Skillings Mining Review December 2020 by CFX Network, LLC

2020 DECEMBER IN REVIEW

109/12

COVID-19 eLEARNING Covid-19 triggers mining industryâ&#x20AC;&#x2122;s use of eLearning

20 U.S. Miners Are Trying to Get Out of the Thermal Coal Business

Rockwell Automation releases DCS for plant operations

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AMERICAS

28 Don’t worry, the world is a long, long

GLOBAL

18 U.S. Steel eyes Keetac re-start

5 Covid crimps Caterpillar sales

19 Iron ore rises on China demand hopes,

8 S. Africa's mining industry calls chrome

but set for monthly losses

22 US bank to provide £19.3m in funding for UK’s TechMet

24 Komatsu Ltd sees AHS as a major focus to increase mining customer productivity in the Covid-19 era

26 Freeport does a balancing act as world's biggest gold mine grapples with covid19

36 Covid-19 triggers mining industry’s use of eLearning

38 Iron ore miners make hay while the

export tax ‘blunt instrument’

11 The evolution of remote mine professions

13 Kaz Minerals suspends operations at Kyrgyz

16 Emesent achieves ‘industry first’ flight with DJI drone

17 Miners speed up automation as covid19 impacts linger

20 U.S. Miners Are Trying to Get Out of the Thermal Coal Business

way from running out of gold

30 Search and USA Rare Earth are working on minerals development

32 South Africa’s mining industry weathered Covid-19

34 Mining cutback would hit Vancouver hardest

35 Dalian iron ore futures set for 6th monthly gain amid strong steel demand

STATISTICS

46 October 2020 crude steel production 46 Sustainable steel - Indicators 2020 and steel applications

sun shines 2020 ANNUAL INDEX : 39

EQUIPMENT

6 Nevada Copper says More funding needed for ramp-up

8 Rockwell Automation releases DCS for plant operations

14 New Jumbo and bolter use a similar system

31 Covid-19 hits drilling contractor's bottom line www.skillings.net | 3

DECEMBER 2020 VOL.109. NO.12 2020 DECEMBER IN REVIEW

109/12

COVID-19 eLEARNING Covid-19 triggers mining industryâ&#x20AC;&#x2122;s use of eLearning

20 U.S. Miners Are Trying to Get Out of the Thermal Coal Business

Rockwell Automation releases DCS for plant operations

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GLOBAL

Covid crimps Caterpillar sales Compared to $12.8 billion a year earlier, sales dropped 23 percent year-on-year to US$ 9.9 billion. Per-share profits more than halved to $1.22, with analysts predicting a profit of $1.12 per share on average.

he operating profit margin of Caterpillar dropped from 15.8 percent a year earlier to 10 percent. The quarterly results was "largely consistent" with forecasts, CEO Jim Umpleby said, and "good indicators in some sectors and geographies" inspired him. Sales fell 21% to $1.8 billion in the mineral industries

business, with segment profit down 46% yoy at $167 billion. In the current quarter, Caterpillar said it anticipated "less of a decrease" in end-user demand, with usual seasonality expected to influence revenue. By December, dealers are forecast to decrease inventory volumes by $700 million, to $2.5 billion for the full year, higher

than the $2 billion decrease projected earlier this year. Caterpillar said it had cash on its balance sheet of $9.3 billion, with gross assets available of $14 billion. The company's stock (NYSE: CAT) hit a 12-month peak at $171.26 last week but had pulled down to $157.91 by the close of business Tuesday. There's a market cap of $85.5 billion for Caterpillar. As a consequence of the lowered income, which was partially due to dealerships selling down inventory more than in the same quarter last year, net profit for the year dropped 51 percent to $985 million.

www.skillings.net | 5

EQUIPMENT

â&#x20AC;&#x201D; NEVADA COPPER SAYS â&#x20AC;&#x201D;

More funding needed for ramp-up Over the next four months, Nevada Copper (TSX: NCU) would require additional funds to complete its ramp-up of operations at the underground Pumpkin Hollow mine, the firm said on Tuesday.

evada Copper has decided to adjust its mine design due to geotechnical improvements stemming from definition testing in the Upper East South region, which now allows the business to limit the size of some early stops in a localized area where initial ramp-up ore is scheduled. This move is supposed to de-risk the project further, although in the near term, it will raise costs. The copper miner said that it is already in negotiations with its senior investor, KfW-IPEX Bank, and has received a third-party term sheet for an additional $20-$30 million credit line to finance its expanded cash requirements. Discussions with other alternative sources of financing are still underway, it said. The largest shareholder of Nevada Copper, Pala Investments Limited, has announced that

it will continue to provide financial help for the project until the end of the year when the company expects the funding to be completed.

The largest shareholder of Nevada Copper, Pala Investments Limited, has announced that it will continue to provide financial help for the project until the end of the year when the company expects the funding to be completed.

During the month of October, steelwork was finished in the main shaft, with work ongoing to complete the remaining loading pocket.

The output of processing plants continued to rise with a 10 percent improvement in recoveries in October from September. Over the same era, concentrate production rose 140 percent.

Nevada Copper said it plans to use the main shaft to pass resources, equipment and people by mid-November, allowing the eastern north vent shaft to be used

After the new operating report, shares of Nevada Copper plummeted 18.7 percent by midday Tuesday. The business has a C$96.7 million market capitalization.

In the meantime, Pumpkin Hollow's underground lateral production continues at its planned pace, with ore grades identified in ongoing development reconciling well with resource model grades, and hoisted ore development grades increasing with stope development as predicted, the company stated.

6 | SKILLINGS MINING REVIEW December 2020

primarily for the production of ore and waste movement, resulting in a planned rise in the pace of ore hoisting. Staged commissioning has already begun for the main shaft material handling device. The organization is checking the contact mechanism and the interaction of these parts to ensure that until the underground conveyor is mounted later in the quarter, the ramp-up will be accelerated.

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EQUIPMENT

GLOBAL

Rockwell Automation releases DCS for plant operations To optimize the lifecycle of plant activities by digitisation, Rockwell Automation has introduced the PlantPAx 5.0 distributed control system (DCS). This is RockWell Automation's new DCS which is capable of digitally transforming an enterprise by leveraging process functions that are native to the controller, improving the availability of compliance-driving system properties and using analytics. Through utilizing plant-wide and modular solutions aligned with digital transformation, Rockwell Automation is assured that this will extend plant operational lifecycles. "Jim Winter, global process director of Rockwell Auotmation, said We are pleased to introduce PlantPAx DCS 5.0 to our customers. New capabilities of the framework are stepchanges in supporting our clients reduce the total construction and commissioning costs. The functionality strengthens the overall initiative to align the organization with the process management layer. "We continue to find creative ways to add more benefit to end-users by reducing the system's lifecycle expense and lowering operating risks." By implementing PlantPAx 5.0.0, the total costs associated with a plant lifecycle are projected to be minimized. Footprint reduction; project continuity to establish control strategies that are applicable to all projects; better user interfaces with smooth workflows; strong cybersecurity requirements and processes for moving data from the DCS to analysis tools are areas that the current DCS enhances. Centered in Wisconsin, the United States, the 23,000 staff of Rockwell Automation support clients in over 100 nations. 8 | SKILLINGS MINING REVIEW December 2020

S. Africa's mining industry calls chrome export tax â&#x20AC;&#x2DC;blunt instrumentâ&#x20AC;&#x2122; JOHANNESBURG,-On Friday, South Africa's largest mining industry body opposed the government's plan for a chrome ore export tax to raise domestic ferrochrome producers, claiming a tax does not solve the core problem of electricity prices that are globally uncompetitive. Processing chrome ore to manufacture ferrochrome element in stainless steel is highly power-intensive, and the ferrochrome industry in South Africa has suffered because of inadequate energy and regular power cuts in the region. The provision of a cost-effective and reliable supply of energy is the essential component of productivity,' the Minerals Council said in a statement. Due to faults at its coal-fired power plants, Eskom has failed to satisfy demand for years and is frequently cited as the biggest drain on development in Africa's most developed country. Rising energy prices have forced 40 percent of South Africa's ferroalloy output potential to be closed or mothballed in the last decade, the Minerals Council said. The business body said, "Import taxes are usually a blunt weapon that has material unforeseen implications." Chrome SA, an organization supporting producers of chrome ore, came out against the planned tax on Thursday that would make it more costly for them to export their output. South Africa is the main chrome ore manufacturer in the world and a primary metal supplier to China. Global chrome rates will possibly be pushed up by a South African export levy, traders said.

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copper tubes in Greece. High quality in production is achieved through strict controls applied throughout the production process. With a consistent quality focus, the company implements an ISO 9001:2015 Certified Quality Management System and leverages high technologies and expert staff. As a result of the Group’s strategic investments in research & development, Halcor is recognized as one of the leading copper producers globally, setting new

standards in copper processing. The company maintains a consistent focus on quality and environmental protection and a strong commitment to the principles of sustainable development. In this context, all production facilities in the Group’s plants leverage advanced technologies to bring in the market innovative products that are energy efficient and environmentally friendly. For more information, please visit our website www.halcor.com www.skillings.net | 9

GLOBAL

The new norm of operating remotely from mine locations has been driven by Rio Tinto and Fortescue Metals Company. Secure to Work requires a deeper look at the metropolitan-based operations centres of each business. Technology is reinforcing the track record in knocking down human geographical obstacles, from the invention in vehicles and aircraft to today 's activity of mining operations without the participation of workers on site.

The evolution of remote mine professions A leading example of a organization that aims to welcome these technical developments is Rio Tinto. At its operations center in Brisbane, the organization consolidates all related shift data to a single point of mine management. The Albert Street centre offers the protection, development and quality aspects of the Queensland-based Weipa and Northern Territory-based Gove bauxite mines with 24/7 surveillance. Daniel van der Westhuizen, general manager of Rio Tinto integrated operations, says the team handles mine dispatch, tracking and control capabilities and complex port and grade scheduling for the Weipa and Gove bauxite mines. "Our operations center offers 24/7 service and supervision on all facets on protection, processing and efficiency at our remote bauxite mines," says Safe to Work. The power of the Brisbane Integrated Operations Centre (BIOC) would not prohibit heavy machinery from operating; it also optimizes the stockpiles and supply chain of the mines.

The BIOC presents advantages that go far beyond eliminating jobs from the face of the mine. According to van der Westhuizen, it also encourages flexible agreements that have proved to improve team involvement. In the BIOC, Rio Tinto integrates innovations such as exhaustion management devices , data analytics and automation programs, such as the removal of the need for manual visual examination. A completely automatic 'drone in a package' solution has been launched by the firm, and is made up of an industrial-grade drone that can autonomously deploy and land from a weather-proof base station. We are pursuing a trial and collaborating with the Civil Aviation Protection Authority (CASA) in the clearance phase to run the device remotely from the Brisbane Operations Center, "says van der Westhuizen."

In order to assist with stockpile tracking, preparation, grade management and publishing, the trial has shown the importance and precision of providing access to real-time stockpile tracking as well as access to post-processed databases such as high-resolution aerial photographs, 3D models and volumetric records.' "With protection at the center, we have been able to incorporate technology such as CCTV and drones that enable our teams securely and effectively achieve their job." The BIOC presents advantages that go far beyond eliminating jobs from the face of the mine. According to van der Westhuizen, it also encourages flexible agreements that have proved to improve team involvement. "We are willing to handle job and personal responsibilities easier," he notes. At present, the centre has 50 staff, half of which are female. Staggered change hours, task sharing plans and a number of work from home opportunities are versatile plans. On level one of the Fortescue center in Perth, the same impression is repeated. Fortescue Metals Group, an iron

GLOBAL

ore miner, has refurbished its expanded integrated operations center, known as the Fortescue Hive, which offers greater flexibility for employees. Across Fortescue's supply chain, there are 330 team members working together at the Fortescue Hive 24 hours a day , seven days a week. Elizabeth Gaines, chief executive of Fortescue, says their position in the Integrated Operations Center (IOC) means they no longer need to travel to the site on a regular basis. She adds that, with working arrangements of 25 percent, 50 percent and 75 percent of a full-time roster offered as flexible options across the team, the Cloudbreak mine control system leads the way. (This has) proved to be helpful to team members and Fortescue by helping to retain knowledge and experience of the team, "says Gaines." "The Hive has been built as an accessible space for all abilities and has thus created a flexible workplace that has fostered a culture of support and inclusion." The IOC is not that far removed from reality, although located remotely from the real actions of a mine site. It involves many team members who have worked on each of the company's mining sites in the Pilbara in planning , operations and mine control, bringing the IOC an invaluable perspective and real-world

An autonomous truck following precision-like tracks at BHP's Jimblebar mine in WA.

experience, Gaines continues. "There is a period of adaptation to remote operations because remote operations require different abilities, such as being able to think in a virtual world," she says.

quality at the right moment. The sales and marketing team's experiences and marketing intelligence can be communicated with the strategy and operations departments immediately.

"We train team members and support them as they learn a different way of working." The Fortescue Hive, enriched by port, rail, shipping and marketing teams, has embraced innovation and technology to bring together many traditionally sitebased teams.

"In order to bring value to our clients, partners and the larger world, this fully interconnected strategy helps us to focus on industry conditions," she says. The wellbeing of our team members is our top concern at Fortescue, and the implementation of creativity and technology has been important in our operations to accelerate more wellbeing enhancements.

According to Gaines, from preparation to shipment and selling, there is a deliberate flow of knowledge that helps the business to sell the correct tonnes of the correct

Rio Tintoâ&#x20AC;&#x2122;s Brisbane integrated operations centre (BIOC) looks after the companyâ&#x20AC;&#x2122;s remote bauxite operations. Credit: Rio Tinto.

12 | SKILLINGS MINING REVIEW December 2020

Working side by side in the Fortescue Hive, when our teams exchange knowledge effortlessly, facilitates cohesive planning around the organization. This underpins constant changes in efficiency of our supply chain, which is key to the secure functioning of a mine site. The Fortescue Hive 's presence should not mean that all its regional staff have migrated to Perth. A suburban staff of about 500 team members live in Port Hedland, amid Fortescue 's groundbreaking bid to become the first Western Australian operator to control a railway from outside the area in 2009.

Kaz Minerals suspends operations at Kyrgyz In the midst of post-election instability in the Central Asian republic, Kaz Minerals (LSE: KAZ) has halted production at its Bozymchak copper and gold mine in Kyrgyzstan.

n Tuesday, unidentified men demolished facilities at another gold deposit in the former Soviet republic and, according to Reuters, local media reported attacks and demonstrations at a few more mines. The outcomes of the weekend's parliamentary election were deemed void by the country's central election commission after mass demonstrations erupted in the capital Bishkek and other cities seeking the resignation of the proâ&#x20AC;&#x201D;President Sooronbay Jeenbekov of Russia.

of 4:05PM BST, Kaz 's portfolio was down 1.4 percent on the LSE. The business has a market capitalization of $3.18 billion. Centerra Gold (TSX: CG) has stated that, amid the political instability in the Kyrgyz Republic, operations at its Kumtor mine will proceed uninterrupted. The mine is situated in a small mountainous region some 430 km south-east of Bishkek, the national capital. Kumtor, which produced more than 12.6 million ounces of gold between 1997 and the end of 2019, is one of the largest gold mines in Central Asia owned by a Western corporation.

Supporters of the opposition occupied government offices overnight, rescued former President Almazbek Atambayev from detention, and called for a new referendum. Hundreds have been injured and one person has died. In the second half of 2014, Bozymchak started development. In 2019, at a copper grade of 0.82 percent, Kaz mined 1,081 kt of ore and processed 1 mt, yielding 7.3 kt of copper and 41 koz of gold. The mine is officially working as an open pit with an annual mineral production pace of up to 1 Mt. The estimated annual production of Bozymchak is projected to be 6 kt of copper cathode and 28 koz of gold bar over the lifetime of the mine. In an email to MINING.com, Kaz Minerals said that it is tracking the situation. As www.skillings.net | 13

EQUIPMENT

New Jumbo and bolter use a similar system MILWAUKEEâ&#x20AC;&#x201D;(BUSINESS WIRE)â&#x20AC;&#x201D;Komatsu is pleased to launch a new jumbo drill and bolter that utilizes a revolutionary common underground hard rock mining carrier and control device engineered to fulfill the needs of the industry for higher efficiency and flexibility thus helping lower capital costs. Our latest small-class ZJ21 jumbo drill and ZB21 bolter, built through comprehensive testing and cooperation with our customers, utilize a standard framework that enables operators to transform their system from a jumbo to a bolter, or vice versa. From the rear skirt to the outer boom frame, the platform provides 100 percent structural commonality between bolter and jumbo, allowing it a smooth conversion. The flexibility offered by the popular framework was designed to help mining operations understand job site productivity benefits and help minimize costs with the common components, service and maintenance. Furthermore, operator monitors are universal between the jumbo and the bolter, from a customer preparation and acceptance viewpoint, to support mining organizations. The ZJ21 jumbo drill is built to provide outstanding coverage, providing up to 66 square meters of face coverage on a tiny jumbo pad. When drilling somewhere on

Komatsuâ&#x20AC;&#x2122;s new jumbo drill (left) and bolter (right) utilize a common platform that allows operators to convert their machine from a jumbo to a bolter, and vice versa. (Photo: Business Wire)

the face, the special boom arrangement facilitates zero interaction with the operator's enclosure or the carrier or leveling jacks. The ZB21 bolter allows it easier for operators to bolt in either direction and can accommodate up to an 8-foot bolt head. Using our integrated screen handler and revolutionary chemical injection device, operators may execute 100 percent of the bolting period from inside the enclosure, allowing mining operations to move towards zero harm. "Our latest drilling and bolting platform was specially built to solve the challenging problems encountered by our underground hard rock customers," said Doug Eamer, director of Komatsu Underground Drilling. "The ZJ21 and ZB21 are only the first two of 14 new versions expected, so you can look forward to seeing more from us in the immediate future." Both the ZJ21 jumbo and the ZB21 bolter diesel variant are eligible for order right now with a battery option expected to be rolled out next year. Call a Komatsu dealer for more details or visit our website showcasing our newest hard rock mining equipment.

14 | SKILLINGS MINING REVIEW December 2020

FloLevel Technologies

GLOBAL

Emesent achieves â&#x20AC;&#x2DC;industry firstâ&#x20AC;&#x2122; flight with DJI drone In what it claims is a world first for the platform, Emesent has enabled DJI's M300 drone to fly autonomously underground.

he flights occurred on August 4 at the Mt Colin copper mine operated by Round Oak Minerals in Cloncurry, Queensland, and were accompanied on August 13 by equally active flights at another underground mine in north Queensland, Emesent said.

To add advanced autonomy to the newly introduced DJI Matrice 300 RTK (M300), the Hovermap LiDAR mapping and autonomy payload from Emesent was used. Coupling Hovermap with the M300 enables users to enable the drone to travel into GPS-denied or inaccessible areas autonomously and securely, such as tightly packed factories, bridge undersides, and underground mines, Emesent says. Ashley Tibbles, Mt Colin Mine Surveyor, said Emesent 's technologies will

enable Round Oak to easily and to a high degree of detail to safely access complex locations. "In the underground mining business, quality data has always been integral to protection and sustainability," Tibbles said. "The Hovermap gives an incomparable forum to deliver this." Hovermap uses on-board, in real time, LiDAR data and sophisticated algorithms to provide accurate and precise positioning and navigation without the need for GPS, Emesent says. Dr Stefan Hrabar, CEO of Emesent, said the success of the

Hovermap-enabled M300 underground flights will open up new possibilities for underground mining. Because of its flight endurance, IP ranking, and capacity to hold external sensors like cameras, the M300 is an excellent fit for bringing Hovermap underground, "he said." "It will allow the collection of useful data deeper into inaccessible mining regions." "Robust underground flight technology will greatly increase the capacities of industrial drones and will offer real benefits to the mining, manufacturing and emergency response industries," Dr Hrabar said. "We look forward to working with clients to help them gain strategic benefit from this technical advancement."

Coupling Hovermap with the M300 enables users to enable the drone to travel into GPS-denied or inaccessible areas autonomously and securely, such as tightly packed factories, bridge undersides, and underground mines.

16 | SKILLINGS MINING REVIEW December 2020

MINERS SPEED UP AUTOMATION AS COVID-19 IMPACTS LINGER A recent report reveals that about 20 percent of workers actually employed in the mines and metals sector are at risk of being replaced by robotics as firms intensify the introduction of technology in view of the continuing constraints associated with covid-19.

percent of mining firms are driving the digitalization of work processes and the use of technologies, such as video conferencing, according to the new 'Future of Jobs' survey from the World Economic Forum (WEF). 26.3 percent of the amount accelerates the outsourcing of operations. Although the numbers are below global levels, 50% of firms are accelerating automation and 84% digitization, reflecting a continuing change

HOW TO MINE, AND BY WHOM.

As the top qualities mining companies strive for when it comes to attracting and replacing employees, the study recognizes technology skills, critical reasoning, innovation and versatility. "Covid-19 has boosted the arrival of work in the future," said Saadia Zahidi, WEF Managing Director. "The acceleration of automation and the consequences of the Covid-19 recession have exacerbated existing inequalities across labor markets and

reversed employment gains made since the 2007-2008 global financial crisis." NEW DIVISION OF LABOR

Automation and a new division of labor between humans and machines will disrupt 85 million jobs worldwide in medium and large enterprises across 15 sectors and 26 economies by 2025, experts warn. Roles in areas such as data entry, accounting and administrative support will continue to decline, while the demand for automation and digitization professionals will continue to rise. The miners' digitalization agenda has disrupted ties with the trade unions, who believe that the need for manual labor would be reduced to a minimum.

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AMERICAS

U.S. Steel eyes Keetac re-start Keetac for a restart could be on the books.

avid Burritt, President and Chief Executive Office of the United States Steel Company, said Friday that the steelmaker headquartered in Pittsburgh is planning to re-start its Keetac iron ore pellet plant in Keewatin. In the company's third quarter conference call, Burritt said, "We are evaluating the timeline for re-starting our Keetac iron ore plant." Since May, Keetac has been left idle. Keetac manufacturers pellets of iron ore, the main product used to produce steel. Sales of steel products such as vehicles, vans, furniture, and oil items have been affected by the global pandemic. U.S. steel officials are, though, hopeful regarding a rebound in the industry. The U.S. has rising market appetite, low interest rates, and a high order list for steel. Steel officials have faith in the future. The utilization rate of domestic blast furnace power has risen to around 70 percent , up from a low of close to 50 percent in the spring, Burritt said. Sales of cars and trucks are growing, and over winter, other steel consumers can replenish steel stocks, he added.

David Burritt, President and Chief Executive Office of the United States Steel Company.

"The third period has changed and appears to be an ambitious quarter," Burritt said. We think the momentum of the demand will persist through the first quarter of 2021. "The (Soo) locks close up, you see, so if we make it, this choice is to make sure we get through the winter months."

"Pierce added," We've got citizens spread out all around. "Some are at Minntac, some at HibTac, some at Minorca and some at Utac." However, all union employees at Keetac hold call-back privileges, in which if the plant reopens, they will return to their positions, Pierce said.

On Friday morning, Danny Pierce, president of United Steelworkers Local 2660, said he had not learned anything formal regarding a re-start. "Basically, I just spoke to my general manager yesterday," Pierce said. "And he won't answer me whether he learns something." Keetac is an iron ore pellet plant that generates 6.0 million tonnes per year. Since it was idle, some 375 workers at the plant were out of operation.

Pierce said the price of hot-rolled coil steel is currently at about $700 a ton. Iron ore pellet rates, he said, are around $120 a ton. "By the figures, before this time, we should have been going," Pierce said. "The key issue they have to find out is where the pellets are going to be delivered."

Some of the Keetac union employees now work at Minntac or other mining operations in the Iron Range, Pierce said. 18 | SKILLINGS MINING REVIEW December 2020

U.S. Steel also runs the Minntac Mine on Minnesota's Iron Range of Mountain Iron, the biggest taconite plant in North America. "A" swing process, "Keetac, for the U.S. Steel, from 2015 to 2017, was idled for 19 months.

Iron ore rises on China demand hopes, but set for monthly losses On Friday, iron ore futures rose as a decrease in China's steel inventories rekindled hope over demand for raw material for steelmaking, but the Asian benchmarks were expected to mark monthly losses on receding supply threats.

ron ore on the Dalian Commodity Exchange in China increased by as much as 3.2 percent to 803 yuan ($119.80) a tonne for a fourth consecutive day. On the Singapore Market, it rose 1 percent to $112,29 a tonne. For the third consecutive week on Oct. 22-28, major steel products kept by 184 Chinese steel mills tracked by Mysteel consultancy fell to 6.05 million tonnes, as demand from end-users improved. This week, a fall in weekly iron ore exports from Australia to China also gave a lift to rates. However, in response to daily berth maintenance, iron ore shipments to China appear to fluctuate, said Atilla Widnell, managing director at Navigate Commodities in Singapore, which has a bearish market forecast for the remainder of the year. Widnell said, "Average weekly arrivals at Chinese ports remain reasonably robust whereas domestic blast furnaces are steadily scaling back production." By year-end and next year, prices may fell to $100 a tonne, said Erik Hedborg, senior iron ore analyst at CRU in London, citing a' safe correction.' "The business is looking more healthy and there is a steady decline in supply chain disturbances induced by port congestion in China," he said. FUNDAMENTALS FUNDALS

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• In the third quarter, Vale SA recovered its iron ore inventories and would reduce the disparity between supply and revenue over the next few months. • Strong investment on modernizing Chinese plants implies no disturbance from the normal curbs of winter development. • Rebar rose 1.3 percent on the Shanghai Futures Market, while the hot-rolled coil climbed 0.8 percent. Stainless steel slipped by 0.9%.

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• Coking coal leapt 1.1% and coke advanced 1.5%. www.skillings.net | 19

GLOBAL

U.S. Miners Are Trying to Get Out of the Thermal Coal Business (Bloomberg) â&#x20AC;&#x201D; U.S. coal miners are looking for or being forced out of the electricity market. Contura Energy Inc. is encouraged by activist investors to intensify its strategy to get out of mining thermal coal for power stations, relying instead on the more profitable form used to produce steel. And, after an attempt to transfer them to a joint venture was thwarted last week, Arch Resources Inc. is looking to shed its thermal properties to also focus on metallurgical coal.

he moves reflect the coal industry's diverging directions. Utilities are switching away from burning thermal coal, the dirtiest fossil fuel, with cheaper energy options more readily available. But as the global economy recovers from the coronavirus slowdown, the demand for metallic coal, used in steelmaking, is up. That has miners changing their targets. Andrew Cosgrove, mining analyst for Bloomberg Intelligence, said, "It's pretty simple: get out of the sun." "With that plan, there's nothing wrong. They're welcomed. The market shows you it that is what they desire. Contura is now the leading U.S. manufacturer of met coal and, according to its 2Q earnings call, plans to be "a pure-play

20 | SKILLINGS MINING REVIEW December 2020

U.S. coal company is so focused on the transformation that in May it has modified its name, removing Arch Coal Inc.'s term "coal." Last week, the firm encountered a roadblock after a judge nixed a planned joint partnership with the largest U.S. coal company, Peabody Energy Corp. With several of Peabody 's holdings, like North Antelope Rochelle, the world's largest coal mine bordering the Black Thunder location, Arch was preparing to bring much of its thermal properties into a new venture. The company was to be operated by Peabody, enabling Arch to move back from managing thermal coal, but the judge ruled that it would be unacceptable to rivals to build a Powder River Basin behemoth. Arch is not altering its plan, considering the loss. "In a statement, Chief Executive Officer Paul Lang said," We plan to drive full steam ahead with our strategic turn into the steel and metallurgical industries. For both firms, one challenge would be seeking someone to keep their hands off the thermal mines. "No customers are here," Cosgrove said.

met coal firm by the end of 2022." The Bristol, Tennessee-based business pulled out of the Powder River Basin area, the largest U.S. supplier of thermal coal, in May, and placed its mining complex in Pennsylvania up for sale in June. But for certain investors, it isn't sufficient enough. "In recent months, it has become painfully clear to us that Contura will not begin to reverse its years-long tailspin entirely before it accelerates its expected exit from the thermal coal market," Michael Gorzynski, a managing director of MG Capital Management Ltd., wrote to the board of Contura in a letter on Wednesday. In the second period, Met coal accounted for 63 percent of Contura's shipments and 77 percent of its sales. The investment group headquartered in New York says it has a 5.8 percent interest in Contura and is now advising the organization to replace half its board with management who will guide the move away from the "environmentally damaging thermal coal organization." A spokesperson for Contura did not respond to inquiries. For years, thermal coal demand in the U.S. has been slipping slowly. According to the U.S., power plants are forecast to burn around 433 million tons this year, less than half of what they need a decade earlier, and down 20% from 2019. Administration for Energy Knowledge. Meanwhile, since April, global steel output, the engine of satisfying the need for gas, has been increasing steadily. Arch is now transitioning its market to coal and exploring potential alternatives for its thermal reserves, including the Wyoming Black Thunder mine, which is the second largest in the United States. The No. 2 www.skillings.net | 21

AMERICAS

US bank to provide £19.3m in funding for UK’s TechMet As part of a drive by US President Donald Trump to reduce dependency on China-dominated supply chains, the US Government Development Bank says it would spend £19.3 million in the London-based mining investment firm, TechMet.

he money from the £46.4 billion US Foreign Development Fund Corporation would support TechMet invest in a Brazilian nickel and cobalt project that seeks to supply the electric car industry, according to a study by the Financial Times. The investment is part of a larger plan to crack China's grip on supply chains of raw materials, the study notes, citing statements made recently by Trump, labeling the dependence of the US on international essential mineral supplies a "economic emergency" and security danger. The DFC was founded in 2019 in Asia , Africa and Latin America to provide an

alternative to Chinese overseas financing. It's the first time a metals and mining firm has been specifically invested by the US government, it says. "This substantial funding would stimulate sustainable progress in one of the most underdeveloped regions of Brazil," says Adam Boehler, Chief Executive Officer of the US

Foreign Development Finance Organization. "Investment in essential advanced manufacturing materials is promoting growth and advancing US foreign policy," he added.TechMet, which was formed in 2017 by Brian Menell, a South African national with a history in African mining, invests in metals needed for renewable energy and battery recycling technologies. Admiral Mike Mullen, longtime head of the Joint Chiefs of Staff of the United States, sits on the advisory board. The firm has interests in Li-Cycle, US Vana-

TechMet, which was formed in 2017 by Brian Menell, a South African national with a history in African mining, invests in metals needed for renewable energy and battery recycling technologies.

22 | SKILLINGS MINING REVIEW December 2020

According to consultant Benchmark Minera Intelligence, about 65% of the world's nickel and 82% of global cobalt for batteries derive from China. Elon Musk, Tesla's chief executive, recently called for multinational mining firms to boost nickel supply in order to satisfy the company's ambitions to ramp up the production of batteries.

dium, Rainbow Rare Earths, Brazilian Nickel, and Tinco, an African tin and tungsten firm that recycles batteries. The funds will be used, Mr Menell says, to put Brazilian nickel into commercial output. In Piaui, in north-eastern Brazil, the firm is building a cobalt and nickel mine. "The national and industrial productivity of a country would rely on preferential access to certain raw materials," says Mr Menell. "It's nice to have Tesla and Panasonic, but China will be able to close them in five and a half weeks since they have to go to China for raw materials."

Due to the metal helping to increase the range of electric cars, Tesla and other automotive makers are rising the volume of nickel used in their batteries.

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AMERICAS

perating income fell by 57.5 percent from the same time a year before, to JPY60.3 billion, with regard to earnings for the six month period. "This was mostly attributed to reduced sales volume and a shift in the regional makeup of sales in the manufacturing, mining and utility equipment industry, although Komatsu operated to minimize fixed costs." Optimistic mining markets were provided with other markets cited as flat or sluggish or having decreased as gold in CIS and iron ore in Asia and Oceania. Sales of the manufacturing, mining and service equipment company declined by 21.2 percent to JPY876.5 billion from the same duration a year earlier. Profit in the segment dropped 59.8 percent to JPY52.2 billion. "Comatsu also worked to improve the Autonomous Haulage System (AHS) as an attempt to concentrate on value generation by creativity, one of the three foundations of the growth strategy in the mid-term management plan, raising the total number of AHS trucks in service to over 260 units as of 30 September 2020." In addition to enhancing protection and maximizing customer mining activities, Komatsu says it will also continue to encourage mining automation as a way to help mitigate the risks raised by the coronavirus pandemic, such as decreased efficiency. The company also references "the introduction of remote operated loaders and creation of mining platforms" in the corresponding slides. No more specifics have been presented, although it is believed that this applies to teleremote mining shovels.

Komatsu Ltd sees AHS as a major focus to increase mining customer productivity in the Covid-19 era Komatsu Ltd said that combined net revenues across divisions totaled JPY957.7 billion in its recently published six-month study to September 2020, down 21.1 percent from the same duration a year earlier. Demand fell in the manufacturing , mining and utility equipment market, concentrating on North America , Europe & CIS and Asia, as the coronavirus (COVID-19) pandemic was especially affected. As a consequence, revenue decreased a year ago from the corresponding era.

24 | SKILLINGS MINING REVIEW December 2020

growth through an optimistic period of earnings recovery and potential resolution of ESG issues." With respect to market reform-based growth initiatives, Komatsu has worked to merge the mining product brands produced by Komatsu Mining Corp to further improve its mining equipment business. The group said earlier this year that it will keep its famous P&H and Joy labels for the longest-related products: P&H for its electric rope shovels, hybrid shovels, draglines and 320XPC blasthole drills; and Joy for longwall systems and equipment for space and pillars. But all surface wheel loaders, modern blasthole drills and all underground hard rock machinery have been rebranded as Komatsu, with color variations where necessary, such as hard rock machines going from Joy orange to Komatsu gold. Komatsu ended by stating that it has also managed to improve its International Markets aftermarket activities. Komatsu is providing a modern support package with a warranty duration that is greater than that of extended standard services as a big initiative. Komatsu embarked on this new initiative in India in September this year, after China, Thailand , and Indonesia.

Komatsu expects that demand will stay constant in China over the six-month timeframe from October 1 , 2020 to March 31, 2021, and will return to a recovery track in North America, Japan and some other regions. "While Komatsu will continue to invest in growth areas, concentrating its energies on the mid-term management strategy, the advantages of decreased fixed costs may also be anticipated through reassessing project goals and enhancing operating performance." For its 100th anniversary in 2021 and beyond, Komatsu Ltd and its combined subsidiaries are engaged in a three-year mid-term management strategy (FY2019-2021), DANTOTSU Value, FORWARD Together for Sustainable Development. Komatsu is upholding three pillars of development strategies under the mid-term management programme, initiated in April 2019, namely: D Production of value by way of invention D Company reforms-based development plans D Structural changes relating to development Although economic performance remains sluggish due to COVID-19, Komatsu "will continue to strive for sustained www.skillings.net | 25

AMERICAS

Freeport workers gather around a security gate at the Grasberg mine area at Tembagapura, in Indonesia's Papua province, August 14, 2013. REUTERS/ Muhammad Yamin/File Photo

Freeport does a balancing act as world's biggest gold mine grapples with covid-19 SINGAPORE / HOUSTON: Early in the pandemic, the Grasberg gold and copper mine began optimistic coronavirus tests, the mountain-top mining complex was rapidly shut down with a skeleton workforce left in position to sustain production.

ut furious employees blockaded the mine for four days in August while months of movement curbs went on until the company-a subsidiary of U.S. producer Freeport McMoRan Inc.-relented and let them restore weekly rotations from the site with a four-hour cable car and bus ride to towns below.

Jobs are happier today, but health officials are fearful of the larger danger of a fresh epidemic. Although containing COVID-19 in mines such as Grasberg, the world's largest gold mine and second-largest copper mine, the pressures reveal the juggling act to sustain production at full blast. "Richard Adkerson, Chief Executive of

Freeport McMoRan, told Reuters," We've placed the focus and wellbeing of our workforce and society at the top of our agenda. From the outset, because of the scale of the workforce of almost 30,000 employees, we recognised that (Grasberg) was a especially vulnerable place. Despite Indonesia experiencing one of the worst coronavirus outbreaks in Southeast Asia, while Freeport has suspended certain global activities due to the pandemic, development has resumed at the 14,000 foot (4,267 meter) -strong Grasberg mine.

living quarters of staff. At the time, Freeport confirmed it was banning vendors and eliminating "high-risk" staff, but did not indicate how many persons might operate at the mine. But since April, the lockdown has taken a psychological toll on the staff stranded at the site above the clouds, some of whom claimed they were unable to attend family funerals. "We were disappointed because we needed to see our friends, so we had to protest," a worker said, speaking from a joint dormitory with four others. As a consequence of concerns of losing his work, he requested not to be called. Because of missed pay, employees who were stopped from operating at the mine were often dissatisfied. SECOND-WAVE RISK?

In May, Freeport said it will function with a "skeletal team" due to an uptick in cases of coronavirus in the city, even in the

26 | SKILLINGS MINING REVIEW December 2020

Grasberg is based in the Mimika regency of Papua province, which has seen a gradual spike in coronavirus cases.

projected to increase much more. "Everyone needs us to keep running. For all stakeholders, the government does, the world does, it's necessary. Mining is deemed vital now in the U.S.," said Adkerson. "The shortest shift of crew can be two weeks, unless every week an organization is able to pay for PCR checks for each job," he said. But that method holds staff on site longer, leading to possible tension with the company. "Everybody needs us to stay working." Freeport Indonesia compensated staff compensation of up to 15 million rupiah ($1,010) for operating more than normal to help end the demonstrations, but it claimed it has no obligation for contractors, who made up about three quarters of the 29,201 workforce. A Freeport contractor said by telephone that he had not yet obtained any invoice, but management was debating the problem and there were no proposals for more protests.

There had been 1,902 cases in a population of around 224,000 as of Oct. 8, the second-most infected region in the easternmost province of Indonesia. According to Mining Industry Indonesia, the state corporation holding a controlling interest in Freeport Indonesia, five people died from COVID-19 at the mine, with 724 reported cases as of Sept. 29. The local business PT Freeport Indonesia said that employees have returned to a weekly crew-change roster after the demonstrations, with around 400-500 employees leaving and joining the mine everyday after temperature controls and a quick COVID-19 inspection.

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This will be accompanied by a Polymerase Chain Reaction (PCR) test whether a quick test is positive, which experts consider even more specific. Before the pandemic, Freeport Indonesia claimed twice as many employees will join and exit the mine every day. Adkerson said Freeport is managing the coronavirus staff at its own treatment facility free of charge. Tri Yunis Miko Wahyono, an epidemiologist at the University of Indonesia, said that in order to limit the possibility of transmitting the virus, crew shifts could be less regular. Freeport is one of Indonesia 's major taxpayers, with, according to company reports, direct donations of over $16 billion in income, royalties, dividends and other payments between 1992 and 2015. The mine is also important for Freeport McMoRan, the world's largest supplier of publicly traded copper, which, partially due to better output at Grasberg, turned a profit in the second quarter. As it moves from open pit to underground mining, activities at the Indonesian mine are

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GLOBAL

Donâ&#x20AC;&#x2122;t worry the world is a long, long way from running out of gold Here's one plausible explanation for adding to your investment fund those bullion coins or bars: They don't produce any more of them. All the gold that was ever found will fit into a cube 22 meters long with sides, wide enough to fit into three swimming pools of the Olympic scale. Miners and pawnbrokers add another 4,000 to 5,000 metric tons per year to an estimated 197,576 ton pile, but the market for jewelry alone takes up only half of it.

he worry that we're moving for peak gold has risen its head again with the metal touching a historic $2,075 a troy ounce in August. In order to sustain last year's output volumes, the industry requires to commission 8 million ounces of projects by 2025, Wood Mackenzie consultancy wrote in June, needing about $37 billion of capital spending. Output at the mine plummeted for the first time in more than a decade last year. Even the British Broadcasting Corp. is wondering whether we are in danger of running out.

ore deserving of the Statue of Liberty to retrieve a teaspoon of precious metal. The grade must get so low at some stage that it becomes difficult to commercially retrieve the gold. The truth is, we don't know when it's going to happen, and all

A long-standing development in the gold mining sector is at the center of the concern: the percentage of gold in ore deposits is dropping, from more than 10 grams per ton in the late 1960s to just over 1 gram per ton presently. These amounts are exceedingly poor, similar to grinding up and separating an 28 | SKILLINGS MINING REVIEW December 2020

the proof shows we're already a long way from figuring out. Take the Cadia East mine of Newcrest Mining Ltd., 200 kilometers (124 miles) west of Sydney. The grade is just 0.45 grams per tonne-more than two Liberty Statue-worth per teaspoon-and yet the mine is one of the most lucrative in the country, paying $160 per ounce, which at current gold rates will offer a margin of more than 90 percent. Two influences motivate it. One is economies of scale: one of the top 10 gold mines in the world ranked by production is Cadia. Grades in virtually any mineral have been declining since the beginning of the mining industry because, by necessity, the highest-grade, most readily discovered deposits are the ones that

are first mined. The sector 's growth has always relied on stronger, higher-volume extraction technologies that offset this truth. The position where many of the big gold reserves of the highest grade are still located, South Africa, is gradually a backwater. That's because using hand-operated methods, mining ore from sweltering tunnels kilometers underground is actually too hard. By contrast, in Siberia, Oceania and Nevada, the enormous blasting and dump-truck operations used to exploit lower-grade mines are much more effective. The other aspect is that the bulk of gold would not exist alone. Indeed, the strongest reserves worldwide are porphyry, a mineral that is indeed one of the major suppliers of copper in the world. The founder of the world's largest gold mine is not a gold miner at all, but Freeport-McMoRan Inc., a copper processor whose Grasberg pit produced almost twice as much gold in 2018 on the Indonesian side of New Guinea as its closest competitor, Olimpiada's Polyus PJSC. Production costs at Newcrest's Cadia are so low that you get around 140 kilograms (309 pounds) of copper for every ounce of gold that is extracted, worth about $900 at current rates. Although Wood Mackenzie's mine depletion problems are true, strong gold prices like those we're seeing at the moment are precisely the factors that will stimulate further discov-

ery and production investment to make up the shortfall. While people have been digging up gold for seven centuries, in the most unlikely locations it is continually being found.

near its uninspired Fosterville mine site in 2015, and knew it was sitting on top of one of the highest-grade reserves in the world, leading its market capitalization to rise almost 100 times in five years.

Since the veins that drove the nation-building 19th-century gold rush were tapped out, exploration of yellow metal in Australia's Victoria state all but stopped a century ago. Kirkland Lake Gold Ltd. then found a new ore body

That same year, the Zhaojin Mining Industry Co. unit found a new deposit two kilometers below the shore of the Bohai Sea off the coast of Shandong province in northeast China. With some 212 metric tons of confirmed and possible reserves, it is now one of the biggest concentrations of gold in the world. There's no need to believe this is going to disrupt the pattern. Since 1976, almost half of the world 's gold has been extracted and, if anything, the rate is accelerating as grades decline. Over the past decade, gold demand worldwide has increased by around a million, even more than the 15 percent growth in oil extraction. The main justification for investing in gold is still that it offers an investment fund with diversification, not that there is not enough of it for the planet. We can run out of gold one day. From that moment now, we are a far, long way out. www.skillings.net | 29

GLOBAL

Search and USA Rare Earth are working on minerals development Canada's Quest Minerals (TSXV: SMY) and USA Rare Earth reported Tuesday that they have entered into a framework agreement for technological collaboration to oversee initial collaboration to advance the production of mineral resources owned by each group.

strategic security and economic development in both countries. The production and financing collaborator of the Hudspeth County Round Top Mountain Vital Minerals and Strong Rare Earth Project is USA Rare Earth. It also operates facilities for the manufacture of sintered rare earth magnets previously owned and run by Hitachi Metals in North Carolina, and opened a rare earth and essential minerals facility in Wheat Ridge, Colorado earlier

In January, the US – Canada joint action plan on critical minerals collaboration was announced, intended to advance “mutual interest(s) in securing supply chains for the critical minerals” Stripped outcrop at Foxtrot project, Labrador. Image from Search Minerals.

earch retains proprietary Direct Extraction Method technologies and controls 100 percent of SE Labrador, Canada's vital rare earth element district, while USA Rare Earth is pursuing an integrated China-independent mine-to-magnet plan, including financing and creation of West Texas' Round Top heavy rare earth and critical minerals plant. The Joint Action Plan on Critical Minerals Partnership between the US and Canada

was declared in January 2020 to advance "mutual interest(s) in securing supply chains for important minerals required for significant minerals"Output industries, including information technologies, security and aerospace, and renewable technology. In June, the Canadian and U.S. governments reaffirmed their dedication to improving the vital mineral supply chain in North America, which is important for

30 | SKILLINGS MINING REVIEW December 2020

this year to commission a pilot plant utilizing Continuous Ion Exchange (CIX) methods of extraction, separation and recovery using Round Top feedstock and other domestic sources. A Preliminary Economic Assessment (PEA) study for the Foxtrot project along with a mineral reserve estimation for the Deep Fox project is currently available for Search's essential resources district in southeast Labrador, Canada. As the firm focused on the Fox Meadow, Silver Fox and Amazing Fox opportunities through-

EQUIPMENT

out the Region, the 2020 discovery program was completed. In addition to the rare earth elements, Quest checks a flowsheet to extract additional value from the large values of Zirconium and Hafnium contained at Silver Fox on the soil. Under grants from the Defense Logistics Agency (DLA) and the Department of Energy (DoE), the JV affiliate of USA Rare Earth and previous operator, Texas Mineral Resources Corp. (OTCQB: TMRC), demonstrated the capacity to generate high-purity rare earth oxide separation. The work currently underway at the Wheat Ridge facility of USA Rare Earth is to manufacture high purity isolated rare earth oxides, lithium compounds, zirconium, hafnium and other metals from Round Top and for other strategic partners (+99.5 percent). USA Rare Earth will extend this reach to include content from Search's Labrador project under the Partnership Arrangement with Search. In a media release, Greg Andrews, CEO of Quest, said, "We think our synergies with both our technological cooperation and our expertise would have a good synergy to assist with our objectives of promoting a North American rare earth supply chain." "We are pleased to partner with USA Rare Earth as they improve their Mine to Magnet strategy." "In the spirit of the U.S.-Canada Joint Action Plan on Vital Minerals Cooperation, we see more ways to collaborate with Quest. In terms of providing our sintered neo magnet plant with all four neo magnet rare earths, Search's Labrador ventures and USA Rare Earth's Round Top project are strongly complementary,' said Pini Althaus, CEO of USA Rare Earth. Rare earth (neo) magnets used in electric motors for electric cars and generators in wind turbines are driving demand in the rare earth industries. Alloys like neodymium, praseodymium, dysprosium, and terbium are used in the Neo magnets used in these high-temperature applications.

Covid-19 hits drilling contractor's bottom line For the year, sales fell 10 percent year-on-year to US$172 million, which the firm said was favorable relative to the June quarter's 30 percent downturn.

or the nine months to September 30, income was down 17 percent, or 15 percent after adjusted for foreign exchange impacts. Both the global drilling services and the divisions of global products were affected. Quarterly adjusted EBITDA plummeted 25% to $21 million, although the firm reported a net loss of $13 million for the month. Adjusted EBITDA was down 48 percent to $45 million for the first nine months of the year. For the time the total after-tax loss was $74 million. The 25 percent growth in total cash from activities to $39 million was a good one. Boart CEO Jeff Olsen said that in his firm, the organization was seeing a return to usual operating levels. "Some areas of the world have identified mining operations as vital resources that have allowed the group to continue serving our consumer base; nevertheless, there are still some sections of our company coping with the direct consequences of the pandemic and to date this has seen lower company sales," he said. We are pleased to see recent reinvestments in our industry, with major mining houses flagging expanded exploration spending and junior miners now accessing capital through equity raises that enable them to get out and discover the opportunities of tomorrow. "We expect the pace of operation to persist longer into the year and start sooner in 2021 as mining houses seek to reclaim lost land in 2020." Liquidity was $53 million at September 30, consisting of $30 million in cash and $23 million in lending facilities open. Total debt rose 8 percent to 823 million dollars. Boart shares were flat at A38.5c today, valuing the business at just under $34 million. Since the start of the year the stock has fallen more than 75 percent. www.skillings.net | 31

GLOBAL

South Africaâ&#x20AC;&#x2122;s mining industry weathered Covid-19 South Africa's mining firms stayed competitive and delivered on all fronts during an incredibly difficult year. Stakeholders gained from increased profitability by strengthening their true social license to act in favor of their workers and the societies in which they reside with mining companies. The COVID-19 storm has been weathered by the mining industry, largely unscathed and definitely stronger than many other industries.

s platinum basket prices rose and investors switched to gold as a safe investment despite worries about the COVID-19 pandemic and global trade conflicts, mining firms continued to reap commodity price increases, supported by a weakened rand. These are some of the highlights from the 12th edition of PwC's SA Mine, a collection of publications published by PwC that illustrate developments in the South African mining market. PwC Africa Energy Utilities & Services Boss, Andries Rossouw, says: "The mining industry in South Africa appears to be a major contributor to the economy and has in several ways weathered the COVID-19 pandemic, demonstrating healthy profitability and sustaining solid balance sheets." However, the long-term outlook remains uncertain and there is no agreement about how the pandemic would affect the mining market. The pandemic emphasized the utter need for improved reconstruction, and mining would play a vital role in the recovery.

CAPITALISATION OF THE SECTOR

Total market capitalisation has risen from R840 billion to R1,280 billion in 2020. This sum is a YOY rise of R439 billion (52 percent) from 2019, primarily due to the increase in market capitalization of gold and PGM industry firms. Gold and PGM accounted for 80 per cent of the examined companies ' market capitalisation this year and appear to lead the business. FINANCIAL PRODUCTION

For the year ended 30 June 2020, the overall revenue produced by the South

32 | SKILLINGS MINING REVIEW December 2020

African mining industry increased by 4%. It was largely powered by PGMs, gold and iron ore, which for the 12-month cycle witnessed sales rises. The largest portion of revenue was generated by PGM (28 percent), showing a 56 percent rise from the previous year, overtaking coal for the first time since 2010. Gold mining firms saw a sales boost of 35 percent. Revenue rose by 7% for the 'other mining' divisions. As of April 2020, the effect of the COVID-19 pandemic was apparent, with industry-wide sales declines being seen.

PGMs and gold from South Africa are primarily extracted in deep-level surface mines and have thus been struck hardest. The producers of PGM and gold have stated that they plan to hit maximum rate of output by the end of the calendar year. Cash produced from activities after working capital adjustments rose by 50 percent from the previous year for the SA Mine organizations. The main contributors were the gold and PGM industries, adding R24 billion each to the rise in cash produced from operational activities. With a net rise of 5 percent, capital investment rose. Compared to the previous year, impairments reduced by 50 percent, which culminated in an R5.9 billion income statement fee. The mining companies' average EBITDA margin included in this study was 34 percent, a 1 percent improvement over the previous year. As a consequence of the growth in PGM and gold prices in the current quarter, net profit rose by 60 percent. With an effective tax rate of 26%, the net tax burden for mining firms was R37 billion. In addition, on the basis of enhanced free cash flows and higher product prices, allocation to shareholders grew to R43 billion (2019: R18 billion). MANUFACTURING

Output decreased by 8% YOY, with a 44% decrease in performance recorded as a consequence of the pandemic in April 2020, the most important of which was attributed to declines in gold , diamonds and PGM production. Since the relaxation of lockout limits, production volumes rose in May 2020. AN INCENTIVE TO HELP DEVELOP BACK

The value of prioritizing environmental , social and governance (ESG) issues on the corporate agenda has been gradually acknowledged by corporations and investors.

Our research highlights four main ESG priority areas that should be top of mind for any enterprise that wants to better reconstruct and maintain a reasonable transfer to a new environment and boost their social license to operate. There are: 1) stability in the supply chain; 2) effect measurement; 3) threats associated with the climate; and 4) quality of capital. To determine the degree to which ESG problems are included in decision making, we have reviewed the published accounts of the mining companies considered in this publication. PwC Assurance Associate and SA Mine 2020 Project Chief, Luyanda Mngadi, comments: Our research reveals that while mining companies are frequently at the forefront of ESG activities, when it comes to establishing goals and assessing themselves, they are poor in their reporting. The COVID-19 pandemic called for a renewed government and company emphasis on enhancing the lives of citizens and strengthening local communities. As such, this suggests a need for ESG to be taken into consideration in its entirety. The pandemic underlined the utter necessity to 'better build back'. In the recovery, mining can play a key role. It is also unfortunate that capital spending has only risen slightly, considering the increased profitability. Although a conservative attitude is understandable, it is important to eliminate impediments to investment. In order to ensure stable and cost-competitive power, liberalization of the energy sector is necessary for mining and future profit opportunities. In this sense, we think hydrogen will play a revolutionary function. With the need to streamline procedures and increase accountability for current and future investors, improvements in the regula-

tory climate can continue. The mining tax setting, with an incentive to incentivize exploration investment, should be viewed as a whole. It will have instant recovery benefits and increase long-term viability by enabling utilities, promoting the supply chain and mine-to-market logistics. It is only feasible to draw investment if the SA mining sector will be cost-competitive with its global peers. THE HYDROGEN SCENARIO

Hydrogen has been attracting interest in South African mines for quite some time. Several transport projects in the sector have been conducted that are strongly focused on the usage of PGMs in fuel cell catalysts. Although these pilot projects are a successful start to introduce hydrogen technology into mines, the focus of their deployment is very limited, with only the transport component of a mining activity being decarbonized. There is a much greater ability to exploit hydrogen's cross-sector advantages on a microgrid scale, providing a truly green and resilient mining activity. Provided that the cost of generating green hydrogen is projected to decline by up to 60 percent within the next decade, now might be the best time for mining companies to recognize the tremendous benefits of hydrogen. CREATING STAKEHOLDER VALUE

For the nation and its inhabitants, the mining sector tends to bring considerable value. As a consequence of the COVID-19 pandemic, mines were asked to make far greater contributions and support structures in their local areas. Employees continue to take the big share of value added at 38 percent, as reported in business value added statements, led by government by direct taxes (11 percent), employee taxes (7 percent) as well as royalty (3 percent). www.skillings.net | 33

GLOBAL

Mining cutback would hit Vancouver hardest According to company leaders, the mining industry of B.C. could shrink by 64 percent over the next 20 years and the greatest financial and employment declines will not be in the outback, but in the financial center of Vancouver.

he Mining Association of B.C., amid a promising rise in commodity prices, with copper increasing above US$ 3 a pound on October 19 for the first time in three years and gold prices flirting with a 20-year peak of over US$ 1,900 a ounce, Last week, he cautioned that by 2040, B.C. 's 14 operational mines might diminish to only five.

metals, and the one for base metals to come, is not only fantastic for B.C. Miners-it is also fantastic for Vancouver, the global center for mine funding. "B.C. 's main mining sector is not mining," he added. "It's mine facilities and financing for mine. In Vancouver, there are more workers involved with mining than in the hinterlands, and Vancouver is an actual epicentre."

"Three bucks, give or take, on copper, you might see mines reopen for treatment and repair," said Michael Goehring, CEO of the British Columbia Mining Association (MABC) in a September 22 BIV interview, "A [US] $3.50 copper price would incentivize new mines to start." He added that the present bull market for precious

A recent study from the MABC reports, however, that the province has a severe carbon leakage issue that may see the mining sector here shrink significantly as mining pollution grow in other nations. Leakage is when pollution constraints on a sector in one jurisdiction result in the industry simply investing else-

34 | SKILLINGS MINING REVIEW December 2020

where, where such constraints are lower or absent, such as carbon taxes. Since carbon taxes were first imposed by the Liberal government in B.C., the coal sector in B.C. largely accepted them. But the sector anticipated that carbon tariffs would still be introduced by some rival jurisdictions. Most did not. In comparison, the NDP terminated carbon tax parity, where rises in carbon taxes are covered by reductions in other taxes. The study notes that "After BC introduced the carbon tax in 2008, several other nations and subnational jurisdictions were supposed to comply with their own," "Most have not. Some that have covered exposed companies for their exchange. "In spite of this, the mines and smelters of BC face a major cost disadvantage since there is no carbon taxation or slightly reduced carbon pricing for industries they contend with in other jurisdictions. Anecdotal data shows that the carbon tax is

also leading to a change in capital spending and carbon leakage." It states that no carbon price is charged by the U.S., Australia, Russia and the Middle East, and miners in Chile only pay carbon tax on their power production, at $5 per tonne of CO2. Currently, B.C.'s carbon tax is $40 per tonne, and is projected to increase to $45 per tonne in 2021. There are presently 14 mines in operation in B.C. and two smelters that provide 35,000 workers, have government tax income of $1 billion and account for 25% of B.C. 's exports, the study states.But the association reports that due to the high expense, once the mines become exhausted, new ones will not be constructed. New replacement mines may be established, and pollutants may be produced-it may only not be in B.C. In B.C., 25 areas of concern for mining were listed by the NDP government's own mining task force, with carbon pricing and the lack of security for emissions-intensive and trade-exposed (EITE) sectors being a top concern. "As described by the Task Force, the lack of security under B.C.'s carbon tax for mines and other EITE sectors such as pulp and paper or forestry is the single largest obstacle to BC's mining industry 's competitiveness," the study states. "In order to offer greater security for B.C. mines dealing with mines and exporters in jurisdictions that do not provide the same carbon pricing standards, the study encouraged the provincial government to" modify the current Renewable BC Industrial Incentive Policy.

Dalian iron ore futures set for 6th monthly gain amid strong steel demand Some of the main gold miners in Western Australia are torn over the rough boundary policies of the state.

uncan Gibbs, managing director and chief executive of Gold Road Resources, said at the Diggers and Dealers mining conference in Kalgoorlie on Monday that the firm was juggling with a smaller pool of manpower as iron ore firms sucked up employees from other industries to fill shortages left by employees from the east coast who stuck in their state. Mr. Gibbs said the Gruyere gold mine was largely untouched by the venture, although there were increasing rumors in the sector that finding workers was becoming more challenging. "I believe you're going to see iron ore being hired from the gold and nickel industries," he added. You still have a challenge on the technical side of things for things like mining engineers. Stuff like shutdown labor, some of it comes from the east coast, are what you're actually seeing rather than anything.

As an example, we had to adjust the crew that was scheduled to do Gruyere's tailings dam mining job. "It's not at the point that you should get the job finished, so we're just sort of juggling for a smaller pool at the moment." Thanks to the hard frontier, Evolution mining executive director Jake Klein was unable to attend the Diggers and Dealers event in person, instead presenting his presentation and press conference via video connection. He said Australia had performed well after the pandemic, but the boundary strains remained a market impediment and "the faster the stronger they can be removed." In WA, the hard boundary was wildly successful and brought Premier Mark McGowan to a degree of success that is only seen in politics. Criticisms, however, are increasing over his relentless role on travel bubbles with states that have reported no transmission of COVID-19 to the population, in some cases for a longer duration than Western Australia.

A ALERT CONCLUDES THE REPORT:

Including high-profile businessman Richard Goyder, Federal Finance Minister Mathias Cormann has attacked Mr McGowan across the boundaries. Although the boundary policy is firmly supported by portions of the gold industry. Raleigh Finlayson, managing director of Saracen Mineral Holdings, who hosted Mr McGowan on Sunday at the Mega Pit gold mine in Kalgoorlie, said he was "content with the closure."

Nine BC mines are projected to hit the end of their supply and shut over the next 20 years , leaving just five operational mines in 2040. Which ensures that along with them, the employment, community benefits and taxes for public programs will vanish. "No assurance exists that BC mining can proceed."

As much as if you claim it will be nice to come out to speak to shareholders again, the flipside is that if we open up too fast to start having cases or, Heaven forbid, we begin to get cases in a regional area like Kalgoorlie or one of our mine sites, we would regret it very easily, "said Mr. Finlayson." Though three of his colleagues had only undergone 14 days of isolation, Northern Star Resources executive director Bill Beament said he supported the borders and suggested another outbreak of the virus would do much more damage. www.skillings.net | 35

AMERICAS

Covid-19 triggers mining industryâ&#x20AC;&#x2122;s use of eLearning The mining sector, with complex and severe health threats, has a reputation for being a dangerous enterprise. But mining does not have to be dangerous. The Department of Natural Resources and Energy reported just 51 fatalities in 2019, the lowest ever reported number of mining fatalities for the world, thanks to tight safety regulations.

ifty-one fatalities are already 51 too high, though, and medical fatalities in 2019 have actually risen relative to the previous year attributed to industrial diseases (caused, for example, by coal dust or hazardous chemicals): 25 more cases were registered for gold mines, and 2 for coal mines.

Risk management is not straightforward, and achieving the requirements of protection, fitness, climate and efficiency (SHEQ) requires laborious documentation of an entire safety management scheme, including the detection of employee risks, the evaluation of their effects and the development of risk reduction mechanisms. "Muhammad Ali, managing director of WWISE, an international standards organization (ISO) training, consulting and implementation specialist, said," In our experience of working with some of Africa's largest mining companies, the recurring challenge for them in meeting

SHEQ standards is the massive administrative task it involves, apart from training and monitoring. Many companies just introduce and educate their supervisors with the SHE management method, but this also leaves the mining industry extremely vulnerable, "he said." "If only partial preparation is carried out, employers and staff themselves also lack the basic skills required to maintain optimum health and safety, control of the atmosphere or job quality." Today, an growing range of mining companies are utilizing e-training and e-monitoring to drive greater efficiencies in their sector and fulfill challenging SHEQ requirements with increasing trust in digitisation. Indeed, the annual Top 10 industry challenges facing mines and metals in 2021 by the multinational accounting company Ernest & Young's (EY) noted that there were signs of rising digital confidence among miners, with digital being 'business as normal' for major mines outfits.

36 | SKILLINGS MINING REVIEW December 2020

The COVID-19 pandemic demonstrated how digitalization would guarantee the longevity of industry in many sectors, and mining is no different. Companies are also realizing the importance of remote work and interactive teams to help keep employees healthy, active and involved, and digitizing an growing volume of previously paper-based training courseware. "Mike Hanly, Managing Director of New Leaf Technologies, a Johannesburg-based learning software and solutions company specializing in the mining sector, commented," We are seeing a significant upswing in mining companies and from employees on how they can improve their SHEQ compliance and knowledge using eLearning methods. As it is interactive in design, integrating words and images with 3D modeling and animation, virtual reality and augmented reality content, Digitised eLearning courseware is also even more entertaining and unforgettable.

It is capable of retaining the interest of trainees because of its educational design style, thus describing often challenging concepts. "It is useful since it encourages workers to practice more at their own time, at their own speed, and on a device they want to use," Hanly noted. Control frameworks are being developed digitally, including preparation and reporting, says Ali. OHSAS 18001 (Health and Safety Management), ISO 9001 (Quality Management) and ISO 14001 (Environmental Management) programs are now merged into one unified web utility, available everywhere, anywhere. The eLearning / training aspect of these management systems, which Hanly believes provides many advantages, is a key function. Owing to the unpredictable existence of the sector in general, course material can be modified rapidly and easily on an ongoing basis. Regardless of where a mining activity might be, there is a degree of continuity and uniformity with what the courseware is and how it is taught, which makes for a better level of efficiency. And reporting is smoother, helping mining companies to deliver fast and informative reviews that will recognise accomplishments and what needs to be capitalized on, as well as where the holes are and how to fix them. And finally but definitely not least, online instruction avoids the risk of recruiting, flying in or hosting facilitators for classroom instruction, and reduces the employer 's costs.

www.skillings.net | 37

AMERICAS

Iron ore miners make hay while the sun shines Mount Gibson Iron (ASX: MGX) is well placed to leverage on buoyant Australian iron ore demand as it targets initial revenue from its mid-2021 Shine direct shipping iron ore project in WA.

ccording to news, the rate of 62 percent iron ore content is currently at $US123.50 ($172.25) a tonne, the highest volume since February 2014. "In order to expand our substantial footprint in the Mid-West, where we have been a proven exporter of iron ore since 2004, we are pleased to be able to focus on the positive demand conditions for iron ore by advancing the Shine iron ore project," said Chief Executive Peter Kerr. The mine is a short-term, low-capital development venture that increases the company's footprint in the Mid-West area further and exploits its port and logistics capacities. The Shine project is situated 85 km north of the Extension Hill mine at Mount Gibson and 230 km east of the port of Geraldton in WA, from where the business has been exporting since 2004. The group is planning Shine 's output of 1.5 million wet metric tonnes (wmt) each year, suggesting an initial two-year mine existence beginning in the first half of 2021. Based on current business circumstances, there is a possibility for a further two to be extended. AN 'ATTRACTIVE INDUSTRIAL OPPORTUNITY' SHINE INITIATIVE

Shine 's average cash running costs until government royalties are $65-70 / wmt and the project has a cost of $17 m to $20 m for production. The Shine Mine can

be trucked from a distance of 300 km to the port of Geraldton. "Shine has been confirmed by our thorough analysis of the project as an enticing development opportunity that can be easily brought on-line and adequately staged to meet business conditions," Kerr said. In 2014, Mount Gibson bought the Shine project for $12 million from iron ore junior Gindalbie Metals, now a subsidiary of Chinese steel firm Ansteel. When Mount Gibson continues exporting ore from the project in mid-2021, an extra $3 m is payable to Ansteel. If premium quality iron ore prices average more than this in a monthly cycle, a royalty of 20c per tonne is owed to Ansteel for any dollar over $115 per dry metric tonne. The iron ore mine on Koolan Island off WA's Kimberley coast, which supplies better quality direct shipping ore, is run by Mount Gibson, and the Extension Hill mine in the hinterland of Geraldton. The business expects to launch an elevated stripping process at its Koolan Island mine lasting 12 to 18 months, which is expected to improve cash flow and revenue from 2022 onwards. For the 2020 financial year, the company's iron ore revenues were close to 5 million wmt, and for the year, its net profit after tax was $84 m. With the Wiluna West iron initiative, the GWR Community continues to press GWR Group (ASX:

38 | SKILLINGS MINING REVIEW December 2020

GWR), which plans to become a manufacturer when its Wiluna West direct shipping ore project in WA begins, is another iron ore business making progress. DSO is a high-grade commodity that only needs limited refining before it is exported, such as grinding, thereby holding costs down. GWR began drilling for pre-production infill and grade control at the plant, it said this week. GWR is well placed to take advantage of the commodity cycle and has retained a consultancy to assist in setting up offtake deals for product purchases, "Gary Lyons, Chairman of GWR, said." Iron ore values are well backed by Chinese imports, supply concerns for Brazil. After its economy rebounded from the COVID-19 pandemic, China has been gradually buying up products, including iron ore. According to economists, two variables have driven iron ore market rates to elevated amounts this year. First, China is investing aggressively on iron ore-intensive roads, such as railway lines, power transmission pylons, bridges and houses. Second, production difficulties for Brazil's competing iron ore exporter, even as a consequence of the COVID pandemic. "Commonwealth Bank of Australia commodity markets analyst Vivek Dhar said in a note this week," We generally expect iron ore prices to fall as Vale steadily brings back curtailed supply and eases China's steel demand (as stimulus fades in 2021),

2020 ANNUAL INDEX OF SKILLINGS MINING REVIEW PERUSING THROUGH OUR 100+ ANNUAL INDEX WILL GIVE THE READER A GOOD RETROSPECTIVE OF 2020. NEW HEADINGS REFLECT TRENDS UNIQUE TO WHAT HAS BEEN AN EXTREMELY INTERESTING YEAR. THERE IS AN INCREASING EMPHASIS ON SUSTAINABILITY - CLEAN TECHNOLOGIES, WASTE WATER MANAGEMENT, RE-VEGETATION AND ADHERENCE TO LEGISLATION.

AMERICAS ARTICLE.........................................................................DATE 1. Blackhawk shut down Coal Mines.........................................JAN 2. Iron ore Supply to Stabilize As The Great Lakes Freeze Up Starts ...........................................................JAN 3. Steel slowdown to further hurt iron ore demand.................JAN 4. State receives mining proposal from Twin Metals..............JAN 5. Tunnel safety technique for non-hazardous working practices......................................................................JAN 6. U.S. coal mining industry continues to suffer job loss...........JAN 7. Copper tapped as the next big metals trade in 2020..........JAN 8. Coal mining: what's needed to promote community confidence............................................................JAN 9. US Steel working on makeover to remain relevant.............JAN 10. Rio Tinto to extend Kennecott copper operations...............JAN 11. MAN Supplying Gas Engines to Power Iron Mine...............JAN 12. How the IOT is changing Australian mining.........................JAN 13. GOAU - US Global GO Gold & Precious Metal Miners...........JAN 14. Iron Mining Association Board New Members...................JAN 15. Congress Approve New Great Lakes Icebreaker.................JAN 16. Sudbury mining equipment manufacturer plans to penetrate the Mexican market................................ FEB 17. Transformations in remote diagnostics & connectivity for mines.............................................................. FEB 18. Kogi secures fourth iron ore mining lease in Nigeria.......... FEB 19. BBVA sees Peru mining investment increasing in 2020 before dip.................................................. FEB 20. Rep. Betty McCollum Proposes bill to Ban copper-nickel Mining Near Boundary Waters...................... FEB 21. Earthmoving equipment for open-cast mining.................... FEB 22. Iran exploiting only one percent of its mineral deposits........... FEB

23. Apple pushes recycling with ‘Daisy’ robot............................. FEB 24. MSHA to Focus on Contractor Safety and Compliance in the New Year.......................................................................... FEB 25. Companies fight over rights to gold claims in lawsuit amid sale of Pogo mine........................................................... FEB 26. Wave of institutional divestment from coal mining, generation evolves in 2019...................................................... FEB 27. US Steel Falls to 52-Week Low..............................................MAR 28. Tata Steel, JSW increase steel price by Rs 500-800..........MAR 29. The perfect places to mine are still in the developed world, and that’s a problem: Russell.................MAR 30. Coal Shipping In Twin Ports Falls To Lowest Level In Decades While Wind Cargo Surges..................................MAR 31. Iron ore prices are down but is demand recovery around the corner.....................................................................MAR 32. Iron ore retreats on coronavirus fears..................................MAR 33. Iron ore prices drop almost 9% in a week despite supply tightening......................................................................MAR 34. Let’s Mine The Range Let’s Do It Correctly...........................MAR 35. Fortescue profit soar on iron ore price jump, but dividend seen conservative.............................................MAR 36. Innovators in Lithium mining secure investment from Bill Gates-led fund....................................................................MAR 37. Barminco wins a contract to provide mining services for Barrick’s Hemlo mine in Canada......................APR 38. Critics Cry Foul at Miners, Truckers for Using Coronavirus Crisis to Bend Rules................................APR 39. Great Lakes Ports Work On Establishing Cargo Diversity.....APR 40. Sunrise Mine To Close Permanently......................................APR 41. Minnesota SME leaders cancel the Annual mining www.skillings.net | 39

42. 43. 44.

45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71.

conference..................................................................................APR U.S. Coal mining industry the latest to seek awide-ranging coronavirus bailout.........................................APR The cost of a mine shutdown, Why its rewarding to invest in quality process instrumentation........................APR Outotec launches advanced in-situ carbon measurement system for minimizing gold losses in CIL circuits and CIP..................................................APR Fortescue hopes for China virus recovery as steel backlog increases............................................................APR China steel association warns of iron ore speculation risks amid market fluctuations...............................................APR Cannington Mine Employee Tests Positive To Covid-19...APR PYBAR supports next generation of miners with scholarship program................................................................APR How Low Can The Iron Ore Price Go?..................................MAY Mining considered essential to US Covid-19 response.....MAY Cambodia Government calls for new mining exploration bids........................................................................MAY Stronger Chinese steel output seen backing iron ore prices in Q2.................................................................MAY Coming up on the Mining Agenda........................................MAY NMDC Reduces Iron Ore Prices For April ...........................MAY Greenland waives miners' 2020 licence fees......................MAY Polyus to initiate covid-19 response fund in Russia..........MAY Who cares If Standard Bank won’t stop financing coal mining?............................................................MAY Iron Ships Slide Into Economic Storm..................................MAY Minnesota Court of Appeals Sends PolyMet Air Permit Back To MPCA.............................................................MAY India’s low-grade iron ore key behind spurt in demand......JUN Mining projects to slow further in IInd quarter 2020.............JUN Rosgeo to start hydrocarbon exploration in Guinea...........JUN Iron Ore Price boosted as a result of Resilient China Steel Production............................................JUN Nordic Investment Bank €100 million loan to help finance mining expansion at Boliden’s Kevitsa mine..............JUN S&P hits back in court after Fortescue Metals takes legal action to prevent publication of iron ore price............JUN Three Hundred Powder River Basin coal workers laid off......JUN China stainless steel hits nine-month high as local demand recovers......................................................................JUN Coal’s crash could lead to a landscape of abandoned mines.....................................................................JUN Another Mining Giant awakens..............................................JUN Federal secrecy is a warning signal on mining BWCA.......JUN Cliffs CEO optimistic demand for steel will

40 | SKILLINGS MINING REVIEW December 2020

72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98.

return as automakers resume production............................JUN Brazil's Vale gets preliminary license to expand Serra Leste iron ore mine......................................................... JUL Gold & iron ore are doing equally well. Their miners are not..... JUL Copper, iron ore prices rise on signs of quick recovery...... JUL Northeastern Minnesota iron ore plants listed among beneficiary of Minnesota Power refund.................. JUL Trump campaign for United States coal undermined by industry slump............................................... JUL Reedy partners with HIsmelt technology to test biomass as coal replacement for iron ore smelting........... JUL U.S. Steel signs long-term deal with Algoma Steel............. JUL Australia restores confidence in China's iron ore processing changes................................................... JUL Cahoot, AusIMM upskill sector with Mining Academy...... JUL Range business owners: “We’ll find a way to stay afloat” as mines idle due to Covid-19....................... JUL Outotec will deliver copper solvent extraction machinery to the Democratic Republic of Congo.............. AUG Research suggests That Mines spread Covid-19.............. AUG Increase of Iron ore price will boost Western Australian budget amid Covid-19 crisis.............. AUG Silver mining production more heavily impacted than Gold mining production due to Covid-19............................. AUG Paterson & Cooke use a new Port idea which was the brainchild of Zanaga Iron Ore...................... AUG Specialist Hedge Fund makes use of opportunities in metals stocks.............................................. AUG PwC will help to finance a project conducting gold mining in Buckreef .......................................................... AUG Trump suffers blow following US coal industry decline ............. AUG Is the World fighting for control of outer-space.................. AUG Barrick gets go-ahead from Tanzania to ship gold concentrate ............................................................. AUG Vale allows Itabira iron ore mines to remain functioning in light of current Covid-19 crisis...................... AUG Dyno Nobel uses EZshot to improve underground mine problems ................................................. AUG AusIMM and Cahoot increase their crucial skills through the Mining 4.0 Academy................................ AUG Vale’s Mine Shutdown causes concern as Iron Ore is on the up................................................................. AUG Phoenix Mine, Australia gets New spray system .............. AUG Steel and Metals Recovery may depend upon sustainability ............................................................................ AUG Armenia is being slammed by the US and UK due to a mining issue............................................................... AUG

99. Minnesota opts to decrease investment in coal................ AUG 100. Why seals are important for reliable mining and ore processing ................................................................. AUG 101. Range business owners are hopeful in spite of mines easing operations as a result of Covid-19........................... AUG 102. Northeastern Minnesota iron ore plants will form part of Minnesota Power refund .......................... AUG 103. Pandemic saps union suffers blow as talks loom with Chile copper miners.................................... AUG 104. Fatal Falls in the mining world are on the rise......................SEP 105. Sandvik is set to hold an Innovation in Mining event online ............................................................................... SEP 106. US Steel industry suffers loss of nearly $600 million.............SEP 107. Hibbing Taconite will to resume pellet production in early August........................................................................... SEP 108. First Shipment of Iron Ore was 136 years-ago.....................SEP 109. Mineral Plans in the NANA region has been affected due to Covid-19.......................................................... SEP 110. Underground seepage emanating from Minntac will have to be subjected to regulations................SEP 111. Inmarsat reveals how satellite ioT is affecting mining ........................................................................ SEP 112. DFL Duluth Senate early stage is a “Race of Consequences” escalated by mining divisions ..................SEP 113. Minnesota Power Plans Electric Mine Truck Plan..............OCT 114. Australia’s Process IQ opens new office in Toronto.............OCT 115. Chisholm opts to use mine potential in order to provide recreation ................................................................OCT 116. Atlas Copco’s towers light JRC’s open-pit chances ...............OCT 117. The mining industry in Yukon eyes opportunity in the Port of Skagway.............................................................OCT 118. Orea gives update on Maripa exploration.............................OCT 119. Environmental Groups in Minnesota Plan To Appeal Approval Of Mining Project .......................................OCT 120. COVID-19 Highlights: Why Economic Diversification is Urgent Why Economic Diversification is Urgent .............OCT 121. Minnesota has export decline of $1 billion over second quarter..................................................................OCT 122. U.S. Steel loses $589million...................................................NOV 123. BHB betrays international safety efforts .............................NOV 124. Mid-season shipping update amidst the current pandemic ....................................................................NOV 125. Council of Ely allows IRRR fundng for Piragis.....................NOV 126. Copper rally could prompt Mount Polley restart.................NOV 127. What Does Steel Megadeal Mean For Minnesota?...........NOV 128. US bank to provide £19.3m in funding for UK’s TechMet............................................................................NOV

129. Researchers produce magnetic ‘Fool’s gold’.......................NOV 130. Fatigue Science launches 14-Day Fatigue Forecasting solution................................................................NOV

EQUIPMENT ARTICLE.........................................................................DATE 1. Nel to provide electrolyser for Anglo American hydrogen-powered haul truck.................................................JAN 2. ISO Announces New Drone Safety Standard.......................JAN 3. Two workers injured after rock falls 16 feet, striking crane at Clermont County mine................................JAN 4. Mining companies to gain from investing in digital solutions in 2020...........................................................JAN 5. Aton abandons bid for control of Murray Roberts..............JAN 6. Mining tech starting to shape mid-term explosives result........................................................................JAN 7. US Nuclear, uranium mining industries wait for Trump bailout.......................................................................JAN 8. ‘Smart Mining’ Operations Begin Next Year......................... FEB 9. Mines And Geology Division Considering Development Of Manufactured Sand Industry.................... FEB 10. Syama Roaster Fully Operational........................................... FEB 11. World's first production D11 Dozer hits the dirt................... FEB 12. Decarbonization Takes Center Stage in Mining as Renewables-Plus-Storage Become CostCompetitive................................................................................ FEB 13. Global demand for piling equipment & supplies is expected to rise..................................................................... FEB 14. Hexagon acquires BMT to strengthens its Smart Mine solutions portfolio............................................... FEB 15. Rolls-Royce and ASI Mining sign MoU.................................MAR 16. Layoffs intensify at mining contractors due to a reduction of business activities......................................APR 17. Trump signs executive order to support moon mining, pulling resources from asteroid................................APR 18. Miners to further leverage mobile tech for real-time data access, survey reveals....................................APR 19. Metal prices boosted by a South African move to shut its Mines........................................................................APR 20. Expect more Earthquakes as mines dig deeper to extract ore, Vale says..........................................................MAY 21. Five workers killed after mine explosion at Chinese Coal Mine in Laos.....................................................MAY 22. Open pit wireless detonation targets safety & productivity................................................................................MAY 23. Assore chrome mine in South Africa closed after worker diagnosed with Covid-19..................................MAY www.skillings.net | 41

24. Explosives manufacturer Orica lifts profit but cuts dividend to preserve cash..............................................MAY 25. A collaboration for Deep-sea mineral mining between India and Russia.......................................................MAY 26. Metso launches free 3D online crushing and screening plant configurator...................................................JUN 27. SANY launches new range of larger excavators with three new models applicable to mining........................JUN 28. Axora launches smart mining resource centre to help mining companies recover from Covid-19...................JUN 29. Autonomous robotic refueling solution for mining trucks from Universal Field Robots........................................JUN 30. 5G technology makes mining site safer & more efficient..JUN 31. Tesla brings in heavy machinery to break ground on foundation at Gigafactory Berlin.......................................JUN 32. SASOL uses explosives to launch Enaex Africa with Chilean group .................................................................. AUG 33. Utilizing precision surface mining in the bauxite mine of Africa ........................................................................... AUG 34. Future-proof wireless connectivity can help to enhance digitised mining........................................................ AUG 35. De Beers will cut jobs due to Covid-19 crisis....................... AUG 36. Zyfra opts to use 5G on mining dump trucks...................... AUG 37. Nazomi Networks aims to expand cybersecurity for digital mining....................................................................... AUG 38. Surface Miner will be used to achieve environmentally sustainable ore extraction ........................ AUG 39. ABB collaborates with Anglo American on process automation ................................................................. SEP 40. Improving Conditions of Informal Cobolt Mines Will Create Opportunities for local communities ................SEP 41. Can copper assist in the battle against Covid-19?..............SEP 42. NASA wants to mine the moon.............................................. SEP 43. China soars and Iron Ore prices hit six year high ................SEP 44. MineStar Edge is an operational ecosystem which can be used by mining companies .......................................SEP 45. ABB and UWA join to realize future of digital mines...............OCT 46. BHP finalizes its first blockchain iron-ore trade with China Baowu.....................................................................OCT 47. Epiroc reports successful winter trial for EVs......................OCT 48. Mining efficiencies via a range of digitalization solutions.....................................................................................OCT 49. Chile demands protection for its mineworkers in light of Covid-19 ........................................................................OCT 50. South Africa's COSATU leads union protests over coronavirus impact...................................................................OCT 51. Future-proof wireless connectivity can improve 42 | SKILLINGS MINING REVIEW December 2020

52. 53. 54. 55. 56. 57. 58.

digitalised mining .....................................................................OCT Vale CFO confirms iron ore production target.....................OCT Zyfra does trial of 5G on autonomous mining dump trucks in Russian territory.............................................OCT Laser Mining the light at the end of the tunnel?..................OCT Nevada Copper says More funding needed for ramp-up................................................................................NOV Rockwell Automation releases DCS for plant operations..................................................................................NOV New Jumbo and bolter use a similar system.....................NOV Covid-19 hits drilling contractor's bottom line.....................NOV

GLOBAL ARTICLE.........................................................................DATE 59. Mining panel looks to improve accountability after Brazil disaster...................................................................JAN 60. IronRidges Resources declares exploration update on Chad gold project.................................................................JAN 61. Mineral Resources from the Ocean.......................................JAN 62. Coal Min to establish sustainable development cell to promote clean mining...................................................JAN 63. Itâ&#x20AC;&#x2122;s time to get tough on all safety offenders........................JAN 64. New Innovative Solutions reveals Russian Waste Dumps as a Valuable Source of Gold and Rare Earth Metals...................................................................... FEB 65. Celebration as lead-zinc mining project reaches its full capacity................................................................................ FEB 66. US to Sell Rare Earths to China Under Trade Deal............... FEB 67. NMDC to mine multibillion- dollar diamond deposit in Madhya Pradesh..................................................... FEB 68. Coal mining group Vinacomin urged to ensure steady power supply for economic growth......................... FEB 69. Core Gold refuses to make recommendation.......................... FEB 70. MSHA modifying metal nonmetal mining regulations to include electronic detonators........................ FEB 71. Minnesota Court Rejects Major Permits for projected PolyMet Mine........................................................... FEB 72. Brazil to Allow Mining of Indigenous Lands by European Diplomats................................................................. FEB 73. Company to close down inactive New Mexico uranium mine............................................................................. FEB 74. Westgold Resources recommences underground gold mining at Big Bell.............................................................MAR 75. As major global coal producers get ready to leave S Africa, Lack of funding leaves junior minors â&#x20AC;&#x2DC;stuck.....................MAR 76. Vermillion Gold, Inc. seeks additional four negotiated nonferrous exploration leases...........................MAR

77. Silver and Gold prices slide but miners stocks shine................APR 78. Emerald award $366m contract to MACA...........................APR 79. NSW parliamentary inquiry finds new mining laws should not proceed...................................................................APR 80. Sirius Minerals sets world record by launching vertical shaft sinking machine................................................APR 81. DTEK installs underground coal mine Wi-Fi network............APR 82. Descartes Labs Unveils its Advanced Mineral Exploration..................................................................................APR 83. Equinox Gold and Leagold Mining Combine to Create a Premier Americas Gold Producer..........................APR 84. Women In Burkinafaso Takes On More ‘Challenging’ Roles....................................................................APR 85. Sensemetrics Ventures Into Underground Mining Space ............................................................................APR 86. COVID-19: Hands-on Mine Safety Training...........................APR 87. Coronavirus patient attended Toronto mining conference, prompting warning to 25,000 attendees....................................................................................APR 88. BME builds blasting connections in N America..................APR 89. SA minister, miners Plan Covid-19response........................APR 90. Barrick hoarding supplies as mining industry braces for coronavirus.............................................................APR 91. Coal dust danger Underestimated........................................MAY 92. More than 280 sites to be tendered for mining..................MAY 93. South African mining companies gear up for unprecedented 21-day shutdown.........................................MAY 94. Merchant Mining in India and latest developments in Odisha Mining Auction 2020..............................................MAY 95. Freeport keeps Peru mine running, shuts New Mexico copper mine..............................................................................MAY 96. Covid-19 wipes $282 bn from the Top 50 mining firms......MAY 97. Brazil's Vale Warns Resumption of lost capacity could be slowed........................................................................MAY 98. Gold Mining Capricorn Nearing It's First Blast At Pilbara Gold Mine................................................................MAY 99. Metso & Outotec Outline Covid-19 Impact Ahead Of Expected Merger Completion...........................................MAY 100. BHP employees test positive for Coronavirus....................MAY 101. De Beers diamond mines win this year's industry awards for safety record..........................................................JUN 102. Ted Cruz seeks to end US dependence on China for critical minerals....................................................................JUN 103. Rio Tinto targets M&A opportunities amid Covid-19 uncertainties.............................................................JUN 104. BOT Model can boost emerging contractors, revamp mining...........................................................................JUN

Matrix Design forms new Equipment Division to supply essential support products for underground coal operations..........................................................................JUN 105. Mining shutdowns : Covid 19 hurt silver production the most, gold the least............................................................JUN 106. Unsung mining heroes brave odds to produce coal, keep power plants running......................................................JUN 107. Papua New Guinea takes over Porgera mine......................JUN 108. China’s top gold producer Shandong installs 5G network underground at its Laixi operations.......................................JUN 109. China’s coal mining industry implement 5G technologies in Yangquan Coal Mine................................................................JUN 110. Greens seek parliament approval for coal ban.................... JUL 111. Coal India to outsource underground mining operations.. JUL 112. Exclusive: Covid-19 pushes Poland to speed up exit from ailing coal - sources.................................................................. JUL 113. Sibanye-Stillwater pledges to put employees before profits during the pandemic.................................................... JUL 114. Safety concerns raised at AngloAmerican’s underground coal mines after Grosvenor explosion................................... JUL 115. OZ Minerals inks Copper export deal with Whyalla Port....... JUL 116. Tanzania Finally Grants Export of Mineral Concentrates...... JUL 117. Miners moving fast and virtuously in response to Covid-19: ICMM......................................................................... JUL 118. Biomass as coal replacement for iron ore smelting........... JUL 119. Data mining champions to drive resource exploration targets in South Australia......................................................... JUL 120. New solution for monitoring tailings dams by Inmarsat.... JUL 121. Mines are hotspots for the spread of Covid-19................... JUL 122. Benz Mining Begins Work At Quebec’s Eastmain Gold Project .............................................................................. AUG 123. QLD Mine Staff will receive compulsory lung screenings......AUG 124. IamGold endorses permitting for Côté................................. AUG 125. NQ minerals buy beaconsfield mine and plan for underground decline ............................................................... AUG 126. MPUC offers an increase to the deadline of Minnesota Powers Integrated Resource Plan .........................................SEP 127. Oren Marketplace aims to scale AI in AI Intensive fields...SEP 128. Poland to reduce coal mining due to Covid-19....................SEP 129. Komatsu Autonomous Haul System Gets Its 3 billionth Metric Ton Moved ..................................................... SEP 130. BASF helps to develops AI-Powered smart mining ...........SEP 131. Reports: Indonesia increases its mining value....................SEP 132. Stakeholders set a price upon mining initiative of Government........................................................................... SEP 133. Botswana will add 600MW of coal & solar power by 2026........................................................................................OCT www.skillings.net | 43

134. Salvador Division’s underground mine increases workload.................................. OCT 135. New Brazilian bill will tighten safety rules for mining dams................................... OCT 136. Covid-19 has impacted mining in Americas and Asia ............................................ OCT 137. Indian Steel Buyers Opt To Lobby Dehli Due To Increasing Prices ....................... OCT 138. Ban on iron ore export costs Karnataka over 10 years and miners want relief..... OCT 139. GMG issues a warning that there will be mine safety tension............................... OCT 140. Illegal miners in South Africa risk their lives for work ............................................. OCT 141. End of plans to construct the biggest copper mine in the Philippines ................ OCT 142. Restricting a ban on mining projects will help PH to recover from recession .... OCT 143. Queensland University of Technology invests in Tescan Tima system .............. OCT 144. 350 retrenched due to closing of Alabama mine.....................................................NOV 145. First Energy Metal will obtain control over gold exploration territory in Canada .......NOV 146. Clear information on Poland's coal mine closures by 2049: two-state thermal coal companies only.......................................................................................NOV 147. Gauging the mining industries response to the Covid-19 disaster .....................NOV 148. Dalian iron ore futures set for 6th monthly gain amid strong steel demand.......NOV 149. Emesent achieves ‘industry first’ flight with DJI drone............................................NOV 150. Don’t Worry the world is a long, long way from running out of gold......................NOV 151. Equatorial Guinea and Russia kick off a historic geological mapping project....NOV 152. Britain cancels proposals for new coal mine in the Northeast of England .........NOV 153. Mining county asks lawmakers for open meetings law exemption.....................NOV 154. Worley aims to assist miners on their aims to create underground mining change................................................................................................................NOV

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STATISTICS United States Exports to World of All Steel Mill Products in Thousands of Metric Tons

OCTOBER 2020 CRUDE STEEL PRODUCTION

orld crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 161.9 million tonnes (Mt) in October 2020, a 7.0% increase compared to October 2019. Due to the ongoing difficulties presented by the COVID-19 pandemic, many of this month’s figures are estimates that may be revised with next month’s production update. In Asia, China produced 92.2 Mt of crude steel in October 2020, an increase of 12.7% compared to October 2019. India produced 9.1 Mt of crude steel in October 2020, up 0.9% on October 2019. Japan produced 7.2 Mt of crude steel in October 2020, down 11.7% on October 2019. South Korea’s crude steel production for October 2020 was 5.9 Mt, down by 1.8% on October 2019. In the European Union, Germany produced 3.4 Mt of crude steel in October 2020, up 3.1% on October 2019. Italy produced 2.1 Mt of crude steel in October 2020, down 4.6% on October 2019. Spain produced 1.1 Mt of crude steel in

October 2020, down 7.7% on October 2019. In North America, the United States produced 6.1 Mt of crude steel in October 2020, a decrease of 15.3% compared to October 2019. In the C.I.S., production is estimated to be 8.4 Mt in October 2020, up 4.7% on October 2019. Ukraine

produced 1.7 Mt of crude steel in October 2020, up 5.9% on October 2019. In other Europe, Turkey’s crude steel production for October 2020 was 3.2 Mt, up by 19.4% on October 2019. In South America, Brazil produced 2.8 Mt of crude steel in October 2020, up 3.5% on October 2019.

SUSTAINABLE STEEL - INDICATORS 2020 AND STEEL APPLICATIONS

he World Steel Association (worldsteel) today publishes Sustainable steel - Indicators 2020 and steel applications. The publication features the steel industry’s sustainability performance via its 8 sustainability indicators and focuses on 3 key steel applications from a life cycle perspective: automotive, construction and packaging.

A life cycle assessment (LCA) of a product provides a full picture of its environmental performance as it accounts for resource and energy consumption as well as all emissions to air, water and land. LCA also considers all stages of a product’s life, from the raw material extraction stage to its end-of-life stage, including reuse and recycling. An LCA approach must therefore be considered for the development of appropriate legislation to ensure that the true environmental impact of products is assessed correctly and consistently, avoiding any unintended consequences. Construction, automotive and packaging are examples of three key steel 46 | SKILLINGS MINING REVIEW December 2020

market sectors where life cycle thinking is being incorporated into regulations or standards. A more widespread use of LCA in other applications is crucial to minimise the overall environmental impact of products throughout their whole life. Nine steel companies were recognised by worldsteel as Steel Sustainability Champions for their work in 2019; ArcelorMittal, BlueScope, China Steel Corporation, JSW Steel Limited, Nippon Steel Corporation, Tata Steel Europe, Tata Steel Limited, Tenaris and Ternium. Not only did they provide data for each of the indicators and for worldsteel’s life cycle inventory (LCI) database, but also a programme or initiative of these companies was shortlisted for one of the 5 categories of the annual Steelie Awards, or Safety and Health recognition programme. worldsteel uses 8 indicators to measure key aspects of the steel industry’s economic, environmental and social sustainability performance.

CRUDE STEEL PRODUCTION OCTOBER 2020. Source â&#x20AC;&#x201C; World Steel Association COUNTRY

OCT 2020

OCT 2019

%CHANGE OCT20/19

2020

% CHANGE

COUNTRY

OCT 2020

OCT 2019

%CHANGE OCT20/19

2020

% CHANGE

Austria

480 e

609

-21.2

5 198

-18.0

Mexico

1 470 e

1 454

1.1

13 713

-12.1

Belgium

550 e

705

-22.0

5 425

-18.1

United States

6 143

7 250

-15.3

59 872

-18.4

Bulgaria

40 e

-9.3

403

-16.2

Croatia

0 e

-100.0

North America

8 505

9 788

-13.1

82 879

-17.4

382

0.1

2 872

-27.5

2 784

2 690

3.5

25 131

-8.5

0 -100.0

Argentina

Czech Republic

359

268

33.8

3 617

-5.9

Finland

362

316

14.8

2 826

-6.7

France

1 065

1 181

-9.9

9 292

-25.2

Chile

105 e

112

-6.2

950

4.2

Germany

3 417

3 315

3.1

29 144

-13.9

Colombia

110 e

124

-11.0

927

-19.4

Brazil

Greece

135 e

122

10.7

1 167

2.3

Ecuador

40 e

-14.0

376

-25.7

Hungary

120 e

141

-14.6

1 307

-9.4

Paraguay

2 e

-38.4

-25.1

2 222

-4.6

16 669

-15.8

50 e

101

-50.7

437

-57.9

Uruguay

4 e

-25.7

-28.8

Venezuela

2 e

83.0

-51.4

3 479

3 466

0.4

30 767

-12.4

Egypt

670

552

21.5

6 563

8.0

Libya

-26.7

351

-26.4

546

-30.4

3 259

-39.9

Italy

2 119

Luxembourg

180 e

178

0.9

1 596

-13.5

Netherlands

551

574

-4.0

4 959

-11.3

Poland

620 e

756

-18.0

6 468

-15.7

Slovenia

50 e

-6.1

469

-12.8

1 113

1 206

-7.7

8 933

-24.3

Sweden

414

330

25.4

3 578

-11.3

United Kingdom

565 e

610

-7.4

5 750

-6.1

Other E.U. (28) (e)

470 e

723

-35.0

5216

-32.7

-5.6 112 017

-16.7

Spain

European Union (28) 12 610

13 356

Bosnia-Herzegovina

40 e

-27.3

425

-35.8

Macedonia

25 e

21.5

150

-22.6

Norway

65 e

3.7

527

-0.2

Serbia

124

160

-22.5

1 216

-24.9

Turkey

3 208

2 687

19.4

29 140

4.2

Other Europe

3 462

2 985

16.0

31 459

1.6

Byelorussia

230 e

232

-0.8

2 138

-3.8

Kazakhstan

340 e

351

-3.1

3 095

-8.9

40 e

60.0

361

14.3

Russia

6 050 e

5 798

4.3

59 327

-0.8

Ukraine

1 653

1 561

5.9

16 977

-5.5

70.2

786

48.3

8 015

4.7

82 684

-1.9

850 e

1 030

-17.5

8 911

-17.9

15 e

-24.1

138

-25.6

El Salvador

7 e

-17.5

-26.4

Guatemala

20 e

-23.1

184

-27.3

Moldova

Uzbekistan C.I.S. (6) Canada Cuba

80 e 8 393

Peru

South America

South Africa

380 e

Africa

1 100

1 166

-5.6

10 173

-15.1

Iran

2 660 e

2 080

27.9

23 794

12.6

228

-79.0

1 052

-52.1

Saudi Arabia

748

532

40.6

6 164

-10.5

United Arab Emirates

192

285

-32.7

2 203

-19.6

3 648

3 124

16.8

33 214

0.8

China

92 202

81 781

12.7 873 933

5.5

India

9 058

8 981

0.9

79 684

-14.4

Japan

7 200

8 150

-11.7

68 407

-18.4

South Korea

5 859

5 964

-1.8

55 039

-7.7

375 e

265

41.5

2 974

6.9

1 660 e

1 713

-3.1

17 325

-6.9

390 e

361

7.9

3 539

-0.5

3 372

1 594

111.5

21 898

28.8

120 116

108809

518

488

6.2

4 568

-0.6

15.3

484

-12.1

578

540

7.0

5 052

-1.8

Qatar

Middle East

Pakistan Taiwan, China Thailand Vietnam Asia Australia New Zealand Oceania

Total 64 countries (1) 161 890

151 248

10.4 1 122 798

7.0 1511043

1.4

-2.0

(1) - HADEED only. (2) - the 64 countries included in this table accounted for approximately 99% of total world crude steel production in 2019. e - estimated

Skillings Mining Review December 2020

Articles inside

Covid-19 hits drilling contractor's bottom line

Covid-19 triggers mining industry’s use of eLearning

Komatsu Ltd sees AHS as a major focus to increase mining customer produc tivity in the Covid-19 era

Iron ore rises on China demand hopes, but set for monthly losses

New Jumbo and bolter use a similar system

Rockwell Automation releases DCS for plant operations

EQUIPMENT