Australian Mining - Mar 2018

FUTURE OF MINING MATERIALS HANDLING VOLUME 110/2 | MARCH 2018

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FUTURE OF MINING MATERIALS HANDLING VOLUME 110/2 | MARCH 2018

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COMMENT

MINING PREPARES FOR THE NEXT TRANSFORMATION BEN CREAGH

Ben.Creagh@primecreative.com.au

THE LATEST KEY MINING TRENDS FROM DELOITTE DEMONSTRATE HOW MINING CAN TAKE THE NEXT STEP IN ITS RECOVERY IN 2018 AND BEYOND.

A

nother phase of growth has finally arrived for the Australian mining industry.

The trends that have emerged in mining over the past year, and look set to shape the industry in 2018, show that the industry in Australia is ready to take the next step in its expansion and continue to put the commodities downturn behind it.

Of course, mining being the volatile industry it is, these trends identified by analysts are often treated with caution as we can never be quite sure what’s around the corner.

Whichever way this anticipated growth phase pans out, Deloitte’s 10th edition of its Tracking the Trends report is dominated by a theme of how digital technology is influencing mining in Australia and globally.

Past editions of the Deloitte report often explained how mining companies needed to be aware of the potential of digital projects; now the report discusses how these projects can be executed in the most efficient way possible.

Mining, clearly, has moved forward in its digital transformation after budgets for this purpose were unleashed last year.

Most mining companies are now thinking seriously about digital projects, but many still struggle to find an effective way to implement and manage the systems they need to improve areas like safety and productivity.

However, that’s where consultants like Deloitte, as well as technology specialist companies, are coming in to collaborate with the miners.

The value of collaboration in mining has become far more understood over the past two years and is helping miners execute digital projects, find new ways to be innovative and design the future of their workforces.

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

A separate feature article in this issue highlights another trend that has emerged, or reemerged to be more accurate — skills shortages.

The upturn in activity last year has rapidly led to a range of skills shortages appearing in mining states like Western Australia, Queensland and New South Wales.

There are fears these shortages will only worsen for a variety of reasons, starting with the increasing amount of activity and production at our mine sites.

In addition, mining is up against it when sourcing tech-savvy professionals who can fill the roles needed to manage digital operations.

The next generation of workers would be the obvious demographic to look at for these positions, but they seem more interested in working for the likes of Google or Apple, or have been turned off the mining industry after hearing so many stories of redundancies during the downturn.

While most of Deloitte’s trends have a positive feel to them, the increasing issue of skills shortages is one concern that may hinder this upward momentum.

It’s one of the few concerns that requires addressing to balance the growth that has been predicted.

In this edition of Australian Mining, we explore the 10th edition of Deloitte’s Tracking the Trends report, with focus on the opening trend about how miners can bring digital projects to life.

This issue also examines the growing skills shortage challenge in mining and what impact it could have on the industry this year.

We profile Australian company Avanco and its expansion into a recognised mining company in Brazil after securing a deal with Vale.

This edition also covers the major mining projects that are at an advanced stage around Australia with short summaries outlining how they are progressing towards production this year and beyond.

And as usual, we review the latest mining technology and equipment with our regular coverage of the products available in mining.

Ben Creagh Editor

SALES MANAGER JONATHAN DUCKETT Tel: (02) 9439 7227 Mob: 0498 091 027 Email: jonathan.duckett@primecreative.com.au ART DIRECTOR Michelle Weston GRAPHIC DESIGNERS James Finlay, Blake Storey, Adam Finlay SUBSCRIPTION RATES Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 For subscriptions enquiries please call GORDON WATSON 03 9690 8766

AUSTRALIANMINING

FRONT COVER

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MARCH 2018

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CONTENTS TRACKING THE TRENDS

MINING SERVICES

16-17

DELOITTE’S ANNUAL MINING REPORT Digital transformation drives industry growth

40

BENEFITS OF LOAD TESTING Optimising gearbox and drive performance

WORKFORCE MANAGEMENT

MATERIAL HANDLING

18-20

OVERCOMING SKILLS SHORTAGES Mining’s new challenge is a familiar one

41

CONVEYOR BELT MISALIGNMENT The operational issues that can avoided

PROSPECT AWARDS

MAINTENANCE

22

A TEAM EFFORT Former excellence in safety winner

42

SHAKING THINGS UP Sinopec builds its profile in Australia

COMMODITIES

DEMOLITIONS

24-25

IRON ORE AND GOLD SPOTLIGHT What’s happening in the key commodities?

44-45

HERE COMES THE BOOM The latest detonation technology

INTERNATIONAL

MINERALS PROCESSING

BUILDING A BRAZILIAN EMPIRE Avanco establishes a presence in South America

26-27

FLSMIDTH CONTINUES MANUFACTURING Keeping up its Hunter Valley operation

46

URANIUM PUBLIC FALLOUT The latest Australian uranium developments

MONITORING

28-29

ACCURACY UNDER PRESSURE Bestech reduces downtime with sensors

47 FUTURE OF MINING WHAT WILL FEED FUTURE BATTERIES? The potential of iron oxide as battery material

FUEL MANAGEMENT

30-31

FUELLING AUSTRALIAN MINES Case studies from fuel storage specialist Fuelco

48

POLICY CHINA CHANGES DIRECTION New stringent environmental policy emerges

32-33

49

34-36

50-51

AUTOMATION ON THE PULSE New capabilities in the sensor market

INDUSTRY OUTLOOK AUSTRALIA’S NEXT MINES The advanced projects around the country

SAFETY RISING TO THE CHALLENGE The latest safety initiatives for mining

PRODUCT SHOWCASE LATEST PRODUCTS IN FOCUS Maptek BlastLogic and Weir Minerals

38-39

REGULARS

NEWS 10-14

PRODUCTS 52-53

AUSTRALIANMINING

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EVENTS 54

MARCH 2018

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NEWS

THE LATEST MINING NEWS AND SAFETY AUSTRALIAN MINING PRESENTS THE LATEST NEWS AND SAFETY AFFECTING YOU FROM THE BOARDROOM TO THE MINE AND EVERYWHERE IN BETWEEN. VISIT WWW.AUSTRALIANMINING.COM.AU TO KEEP UP TO DATE WITH WHAT IS HAPPENING. COBALT SURGES IN 2017 TO BE BEST PERFORMING METAL OF THE YEAR Cobalt prices rocketed by 130 per cent over the course of 2017, rising from $41,360/tonne (t) at the start of January 2017 to $96,000/t at the beginning of 2018.

This figure also represented an increase of $63,575 from the metal’s two-year low in February 2016.

The massive increase has been largely spurred by a tech metal boom, attributable to demand for electric vehicle batteries, which require significant amounts of cobalt.

In just over a year the global cobalt market has doubled from $US4 billion ($5.1 billion) to $US8 billion, equalling the tin industry.

Lithium also performed well in 2017, seeing a 29 per cent boost over the year. In particular, lithium company AVZ Minerals shares increased 1433 per cent from 1.5 cents per share at the start of the year to 24 cents.

As a comparison to cobalt, base metals such as copper increased by 22 per cent, aluminium by 19 per cent and nickel by 12 per cent,

COBALT PRICES INCREASED SIGNIFICANTLY IN 2017

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

according to data released by FactSet. In 2018, analysts expect cobalt prices to even out somewhat, with BMO Capital Markets suggesting that prices should average out as Glencore ramps up its Katanga project.

TAWANA TO LAUNCH LITHIUM PRODUCTION AT BALD HILL The Bald Hill lithium mine being developed by Tawana Resources and Alliance Mineral Assets in Western Australia is on track to start production this quarter.

Construction of Bald Hill’s dense media separation (DMS) plant has advanced significantly since late November, Tawana reported in January.

It announced that steelwork installation is nearing completion, piping and electrical cabling is advancing, the power station is installed and partly commissioned, the run-of-mill (ROM) pad and crusher pad is nearing completion, and mining is ramping up with daily movements reaching 16,000 cubed metres a day.

Tawana managing director Mark Calderwood described the transformation of the Bald Hill site since November as “amazing”, with construction pushing through the Christmas period.

“We are now entering the home straight with commissioning expected to commence within two months (in March),” Calderwood said.

First lithium production is targeted for Bald Hill in the current quarter, with first delivery of product expected in April 2018.

The project, a 50-50 joint venture between Tawana and Alliance, is 50km south-east of Kambalda in the Eastern Goldfields and 75km from the Mt Marion lithium project.

Tawana and Alliance executed a non-binding term sheet with a leading industry specialist for the offtake of tantalum concentrate production from the Bald Hill in January.

The buyer has agreed to purchase a minimum 600,000 pounds (lb) of tantalum concentrate in aggregate from April 2018 to December 31 2020, or all production available if delivery is below this amount.

AUSTRALIANMINING

GUPTA’S MINING DIVISION SECURES SA IRON ORE APPROVALS Two new iron ore mine leases have been granted in South Australia, in a boost to the local Whyalla steelworks.

Sanjeev Gupta, the British industrialist and head of SIMEC Mining, has gained approval for the projects, Iron Sultan and Iron Warrior, which between them will support 56 permanent workers and 130 contractors.

Iron Sultan will create hematite iron ore suitable for use in the creation of magnetite at the Whyalla Plant that will help to lower steel costs for the Gupta-owned GFG Alliance, while Iron Warrior is expected to export up to 1.5 million tonnes (Mt) of iron ore a year.

Construction on both mines is expected to begin this month. According to South Australia’s Mineral Resources Minister Tom Koutsantonis, the approvals demonstrated “the commitment of the new owner to develop its South Australian iron ore assets and create a more sustainable steelmaking business”.

The leases are the latest signs of GFG Alliance’s aggressive Australian expansion. Earlier this month, SIMEC acquired the Tahmoor mine in New South Wales from Glencore, and in September last year completed the purchase of Arrium Group of Companies from KordaMentha Restructuring as part of GFG’s plans for vertical integration.

Perhaps most notable is Gupta’s recent interest in the Holden car plant in Elizabeth, SA, which closed down in October last year — the GFG head is a noted proponent of electric vehicle technology. Together, with GFG’s other recent purchases, the acquisition of the plant could lead to the creation of a South Australian EV production hub.

“We are incredibly excited and supportive of the GFG Alliance’s bid and subsequent plans to ensure the continuation of our very proud history of automotive excellence and innovation in South Australia,” said Koutsantonis in a letter regarding Gupta’s potential purchase of the former GM Motors plant.

“We believe that the GFG Alliance’s plans would put South Australia at the forefront of the inevitable transition of the Australian market to electric vehicles and ask that all due consideration be given to their bid and the potentially significant benefits to the automotive industry and broader community in South Australia.”

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NEWS

MOUNT GIBSON KEEPS KOOLAN ISLAND RESTART ON TARGET Mount Gibson Iron’s Koolan Island restart project in Western Australia’s Kimberley region remains on track to achieve first sales in the March quarter of 2019.

Operations at Koolan Island were suspended in November 2014 following a seawall failure that led to the hematite mine’s main pit being flooded.

Mount Gibson announced it would spend $97 million to redevelop and restart the operation last April, creating around 400 jobs in the process.

Since launching site works at Koolan Island last June, Mount Gibson has ramped up construction activity, with the project around 28 per cent complete at the end of 2017.

In its fourth quarter 2017 update, Mount Gibson said activities during the threemonth period focused on the initial stage of the seepage barrier construction.

“The project currently remains on track to achieve first sales in the first quarter of calendar 2019,” Mount Gibson chief executive officer Jim Beyer said.

“As we have stated previously, the high quality of ore from Koolan Island will set us apart in a market that is increasingly geared to premium quality iron ore products.”

Meanwhile, Mount Gibson recorded quarterly sales of 841,000 tonnes of iron ore during fourth quarter 2017, all from its operations in WA’s Mid West region — Extension Hill and Iron Hill.

Mount Gibson continues to ramp up production at Iron Hill, which is 3km from the depleted Extension Hill pit, towards full capacity this year.

The company secured a second off-take agreement with China’s SCIT Trading for product from Iron Hill last December.

“Mount Gibson again delivered a solid performance in the December quarter and half year, as Iron Hill ramped up to full capacity, work on the high-grade Koolan Island restart project progressed, and shareholders received a $22 million fully franked dividend,” Beyer said.

ANGLO APPOINTS METALLURGICAL COAL CEO Anglo American has appointed Tyler Mitchelson as the next chief executive officer of its metallurgical coal business.

Mitchelson, who will start the new role on April 3, is currently Anglo’s group head of integration and business planning, based in London.

He joined the company in 2014 and prior to his appointment had an extensive career in commercial and business development roles in the resources sector, including as president and CEO of Royal Nickel Corporation in Canada.

Anglo bulk commodities CEO Seamus French commented: “Building on our record operational performance in 2017, Tyler will bring his extensive business development and commercial experience to growing business value and optimising our metallurgical coal assets in Australia and Canada.”

Mitchelson is a chartered accountant and completed a Bachelor of Commerce at the University of Manitoba in Canada.

The incoming CEO said: “I am looking forward to joining Anglo American’s metallurgical coal business in Brisbane, working with our experienced operational team to build on their outstanding performance in 2017 and define longer-term opportunities for the business.”

French also paid tribute to outgoing metallurgical coal CEO, David Diamond, who will leave Anglo after 17 years. He joined Anglo with the acquisition of the Shell Coal Australian Assets in 2000.

He said: “I would like to thank David Diamond for his outstanding leadership of our metallurgical coal business, delivering record safe production and business performance in 2017.

“He has steered the business and supported our people through a challenging period. The business is now well positioned as a world-class business with an excellent future.”

RIO TINTO LAUNCHES NEXT STEP OF MONGOLIAN EXPANSION Rio Tinto has opened a new office in the Mongolian capital of Ulaanbaatar, and plans to expand its employee base by upwards of 80 people throughout 2018.

The office is intended to support the development and exploration of new projects, separate to the local 450,000 tonne-a-year (t/y) Oyu Tolgoi copper-gold project that is already in production.

Jean-Sébastien Jacques, chief executive of Rio Tinto, called Mongolia one of the company’s most strategically important markets.

“We have invested more than $7 billion in Mongolia since 2010,” he explained, “including salaries, supplier payments, investment in the community, and $1.5 billion in taxes, royalties and other payments to the government of Mongolia.”

“We are proud to partner with Mongolia to build one of the best copper and gold mines in the world, supplying the essential materials used in everyday life.”

Munkhtushig Dul, a storied businessman who has worked with Noble Group, the Mongolian Stock Exchange and the Executive Office of the National Security Council, has been appointed to lead the office as Rio Tinto’s regional director, and is expected to co-ordinate with the

team at Oyu Tolgoi.

The Oyu Tolgoi mine, an open-pit and underground project in the Gobi Desert that is the largest financial undertaking in Mongolian history, was discovered in 2001, and began construction in 2010.

Rio Tinto owns roughly two-thirds of

the project through Turquoise Hill Resources (the English translation of Oyu Tolgoi), in which Rio Tinto has a majority share, with the other third of the mine owned by the Mongolian Government.

Dul said he was excited to join the company. “Through its shareholding

in Oyu Tolgoi, Rio Tinto has invested heavily in Mongolia and is committed to evolving this into a deep and mature partnership for the long term,” he said.

“I am looking forward to helping shape the pathway for Rio Tinto’s growing investment in our country.”

RIO TINTO IN MONGOLIA. COPYRIGHT © 2017 RIO TINTO

AUSTRALIANMINING

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MARCH 2018

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NEWS

LUCAPA UNVEILS SIGNIFICANT DIAMOND DISCOVERY IN KIMBERLEY REGION

OZ MINERALS SEEKS CARRAPATEENA GROWTH AS CONSTRUCTION RAMPS UP

Lucapa Diamond Company has made a diamond-bearing lamproite discovery at its 80 per cent owned Brooking diamond project in the West Kimberley of Western Australia.

Perth-based Lucapa reported near-surface lamproite intersections in drilling at the Little Creek prospect, which is within 50km of the Ellendale diamond mine.

Lucapa recovered 119 diamonds, including seven macro-diamonds of up to 1mm, from micro-diamond analysis of 86.8kg of core sample from one hole at Little Spring Creek.

The company said discovery of diamond-bearing lamproite validated results from previous surface sapling programs at Little Spring Creek, where 24 diamonds and highly-anomalous concentrations of lamproite indicator minerals were recovered.

Lucapa managing director Stephen Wetherall said he was delighted with such spectacular results from the Brooking drilling program.

“The main goal of our drilling program at Brooking was to identify lamproitic material, which could be the primary source of the diamonds and indicator minerals recovered from the earlier surface sampling programs,” Wetherall said.

“The high concentrations of micro-diamonds and macro-diamonds recovered from the Little Spring Creek drill core sample is extremely encouraging and the counts are very similar to the MIDA results from the Ellendale E9 and E4 diamond pipes, 50km west in the West Kimberley lamproite field.

“We now look forward to follow-up programs at Little Spring Creek to identify the extent of the diamondiferous lamproite body and to further assess its diamond content when conditions permit.”

The follow-up drilling and bulk sampling programs will take place following the wet season in northern WA, Lucapa said.

The company believes the results from the Little Spring Creeek target also enhance the prospectively of the other targets within the Brooking project.

It plans to submit drill core from the Santa Fe and North East Creek prospects for further analysis while additional field work is planned across the broader project.

OZ Minerals is planning to exploit the potential of the broader Carrapateena province in South Australia as it progresses construction of the copper-gold development in 2018.

The company, in its 2017 fourth quarter update, reported that its focus at Carrapateena remained on progressing construction of the project, on time and within budget.

OZ launched construction of Carrapateena last year after approving development of the $916 million operation in August.

Managing director and chief executive officer, Andrew Cole, outlined OZ’s broader strategy at the site.

“2018 will see renewed focus on the Khamsin and Fremantle Doctor prospects and additional exploration at Punt Hill, the newest of our joint ventures, 50km south of Carrapateena,” Cole said.

“We will also begin investigating future options for the remainder of the Carrapateena mineralised zone.”

Carrapateena has been forecast to produce 65,000 tonnes (t) of copper and 67,000 ounces (oz) of gold a year over its 20-year mine life once it is operational.

The project, which OZ expects to commission by fourth quarter 2019, is forecast to create around 1000 jobs during construction.

Meanwhile, OZ met its copper production guidance for the third consecutive year in 2017, while also exceeding its target output for gold.

The Adelaide-based company, which operates the Prominent Hill copper-gold mine in the state’s north, produced 112,008t of copper and 126,713oz of gold during the year.

“Prominent Hill delivered at the top end of production guidance and at the bottom of cost guidance, enabling us to take advantage of improved copper prices and grow revenue to over $1 billion,” Cole said.

“Prominent Hill is now a reliable, long life, low cost producer. In November, we announced an 18 per cent increase in underground ore reserve, enabling as expected underground production rate of 3.5–4Mt/y from 2019 through to 2029.”

KIRKLAND LAKE TARGETS 400,000OZ A YEAR AT FOSTERVILLE Kirkland Lake Gold plans to increase production at the Fosterville gold mine in Victoria to more than 400,000 ounces (oz) within three years.

The Canadian company this week released its guidance for 2018, outlining increased production, improved unit costs and higher levels of expenditure to support its growth strategy towards one million ounces in the next five to seven years.

In 2018, Kirkland Lake has forecast its overall production to grow to 620,000oz, with operating cash costs and all-in sustaining costs of $425–$450 and $750–$800/oz, respectively.

Fosterville is again expected to be Kirkland Lake’s top producing mine, with the company targeting between 260,000–300,000oz at the Victorian operation in 2018.

AUSTRALIANMINING

Kirkland Lake president and chief executive Tony Makuch outlined the company’s plan at Fosterville, as well as its Canadian gold mines, beyond 2018.

“We see a clear path to reaching over 400,000oz/y from both Fosterville and Macassa. Fosterville is targeted to reach this level within three years as we achieve full production at the Swan Zone and commence

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production from additional mining fronts,” Makuch said.

Kirkland Lake is also working towards resuming operations at the Cosmo mine in the Northern Territory where it is advancing an exploration program, Makuch added.

“In support of our growth plans, we are increasing our commitment to exploration in 2018, with a focus on Australia,” Makuch said.

“At Fosterville, we are planning extensive exploration programs aimed at continuing to grow the Swan Zone, expanding Harrier South, extending the Lower Phoenix and Robbin’s Hill mineralisation and investigating a number of other regional targets.

“We will also be completing significant exploration work in the Northern Territory of Australia, where we will be developing into, and drilling, the Lantern deposit at the Cosmo mine, and drilling several additional high-potential targets in the region.”

Kirkland Lake has budgeted to spend between $75–$90 million on exploration in 2018, with $60–$75 million to be used at its Australian assets.

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TRACKING THE TRENDS

THE DIGITAL TRANSFORMATION DRIVING MINING GROWTH DELOITTE’S MINING TEAM BELIEVES THE INDUSTRY IS CHANGING FOR THE BETTER AND ITS DIGITAL TRANSFORMATION IS A KEY TREND GUIDING THIS. BEN CREAGH WRITES.

M

ining is poised for growth, according to Deloitte’s 2018 Tracking the Trends report.

The latest issue of key mining trends, the 10th edition in the series, focuses on how the Australian, and global marketplace, is navigating this expansion, while identifying strategies that can be used during the ongoing industry recovery.

With this growth, rapid change will follow, Deloitte explained, adding that a common modern-day theme — digital technology — would be at the core of this transition.

The industry has progressed from the need for miners to understand the importance of digital projects to how they ‘bring digital to life’ at their operations.

How mining can ‘bring digital to life’ is the opening trend for Deloitte in 2018, and one that remains a constant theme for many of the topics that follow it in the report.

While digital is an ongoing trend in the current mining environment, Deloitte points to the importance of effectively using the data technology creates, including the ability to

organise, manage and process it. How do mining companies use data-driven insights to drive value?

Deloitte Australia national mining leader Ian Sanders described digital technology as an important competitive advantage that miners must capitalise on.

“If you look at the majors, yes, they have the programs of activity up and running. They are looking at their investment dollars, particularly how they invest them and the competitive nature of these investments,” Sanders told Australian Mining.

“Digital is one of those competitive elements — how much do they actually spend on automation? How much do they spend on the back office digital? how much do they actually look at their ecosystem of suppliers and customers, government, other stakeholders and co-mingle that investment within digital is really important?”

Deloitte’s report explained that transitioning to the future digital mine typically started by focusing on core mining processes with the goal of automating physical operations and digitising assets.

It believes the real value from digital technology comes from

IT’S AMAZING HOW COLLABORATION IN THE INDUSTRY HAS TRANSFORMED OVER THE LAST 18 MONTHS.” unlocking the insights within data by rethinking the way information is generated and processed.

Many major miners have been on the front foot in this area, according to Deloitte, with the report using the example of a global company that identified latent system potential across its pit, rail and port network by effectively utilising data.

However, the report adds that many mining organisations are not yet using all the data they are capturing from operational systems, or are still struggling to improve reporting from legacy systems.

It urges these miners to create an information layer, or a so-called “digital nerve centre” that brings together data across the mining value chain in multiple time horizons to improve planning, control and decision making.

Despite the challenges, Sanders believes the full spectrum of mining companies is now looking at digital

Image: Fortescue Metals Group

FORTESCUE AT ITS PERTH OPERATIONS CENTRE. IMAGE: FORTESCUE

AUSTRALIANMINING

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technology projects — the majors, mid tiers, juniors and services companies.

“I think you have to. Firstly, to be relevant, and secondly, to survive,” Sanders said. “Whether you are a major, junior or mid-tier you are absolutely thinking about it because everyone is thinking about efficiency, and digital is a core element of becoming more efficient.

“There are some mid tiers and juniors which are very active when it comes to digital and technology.

It’s not as though they have been left behind, it’s how can they extract the investment dollar to best leverage digital within their organisation?”

Sanders said the tech-focused partnerships that had been formed over the past 18 months were a step in the right direction for miners wanting to extract more value from their digital operations.

For example, diversified miner South32 last year signed a threeyear strategic partnership with tech experts, GE, to develop the company’s digital transformation.

With 10 operations across five countries, South32 viewed the collaboration as an opportunity to implement innovative solutions that enhance safety and productivity.

“It’s amazing how collaboration in the industry has transformed over the last 18 months,” Sanders said, “and how more freely IP, people, platforms and so on are being shared to get a better outcome for all of the parties involved.”

“Part of it is doing it smarter, but part of it is actually necessary because as soon as something digital has been created someone is looking at how they can better it — that’s technology.

“The competition will look at how they can better that piece of technology, that operation or that function and leverage that to their competitive advantage.” AM

TRACKING THE TRENDS

A SNAPSHOT OF DELOITTE’S TOP 2018 TRENDS GALAXY RESOURCES’ PROCESSING PLANT FOR LITHIUM, ONE OF THE COMMODITIES OF THE FUTURE.

D

eloitte’s Tracking the Trends report has followed the mining sector over the past decade as commodity prices reached both historic highs and lows.

After hitting the bottom of the cycle, this year’s report identifies strategies mining companies can take to smooth out the recovery, while also exploring the potential industry disruptors on the horizon.

Here is a snapshot of each of Deloitte’s top mining trends in 2018: • Bringing digital to life: data — and the ability to organise, manage and process it — is rapidly becoming a competitive differentiator. Mining companies must embed digital thinking into the heart of business strategy and practices to transform the way corporate decisions are made.

• Overcoming innovation barriers: innovation is necessary for the industry to transform, and it isn’t confined to technology. It includes the adoption of more innovative approaches to engaging with stakeholders, re-envisioning the future of work, and identifying the commodities that will be in greatest demand going forward.

The need to demonstrate near-

term returns, combined with a traditionally risk-averse culture that does not foster collaboration, are hindering efforts to innovate within the industry.

a cost of compliance, companies must determine how to make a concrete social impact that adapts to the benefit of different stakeholder groups.

• The future of work: while the adoption of digital solutions, such as robotic process automation, autonomous equipment and artificial intelligence will augment performance in the mining industry, it also has potential to cause upheaval. Rather than eliminating jobs though, it will likely translate into concerted efforts to retrain people to use technology and redesign jobs at the mine and in the back office.

• Water - finding sustainable solutions to a pressing issue: as the UN estimates that water scarcity impacts about 40 per cent of the global population, mining companies must enhance their approach to water management through innovative methods designed to reduce, reuse and recycle water in water-scarce regions, and to contain and treat wastewater to prevent spillage or contamination of downstream water flows.

• Shifting perceptions: to rebuild trust with employees, investors, communities, governments and the public, many leading mining companies are embarking on efforts such as taking decisive public stances around corporate social responsibility, adhering to voluntary sustainability standards, and passing shareholder resolutions regarding increased disclosure on climate change.

• Transforming stakeholder relationships: rather than approaching relationships with communities and governments as AUSTRALIANMINING

• Changing shareholder expectations: performance measures should reflect varied objectives to create value for multiple constituencies — including customers, employees, suppliers, and communities — not just shareholders. This would free up boards to focus more on long-term strategies, succession planning and leadership development, while linking executive compensation to broader corporate goals — including those related to good corporate citizenship and ethical behaviour.

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MARCH 2018

• Reserve replacement woes: as supply constraints plague the industry, mining companies will need to find a more agile way of replacing reserves — one that allows them to engage in exploration and development without sinking in large amounts of capital for long periods of time.

• Realigning mining boards to drive transformation: Boards mired in old ways of thinking will increasingly struggle to fulfil new mandates, such as taking a more active role in challenging the executive team on topics from corporate strategy to digital disruption, talent management, and emerging risk factors. Diverse perspectives are necessary if mining boards are to effectively challenge organisational assumptions, assess the validity of new ways of thinking, and help determine if the organisation is taking on too much risk, or perhaps not enough.

• Commodities of the future – predicting tomorrow’s disruptors: Turning disruption into opportunity requires a long-term view capable of assessing how emerging market trends may affect the demand for specific commodities. AM

WORKFORCE MANAGEMENT

OVERCOMING THE NEXT MINING SKILLS SHORTAGE MINING HAS EMERGED FROM THE DARK DAYS OF THE DOWNTURN TO BE GREETED WITH A FAMILIAR CHALLENGE — SKILLS SHORTAGES. AUSTRALIAN MINING EXPLORES THE SITUATION.

T

he human resources trends that emerged in mining last year are set to intensify in 2018.

A lot changed for mine workers in 2017 as the previously common reports of redundancies became much rarer.

Instead, the industry started to see a situation develop that many would have thought impossible during the mining boom: leading miners like Roy Hill targeting candidates without previous mining experience.

But that was a by-product of another familiar trend from the past that had

re-emerged — skills shortages.

By mid year, recruitment agencies were reporting that roles like drill and blast technicians, boilermakers, mechanical, electrical and heavy diesel fitters, and even geologists were in short supply in various parts of the country.

The significant lift in activity around the country instigated the latest skills shortage, as the mining construction boom translated into increased production from new operations and existing mines restarted to capitalise on improving commodity prices.

Hays Australia WA mining leader

Chris Kent said the growth in the number of operating mines over the past few years was the key factor that led to the emergence of a skills shortage in several areas.

“We are at record production levels — therefore, unless a component of a mine supply chain has been disrupted by technology then a record level of production workers is needed as well,” Kent told Australian Mining.

“That’s where it is coming from.

Obviously, we also lost a lot of people from the sector when those jobs weren’t around for the last four or five years.”

EMPLOYMENT CONDITIONS HAVE STARTED TO RECOVER FOR GEOLOGISTS.

AUSTRALIANMINING

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MARCH 2018

Despite output reaching new heights, another wave of new mine developments is on track to add to Australia’s production profile this year.

It has been common to see growth in commodities like iron ore, coal and gold over the past decade, but Australia will soon also welcome diverse operations in metals like lithium.

“New mines are going to further heighten the skills shortage, especially with the emergence of new commodity classes,” Kent said.

“The recovery started with iron ore

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WORKFORCE MANAGEMENT

and coal, but they are the commodities that have the scale to utilise some of the technological advances.

“When it comes to gold, copper, lithium and nickel, they often have more traditional supply chains and that’s just a straight upswing in personnel requirements.”

Australia’s skyrocketing production isn’t the only factor causing skills shortages. Technology and automation are also contributing to the skills gap, according to Newport Consulting, and have the potential to grow as a concern.

In its latest Mining Business Outlook Report, Newport stated that sentiment in the mining industry was positive, with the number of miners showing cautious optimism increasing by 55 per cent since 2015.

The report also found that almost three quarters of industry leaders were showing renewed confidence in the sector’s growth.

However, it looks as though skills shortages, along with cost pressures, may be a threat to this growth in confidence.

Newport consulting managing director David Hand believes a spate of mining companies are concerned that Australia will face a growing skills gap, particularly in the areas of technology and automation.

“We spoke to many companies of all sizes that voiced concern over a widening skills gap, giving way to a pressing need to upskill and re-train the workforce. Miners must be able to meet the new digital demands of Australia’s mining future,” Hand said.

With a growing gap in the number of technical employees trained to manage future autonomous roles, Hand added there were signs that mining was “getting on the front foot” to ensure its workforce remained agile and flexible.

“Rio Tinto is a prime example of a company leading the field in this area, having recently partnered with the WA Government and TAFE Australia to provide vocational training in robotics for mining workers. The government should follow Rio Tinto’s lead to close this growing skills gap, which is occurring because of technology disruption,” Hand said.

A key takeaway from the report was the push from mining leaders to embrace new technology, with automaton continuing to become vital for operations.

Automation and Big Data were the leading priorities, with 21 per cent of respondents believing automated haulage vehicles will be the top technology influence to impact the market this year.

THE COAL SECTOR IS FACING RECRUITMENT CHALLENGES.

Drones, which are used to map, survey and explore mines, were considered another key area for investment.

Kent said the challenge mining faced when sourcing tech-savvy personnel was competition with other industries, such as finance, manufacturing and agriculture.

“In some ways mining is moving relatively late into this area,” Kent said. “That means we are competing with lots of different industries in that regard.

“To date, that competition has been largely led from a mining perspective by the majors, but as technology develops and advances it generally gets cheaper.

“I think we might see more of the mid-tier and smaller players start to increase their technology platforms, and therefore be seeking skills in that area as well.”

The flipside of skills shortages generally means a couple of things for mine workers — more opportunities for permanent work and higher salaries.

The marketplace for permanent work has seemingly made a welcome return already. Human resources agency DFP Recruitment reported that permanent job AUSTRALIANMINING

vacancies increased by 44.5 per cent during 2017 after a 4.4 per cent improvement in December.

The rise in permanent vacancies lifted this category to its highest point on DFP’s jobs index since mid2015.

“While this level infers that vacancies are still 18 per cent lower than late 2013 when measurement commenced, it is still a massive turnaround after three years of decline,” DFP explained.

Temporary and casual opportunities at DFP were also significantly higher in 2017, increasing by 31.2 per cent. Iron ore was the standout commodity when it came to increasing job prospects in 2017. Demand shot up 67.6 per cent over the 12 months.

Evidence that mining salaries have increased isn’t as clear. However, Kent indicated that bulk commodity sectors like coal were at least assessing salary rates.

Kent said coal’s challenge was that salaries dropped so low during the downturn that many workers in the sector moved to other industries with similar wages closer to home.

“In Queensland, coal has lost a lot of people within their own state to rival industries,” Kent explained.

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MARCH 2018

“What they are trying to do is work on staff engagement strategies to retain people and constantly reassess their wage rates.

“They are also assessing rosters to ensure they have familyfriendly rosters. The intention in Queensland, and particularly in coal, is for residential or drive-in, drive-out (DIDO) workforces, which is probably more possible when the employer holds all the cards.

“Maybe when candidates start to hold more of the cards because they have more options that could come under threat.”

While more opportunities and rising salaries may be a positive for mine workers, Kent warned of the counter-risks for mining companies if the increase stemmed from worsening skills shortages.

“The end result of a chronic shortage is significant wage growth but also a significant drop in productivity and efficiency at the mines. There are some interesting times ahead in the next year or two,” Kent said.

Sounds like a similar situation to what the industry experienced during the mining boom, only this time it is very unlikely Australia will hit those peaks again. AM

PROSPECT AWARDS

SAFETY IS A TEAM EFFORT TEAM GROUP WON THE 2016 PROSPECT AWARD FOR EXCELLENCE IN MINE SAFETY, OH&S FOR ITS STACKER RECLAIMER PROJECT AT THE PAITON POWER STATION IN INDONESIA. AUSTRALIAN MINING FINDS OUT WHAT’S BEEN HAPPENING WITH THE COMPANY SINCE.

THE SR2 BEFORE REFURBISHMENT

BY TEAM GROUP.

T

he engineers at contract company TEAM Group specialise in scale, proudly stating that “no job is too big or too small” for them.

Its near-complete refurbishment of the SR2 stacker reclaimer in Paiton, Indonesia, definitely skewed towards the larger end of the scale.

And it wasn’t even the only award TEAM Group was up for that year, having been nominated for Contract Miner of the Year for its Moranbah project management.

With an excess of 300,000 manhours and over 670 critical lifts, TEAM assembled two stackers and two reclaimers in China and had them shipped to Port Mackay in Queensland for finalisation. It was a huge and professional effort, but in the end, it was the stacker reclaimer restoration that eventually secured the team its gong.

Initially designed as a smaller scale repair job for Anglo American, the project grew exponentially in scope over time. The original commission was for repairs on the SR2 (stacker reclaimer 2), when was damaged when a forestay broke and the boom collided with the stockpile.

While the machine was down for repair it was decided by the client to take the opportunity to instigate

THE SR2 IN THE FINAL STAGES OF REFURBISHMENT.

some improvements and upgrades; slew bearings were replaced as were the drives, and the electrics were upgraded; plate suspension straps with galvanised bridge strand cables and adjustable rope tensioners replaced the old ones; and the boom and its suspension were massively improved.

The net result saw the machine became much improved over what it was originally, providing the Paiton power station with two reliable stacker reclaimers that gave it a degree of added security should the other machine break down.

According to Tom Chambers, all has been quiet on the Paiton front since the project wrapped up.

“There has not been any feedback since commissioning, which is a good sign as there have obviously been no significant issues,” he explained to Australian Mining. “Further to that we have been invited to quote for other recovery projects in Indonesia.

In addition to its Indonesian ventures, TEAM Group has been expanding even further on a wide range of projects, having expanded into larger premises with a 2000-square-metre workshop with AS3800 accreditation to add to TEAM’s triple ISO qualifications, as well as a 70-tonne O/H crane.

Chambers added that the team at TEAM is looking forward to AUSTRALIANMINING

another promising year as they step into 2018.

“The improvement in the mining industry should flush more projects out into the open, many of which had been mothballed during the downturn,” he explained. “We are in fact already seeing more projects come to light and our hope is that that trend continues.

“We have an on-going relationship with Anglo American and we are

currently helping them with some engineering type projects as well as general maintenance and repairs.” AM A celebration of the mining industry’s best and brightest, the 2018 Australian Mining Prospect Awards will take place at Sydney Cricket Ground on Thursday October 18. It will be the 15th anniversary of the event, and nominations are now open.

Please check prospectawards.com.au for more information.

AN SR SIMILAR TO THE TYPE TEAM WORKED ON IN PAITON.

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MARCH 2018

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COMMODITIES

CARPENTARIA FEEDS OFF IRON ORE’S CLASS DIVIDE THE GLOBAL IRON ORE MARKET IS TRANSFORMING DUE TO CHINESE POLICY CHANGES. CARPENTARIA RESOURCES WANTS TO CAPITALISE ON THIS SITUATION AT ITS HAWSONS PROJECT. AUSTRALIAN MINING REPORTS.

H

igh-quality iron ore is increasingly in high demand.

As China attempts to reduce pollution and increase the efficiency of its steelmaking industry, the country’s demand for high-quality iron ore to feed its manufacturing facilities has strengthened over the past year.

Beijing’s increasingly stringent environmental policy was significant news for the iron ore industry last year and has continued to influence the sector in the early months of 2018.

In January, China reinforced its environmental approach by putting a new emission licence and environmental tax law into effect.

According to research consultancy Wood Mackenzie, the Chinese move added more pressure on its steelmakers to comply, reinforcing their preference for high-grade ore.

Chinese steelmakers, in addition, are pushing for higher productivity and are in the midst of an ongoing shift to larger, more efficient furnaces — two elements adding to their demand for high-quality product.

Iron ore’s class divide was clear in first quarter 2018. At one stage, the spot price for benchmark 62 per cent iron ore fines was $US76.80/tonne (t), while the price for lower grade 58 per cent fines was $US42.30/t.

For iron ore developer Carpentaria Resources this separation in the marketplace has come at a good time as it advances the Hawsons Iron project near Broken Hill in New South Wales.

Brisbane-based Carpentaria, which released its pre-feasibility study (PFS) for Hawsons last July, outlined the high-quality nature of the $1.4 billion magnetite project on a global scale with product at 70 per cent iron.

An assessment of the project by independent analysts CRU also identified Hawsons as the world’s leading undeveloped high-quality iron ore concentrate and pellet feed project in terms of cost and quality.

The PFS put the costs for its

Broken Hill project in the first quartile of CRU’s global iron ore supply cost curve, adjusted to the benchmark price for 62 per cent fines.

Carpentaria managing director Quentin Hill said the ongoing transformation of China’s steelmaking industry was working in the company’s favour as it progressed development of the Hawsons project.

“The real benefit for us is that China is now in the pellet feed market,” Hill told Australian Mining.

“Our project produces the world’s best pellet feed and analysts are now predicting that there’s going to be demand for 70 million tonnes (Mt) of imported pellet feed into China.

“What that does is put pressure on the existing pellet markets, so Japan, Taiwan and the Middle East — now they have to compete for ore with China. Therefore, the cost of the material is going up and up.”

The promise shown in last year’s PFS at Hawsons was four years in the making for Carpentaria, which decided in 2013 to focus more on the iron ore project instead of precious and base metal opportunities it was exploring in Australia.

With its PFS complete, Carpentaria has since been working towards a bankable feasibility study (BFS) for Hawsons, with the company now aiming to attract funding for this crucial activity.

It expects the BFS will take around 18 months to complete, for release in mid-2018, when the iron ore market will have likely continued its current transition.

“In 18 months, the market will have turned further in our favour.

In terms of construction funding for the project we will be very well placed to attract the funding to build it by then,” Hill said.

And while Carpentaria’s sights may be on becoming a significant producer in the global iron ore market, the company also has an important aim locally.

“We would love to deliver for Broken Hill as well,” Hill said.

“Everyone that has lived at Broken AUSTRALIANMINING

Hill grows a fondness for the place.

It could do with another 50 years of mining and we want to give that to Broken Hill for sure.”

Carpentaria currently owns a 66.5 per cent interest in Hawsons, while partner Pure Metals holds the remaining 33.5 per cent. AM

MD QUENTIN HILL AND CHAIRMAN NEIL WILLIAMS EXAMINE CORE SAMPLES.

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COMMODITIES

WHY CRYPTOCURRENCIES ARE NO SUBSTITUTE FOR GOLD HOW DO CRYPTOCURRENCIES LIKE BITCOIN COMPARE TO GOLD AS AN INVESTMENT? AUSTRALIAN MINING FINDS OUT MORE.

G

old performed well in 2017, with its value increasing by 13 per cent.

The precious metal’s price rise was, however, no match for bitcoin, which enjoyed a 13-fold increase in value by the end of the year.

Despite the meteoric rise of bitcoin in 2017, which has since dropped significantly in value this year, the World Gold Council (WGC) has outlined why it, and other cryptocurrencies, are no substitute for gold as an investment.

WGC, which released a report focused on the topic, believes there are several reasons why cryptocurrencies “are no substitute for gold,” including that the precious metal is less volatile, has a more liquid market, demand is more diverse, supply is responsive, and it is regulated.

Here, Australian Mining breaks down each of WGC’s reasons to support gold:

Gold is less volatile

According to WGC, gold has appreciated 10 per cent a year, on average, since the 1970s and its price volatility has been “relatively tame” over the past four decades.

Bitcoin, meanwhile, has enjoyed rapid growth in recent years, particularly in 2017 as mentioned.

However, WGC explained its price has also been extremely volatile, falling by more than 40 per cent in a month since mid-December.

“Bitcoin moves, on average, five per cent each day,” the WGC report explained.

Gold demand is diverse

Gold has a 7000-year history as an asset and a long-standing role as money, WGC reinforced. It is owned by banks and investors, while also being used as jewellery — still the largest source of demand.

Bitcoin and other cryptocurrencies, in contrast, are designed for use as tokens in electronic payment systems, a potentially useful characteristic, WGC reported.

“For now, however, the opportunities to spend bitcoin are rather limited, and genuine transactions are quickly converted into fiat currencies due to bitcoin’s price volatility,” it added.

Gold supply is responsive

There are some similarities between the supply profile of gold and cryptocurrencies, WGC conceded.

Bitcoin stocks increase by around four per cent a year, while the average 3200 tonnes of gold mined each year adds about 1.7 per cent to the precious metal’s stocks.

However, WGC believes gold wins

the supply battle because it benefits from a price-responsive recycling market. “Since 1995, recycled gold — that is primarily jewellery sold by consumers for cash — accounts for around a third of total supply,” it said.

WGC also questions if bitcoin will be disrupted by a superior blockchain application, saying: “The many cryptocurrency alternatives beg the question of whether a newer, better blockchain-based coin application may be equivalent to increasing supply.”

Gold is regulated

While cryptocurrencies are broadly permitted, but not yet widely approved, WGC points out that trade in gold is authorised and regulated in many markets.

“Some commentators have suggested bitcoin and other cryptocurrencies are at great risk of sudden restrictions from countries concerned about capital flight, investor protection, or loss of seigniorage,” WGC reported.

The marketplace has recently seen an example of this in South

GOLD HAS A COMPETITOR IN BITCOIN.

Gold is more liquid

Cryptocurrencies do not have a clear two-way market, according to WGC. In fact, bitcoin trades around $US2 billion in volume, on average, a day, which is less than one per cent of the total gold market at around $US250 billion/day.

“Reports suggest their (bitcoin) volume is driven by buy-and-hold investors, but, so far, they lack the characteristics common to most liquid markets with the ability to short large quantities,” WGC reported.

AUSTRALIANMINING

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MARCH 2018

Korea, which plans to introduce more regulatory measures.

Gold as a strategic asset

In summary, WGC believes bitcoin and cryptocurrencies are generally not a substitute for gold as an investment. It described gold as a tried and tested effective investment tool in portfolios.

“It has been a source of returns rivalling that of the stock market over various time horizons; it has performed well during periods of inflation; it has been a highly liquid, established market; and it has acted as an important portfolio diversifier, exemplifying negative correlation to the market during downturns,” WGC reported.

In contrast, WGC said the purpose of cryptocurrencies as an investment seemed quite different from gold.

“The crypto-market is young, and liquidity is scarce. Its price behaviour at this point, while still attractive to many investors, seems to be driven by high return expectations,” WGC concluded. AM

INTERNATIONAL

AVANCO CONTINUES TO RAMP UP MINING ACTIVITIES.

AVANCO BUILDS A BRAZILIAN EMPIRE AVANCO HAS DEMONSTRATED HOW A FOREIGN MINING COMPANY CAN ESTABLISH A SIGNIFICANT PRESENCE IN MINERAL-RICH BRAZIL. BEN CREAGH REPORTS.

I

f there is one piece of advice that Avanco managing director Tony Polglase can offer about mining in Brazil, it’s that local credibility is critical for success.

For the Perth-headquartered, ASXlisted company, it has taken around a decade for it to reach the level of credibility it craved in Brazil.

Polglase’s belief that Avanco had built a strong reputation in the country was reinforced in January when it secured a deal to acquire the Pantera copper project in Brazil’s Carajás mineral province from mining giant, Vale.

The Carajás, which hosts the largest iron ore mine in the world, is in the state of Pará in Brazil’s north. Since its mineral wealth was discovered in the 1960s, the Carajás has grown into one of the world’s most important iron oxide copper gold (IOCG) mining regions, with Vale dominating the landscape of operations in the area.

Building a portfolio in a mining region of this stature has been

satisfying for Avanco. The company’s latest acquisition, the 9700-hectare Pantera project, is close to its existing operations, and adds crucial potential to significantly grow its resources, reserves and long-term production profile.

Polglase said the Vale deal was something Avanco’s management had dreamt about during its decade in the Carajás region.

“It is perhaps only in the last two years that our credibility has reached a point at which Vale thinks of us as a peer,” Polglase told Australian Mining.

“That’s quite pleasing for us because the Carajás is the equivalent of the Pilbara in Australia, except that the Brazilian Pilbara only has two peers — Vale and Avanco.”

Polglase described Brazil as a mining jurisdiction that’s not for the “amateur”, but also a country that does have opportunities for foreign mining companies like Avanco.

“I’ve worked all over the world and I would say Brazil is as hard as it will possibly be, however, the rewards AUSTRALIANMINING

are there for those that have the tenacity, and the breadth and depth of experience,” Polglase said.

“On top of that Vale is a very big company and is very careful of its reputation and because of that is very cautious about doing deals, especially with juniors.

“They have been waiting a long time for us to turn into what we are now. We share the same region as Vale and we have reached a point where they feel comfortable to do something with us.”

The deal to acquire Pantera will cost Avanco anywhere between $20–$35 million, depending on the exploration and development scenarios agreed on by the two companies.

Avanco secured an option to acquire 100 per cent of the project by completing 14,000m of drilling within two years, and subsequently agreeing on Joint Ore Reserves Committee (JORC) compliant measured and indicated resources hosted within the mineralised zone. The acquisition price is

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INTERNATIONAL

then calculated at $0.04/lb of contained copper.

Avanco can exercise the option by starting payment of the acquisition funds to Vale. Following the exercise — beyond two years and up to five years — Avanco will complete drilling in the mineralised zone and any contained copper in addition to 400,000t will incur a higher acquisition price of $0.06/lb of copper.

The option can also be exercised at any time, with or without drilling, if the two companies agree on a non-JORC-compliant estimation of 400,000t of contained copper within the mineralised zone, valued at $0.04/ lb of copper.

In both cases, the acquisition price is capped at $3 million a year, with the payment period to span between seven to 12 years.

In addition to Pantera’s growth potential, Polglase said the project offered Avanco several benefits — some which standout compared to the company’s other operations in the Carajás.

“Believe it or not, the infrastructure that is available to Pantera is even better than what we have at our Antas (copper) operation,” Polglase said.

“We built Antas for about $46 million, which is very economic I would suggest by mining norms. And with even better infrastructure down at Pantera I would hope to be able to develop Pantera with at least the same

EZI-ON, EZI-OFF EZI-GUARD

level of capital intensity that we did at Antas.

“Again, it is probably going to be a high-grade mine with a very low capital cost — it has Avanco’s name written all over it.”

Despite Pantera’s possibilities, it joins an assembly line of more advanced operations that Avanco is developing in Brazil.

Avanco will continue to optimise its performance at the producing Antas mine this year.

The company also owns the advanced-stage Pedra Branca copper project, where it is initially targeting output of 24,000t of copper and 16,000oz of gold in 2020.

The company’s next project — CentroGold in Maranhão state — adds further diversity away from copper.

CentroGold is considered one of the largest undeveloped gold projects in Brazil, with some analysts valuing it at around $180 million.

Then there’s Pantera. “In terms of timeline, we’re in a fortunate position, we are queuing them up at the moment,” Polglase explained.

“Pantera invariably falls behind the others because it is still at a relatively early stage of exploration. It also needs to get through the permitting hoops and that could sit behind the other two projects as well.”

The future looks set for Avanco. And if everything goes to plan with Pantera, it’s easy to imagine the company’s Brazilian credibility reaching an alltime high. AM

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MARCH 2018

ENERGY

PUBLIC FALLOUT AUSTRALIAN MINING EXAMINES THE FALLOUT OF THE RECENT LOCAL PUSH FOR URANIUM AND WONDERS WHETHER IT IS TIME TO GIVE UP THE BAN ON NUCLEAR POWER.

A

ustralia has always been famously shy of nuclear power and construction of plants is prohibited to this day. However, we’ve never been afraid to extol its benefits to others as the world’s third-largest uranium exporter after Canada and Kazakhstan. Australia has five uranium mines (three operational); four of these, Four mile, Olympic Dam, Beverley and Honeymoon, are located in South Australia and the other, Ranger, in the Northern Territory.

Following a period of depression

the local uranium mining industry has received some good news of late. In December last year, Boss Resources bought out Wattle Mining, attributing 100 per cent ownership of the dormant Honeymoon project with the intent of a restart following construction of an ion exchange plant.

“The culmination of these staged development steps can ensure Honeymoon can operate in the lowest cost quartile of competitive global producers,” said Boss Resources’ managing director Duncan Craib of the acquisition.

“Consolidating our ownership of

the Honeymoon uranium project is a significant milestone for the company as it advances the project with the aim of becoming Australia’s next uranium producer in excess of 3.2 million pounds (Mlb) U3O8 per annum.”

The company achieved record high field test leaching from the once-abandoned site, previously in operation from 2011-14.

Likewise, Kazakhstan’s leading uranium miner Kazatomprom also recently announced its intention to lower mining output by 20 per cent over the next three years, with Canadian producer Cameco

IMAGE: BASAR/SHUTTERSTOCK

NUCLEAR POWER IS, CONTRARY TO PUBLIC OPINION, ONE OF THE SAFEST FORMS OF ENERGY PRODUCTION.

AUSTRALIANMINING

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following suit at its McArthur River mine and Key Lake mill in Saskatchewan, two major industry events that while bad news on one level, is encouraging from the perspective of creating a new Australian bull market.

And yet despite this resurgence, a moratorium remains in place.

This curious dichotomy has been a long point of debate, or even contention for some. Late last year at the International Mines and Resources Conference (IMARC) in Melbourne, American nuclear power advocate Michael Shellenberger delivered a speech detailing the

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The current poster boy of nuclear energy is undoubtedly France, where over 72 per cent of the country’s energy is generated by nuclear power, though the United States has the largest amount of reactors (99 operational and two more under construction as of October 2017) and energy generation overall, in part on account of its size and population.

South Korea too is a major user of nuclear power, to a greater extent than its confidence-shaken neighbour Japan, though the government is attempting to cut nuclear reliance to 29 per cent by 2035.

Nuclear power plants can also be found in many European countries (including the UK), South Africa, Brazil, Taiwan, India, Iran, Pakistan, Russia (another huge producer) and Mexico. In the face of overwhelming developed- and developing-world support for nuclear power it does make Australia look unusually behind the curve in this regard, particularly in left-leaning Victoria, where the government has banned not just nuclear power, but uranium mining entirely, despite the fact the state reaps yellowcake profits from the aforementioned South Australian and Northern Territory mining operations.

Nuclear reactors are among the most reliable electricity generators in the world, cheap to operate (though expensive to produce) and arguably the most eco-friendly energy solution available, emitting zero greenhouse gas emissions.

In addition, newer plants are less prone to failure than the older plants that led to incidents in Chernobyl and Fukushima, swapping outmoded external electricity systems for pressurised water tanks, natural convection heat exchangers and a bevy of other such passive safety systems.

When the local coal industry eventually wanes — and wane it will, though no time soon — it may come time for Aussies to get on board with nuclear power. The first step, after all, is always the scariest. AM

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potential benefits of nuclear energy, telling the audience that Australians needed to get over their hang ups about nuclear power.

Schellenberger, president of clean power research and policy organisation Environmental Progress, defended nuclear power during his presentation as a safe energy option with minimal waste production.

Schellenberger cited nuclear power as a viable energy solution to combat climate change, but that the industry was at risk of becoming a niche technology.

“Whenever I get an invitation to come to Australia I like to come, because it’s such a rich and intelligent country,” he explained, “but it’s just got this one little hangup about nuclear. So I like to come and talk a little bit about why I think the country needs to get over it a little bit.

“It should be going in the other direction. We should be rapidly expanding our nuclear base in order to combat climate change, but we aren’t.”

Additional high-profile support has come from the Minerals Council of Australia (MCA), which, despite recent criticism from some members and industry bodies for a perceived coal push often deemed excessive, has also voiced support for dropping the nuclear power ban.

In its pre-budget 2018–19 federal budget submission, it stated that “nuclear power has the advantage of being able to generate base load electricity with very low CO2 emissions over its life cycle” and that the government should “standardise uranium legislation and regulation across the country, including rules governing the transport and export of uranium”.

Undoubtedly, the shadow of the Fukushima disaster in 2011 resulted in a bad image for nuclear power across the globe, ensuring that fallout didn’t stop at an ecological and geographical level, but on a cultural one as well.

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FUTURE OF MINING

LEADING THE CHARGE LITHIUM-ION BATTERIES HAVE DOMINATED THE RENEWABLE ENERGY LANDSCAPE FOR DECADES. COULD THERE BE A POTENTIAL SUCCESSOR (OR SUCCESSORS) ON THE WAY? EWEN HOSIE REPORTS. ARGONNE NATIONAL LIBRARY’S CHRIS JOHNSON.

T

he lithium-ion (Liion) battery has of late returned to a topical forefront. While this stalwart battery has been around since the early 1980s, it has returned to public attention on account of a recent tech boom. Compounding a longpredicted, but still not quite there breakout of commercial electric vehicles with a renewables-led response to the needs of a changing energy century, Li-ion has received increased prominence in the public eye of late.

As global demand for the battery increases, so too does the demand for the tech metals used in its creation; metals such as vanadium, lithium and cobalt are expected to explode in 2018 as industrial production increases.

It is a situation that could

prove potentially lucrative for the Australian mining industry. Australia already mines most the world’s lithium (41.5 per cent, comfortably ahead of runner-up Chile’s 35.7 per cent), and had an exceptional 2017.

Companies such as Galaxy Resources, Mineral Resources (MinRes) and Orocobre all saw great market capitalisation gains between 50 and 60 per cent over the 2017 financial year, and all saw great profits, particularly MinRes; its posted profit of $201 million was 83 per cent greater than in the 2016 financial year.

And from great profits to great prophets, lithium soothsayers are not lacking in abundance.

Last year noted metallurgist, geologist and Lithium Australia chief executive officer Adrian Griffin referred to this newfound energy opportunity as one of the

AUSTRALIANMINING

biggest since the advent of steam.

“What you are looking at here is not the lithium industry per se,” he commented last year.

“What you are looking at is the biggest change in energy management since the Industrial Revolution.

“There is insatiable demand because people want portable power and they want renewable energy 24 hours a day. If you want renewables 24 hours a day you have got to have storage.”

Since the recovery of such metals becomes more costly as scarcity has increased, prescient scientists and technicians are turning to research projects focused on battery alternatives that could in future prove more plentiful and costefficient than the current crop.

Chris Johnson, a senior chemist and group leader at Argonne

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National Library (ANL), is one such figure; deeply invested in battery research at the renowned Chicagoan research facility. Borne from the fruits of the Manhattan project, he is currently involved with two high profile, collaborative projects; Li-ion composites and solid-state magnesium batteries.

The former of these is designed to provide insight into the potential of iron oxide composites as components in rechargeable batteries.

By developing a way to use lithium iron oxide as an additive in Li-ion battery electrodes that use silicon as one of the electrodes, ANL could potentially develop a roadmap to a cheaper and more efficient production process.

Iron ore is roughly a hundredth of the cost of cobalt, so potential cost savings are extensive. The prospect has attracted some high-profile support.

FUTURE OF MINING

“Silicon is currently a battery material that is on the roadmap towards advanced Li-ion batteries with higher energy densities,” Johnson told Australian Mining. “We have had support from the US Department of Energy for about three years to develop this lithium-iron oxide technology.

“As a transition metal, in principle, it could function as a positive electrode material in Li-ion batteries.”

There is a notable downside, however, and that lies in performance, which does not match up to cobalt currently, and researchers worldwide, including Johnson and his colleagues at ANL, are still exploring new ways to integrate and synthesize lithium-iron oxides for batteries.

The project is not to be confused with lithium-iron phosphate (or LiFePO4) batteries, which already exist commercially. While these batteries are generally safer and longer lasting than cobalt-based Li-Ion batteries, they still rely on carbon coating for conductivity purposes, a process lithium-iron oxide batteries can bypass.

“While LiFePO4 batteries contain iron, as do lithium-iron oxides, the chemistries are quite different,” Johnson explained.

“The phosphate material is made

REPRESENTATION OF SILICON (GREY) BONDING WITH LITHIUM IONS (PINK). IMAGE: NORTHWESTERN.

under inert gas, and lithium iron oxides can be synthesised in either gas environments, depending on what phase is desired; as a battery material LiFePO4 undergoes twophase electrochemical reaction, while lithium-iron oxide is singlephase intercalation.”

ANL’s second major battery research project at the moment involves the study of solid-state magnesium batteries, a technology Johnson admits is still in its early infancy, lacking in easily identifiable commercial applications and market abilities.

“Magnesium batteries are pretty much still a lab curiosity right now,” he said. “If they do become feasible, then in principle they have a higher

volumetric energy density than Li-ion batteries.

“A solid-state electrolyte would have the advantage of being more intrinsically safe as compared to conventional liquid containing flammable electrolyte in Li-ion batteries; considering that lithiumiron oxides are potentially very low cost and the growth of Li-ion batteries is really large, the adoption of this technology is possible.

“But performance needs to be improved, so a commercial release is likely far from realisation.”

Going forward, the trend in battery materials for 2018 and beyond will still focus largely on battery chemistry, moving away from cobalt systems to manganese and

nickel systems. Silicon, too, should remain a choice material to use in electrodes, according to Johnson, on account of its low cost, high capacity, and high energy densities.

“The rechargeable battery industry is under extreme growth right now. Moving to a renewable energy portfolio with electric vehicles powered from non-carbon energy sources is the future vision,” Johnson explained.

“To make that happen will require many players in the industry, working hard and efficiently towards that goal. Economically, rechargeable batteries show a tremendous market growth chart, and the lithium-ion battery chemistries will continue to dominate for years to come.”

Whether or not a more efficient successor to the lithium-ion battery is ever found, the Australian mining industry should be in a strong position to meet the demands of any requisite changes. Western Australia is the world’s largest iron exporter and producer, Australia holds estimated production of 440,000 tonnes per year (eighth in the world), and is the number one producer of high-grade irradiate silicon.

Whatever we end up using to keep the lights on, the future looks bright for battery production. AM

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POLICY

A NEW ENVIRONMENT FOR COAL EXPORTS COULD THE INTRODUCTION OF CHINA’S NEW ENVIRONMENTAL LEVIES HURT COAL EXPORTS? AUSTRALIAN MINING INVESTIGATES.

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t the start of the year, China’s Central People’s Government introduced the twoyear trial phase of a long-in-development, nationally instituted set of energy levies designed as a means of combating the country’s notorious pollution levels, an example of carbon pricing hot on the heels of similar moves in India and South Korea, though on a larger scale.

This Chinese environmental tax, officially called the Environmental Protection Tax, is designed as part of an effort to reduce national energy emissions by up to 60 per cent by 2020, a ‘carbon market’ set to become the world’s second largest, following the European Union Emissions Trading Scheme (EU ETS), which, while operating in 31 countries and covering 45 per cent of EU countries’ greenhouse emissions, is still expected to be overtaken twofold

by China’s efforts in the relatively near future.

It’s a decision destined to bring big changes. In anticipation of the EPS, China has attempted seven pilot schemes in five cities and two provinces that cover an economic area representing over a quarter of the country’s economy.

For Australia, this could have a knock-on effect. Australian Government statistics for 2015–16 cited Australia as the world’s largest coal exporter by volume, while Resources and Energy Quarterly statistics for the third quarter of 2017 have shown that it is the largest exporter of metallurgical coal, and second largest exporter of thermal coal.

China is Australia’s biggest export market overall, as the largest consumer of metallurgical coal and second largest consumer of Australian thermal coal, a boost from 2016 where China was second and third for thermal coal and metallurgical coal exports, respectively.

As such it could be considered a nominal point of concern for

AUSTRALIANMINING

the export coal industry given the sweeping state of the changes brought about by the new regulations, even taking into account metallurgical coal’s overall lower environmental impact than thermal coal. Thermal coal is still big business for Australia, totalling $19 billion in the 2016–17 financial year.

Prior to 2018, Chinese polluters were charged at a local government level; the new levies impose fees between 1.2 yuan (23 cents) and 12 yuan ($2.30) per kilogram of nitrogen oxide or sulphur dioxide, which could cost some of the larger energy businesses anywhere between 40 and 300 per cent more than under the previous system; small and mediumsized enterprises, meanwhile, will also become subject to environmental taxation for the first time.

Iron and coal prices have seen a rebound in the last two years following market dips in 2014 and 2015, so China’s EPT could be the next potential hurdle in an otherwise recovering market.

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A spokesman from the Minerals Council of Australia, commenting to Australian Mining for this article, didn’t seem too worried however, citing Australia’s high quality of thermal coal output would still be necessary for China’s needs.

“China’s commitment to mitigating emissions has seen the largest roll out of high efficiency, low emission (HELE) coal plants anywhere in the world,” he said.

“High-quality Australian thermal coal will continue to be required in many of these modern clean plants as China delivers affordable and reliable electricity while dealing with emissions.”

Such concerns are not just relegated to thermal coal, however. In November last year, the Reserve Bank of Australia (RBA) predicted that iron and coal exports to China had probably already peaked, or at least was near enough to it. RBA forecasts indicate that the dip may begin around the early 2020s, although it explained that any decline in

POLICY

PHOTO CREDIT: /SHUTTERSTOCK.COM

HEAVY SMOG ON A BEIJING HIGHWAY.

metallurgical coal exportation would be related more to slowing population growth and the subsequent decline of residential construction that tends to follow, though there metallurgical coal still held ties to the environment.

“Chinese authorities have recently intensified their commitment to reducing air pollution by implementing constraints on steel production, which is a heavy user of coal,” explained an RBA report, entitled The Chinese Steel Market

and Demand for Bulk Commodities.

“Some of the policies announced so far include targeted reductions to steel production over the winter months in 28 cities located in regions where production collectively accounts for more than one-third of China’s annual steel output.

The report also added that demand for Australian iron ore and coking coal could be further affected should China increases scrap metal production, which already accounted

for around 11 per cent of national crude steel creation, which, while low relative to other countries, was set to explode within the next 10 years.

According to the report: “The current ratio of scrap steel consumption in China is low relative to many other large steel-producing economies (for example, the ratio exceeds 50 per cent in the European Union and 70 per cent in the United States) [but] the Chinese Government aims to triple this ratio

over the next decade.”

As part of a growing trend, it can only do good in the long term for a country, particularly large ones such as China or India, to reduce its greenhouse emissions (an area, incidentally, where the US alone seems to be progressing backwards) and while the exact definition of ‘clean coal’ has been a bone of contention among sceptics for some years now, it’s no doubt got some life left yet. AM

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INDUSTRY OUTLOOK

WHERE ARE AUSTRALIA’S NEXT MINES? THE PIPELINE OF AUSTRALIAN MINE PROJECTS HAS GROWN SIGNIFICANTLY OVER THE PAST YEAR. AUSTRALIAN MINING EXAMINES THE MOST ADVANCED OF THESE PROJECTS.

MORE COAL MINES ARE ON THE WAY.

T

he number of committed mining and energy projects in Australia increased by 21 per cent in 2017.

A rise in copper, gold, nickel and other minor commodity prospects lifted the amount of overall committed projects to 47, according to the Department of Industry, Innovation and Science’s latest Resources and Energy Major Projects report.

Publicly announced projects (58), as well as projects moving to the feasibility stage (139), also increased over the past 12 months, in line with higher exploration expenditure and higher resource and energy commodity prices, the report added.

“While the past few years have been characterised by cutting costs to ensure the commercial viability of existing assets, 2017 has seen some renewed optimism for market conditions and increased producer interest in brownfield expansions and new projects,” the report explained.

Australia’s gold sector added several newly committed projects

in 2017, including Dacian Gold’s Mt Morgans project in Western Australia, Gascoyne Resources’ Dalgaranga project in WA and Diversified Minerals’ Dargues Reef project in New South Wales.

Two copper projects were also approved ­— OZ Minerals’ Carrapateena project in South Australia and Capricorn Copper’s Mount Gordon project in Queensland.

Coal, meanwhile, has the highest number of committed projects amongst Australia’s key mining commodities with nine — all of which are in Queensland and NSW. Here, Australian Mining takes a closer look at some of the committed mining projects around the country:

Western Australia West Angelas iron ore – Deposit F (Rio Tinto 53%)

Rio Tinto’s latest growth project at the West Angelas iron ore mine in the Pilbara involved development of its Deposit F. The expansion planned to extend the mine life at West Angeles by opening the new deposit. Rio reported last year that AUSTRALIANMINING

the expansion, which was nearing completion by the middle of the year, had created 120 construction jobs. The miner produced 8.5 million tonnes (Mt) at the 53 per cent owned mine in fourth quarter 2017.

Pilgangoora lithium (Pilbara Minerals)

Pilbara Minerals plans to launch shipments from its Pilgangoora project in April. The company has rapidly developed the project to meet growing demand for lithium in Asia … and to also become Australia’s next producer of the emerging tech metal. Pilbara added an extra $50 million to its CAPEX for stage one of Pilgangoora in December, increasing its expected spend to $274 million. Pilbara is already planning its stage two expansion of the operation.

Karlawinda gold (Capricorn Metals)

Capricorn Metals is hopeful of developing the Karlawinda gold project in the Pilbara into a producing operation by the June

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2019 quarter. The company forecast in last year’s feasibility study that the mine would cost $146.3 million to build. The study outlined a 6.5year mine life for Karlawinda, with annual output of around 100,000oz of gold at average production costs of $1025/oz. In April 2017, resources for the project were estimated at 31Mt at 1.1g/t gold for 1.1Moz gold

Browns Range dysprosium (Northern Minerals)

Northern Minerals plans to become the first significant producer of dysprosium outside of China at the Browns Range project. The project is on track to be opened during the June quarter, with the company reporting in January that operations systems and commissioning plans were on target. Northern’s 100 per cent owned project has several deposits and prospects containing high-value dysprosium and other heavy rare earth (HRE) materials.

Dalgaranga gold (Gascoyne Resources)

Gascoyne Resources expects to be producing at the Dalgaranga

INDUSTRY OUTLOOK

COAL, MEANWHILE, HAS THE HIGHEST NUMBER OF COMMITTED PROJECTS AMONGST AUSTRALIA’S KEY MINING COMMODITIES WITH NINE — ALL OF WHICH ARE IN QUEENSLAND AND NSW.” mine in the Murchison region of WA in the second quarter of this year. It reported in late 2017 that engineering and design of the mine’s 2.5Mt/y processing plant was more than 90 per cent complete.

The high-margin project has a gold resource of 31.1Mt at 1.3g/t and a gold reserve of 581,000oz.

Dalgaranga has been forecast to produce 100,000oz/y over an initial six-year mine life. NRW Holdings is the mining contractor for the operation with a $324 million, sixyear agreement.

Mt Morgans gold (Dacian Gold)

Dacian was set to launch production at the Mt Morgans gold operation in WA’s Laverton gold district this month, reporting in January that the development was on time and budget. The current mineral resource for Mt Morgans is 44.7Mt at 2.3g/t gold for 3.3Moz. The mine is expected to have an annual production rate of around 200,000oz/y. Dacian has lined up Macmahon Holdings for a fiveyear, $250 million mining services contract at Mt Morgans.

Gruyere gold (Gold Fields-Gold Road JV)

battery-grade lithium hydroxide, making it the world’s largest producer.

Nova-Bollinger nickel (Independence Group)

Independence Group officially opened the Nova operation in WA’s Goldfields during September last year. Commercial production was reached at the mine five years after discovery of the site. First nickel ore concentrate was achieved in October 2016 and commercial production launched in July 2017. Since opening Nova, Independence has ramped up to full nameplate capacity of around 125,000t of nickel per month.

The mine also produces copper and cobalt.

Queensland Bauxite Hills (Metro Mining)

Metro Mining is on the verge of launching production at Bauxite Hills — the milestone is scheduled to take place next month with construction almost complete (at the time of writing). The project, which is 95km north of Weipa in the state’s Far North, has an estimated reserve of 92.2Mt and resources of 144.8Mt. Metro awarded the

mining contract for operation of the mine to SAB Mining, a privately owned Queensland mining services company.

Amrun bauxite (Rio Tinto)

Rio Tinto’s Amrun bauxite project in Far North Queensland is rapidly moving through the construction phase. Rio is scheduled to launch production at Amrun in first half 2019. Entering 2018, all wharf modules had been installed and the process plant beneficiation modules and transfer tower were in location.

The $US2.9 billion operation has been forecast to produce 22Mt/y of bauxite, with the potential to expand it to 50Mt/y. It will have a workforce of 1100 people.

Lady Loretta zinc expansion (Glencore)

Glencore remained on track to restart the Lady Loretta zinc operation (at the time of writing) in the first half of 2018, as zinc prices reached a 10-year high. The diversified miner, with contractor Redpath Australia, has been actively recruiting workers ahead of the resumption of operations. The historic mine, which was closed in 2015 due to low zinc prices, will add significant production to Glencore’s 2019 zinc output, which is expected to be around 5 per cent higher than what it was in 2017.

Capricorn Copper

The refurbished Capricorn copper

mine in the state’s north west reached production last November.

The former Mount Gordon mine was mothballed in 2013 following declining copper prices. In 2015, it was sold to joint venture partners Lighthouse Minerals and EMR Capital, which have redeveloped the operation under the Capricorn Copper name. The company expects to produce around 30,000t/y of copper over an initial 10-year mine life. The property contains over 900,000t of copper metal, with exploration showing potential to extend the mine life.

Dugald River zinc (MMG)

The Chinese miner completed its first shipment of around 10,500t of zinc concentrate from Dugald River last December. The project was commissioned ahead of schedule and under budget. MMG will continue to ramp up operations at the mine this year. Dugald River, which is about 65km north-west of Cloncurry, will process an average 1.7Mt/y of ore to initially produce 170,000t of zinc in concentrate, plus by-products. When fully operational, Dugald River will be a top 10 global zinc mine.

Cloncurry Copper (Altona Mining)

Altona Mining, which (at the time of writing) is in the middle of a merger with Canada’s Copper Mountain Mining, has advanced Cloncurry Copper into one of Australia’s most exciting copper prospects. Altona has

Production at Gruyere in WA’s Eastern Goldfields is still around a year away, but the JV owners confirmed in January that construction was on track. The Gruyere mineral resource has grown to 148Mt at 1.3 g/t for 6.2Moz of contained gold after ongoing exploration at the property. The JV has forecast the mine to cost $532 million to build, with production estimated at 270,000oz/y over 13 years. Downer EDI has been awarded a five-year, $400 million mining services contract at Gruyere.

Kwinana lithium (Tianqi Lithium) Tianqi Lithium launched construction work on stage two of its lithium hydroxide processing plant in Kwinana during December, two months after giving the project the green light. Valued at $300 million, stage two is creating 200 construction jobs and will increase the overall workforce to 500 people. The plant is scheduled for completion towards the end of 2019.

Once complete, the Kwinana plant will have a capacity of 48,000t/y of

SEVERAL NEW GOLD MINES ARE IN DEVELOPMENT

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INDUSTRY OUTLOOK

AMRUN PROJECT IS A MAJOR AUSTRALIAN DEVELOPMENT. COPYRIGHT ©2017 RIO TINTO

forecast the $288 million operation to produce 39,000t of copper and 17,200oz of gold a year over a 14-year mine life. The project, located 95km north-east of Mt Isa, contains around 1.65Mt of copper and 0.41Moz of gold. It is creating around 600 jobs in the region.

Charters Towers gold (Citigold Corp)

Citigold plans to become a 220,00oz/y gold producer with its Charter Towers gold project, growth the company has said would take several years and require substantial capital investment. At Charters Towers, in the state’s north west, Citigold has identified a mineral resource of 11Moz at an average grade of 14g/t. Its work program includes increased diamond core drilling and geophysics mapping of the ore zones to ensure that the development of adjacent deposits is achieved efficiently.

Byerwen metallurgical coal (QCoal-JFE Steel Corp JV)

The joint venture owners of the Byerwen metallurgical coal project launched construction at the Bowen Basin site in May 2017. Once fully operational, the JV partners expect Byerwen to produce 10Mt/y of coal,

with a workforce of up to 500 people.

Contractor Macmahon was officially awarded a $350 million mining services contract by the JV partners last November.

awarded several key contracts for its operation, including a $500 million mining services agreement to Thiess.

in concentrate and 12,000t lead in concentrate, along with associated gold and silver.

Eagle Downs coal (Aquila Resources)

Russell Vale Colliery (Wollongong Coal)

Wollongong Coal has faced numerous environmental concerns surrounding the expansion of the Russell Vale Colliery in the Illawarra region.

However, the company has persisted with its plan, which involves expanding the longwall operations to extract 4.7Mt of run-of-mine coal over a five-year mine life. The proposal involves the extraction of coal from eight longwalls, in three blocks and the continued operation of the mine’s surface facilities. For the moment, Russell Vale remains under care and maintenance.

Dargues Reef gold (Diversified Minerals)

Aquila’s Eagle Downs metallurgical coal project near Moranbah is proposed to be an underground longwall coal mine. It has the potential to average 4.5Mt/y from one longwall over the first 10 years of full production, according to Aquila. The company, which owns a 50 per cent interest in Eagles Downs, has identified mineral resources of 959Mt at the property.

Eagle Downs is located immediately adjacent to the BHP-Mitsubishi Alliance’s (BMA’s) Peak Downs mine.

New South Wales Mount Pleasant coal (MACH Energy)

MACH acquired the Mount Pleasant coal project in the Hunter Valley from Rio Tinto in early 2016. Since then, MACH had been advancing the site towards production, which it anticipates will take place in the current quarter (at the time of writing).

The operation is approved to produce up to 10.5Mt of thermal coal for international markets. MACH last year AUSTRALIANMINING

Woodlawn zinc-copper (Heron Resources)

Development at the 620-squarekilometre Woodlawn project is on budget and on track, according to Heron. The company is hopeful of capitalising on the surging zinc and copper markets by launching production at Woodlawn either late this year or in early 2019. The project, about 250km south-west of Sydney, has a production target of 40,000t zinc in concentrate, 10,000t copper

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Diversified’s Dargues Reef gold project has been the subject of community resistance over the years, but now looks to be on track to become a producing operation. The project was the first new gold mine to be approved in NSW in around 10 years.

A Dargues definitive feasibility study for a 50,000oz/y gold operation has been completed. The site’s identified resources and reserves stand at 1.615Mt at 6.3g/t gold (327,300oz of gold).

South Australia Carrapateena copper (OZ Minerals)

This may be the only committed South Australian project, but at least it’s a significant one. OZ Minerals approved development of the $916 million project last August. The company estimates that production at Carrapateena will average 65,000t of copper and 67,000oz of gold a year once developed, and it is already exploring opportunities for expansion.

OZ awarded the Downer EDIAusenco joint venture a $312 millon EPC contract at Carrapateena last

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SAFETY

STAYING HYDRATED AT AUSTRALIAN MINE SITES THE SUMMER MONTHS MAY HAVE FINISHED, BRINGING COOLER WEATHER, BUT THAT DOESN’T DECREASE THE IMPORTANCE OF STAYING HYDRATED AT MINE SITES. AUSTRALIAN MINING EXPLAINS.

I

It has been another scorching Australian summer. In recent months, it has been a common sight to see weather forecasts hitting at least 40 degrees in Australia’s major mining regions on both sides of the country.

For the mining industry, this has brought the importance of staying hydrated to the fore as companies prioritise the health and safety of their workforce.

With autumn now upon us, there will be some respite ahead for Australia’s miners, many of whom are working in remote locations that experience extreme temperatures throughout the year.

However, the slightly cooler weather isn’t an excuse for mine operators to become complacent about the importance of keeping its workers adequately hydrated.

In Western Australia, for example, hot workplaces are everywhere, with heat coming from climatic conditions, heavy work in moderately hot conditions, hot work processes, radiant heat from surroundings, and work where heavy protective gear is required — all situations relevant to mining.

Each of these factors could lead to a mine worker becoming severely dehydrated if they aren’t monitored and sufficient water isn’t consumed.

It is widely accepted that Australians need to drink plenty of water to stay hydrated. To be exact, the Australian National Health and Medical Research Council recommends that the average woman drinks 2.1 litres a day, while the average man should consume 2.6 litres a day1.

A good rule is to drink enough so you’re not thirsty for long periods. On a mine site, it is even more important to monitor how much you drink, with high temperatures and challenging work conditions the norm for workers.

Due to the risks caused by heat, WA’s Occupational Safety and Health Act 1984 requires employers to provide and maintain a working environment in which workers are not exposed to hazards. This applies to any safety and health risk, including illness from working in heat.

It is important to understand the key

HOT WEATHER IS A SAFETY RISK AT AUSTRALIAN MINES.

risk factors that could lead to workers suffering from severe dehydration or illnesses caused by heat.

According to the WA Department of Mines, Industry Regulation and Safety, the key factors include air temperature, humidity, radiant heat, air movement or wind speed, workload, a worker’s physical fitness and clothing2.

By monitoring these factors and staying hydrated at mine sites it will reduce the risk to a mine worker’s health and safety.

Never failing Australia

Neverfail, Australia’s #1 spring water cooler brand,3 sources its spring water from some of Australia’s finest natural springs and has been keeping the country hydrated for over 30 years.

The company’s story started when Harry Hilliam looked at the potential of bottling natural spring water and started selling his first bottle from the back of a ute. The name Neverfail was born as the spring at Harry’s family AUSTRALIANMINING

property ‘never failed’ to produce no matter how dry it became outside.

After Harry formed the business, Neverfail expanded quickly to deliver its water throughout Australia into homes and offices.

Neverfail’s products include water coolers, 11 and 15-litre returnable spring water bottles, 15-litre one-way bottles, five and 10-litre water casks, and 600ml on-the-go bottles.

In addition, Neverfail’s two-litre portable drink bottle is an ideal solution that mine workers can keep handy on site to stay hydrated in remote and dry working conditions.

When access to water is limited, mine workers can fill the reusable drink bottle with Neverfail spring water, providing clean and refreshing water on the go and the ability to track their water consumption.

The company already supplies Neverfail spring water to various Australian mine and construction sites, keeping our hard-working

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miners hydrated in some of the country’s harshest conditions.

Neverfail’s commitment to Australian communities, many of which have grown from mining operations, is demonstrated through its support of the Royal Flying Doctor Service (RFDS).

The water supplier understands the significant role the Flying Doctor plays in keeping these communities functioning and caring for individuals and families that live, work or travel across remote Australia.

As part of an ongoing partnership, Neverfail currently donates funds to the RFDS through special promotions.

1. https://www.nrv.gov.au/nutrients/ water 2. https://www.commerce.wa.gov. au worksafe/working-safely-hotconditions 3. Source: Canadean Bulk/HOD Water

by Volume, Australia 2017

SAFETY

RISING TO THE CHALLENGE PHOENIX CONTACT IS A COMPANY THAT HAS SEEN ITS FAIR SHARE OF TECHNOLOGICAL CHANGES OVER THE DECADES. AUSTRALIAN MINING SPEAKS TO CURRENT AUSTRALIAN MARKETING MANAGER JOHN ORTIKA TO DISCUSS THE COMPANY’S PAST, PRESENT AND FUTURE. PHOENIX CONTACT’S FLAGSHIP CONTROL PLATFORM IS STURDY YET COMPACT.

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ndustrial tech provider Phoenix Contact is a business that has been around the block (pun intended). Originally founded in Germany in 1923, the company has since expanded surely to encompass over 50 international subsidiaries, 30 agencies, and a portfolio of over 66,000 products.

National marketing manager John Ortika joined Phoenix Contact Australia as a support engineer in 1997, just a year after the Australian division was established in the Sydney suburb of Taren Point. From 2000 to April last year he served as a product manager before taking up his current mantle, and in that time, he’s seen the industry go through a lot of changes, and from time to time, lent a hand in some of those changes himself.

“From our point of view, there’s been a lot of technological change,” he explained to Australian Mining.

“It’s not just improvements in components and connection technology, but automation, remote access, internet connectivity and information technology integration as well.”

The company is perhaps best known in recent years for its invention of the push-in terminal block (PT Terminal), released in 2009, an innovation in wiring that has usurped the previously ubiquitous screw-in terminal method.

By allowing users to wire up a large

number of connections in an optimised way with the use of push-in spring cages rather than manually tightened screws, the whole process could be sped up 10- or even 20-fold.

“Before the PT terminal, operators used screw terminals,” explained Ortika, “so basically, you’d put a wire in the screw terminal and have to screw it in 15 or 20 times to manually tighten the wire.

“Now with one push it’s held captive in the terminal by the spring, and your connection is done. So it’s a couple of seconds vs. 10–15 seconds, multiplied

by thousands of connections — it saves a great deal of time.”

More recently, the company has seen a push towards IT integration and cross-skill programming, selling a wide range of electronics.

The recent control platform PLCnext merges traditional industrial programs (based on IEC function block programming) with highlevel programming language more often ascribed to traditional software development, including Python and C. According to Ortika, it’s a natural fit.

“In trend terms, the merging of IT applications with industrial control — and how to make the best use of it — is one that has been going on for a few years and will accelerate in years to come,” he continued.

Another point of pride for the heavily research and development-led developer, and one of its more recent innovations, is the world’s narrowest coupling relay, the PSRmini, a product conceived and created completely inhouse over a four-year period.

The design emerged from a single question surrounding the efficiency of space, a pure process of miniaturisation, and the team took it from there. The end result was a safety relay just six millimetres in width, half the size of the next smallest relay on the market. In order to succeed with the project, Phoenix Contact had to look outside the box (again, pun intended) by way of developmental necessity.

“PSRmini was released in 2015, one

of the reasons for development was the trend of moving from centralised shut down solutions to decentralised functionalities,” explained Ortika, “with safe bus systems and safe PLCs, which need a single switch off and therefore, a small narrow safety relay was required.”

“It wasn’t considered possible to create a safety relay in that sort of form factor,” explained Ortika.

“The engineers at Phoenix Contact looked at technologies and solutions from totally different industries, such as the automotive industry, and capitalised on innovations there in order to come up with new ways of approaching the design of the relay; it’s all about reducing real estate in the control cabinet.”

Phoenix Contact’s independent status provides a prime environment for this kind of R&D-led push, which allows employees to thrive in their element while aspiring to bring continued value to the company’s customer base.

Since there are no shareholders the employees do not feel beholden to anyone.

“We’re a privately owned, independent company, so there is always good feeling that all the money being generated is being put back into new product developments and improving manufacturing facilities.

That feeling of independence gives you a lot of comfort and pride in working for Phoenix Contact,” Ortika concluded. AM

PHOENIX CONTACT’S PUSH IN CONNECTION TECHNOLOGY HAS ARGUABLY REVOLUTIONISED WIRE CONNECTION IN INDUSTRIAL APPLICATIONS.

AUSTRALIANMINING

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MINING SERVICES

THE SEW-EURODRIVE FACILITY IN MACKAY.

SEW-EURODRIVE DRIVES THE BENEFITS OF LOAD TESTING FOR MINE OPERATORS SINCE OPENING ITS STATE-OF-THE-ART SERVICE CENTRE IN MACKAY, QUEENSLAND, SEW-EURODRIVE HAS BEEN WORKING WITH MINERS TO ENSURE GEARBOXES AND DRIVES ARE PERFORMING AT OPTIMUM EFFICIENCY AND SAFETY. AUSTRALIAN MINING REPORTS.

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oad testing equipment in the mining industry can ensure that potential problems and risks are identified before they present a serious issue in the future, including downtime and unnecessary costs. SEWEURODRIVE, working with CNC Design, has established a state-of-the-art system to load test up to 500kW power and up to 600,000Nm torque.

Located in Mackay, the centre allows for the load testing of gearboxes, motors, drives and swingbase assembly.

“The main advantage of load testing is that we can replicate site conditions in a controlled environment, this includes torque, bearing loading and mounting arrangement,” SEW-EURODRIVE sales and operations manager Daniel Dallari said.

SEW-EURODRIVE conducts a number of tests onsite to determine the condition of the gearbox during the load testing phase. The load test will load the bearings and gearing, avoiding gear mesh backlash that affects vibration analysis, ensuring FFT readings will identify any potential bearing, gear, or shaft defect.

SEW-EURODRIVE CONDUCTS NUMEROUS TESTS ON SITE.

AUSTRALIANMINING

The service centre is the first of its kind in Queensland and previously customers were required to ship parts interstate for load testing.

“Customers had to either compromise and accept that their gearbox could not be load tested or ship parts interstate,” said Dallari, “both of these options may result in costly delays and downtime.”

Load testing is fundamental in preventing future delays and failures, as well as ensuing potential defects are identified before the gear box is placed into production. The risk of increased downtime is reduced if a defect is identified and fixed during the load testing phase.

As Dallari stated: “With underground mining in particular, the cost of installing a unit underground can be astronomical.

“If you install a gearbox and then find out that there is a fault later down the line it will cost you significantly to then remove this unit — not just in man power but also in downtime associated with such delays.”

“If there is even a slight fault in a gearbox, this will be spotted and dealt with at our load testing centre,” Dallari said.

The service centre is fundamental to SEW-EURODRIVE’s commitment to its customers and ensuring that they achieve the most efficient and

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safe operation possible. Since opening early last year, SEW-EURODRIVE has found that many customers now visit the site regularly.

“We’ve had very good feedback from our customers. With lots of interest from day one, we are now finding that many of our customers are regulars and are really reaping the benefits of load testing their gear,” said Dallari.

At the service centre in Mackay, customers are invited to witness the testing and are informed of the process and its benefits. The SEWEURODRIVE product specialists talk each customer through the operation and explain any potential issues and defects.

“Being local to the loading centre gives a real advantage. Our customers can now physically come with their equipment and be involved in the process. They often bring their own technicians to learn more about load testing and its benefits,” said Dallari.

With more customers visiting the centre each day, Dallari said that load testing is a process whereby until you have the option, you don’t realise how beneficial it can be.

By mitigating risk and ensuring equipment is regularly checked under mining conditions, any defects are spotted early and dealt with before they present a serious issue down the line. AM

MATERIALS HANDLING

A CONVEYOR SUPPLIER THAT LIVES UP TO ITS NAME CONVEYOR BELT MISALIGNMENT CAN CAUSE MAJOR ISSUES, LEADING TO LOST TIME, REVENUE AND EVEN PUTTING SAFETY AT RISK. OWING TO AN EXCLUSIVE PARTNERSHIP WITH TRU-TRAC ROLLERS, REMA TIP TOP IS BUILDING ON ITS ALREADY NOTABLE REPUTATION. AUSTRALIAN MINING REPORTS.

A FLAT RETURN TRACKER.

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EMA TIP TOP is considered a leading global conveyor maintenance and product supplier, having provided services for all manner of major Australian mining operations — from coal and iron ore, to aluminium, bauxite and copper; from bustling ports in Western Australia, Queensland and New South Wales, to the burgeoning gold industry in South Australia.

With its 2016 partnership with TruTrac Rollers, a solutions service for conveyor belt tracking and alignment, REMA TIP TOP is aiming to improve on an already notable reputation.

Jamie Whybrow, National Product Specialist at REMA TIP TOP, has, in his words, “held many hats” within the company over his seven-year tenure, from operations and manufacturing to

TRU-TRAC MANUFACTURES MODULAR TROUGHS THAT CAN BE EASILY REPLACED.

technical product services.

He’s convinced the use of Tru-Trac conveyor trackers won’t just improve operational efficiency and reduce downtime, but also spread awareness of safety with REMA TIP TOP clients.

“There are several common causes of belt mis-tracking,” he explained to Australian Mining. “Mis-alignment can occur due to movement or incorrect adjustment of the conveyor structure, its pulleys or idler frames.

“Mis-tracking can also be caused by skewed splices, mechanical joins, as well as off centre loading of feed and material build-up.”

Belt misalignment can be a big problem on conveyors, causing wear and tears, and as a consequence, can reduce load capacity.

Edge wear is a particularly serious problem throughout the industry, as the combination of a misaligned belt and constant friction can reduce, in an extreme case, a 1200mm belt to around 900mm without proper attention.

“As reduced belt width reduces throughput capacity, this can also lead to spillages, which waste time, cause lost revenue and potential operational health and safety issues for mine operators in passage areas beneath and around conveyors,” explained Whybrow.

While natural movement can lead to issues, belt mis-tracking can most commonly be attributed to human factors, a fact that Whybrow explains requires specialist training AUSTRALIANMINING

for belt operators to prove effective in identifying and rectifying root causes.

“Manual tracking is easy to do, but it’s also easy to make mistakes which is why training is essential.”

REMA TIP TOP holds exclusive Australian — as well as New Caledonian — distribution rights for Tru-Trac products since 2016.

Globally, REMA TIP TOP is TruTrac’s exclusive distributor throughout its international subsidiaries. Australia was Tru-Trac’s first international distribution market, and is becoming one of the strongest, thanks largely to the success of the local mining industry.

REMA TIP TOP’s installation of Tru-Trac trackers has seen huge success so far. At a coal port in NSW, belt tracking issues have been reduced to zero in recent months following almost daily mis-tracking.

At a coal handling preparation plant in Queensland, Tru-Trac’s implementation saw record-breaking results, with overall throughput exceeding one million tonnes in a month and the reduction in spillage creating a safer workplace.

Tru-Trac’s design, which requires no edge contact to activate it, relies purely on achieving equilibrium. Its uses its bearing-free pivot arrangement and tapered roller to actively and continuously track the belt, making micro adjustments to ensure it is centred at all times, which mitigates potential damage to belt edges.

Tru-Trac’s range extends from economical models with a two to four year lifespan to totally serviceable units. Tru Trac units are available in single roll flat returns, dual roll flat and V returns and tapered roll trough units. It also produces speciality units tailored to specific conveyor systems.

“While the downturn in the mining industry saw operators scale back preventative maintenance solutions, we’ve been able to demonstrate how Tru-Trac can be a cost-effective way to solve mis-tracking, eliminating this as a cause of unplanned maintenance,” Whybrow said.

“In the last 12-18 months optimism has returned to the market, which has meant we have been able to massively grow our stock holding of Tru-Trac in our warehousing facilities in across Australia.”

“If you’ve got a tracking issue, we can have a product on site almost immediately.”

It’s the latest evidence of the company’s ambitious growth. In mid-2016, it also acquired a majority share of conveyor maintenance provider Convatech, a move that further solidified REMA TIP TOP’s national presence.

In 2018, REMA TIP TOP plans to expand on its already established reputation through increasing brand awareness and stressing the importance of conveyor belt maintenance to the overall supply chain. AM

TRU-TRAC TRACKERS CAN BE EXTREMELY LARGE, AND ARE WELL-SUITED FOR HEAVY-DUTY WORK.

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MAINTENANCE

SHAKING THINGS UP WITH SINOPEC IN A LITTLE OVER EIGHT YEARS SINCE THE INTRODUCTION OF ITS PREMIUM LUBRICANTS RANGE TO AUSTRALIA, SINOPEC HAS EXPERIENCED A METEORIC LEVEL OF ACCEPTANCE. AUSTRALIAN MINING FINDS OUT MORE.

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anked third in the latest Fortune Global 500, oil and petrochemical giant Sinopec Corporation currently outranks global rivals such as Royal Dutch Shell, Exxon Mobil, BP and Chevron in terms of revenue growth.

Perth-based International Lubricant Distributors (ILD) distributes the Sinopec premium lubricants range exclusively throughout Australasia.

The ILD team is made up of a group of specialists with impressive credentials and experiences gathered from the world’s most reputable oil and lubricant companies.

Sinopec’s, and by extension ILD’s, business strategy melds a priority on cost efficiency with a commitment to research and development. The company’s recent development of a 100,000 tonnes-a-year (t/y) facility in Singapore, for example, is estimated to accelerate growth by 40–50 per cent over the coming years.

Such an investment has resulted in Sinopec being able to produce premium performance lubricants

containing the most advanced additive technology, in bulk, at much lower production costs.

“Sinopec’s Singapore plant is an important production, service and logistics centre, better enabling Sinopec to service customers across South-East Asia, Australia and New Zealand,” explained ILD managing director Tim Seeber.

“While we have a crystal-clear focus on the changing world of lubricant chemistry, modern vehicles, plant and machinery, we also take it upon ourselves to understand each customer’s business, what logistical and financial pressures they face and how they constantly look for ways to improve their bottom-line profitability.

“Our new approach as an alternative provider has resulted in the growth of ILD’s customer base of blue chip companies in the mining and transport industries.”

Sinopec’s close relationship with global original equipment manufacturers (OEMs) has also been crucial in gaining all necessary approvals to assure that its lubricants meet the standards of OEMs and

AUSTRALIANMINING

international authorities. High on global OEM agendas is the ongoing development of lubricant technology that can effectively contribute to vehicle fuel economy – the micro benefits that push lubricants beyond previously unattainable performance levels.

This is particularly beneficial to the mining industry, where even minute changes in both vehicle lubrication and fuel consumption can pay dividends in overall performance. In addition, Sinopec attempts to stand out through the provision of gratis comprehensive technical support, a service for which other providers generally charge a premium, a further concession to Sinopec’s focus on the bottom line.

“We quickly understood that escalating supplier prices were reducing company profitability,” explained Seeber. “While lubrication is a small operational cost component of modern mining

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businesses, the wrong choice or use of inferior quality lubes to meet budget constraints can have devastating downtime and productivity losses that impact business profitability.”

Such testing includes lab and field trials that clock up millions of kilometres, with produced data undergoing forensic analysis to assure performance.

“Sinopec’s ability to manufacture premium quality lubricants at lowerthan-industry prices has allowed us to successfully challenge the lubricant industry head-on,” said Seeber.

“Our customers are experiencing an advanced product option that delivers equal, if not better, lubrication benefits that not only help protect their vehicles and plant, but also protects their profitability.” AM

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

FUTURE OF MINING MATERIALS HANDLING VOLUME 110/2 | MARCH 2018

WORKFORCE MANAGEMENT

THE TOP TRENDS IN MINING

Established in 1908, Australian Mining continues to lead and inform the Australian mining industry of the latest innovations in mining technology and equipment.

WHAT IS SHAPING THE FUTURE?

Australian Mining’s promotional features provide organisations with a forum to showcase the role each mining sector plays in helping the industry achieve its modern-day targets.

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DEMOLITION

HERE COMES THE BOOM DYNO NOBEL HAS BEEN WORKING ON ITS LATEST INNOVATION IN DETONATION INITIATION TECHNOLOGY FOR THE PAST FIVE YEARS. AUSTRALIAN MINING TALKS TO LEAD PRODUCT ENGINEER NICO SWART TO SEE HOW THE DIGISHOT PLUS.4G HAS PERFORMED IN THE FIELD.

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yno Nobel is one of the world’s most famous explosives companies. Inspired by the groundwork laid out by Swedish namesake Alfred Nobel, Dyno Nobel was originally founded in Norway in 1865 and operates today as a multinational and subsidiary of Australian manufacturer Incitec Pivot.

Recently, the company’s engineers embarked on a project to improve the technology of its electronic initiation systems, the systems that allow the explosives to trigger.

Product engineer Nico Swart has been working on the company’s DigiShot Plus.4G from concept to creation for roughly five years. The preliminary stages of development actually started in earnest as a multitiered process about two to three years ago. Originally from Pretoria, South Africa, and a long-time employee of the company (nearly 14 years), Swart described the DigiShot Plus.4G as something of a passion project for the engineering team.

“It’s become like a family base,” he explained to Australian Mining.

“We’ve got good relations with the people we work with.

“They introduced it in stages,” he explained. “If you look at the equipment you’ve got the firing system, and the handheld tagger, which is the device you interact with the detonators on the bench.

“That was introduced first, so it focused the developers’ resources on that system and then from there, they developed the actual control equipment that’s used to initiate the blast.”

Safety was the main reason for the upgrade. The system makes use of a number of forward-thinking systems.

With previous initiation equipment, delays were stored on external devices for detonation initiation, and if the device got damaged, the whole setup process would need to be redone. Backup devices could help to rectify this issue but the new system takes things further; all necessary process data required for initiation is stored within the detonator itself, so should a delay

occur, operators can now swap out control equipment instead.

“You are ready to go in two minutes,” explained Swart.

The DigiShot Plus.4G allows operators to connect to bus lines, also called firing lines, in any order they like. This is a significant development as traditionally, a unique blast ID would be assigned to each blasthole for capture, but since the DigiShot Plus.4G knows the actual location of the detonator, once the location is assigned, the detonator knows where it fits in the blast panel.

Dyno Nobel’s proprietary PCbased ViewShot blast design software enables timing patterns to be downloaded directly from the PC into the CE4 Tagger. The extensive use of RF sync in lieu of wired setups is another win for the Dyno Nobel think tank. There are no wires between the firing point and the bench commanders, and no wiring between the commanders themselves.

“The boxes can be scattered as long as there is effective line of sight (LOS),”explained David Gribble, manager, applications technology at Dyno Nobel, and current director of the DigiShot Plus.4G’s rollout. “A lot of systems on the market require the boxes to all be connected up.”

“Instead of having multiple boxes on your bench and running cables between them to link them up together, we can just place them on the bench and they all talk to each other through radio,” added Swart.

While such quality of life improvements are welcome, it is important to note that the DigiShot Plus.4G doesn’t necessarily improve the accuracy of blasting.

Its 1USP is how it can save time in a safe and efficient way during the firing process.

“It doesn’t change the overall accuracy,” explained Swart. “The system limit on timing is stored from zero to 20,000 milliseconds in onemillisecond increments, so that is all the same.

“Current electronic detonator systems use an RC oscillator that is temperature dependent, so the current systems available have to AUSTRALIANMINING

THE CE4 TAGGER AND COMMANDER USED WITH THE DIGISHOT PLUS.4G SYSTEM.

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DEMOLITION

INSTEAD OF HAVING MULTIPLE BOXES ON YOUR BENCH AND RUNNING CABLES BETWEEN THEM TO LINK THEM UP TOGETHER, WE CAN JUST PLACE THEM ON THE BENCH AND THEY ALL TALK TO EACH OTHER THROUGH RADIO.” physically talk to each detonator and calibrate it to make sure it fires at the desired time.

“But with this new system, we’ve built that into the actual detonator so it can self-calibrate. I don’t have to address each detonator anymore, which removes a lot of time during the firing process. There is generally a lot of delay during the firing process in getting the system ready to fire.”

With this reduction in time comes a reduction in operator training, as well, since all necessary processes are now stored on the detonator. Individual detonators, strings of detonators or the entire pattern can also be tested prior to connection to the blast commander. The DigiShot Plus.4G can also have up to 400 detonators per channel, and 16,000 detonators across 10 commanders.

Dyno Nobel’s DigiShot upgrades aren’t relegated to the initiator and detonator alone; wiring too has seen an upgrade, with improvements in tensile strength, as well as impact

and abrasion resistance. This is a particular point of pride for Gribble.

Like Swart, he comes from a storied engineering background – one of his first major projects (now nearly 30 years ago) was the invention of the ANRUB explosive, a low-density, low-shock energy explosive designed to slow down the explosive rate of reaction, a feat achieved by replacing the then-standard fuel oil with rubber particles.

Before joining Dyno Nobel as a senior technical consultant, where he has worked for nearly 15 years, he was an employee of Rio Tinto. He explained some of the improvements to the initiation wiring, further increasing reliability.

“One of the weak points with electronic systems in general is that the wires go in the hole, and when you load them into the hole, lay explosives, and cover them with rock to stem the hole, it can sometimes cause a cut in the lead,” he explained.

“That can cause all sorts of issues,

AUSTRALIANMINING

DYNO NOBEL’S ‘BLACK MAMBA’ INITIATION WIRING IS EXTREMELY RESILIENT TO BREAKAGE.

naturally – if you cut it completely you can’t talk to the detonator, and if you cut it a little bit you can get leakage.

“We’ve done a lot of work over the last 10 months about what makes a good initiation wire and we now understand the factors that are better required in order to make it. Our 4G system has rolled out alongside

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our new wiring, called Black Mamba, comes in both a standard and premium ‘XTM’ configuration, for lengths of 37 metres and above.

It’s a real step up compared to our previous wire.”

This wealth of upgraded systems eventually coalesced into a tangible whole just over a year ago, with preliminary trials to prepare the DigiShot Plus.4G for market launch having taken place around the beginning of 2017. Following a positive and extensive testing period, the product saw its commercial rollout beginning in the second quarter of 201. Response from operators, Swart said, has been largely positive. “So much so,” Swart concluded, “that they ask us why we even introduced the previous system instead of this one.”

Like his colleague, Gribble is happy with how the launch turned out and how the DigiShot Plus.4G has been received, with lead times for the product having been cut drastically on account of the company’s emphasis on local assembly.

“It reduces our supply chain from several months to a few weeks,” he explained.

“We are the only supplier that has had local assembly here in Australia, starting from the middle of last year. The majority of our products are locally made which gives us shorter lead times and the ability to respond more efficiently to customers’ orders.” AM

MINERALS PROCESSING

FLSMIDTH CONTINUES MANUFACTURING IN AUSTRALIA THE MINERALS PROCESSING SPECIALIST’S NEW SERVICE CENTRE IN THE HUNTER VALLEY FEATURES A WOVEN WIRE MANUFACTURING FACILITY. AUSTRALIAN MINING REPORTS.

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LSmidth has confirmed it will continue to design and manufacture its range of woven-wire screen media for the mineral processing, construction and aggregate industries in Australia.

The media, including galvanised and stainless steel square mesh, specialist agavibe and polyvibe and a range of architectural screens for the civil construction sector will be manufactured in the woven wire plant, part of the company’s new facility in the Hunter Valley.

FLSmidth country manager Mark Clifford said the mineral processing specialist saw no reason to cease local manufacturing.

“Our new facility has a dedicated manufacturing zone, our people are

well-trained and the range of screen media we produce has a reputation for quality and performance,” Clifford said.

He added that local manufacturing gave the company the advantage of fast response, shorter lead times and screen customisation and the quality control needed to meet the performance demands of a variety of generally abrasive slurries, aggregates and industrial and commercial environments.

“Additionally, any sizing, suitability or performance issues are quickly resolved,” he said. “The customer is not waiting for a response from an overseas manufacturer and the possibility of an extended resolution period.”

The locally made screens have been an integral part of the Australian

mineral processing industry for around 40 years.

The first models were manufactured under the Hunter Screen Products banner until that company was purchased by Ludowici Australia. In 2012, FLSmidth purchased Ludowici and successfully merged the design and manufacturing processes into its own business model.

“The design, materials and technology inherent in the screen media range we produce continues to evolve, just as processing methods and the diversity of potential applications also evolve, but the quality of the products and their performance characteristics remain high and keep our screens as market leaders,” Clifford said.

Along with direct supply to customers across the country,

the woven wire screen media manufactured in the Hunter Valley plant are used in the company’s range of processing screens manufactured in the company’s facilities at Pinkenba, Queensland and Welshpool, Western Australia.

The screen media plant is part of the company’s new 4700-squaremetre purpose-built facility, which is also home to the customer service and product support services for the region, a 1700-square-metre workshop, and also houses local administration, sales and project management teams.

FLSmidth’s new workshop is 40 per cent larger than its previous workshop. It is equipped with a digital exciter test bed and provides service and testing facilities for screen and centrifuge vibration exciters. AM FLSMIDTH’S WOVEN WIRE FACILITY.

AUSTRALIANMINING

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MONITORING

ACCURACY UNDER PRESSURE BESTECH’S AREND WIERINGA EXPLAINS HOW SENSORS ARE ASSISTING THE MINING INDUSTRIES IN REDUCING DOWNTIME AND OPERATIONAL COSTS. AUSTRALIAN MINING LOOKS AT HOW THE MELBOURNE-BASED COMPANY HAS GROWN OVER THE LAST DECADE AND A HALF.

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ow a national sales manager, Arend Wieringa joined Bestech nearly a decade ago, and was the only sales engineer in the company at that time.

During this time, he has seen it grow from two or three engineers with a small range of products, to a team of 15 engineers selling a wide range of specialty products for industrial automation, test and measurement nationwide.

Bestech is proud of supplying internationally-renowned industrial sensors with local support in Australia.

One of Bestech’s most popular product ranges are pressure sensors; including transducers, transmitters, digital gauges or switches.

This is what set the foundations of the company in place since its establishment more than a decade ago. For Wieringa, it is of utmost importance that the company keeps abreast of new technology in this field.

“We do a lot of work within the R&D departments a wide range of industries and assist them with developing test and measurement solutions for specific applications,” he explained. “We also supply

engineering training and teaching equipment for universities and TAFE, as well as technical teaching facilities and schools around the country.”

Within the mining industry in particular, Wieringa and his team have seen an emerging trend and demand for low-power pressure transmitters that are ideal for integration with wireless data acquisition systems.

In response to this, Bestech has created a line of custom sensors to tailor for specific needs, especially using wireless radio frequency identification, or RFID, technology.

“I think we’ve made a real inroad into having a more flexible direct acquisition system, where we’ve got wireless sensors that have got capabilities of getting more data from many different sources, including WiFi and RFID,” explained Wieringa.

“Compared to a decade ago, the sensors have now offered higher speed, better accuracy, smaller, more compact units, as well as increasing compatibility with Ethernet and Ethercat connections.” He added.

Accurately measured data allows users a better and more accurate analysis for monitoring mining environments and predicting equipment breakdown and to

schedule a preventive maintenance.

“Bestech recently provided sensors for an application to monitor strain in mining structures as a way to suitably extend mine life, saving time and money in the process,” Wieringa said.

Another one of Bestech’s products, the Safe-T-Bleed system of the Fluid Power Training Institute (FPTI), allows stored energy in hydraulic systems to be properly discharged before maintenance to avoid hydraulics-related injuries.

“When you have a hydraulics system, there is a possibility of stored pressure and energy pockets within the system even after the machine is turned off and the system is locked out,” explained Wieringa, “and if you don’t release all that pressure when you undo a hose to carry out maintenance procedure, you are exposing yourself to immediate hazards that

THE 21D-DC RFID IS JUST ONE OF THE THOUSANDS OF PRODUCTS IN BESTECH’S PORTFOLIO.

FOUNDED IN 2002 IN MELBOURNE, BESTECH HAS NOW EXPANDED ACROSS AUSTRALIA WITH ADDITIONAL OFFICES IN SYDNEY AND BRISBANE.

AUSTRALIANMINING

could potentially lead to a lifethreatening injury.”

Wieringa refers to the inhouse hydraulics testing system, MF102TSE, available from Bestech, as being one of the world’s best hydraulic training systems.

It educates hydraulics technicians as it integrates fundamental theory with real-world practice. Amongst other things, it teaches the principle of micro leak testing, the ability to safely diagnose faulty and worn hydraulic components, and thus reducing downtime and saving thousands of dollars in maintenance costs, while highlighting safe work practices for employees. It’s a product Wieringa hopes Bestech can build further success on.

“That’s something I think we could really tap into,” he said. “There’s definitely some big cost savings there for our customers.” AM

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FUEL MANAGEMENT

FUELLING AUSTRALIA’S MINE SITES FUELCO HAS DELIVERED FUEL AND LUBE STORAGE SYSTEMS AT MINE SITES AROUND THE COUNTRY. AUSTRALIAN MINING TAKES A CLOSER LOOK AT THESE PROJECTS.

A

reliable supply of fuel is essential for Australian mining and resources operations, many of which are located at remote sites.

Without constant fuel supply, companies risk an increase in operational downtime, impacting productivity and returns to shareholders.

Fuel storage expert Fuelco has delivered diverse projects for the mining and resources industry, providing turnkey modular solutions to satisfy important storage requirements.

The company’s clientele includes the resources industry’s biggest names, such as Rio Tinto, BP and Exxon Mobil. For these clients, the projects have involved designing, manufacturing and installing complete storage solutions, including bulk diesel fuel systems, bulk lubrication oil systems, power generation systems and more.

Fuelco’s projects are executed with its range of self-bunded tanks; fuel access and management systems; unloading and dispensing equipment; pump bays; and pumping packages.

The company’s systems are easily upgradable to cater for increased storage needs or can be separated to create multiple points of distribution.

“Utilising a modular containerised approach, minimal civil works are required for the installation of our fuel storage solutions,” Fuelco managing director John Rush told Australian Mining.

“Systems are pre-assembled and fully wet-tested to ensure complete fit and function to customer requirements prior to shipping to site. This translates to a reduced cost and risk profile.”

Here, Australian Mining provides a series of mini case studies demonstrating Fuelco’s expertise.

Bulk fuel farm upgrade

A major mining-related project delivered by Fuelco involved the supply of additional tanks and dispensing systems for heavy vehicle refuelling.

Fuelco designed and installed the complete bulk storage system, with the aim of integrating its infrastructure alongside existing tanks and systems.

As part of the project, Fuelco

FUELCO OFFERS COMPLETE FUEL STORAGE SOLUTIONS.

developed comprehensive designs for client review prior to supply and installation. The designs included linking kits and pipework for the integration with existing infrastructure.

“Modular and transportable fuel tanks are ideal for the mining industry where the volume of fuel required can increase or decrease depending on mining activities,” Rush said.

“Their self-bunded design is well suited to areas where strict environmental regulations exist.”

Fuelco used the Logitank Klassic LTKL 110 tank on this project, an ideal solution for storing fuels and lubricants, and storage capacity up to 110,000 litres.

The project was delivered on schedule over a short period, with Fuelco making only minor design changes as requested by the miner.

“Overall, the customer was impressed with the facility and Fuelco’s ability to complete the works in such a short time frame,” Rush commented.

“Fuelco staff remained on-site after handover to ensure the equipment supplied, and the entire facility, was operating to customer expectations. This was necessary to ensure the miner was AUSTRALIANMINING

completely satisfied with our services and equipment.”

Bulk lube management system

A bulk lube management system project saw Fuelco provide tanks and dispensing equipment at three sites in New South Wales.

Fuelco supplied the equipment on behalf of a lubricant manufacturer and supplier in the mining industry. The company designed and constructed a complete system for the sites, with focus on integrating the solution with existing infrastructure.

The designs included calculations, piping and instrumentation (P&ID), drawings of the facility’s planned pipework routes, equipment selections, shop drawings and installation instructions.

Logitech Klassic LTKL 12 tanks were used, providing the miners with an ideal solution for refuelling vehicles, trucks and fleets.

To ensure zero harm, Fuelco performed a safety-in-design risk assessment and satisfied health and safety acts and regulations. Fuelco also worked closely with third parties and contractors to ensure the work was coordinated in a safe manner.

Rush was proud of the project

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outcome, adding that it led to Fuelco receiving more orders for lubricant tanks.

“The customer was impressed with the facility and Fuelco’s ability to complete the works in such a short time,” Rush said.

Bulk fuel and lube farm

Fuelco developed a diesel and lubricant oil storage facility for a miner operating in the Pilbara of Western Australia.

The project, which saw Fuelco design, fabricate, install and commission the facility, included concept design, hydraulic calculations, pipework design, automated tank gauging, and dispensing systems.

Fuelco used a combination of standard Logitank Klassic Tanks, as well as multi-compartment tanks, walkways and loading links.

Pumphouse and hose reels were other elements incorporated into the design for unloading and dispensing purposes. The Logitank Klassic, which is available in two styles, is a self-bunded tank suitable for storing a range of fluids, including bulk diesel and lubricants. These tanks are designed to be transported and installed with minimal civil works. AM

AUTOMATION

ON THE PULSE AUSTRALIAN MINING TALKS TO SEAN CARTER OF SICK AG ABOUT HOW HDDM+ TECH IS THE NEXT STEP FOR SURFACE SCANNING.

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ith 8000 employees and 50 subsidiaries to its name — not to mention €1.4 billion ($2.18 billion) in European sales — SICK AG is a major player in the sensor market.

Following an extensive testing process, the company recently released its latest distance measurement technology, known as HDDM+ (High Definition Distance Measurement Plus), designed for use in a variety of sensors, including distance sensors and 2D and 3D LiDAR (light detection and ranging) applications.

Normally, laser distance sensors work by measuring the time it takes for a laser beam to travel from a sensor, hit a target, and return to the sensor.

This distance can be very accurately calculated by simply multiplying the time taken by the speed of light, a calculation known as ‘time of flight measurement’.

HDDM+ goes beyond this by firing up to a few hundred pulses at a time, allowing statistical analysis of all measured values to calculate a “mean” value based on variables caused by surface factors such as air pollution and surface properties of the target.

Dr Thorsten Theilig, head of product unit long range distance sensors at SICK AG in Waldkirch, Germany, explains that the HDDM+ allows for a wide range of measurements to be taken. Its multiecho capability can distinguish up

to eight reflective contacts (known as echoes), which can then be acknowledged or blanked by the user as he or she sees fit.

The HDDM+ sensor recognises these echoes returning from objects other than the target object, such as rain, snow, fog, dust, birds, fences, glass etc., and discards responses that do not fit the expected pattern of measurements.

In the past, contact with reflective substances or objects, such as fog, glass, dust, snow, leaves, rain and link fences have often lead to false positives for sensors, but HDDM+ is intelligent enough to avoid these echoes, and can even read results from mirrored surfaces, including evasive materials such as liquid aluminium.

In combination, these properties make the HDDM+ particularly well

suited to outdoor use.

The echo that is evaluated is usually the relevant target echo. Targets with very low remission (i.e. surface reflectivity) can also be detected and measured more accurately than with a single pulse or a smaller burst of pulses.

“HDDM+ takes this a step further and increases the number of pulses in each burst; we’re now taking many, many hundreds,” explained Sean Carter, product manager at SICK Australia.

“Along with this some extra data processing and filtering is introduced that refines even further the accuracy of the measurements — it takes some serious processing to be able to handle that data.”

The first HDDM equipped sensors came out about eight years ago, and

AN HDDM+-EQUIPPED SICK SENSOR IN OPERATION ABOVE A CONVEYER BELT.

AUSTRALIANMINING

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eventually spread across various product ranges.

The HDDM+ technology started appearing about two years ago, and has subsequently come to slowly replace previous HDDM tech through its increased reliability and accuracy.

Speaking of LiDAR, HDDM+ technology can be utilised to provide gap-free detection and measurement through incorporation into LiDAR sensors.

For example, when the LiDAR is conducting a surface scan, the HDDM+’s multiple pulses allow for effective blending of surface scans, effectively eliminating anomalies.

This is a step beyond conventional LiDAR scanners, which make use of single pulse technology to scan a field of view (FOV) with separate and quite distinct laser spots.

Given the extent of these innovations, it is no surprise that SICK AG has a great sense of pride in the technology.

According to Carter, customers have been impressed too.

“Measurement performance is much better than more traditional technologies and even in very dusty environments we have had some good results,” Carter said.

“Our latest LiDAR sensors — as used in autonomous vehicles in the mining industry — use HDDM+ technology, and initial feedback is that customers are very surprised at the accuracy of the measurement data they are getting.” AM

PRODUCT SHOWCASE

MAPPING OUT PRODUCTIVE DRILL AND BLAST OPERATIONS AUSTRALIAN MINING EXPLORES THE DIVERSE WAYS THAT MAPTEK BLASTLOGIC SOFTWARE IS IMPROVING THE EFFICIENCY OF DRILL AND BLAST ACTIVITIES AT MINE OPERATIONS AROUND THE WORLD.

D

rill and blast is a crucial activity that can shape the productivity and economic performance of a mining operation.

Not only is drill and blast a major cost for mine operators, but it is also a difficult process to accurately measure and assess.

Drill and blast teams face myriad challenges associated with drilling route allocation, operational loss through rough estimations of drilling length, load design, reporting and control.

But if executed with precision, drill and blast can be a vital ingredient of a high-performing mine that sets it apart from the competition.

Mining software expert Maptek developed its BlastLogic solution as an all-in-one tool to reduce drill and blast risks and deliver the level of productivity companies demand.

BlastLogic removes divergence from drill and blast plans, potentially making gains of up to 60 per cent in key processes. This potential is being realised at sites mining a diverse range of commodities around the world.

For example, a South American copper mine saved more than $US100,000 a month in nominal overdrilling after installing BlastLogic.

The mine lowered costs by streamlining its blast process to

overcome the inherent complexities that changes in the technical landscape add to drill and blast.

Safety performance also improved — where it was once dangerous to bring the rig back to re-drill, BlastLogic enhanced the operator’s control from hole to hole.

Tier 1 companies in Australia, North America, Africa and Asia are also experiencing similar benefits at coal, iron ore, copper, zinc, gold and diamond mines.

In Australia, a Western Australian gold mine and a Queensland metalliferous coal operation both required vibration control to manage risk.

The mines rely on BlastLogic to control safety at adjacent underground operations by checking and modelling vibration based on blast design.

Also in WA, an iron ore mine and a gold operation both use BlastLogic to optimise fragmentation, dig rates and crusher throughput.

“Being able to correlate rock type, ore grade, drill penetration rates and blast design allows more informed value-in-use decisions to be made,” Maptek blast accuracy solutions manager Mark Roberts told Australian Mining.

“This capability enables mines to integrate single process improvements into a holistic mine-to-mill blasting approach.”

BlastLogic is also a valuable tool

COMPARING DIGGING TO DESIGN WITH BLASTLOGIC.

that reduces the cost of drill and blast at these mines, while mitigating degradation in fragmentation.

Through its modelling and analysis capability, BlastLogic shows engineers how their blast objectives are impacting the design, Roberts explained.

“It then allows them to check compliance to design in real time as the plan is executed in the field,” Roberts added.

BlastLogic is complemented by Maptek’s other products, which further optimise a mine’s safety and productivity when combined.

Several copper mines focus blast designs on wall control to create steeper, reliable walls to recover more ore, while also reducing the structural safety risk.

Maptek PerfectDig and I-Site laser scanner are used to monitor the design of the walls during excavation. Maptek

COMPARING AS BUILT TO DESIGN WITH BLASTLOGIC.

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Sentry is applied to monitor movement and to identify trends or risks.

As these mine examples demonstrate, BlastLogic addresses drill and blast challenges regardless of geology, commodity type, engineering expertise, technology footprint, processes and business drivers.

BlastLogic simplifies and accelerates the process of creating and implementing advanced blast designs, while measuring and reporting on blast accuracy, Roberts continued.

“This is achieved through realtime data integration, reporting and 3D visualisation across critical stages of blast design and implementation,” he said. “Data is stored and managed centrally in BlastLogic providing easy access to users across different teams or disciplines.”

“Operations with BlastLogic efficiently identify issues as they arise and proactively manage safety, risk, productivity and cost.”

BlastLogic delivers these benefits by accumulating data from mine planning, drill guidance systems, field surveys, actual load parameters and post-blast evaluation into a single platform.

Being able to rapidly identify deviations at critical operational stages means that production improvements can be achieved and drill and blast targets reached, according to Roberts.

“Outcomes can be recorded and tracked through blast performance factors, reconciliation to design, production reporting and inventory management,” he said.

“As Maptek develops BlastLogic in collaboration with industry we’re able to quickly respond to requests, such as configurations for site specific databases.” AM

PRODUCT SHOWCASE

WEIR MINERALS LAUNCHES CERASMOOTH COMPOUND WEIR MINERALS HAS INTRODUCED THE CERASMOOTH COMPOUND — A WEAR LIFE SOLUTION FOR THE FGD MARKET. AUSTRALIAN MINING EXPLAINS.

CERASMOOTH HAS BEEN SPECIALLY ENGINEERED FOR USE IN FGD APPLICATIONS.

M

ining technology and services provider Weir Minerals has upgraded its polymerceramic composite for the Flue Gas Desulphurisation (FGD) market.

Specially engineered for use in FGD applications, the Cerasmooth compound is designed to provide ultimate wear and corrosion resistance.

“We are focused on the continuous improvement of our materials, which is why we have enhanced our existing formulation to improve component wear life and meet the ever more demanding market’s needs,” Weir Minerals executive vice president of engineering Patrick Moyer.

Cerasmooth material was developed for the Warman GSL pump series but can also be used for any acidic, light slurry application.

The FGD application can experience wide variations in pH during operation and also contains erosive components in the slurry. This makes it difficult to select an optimum metal solution to cover the range of possible conditions.

Materials used in this application need to be capable of handling these

demanding and varying operating conditions.

“The polymer matrix of Cerasmooth is almost impervious to the extremely acidic environments that can occur in FGD duties, and the ceramic filler provides outstanding wear resistance to the typical erosive particles in the slurry,” Weir Minerals director of research and development

Edward Humphries said.

Cerasmooth compound has an equal combination of erosion and corrosion resistance, which work together to deliver optimum life in an FGD circuit, offering customers longer wear life than ever before.

“Significant in-house wear testing has shown that up to 60 per cent improvement over the previous

polymer ceramic material offering can be obtained. This has been achieved by successfully improving the bond that holds the wear resistant silicon carbide grains in place during the wear process,” Humphries said.

“In addition, the uniquely formulated composite material boasts increased mechanical strength and improved strain characteristics, achieving flexible strength as high as double that seen in first generation materials.”

By utilising Cerasmooth material, operators can significantly improve the service life of their pump compared to metal and rubber liners.

Compared to a rubber lined pump, Cerasmooth compound has an increased ability to withstand the cutting damage that can be caused by pipe scale coming loose from the FGD circuit and passing through the pump.

Cerasmooth material was developed through a rigorous process of testing various polymer binders and ceramic fillers to find the optimum combination to deliver the performance required.

Weir Minerals recognises the importance of material development for its customers and continuously produce state-of-the-art materials to improve component wear life. The Cerasmooth material is now available in Australia and across the globe. AM

CERASMOOTH CAN IMPROVE THE SERVICE LIFE OF PUMPS.

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PRODUCTS

SCHAEFFLER FAG HEATER The broad range of new FAG HEATER devices can be used to swiftly and economically heat rolling bearings weighing up to 1.6 tonnes for mounting and maintenance operations. A broad range of bearing sizes – from bores of 15mm through to outside diameters of up to two meters – can be heated using this range of devices, which includes both table units and floor units.

These new HEATER devices are equipped with a Delta-T control, which uses two sensors to continuously measure the temperature difference between the inner and outer side of the component being heated during the heating process.

This makes the Delta-T control a particularly safe solution for rolling bearings. The heating process can also be started with a time delay via remote control in order to provide increased safety for the mounting personnel.

• schaeffler.com.au • (02) 8977 1000

SPECTRAL EVOLUTION EZ-ID

BOSSTEK DUSTBOSS DB-30 FUSION

Spectral Evolution’s EZ-ID mineral identification software is now available for integration with GeoSPEC high-resolution library, an archive of over 237 individual minerals comprised of 600 ultra high-resolution scans.

Samples scanned via the SR-6500 field spectroradiometer can make for easy mineral classification and categorisation, while EZ-ID software users have access to two libraries in addition to the already mentioned GeoSPEC; USGS and SpecMIN, comprising a total of 2700 spectra for 1047 minerals.

EZ-ID software can be used for real-time mineral identification with outcrops, in pits, with hand samples, and is especially useful in fast and accurate core logging applications. EZ-ID can perform spectral matching of your unknown target to your library sample in as little as two seconds.

Dust suppression company BossTek has unveiled a portable dust suppression device, the DustBoss DB-30 Fusion, the latest entry in the BossTek product family. Unlike its larger siblings, water is supplied to the DB-30 Fusion by a standard 15.8mm garden hose, so it can be used at just about anywhere in spitting distance of a spigot. Equipped with an in-line 75 mesh, 200-micron filter, the unit can also be specified with special filtration to accommodate non-potable water sources.

• bosstek.com • 541-306-4815 (USA)

• spectralevolution.com • 978-687-1833 (USA)

AUSTRALIANMINING

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PRODUCTS

HANDHELD GROUP NAUTIZ X9 With a quad-core processor running Android 7 OS, 2GB of RAM, a 13 megapixel rear-facing camera, and 4G and LTE functionality, the Nautiz X9 handheld PDA doesn’t skimp on the expected bells and whistles.

Developed by Swedish company Handheld Group, a leading manufacture of outdoor-ready mobile computers, the Nautiz X, designed for harsh, industrial work environments, is the latest in the company’s line of Android offerings, featuring a global mobility specialist (GMS) certification, and access to a full range of Google Play Store apps and features.

• handheldgroup.com

CHUTE TECHNOLOGY DISCRETE ELEMENT MODELLING (DEM) The latest in long-life coal chutes and bins from Aussie manufacturer Chute Tech, Discrete Element Modelling (DEM) feature space-age ceramic tile abrasion lining and replaceable high-impact wear elements with chromium carbide overlays, reducing the need for maintenance.

Chute Tech partner Tom Woods explained that the first batch of DEM products were already in operation at a major Hunter Valley mine, delivering satisfactory results.

“Using DEM technologies proven in coal and ore applications throughout Australia, Chute Technology was able to model and translate into reality an optimum configuration that minimises impact and abrasion zones and smooths the flow of material,” Woods said.

“The new design eliminates some common impact and abrasion zones, while placing additional impact and wear protection in other zones most subjected to maintenance issues.”

• chutetechnology.com.au

ENWARE ET1400 EMERGENCY TANK SHOWER Enware’s latest foray into portable emergency showers, this new emergency tank shower features a 1400-litre, insulated tank with fastfilling connections, strainers, water level indicators and temperature gauges. Designed to meet the needs of heavy-duty industry on locations such as remote mine sites, fracking sites and other harsh environments, the ET1400 is compact and easy to deploy and relocate.

• Enware.com.au/Product/ET1400

AUSTRALIANMINING

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EVENTS

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

2018. An expo jointly organised

by Minex Mongolia, Expo Mongolia and the Interational Expl Bureau of Mongolia, Mongolia Mining will feature over 120 booths and several external equipment spaces from a wealth of exhibitors.

• +976 113 440 010 otgondulam@minex.mn STRATEGIC MINE PLANNING & OPTIMISATION: GEOVIA WHITTLE & ISIGHT, PERTH, APRIL 16–20

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA (PDAC) 2018, TORONTO, MARCH 4–7 The Prospectors & Developers Association of Canada event, more commonly referred to as PDAC, is one of the world’s leading mineral exploration conventions; having started all the way back in 1932, it now boasts an attendance of more than 24,000 people and 1000 exhibitors from all over the world.

The four-day event features a packed schedule filled with short courses across several exhibit halls (some of which are already sold out such is the show’s continuing popularity), trade shows, networking event, an exchange for the 3800 investors taking part, and perhaps most intriguingly, a ‘prospectors tent’ that provides a venue for self-employed and independent prospectors to show off samples.

• pdac.ca info@pdca.com +1 416 362 1969

PAPUA NEW GUINEA MINING MISSION, PNG, MARCH 12–16 This PNG-focused excursion will allow attendees to meet senior staff from companies such as Barrick Gold, Harmony Gold, St Barbara and Newcrest, as well as attend meetings with the PNG Chamber of Mines and Petroleum on this fiveday mission to Papua New Guinea.

The mission is expected to build on the successful 2017 excursion from last year, and is open to Austmine members for around $2500–3000 plus goods service tax.

• robert.trzebski@austmine.com.au NSW WOMEN IN MINING AWARDS 2018, SYDNEY, MARCH 15 Jayne Azzopardi of 9News will host this celebration of female leaders making their mark on the New South Wales mining industry. The NSW Women in Mining Awards will hand out five awards; Exceptional AUSTRALIANMINING

Woman in NSW mining; Exceptional Young Woman in NSW Mining; Outstanding Tradeswoman/Operator/ Technician; Gender Diversity Champion (male or female); and Excellence in Company Programs and Performance. The winners will then go on to the Women in Resources National Awards (WIRNA), which will take place later on in the year.

• 02 8121 2210 MONGOLIA MINING 2018 INTERNATIONAL MINING & OIL EXPO, ULAANBAATAR, APRIL 4–6 Mongolia’s mining developments are back in the news recently following Rio Tinto’s announcement that it would be opening a new office in the country’s capital of Ulaanbaatar as well as continued talks over the Oyu Tolgoi copper-gold project.

And so it goes that the best and brightest of the local industry will convene at Mongolia Mining

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A five-day course for planners, engineers, directors, scientists, metallurgists, and all other applicable industry professionals to gain knowledge in mine planning and optimisation software.

Instructed by professor of mining and engineer Hooman Askari, who leads the University of Alberta’s Mining Optimisation Laboratory (MOL) team and has over 20 years of experience in open pit design and planning, this course will include lectures, computer labs, and case study presentations. Software courses will include instruction in Dassault System’s GEOVIA Whittle and Isight programs, and Excel Solver, three valuable digital tools for strategic mine planning.

Other topics will include instruction in Lane’s Theory, CAPEX optimisation, Lerchs -Grossman 3D algorithms (pit optimisation), stockpiling, risk management and many more.

• hooman@optitek.ca +1 780 893 9365 (Canada) nswmining.com.au 02 9274 1400 AUSIMM ACHIEVE AND INSPIRE CONFERENCE, SYDNEY, MAY 18 An event dedicated to inspiring thought leadership. Speakers from the industry include Chris Gibbs, chief executive officer of Austmine, Jacqui McGill of BHP Billiton and Minerals Council of Australia Chairman Dr Vanessa Guthrie. Topics will include ways to improve the mining and resources industry, driving cultural change and improving the industry’s reputation within the community.

• achieveinspire.ausimm.com

NOMINATIONS NOW

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