Australian Mining - Nov 2018 by Prime Creative Media

DRILL & BLAST DIGITAL MINING VOLUME 110/10 | NOVEMBER 2018

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COMMENT

PROGRESS ACROSS THE COUNTRY BEN CREAGH

Ben.Creagh@primecreative.com.au

AUSTRALIA’S SMALLER MINING STATES AND THE NORTHERN TERRITORY DESERVE TO BE HIGHLIGHTED FOR THEIR POSITIVE DEVELOPMENT OVER THE PAST YEAR.

t is often easy to become consumed by the huge output and development in Australia’s leading mining states – Western Australia, Queensland and New South Wales. The mines and projects in these states are generally the largest and often owned by the industry’s most high-profile companies. Our other states and territories should not, however, be overlooked at the moment. In the past year, there has been promising development in South Australia, Victoria, the Northern Territory and Tasmania, providing optimism that these jurisdictions are heading in the right direction. South Australia, for example, already has mine sites of a similar scale to the country’s largest (see Olympic Dam). The state has also been buoyed by a resurgence at Whyalla since GFG Alliance’s acquisition of the steelworks and iron ore mines previously owned by Arrium. GFG Alliance has demonstrated its commitment to the state and country through additional acquisitions and forming joint venture agreements with junior miners. Victoria is in the midst of a mining revival, particularly from a gold perspective, the metal first made famous in the state around Bendigo and Ballarat. Canada’s Kirkland Lake Gold has transformed the Fosterville mine near Bendigo into one of the country’s standout gold operations, from a production and exploration perspective. Kirkland Lake’s exploration success at Fosterville over the past year has tongues wagging at the prospect of what junior companies with assets in the area will unearth next. As covered in last month’s Australian Mining, the Victorian Government hopes to capitalise on this rebound. It plans to spend $220 million over

MANAGING DIRECTOR JOHN MURPHY EDITOR BEN CREAGH Tel: (03) 9690 8766 Email: ben.creagh@primecreative.com.au JOURNALISTS EWEN HOSIE Tel: (03) 9690 8766 Email: ewen.hosie@primecreative.com.au VANESSA ZHOU Tel: (03) 9690 8766 Email: vanessa.zhou@primecreative.com.au CLIENT SUCCESS MANAGER NATASHA SHEKAR Tel: (02) 9439 7227 Email: natasha.shekar@primecreative.com.au

the next five years to help Victoria benefit from the opportunities. The Northern Territory is seeing an uptick in exploration for the diverse range of commodities it offers. It is attracting some of the country’s biggest names in this regard. Newcrest Mining, for example, has signed a series of joint venture agreements with juniors in the Tanami region. The Northern Territory has dozens of juniors exploring for not only gold, but also bauxite, copper, iron ore, uranium, rare earths, potash and more. Positively, its government is making moves to promote the industry, most notably by setting up Tennant Creek as a mining and services hub to create jobs and opportunities. As you will read in this edition, Tasmania is cautiously navigating its own mining comeback. The industry, the major driver of the state’s economy, was savaged during the commodities downturn. However, as mineral prices have turned around over the past two years, so has the fortunes of mining in the state. Royalties, as a result, have surged. Tasmania is set to welcome the restart of operations and new developments, including the Hellyer gold operation and the Rogetta iron ore project. As this progress shows, the positive development is not limited to just a few states.

Ben Creagh Editor

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AUSTRALIANMINING

NOVEMBER 2018

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FRONT COVER

In this edition of Australian Mining, we put the spotlight on Tasmania and the latest developments that are delivering growth in the state. This issue looks at the opportunities lithium and other battery minerals are offering Australia, including advice on how we can make the most of their huge potential. We profile Lucapa Diamond Company and the progress it has made at the Brooking project in Western Australia, adding to its African success. This edition analyses a major merger in the gold industry between Barrick Gold and Randgold Resources, including how it will reshape the global sector. And as usual, we review the latest mining equipment and technology in our regular products spread. Image source: Sandvik

CONTENTS

AUTOMATION

INDUSTRY COMMENT

NEXT-GEN AUTOMATION Sandvik moves through glass labyrinth

ORGANISATIONAL UPDATES The latest industry perspectives

38-41

REGIONAL SPOTLIGHT MINING MANIA Optimism returns in Tasmania

GOLD MINING

12-14

42-43

EMERGENCE OF A GLOBAL LEADER Barrick Gold and Randgold Resources merge

FUTURE OF MINING THE LITHIUM SUPPLY CHAIN How can Australia capitalise?

MATERIALS HANDLING

16-18

BELT CLEANING MEETS STANDARDS Martin Engineering preserves conveyor health

EXPLORATION LUCAPA’S NEXT TARGET The promise of the Brooking project

INDUSTRY OUTLOOK ZOOMING IN ON FUTURE PROSPERITY 2030 Taskforce releases growth plans

46-47

20 DIGITAL MINING

RESEARCH AND DEVELOPMENT

RELIABLE AUTOMATION Eliminating cybersecurity risks

VIBRATING SCREENS BREAKTHROUGH Schenck Process rethinks screen design

INNOVATION

MINING EQUIPMENT

THE FUTURE OF MCLANAHAN Chris Knowles highlights the company’s evolution

TRACKING THE TRENDS

MAN TREKS ALL TERRAINS The importance of driver’s comfort

24-26

CRANES AND LIFTING

REVAMPING LEADERSHIP New skillsets for company boards

MINING ROADSHOW Nobles shares global expertise

28-29

PRODUCTIVITY

MINERALS PROCESSING

SMART MANUFACTURING Aveva’s Phil Ciezak explains the concept

PREDICTIVE MAINTENANCE Bosch Rexroth incorporates the human touch

30-32

WORKFORCE MANAGEMENT

MAINTENANCE

54-55

NEXT ERA OF WORKERS Komatsu looks to mining’s future

RED POWER 3 V-BELT Optibelt frees belt drives from maintenance

54-55

DRILL AND BLAST COLLABORATE FOR SOLUTIONS Boart Longyear’s engineers and drilling services team up

SAFETY

56-57

36-37

STRATA, BOLLE FOCUS A closer look a new safety initiatives

REGULARS

NEWS 6-8

PRODUCTS 58-61

AUSTRALIANMINING

EVENTS 62

NOVEMBER 2018

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NEWS

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RIO TINTO HAS COMMITTED TO GROWTH PROJECTS FOR THE ROBE RIVER JV.

Rio Tinto plans to sustain production of its high-grade iron ore products through a $US1.55 billion ($2.1 billion) investment in two Robe River joint venture projects in the Pilbara, Western Australia. The miner, which holds 53 per cent of the JV, will continue to produce its premium Pilbara Blend iron ore and Robe Valley lump and fine

projects next year, once approvals have been gained, with an estimated 1200 jobs to be created during this phase. The projects are forecast to reach production in 2021. Both projects will have a technology focus, with Rio Tinto planning to retrofit 34 of its haul trucks with Autonomous Haulage System (AHS) technology.

products in the coming years by developing the projects. Rio Tinto, with JV partners Mitsui and Nippin Steel & Sumitomo Metal, will spend $US967 million to develop the Mesa B, C and H deposits at Robe Valley, and $US579 million to develop Deposits C and D at the existing West Angelas operation. It expects to start construction of both

Rio Tinto Iron Ore chief executive Chris Salisbury said the development at West Angelas would help sustain production of the Pilbara Blend, the industry’s benchmark premium iron ore product. Salisbury added, “the additional Robe Valley deposits will enable us to continue to provide a highly valued product to our long-term customers across Asia. “The approval of these two projects highlights the strong pipeline of development options within our portfolio as we remain focused on our value-over-volume strategy.” Rio Tinto has committed $US820 million to the projects, an investment which forms part of the company’s replacement capital guidance of around $US2.7 billion from 2018 to 2020.

THIESS WINS $190M BHP CONTRACT AT NICKEL WEST BHP Nickel West has awarded a $190 million contract to Thiess for its mining services at the Leinster underground nickel mine in Western Australia. Thiess will provide complete underground mining services and equipment to support Leinster’s development and production for a minimum of 24 months.

and production.” During the 2018 Diggers & Dealers Mining Forum, Nickel West asset president Eduard Haegel said its Leinster concentrator was rebuilding production toward achieving 40,000t/y production in the coming years. BHP also revealed its plans in developing the Leinster B11

Thiess began work at Leinster in 2016, when the team used sub-level open stoping mining methods to gain access to nearly 230,000 tonnes (t) of ore. Thiess managing director Douglas Thompson said, “We have a deep understanding of the mine and our team is well placed to help support its next phase of development

AUSTRALIANMINING

NOVEMBER 2018

deposit, which was described as a low-capital, low-operatingcost development. Of the Leinster B11 deposit, Haegel said, “It would be the lowest cost underground ore source in the Nickel West portfolio.” The Leinster nickel operation is in the northern Goldfields of Western Australia.

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NEWS

CLIVE PALMER FIRES UP QLD WITH POWER STATION

HERON STARTS UNDERGROUND MINING AT WOODLAWN Heron Resources has entered the final quarter of 2018 with the Woodlawn zinc-copper project in NSW three quarters complete. The company, which launched underground mining in September, has kept construction on track for commissioning to start by the end of the year. Heron now expects a rapid expansion of its on-site workforce as recruitment continues and operational roles are filled. The company is seeking to recruit operating staff from the local community. Managing director Wayne Taylor said the underground access would enable the company to deliver underground ore in the processing plant in 2019. “Once underground, our geological team will focus on further expanding the known mineralised positions to build upon the excellent and cost-effective work they have undertaken to date,” Taylor said. “Elsewhere on site, I am pleased to report that good progress continues to be made with all aspects of the build, and that works remain on schedule for the commencement of commissioning by the end of the year.” EPC contractor Sedgman has continued to advance works at the main process and paste plant sites on schedule with the project timeline. Heron remains confident in the strength of the commodity market despite base metals prices experiencing an increased level of volatility and price falls due to the perceived risks associated with the United States-China trade war. Zinc increased to 11-year highs at almost $US3600/tonne in the first quarter of this year only to drop to a two-year low in August after shedding around a third of its value. The company’s view is that the pricing pull-back in zinc is not supported by the market supply-demand fundamentals, with global zinc stocks continuing to be drawn down to low levels and mine production in the first half of 2018 at below 2017 levels. “The pull-back in pricing is, however, likely to reduce the probability of new zinc projects (especially those at the higher end of the cost curve) being financed in what was already a challenging market,” the company added.

CLIVE PALMER HAS PUT COAL-FIRED POWER BACK ON THE AGENDA.

Waratah Coal chairman Clive Palmer has proposed the development of a 700MW coal-fired power station in the Galilee Basin, Queensland, in association with his company’s Galilee Coal project. Construction of the $1.54 billion project would commence in 2020 to support the in-development Galilee Coal project 30km north of Alpha. The plant would provide power for the mine’s operations (which focus on export coal for shipping via Gladstone), as well as power needs for the company’s early-stage North Galilee greenfields coal project. “I am putting my money where my mouth is by announcing this new station so we can power Queensland and help bring down energy costs which continue to escalate,” Palmer said. “At full scale, the project will comprise two open cut and four underground mines, as well as supporting infrastructure, and will produce 40 million tonnes per annum of high quality thermal coal for export markets.” Palmer said he anticipated that 1000 people would be employed over the power plant’s three-year development period, with up to 90 employees required throughout its 30-year mine life. The Galilee coal project is expected to be in production in the first quarter of 2024. “The Galilee power station will be developed as a contingent component of the overall project, providing the power needs for the mine operations, coal transportation and port operations, ready for export coal to Gladstone and future power needs for our proposed North Galilee coal mine development,’’ Palmer said.

ADANI EDGES CLOSER TO CONSTRUCTION OF CARMICHAEL KAIROS MINERALS RECOVERS HUNDREDS OF GOLD NUGGETS IN THE PILBARA

Adani has submitted a conceptual operating plan to initiate the connection of its planned narrow gauge rail line to the Carmichael coal project in Queensland. The submission triggers a regulatory process that, subject to Adani satisfying a range of conditions, would allow connection of the Indian company’s rail line to the existing network for transport of coal to Abbot Point for export. Adani Mining chief executive officer Lucas Dow said the submission was an important step toward starting construction of the project. “Importantly, we are not seeking any state or federal money to kick off construction of the Carmichael project,” Dow said. “There has been a lot of misinformation and speculation that we need taxpayer money to be able to build the mine and rail. This is absolutely not the case; this project will stand on its own two feet.” Adani has become increasingly optimistic about the project moving into the construction phase in recent months. Karan Adani, chief executive officer of Adani Ports and Special Economic Zones, publicly stated in July that Adani had completed financing for the mine and was close to securing funds for the rail component. Dow said strong ongoing demand for coal in the Asia-Pacific region combined with the commercial competitiveness of the Carmichael mine meant the project’s economics were strong. “Countries in Asia are developing rapidly and need energy to improve the lives of their people and provide infrastructure and services that people in the developed world take for granted,” he said. “India and other countries in South-East Asia are the target market for our coal.”

Kairos Minerals has made a substantial gold nugget discovery – as many as 256 nuggets – at its Croydon project in the Pilbara, Western Australia. In what Kairos described as “a significant discovery for the Pilbara region”, the gold nuggets were found scattered over an area of less than 150 metres by 50 metres during helicopter-supported exploration. The nuggets, weighing a total of 254 grams, display flattened watermelon seed shapes with pitted texture and rounded edges, similar to those found throughout the Pilbara. They were found with a metal detector. Kairos executive chairman Terry Topping said, “This is an exceptional discovery, which comes just a few weeks into our new 2018 conglomerate exploration program at the Croydon project. “We anticipate having crews back in the field within a week to commence the next phase of exploration, which will include further sampling, metal detecting and trenching – ahead of a program of systematic RC/diamond drilling.” The nuggets were found at a previously unexplored prospective geological sequence, adjacent to the unconformity between the Mt Roe BasaltConglomerate and the Archaean basement. Its stream sediment sampling returned seven grams per tonne (g/t) of gold earlier this year. Topping said, “While there are many questions still to be answered, the presence of such a significant accumulation of gold nuggets within the first area followed up from our regional stream sediment program makes this project a priority exploration focus for us.” The discovery was assisted by Pilbara conglomerate gold expert George Merhi. AUSTRALIANMINING

NOVEMBER 2018

Completed on time, on budget and incident free

14660 B A4+

Extending belt life on 3 primary feeders project

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Project Scope The three primary belt feeders at FMG’s Solomon Hub were delivering unacceptable downtime and lost production through repeated belt failures. Mechanical changes to the loading chute combined with a new conveyor belting specification greatly improved their availability. Key Data The feed source is the primary crusher and major conveyor parameters were: • Conveyor – Centre to Centre – 140.63 metres • Pulley Diameters – 800mm • Tonnage – 5,500tph • Belt Speed – 3.98m/sec • Product Size – ≤600mm (95% minus 400mm) • Product Bulk Density – 2,400kg/m3 • Chute Drop Height – 5.7m A combination of large primary product size and drop height generating a high impact force which exceeded the rating of the selected steel cord belt specification was identified as the cause of holes being punched in the belts and premature belt failure. Installing cross bars in the lower section of the chute and a 90° cross beam longitudinal to reduce the speed of the product resulted in improvements to the loading. The new belt installed was a composite of 1800 mm x Conquest XP 1250/2 PIW 18 mm x 7 mm ContiTech Grade Monster Hide x Stacker c/w HD Leno Breaker fabric in the carry cover. This has a belt mass of 72.0kg/m and 34.9mm gauge. Summary FMG has had great success with ‘Monster Hide’ compound on CV03 at Cloudbreak Mine (topleftpic) where it has increased belt life from three to eight months. An astonishing 165% improvement. Results of the loading chute changes combined with the new conveyor belting on the three primary feeders have been extremely encouraging.

AUTOMATION

SANDVIK LH514 FULLY AUTOMATED UNDERGROUND LOADER.

SANDVIK CONQUERS THE LABYRINTH WHEN SANDVIK TOOK ITS NEXT-GENERATION AUTOMATED LOADER FOR A SPIN THROUGH A LITERAL MAZE OF GLASS, RESULTS SHATTERED EXPECTATIONS. BUT THANKFULLY NOTHING ELSE.

andvik’s engineers aren’t pulling punches with the equipment manufacturer’s newest loaders. A proponent of automation in mining for over 20 years, the company has celebrated a notable milestone by passing the two million hour mark for operations using its underground self-driving loaders. Sandvik’s latest line of autonomous machines – the LH514 – celebrates a smaller but no less significant milestone for the company in its own right; it is the first of the mining loaders to feature an auto-load function for bucket filling, meaning the entire process is now automated from start to finish.

Automation provides a host of safety benefits and Sandvik’s self-driving underground loaders have resulted in no accidents involving people in over two million operating hours. “A benefit with autonomous systems is that we can move people from the environment underground that can be hazardous, to safe control rooms above ground, improving safety and productivity for our customers,” Sandvik Mining and Rock Technology senior systems engineer for automation Jouni Koppanen says. “It’s groundbreaking for the industry that our mining machines now are able to load material, transport and empty it all by themselves.” Sandvik’s loaders are designed to

SANDVIK CEO BJÖRN ROSENGREN IN THE LH514.

AUSTRALIANMINING

learn routes by recording a path from the very first pass of a tunnel; the addition of safety sensors ensures loaders will brake should anything cross their path. Remote operators can see everything via on-board cameras, though the LH514 is designed to work in low-light conditions as well. The machine operators can also control multiple loaders at the same time, saving time and improving efficiency. In an effort to showcase the company’s reputation for accurate and safe automation technology, Sandvik decided to put together an ambitious demonstration of its latest LH514 underground loader’s advanced capabilities. A 1740-square-metre glass labyrinth was built, comprising of 589 panes for the vehicle to attempt to navigate without breaking anything. Constructed at the Arctech Helsinki shipyard in Finland, the labyrinth was built to simulate the often-narrow walls of an underground mining tunnel. The 38-tonne LH514 loader utilised its laser-guided pathing system to detect and navigate the 2.8-metre high glass walls while a film crew shot the event for a promo. The LH514’s automation system used four separate types of sensors to navigate the delicate network of panes. Firstly, the loader was manually taught a path by a remote operator

NOVEMBER 2018

who used the loader’s laser scanner to maintain a clear view of the walls on either side of the vehicle. Odometers, gyroscopes and angle sensors were also used to provide even further clarity and information for the loader to map its path effectively. This was no mean feat given the twisting nature of the course, which included a tight S-shaped chicane, a shape more in keeping with the Australian Grand Prix than an underground mine site. Only one breakage occurred and it had nothing to do with the LH514; a camera operator who moved a bit too close to a wall during filming touched one of the delicate panels with the front of his rig, bringing several panes crashing down. If anything though, this human error only served to further encapsulate the point Sandvik had set out to prove, as the loader efficiently navigated the walls of glass with ease and without issue. At the culmination of the test, Sandvik chief executive officer Björn Rosengren then took to the vehicle’s cab and proceeded to smash the labyrinth — for the sake of verisimilitude, naturally. Sandvik recycled all of the glass to avoid waste. “We said that we were going to do something different,” Rosengren says, “and what can be more fragile than a glass labyrinth?” AM

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REGIONAL SPOTLIGHT

AUSTRALIANMINING

NOVEMBER 2018

REGIONAL SPOTLIGHT

MINING MANIA RETURNS TO AUSTRALIA’S ISLAND STATE TASMANIA HAS ENJOYED A COMEBACK IN THE MINING SECTOR OVER THE PAST TWO YEARS. EWEN HOSIE SPEAKS TO EXPERTS IN THE STATE TO FIND OUT WHY.

asmania is no upstart when it comes to mining. It is home to Australia’s longest-operating mine, Mount Lyell in Queenstown, which changed hands across myriad owners from 1893 to 2014 before being shuttered following a tragic incident. Mount Lyell is tied symbolically to a resurgence of interest among explorers in the state. The mine is tipped for a restart next year under the banner of Indian mining major Vedanta Resources. The Mt Lyell field has an estimated non-JORC resource as high as 311Mt at 0.97 per cent copper and 0.31g/t of gold. In January 2017, Diversified Minerals’ Henty gold mine in western Tasmania achieved first pour under new owners Diversified Minerals, which brought the mine back from the brink after having been on care and maintenance since late 2015. It has a JORC resource of 2.8Mt of gold at 12.5g/t.

Likewise, London-based company NQ Minerals has breathed new life into the Hellyer gold mine with a new tailings processing project. Shut by previous owner Bass Metals in 2012, NQ Minerals plans to reprocess an estimated $1.5 billion of gold, lead, silver, pyrite and zinc tailings over a 10-year project life. While mining in Tasmania is not as tied to the state’s image as Western Australia or Queensland, it’s still critical to its economy. The Tasmanian mining sector employs over 6300 people and accounted for 55 per cent of state exports in 2016–17. According to Wayne Bould, chief executive officer of the Tasmania Minerals and Energy Council (TMEC), the mining industry in the state never really died. “There were certainly some issues at the time of the global financial crisis and I think that impacted any smaller mining opportunities around the world generally,” he says. “That’s very much turned a corner.

What we’re starting to see now is the fruition of plans and strategies put in place up to three or four years ago.” While best known for the mining of gold and tin, Bould says Tasmania is also a highly metalliferous area full of complex polymetallics. He believes the state offers a burgeoning opportunity for explorers of rare earth ores that may not have been as attractive to investors a decade ago. “With changes in technology and changes in the requirements for metals like vanadium — because of their uses for electric cars, batteries and high tech gear — people are far more interested in coming and having a look at them than they were 10 to 15 years ago, when you had to have a deposit that would take 25 dump trucks before anyone would start,” says Bould. Accelerate Resources is one junior company hoping to capitalise on this at the early-stage Mt Read cobalt project after spotting an opportunity to meet the demands of

WAYNE BOULD SPEAKS AT THE 2018 TASMANIAN MINERALS AND ENERGY CONFERENCE IN JULY.

AUSTRALIANMINING

NOVEMBER 2018

WAYNE BOULD, TMEC CEO.

the electric vehicle (EV) market in a Tier 1 jurisdiction. Mt Read is a considerable change of pace for the Perth-based company, which is best known for its gold sites in Western Australia. The company has identified promising returns for cobalt, copper, nickel and gold at Mt Read’s two prospects — Thomas Creek and Henrietta. Like Henty and Mt Lyell, Accelerate’s project is in the highly metalliferous Mount Read volcanic belt. Accelerate began its work at Mt Read in earnest in October 2017. Its recent drilling at the Thomas Creek deposit has shown evidence of a large porphyry system with high potential for multiple cobalt and copper targets. Managing director Yaxi Zhan says Tasmania has been underexplored and provides a unique investment opportunity. “I think across the board there’s definitely been more confidence and activities in the industry,” she says. “If you look at the deals that are occurring in Tasmania that’s on the upper trend as well. “There’s a lot of activity going on in the southwest of Tasmania and on the other side of the Tassie there’s more focus on gold exploration,

REGIONAL SPOTLIGHT

AN IMAGE OF IRON BLOW, ONE OF THE EARLIEST VENTURES AT THE HISTORIC MT LYELL MINE.

WHAT WE’RE STARTING TO SEE NOW IS THE FRUITION OF PLANS AND STRATEGIES PUT IN PLACE UP TO THREE OR FOUR YEARS AGO.” with the government putting in policy to encourage and attract more explorers.” Tasmania’s Will Hodgman-led Liberal Government is trying to stimulate the local mining economy. In May, Tasmania Resources Minister Guy Barnett announced the Mining Exploration Grants Program, a $2 million injection intended to cover helicopter and drilling costs for explorers. The Mt Lyell restart, which requires significant work, has also been made possible in part due to subsidisation, with the Hodgman Government having committed around $9.5 million so far to the project in cash and kind. Bould believes the Tasmanian

Government has taken a more streamlined approach to mining regulation in recent years. “The government has become less of a policeman and more of a facilitator to some degree — albeit in the bounds of the laws that prevail at the time — but they’ve also understood that some of the approval processes were draconian and a little bit out of date,” he says. Ray Hazeldene, chief geologist of Stellar Resources, echoes this sentiment, saying the government has been quite encouraging. Stellar is responsible for the indevelopment Heemskirk project near Zeehan in the northwest of Tasmania. The project, which focuses on cassiterite tin, is close to the Renison AUSTRALIANMINING

underground tin mine, a joint venture between Metals X and Yuunan Tin Group that is the largest active tin mine in Australia (24.5Mt at 1.4 per cent tin). “There hasn’t been a lot of new discoveries made in the last 20 years so getting some greenfield exploration going is important I think,” Hazeldene says. “There’s a lot of activity leftover from majors in the 60s and 70s that hasn’t been drilled so there’s a lot of potential, but the exploration costs in Tasmania are higher than most companies would be used to in Western Australia or even the eastern states.” Geographically, Tasmania has benefits too. Due to its small size compared to other Australian states — a surface area roughly equivalent to Ireland — Tasmanian mining operations don’t require fly-in, flyout (FIFO) workers. It also offers energy advantages. Tasmania generated 100 per

NOVEMBER 2018

cent of its energy needs from renewable energy sources (primarily hydroelectric dams) in the September 2018 quarter at an average price of $43.46 per Megawatt hour (MWh), around half the cost per MWh of New South Wales and South Australia. Overall, the signs are looking increasingly positive for a boost in greenfields exploration to complement Tasmania’s abundant brownfields operations. “The co-operation investors can get from organisations like TMEC and Mineral Resources Tasmania provides people with a pathway that helps them to navigate issues reasonably well,” says Bould. “We have excellent access to government decision makers and the like and can assist people like Hellyer in having the appropriate discussions in a timely manner. “That’s one of the values of being in a small state where we all know each other pretty well.” AM

A GIANT SELF-DRIVING MACHINE NAVIGATES A GLASS LABYRINTH

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FUTURE OF MINING

CAPITALISING ON THE BATTERY MINERALS SUPPLY CHAIN AUSTRALIA HAS A GEOGRAPHICAL ADVANTAGE IN LITHIUM AND OTHER BATTERY MINERALS, BUT THAT IS YET TO TRANSLATE INTO CAPITALISING ON THE ENTIRE SUPPLY CHAIN. BEN CREAGH EXPLAINS.

t is crunch time for Australia’s lithium industry. Australian Government chief economist Mark Cully believes the country’s leaders need to make key decisions about the future of the industry to capitalise on its economic potential. The emerging industry has the potential to earn hundreds of billions of dollars and create thousands of jobs in Western Australia, the Chief Economist’s Office explains in its latest Resource and Energy Quarterly. Cully says these decisions need to be made in the coming months. He highlights the rapid growth of lithium mining in Australia, recently headlined by the start-up of Pilbara Minerals and Altura Mining’s projects at Pilgangoora in the Pilbara, Western Australia. The expected rise in output from Australia’s projected growth is on track to leave the country accounting for almost 80 per cent of global supply from hard rock deposits, Cully explains. Globally, lithium demand is expected to rise from 149,000 tonnes of lithium carbonate equivalent (LCE) to 1.3Mt LCE in 2027, with 90 per cent of growth driven by electric vehicles (EV).

Cully believes Australia has strong potential to move to the centre of the global lithium supply chain given its geological advantage. However, he says the core question at the moment is whether Australia can become a destination for high-grade lithium refining. “Various factors will need to be considered, such as site pre-approvals, research and development, and access to skilled workers,” Cully says in a special feature on lithium. “Given the pace of change and efforts now under way to solidify the supply chain, it is likely that key decisions around the future of lithium in Australia will need to be made within the next few months. “Countries which capitalise on the opportunities of the emerging global lithium market could earn hundreds of billions of dollars in coming decades, and could play a pivotal role in fostering a new wave of clean energy technology around the world.” The report’s release came in the same week as Pilbara Minerals and Altura shipped their first cargo of spodumene concentrate, the precursor material for lithium, from Port Hedland to north Asia. Their milestones will be major

PILBARA MINERALS’ FIRST SHIPMENT BEING LOADED. IMAGE: PILBARA MINERALS.

AUSTRALIA HAS ALL OF THE MINERALS THAT ARE NEEDED TO MANUFACTURE LITHIUM RECHARGEABLE BATTERIES AND A SERIES OF COMPARATIVE ADVANTAGES THAT WE CAN CAPITALISE ON TO STEP OUR WAY DOWN THE VALUE CHAIN.” contributors in the rise in income from lithium exports, which are expected to be worth around $1.1 billion by 2020, up from $780 million in 2017. Australia’s growth in new mines has been supported by investment in beneficiation, with five plants now planned or under construction in Western Australia, including at Kwinana and Kalgoorlie. This combination of lithium investment has also led to a spike in employment in Western Australia. The number of full-time workers on lithium projects in Western Australia has increased from 399 in December 2014 to more than 2600 by October, with thousands more to come. Lithium’s potential has also emerged as a talking point in the political arena, and it is now a sector that could help

AUSTRALIA HAS SEVERAL ADVANTAGES IN THE BATTERY MINERALS SECTOR.

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NOVEMBER 2018

Australia’s parties secure crucial votes at the next election. Prime Minister Scott Morrison and Resources Minister Matt Canavan visited Perth to discuss Australia’s lithium opportunity with the state’s industry representatives last month. The Association of Mining and Exploration Companies (AMEC), amongst others, has lobbied both state and federal government to develop a vision for the future that ensures Australia seizes its share of the lithium value chain. AMEC chief executive Warren Pearce used the political visit to urge the federal government to grasp the battery minerals opportunity. Pearce says Australia’s dominates one end of the value chain, producing 60 per cent of the world’s lithium,

FUTURE OF MINING

but also has a unique opportunity to undertake greater lithium downstream processing. “Australia has all of the minerals that are needed to manufacture lithium rechargeable batteries and a series of comparative advantages that we can capitalise on to step our way down the value chain,” Pearce tells Australian Mining. “There is a significant prospect of broadening the battery minerals opportunity beyond lithium – with the opportunity to value add to a wide range of battery minerals, including nickel, cobalt, manganese and graphite.” Pearce believes there is a “window of roughly two years” before the global lithium supply chain begins to set which will largely cement where battery materials are processed, components are made and batteries manufactured. Lithium Australia managing director

Adrian Griffin, another long-time advocate of developing downstream processing capabilities in Australia, reinforces the urgency of making key decisions. “The problem is that if we don’t do it and do it immediately then the industry will get dominated by long-term off-take agreements, supply contracts and you will never get the opportunity to claw that back,” Griffin says. “Given that roughly 50 per cent of the supply of all of those materials come from Australia and WA in particular, we have got the ideal opportunity to control a much larger proportion of the supply chain if we are prepared to put the effort and the investment into developing downstream processing.” Griffin believes state and federal governments have started to understand the enormity of the opportunity, which he puts

in the trillions of dollars, instead of the millions. He also rejects the view that Australia’s high-cost environment will stand in the way of developing an industry that covers the complete supply chain. “That’s what nearly everyone says but if you go to places like China and look at the battery manufacturing plants you find they are some of the most automated plants that you will see anywhere in the world – that means you will not have a high labour component,” he says. “Australian labour costs, certainly they will have some impact, but most of your cost is material cost. If you are generating the raw materials in Australia and not having to move them far and taking transportation out from the supply chain cost you can be more than competitive on a global basis.” The federal government’s response to the latest lobbying for

a downstream sector is yet to be seen (at the time of writing), but the nation’s opposition has already ramped up its proposals for the battery minerals industry. The Labor Party plans to “supercharge” Australia’s battery metals manufacturing industry if it is elected at the next election. “Australia is the world’s biggest supplier of lithium and we produce every metal needed to make a lithium battery in Australia,” a Labor Party statement says. “There’s no reason why Australian manufacturing workers can’t refine more of our battery metals and also make batteries here.” With battery minerals becoming a political hotspot ahead of the next federal election, perhaps the industry will get its wish and action will be taken. As Griffin says, the time for Australia is now. AM

LOADING ACTIVITIES AT PORT HEDLAND. IMAGE: PILBARA MINERALS.

AUSTRALIANMINING

NOVEMBER 2018

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EXPLORATION

LUCAPA’S DIAMOND JOURNEY EWEN HOSIE SPEAKS TO LUCAPA DIAMOND’S STEPHEN WETHERALL ABOUT THE COMPANY’S AMBITIOUS BROOKING DIAMOND VENTURE IN WESTERN AUSTRALIA.

ucapa Diamond Company made headlines in August when it returned 1100 diamonds from a single 178kg sample of lamproite core at its Brooking exploration project in Western Australia. Brooking is in the Kimberley region about 50km from the Ellendale yellow diamond mine that closed in 2015, but is now set for a restart. Lucapa’s recovery of the diamonds built on a smaller but still-promising recovery of 119 micro- and macrodiamonds from an 87kg core in January 2018. Before this Australian venture, Lucapa’s success had been in the premium alluvial diamond market from recoveries at its Lulo project in Angola, central Africa. The company holds the record for the largest diamond ever found in Angola, a 404.2-carat (ct) rough diamond discovered at the company’s flagship Lulo mine in February 2016. Incidentally, the company holds second place on the list as well for a 227ct diamond discovered in February 2017. Lucapa is also on the verge of a start to commissioning at the Mothae kimberlite project in Lesotho, as the majority owner of a 70–30 joint venture with the Lesotho Government. The company has high hopes that Brooking, its first Australian project, has the potential to become a major diamond mine, filling a valuable gap in the high-end jewellery market with Rio Tinto’s Argyle mine expected to close in the coming years. For Lucapa’s chief executive officer and managing director Stephen Wetherall, who has been with the company for four years, the excitement is palpable. “We are embarking on our third drilling campaign [at Brooking] and plan to drill 11 other targets that we have identified,” he says. “The fact that we have found one of those targets or lamproites to be diamondiferous certainly increases the likelihood of other diamondiferous lamproite being around as well.” Lucapa’s work at Brooking started in

LUCAPA EXPECTS UP TO 90 PER CENT OF ITS PRODUCT TO BE SOLD AS HIGH-END JEWELLERY.

earnest when it entered a commercial arrangement with junior explorer Leopold Diamond Company to acquire 80 per cent of the Brooking tenement area. The long-term goal, says Wetherall, is to mobilise a bulk sampling campaign to evaluate further macro diamond potential. Lucapa hopes to complete a drilling campaign before the start of the wet season at the end of the year. “We have conducted heritage surveys with our Aboriginal colleagues, are waiting on the final report and also have the program of works at the department already,” Wetherall explains. “Once they have signed that we will get on the ground.” The company has adapted to the costs and other factors involved in setting up a Western Australian mining project, which Wetherall says has higher costs as a mining jurisdiction than central Africa, but also has easier and quicker access to skill sets due to AUSTRALIANMINING

existing infrastructure. Environmentally, he cites little difference between the two. “We operate in middle Africa and it has a rainy season from October through to March or early April, which is similar to Kimberley. The temperatures in northern WA are probably a bit more hostile in terms of ultimate heat,” he explains. “Where we are in Lesotho [at Mothae] its 3100m above sea level so in the winter we’ve got to deal with snow and have rain in the summer months. We capture the rain in our freshwater dams to allow us to process and treat material. “If you look at Mothae, where we operate near ski resorts, we deal with snow there as well.” Lucapa plans to bring its African success as a supplier of high-value gem diamonds to what Wetherall refers to as the “uberwealthy”, ultra-high net worth individuals who comprise the most profitable customer base in the

NOVEMBER 2018

global diamond market. The company is well set to meet this demand, with its current output of low-value, industrial-grade boart diamonds sitting between just 1–3 per cent. ‘We are currently seeing very high demand for the high end and subdued demand for the low end,” he says. “The diamond results that stand out above the rest are companies that have high-end production. “Because our crystal ball is a bit murky when it comes to multiple sectors within the industry, we focus on staying in the more stable, large-end side and hope to offer consistent returns to our shareholders going forward. “Where we operate in the emotional sector — large, high value stones — the people who are buying our product want to know it took three billion years to create our diamonds and that they have come from the depths of the earth.” AM

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DIGITAL MINING

WHY CYBERSECURITY IS THE ACHILLES’ HEEL OF AUTOMATION FM GLOBAL’S ANDREW STAFFORD TELLS AUSTRALIAN MINING ABOUT THE CYBERSECURITY RISKS THAT SHOULD BE CONSIDERED WHEN INTRODUCING AUTONOMOUS MACHINERY TO MINING. of business operations allows such untargeted attacks to spread easily throughout the system. The shutdown of a Cadbury’s factory in Tasmania in June 2017 was part of a worldwide shutdown of its parent company, Mondelez International. These possibilities are becoming a reality for many. More than half of mining operators experienced a significant cybersecurity incident last year, according to Ernst and Young.

Resilience not compliance

THE RISE OF AUTONOMOUS VEHICLES HAS INCREASED THE CYBER SECURITY RISK.

he outlook in several segments of the mining sector is looking up. The industry is experiencing an uptick in demand, funding and sentiment. The appeal of electric vehicles, the implementation of more stringent environmental legislation and household solar battery use are among the trends driving increased demand for commodities including lithium, cobalt, boron, vanadium, copper and nickel. Bucking global trends, mining overtook transportation to become the leader in merger and acquisition activity in Australia during 2017, according to Mergermarket’s Australian M&A report. The sector is in better shape than ever to take advantage of this boom. Miners have worked hard to optimise supply chains during the past decade. Operations have become leaner. Now the focus is turning more towards making individual mine sites more efficient – with data at the heart of these plans. When it comes to data-driven optimisation, there’s an abundance of quick wins available. Industrial control systems are generating

massive amounts of data. Add a layer of analytics over the top and a rich data trove becomes ripe for insights and optimisation. When new scenarios can now be run in seconds instead of days, the impact is smarter, faster and more strategic operational change. We’re at a technological tipping point, in which the convergence of information technology (IT) with operational technology (OT) is enabling radical new possibilities.

The other side of the coin

Yet there’s another side to this coin – cybersecurity. Nobody likes to spoil a party, but ensuring your digital investments have the appropriate protections in place is key. The cost of failure here is simply too great. Cyberattacks are increasing in number, roughly doubling every year since 2015. The financial impact on business is also on the rise, jumping 62 per cent between 2016 and 2018. These attacks are also becoming more physical in nature, damaging property as well as disrupting processes. Imagine a wind turbine that gets hacked and spins out of control, causing millions of dollars in damage. As recently as 2015 there had been AUSTRALIANMINING

only two such recorded cases but tangibly destructive outcomes are now increasingly common. The very assets that promise to speed mining’s transition to a digital future – industrial control systems with built-in connectivity – also have built-in vulnerabilities. Developed during a time when cyberattacks weren’t so pervasive, their ageing technology makes them susceptible to attack. Poor software patching discipline and easily guessed passwords exacerbate the problem. The continued introduction of automation technology increases the attack surface in mining operations. There’s also a shift in the types of cyber incidents to factor in. Some business leaders are still convinced they won’t be targeted but the randomised nature of many attacks make this a dangerous assumption. This is especially true in the mining sector where a minor shutdown can cost millions of dollars. The rise of indiscriminate attacks, like last year’s WannaCry and NotPetya, should be of major concern even for those without the dubious distinction of being directly targeted. The global interconnectedness

NOVEMBER 2018

Just as automation and the digital opportunity moves up the board agenda, cybersecurity must too. Yet for too many organisations, it’s yet to be escalated beyond the IT department. This is reflected in the fact that 97 per cent of mining operators admit their cybersecurity doesn’t meet their organisational needs. There are three key aspects to managing cyber risk – physical security, industrial control systems and information security. Boards and leadership teams looking to ensure their businesses are protected effectively must implement products, processes and educational initiatives taking each of these areas into account. These should be reinforced with appropriate insurance coverage based on a holistic view of cyber risk. Resilience not simple compliance should be the watchword when designing cyber strategies. Losses experienced are directly correlated not only to the severity of the cyber incident, but to the amount of time it takes to recover. Balance risk reduction with developing an appropriate response plan in place if the worst happens. The very same technology that is unleashing opportunity in the mining sector could become its Achilles’ heel if due attention isn’t paid to cybersecurity. Diligence now will ensure digital potential doesn’t turn into pain. Andrew Stafford is client services manager for FM Global Australia and New Zealand. AM

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INNOVATION

BIG PLANS FOR MCLANAHAN AS MCLANAHAN CONTINUES TO GROW WITH THE OPENING OF ITS FLAGSHIP FACILITY IN NEW SOUTH WALES, AUSTRALIAN MINING TALKS TO APAC SALES AND MARKETING DIRECTOR CHRIS KNOWLES ABOUT THE COMPANY’S EVOLUTION AS A SERVICES PROVIDER.

MCLANAHAN WAS A FINALIST IN THE TIME SAVING INITIATIVE CATEGORY AT THIS YEAR’S QUEENSLAND MINING AWARDS.

cLanahan Corporation has enjoyed an eventful 2018. Fresh from a nomination at the Queensland Mining Awards for its work with Thiess at the Lake Vermont coal project, the company opened the facility in Cameron Park, New South Wales in August. The 18,000-square-metre centre dwarfs the company’s three other interstate Australian offices in Perth, Mackay and Newcastle, respectively. McLanahan started designing the modern, well-optimised and more efficient facility in August 2017. The team needed enough space and light to engage engineering collaborations using new technologies, with the workshop and lab set up to

interact across various disciplines. It built the facility near a freeway to offer efficient transport options for heavy freight. “The larger inventory space and more efficient workflow now enables us to maximise our investment in component tracking systems and integrated supply chain systems,” explains McLanahan sales and marketing director APAC Chris Knowles. “As we grow our business and endeavour to deliver more systems, equipment and services to the global mining community we need to future proof our business.” McLanahan originated as a familyowned company in Pennsylvania in 1835. The company launched its Australian division as a crusher and feeder-focused original equipment AUSTRALIANMINING

manufacturer (OEM) in Newcastle in 2003 with just five full-time staff. McLanahan’s Australian division has grown considerably since; the Cameron Park facility incorporates 38 staff, including engineering designers, technical services staff and a design draft team. It is a significant expansion for McLanahan and is now considered the company’s Asia-Pacific (APAC) hub. McLanahan’s focus on teamwork extends outside of its operations and into its community work, with the company the sponsor of numerous sporting and charity events. Its recent staff sponsorships include a company receptionist’s quest to compete in a dragon boat championship held in Malaysia and a service technician’s efforts to

NOVEMBER 2018

complete a 100km Blue Mountains hiking challenge, for example. “McLanahan’s mission statement talks about the value of staff and of course as an extension community is extremely important,” says Knowles.

Up in the air

McLanahan’s philosophy extends beyond the mine site and into logistics. Knowles cites the example of a mining company recognised for its predictive maintenance planning that required the quick delivery of new oversize bespoke drive components. McLanahan was asked to assist with an assessment of failure potential on the drive components, which showed minor defects from X-ray analysis. In order to quickly turn around replacements for the client,

INNOVATION

with no readily replacement parts during a difficult period, McLanahan decided to turn to a Chinese supplier. “Since it could have been urgent, [the client’s] aim was to ensure they had replaceable spares on site to prevent what could have been a significant impact on their production,” Knowles says. McLanahan sourced a wide bodied heavy lift transport aircraft — famously among the world’s largest and heaviest planes — to fly into Shanghai, collect two of the drive tyres (which had a diameter of over four metres each) and then fly to Australia in time for collection by the company. The logistics of the transportation required considerable effort, not just in terms of clearances, but in getting lifting gear and cranes to load and unload the plane. “They had the material available and they had facilities and people available over that period to manufacture {the tyres] in a short time, and have one of the few facilities that could actually machine a tyre of this diameter in one piece,” Knowles explains.

The mother of invention

McLanahan has grown significantly in Australia over the last decade. It delivered four of Australia’s largest relocatable coal feeder breakers to Energy Australia’s Yallourn brown coal mine in the Latrobe Valley in Victoria by 2006. The Thiess-operated site is the

nation’s second largest open cut mine. In 2010, McLanahan reached a milestone in Western Australia when it installed two of the largest hydraulically-driven iron ore scrubbers in the Pilbara, a job so large it necessitated the development of new facilities in the region. It was during the mining downturn, however, when McLanahan firmly entrenched its reputation for building upon existing equipment with unique solutions as more customers began the process of “sweating their assets”, as Knowles says. “During the mining downturn, our customers turned their focus to maximising availability and reducing overall operating costs,” he says. “Many customers have asked for specialised designs to fit in a specific space or to deal with unique ore properties. “Other customers have asked us how to increase operating time between maintenance days or to half the time to provide access and parts replacement.” McLanahan’s work at Thiess’s Lake Vermont open cut coal mine outside of Dysart, Queensland, is the prime example of a project that put this philosophy into practise. It was on this project that McLanahan earned its nomination for a 2018 Queensland Mining Award. Thiess had experienced issues with its feeder breaker becoming blocked by large lumps of material, causing unwanted downtime. It found rectifying this process was

MCLANAHAN’S NEW FACILITY IN CAMERON PARK, NSW.

AS WE GROW OUR BUSINESS AND ENDEAVOUR TO DELIVER MORE SYSTEMS, EQUIPMENT AND SERVICES TO THE GLOBAL MINING COMMUNITY WE NEED TO FUTURE PROOF OUR BUSINESS.” an often-laborious process involving turning off the machines, clearing the blockage with jackhammers, and rolling the crusher out for cleaning before rolling it back into place to continue operation. McLanahan’s engineers countered this problem by designing a heavy duty chain feeder with a mechanical lid at the discharge end of the crusher. This meant that if there was a blockage the Thiess control and panel operators could stop the feeder automatically, open the lid and have a robotic breaker break up the blockage. “In the period during the downturn, when people were really sweating their assets, we’d been asked to replace a number of those rotary coal

MCLANAHAN INTRODUCED DDC SIZERS AT NEW HOPE’S NEW ACLAND SITE TO GREAT EFFECT.

AUSTRALIANMINING

NOVEMBER 2018

breaker barrels to fit on the same drive systems and the same bases and also to meet up with existing chute work and screens,” says Knowles. “Those were all customisations that we were happy to do to be able to replace those ageing rotary coal breakers yet meet the same footprint and often improve the separation of coal and rock.” Knowles says McLanahan predicts an increasing push for automation and intelligent control in mining, two areas that are “really captivating the imagination of most larger global mining operations”. McLanahan also brought big gains (and reduced maintenance costs) to New Hope Group’s New Acland coal mine with its secondary and tertiary direct drive crusher (DDC) sizers. The switch to McLanahan’s equipment allowed the mine’s wash plants to run for 8000 hours a year. McLanahan built on these successes by earlier this year introducing wheel-mounted mini direct drive crushers (Mini DDC Sizers) capable of fine particle separation down to 3-4mm. “We did see a change and we had to adapt to that and make sure we were more service orientated — we were holding more spare parts ourselves rather than customers,” Knowles says. “Luckily for us because we have our own local engineering people we were able to customise some solutions and provide some service around optimising equipment.” With increasing realisation of this technological paradigm shift towards data capture technologies, artificial intelligence and geolocation technology, McLanahan continues to work with its partners to ensure systems offer increasingly comprehensive plug-and-play monitoring options. AM

INNOVATION

TRACKING THE TRENDS

THE CHANGING SKILLSETS OF MINING BOARDS MINING COMPANIES HAVE REALISED THEIR BOARDS MUST CONTAIN A NEW RANGE OF SKILLS TO SUPPORT WHERE THE INDUSTRY IS HEADING. BEN CREAGH WRITES.

BOARD MEMBERS MUST UNDERSTAND TECHNOLOGY’S IMPACT ON MINING.

ompany boardrooms have followed the broader mining industry trend by transforming into diverse environments. Mining is rapidly transitioning into the future by embracing the power of digitisation and innovation. It has responded by attracting workers with different skillsets than the past, with growing focus on technology and data management. The industry is also re-establishing its image in the face of more scrutiny than ever from governments, local communities and investors, creating the need for new ways of collaboration to position mining for the next generation. As Deloitte’s Tracking the Trends report explains, these drivers and more make it clear that companies need to make substantive cultural shifts. At an operational level, mining in Australia has set a strong pace with this transformation by

IT HAS BEEN AMPLIFIED FOR THE MINING SECTOR BECAUSE OF THE EXTENT OF CHANGE WE ARE GOING THROUGH.” introducing digital technologies and developing more diverse and inclusive workforces. This has led to a transformation at a board level to support the move in this direction, something most companies have responded to by reshaping their front office. Fortescue Metals Group perhaps demonstrates the transformation at a board level better than most. The iron ore miner has been a standard setter in the past two years for establishing diversity on its board on a number of levels, most visibly from a gender perspective. It was only a few years ago that Fortescue had an all-male board; now, more than half of its directors are female. This transformation has included AUSTRALIANMINING

some of the company’s most senior positions. Experienced Australian director, Elizabeth Gaines, started as Fortescue’s first female chief executive officer in February. Gender is, however, just one of the visible aspects that make up a diverse board. Deloitte also suggests blending in other visible aspects like race, age and physical ability. Deloitte Australia national mining leader Ian Sanders says these attributes create the most important requirement for a modern-day mining board – diversity of thought. “Normal board diversity principles around gender balance and geographical balance have become a standard expectation – it is ‘ticket to play’ stuff,” Sanders tells Australian Mining.

NOVEMBER 2018

“It is more about having the thoughts that are going to be needed to challenge management in critical conversations and to challenge management in how they are executing the organisational strategy that is going to be important.” Sanders says having diversity of thought on boards allows a mining company to effectively navigate an industry in rapid change. He believes other industries introduced this approach to the composition of their boards long before mining, providing an example to follow. However, the transition in mining is moving much quicker than it did in those industries. “It has been amplified for the mining sector because of the extent of change we are going through,” Sander says. The rising expectations of company stakeholders in the aftermath of the mining downturn has been a key instigator of the shake-up. As has the continued influence of digital technology on the industry and making mining an attractive career choice for future generations. Sanders says company directors must now be able to contribute in areas like corporate strategy, technology, workforce management and emerging risks. “It is the extent to which technology and our future of work, the workforce and the workplace will now influence the composition of boards,” Sanders says. “That means it will not only require a good background in technology, but also a good background in operational technology and how we use data to drive the insights. “Board members must then be across the area of social licence and what that means to the image of mining. How they deal with that from their previous experiences in other industries provides that real diversity of thought.” Deloitte advises mining companies to target board members with experience in other industries to secure the diversity of thought required for these areas.

TRACKING THE TRENDS

If this diversity is not established, Deloitte continues, board members can potentially complicate issues because of their limited ability to uncover outside views or challenge habitual thought processes. Fortescue has also ticked the box in this regard. Gaines, for example, has experience in a number of industry sectors, including resources, construction and infrastructure, financial services, travel and hospitality.

The company even has two Olympic gold medallists – Sebastian Coe and Jennifer Morris – on its board (while likely not an intentional focus) representing the sports industry. Sanders believes a transformation like this has become an imminent requirement. “It is not only important as we move into the next two to three years, but as we are here today,” he concludes.

Deloitte’s leading strategies for realigning mining boards: Create a vision for transformation

Before corporate boards can be properly constituted to support the transformation, the management team must first articulate a clear vision. The aim is to then realign the board’s skillsets, committees, and processes to ensure it is properly composed to achieve the visions for transformation.

Look for a broader set of attributes

MINING COMPANIES ARE SELECTING BOARD MEMBERS WITH DIVERSE BACKGROUNDS.

While board members are frequently selected based on their functional industry experience, companies can benefit by broadening the attributes they seek out, with the aim of attracting directors with more varied demographic backgrounds and wider bases of knowledge.

Be creative

Most boards seek directors who are current or retired C–suite mining officers, which can make for a small pool of female candidates. It’s further limited because women with boardroom experience are often oversubscribed and don’t have time to serve on additional boards.

AUSTRALIANMINING

NOVEMBER 2018

Boards should look beyond mining to industries already advanced in this transformation to overcome these challenges. The adoption of a policy to increase board diversity is also important.

Invest in board training

Board members must walk a fine line between fostering a collaborative environment with senior executives while still challenging management by asking hard questions. To help them find this balance, it can be useful to ensure that board members understand corporate governance best practices both within and beyond the mining sector.

Review board refreshment policies

To ensure they are capable of overseeing evolving strategies and risks, well–run boards typically adopt an ongoing approach to refreshment. This means assessing the board’s composition; considering the average and range of tenure; reviewing the board’s size and committee structure; and ensuring the board has access to appropriate skills, expertise, experience, and diverse representation. AM

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THE EVOLUTION OF ASSET PERFORMANCE MANAGEMENT AVEVA’S PHIL CIEZAK TALKS WITH AUSTRALIAN MINING ABOUT WHAT THE EVOLUTION OF ASSET PERFORMANCE MANAGEMENT MEANS FOR MINING.

A AVEVA’S PHIL CIEZAK BELIEVES APM 4.0 COULD BRING BIG CHANGES.

ustralian Mining: There are several buzz phrases in today’s industrial environment and mining companies are no exception. We all hear things like digital transformation and Industry 4.0 all day long, but there is one phrase that often has miners confused: smart manufacturing. What exactly does smart manufacturing mean to a mining company? Phil Ciezak: Thanks. Yes, it’s true. In my opinion, these phrases are often overused, or used out of context, especially during board meetings. Look, smart manufacturing’ was

initially conceived to advance discrete manufacturing. While auto, electronic, aviation, and similar industries produce smart connected products made from bills of materials (BOMs), the mining, metals and minerals industries are more concerned with transforming their mineral reserves and resources into saleable products, so really the focus of smart manufacturing in a mining context is the all about the process itself, perhaps even moreso than the final product.

AM: I see… So, things like optimising the mining value chain and its critical assets, correct?

PC: Exactly. One of the big pain

TECHNOLOGY HAS CHANGED HOW MINING COMPANIES IMPROVE ASSET PERFORMANCE.

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NOVEMBER 2018

points that AVEVA sees across the mining industry at present is centred around asset performance management, APM for short. So, in a mining context, Industry 4.0 actually translates to APM 4.0, which is a big step forward from APM 3.0. Let me explain, if we take a step back, APM 1.0 was all about paper-based systems and processes; then APM 2.0 added transactional systems, computerised maintenance management systems (CMMS) and other time-based systems; then APM 3.0 brought about the instrumentation of assets and the use of real-time data and that’s when condition-based maintenance was born. But APM 4.0 goes far beyond that. It introduces machine

PRODUCTIVITY

HIVE OF OPERATIONAL ACTIVITY TAKES PLACE IN THE CONTROL ROOM.

learning, artificial intelligence, and a combination of AR/VR and IIoT (Industrial Internet of Things) devices to deliver a prescriptive maintenance plan that analyses different asset and market scenarios and recommend the best way to move forward without under-maintaining, or over-maintaining critical assets.

OUR ADVICE IS TO FIND A STRONG TECHNOLOGY PARTNER. LOOK FOR THOSE THAT CAN BRING BEST PRACTICE DOMAIN EXPERTISE AND COMBINE THIS WITH A FOCUSSED APPROACH TO PLAN AND SHAPE SUCH A TRANSFORMATION.”

AM: Very interesting. And the digital twin is another buzz phrase out there. How does that fit into the APM concept?

opportunities, such as reconciling actual ore body concentration against geotechnical models, understanding operator impact of productivity and equipment operating costs to drive higher profitability, modifying block plans to facilitate consistent margin as prices vary, reducing MRO spend by altering operating profiles, and improving safety through enhanced training. These opportunities then enable other broader enterprise goals such as reducing downtime and increasing reliability, improving the planned-tounplanned maintenance ratios, and reducing overall energy costs.

PC: A digital twin, in the APM 4.0 sense, is so much more than just a piece of equipment’s engineering design documents in electronic format. A true digital twin is a digital representation of an asset or a system of assets that starts with the original engineering design and carries forward to include the digital image of how a piece of equipment has been operated in the past, is currently operating, and most importantly, through simulation and modelling, will operate in the future.

AM: And what does a digital twin bring to the table? Why would a mining company want to implement a digital twin?

PC: A digital twin opens up a whole new set of immediate

AM: Why is APM a hot topic all of the sudden?

PC: It comes down to the rapid and great advances in two things: technology and cost. The ability to capture and analyse data has increased immensely in the last few

AUSTRALIANMINING

years, and the cost of doing it has decreased dramatically in parallel. Today, simple IIoT devices can collect information in amounts and speeds only imaginable in the past, while the cost of cloud and hybrid (on-premise + cloud) computing and big data analytics has reached a level in which it is now very affordable to run true APM 4.0 applications.

AM: With those technological advances available now, one could tell that APM 4.0 is not happening only in the mining sector, is that correct?

PC: That is true. It’s really happening across all industrial verticals. If you break down the features of critical equipment, you will see that features like vibration, noise, pressure, temperature, and so on, can be treated and analysed in a similar way regardless of the industry.

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At AVEVA, we’ve seen some very good results in terms of return on investment (ROI) at our customers. As soon as management understands the financial benefits of these type of applications, the approval process tends to be an easy one.

AM: Can you tell us some of the benefits that you’ve seen in your customers?

PC: It always depends on the type of assets, the industry, and the operational conditions, but we’ve seen up to 30 per cent improvement in asset utilisation, 25 per cent decrease in unplanned downtime, and 20 per cent more asset availability.

AM: It seems that a true digital transformation can deliver substantial benefits to mining companies. But how and where to start?

PC: Our advice is to find a strong technology partner. Look for those that can bring best practice domain expertise and combine this with a focussed approach to plan and shape such a transformation. A good strategy is one that spans across both the asset and operations lifecycle - the way to rapid and profitable digital revolution. AM

NATIONAL PLANT & EQUIPMENT DELIVER LIEBHERR R 996B EXCAVATOR TO FORTESCUE’S CHRISTMAS CREEK MINE National Group’s premier brand National Plant & Equipment (NPE), has delivered the first of their two new Liebherr R 996B Excavators to Fortescue Metals Group’s (Fortescue) Christmas Creek site. A global leader in the iron ore industry, Fortescue was the first to secure the rental on these world-class machines as part of the company’s continued commitment to improving productivity and efficiency across their operations. After arriving in Perth from Liebherr’s manufacturing facility in late June, the first excavator began a four-week pre-assembly by Liebherr. From there, the load was transported by National Heavy Haulage from Perth to Christmas Creek, at which point final assembly took place on site before being handed over to Fortescue to go to work in September. Making yet another timely acquisition was National Group’s CEO and Managing Director, Mark Ackroyd, who says “the mining industry is in a really good place at the moment. It is continuing to go from

strength to strength, therefore bringing these excavators down under was a logical choice”. The Liebherr R 996B is renowned as an outstanding piece of equipment all over the world with the ability to achieve the most challenging targets in the most demanding conditions. The machine is equipped with two V16 Cummins engines specifically designed to withstand extreme environments and to minimise downtime. Mr. Ackroyd visited the Christmas Creek operation last week and was buoyed by the long-term partnership with Fortescue saying “it’s no secret that business is built on great relationships, so to continue our valued partnership with the team at Fortescue is something that is very important to us”. NPE’s already large fleet is about to get even bigger, with confirmation of new equipment arriving in the country every month. For the latest news go to www.nationalplant.com.au

WORKFORCE MANAGEMENT

KOMATSU CAREERS FOCUS ON THE FUTURE OF MINING THE EQUIPMENT MANUFACTURER WANTS TO MAKE THE COMPANY AND MINING INDUSTRY AN ATTRACTIVE CAREER CHOICE FOR A NEXT ERA OF WORKERS. AUSTRALIAN MINING WRITES.

ining, construction and utilities company Komatsu has launched its biggest ever recruitment drive to employ technicians across Australia, New Zealand and New Caledonia. The highly-structured campaign, which Komatsu believes is the most targeted ever in the industry, intends to identify technicians who want to be part of the machinery sector and take advantage of global opportunities. Komatsu is conducting the campaign in regional areas to overcome industry negatives of family dislocation and concerns about job longevity, which are traditionally associated with fly-in, fly-out (FIFO) operations. Suitably-qualified recruits will be offered careers close to their homes in an effort to achieve a satisfying worklife balance. The campaign comes on the back of a rapid upturn in mining, utilities and construction after a period in which the industries had been left with a skills shortage, especially amongst the next generation of technicians. Komatsu has identified related industries such as the military, marine and aeronautics, as well as the passenger vehicle and light and heavy commercial vehicle sectors, as catchment areas for potential candidates. The OEM aims to create an inclusive and diverse workforce that will collectively work towards developing new and innovative ideas that sustain the company’s future. Its GPS-based Komtrax system, Smartconstruction programs and aspects of its Information Communications Technology (ICT) protocols are examples of innovation that have achieved industryleading standards. Komatsu executive general manager people and strategy, Colin Shaw, says the days of a machinery technician being reliant on a spanner and mechanical have passed the

KOMATSU WANTS TO BE POSITIONED AS AN EMPLOYER OF CHOICE WITH THE CAMPAIGN.

MOBILE TECHNOLOGY IS THE NEW TOOL OF CHOICE FOR TROUBLE SHOOTING DIAGNOSIS AND IMPROVING THE PRODUCTIVITY OF OUR INTELLIGENT MACHINES.” industry by for a more innovative technology future. “Mobile technology is the new tool of choice for trouble shooting diagnosis and improving the productivity of our intelligent machines,” Shaw says. Komatsu also plans to increase the number of females in its workforce as part of a diversity and business growth strategy. The company runs an in-house training academy spanning a multitude of applications, including high technology machinery and AUSTRALIANMINING

business programs. Shaw says part of the recruitment drive is based on providing applicants with upskilling opportunities which can turn into life-ling careers. “Skills gained in the Komatsu system are valued in the open market and are transferable to other occupations, although it is our intention not to lose people we’ve trained,” Shaw says. Komatsu aims to maintain its status as an employer of choice throughout the campaign, with the new recruits

NOVEMBER 2018

set to join more than 3000 people already working for the company. Internal polling at the company found that the company tests highly as an employer of choice amongst its current employees and those seeking to join. “Family values and a culture of inclusion have become a hallmark of Komatsu employment,“ Shaw adds. Komatsu’s initial recruits from the campaign have been both successful and unusual so far. Qualified jeweller Alex HenleyBaker, 25, has made a complete career switch to become a first-year electrical apprentice at Komatsu. “Electrical engineering has become the future of all industry,” HenleyBaker says. “A Komatsu qualification allows me to go anywhere in the world, most likely with the same company.” AM

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DRILL AND BLAST

ENGINEERING IDEAS BOART LONGYEAR’S GLOBAL ENGINEERING AND DRILLING SERVICES TEAMS ARE UNIQUELY INTERTWINED. AUSTRALIAN MINING FINDS OUT WHAT THE COMPANY’S APPROACH BRINGS TO DRILLING INNOVATION.

RIGOROUS TESTING IN THE FIELD HAS LED TO MORE SOPHISTICATED CONTROLS AND ENHANCED DRILLER SAFETY.

ith a team of engineers located throughout the world working closely with inhouse drilling teams, Boart Longyear is able to develop products and put them through rigorous testing in both the lab and the field. It is a combination that affords the company certain advantages, according to Shayne Drivdahl, Boart Longyear vice president, global engineering. “The collaboration between members of the global engineering team and Boart Longyear’s drillers elevates the performance of both Boart Longyear Drilling Products and Boart Longyear Drilling Services,” he explains. This collaboration entails the testing of new technologies during contract drilling exploration and production drilling, providing tangible results that are shared across multiple regions in which the company operates, including Australia (Asia Pacific), Europe, Africa and the Americas. Boart Longyear engineers maintain a global footprint and

have produced several drilling innovations in recent years using these techniques. Examples range from smaller parts, such as drill bits, through to major engineering projects involving complex machinery. One example of a change that resulted from the upgrade of small parts is a project Boart Longyear worked on with AngloGold Ashanti at the Yilgarn Craton in Western Australia’s Laverton district. Through the development of chemically bonded diamond tip drill bits (called Longyear Bits), the company saw a 23 per cent increase in metres drilled per hour. Drill bits previously used at the project had resulted in performance of 22 centimetres per minute of penetration and an average 180-metre bit life over a threemonth period. Over the course of three months, the use of Longyear Green Bits saw penetration rates increase to an average of 26 centimetres per minute while bit life increased by 98 per cent to 356 metres per bit. Longyear Yellow and Red Bits were later used to drive further production increases at the site. AUSTRALIANMINING

Another technical project involved the integration of Boart Longyear’s in-house drill control interface (DCi) system for safer and more efficient operation of the company’s LM Series drill rigs at BHP’s Olympic Dam. The DCi was used in combination with LM75 drill rigs to drill a total of 5726.3 metres over a six-month period, an increase of 907.7 metres over the previous six months and a cost improvement of $US2.90 per metre drilled. These efficiency gains were made partially possible by the DCi’s integration of a programmable logic controllers (PLC) system, allowing supervisors

semi-autonomous freedom to arrange drilling parameters. This allowed drilling to continue during shift changeovers and breaks, resulting in a 13.5 per cent increase to productivity. In similar fashion, Northern Star Resources brought Boart Longyear onboard for directional drilling of a paste fill hole at the Paulsens gold mine in Western Australia. Northern Star required a particularly large hole for this project of 310mm in diameter to accommodate a 203.2mm casing down the length of the hole. Usually this would involve the drilling of a preliminary pilot hole followed by time-consuming rotary drilling passes. Boart Longyear engineers decided to use a drill rig setup designed for water wells that could accommodate Northern Star’s large casing requirements. This example of thinking outside the box allowed the project to be completed in one pass as opposed to the usual two or three passes expected of a typical rotary setup. The engineers added additional mobility to the drill rig with the move to a semi-autonomous system, having previously been very slow to move. A third project saw Boart Longyear combine a surface coring drill rig and rod loader (LF160 and FL262 Freedom Loader) into a single entity. This solution implemented the same DCi control system that had seen success at Olympic Dam, and allows for simultaneous control of both the LF160 drill rig and FL262

THE DRILL CONTROL INTERFACE (DCI) OPERATES THE RIG AT A SAFE DISTANCE AND PROVIDES REAL-TIME FEEDBACK.

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DRILL AND BLAST

THIS PARTNERSHIP BETWEEN BOART LONGYEAR ENGINEERS AND DRILLING SERVICES BENEFITS EVERYONE IN THE INDUSTRY AS MANY OF THE SOLUTIONS DEVELOPED ARE ALSO CONSIDERED FOR COMMERCIALISATION.” rod handler. The FL262 is also compatible with Boart Longyear’s newer LF350e surface coring rig, the company’s deepest capacity coring drill, with the ability to dig to a depth of 3360 metres. All of these ambitious projects were made possible — or at least, far more manageable — through the solid communication and integration of several international teams. Boart Longyear uses an atypical research and development business model that combines professional drilling services with in-house drilling technology design as an original equipment manufacturer (OEM). Two divisions within the company, Boart Longyear Drilling Services and Boart Longyear Drilling Products, compound this approach with a relationship that sees the company’s engineers and drillers working symbiotically to the benefit of polish and optimisation of products. “This partnership between Boart

Longyear engineers and Drilling Services benefits everyone in the industry as many of the solutions developed are also considered for commercialisation,” says Drivdahl. Boart Longyear’s Drilling Services team tests equipment and passes on comments regarding technical issues or suggestions for improvements to engineers, who then research, design, and develop solutions in response. Solutions are also suggested by engineering on new technologies, sometimes for problems that the Drilling Services team may not be aware of. Engineered solutions are tested and tweaked by Boart Longyear manufacturing team and then implemented by Drilling Services. “Boart Longyear Drilling Services uses the highest quality, safest and most innovative equipment and tooling available, developed by Boart Longyear Drilling Products,” says Drivdahl.

BOART LONGYEAR ENGINEERS DESIGN AND DEVELOP SOLUTIONS IN CLOSE COLLABORATION WITH PRODUCTS AND SERVICE TEAMS.

Boart Longyear engineers hold a wide variety of responsibilities. Some are focused on safety solutions, while others focus on product commercialisation in tandem with the productivity-focused Drilling Products division. The Drilling Services and Drilling Products engineers both report to the vice president of engineering, so they work very closely – sometimes in the same building. There are engineers in

different regions as well as engineers dedicated to different specialties so that subject matter experts and synergies can be leveraged across divisions for maximum potential. “As a result of the unique Boart Longyear business model and the collaboration with Drilling Services, Drilling Products customers know they’re using thoroughly tested equipment and tooling,” concludes Drivdahl. AM

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AUSTMINE’S PERTH INNOVATION ROADSHOW: FIVE KEY THEMES THE ORGANISATION’S LATEST MINING INNOVATION ROADSHOW IN WESTERN AUSTRALIA REVEALED A NUMBER OF INITIATIVES FOR THE FUTURE OF THE MINING AND METS SECTORS.

ustmine held its Mining Innovation Roadshow in Perth during September. The day featured presentations from industry leaders and collaborative discussion on prevalent issues to the future of our industry, including cultural change, digital transformation and re-shaping business models and partnerships. There were five key themes that dominated conversations on mining innovation during the day.

they only play one part of innovation. Innovation is also about the business models we utilise and behavioral changes we can make as leaders in our organisations. Having a good management process and structure to implement innovation helps to change people’s ways of thinking and engage the organisation from the top down, bringing your people along for the journey. Changing people is the hardest thing to do and the technology will only work when people embrace it.

Innovation is not just about technology

The workforce is changing

There is a growing influence of drones, autonomous machines, the industrial Internet of Things (IoT) and other advanced technologies impacting the mining space, but

The impending skills gap in the mining industry has been a hot topic over the last 12 months and this was also the case at the roadshow. Leadership and management in our industry are approaching

THERE IS A GROWING INFLUENCE OF DRONES, AUTONOMOUS MACHINES, THE INDUSTRIAL INTERNET OF THINGS (IOT) AND OTHER ADVANCED TECHNOLOGIES IMPACTING THE MINING SPACE, BUT THEY ONLY PLAY ONE PART OF INNOVATION.”

retirement and we must get the knowledge out of their heads and into technology to be utilised by our businesses. Individuals leaving the workforce are being replaced by the next generation who have grown up in a digital world and are used to technology and the significant benefits we can derive from it. We must shift our organisations to digital as well, creating an

environment that is familiar for the next generation and where we can harness their skills for business improvement.

Failure is an option

As businesses and as individuals we do not like to fail. Failure is often seen as something that is negative, that we should be ashamed of or afraid of. Our thinking around failure must change to adopting an approach where failure is part of the process and is a means to an end where we can draw on our experience, investigate why we failed and utilise this knowledge to create success in the future. The mining industry is still widely risk averse and failure is seen negatively, while in many other industries companies are adopting a fast fail method to strive for greater results. As Barrick Gold chief innovation officer Michelle Ash stated in her presentation, “One out of 10 things we try will be successful. We need to interrogate those 10 so that the successful approach will show itself.”

Transforming how we work together

Collaboration and business relationships will be key to successfully adopting innovation and embracing change in the mining industry. Relationships between miners and METS have typically been transactional rather than strategic, while collaboration between mining companies has been a rarity. Many of us face the same

THE EVENT SAW A GOOD TURNOUT ACROSS SEVERAL SECTORS OF THE MINING INDUSTRY.

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challenges, such as digital disruption and community expectations, so just how much more successful can we be by tackling these together or by sharing our learnings?

CHRISTINE GIBBS-STEWART, AUSTMINE CEO DELIVERS AN ADDRESS.

Disruption is here

Many of our greatest challenges are still thought of as future issues, but disruption to our industry is well and truly here. This is coming from a range of sources, including digital technologies, social licence to operate, consumer expectations and new entrants to the mining industry. We must increase our ability to adapt to change to ensure we stay successful. An example of this disruption is Apple committing to and making steps towards their policy to ‘stop mining the earth altogether.’ Just think about how challenging this could be for our industry if they are successful and if other powerful corporations adopt that approach. Austmine will continue the innovation conversation with a forum in Singapore on December 5, along with many other events around Australia coming up. For more information contact Sheldon.varcoe@austmine.com.au and visit www.austmine.com.au AM

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INDUSTRY COMMENT

THE BEST OF THE METS METS IGNITED HOSTED A STRONG LINE-UP OF WORKSHOPS AT ITS METS MONDAY FORUM HELD IN OCTOBER. AUSTRALIAN MINING FINDS OUT MORE.

s 2018 begins to wrap up, it’s fair to say it’s been a landmark year for METS Ignited. The Australian Governmentfunded industry growth centre for mining equipment, technology and services (METS) has seen many accomplishments. The highlights include founding a national scale-up accelerator for smallto-medium enterprises (SMEs) in Queensland, built on the strength of its pilot accelerator program Igniting METS in 2017. It established the inaugural METStech Passport program, which saw three Australian mining equipment companies — Minnovare, Conveyor Products and Solutions and Matrix Metals — embark on a two-week immersive program in association with the Australian Trade and Investment Commission and Chilean Open Mining Innovation Program, Expande. It hosted a large round of matched funding in July to mining equipment, technology and services (METS) companies to the tune of $7.14 million. And, in one of the first studies of its type, it undertook a student survey in conjunction with the Minerals Council of Australia and AusIMM, to provide a quantitative and qualitative analysis of young people’s attitudes and perceptions of the Australian minerals sector.

“This is the first time a student survey has been undertaken to understand the perception of mining and work in the METS sector as a career choice,” says METS Ignited general manager education and leadership skills, Sarah Boucaut. “Given that one in 10 jobs in Australia are in the mining and METS industries, it helped us understand the perceptions, drivers and key influencers for students who are making their career choice. “Up until now, the narrative that had been used with young people to consider a career in the mining and METS industry has been driven through the perceptions of the employers, so it’s been very exciting to find out that 60 per cent of the students interviewed did not know the extent of jobs in the sector related to automation, machine learning and big data, for example.” METS Ignited brought its brand of mining equipment, technology and services sector expertise to Melbourne in October for its annual METS Monday forum, an event built in association with the International Mining and Resources Conference (IMARC), of which METS Ignited is a major supporter and Collaboration Partner. The workshops hosted at METS Monday, which preceded the start of IMARC, provided an opportunity for researchers, senior mining management and METS companies to

METS MONDAY SEES CLOSE COLLABORATION ACROSS VARIOUS MINING SECTORS.

AUSTRALIANMINING

METS IGNITED CEO RIC GROS.

come together for open and integrated debate at thought leadership sessions. “We saw an opportunity last year to initiate a program of workshops the day before IMARC since the industry was coming from far and wide to attend,” explains Boucaut. “Having the workshops the day before allowed participants to have more detailed discussions on some of the key opportunities being addressed by the industry at present.” METS Monday hosted three workshops this year, entitled ‘Accelerated Commercialisation’, ‘The Digital Shift’ and ‘Optimised Mine Operations’. The first workshop focused on the different ways businesses can increase the rate of getting a product or service to market, and included input from industry members financial support channels. It also featured speakers from the Newcastle Institute of Energy and Resources (NIER), part of the University of Newcastle. According to Boucaut, NIER works closely with METS companies to look at developing technologies and services into a commercially viable product. “Often companies will have a great product idea but they won’t have the resources to be able to test, validate and then model that particular

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idea or technology because they’re busy running their businesses,” she explains. “In partnering with a research institute they are able to accelerate the commercialisation of what has been an idea in the back of their mind for some time.” The second discussion, The Digital Shift, focused on the opportunities presented by digital disruption and how companies have seen success in pivoting their businesses to meet these demands during a time of great technological change for the industry. “Every METS business is developing or implementing their business plan to leverage the benefits of Industry 4.0,” says Boucaut. The third workshop, Optimised Mine Operations, focused on sharing value drivers from the mining operations perspective. Mining company representatives attended this panel to talk about what optimisation meant for them, and what they see form their METS suppliers to achieve the optimal state. “In many cases, we have many companies who will address a particular point of benefit in the overall value chain, but have not had an integrated solution; this workshop explored the drivers for an optimal operating state,” concludes Boucaut. AM

INDUSTRY COMMENT

GROUND CONTROL TAKES CENTRE STAGE

NEW GROUND CONTROL SOLUTIONS WILL BE DISCUSSED AT AUSROCK.

RESOURCE PROFESSIONALS MEET IN SYDNEY TO DISCUSS NEW DEVELOPMENTS IN GROUND CONTROL, WHICH CONTRIBUTES TO ENSURING SAFER MINING OPERATIONS.

usIMM and UNSW Sydney will host the 4th Australasian Ground Control in Mining Conference (AusRock) when it returns to Sydney on November 28-30. The conference caters to all professionals who are interested in the investigation, design and implementation of stable excavations, which is at the core of mining operations and contributes to a safe work environment. Specifically, the conference will be of interest to mine site operators,

technical support professionals, geotechnical engineers, mining engineers, consultants and researchers in the field of mining geomechanics and ground control. The 2018 event follows on from earlier successful conferences covering aspects of geotechnical engineering relevant to the mining industry, sharing innovation and best practices. AusRock is supported by the International Society of Rock Mechanics (ISRM) and its affiliates in Australasia, the Australian Geomechanics Society, the New Zealand Geotechnical Society and

the Eastern Australia Ground Control Group. The conference provides a perfect platform for the latest updates and best practice being followed in Australasia and overseas. It will act as a vehicle of information exchange between the coal and metalliferous sectors of the industry, focusing on new technologies, developments, industry needs, solutions to mine site problems and practical case studies. Distinguished keynote speakers from across the world including the United States, South Africa, China,

Turkey and Australia will provide their expert insights into ground control issues facing hard rock and coal mining. Delegates can look forward to an exciting conference program that includes 50 papers covering all mining sectors, as well as two workshops taking place before the conference on November 27: the Pit Slope Management workshop and the Forecasting Instability in Underground Mines workshop. AM The full conference program and keynote speakers can be found on http://ausrock.ausimm.com

THE AUSTRALIAN MINING INDUSTRY TURNS TO RONSON www.ronsongears.com.au Telephone +61 3 9276 8900

AUSTRALIANMINING

NOVEMBER 2018

GOLD MINING

A NEW GLOBAL LEADER IN GOLD MINING EMERGES THE GOLD INDUSTRY IS SET FOR A SHAKE-UP AS TWO OF ITS BIGGEST NAMES PREPARE TO MERGE, CREATING THE WORLD’S LARGEST MINER OF THE PRECIOUS METAL. AUSTRALIAN MINING WRITES.

arrick Gold and Randgold Resources will not only become the world’s largest gold miner, but also the owner of the greatest number of Tier 1 assets. Canada’s Barrick agreed to acquire Jersey-headquartered Randgold in a deal that values the African-focused company at $US6.5 billion ($9 billion) in September. The share-for-share merger will create a new company – currently known as new Barrick – worth around $US18.3 billion. Barrick and Randgold own gold assets across five continents, including Barrick’s 50 per cent share in the Super Pit mine in the Goldfields, Western Australia. The merged company will hold five of the world’s top 10 Tier 1 gold assets and the lowest total cash cost among the sector’s leading operators. Combined, the companies will have 78 million ounces (Moz) of proven and probable gold reserves. Barrick chairman John Thornton believes the combination creates a new champion for value creation in the gold mining industry. He says it brings together the world’s largest collection of Tier 1 gold assets, with a proven management team that has consistently delivered among the best shareholder returns in

GOLD MINING WILL SOON HAVE A NEW GLOBAL POWER.

the gold sector over the past decade. “Our overriding measure of success will be the returns we generate and not the number of ounces we produce, balancing boldness and prudence to deliver consistent and growing returns to our fellow owners, a truly simple but radical and achievable concept,” Thornton says.

RANDGOLD’S TONGON OPERATION IN CÔTE D’IVOIRE, WEST AFRICA. IMAGE: RANDGOLD RESOURCES.

AUSTRALIANMINING

Thornton will become the executive chairman of the new Barrick Group following completion of the deal. Rangold chief executive officer Mark Bristow, who will become president and CEO of the merged entity, says the gold mining industry has been criticised for its short-term focus, undisciplined growth and poor returns on invested capital. “The merged company will be very different. Its goal will be to deliver sector leading returns, and in order to achieve this, we will need to take a very critical view of our asset base and how we run our business, and be prepared to make tough decisions,” Bristow says. “By employing a strategy similar to the one that proved very successful at Randgold, but on a larger scale, the New Barrick Group will leverage some of the world’s best mines and talent to create real value for all stakeholders.” Barrick shareholders will own about 66.6 per cent of the enlarged group following completion of the deal, with Randgold shareholders owning the

NOVEMBER 2018

remaining 33.4 per cent. The merger is expected to close in the first quarter of 2019 once all conditions have been met. How the merger impacts Barrick’s share in the Kalgoorlie Consolidated Gold Mines (KCGM) Super Pit joint venture remains unclear (at the time of writing). The Super Pit has, however, been described as a non-core asset by Bristow during a conference call with media after the merger was announced. Bristow pooled the Super Pit in the non-core category for the merged company, alongside Barrick’s Porgera gold-silver operation in Papua New Guinea. He says, “with a real care strategy you can bring these projects to account and they’ve both got very strong partners who have indicated their interest in being able to take over those assets.” Barrick has reportedly been looking for buyers of its share of the Super Pit as far back as 2015 when KCGM JV

GOLD MINING

partner and operator Newmont Mining reportedly expressed interest. It then reiterated the plan to offload its share in the Super Pit in a company report during 2016, saying a process to sell the asset would be launched. China’s Shandong Tyan Home, parent company of Australian gold producer Minjar Gold, was the next prospective buyer to emerge, but a deal never eventuated. The Super Pit remains one of the leading producers of gold in Australia despite seemingly being an asset Barrick is destined to divest. It produced 730,000oz in the 2018 financial year, just 3000oz behind Australia’s top producing mine during this period, Newmont’s Boddington operation. In May, a rock slip in the northeast wall of the Super Pit caused a severe interruption to its mining operations, leading the JV partners to reduce their gold production guidance. Despite the incident, the Super Pit increased production in the June quarter by 22,000oz to 192,000oz. Surbiton Associates director Sandra Close still expects the rock fall to

have a negative effect. “Super Pit’s increased production for the June quarter must have come from stockpiled material and perhaps from a reduction of gold in the processing circuit. But I doubt that this can continue,” Close says. According to Close, remedial work had not started on the area of the slip when she visited the Super Pit in August. While the Super Pit may be considered a non-core asset by the leaders of Barrick and Randgold, the portfolio of the new Barrick entity will be packed with world-class mines and projects. The new Barrick’s five Tier 1 mines will include: Cortez (Nevada, US); Goldstrike (Nevada, US); a 45 per cent share in Kibali (Democratic Republic of the Congo); an 80 per cent share in Loulo-Gounkoto (Mali); and 60 per cent of Pueblo Viejo (Dominican Republic). Its assets that have potential to become Tier 1 gold operations include Goldrush/Fourmile (Nevada, US) and a 75 per cent share in Turquoise Ridge (Nevada, US). AM

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WHAT DOES THE MERGER MEAN FOR THE SUPER PIT?

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NOVEMBER 2018

MATERIALS HANDLING

KEEPING CONVEYOR BELTS A WELL-OILED MACHINE WHEN THE LARGEST GOLD MINE IN THE DOMINICAN REPUBLIC HAD A BELT FOULING IN THE FIRST YEAR, MARTIN ENGINEERING RESOLVED THE PROBLEM. SHANE TIGHE TELLS VANESSA ZHOU ABOUT THE SOLUTION. compound in blades would only last for two to three months. Now, Martin devises urethane compound that can last up to a year. “We design for as low maintenance as possible,” reveals Tighe.

Absolutely no excuses

SERVICING THE LARGEST GOLD MINE IN THE DOMINICAN REPUBLIC, THE PUEBLO VIEJO DOMINICANA CORPORATION (PVDC).

hen the Dominican Republic’s newly reopened gold mine had excessive carryback problems on its conveyor systems, a revenue loss of $US250,000 ($344,000) was incurred by majority owner Barrick Gold. Within the first year of reopening the Pueblo Viejo mine, large amounts of carryback were observed at the belt’s discharge points. Not only did it cause belt fouling, costly equipment failures and man-hours, but it also resulted in unscheduled downtime. While mine production needs to and does carry on 365 days a year, considerable amount of precipitation – as much as 183cm – falls on the area between April and October. This moisture triggers cohesion in fine clay particulates that, in their interaction with load pressure, cause them to stick to the contact surface. Mike Lenart, mechanical general supervisor for the Pueblo Viejo Dominicana Corporation (PVDC), says, “The substance had the consistency of thick toothpaste, which was also able to adhere small chunks of aggregate to the belt, causing a destructive carryback that wreaked havoc on our pulleys and headers. It was a mess.” The overburden was too serious to

be tackled by the conveyor system’s existing belt cleaners. But this issue was resolved by Martin Engineering within two weeks.

Solution oriented

The existing belt scrapers were replaced with several heavyduty belt cleaning systems by Martin Engineering. Sixteen of each Martin QC1 Cleaner XHD primary cleaners and DT2H secondary cleaners were attached two to three feet behind the header at all 16 discharge points. Able to withstand extreme temperatures – from as low as -30° all the way to 70°C – the cleaners are devised to mitigate belt fouling and support constant production schedules. Further, the belt cleaners were equipped with low-adhesion urethane blades suited for sticky and tacky material. Shane Tighe, Martin Engineering territory sales manager for Florida, Georgia, Alabama and the Caribbean, says, “The correct blade is important – the urethane blade needs to be in the right size for the right application based on the head drum diameter. For example, a paper mill needs a harder durometer blade and a mine may need a softer durometer blade. “When a person has a problem with a belt cleaner that we haven’t installed, AUSTRALIANMINING

most of the time the cleaner was not installed right, it’s not squared off, or it’s not low enough on the head pulley, so the material sits on the blade and wears prematurely.” But what is different about Martin Engineering belt cleaners is their flexibility, says Tighe. “We make our own urethane, so we can design any type of compound for any particular application. Most of our competitors don’t have that flexibility.”

Martin Engineering is committed to conducting an on-site inspection – asking a lot of questions, looking at belt condition and taking photos - to ensure the whole system is working correctly. “We like to look at everything before we recommend something,” Tighe says. “There’s a lot of things you have to take into consideration when you’re looking at a belt conveyor. A lot of people think just putting in a belt cleaner is enough, but it’s not. The belt condition and how its spliced is very important.” According to Tighe, a conveyor system could be badly mistracking, mechanically spliced or having lagging issues. By then, there’s not much that any cleaners can do. Martin will, instead, recommend to service the whole system. Many Martin cleaners are positively well-suited to mechanically spliced, but properly installed, belts. “What I like to do is make sure

A LOT OF PEOPLE THINK THAT A CONVEYOR BELT IS A SIMPLE PIECE OF EQUIPMENT, BUT THERE’S A LOT OF NUANCE TO IT.” While carryback, dust and spillage are the most common problems in conveyor systems, Martin’s latest innovation in belt cleaning technology, CleanScrape, offers better cleaning with less maintenance. This technology is virtually maintenance-free equipment, and removes 85-95 per cent of stuck material on a good-condition belt due to its matrix of tungsten carbide scrapers. CleanScrape is a testament to Martin’s emphasis on product longevity. Ten years ago, urethane

NOVEMBER 2018

that customers get whatever we recommend and that it works,” says Tighe. “We have an ‘absolutely, positively, no excuses guarantee’ that warrants any solution and service that we provide. “That’s why I’ve been with Martin for 23 years – they stand by their products. “We are in 19 countries on six continents. Our experience comes from the field. If you look at any application in any type of industries over the past 70 years, you’ll probably find it in our library,” Tighe concludes. AM

INDUSTRY OUTLOOK

CREATING A SUSTAINABLE RESOURCES SECTOR FOR FUTURE GENERATIONS THE RESOURCES 2030 TASKFORCE RECOMMENDS STRENGTHENING AUSTRALIA’S RESOURCES AND ENERGY SECTOR INTERNALLY AND EXTERNALLY TO STAY AHEAD OF THE GAME. VANESSA ZHOU WRITES.

THE RESOURCES 2030 TASKFORCE. IMAGE: PETER CRICHTON

presented to it. Further, the Taskforce adds, “Technological disruption will increasingly challenge and change traditional business models. “The rise of social media, evolving community expectations and the rapid transit of information, and disinformation, will mean businesses and governments will have to work harder and smarter to earn the trust

NOT SINCE THE NATIONAL RESOURCES STATEMENT OF THE LATE 1990S HAS THE AUSTRALIAN GOVERNMENT RELEASED SUCH A STRONG VISION FOR THE TYPE OF COLLABORATION, REGULATORY REFORM AND INVESTMENT REQUIRED TO SUPPORT THE FUTURE PROSPERITY OF AUSTRALIA’S RESOURCES AND ENERGY INDUSTRY.”

AUSTRALIANMINING

of citizens and communities.” The report argues for conducive regulation across governments; substantial exploration and investment; development of a skilled mining force; and strong community engagement including engagement with Indigenous people, among others. The Taskforce emphasises, “This is not a fanciful ambition. A massive and long-term economic opportunity is on offer, and as one of the world’s great trading and resources nations, Australia has much to gain.” The Resources 2030 Taskforce is comprised of 10 industry experts, including former Queensland Minister for Natural Resources and Mines and chair of the Resources 2030 Taskforce Andrew Cripps; BHP president operations, minerals Australia, Mike Henry; Encounter Resources managing director Will

NOVEMBER 2018

he Resources 2030 Taskforce has presented 29 recommendations to the Minister for Resources and Northern Australia Matthew Canavan as a bi-partisan guide for the future of the industry. In what is described as “the most comprehensive plan for supporting the future of Australia’s resources and energy sector in almost 20 years” by the Australian Resources & Energy Group (AMMA), the Taskforce seeks to ensure the sector can achieve future prosperity and enhance its global competitiveness. Though accounting for $226 billion worth of exports every year – more than half of the sector’s estimated total exports for 201718 – the Taskforce believes that Australia’s resources alone do not guarantee success. In its final report titled, ‘Australian resources—providing prosperity for future generations’, the Taskforce suggests the country’s competitive business environments need to be continually updated and improved to enhance its global position. Amidst an unprecedented regional shift that is stimulated by the rise of China, India and emerging Asian economies, including Singapore, South Korea, Indonesia and Vietnam, Australia’s resources sector needs to be positioned to meet new opportunities and challenges

Robinson; Whitehaven Coal chief executive Paul Flynn; and University of Western Australia professor of international law Stephen Smith. The recommendations receive industry-wide support from the Minerals Council of Australia (MCA); the South Australian Chamber of Mines & Energy (SACOME); the New South Wales Minerals Council; and AMMA. Tara Diamond, AMMA director industry services, claims, “Not since the National Resources Statement of the late 1990s has the Australian Government released such a strong vision for the type of collaboration, regulatory reform and investment required to support the future prosperity of Australia’s resources and energy industry.” In support of the report, NSW Minerals Council calls on “all political parties and governments to

INDUSTRY OUTLOOK

support actions needed to meet the Taskforce ambition.” “While the mining sector expects robust regulation to the highest standards, it is clear that existing regulatory systems add significant cost for little or no environmental or social benefit,” NSW Minerals Council chief executive Stephen Galilee says.

The broad reform agenda include:

Australia: Best place to invest The sector’s capabilities and strengths need to be promoted to both domestic and international communities. This can be achieved by showcasing Australia’s world-class expertise in resources exploration and development, environmental management and engineering, technology and services. Additionally, Australia needs to be marketed as an attractive place to invest, with adequate information about opportunities to potential investors.

Strong base for innovation

Sector-wide innovation system and institutions should focus on coordinating and developing new knowledge, technologies, techniques

and human capabilities that address long-term, sector-wide challenges such as water, rehabilitation and pollutant management; exploration and development; and improving business productivity.

THE TASKFORCE PRODUCES 29 RECOMMENDATIONS FOR THE BETTERMENT OF AUSTRALIA’S RESOURCES SECTOR.

Stronger communities and regions

The industry needs to work more closely with communities to enable better planning and collaboration. Regional sustainability plans can strengthen community resilience, and provision of incentives and removal of disincentives can attract and retain workers.

Resources base for future gen The sector needs to work strategically to discover and develop new resources regions. Mechanism for co-funding can be developed to support new undercover mineral and petroleum deposits for future decades; strategic and coordinated approach across all levels of government can help promote the development of new resources regions; and opportunities need to be examined to leverage the battery and other mineral downstream industries.

Developed future workforce

A skilled workforce is the foundation and future of the industry, the Taskforce notes. This can be built on by developing a more coordinated national curriculum for earth sciences and resources industry qualifications at the tertiary and vocational levels. Existing employees should also be offered continuous upskilling and retraining to enable mobility.

Improved environmental performance

The Taskforce suggests the development of more efficient and effective environmental regulations by showcasing the sector’s commitment to high standards to build community support, and streamlining approvals at all government levels – federal, state and territory. AM

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RESEARCH & DEVELOPMENT

EVALUATION PROJECT INITIATES SCREEN DESIGN RE-THINK SCHENCK PROCESS AUSTRALIA HAS MADE A SIGNIFICANT BREAKTHROUGH IN THE DESIGN OF VIBRATING SCREENS THROUGH A RESEARCH AND DEVELOPMENT PROGRAM. AUSTRALIAN MINING EXPLAINS. CONVENTIONAL VIBRATING SCREEN DESIGN THINKING IS SET TO BE TURNED ON ITS HEAD.

onventional vibrating screen design thinking is set to be turned on its head following an extensive site-based research program by Schenck Process Australia (SPA) to test and monitor screen operation and performance. The program drew input from mineral processing facilities, design engineers and international stakeholders. External research organisations and specialist suppliers were also consulted. Its focus was on equipment construction and process performance, machine operability, maintenance access and site management environmental factors. The vibrating screen redesign program, to be managed by SPA’s Global Centre of Competence for Vibrating Equipment, at Beresfield, New South Wales, will use the research results as the starting point to critically analyse the existing vibrating screen design.

Along with improving machine reliability, increasing asset life and extending periods between maintenance shutdowns, the redesign program will also canvass the broader issues of design standards, advanced condition monitoring, remnant asset life prediction and whole-of-life asset cost. According to Schenck Process Australia research and development group project manager Karl Carter, design standards, including understanding the operating environment, is the first stage of the program. Carter believes that a back-tobasics design philosophy will prove the best approach. “The site analysis program has given us some valuable data around load characteristics, screen loading and variations in particle size,” he says. “Individually these factors are not unique – most screen installations will experience operational variations – but they are not normally included as part of the design spectrum. Factors such as feed biasing, overloading, AUSTRALIANMINING

AT THE NEXT LEVEL, BY USING THE OPERATIONAL DATA AVAILABLE FROM THE EVALUATION PROJECT, WE CAN DESIGN AND DEVELOP A BETTER PRODUCT, WHICH WILL BENEFIT OUR CLIENT AND THE INDUSTRY.” operational and crash stops were quantified and became vital inputs into the re-design program.” Local environmental factors and feed variations will also be considered as part of the program. Carter says that BS7608, the design standard for fatigue analysis used by screen manufactures, will remain as the reference standard, however, extensive analysis and testing of components and techniques will be undertaken with the goal of extending machine performance and reliability. He adds that the range of inputs into the program has provided an excellent foundation for ongoing development of what could prove to be a breakthrough in screen design and management. The company sees the technology

NOVEMBER 2018

they are developing as a game changer for the international hard rock processing sector. Carter believes the opportunity to collaborate with mining companies in research projects is an important part of the evolution process of equipment and machinery and should be grasped with both hands. “Our customers have a need for efficient and reliable vibrating screens,” he says. “We have the screen and the technology and the proven history with the product to meet that need. “At the next level, by using the operational data available from the evaluation project, we can design and develop a better product, which will benefit our client and the industry.” AM

THE MINING INDUSTRY HAS MOVED TO A NEW PHASE FOLLOWING THE MINING BOOM, ONE WHERE PRODUCTIVITY, INNOVATION AND SAFETY HAVE EMERGED AS ITS KEY PRIORITIES

DRILL & BLAST DIGITAL MINING VOLUME 110/10 | NOVEMBER 2018

INDUSTRY OUTLOOK

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MINING EQUIPMENT

MAN ALL-WHEEL-DRIVE TRUCKS PRIORITISE SAFETY ON TRACKS WITH DRIVER FATIGUE MANAGEMENT PENSKE COMMERCIAL VEHICLES TELLS AUSTRALIAN MINING ABOUT HOW IT DOESN’T COMPROMISE ON CLASS-LEADING COMFORT BUT MAKES IT STANDARD ACROSS ALL ITS VEHICLES.

AN’s development of its allwheel drive (AWD) range is progressively driven by new technologies and innovation, as well as customer requirements. Its fit-for-purpose AWD range does not typify the introduction of a new product, but rather an ongoing evolution. From mining, drilling, to power and energy applications, MAN’s fit-for-purpose AWD vehicles have the ability to turn into motor homes, crane trucks and specialpurpose vehicles including drill rig applications. For example, one of the innovative features is MAN’s hill-climb brake that is designed to let the highpayload trucks stay put on an incline, while reducing the load on the parking brake and preventing potential collisions. It allows the trucks to stabilise through road undulations and corners. Sergio Carboni, national sales manager – MAN, Penske Commercial Vehicles, says there’s always something to overcome with any specialised product requirements. “MAN has always been renowned for working toward a better solution and overcoming those obstacles, including the most severe off-road requirements,” Carboni says. The versatility, robustness and reliability of the Germanmanufactured MAN AWD range respond to various environmental challenges. They maintain high performance in harsh conditions of

Australian mine sites – in terrains of mud, red dust and high or low gradient – as well as in snow and icy environments in other parts of the world. In the case of a lock-up, a truck driver can apply continuous braking using MAN’s anti-lock braking system (ABS) technology. The ABS is equipped with off-road logic, which improves the truck’s braking effect on soft, unpaved surfaces such as gravel, sand, mud and deep snow at a low speed. The MAN AWD range not only emphasises safety by producing a truck that is secure for both users and the ancillary equipment that go on the trucks, but also features that are integrated in the actual hardware. The vehicles are equipped with impact-absorbing deformable cab; in the case of a frontal collision, the cab will demount from its chassis, allowing it to move rearward up to 0.75 metres. This will absorb the energy and cause the cabin to stay intact despite a 100km/hr frontal impact. The MAN AWD range follows worldwide cab safety requirement ECE-R29, which has become a standard rating across all models of the MAN. They also comply with all of Australia’s environmental emission requirements, which are the Euro 5 standard (ADR80-03) with some of the vehicles already moving toward the Euro 6. A lot of the ergonomic European features have, therefore, become a standard in these trucks. They include climate control and air conditioning; programmable speed

WHAT MAN HAS DONE IS TRANSITION DRIVER COMFORT FROM WHAT WAS, IN THE PAST, THE DOMAIN OF PRESTIGE VEHICLES, TO NOW BEING THE DOMAIN OF COMMERCIAL VEHICLES.” AUSTRALIANMINING

MAN’S AWD TECHNOLOGY IS COMPLEMENTED WITH A BROAD RANGE OF SUSPENSION SYSTEMS.

limiter; Bluetooth connectivity; multiadjustable and heated driver’s seat with three-way lumbar support; multifunction steering wheel integrated with stereo; and sun-blinded door windows that prevent glares. “One of the MAN’s key safety requirements is to ensure that a driver can concentrate and maintain his focus on the road. What MAN has done is transition driver comfort from what was, in the past, the domain of prestige vehicles, to now being the domain of commercial vehicles,” Carboni says. The decibel level within the cab is kept to a minimum to maximise a driver’s comfort on the road – an important aspect in fatigue management when it comes to longdistance travels. Carboni says MAN has been widely considered the market leader for allwheel drive products for a long period of time in Australia. “In addition to the mining segment, we’ve also enjoyed segment growth in the AWD space

NOVEMBER 2018

throughout the rail, defence and essential services segments. “Penske continues to invest in our dealer network nationally ensuring customer support is not only available in major cities and regional locations, but also in remote areas. Through Penske’s parts distribution business, the company has the ability to ensure there will be an adequate supply of parts across the network. It strives to have continuous local stock to meet customers’ needs. “We don’t just sell the vehicles on a customer order basis,” Carboni says. “Through regular collaboration with our dealer network, there is ongoing stock order placement with the MAN factory to meet demand as they arise. “Penske’s commitment is to investing in the long-term supply chain for our clients, supporting them with localised stock.” To top it all off, driving and service training have been made available, so users can maximise their vehicles’ productivity and utilise them efficiently. AM

CRANES AND LIFTING EQUIPMENT

TAKING GLOBAL EXPERTISE TO UNDERGROUND MINING HOTSPOTS

EMERGENCY Refuge

AUSTRALIAN LIFTING AND RIGGING SPECIALIST A NOBLE & SON ORGANISED A ROADSHOW FOR UNDERGROUND HOISTING EXPERTS. AUSTRALIAN MINING WRITES.

Noble & Son (Nobles) brought together some of the world’s leading experts in underground mine hoisting during October. This opportunity, exclusive to underground mine owner-operators, shared innovations and proven technologies that are delivering advances in mine performance, productivity and safety. The roadshow, which began in Perth and took in Mt Isa and Roxby Downs before ending with a live national webinar from Adelaide, gave attendees the opportunity to learn more about and explore first hand the latest technologies setting international benchmarks. Nobles managing director Guy Roberts spoke with mining customers before the roadshow to understand their needs. “The large miners are now reaping the rewards from previous cost cutting and efficiency programs,” Roberts said. “Getting the maximum output from every underground hoist can increase profitability. We consulted with the experts from our global network of the industry’s leading suppliers and brought them together in this roadshow

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for them to demonstrate how it can be done.” Providing a global perspective on the impact of the underground mine’s hoist on business performance, the keynote speaker was Henry Schultheis, technical application manager underground mining, BridonBekaert, who flew in from Germany especially for the event. Other global content came from ECAM (South Africa) and Ingersoll Rand (United States) and was complemented by local market leaders, Reliance Hexham and Nobles from Australia. Focusing on uncovering the hidden value in underground mine hoists, the roadshow addressed the many issues and opportunities, such as reducing hoist cycle times to increase production; working towards a ‘zero idle capacity’ future; preventing, identifying and eliminating bottlenecks; and hoist modernisation to deliver bankable results. “This is the smart thinking that makes mine operators and owners enthusiastic,” according to Roberts. “Imagine a material increase in productivity arising from small changes to hoist operations. The upside could just be sitting there for the taking.” AM

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AUSTRALIANMINING

NOVEMBER 2018

MINERALS PROCESSING

AN ODE TO ODIN EWEN HOSIE FINDS OUT HOW BOSCH REXROTH’S PREDICTIVE MAINTENANCE MINING SOLUTION ODIN IS BRINGING A HUMAN TOUCH TO MACHINE DATA.

he 2001 merger between Robert Bosch and Mannesmann Rexroth was executed to create a technology leader in the hydraulics industry. The combined entity, Bosch Rexroth, has provided technology for various industries, including mining and manufacturing, spanning back to its origins in Germany in 1795. Bosch Rexroth is driving the next industrial revolution as both a lead operator and lead supplier of Industry 4.0 solutions. With a huge automation portfolio and an abundance of production experience within Bosch Rexroth’s manufacturing plants worldwide, it offers leading automation and manufacturing solutions – from single-piece to highvolume production. “With Industry 4.0 and the presence that Bosch has in that marketplace, Bosch Rexroth has been able to grow our understanding and position in the market through developing technologies that benefit customers in managing equipment and reliability of hydraulic systems — and other associated parts of

that system — with ease,” explains Rory Horrobin, Bosch Rexroth state manager, South Australia, Victoria. Chief among the company’s industrial and mining output is its Online Diagnostic Network (ODiN), a self-learning predictive maintenance software that uses analytical algorithms to provide a clear indication of machine health. The system integrates with Bosch Rexroth’s Hägglunds Drive Systems, which are designed for ease of communication between ODiN and the Internet of Things (IoT) gateway. It can be used across a wide variety of fixed plant mining machinery, including everything from conveyors and feeders to kilns and crushers. A series of sensors and machine feedback data is connected to a gateway device and securely uploaded to the cloud, which is used to produce a health index. This data includes factors such as vibration, temperature, force and analytical machine learning to produce a holistic overview of a machine’s health in both the short and long term.

“Optimised uptime of fixed plant is critical to be able to plan maintenance intervals for the longest possible period,” says Horrobin. “This provides a significant benefit to the customer and allows reduced maintenance costs because the system is not being overserviced. With fewer stoppages, we can then increase output through uptime.” The system has been installed across various mining operations following three years of research and development. A redeveloped coal processing site in Queensland used ODiN to identify the change in machine health and operating performance to detect a mechanical bearing failure on one of its apron feeders. Through learning behaviour, ODiN recognised the machine’s abnormal behaviour and alarmed the site to the issue. Such warnings are delivered either by email or through mobile and desktop applications. “It provided a fast and easy way to identify the issue and then further investigate the problem and solve the issue,” says Horrobin.

ODIN COLLECTS MACHINE DATA VIA AN IOT GATEWAY THAT THEN SENDS INFO TO THE CLOUD.

AUSTRALIANMINING

NOVEMBER 2018

OPTIMISED UPTIME OF FIXED PLANT IS CRITICAL TO BE ABLE TO PLAN MAINTENANCE INTERVALS FOR THE LONGEST POSSIBLE PERIOD.” “So not only does ODiN provide a clear and analytical way of looking at devices on the machine, it can also understand that there are other implications to the machine and provide error analysis as well.” Predictive maintenance technology is not new but a big part of ODiN’s USP lies in its service constituent. The data it collects from machines is via a connective IoT gateway that then moves it to the cloud for analysis by Bosch Rexroth service experts. This transpires in the form of regularly updated status reports from Bosch Rexroth technicians via the Rexroth service portal. Additionally, the system is designed so that once data has been uploaded to the cloud, updates occur in the background with minimal impact to users. These experts provide easily readable status reports and advise sites of the optimum times to schedule maintenance, maximising uptime and reducing unscheduled downtime. While onsite visits may still be required from time to time, remote condition monitoring still allows engineers to address issues more readily. “The systems have been fantastically received by mine sites,” says Horrobin. “As many competitors in the marketplace can collect data, we are the number one in this market for analytics software that provides a simple interface and a selflearning program to understand your machine and understand how the machine works. “With this interface it takes out the tedious task of understanding data.” AM

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