STAR TO EXPAND THUNDERBOX WITH GR CONTRACT
Northern Star Resources has awarded GR Engineering Services a $101 million engineering, procurement and construction contract at the Thunderbox gold operations in Western Australia.
The contract is related to the Thunderbox six million tonnes per annum expansion project, which will increase the operation’s mill output.
Former Thunderbox owner Saracen Mineral Holdings, which merged with Northern Star, previously contracted GR Engineering at the site.
According to Northern Star general manager processing, Simon Tyrrell, the Thunderbox expansion will increase the site’s processing capacity by three million tonnes per annum.
“The Thunderbox expansion increases the operation’s hard rock processing capacity to six million tonnes per annum from the current three million tonnes per annum, and decreases processing costs as outlined in the 2021 investor day presentation,” Tyrrell said.
“Northern Star is pleased to be working with GR Engineering again, a local company with vast project delivery experience in the Australian mining industry.”
Thunderbox is part of Northern Star’s Yandal production centre in Western Australia.
Northern Star’s investor presentation unveiled that Thunderbox’s mill increase would play a part in increasing Yandal’s production by up to 600,000 tonnes per annum.
GR Engineering managing director Geoff Jones said the contract extended the contractor’s long business relationship with Northern Star.
“GR Engineering is excited to continue working with Northern Star, one of the world’s leading gold producers, to safely deliver the Thunderbox expansion project,” he said.
“We have worked with the Northern Star team over many years and see this award as a strong endorsement of our proven (engineering, procurement and construction) delivery capability.”
Northern Star produced 31,761 ounces of gold at an all-in sustaining cost of $1297 per ounce at Thunderbox in the June quarter.
The company operates the Thunderbox operations, which are in the Yandal Belt and the AgnewWiluna Belt, using open pit and underground mining methods.
Northern Star sold 1.6 million ounces of gold in the 2021 financial year at an all-in-sustaining cost (AISC) of $1483 per ounce.
SHIPPING ACQUISITION SEES GLENCORE SET SAIL
GLENCORE’S MT OWEN COAL MINE IN NEW SOUTH WALES.
Glencore has acquired a majority stake in Newcastle Coal Shippers as the final part of its Hunter Valley Operations joint venture (JV) with Yancoal in New South Wales.
A Glencore spokesperson told Australian Mining that the majority stake is related to its 2017 deal to acquire a 49 per cent interest in the Hunter Valley Operations in New South Wales with Yancoal.
Glencore’s JV interest stemmed from Yancoal’s acquisition of Coal & Allied from Rio Tinto and paved the way for the Swiss miner to secure its stake in Newcastle Coal Shippers.
“Glencore’s acquisition of Parallax Holdings closes out an outstanding administrative matter related to our 2017 acquisition of a 49 per cent share in Hunter Valley Operations,” the spokesperson said.
“This provides us with a majority stake in Newcastle Coal Shippers and we continue to support its existing operating model.”
Newcastle Coal Shippers is a private company that contributed $1.2 million in dividends to Port Waratah Coal Services last year.
According to Port Waratah Coal Services’ 2020 annual report, Newcastle Coal Shippers’ principal activity was investment in the port company.
Port Waratah Coal Services owns and manages the Kooragang and Carrington coal terminals at the Port of Newcastle.
The two terminals hold a combined capacity of 145 million tonnes per year.
According to the Minerals Council of Australia’s Australian Export Thermal Coal: The Comparative Quality Advantages report, Australia is tied with the United States for the highestquality coal in the world.
The Hunter Valley Operations produces thermal and semi-soft metallurgical coal and produced 9.481 million tonnes of saleable product in 2019.
Glencore is one of Australia’s largest coal producers with assets across New South Wales and Queensland.
IMAGE: GLENCORE.
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STANMORE GETS THE NOD AT ISAAC DOWNS
Stanmore Resources has received a mining lease for the Isaac Downs metallurgical coal project in Queensland’s Bowen Basin, allowing construction and operations to begin.
Queensland Minister for Resources Scott Stewart said approving the mine was the right thing for jobs and the economy.
“This project will mean mining jobs for another 10 years, including for the 300 mine workers currently at Isaac Plains, as well as jobs completing rehabilitation in the Isaac Plains East area until 2025,” Stewart said.
“Isaac Downs will create up to 250 new construction jobs and business opportunities in and around Moranbah, as well as broader economic benefits for the Isaac region.”
The approval will allow up to 2.5 million tonnes per annum of metallurgical coking coal to be dug up for 10 years.
While creating $200 million in revenue for Stanmore, the project will feed run-of-mine coal to the coal handling and preparation plant at the nearby Isaac Plains complex.
Stanmore chairman Dwi Suseno explained the significance of the approval.
“The approval of the Isaac Downs project is a major milestone for the company,” Suseno said.
“This enables us to proceed with a critical project for the longevity and extension of the opencut operations supporting our Isaac Plains complex, maintaining Stanmore as a competitive producer of essential ingredients for steel production by our global customers.”
The project has now received approval for the mining lease, environmental authority, and approval under the Environmental Protection and Biodiversity Conservation Act.
Stanmore chief executive officer Marcelo Matos said the company was dedicated to responsible operations.
“Stanmore has a proud track record of progressive rehabilitation of its operations and intends to adopt the same commitment at Isaac Downs,” Matos said.
“We are committed to participating in community development in the Isaac region and Isaac Downs will ensure ongoing economic employment opportunities for the Moranbah area.”
APPROVALS ACCELERATION TO FAST-TRACK WA ECONOMY
MINE APPROVAL TIMES ARE EXPECTED TO IMPROVE FOLLOWING THE INVESTMENT.
The Western Australian Government has invested a record amount to accelerate project approvals across several agencies, including the Department of Mines, Industry Regulation and Safety.
The $120 million spend included the government’s $27.4 million election promise to the DMIRS to deliver mining approval reform.
Premier Mark McGowan said all five departments were integral to the state’s continued strength.
“Development in the mining, oil and gas, tourism and agricultural industries is vital to sustain economic growth and deliver WA jobs,” McGowan said.
“We are in the fortunate position of having the strongest economy in the nation, but we cannot be complacent as there are billions of dollars’ worth of capital projects in the approvals pipeline.”
The funding will mobilise 150 frontline officers to get their respective departments on the move.
McGowan added economic growth wasn’t the only motivator behind the investment.
“These additional officers will enable key agencies to meet the demand for timely assessments and approvals, while ensuring the protection of our environment, heritage, and of worker and community safety,” he said.
“There is plenty of room to improve regulation to make it more transparent, predictable, seamless and efficient, and ensure the community has high confidence in it.
“These extra resources – which include a dedicated red-tape reduction team – represent the single biggest investment in approvals in the state’s history.”
The Chamber of Minerals and Energy of Western Australia chief executive Paul Everingham emphasised the need for such investment.
“There are around $140 billion in projects in the WA mining and resources sector pipeline. An inefficient approvals process restricts our ability to take full advantage of these, impacting job creation as well as the local and national economy,” Everingham said.
“Now, more than ever, it is critical to maximise the significant pipeline of opportunities to support the local and national economy as it recovers from the ongoing impacts of COVID-19 as well as create new jobs for WA locals.”
The Australian Government has funded a blockchain pilot project to increase competition in Australia’s critical minerals sector.
As part of the government’s digital business package from the 202121 Federal Budget, it has provided $3 million to Queensland-based technology company Everledger.
The funding will support Everledger in researching how blockchain technology can provide a digital certification for critical minerals when they are extracted or moved across the supply chain.
Blockchain technology is used to record transactions, acting as a digital receipt that avoids hacking or duplicated information.
The technology will also help the sector ensure it follows regulations and increase demand for Australia’s critical minerals supply and also reduce costs.
An additional $2.6 million grant was given to Convergence.tech, which will uncover how blockchain technology can automate key reporting processes in other sectors.
Federal Minister for Industry, Science and Technology Christian Porter said the grants would push Australia forward in its blockchain capabilities.
“The Blockchain Pilot Grants will demonstrate the potential for blockchain to help businesses to save money and cut red tape by improving processes such as tracking products throughout the supply chain and transferring customer information,” he said.
“These two successful projects will also highlight opportunities to improve the technical and regulatory environment for blockchain in Australia, bolster blockchain literacy and support collaboration between Australian governments, the private sector and blockchain companies.
“The Blockchain Pilot Grants builds on the National Blockchain Roadmap which ensures Australia is well-positioned to take advantage of the opportunities this technology can enable.”
The funding has also aligned with the federal government’s national blockchain roadmap from February 2020.
The roadmap’s committee will be supported by working groups that explore blockchain supply chains, credentialling, cybersecurity and regulatory compliance.
KALBAR CROSSES ITS FINGERBOARDS FOR MINING LICENCE
Kalbar Operations has applied for a mining licence at its Fingerboards project in Victoria’s Gippsland region, adding to the potential for a mineral sands hub in the state.
Earth Resources Regulation executive director Anthony Hurst said Fingerboards was an important consideration, holding potential to be the next big thing in mineral sands mining.
“Under our mining legislation, we must begin the process to assess Kalbar’s mining licence application and we encourage anyone with an interest to make a submission on the specified grounds, including the applicant’s status as being ‘fit and proper’ to hold a licence and their financial capacity to complete their proposed work and rehabilitate the site,” Hurst said.
The application seeks to cover 2148 hectares for 20 years, as Kalbar mines highly valuable rare earths such as zircon, neodymium, praseodymium, dysprosium and terbium.
Assuming the mining licence and Environmental Effects Statement (EES) are approved, a definitive feasibility study would occur in mid-2022, before development and construction occur until mid-2025.
In August 2020, Kalbar chief executive officer Jozsef Patarica said the project would contribute strongly to the world’s demands for years to come.
“The Fingerboards project contains over two million tonnes of zircon at the highest in-ground grades in the world,” Patarica said
“The project has the potential to supply about 10 per cent of the world’s zircon requirements over the 15- to 20-year life of the mine.”
Hurst explained the difference in processes which will allow Kalbar to access the precious resource.
“The environmental assessment process underway will determine whether the mining proposal in the Glenaladale area has acceptable impacts and can proceed or not, while the mining licence application process is an additional legislative mechanism to assess if Kalbar meet criteria to be granted an exclusive right to mine the resource,” Hurst said.
The licence could not be considered until an EES had concluded.
THE FINGERBOARDS PROJECT IN VICTORIA.
