Techenomics International: Liquid assets

Marcos, as well as five other deposits in late-stage evaluation for development to expand the existing operations in the Marianas Complex and establish operations in the Eastern District. The extensive Cerro Negro complex has several other deposits and exploration targets, including an open-pit mine known as Vein Zone and one cyanide leach processing facility with Merril Crowe recovery yielding gold recoveries of 90 to 97 per cent. On 23 March this year, the operation was placed into care and maintenance due to travel restrictions imposed by

the Argentinian government. Essential personnel remained on site to maintain infrastructure, provide security and continue environmental management and ground control activities. In early May, the operation began implementing a safe restart plan. Newmont also has a 40 per cent stake in the Pueblo Viejo mine in the Dominican Republic. Located 100 kilometres northwest of Santa Domingo, Pueblo Viejo produces gold, silver and copper. One of the largest gold assets in the world, it began commercial production in 2013. Pueblo Viejo is

“Newmont has demonstrated its ability to adapt to change, which is truly a hallmark of our success over the last 100 years. Updating our brand represents a natural step as we approach the next 100 years”

newmont corporation adapting to change

operated by Barrick Gold Corporation, which owns 60 per cent.

Australia

Last December, less than a month after Barrick Gold agreed to sell its 50 per cent share of Kalgoorlie Consolidated Gold Mines (known as the ‘super pit’) to Saracen Mineral Holdings, Newmont followed suit and announced the disposal of its half of the KCGM JV to Northern Star Resources Limited for $800 million. “This transaction generates exceptional value and further strengthens our financial position by increasing proceeds from our 2019 asset sale agreements to more than $1.4 billion,” said Tom Palmer, president and chief executive officer. “Australia remains a core operating region for Newmont, and the sale of KCGM allows us to focus on investing in profitable growth and long-term value creation at our top-tier Tanami and Boddington complexes, in addition to our active exploration campaigns across the region.” At Boddington in Western Australia, a 3-year stripping campaign in the South Pit is progressing, which is expected to

reach higher grade late this year and continuing through 2021. Newmont approved an autonomous haulage system in February this year and its investment of $150 million began in April with an order for 29 new CAT 793 haul trucks, along with plans to retrofit seven existing CAT 793Fs. The investment will enhance safety and improve productivity to generate significant value over a 14-year reserve life. Boddington is Western Australia’s largest gold producer, delivering 703,000 ounces of gold and 77 million pounds

of copper in 2019. The mine directly employs approximately 2,000 people and is located 135 kilometres southeast of Perth. The Tanami mine is a fly-in, flyout (FIFO) operation in one of Australia’s most remote locations, 540 kilometres north west of Alice Springs in the Northern Territory. Its closest neighbours are the Aboriginal community of Yuendumu. The mine

first produced gold in 1983 and has been fully owned and operated by Newmont since 2002. Newmont is committed to the continuous improvement of its safety performance and uses technology to do this where appropriate. One example is the industry-leading robotic technology for diamond rig drilling being deployed at Tanami, which removes employees from the line of fire when drilling, and

“The Tanami Expansion 2 project will secure the mine’s future as a long-life, low cost producer, with potential to extend mine life to 2040 by adding a 1,460 metre hoisting shaft”

removes the fatality risk associated with equipment entanglement. During 2020, robotic rigs are being added to the global fleet. In March last year Newmont announced the completion of the Tanami Power Project. This included the installation of two power stations, a 66kV interconnected power line, and a 275 mile natural gas pipeline. The pipeline was built and will

newmont corporation adapting to change

be maintained by Australian Gas Infrastructure Group, while the power stations were constructed and will be operated by Zenith Energy. The successfully completed project is expected to provide the Tanami gold mine a safe and reliable energy source while lowering power costs and carbon emissions by 20 per cent. Completion of the project coincides with Tanami pouring its 10 millionth ounce of gold on the back of record production of 500,000 ounces last year. Tanami is Australia’s second largest underground gold mine and one of the most cost competitive gold producers in the world. The Tanami Expansion 2 project will secure the mine’s future as a long-life, low cost producer, with potential to extend mine life to 2040 through the addition of a 1,460 metre hoisting shaft and supporting infrastructure to achieve 3.5 million tonnes per year of production and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years beginning in 2023, and is expected to reduce operating costs by approximately 10 per cent. Capital costs for the project are estimated to be between $700 million and $800 million.

Africa

Newmont has two operations in Ghana, Ahafo and Akyem. Both continued to operate as the teams responded quickly to ensure preventive controls were in place for COVID-19. The Ahafo mine is located approximately 307 kilometres northwest from the capital city of Accra. It has two primary ore zones, Ahafo South and Ahafo North. Ahafo began commercial production in 2006 and operates both surface and underground mines. In November 2018, Subika, a new underground mine, achieved commercial production, adding highergrade, lower cost gold production at Ahafo south. Akyem is not far from Ahafo. Newmont obtained the mining lease in 2010, began construction in 2011 and achieved commercial production on schedule and below budget in October 2013. The operation currently employs more than 1,900 direct employees and contractors. In 2017, the Ghana Investment Promotions Center (GIPC) named Akyem the best company in Ghana for the second consecutive year. After delivering a record 2019, Newmont announced that the region would have lower production levels in 2020, while investment continued in the future of the Ahafo operation. Progress stripping continued at Awonsu and Subika open pits, along with underground development for the updated mining method at Subika Underground. At Ahafo North, project work is advancing remotely, with a full funds decision still expected in 2021. At Akyem, solid throughput and mill recoveries helped to offset lower grades due to sequencing during the first quarter of 2020. The site continues to drive improvements at both the mine and mill. On 30 July 2020, Newmont published its results for the second quarter of 2020, highlighting the company’s resilient operating model. “In the second quarter we delivered solid financial performance with $984 million in adjusted EBITDA and $388 million in free cash flow, both substantial increases over the prior year quarter,” said Tom Palmer, President and Chief Executive Officer. “Our focus remains on ensuring the health, safety and wellbeing of our workforce and neighbouring communities as we manage through the Covid pandemic. I am very proud of our workforce for the agility and resolve that they have demonstrated during these challenging times. “We safely and efficiently executed restart plans at our mines previously in care and maintenance and Newmont’s world-class portfolio is well positioned to deliver an even stronger second half of 2020. The ongoing favourable gold price environment amplifies our free cash flow generation, yet our discipline around capital allocation will not change as we continue to invest in profitable projects and provide shareholders industry-leading returns while maintaining a strong balance sheet.”

World

Mining Magazine

Techenomics International liquid assets

Chris Adsett, CEO, and Jason Davis, Australian Operations Manager for Techenomics International, tell Martin Ashcroft how they help customers extend the life and improve the efficiency of their equipment

Mining is a capital intensive business and in order to maximise their returns on investment, miners continually strive to improve the performance of their machinery and equipment. Downtime is expensive, not only for the intrinsic cost of maintenance or repairs, but the consequential loss from a piece of machinery being taken out of production.

Techenomics International, a company specialising in condition monitoring and fluid analysis, is dedicated to helping its customers maximise equipment performance by resolving lubrication problems. “We’ve been in business for thirty odd years,” says CEO Chris

“When we do somebody’s fluid analysis, we look to provide them with a total end result – a potential solution or a sign-off”

Adsett. “Our core business is condition monitoring, based on oil analysis and fluid analysis.” Condition monitoring and fluid analysis help miners optimise asset performance and consequently save money, by highlighting lubrication problems which can cause equipment to underperform or even fail altogether. Oil analysis provides a detailed picture of the lubricant’s properties, including measurements of any suspended contaminants and wear debris. The oil carries tell-tale signs of potential problems or failures, but so too do the coolant, grease and fuels. Techenomics uses a number of testing methods and procedures to analyse these lubricants. Performed during routine preventive maintenance, this kind of analysis provides accurate information on the condition of the machine. Huge amounts of money can be saved by reducing downtime and diverting resources to other, more pressing maintenance requirements. To maximise the potential of condition monitoring and fluid analysis, however, you must provide more than a simple

techenomics international liquid assets

set of results. If you can interpret them and offer solutions, you can help the customer understand what to do next. “Traditionally, an oil analysis laboratory will produce a pathology report,” says Adsett, “just like when you have a blood test. We put a lot of emphasis on the interpretation of those results, because nobody has a blood test for the sake of doing it. You’re looking for a maintenance platform, either in the human body or with your machinery. So, it’s the interpretation that’s important, rather than just handing the results over.” To evaluate an oil sample, Techenomics’ laboratory chemists investigate and report on the lubricant’s fundamentals and ability to perform its duties. Results and comments are then viewed by the chief chemist and evaluated by the mechanical failure analysis team. Once they are in agreement, a report is sent to the client via email. This is then uploaded to the company proprietary online software platform, Blue Oceans, where clients can view historical data anytime they like. The combination of the laboratory chemists and the knowledge of the maintenance engineers provides clients with highly detailed insight information into the sample results that can reduce

“We analyse the sample to detect things like the wear of metals and the depletion of additives”

downtime on their equipment, achieve a higher and more effective availability rate and save companies huge amounts of money.

Blue Oceans

In their classic book, Blue Ocean Strategy, published in 2004, Chan Kim & Renée Mauborgne coined the terms ’red ocean’ and ‘blue ocean’ to describe market dynamics. Blue ocean strategy is characterised as the simultaneous pursuit of differentiation and low cost, to open up a new market space and create new demand, making the competition irrelevant. “We named our online platform, Blue Oceans, after that,” says Adsett. “McDonalds is often quoted as an example of Blue Ocean Strategy. It’s low cost and universal, and it gives an ordinary person the opportunity to have a restaurant experience at a much lower cost than a traditional restaurant. “Our Blue Oceans software program provides a marketplace where we combine the equivalent of a physiotherapist, a specialist, a GP and the pathology laboratory all in one. When we do somebody’s fluid analysis, we look to provide them with a total end result. We use the oil analysis or the fluid analysis data but provide a potential solution or a sign-off. “Most customers send samples in, then we do the analysis and provide them with their data on the Blue Oceans software, which is interactive. They can log on, they can look at the entire history, they do a bit of analytics. It’s continually being updated. At the moment it’s on the Microsoft Azure platform and we’re adding bells and whistles on it for continuous improvement all the time.” The standard oil sample size is only about 100ml. “We analyse the sample to detect things like the wear of metals and the depletion of additives,” says Jason Davis, Operations Manager for Australia. “As these wear off the quality of the oil deteriorates. We also test viscosity, which is the thickness of the

lubricant. Then there are particles in the oil, so we measure particle size and shape. There’s quite a lot involved.” Techenomics can customise the package to suit customer requirements. “They’re not always the same,” explains Davis. “It depends on the equipment and what they’re monitoring.” Another development has been a customer trend towards predictive maintenance. “Preventative maintenance has been around a long time,” says Davis, “but people are moving towards predictive maintenance now. We’re trying to establish predictive methods so we can predict failures before they happen. “We can already do that to a certain extent,” he adds. “When it comes to water and fuel dilution. That obviously gives some prior warning that something is going to happen, but when it comes to component replacement, that’s what we’re looking to achieve in the future.”

Liquid tungsten

Another component in the company’s portfolio comes in the shape of the nano additive tungsten disulphide (WS2), sometimes called liquid tungsten. Added to a lubricant, the nano particles roll between the metal surfaces of engines, components and hydraulic equipment like tiny ball bearings, reducing friction by up to 30 per cent.

“When you put liquid tungsten into the lubricant it reduces the friction within the component by coating the metal surfaces and ensuring they don’t come into contact with each other. In our results we can actually see the iron drop a minimum of about 25 per cent”

Lower wear leads to longer component life and lower operating temperatures, allowing for greater productivity, while lower contaminants extend oil life. WS2 additives, manufactured by US company NIS, are available through Techenomics to suit mining, construction, industrial, energy generation, marine and transport purposes. There are WS2 additives to suit most oils and fluids, including engine oils, gear oils and greases. “We have the distribution rights for WS2 in Australia and for mining globally,” says Davis. “We’re still doing trials to find where its capabilities end. So far they seem endless. The idea of the liquid tungsten is that you put it into the lubricant and it reduces the friction within the component by coating the metal surfaces and ensuring they don’t come into contact with each other. In our results we can actually see the iron drop a minimum of about 25 per cent. Some of our customers have temperature sensors on their equipment, and after the liquid tungsten has been added, the temperature drops by around 18 per cent.” Followers of Formula One may remember advertising for a similar lubricant last season, manufactured by a German company. The additive in that case was molybdenum disulphide (MOS2), abbreviated to liquid moly.

“Molybdenum and tungsten are somewhat similar, except that tungsten is a superior material in terms of heat transfer and metal wear,” says Chris Adsett. “It’s suitable for a large mine truck engine, it’s suitable for gearboxes, it’s suitable for the crushing circuit, for power station gearboxes, all sorts of things where you have lubricants, where there’s a level of wear, where you can reduce the wear, reduce the temperature. Oil lasts longer, components last longer and you reduce costs.”

Potential

The company has traditionally focused on the mining industry, but its reach stretches further. “The type of equipment employed varies from sector to sector and from mine to mine,” says Jason Davis, “but our customers include anyone who uses high volumes of oil. We recently acquired a large contract with a bus company which has a fleet of about 2000 buses. It can be anything from locomotives to tug boats,

techenomics international liquid assets

“Molybdenum and tungsten are somewhat similar, but tungsten is a superior material in terms of heat transfer and metal wear”

passenger cars up to mining equipment, drag lines or large ships.” The company has been spreading geographically, too, over the last few years. “We’re very well represented in Australasia and we’re now operating in

South East Asia, Northern Asia and are just beginning to open up in Africa,” says Adsett. “We’ve got three labs in Indonesia because we’re trying to service different mining areas, so we’ve got a lab in each one for a faster turnaround. “We’re currently talking to a large OEM with operations in Russia,” he continues. “They’re unhappy with their current provider and we’re talking about them sending their samples to us either in Mongolia or Thailand and then we’ll provide them with their service online. So we don’t necessarily need to be down the road. The closer we are, obviously, the faster the turnaround. We aim at a one to two day turnaround but if it takes us a day or two to get the sample it means turnaround time’s a little bit longer. “So the message is, we are very active in the fluid analysis, condition monitoring space, we’ve been there a long time and we’re developing new online tools to enable the customer to get more than just a set of results.”