Australian Mining March 2014

AM0314_001

- 1

2014-02-24T10:52:30+11:00

SERVING THE MINING INDUSTRY SINCE 1908

VOLUME 106/3 – MARCH 2014

www.miningaustralia.com.au

NO.1 FOR MINING TECHNOLOGY AND EQUIPMENT

Iron ore

innovation The Pilbara in focus

The Forecast

2014 in focus

What the year will bring

P.10

Drill & Blast

New drilling technology Block caving and blasting

P.18

Automation

Efficiency

Drones & Mapping

P.24

Print Post Approved PP100008185

Mapping & Surveying

Superior software Planning and modelling

P.28

AM0314_000_GOU

-

1

2014-02-19T10:01:39+11:00

GOUGH PLASTICS Specialising in Poly Solutions for Industrial Applications Storage Tanks

Bunding

Highest UV-resistant tank-grade polyethylene Gallon and Litre tanks.

Ideal for safe storage in both permanent temporary installations.

For camps and process applications.

Tanks also fabricated to specific requirements.

Australian Standard Accreditation - AS4766 Lic. 21381

Suitable for bulk bins, 200L drums and tanks.

330L Bund also available.

Other sizes fabricated upon request.

Adaptable for hazardous substances.

Beltcover

Custom Fabrication Gough Plastics PO Box 7570, Garbutt BC QLD 4814 833 Ingham Road, Bohle QLD 4818 Ph: 07 4774 7606, Fx: 07 4774 7608

Quotation Date: Quote Number : Valid Until: Terms: Prepared By:

Truck Tanker

Customer

14/09/10 333 11/10/10 C.O.D. Simon Gough

Details: ZZCASFAB

Truck Tanker

Customer 100

ITEM CODE

ITEM DESCRIPTION Fabricated

Truck Tanker

QUOTE QTY 1

UNIT

PRICE 10000.00

DISC %

NET UNIT PRICE

0

10000.00 100

Total excludin g GST TOTAL (includin GST g GST)

Beltcover is a modular, low-cost, light-weight, polyethylene conveyor cover.

Weather-proof, easily assembled, providing easy access to the belt and dust suppression.

Our specialist design team is ready to assist with your project.

Side Covers and Spill Trays available.

TOTAL EX TAX 10000.00

10,000.00 1,000.00 11,000.00

Gough Plastics have a highly skilled team of plastic fabricators who can design, manufacture and repair products.

Your customised product is as easy as 1, 2, 3.

Step 1: Fax or email us your design sketch.

Step 2: We prepare a quote for you.

Step 3: We create your customised product.

GP4685

For more information about these great products: Caring for the planet and its people with a passion

GP4685 - Concept 1.0.indd 1 Since 1989

CALL 1800 069 805

Ph: (07) 4758 6400

sales@gough.com.au

833 Ingham Rd, Bohle TOWNSVILLE

Fax: (07) 4774 7608

www.gough.com.au

Proud members of the Association of Rotational Moulders Australasia

12/2/14 10:40:37 PM

AM0314_003

- 3

2014-02-24T14:57:20+11:00

COMMENT

Mining Is the downturn over?

Australian

Cirrus Media Manufacturing & Electronics Group: Associate Publisher – Martin Sinclair Email: martin.sinclair@cirrusmedia.com.au Editor – Cole Latimer Tel: (02) 8484 0652 Email: ozmining@cirrusmedia.com.au Journalists – Vicky Validakis Tel: (02) 8484 0964 Email: vicky.validakis@cirrusmedia.com.au Brent Balinski Tel: (02) 8484 0680 Email: brent.balinski@cirrusmedia.com.au Ben Hagemann Tel: (02) 8484 0884 Email: ben.hagemann@cirrusmedia.com.au Group Sales Manager – Tim Richards Tel: (02) 8484 0829 Mob: 0420 550 799 Email: tim.richards@cirrusmedia.com.au Key Account Manager – Sharon Amos Tel: (07) 3261 8857 Fax: (07) 3261 8347 Mob: 0417 072 625 Email: sharon.amos@cirrusmedia.com.au WA Representative – Jamie Wade Mob: 0435 945 868 Email: jamie@wadebusiness.com.au South Africa – Bob Stephen Stephen Marketing PO Box 75, Tarlton, Gauteng 1749, South Africa Tel: 27(011) 952 1721 Fax: 27(011) 952 1607 USA – Jonathan Sismey Cirrus Media 24th Floor, 125 Park Avenue, New York, NY 10017 Tel: (1) 212 370 7445 Fax: (1) 212 370 7441 Email: jsismey@ix.netcom.com Larry Arthur Cirrus Media Suite 203, 3700 Campus Drive, Newport Beach, CA 92660 Tel: (1) 949 756 1057 Fax: (1) 949 756 2514 Email: lharthur@ix.netcom.com Graphic Designer – Dave Ashley Production Co-ordinator – Tracy Engle Tel: (02) 8484 0707 Fax: (02) 8484 0966 Subscription Rates – Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 Reader Services – 1300 360 126

With a return to profit and massive spikes in revenue, has the mining slump passed?

H

as mining’s gloom lifted? This time last year we saw mining companies spiralling out of control, costs bite, and CEO heads roll globally.

To say it was an industry in turmoil is an understatement.

Thousands of jobs were lost, projects and expansions were put on hold, and every single day the predictions for the industry got grimmer and grimmer.

So it’s unsurprising that the new blood brought in at the top levels decided to take a knife to costs; slashing away with vigour.

Both Rio’s Sam Walsh and BHP’s Andrew Mackenzie set their companies new financial targets that many thought were unlikely.

Yet here we are, and Cirrus Media they’ve not only achieved Tower 2, Level 3, 475 Victoria Avenue, Chatswood, them, but outperformed in NSW 2067 Australia Locked Bag 4700, Chatswood Delivery Centre, most cases.

NSW 2067, Australia Tel: (02) 8484 0888 Fax: (02) 8484 0633 Both the majors saw an ABN 80 132 719 861 ISSN 0004-976X increase in profit and revewww.cirrusmedia.com.au © Copyright Cirrus Media, 2014 nues, with Australia’s own All rights reserved. No part of the publication may be Pilbara player Fortescue folreproduced or copied in any form or by any means without the written permission of the publisher. lowing suit and delivering almost a quadrupling in profit.

BHP managed a 5.9 per cent increase in revenues year Average Net Distribution on year for the 31 December Period ending Sep 2013 8,031 2013 half year, growing to Printed by Bluestar Print 83 Derby Street, Silverwater, NSW 2128 US$33.95 billion, with an Tel: (02) 9748 3411 enormous 82.9 per cent spike Published 12 issues a year in profits, which saw it rake in US$8.1 billion.

A M 0 3 1 4 _ 0 0 0 _ K I N - Rio 1 4 2 0saw 1 4a- 10 0 2per - 1 Tinto cent increase in earnings over

Comment Cole Latimer ozmining@cirrusmedia.com.au the last 12 months, rising to US$10.2 billion, which was well above analysts’ predictions of US$9.7 billion for the year.

It also generated US$3.67 billion in net profit as well.

Fortescue, however, was the major stand out.

It reported a surge of 259 per cent in its half year profit growth, lifting its shipments on the back of its Solomon Hub developments.

Revenue for the miner also rose nearly 80 per cent as well.

And all this in spite of a lower, though much more stable, iron ore price and a practically harmful coal price; although the lower Australian dollar did have a part to play.

On top of these returns miners are also looking to lower their cost bases even more over the coming years.

Unfortunately in doing so, they accumulated a large chunk of their cost savings to the detriment of their exploration and greenfields budget – with a greater focus on ex-

panding their brownfield assets and maximising efficiency on existing operations.

In the short term this is a great strategy.

Production is increased, costs are slashed, free cash flow is increased, and dividends can be paid to shareholders.

Everyone is kept happy.

In the long term, however, they are likely to be shooting themselves in the foot if they ignore the need to uncover new assets.

But this is a problem that can be addressed at a later date no doubt.

For now, the industry deserves to enjoy a return to prosperity, one, that according to most, will continue as we enter the next mining cycle and profitability again.

FRONT COVER

2 T1 3 : 1 7 : 1 3 + 1 1 : 0 0

ON the front cover of this edition we’ve featured the concept drawings for the Roy Hill mine.

Currently under construction, Gina Rinehart’s massive iron ore mine has been one of the most focused upon developments in the region of late.

Especially as it integrates the latest automation technology into its operations in a forward planning manner. In this edition we also focus on the latest automation and remote control technology, in particular the rise of drones on site and their use in mapping and maintenance.

Following from this we’ve also investigated the newest developments in mine mapping and surveying technology, and what is helping miners get a better handle on their sites.

Rugged pre-cleaner with exclusive polyurethane tensioning system Perma-Torque®.

Uniform cleaning pressure and superior cleaning performance.

Quick and simple blade change with less downtime.

Stainless steel options available.

www.miningaustralia.com.au

AustralianMining

March 2014

3

AM0314_004

- 4

2014-02-24T15:41:16+11:00

Contents 2014: The year ahead

March 2014 issue

Features PILBARA SPOTLIGHT Progress in the Pilbara The Roy Hill mine in focus .............................p14-16 DRILL, BLAST & GEOMECHANICS Australia unexplored New technology partnerships are opening up new areas ............................................................. p18 Russian to Australia A new player in explosives ................................... p21 Staying on track Blasting in built up areas ...................................... p22 AUTOMATION & REMOTE CONTROL A revolution revolt?

The future of automation: Drones ...................p24-26

The 10 things to expect this year….p10-12

The building blocks of block caving

MAPPING & SURVEYING Layered approach to mine construction Tracking your buried assets.................................. p28 Aiding laser focus Real time dragline measurement and mapping ..... p29 The whole nine yards Limitless mapping capacity .................................. p30 Australian mapping company acquired Digital developments ............................................ p30 Advancing underground mine planning New planning partnerships .................................. p31 MATERIALS HANDLING A modular approach to conveying The modularisation of Fortescue’s Solomon Hub conveying operations...............................p32-33 A bearing materials handling Conveyor motors and drives ................................ p34 MAINTENANCE & MONITORING Scale of the problem Cutting the issue of pipe scale .............................. p36 Troubleshooting belt cleaners Optimising belt production .................................. p37 The importance of compressor maintenance Cutting costs through proper compressor maintenance ....................................................p37-39

Regulars

The latest technology developments….p20

4

March 2014

AustralianMining

INDUSTRY COMMENT .......................................... p6 NEWS ................................................................... p8 PRODUCT FOCUS: PPVC ................................p4043 PRODUCT SHOWCASE .................................p46-47 EVENTS ............................................................... p50 www.miningaustralia.com.au

AM0314_000_ATL

-

1

2014-02-24T16:27:55+11:00

The New 18 tonne Scooptram Enjoy the ride!

The greatest ride in the mine The all new Scooptram is smart, hard working and easy to like. By combining advanced technology and smart features – the new 18 tonne loader means a big move for safety, manoeuverability, comfort and productivity in underground operations. It’s the greatest ride in the mine.

Enjoy the ride!

Design your own Scooptram ST18 on www.StyleMyST18.com Atlas Copco Mining and Rock Excavation Australia Freecall: 1300 366 880 www.atlascopco.com.au

AM0314_006

- 6

2014-02-21T15:02:01+11:00

INDUSTRY COMMENT

Why the mining industry needs to

EXPLAIN ITSELF T

ensions between activists and miners have spilled over, with the battle over the Maules Creek mine playing out for all to see on the world wide web.

The problem for the mining industry is it is the activists who have the loudest voice.

Direct activism at Whitehaven Coal’s Maules Creek mine site has seemingly being going on for an age.

More than a dozen people have been arrested since the protests began, as people continue to tie themselves to gates, mining equipment, and trees in an attempt to stop the company from constructing the mine.

They’ve taken to the streets of the local towns and Sydney to make their voices heard, with tensions boiling over into a physical confrontation at Whitehaven’s offices.

But away from the protests on the ground, another battle has emerged as protesters push to have their voices heard through social media sites like Twitter and Facebook.

In an opinion piece by NSW Minerals Council boss Stephen Galilee, he slammed the protesters direct action approach, stating they “have decided they have the divine right to protest, unfettered by the laws to which the rest of us are bound, and regardless of any risk to themselves or those around them”.

Galilee says that after his opinions were voiced “the river of bile spat through social media was astounding”.

Australian Mining’s Vicky Validakis explains why the mining industry has been caught out on social media by the Leard protestors.

He claims he was personally attacked and had his opinions associated with an icon of Nazism.

“The rest of us have a right to be heard too,” he said in a statement released yesterday.

“You can protest, but do it within the laws that are there to protect yourself and others.”

Following his comments activists took to social media, accusing Galilee of double standards after he labelled one activist a dinosaur of left-wing ‘hate journalism’.

Protestors have caught miners on the backfoot. Image: Lock The Gate Alliance

6

March 2014

AustralianMining

But this wasn’t just a one-off direct attack on Galilee.

They are online all day, every day tweeting to Environment Minister Greg Hunt, writing blogs, and posting photos.

Australian Mining itself has also come under fire from some, particularly after this piece was originally published online.

Using the hashtag ‘#leardblockade’, activists are constantly encouraging each other and sending out call-to-arms to the public to support their case.

A fundraiser has been organised in the inner west Sydney suburb of Marrickville this weekend to raise funds to ensure protests can continue.

“It’s called democratic right to protest. We still do live in [a democracy], right?” one said.

They are also using sites like Flickr, various blogs and Instagram to spread their message.

Protesters of this mine continue to gain momentum online and the more they talk the more one-sided the message will be.

What is apparent is that the industry has underestimated how far these people were willing to take their fight.

And it caught the sector napping.

Yes, the mine has all the required approvals, is hiring locals, and will

spend in the millions on wages and services during its life.

But how will the public know this if the industry doesn’t get out there and educate people online.

It is all really part of a bigger problem the sector has created for itself in its lack of effective communication, being afraid that if it has a voice then it immediately lends itself to criticism, and the industry is too scared of copping flak.

Instead of being on the front foot and setting the agenda, it sits in wait to pour cold water on trouble.

Trouble, which in this example, has been brewing in the Leard State Forest for more than 500 days, and has not stopped since the first tent was erected in protest.

While we all want to see activism conducted properly and within the lines of the law, it doesn’t come as a surprise that the protesters have gone to these extreme lengths.

Many of them are ideologically opposed to coal mining, no matter what mining says or does they will remain opposed to it – and while the industry cannot fight this it can probably work on the way it consults and talks to the rest of us so its social licence to operate remains intact.

And we’re all online so miners should be there too. www.miningaustralia.com.au

AM0314_000_SAN

-

1

2014-02-14T13:42:40+11:00

CUT COSTS ON EVERY METER DRILLED. THIS WAY! Imagine if your drill rods and tubes for bench drilling lasted more than 30 percent longer.

You would drill more meters on every shift and reduce your cost per meter, increasing profit.

The new Sandvik +Range rods feature the company’s unique steel alloy, which is much more resistant to heat and wear. The alloy is designed to extend service life, requiring fewer rod changes while improving safety and reducing stock and handling costs.

The new +Range offering, which includes T38+, T45+, T51+ and GT60+, is compatible with standard drilling products.

Join the movement toward The Future of Mining.

It’s This Way: mining.sandvik.com SANDVIK MINING Part Sales 1800 1 7263845 | General Enquiries 1300 1 7263845 info.smc-au@sandvik.com | www.mining.sandvik.com/au

+Range-Australian-Mining.indd 1

13/02/2014 2:59:00 PM

AM0314_008

- 8

2014-02-20T14:04:27+11:00

HEADLINES

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.miningaustralia.com.au to keep up to date with what is happening.

120 jobs snapped up at Blair Athol Of the 2100 applications received for work at Blair Athol mine, a lucky 120 people have been offered positions at the operation.

Emails with offers of employment have been distributed, but a date for when workers will hit the ground is uncertain as the completion of sale is still being finalised.

A subsidiary of Linc Energy, New Emerald Coal, acquired Blair Athol mine from Rio Tinto in October.

NEC will reopen the mine with a view to produce up to 3 million tonnes of thermal coal per year via what it calls “low-cost, targeted mining operations”.

Executive general manager of operations Jason O’Rourke said he hoped to have crews start in April.

He said the number of applications received was “impressive”, with many coming from the Central Queensland region.

“About 60% were from Clermont,” O’Rourke said.

“Around 35% were from the Emerald, Mackay, Rockhampton areas, so you’re still talking central Queensland.”

Fake training qualifications prompts safety alert A number of Queensland mine workers may be operating under false qualifications, forcing the Department of Natural Mines and Resources to issue a safety warning to mining companies.

The move comes after Rockhampton police charged the director of North Australia Career and Training Services with fraud and forgery offences.

It is alleged that Jeniffer Deasy could have been issuing fake certificates as far back as 2012.

Detective Sergeant Nick Williams urged people with qualifications, especially in occupational health and safety and human resources, to have their certificates checked.

“It’s quite possible she has been conducting training for a period of over two years in which the qualifications may not be recognised,” Williams said.

Acting on the police report, a Department of Natural Resources

8

March 2014

AustralianMining

and Mines spokesperson said it was concerned the allegations may impact safety on mine sites.

“The issuing of fraudulent certificates may have a direct safety impact in relation to the management of risk at your mine site,” it said.

“The Queensland Government takes very seriously the need for workers in the mining industry to manage risk by operating with valid and competent mine safety training qualifications.

“That is why a safety alert is being issued to all mining industry operators to check their training records and assess their exposure to the possibility of fraudulent qualifications issued by training providers.”

Man dies after rockfall at WA gold mine A 59-year-old man died at Central Norseman Gold’s Harlequin mine in an underground rock fall accident.

New Zealand father of three, Wayne Fowlie, was fatality injured at the site on a Saturday morning.

Fowlie moved to the mining town of Norseman in mid-2012 but was months away from retiring and planned to return to New Zealand.

“He was one of the nicest guys in town,” neighbour Sharne Pietersen said.

“Everybody knew him. He would give you the shirt off his back.”

The WA Department of Mines and Petroleum said inspectors were sent to the site that Sunday from Perth and Kalgoorlie.

Rio Tinto announces positive results A series of cost cutting measures and efficiency procedures over the last 12 months have paid off as Rio Tinto announces a jump in earnings to US$10.2 billion.

The figure is will above analysts’ expectations which predicted the miner would earn just under US$9.7 billion for 2013.

This is a spectacular comeback for the miner, and generated a US$3.67 billion annual net profit for 2013, despite the general downturn across the industry.

Much of this is due to the heavy cost cutting it carried out across

Australian Mining gets the latest news every day, providing mining professionals with the up to the minute information on safety, news and technology for the Australian mining and resources industry. the board, which Rio Tinto CEO Sam Walsh forecast following his appointment last year.

Just over a year ago Walsh promised an “unrelenting focus on pursuing value for shareholders”, including tightening up project protocols and overall capital expenditure, after the miner posted its first ever full year loss in 2012, down US$3 billion.

“To do this we need to run the business as owners not managers and my immediate priority is to build more focus, discipline and accountability throughout the organisation,” Walsh said at the time.

“Demonstrating this commitment, we will deliver our capital reduction and cost savings targets and improve performance across our business,” Walsh stated.

“It’s all about shareholder value.”

BHP sees spike in profit and revenue BHP Billiton has recorded a 5.9% increase in revenue and a massive 82.9% spike in profit for 2013.

In its latest results, the global miner announced an increase in its year on year revenue to US$ 33.95 billion, and an enormous leap in profits for the year of US$ 8.1 billion compared to the previous period, although it was still a drop from in net profit from its June 2013 US$10.9 billion results.

In a similar result to fellow international miner Rio Tinto, which last week announced a jump in profits to US$3.67 billion, BHP recorded across the board revenue increases as it slashed costs.

This is no surprise result for BHP, after it brought in new CEO Andrew Mackenzie to generate these results.

Following his appointment Mackenzie promised that “substantial cuts” would be made in an effort to see the miner through a global resources downturn.

In January last year Mackenzie said the miner would reduce capital and exploration expenditure to US$18 billion for the next financial year, down from US$22 billion the previous year.

“A substantial improvement in productivity and additional volume from our low risk, largely brownfield investment program contributed to a significant increase in profitability in the December 2013 half year,” the miner said in a company statement.

In its report for the 31 December 2013 half year BHP saw a 62.3% positive change in its profits from operations (EBIT), rising from US$7.9 billion in 2012 to US$12.93 billion last year.

BHP recorded a similar rise in net operating cash flow, rising 65.3% year on year from US$7.17 billion in 2012 to US$11.86 billion in 2013.

Council want answers on BMA’s Saraji job cuts Isaac Regional Council says it wants to know how many of the 230 job cuts from BMA’s Saraji coal mine will come from the local community.

Mayor Anne Baker said there was a high level of concern as to how many permanent residents would be affected by BMA’s decision to slash its workforce.

“Council has not yet been informed how many permanent versus nonpermanent residents have been affected and we are keenly watching this space,” Baker said.

“Of course, any reduction in employment is a blow to confidence – particularly when our region has recently witnessed workforce reductions.”

BMA announced the cuts after a recent review of staff determined

employee numbers were too high.

“BMA has made a number of changes across its operations to reduce costs and increase productivity in order to ensure that our operations are profitable and sustainable,” BMA Asset President Lucas Dow said.

Batgirl shuts down Boggabri coal mine Activists dressed in bat suit costumes have shut down Idemistu’s Boggabri coal mine after using harnesses to suspend themselves upside down on the site’s coal loader.

According to environmentalist group Front Line Action on Coal, activists dressed as bats scaled the coal loader early this morning and unfurled a banner that read ‘Save the Leard’.

The mine has been shut as a result of the action with police forced to remove the protesters after they refused to descend from the loader after more than nine hours.

The activists say they are protesting against Idemitsu’s expansion plans which they claim will lead to the “destruction of the Leard State Forest”.

Forge debts mount amid claims of iffy spending The amount of Forge Group’s debt has risen to more than $700 million as claims surface that managers made questionable spending decisions in the months leading up to the company’s collapse.

Administrator Ferrier Hodgson said it is aware of claims on social media that some senior managers cashed in their leave entitlements and relocated to Sydney at the company’s cost.

According to allegations several Forge managers had been relocated to Sydney at a cost of thousands to the company after Forge first revealed its power station contract problems, The Australian reported.

These costs included a stamp duty bill of about $70,000 from the purchase of a new house and a 12-month lease paid in advance by Forge.

“The administrators have been made aware of these claims,” a spokesman for Ferrier Hodgson said. www.miningaustralia.com.au

AM0314_000_TOY

-

1

2014-02-25T14:39:35+11:00

AM0314_010

- 10

2014-02-19T08:29:25+11:00

2014 IN FOCUS

2014: The year ahead The 10 things mining should expect in 2014. Alex Heber reports.

A

s we start into the new year, Australian Mining has been analysing the top ten trends the mining sector is expected to encounter over the next 12 months.

1. Mining productivity hits new lows

With significant labour, production, equipment and regulatory costs all eating away at bottom lines it’s no wonder as commodity prices stabilise that miners are attempting to reign in and minimise runaway costs.

According to Deloitte the costs of adding capacity to an existing iron ore operation jumped from $100 a tonne in 2007 to $195 per tonne in 2012, while the coal sector was hit even harder.

For thermal coal adding capacity rose from $61 to $176 per tonne over the same period.

Record commodity prices over the last few years also gave way to mining lowergrade deposits which in turn saw companies’ costs spike.

“Some gold projects yield less than one gram per tonne,” Deloitte said.

“With 75 per cent of new base metal discoveries hidden at depths in excess of 300 metres, this practice is pushing up strip ratios – reducing the economic sustainability of mining lower grades.”

Mining contractor Barminco’s managing director Peter Stokes told Australian Mining the industry’s current quest to reduce costs is also a response the declining ore grades.

In fact in the last year in Australia Xstrata’s enormous Ernest Henry pit made the move to underground, while Chile’s famed Chiquicamata – an operation that has been mined as an open cut for more than 500 years and even appears on the currency, is even moving underground.

Working to bring costs 10

March 2014

AustralianMining

back inline Deloitte said many miners will be forced to produce fewer ounces or tonnes at higher grades.

Throughout 2013 miners captured headlines with their cost cutting agendas and mass layoffs.

Majors pledged to deliver improved shareholder value and rack up billions of dollars in savings, with BHP Billiton and Rio Tinto aiming to rip out a combined $10 billion from the organisations.

“Mining companies have retrained their focus on capital prudence, cost discipline, portfolio simplification and non-core asset divestment in an effort to improve ROI,” Deloitte said.

“They are shrinking the talent pool, reducing executive compensation and limiting funding approvals to only the highest quality projects in mining-friendly geographies.”

But the advisory firm warned to avoid cost creep trends miners need to go beyond traditional cost cutting measures and revaluate entire operational models, cost structures and company culture.

“Reducing costs over the long term requires mining companies to prepare for a hard campaign of changing

the way they do work. This, in turn, should spur them to look closely at their culture to determine if that needs changing too,” managing director of Venmyn Deloitte South Africa, Andy Clay said.

Deloitte said bucking the trend of one off cost reductions is important if miners wish to become and remain lowest quartile cost producers.

The advisory firm said implementing new technology including automation, using analytics to identify trends, rationalising supply chains, right sizing capital projects and transitioning to modular plants and projects are all strategies which can drive continuous improvements.

2. Market imbalances will wreak commodity price havoc

Iron ore, thermal coal and aluminium are all at risk of tipping over the edge into oversupply, Deloitte warns.

After years of unconstrained project development surplus supply and China’s impact on commodity markets are both factors set to make 2014 an interesting if not chaotic year.

“Government funding of aluminium production, for instance, is already pushing Chi-

na’s aluminium costs down to a level that other producers can’t match,” Deloitte stated.

Ramping up its domestic production of gold and coal also has the potential to reduce China’s reliance on global imports.

Coupling Chinese influence with supply and demand dynamics, Deloitte said a serious commodity price devaluation could be on the horizon.

According to CIBC World Market forecasts by 2016 gold could hover at $US1383 per ounce, silver will fall to $US22.81 per ounce and copper will drop to $US3.17 per pound.

A new report from IBISWorld has highlighted a predicted boom in Australian diamond and gemstone mining in 2014, becoming the largest growth industry in the country.

Its study into the top five industry set “to fly and fall” in 2014 placed diamond mining at the top of the success list, predicting a 24 per cent growth in revenues year on year, increasing from $663 million in 2013 to $821 million in 2014.

This is a turnaround for an industry that was facing serious job cuts in Australia,

with Rio Tinto only last year looking at a divestment of Argyle as part of the company’s wider strategy to get out of diamonds.

However the report was not all positive, listing mining exploration as one of the industries set for a decline in 2014.

Looking ahead Deloitte’s Chile mining leader Christopher Lyon said despite short term laggings the long term fundamentals remain robust, reacting to short term conditions he says has resulted in companies mothballing projects, and capping capacity.

“Taken to its logical conclusion, this behaviour will tip the sector back into a scramble to build at any cost within the next five to ten years. It’s time to break this cycle by embracing new ways to do business,” Lyon said.

3. Innovate or bust

Declining ore grades and resource depletion is forcing miners into increasingly remote locations and pushing up production costs.

When realising innovation opportunities miners cannot simply layer new technologies over old operating models; rather current models may require complete operation overhauls.

“This will present both challenges and risks, but failure to innovate will result in greater risk over time – not only as costs escalate, but as more remote mining heightens safety risks,” Deloitte stated.

The company’s mining leader for Canada, Jürgen Beier explains that tweaking existing process will not deliver the sizeable changes required in today’s capitalconstrained environment.

“To build true competitive advantage, companies must look beyond incremental performance improvement to determine how they can revise their systems to www.miningaustralia.com.au

AM0314_011

- 11

2014-02-19T10:06:58+11:00

2014 IN FOCUS

embrace the broad theme of innovation,” Beier said.

Innovation strategies for 2014 include automating processes and rethinking energy management, energy inputs account for between 40 and 60 per cent of a mine’s operation costs – thinking outside the box in terms of energy consumption can make a significant difference for miners.

Deloitte also explains that sharing infrastructure can also deliver economies of scale.

“By collaborating to achieve economies of scale (e.g. by building shared pipelines, water plants, power plants, etc.), companies can reduce costs while strengthening community relations in the process,” the company said.

nal issues,” Deloitte stated.

A recent PwC report claims M&A activity has slumped by about 31 per cent in the first half of 2013 when compared to the same period in 2012.

The 2013 January to June period saw just 649 deals completed, prompting the professional services company to attribute the lacklustre result to falling confidence levels fuelled by a wash of write-downs, market uncertainty, and tumbling commodity prices.

5. Record impairments

As miners and OEMs forge ahead with rationalisation

Rather majors are being increasingly selective with their investments all the while focussing on investor returns.

In November BHP opened its coffers, spending $301 million to replace two shiploaders at its Nelson Point port operations in Port Hedland, Western Australia.

The company said investing in the shiploaders will increase the reliability of its inner harbour port facilities.

The existing shiploaders are more than 40 years old and currently load iron ore at a rate of approximately 10,000 tonnes per hour.

“This investment will also create additional port capac-

6. Local community demands intensify

Residents living in mining affected areas are increasingly voicing concerns and demanding a certain level of interaction and transparency from miners operating in their region.

Now more than ever before a miner’s social licence to operate is just as important as its mining licence.

Decent corporate citizenship is key to a smooth working relationship between company and community.

Securing and maintain a social licence, miners are improving community engagement strategies both

4. Funding cracks widen

Back in 2013 Deloitte’s Tracking the Trends report forecasted a competitive battle for funding with debt financing remaining tight across global markets throughout the year.

For 2014 not a lot has changed.

Tougher economic times have hit Australia’s shores and many miners are no longer equipped to bear the brunt.

Deloitte explains poor returns on mining stocks in recent years have pushed companies out of favour with investors, adding that traditional lenders are also pulling away from the mining sector.

“While bank financing is still available, falling market capitalisations prevent companies from qualifying for the amount of funds they need to fuel growth,” Deloitte said.

But with funding increasingly difficult to secure it’s the junior mining companies that are increasingly fighting an uphill battle.

“Widespread financial crisis at the junior level could also cause a rash of unintended consequences, potentially driving shortfalls in commodities that majors no longer produce,” Deloitte stated.

But the problem is M&A activity is proving to be limited and interest from Chinese investors is lagging with it.

“While China still believes in owning more supply, it is currently struggling to cope with past deal flow and interwww.miningaustralia.com.au

Poor returns on mining stocks have seen investors and capital deserting the mining industry.

programs, edging further and further away from the ‘production at any cost mentality which has plagued the sector in recent years asset impairments will continue to mark companies’ bottom lines.

In the last 12 months Australia’s top 50 mid tier miners have plunged into the red, posting losses of more than $1 billion dollars, while there was no love lost with investors, wiping more than $17 billion off market values, a recent PwC report found.

Despite many operations being put on care and maintenance, major projects being postponed or cancelled, and assets being sold off, mining companies haven’t completely shut their wallets.

ity that can be utilised as a series of debottlenecking initiatives increase the capacity of our Western Australia Iron Ore supply chain towards 270 million tonnes per annum (100% basis), at a low capital cost,” BHP said.

Rio also followed suit approving a $400 million expansion plan to boost iron ore productioncapacity to 360 million tonnes per annum by 2017.

Rio chief executive Sam Walsh at the time said the new expansion plans are $3 billion lower than previous estimates and are in line with the company’s commitment to allocate capital to opportunities that will generate the best returns to shareholders.

face-to-face with open days, community drives and events, and digitally with real-time and personalised social media interaction and the dissemination of information.

But this is just the beginning.

Being proactive, enforcing local content policies and hiring locally are all strategies which can combat a good portion of community protests and ultimately enable miners to bring projects on line quicker.

“Recent years have made clear that many stakeholder communities are considerably more sophisticated than they first appear,” Deloitte Metals and Mining Lead, UK, Tim Biggs said.

“Many community groups have behind-the-scenes backing, which injects a political element into negotiations that may have been lacking in the past.

“Companies that do not make the effort to uncover the real drivers of stakeholder demands do so at their peril.”

7. Resource nationalism spreads

While Australia doesn’t have the same unpredictable level of sovereign risk as other mining nations around the world, it does have its own level of resource nationalism in the form of the mineral resources rent tax (MRRT) and the carbon tax.

Both have the potential to reduce company profits and interfere with project feasibility assessments.

And both are set to be repealed this year, if the Abbott government sticks to its election promise.

“Whether it’s through resource nationalism, special mining taxes or the gradual creep in taxation, governments are looking for a larger share of mining company profits,” Deloitte’s Queensland mining leader, Reuben Saayman said in last year’s report.

Australian Mining has previously spoken to Grant Thornton on this issue of rising resources nationalism and indigenisation.

At the time they explained that “increasing and unpredictable government intervention across the globe is adding further complexity to a sector that is already heavily laden with risk.

“The shadow of higher taxes, restrictive regulation and indigenisation looms large for an industry already grappling with the risks normally associated with exploration and extraction,” the company stated in its report Facing an uncertain future: Government intervention threatens the global mining sector.

The growing global threat of resource nationalism was rated as the number one fear for miners in an Ernest & Young report released last year.

Continued on page 12 AustralianMining

March 2014

11

AM0314_012

- 12

2014-02-19T10:07:37+11:00

2014 IN FOCUS

cluding rosters, production data, equipment maintenance schedules, and weather conditions.

Continued from page 11

In its report entitled Business risks facing mining and metals 2012-2013, global mining and metals leader for Ernest & Young, Mike Elliot, said “resource nationalism retains the number one risk ranking as governments seek to transfer even more value from the mining and metals sector”.

This is the year that resource nationalism spreads its tentacles across the globe riding a wave of mounting hostility toward mining governments are cracking down.

Not even three weeks into 2014 and Indonesia has made headlines, changing its mineral export laws in a bid to generate processing and smelting jobs within its borders.

Banning the export of unprocessed mineral ore was originally tabled in a bid to create more jobs and keep profits within Indonesia, forcing miners to develop smelting capacity by 2017.

Regulatory intervention is fuelling industry uncertainty, Deloitte explains.

“To prevent cost overruns and mitigate political risk, some companies are pulling out of controversial regions or putting projects on hold – actions that will leave governments without access to the revenues they seek,” the advisory firm stated.

Mitigating sovereign risk requires improving longterm government relations.

To achieve this Deloitte suggests forming policy development lobbies to meet with government stakeholders and influence the policy development process, coordinate local infrastructure projects, and hire and source material locally to keep communities onside.

8. Corruption crackdown

Resource nationalism, corrupt governments, changing domestic laws, culture and lack of transparency are all major risks for miners operating in high risk regions.

As anti-corruption regulations tighten across the globe the risk of non-compliance for mining companies also grows.

12

March 2014

AustralianMining

10. Talent gaps widen

Despite much gloom predicted for mining, there is still a bright outlook for the coming years.

“This extends well past the reputational issues associated with misconduct, exposing companies to steep fines and executives to the risk of personal liability and imprisonment,” Deloitte Africa Mining Leader, Tony Zoghby said.

But playing by the rules means and increasingly complicated regulatory environment which in turn pushes up the cost of compliance.

“It may also threaten to tip the balance between the costs and rewards of operating in over-regulated regions, thereby restricting the ability of major diversified miners to invest freely on a global basis,” Deloitte stated.

To avoid getting caught in a compliance trap, Deloitte recommends ramping up anti-corruption monitoring processes by implementing internal controls, training employees, conducting compliance audits and regularly updating risk assessments.

In the past 12 months a number of miners have been embroiled in corruption allegations.

The Independent Commission Against Corruption handed down its findings into the questionable dealings of former NSW mining minister Ian Macdonald and the granting of three exploration licences.

Just last week the State Parliament passed laws allowing it to cancel licences tainted with corruption.

The government terminated the Doyles Creek, Mt Penny and Glendonbook licences, leaving current owners NuCoal and Cascade Coal millions of dollars out of pocket.

In a statement Cascade Coal said the legislation commandeers its legal rights.

“The Government is clearly driven by political expedience and seeks to totally usurp the legal rights of innocent parties and override existing judicial appeals,” the company said.

It said cancelling exploration licences, denying compensation and forcing exploration data to be handed over is an “extraordinary and unprecedented action by the NSW Government”.

Handing down its findings ICAC said without tighter controls around policy and regulation corruption is inevitable.

9. Safety cultures flip

While the number of mining fatalities has dropped 24 per cent between 1993 and 2011, the statistic isn’t keeping pace with the 51 per cent decline achieved in non-fatal injuries.

“In mining, both serious incidents and fatality numbers remain high, particularly in many of the industry’s developing frontiers,” Deloitte stated.

What’s worrying is that as easier deposits are mined out and mining conditions

become harsher the probability of accidents occurring increases.

“Beyond resulting in lost production time, investigative costs, reputational damage and regulatory fines, fatal accidents take a huge toll on employee morale and have dire impacts on families and communities,” Deloitte said.

A changing industry means companies will need to take a new look at the way they tackle safety risk.

“By combining current safety practices with those designed to reduce fatalities, mining companies should see significant improvements in their safety outcomes,” Deloitte stated.

While mining companies often analyse masses of safety data, more often than not they end up without any significant insight or action plan, Deloitte’s National Leader for Corporate Responsibility and Sustainability, Valerie Chort explains.

“By examining the organisational factors that contribute to poor safety outcomes, and looking at non-traditional – but easily available – data points, miners can identify the employees at greatest risk of harm and objectively pinpoint the levers that can reduce those risks,” she said.

Crunching the numbers to improve safety requires modelling high risk events, re-examining procedures and breaking down data silos in-

Despite the thousands of job cuts made across industry throughout 2013, Deloitte is predicting the talent gap to widen, estimating that over the next decade at least one third of the current mining workforce will retire.

“The pace of worker attrition threatens both operational productivity and the leadership pipeline,” the company stated.

In 2013 the industry saw executive’s heads roll, and while some were ousted for poor performance, many moved into retirement or took on consulting positions.

“Senior managers are transitioning into new roles in new regions. Organisations that once maintained a commitment to talent development are undergoing significant layoffs, while executive salaries and bonuses are being cut,” Deloitte said.

“Interim management teams are replacing permanent hires.

“There has also been considerable movement on the boards of mining companies around the world, as companies work to attract directors with operational industry experience.”

The firm warns that mining’s specific talent shortage will transcend into the boardroom, reaching senior executive roles.

“This has left many companies without the skillsets crucial to shepherd them through the current commodity price downswing or ensure success in remote and unstable regions,” it said.

Attempting to lower labour costs while holding onto critical talent is a treacherous balancing act.

“The industry needs to develop different leadership skills as well and bring in management capable of improving productivity, controlling costs and maximising operational returns,” Deloitte’s director of strategic clients, Jenny Bravo stated. www.miningaustralia.com.au

UNM13793_AusMiningS.pdf

Page

1

1/12/2011,

2:10

PM

If what you do depends on Lime, talk to us.

Mining operations depend on Lime. Which is why industry leaders get their Lime from Sibelco. Whether it’s Quicklime, Hydrated Lime or one of many other limestone products you may require, you’re getting quality, premium Lime. Choose Limil from one of the seven Sibelco plants around Australia and you can look forward to 135 years of Lime manufacturing expertise, the security of long-term supplies and a level of quality and consistency that our ISO9001:2008 Quality Program delivers.

To find out more about Limil, Sibelco and our industry-leading products, visit www.sibelco.com.au

UNM13793

AM0314_014

- 14

2014-02-19T13:49:07+11:00

PILBARA SPOTLIGHT

PROGRESS

in the Pilbara Australia’s Pilbara region is defying much of the mining gloom, and seeing increased development despite a lower iron ore price.

D

espite the slowdown that hit the global mining industry, the Pilbara has still been powering ahead.

Record production in the region has managed to buoy both Rio Tinto and BHP Billiton, which both announced positive results for the 31 December half year on the back of their Pilbara projects, in the face of what was a weaker iron ore price.

But these two aren’t the only operations that have been steaming ahead.

With the $7 billion debt package needed to give Gina Rinehart’s Roy Hill mine the final green light expected to be finalised shortly, the project has been working at full throttle to ensure the automated mining project gets underway by mid-2015.

Late last year analysts had predicted the protracted equity raising process would stall production at the mine by 12 months, with many tipping start-up would not be achievable until 2016.

However the schedule remains on track, with nearly $3 billion in 14

March 2014

AustralianMining

contracts awarded and 2000 people already on the ground working to get the project up and running despite the final debt sign off not being finalised.

In a market where shaky iron ore prices and infrastructure constraints have hampered some would-be Pilbara producers, the same cannot be

said for the Roy Hill project which has been quietly forging ahead with its plans to build the largest single pit mining operation in the country.

Roy Hill is 70 per cent owned by Rinehart’s Hancock Prospecting, with the remainder split between South Korea’s Posco, Japan’s Marubeni and Taiwan’s China Steel Corporation.

The new $10 billion iron ore project is one of the largest in Australia.

The $10 billion iron ore development has undertaken one of the largest debt-raisings ever attempted in the mining sector, seeking $4 billion in funding from export credit agencies and an additional $3 billion from commercial banks.

Attracting dollars from overseas investors keen to get on board the low-cost, high quality ore project, final deals are said to be close to completion.

Among the foreign investors who have pledged to bankroll the mine is the Korea Export-Import Bank which agreed to offer up $1.12 billion for its development, the US government owned Export-Import Bank which gave approval for $US694m ($737m) in financing for the project and POSCO who offered up its 12.5 per cent share in Roy Hill Holdings as collateral for the project in a deal worth KRW 1.49 trillion ($1.4 billion).

Analysts say this show the economics of the project are solid and Continued on page 16 www.miningaustralia.com.au

AM0314_000_MIN

-

1

2014-02-10T13:53:11+11:00

We’ve got your Kawasaki and Kobe crusher parts And we’re experts at fitting them. Minprovise are distributors for Kawasaki and Kobe gyratory and cone crushers in Australia so we have a comprehensive range of replacement parts for older series models right up to today’s High Pressure Cone (HPC) units. More importantly, we have the team, the experience and the skills to safely and properly fit them for you onsite.

We also have our own heavy engineering workshops to fabricate any special orders or configurations. So don’t risk safety issues with parts and maintenance work for your crushers. Call Minprovise today and get the job done properly.

Minprovise Pty Ltd is certified to ISO9001, ISO14001, OHSAS18001 and AS/NZS4801

Tel: 08 9359 6800 - WA

ROLLERS

07 3255 5919 - QLD

R/C LOADERS

info@minprovise.com.au

MINPROVISE R E D U C I N G

CONVEYORS

w w w. m i n p ro v i s e . c o m . a u

T H E

OFF SITE SERVICES

R I S K S

CRUSHERS

14315 AusMin

AM0314_016

- 16

2014-02-19T13:52:53+11:00

PILBARA SPOTLIGHT

Continued from page 14

stack up for firms with long-term interests in the steel-making commodity.

And while steel growth in China is tipped to rise by only 3 to 4 per cent on the back of a surge of iron ore supply and record stockpiles, most expect prices to remain stable.

“I think 3 to 4 per cent steel production growth in China will absorb enough of the new iron ore supply to prevent a sustained collapse in prices this year,” Sydney-based RBC Capital Markets analyst Chris Drew said.

“If China can deliver 6 to 8 per cent steel production growth that would largely absorb all the new Roy Hill has built automation into its mining operation from the outset. supply.”

Located 115 kilometres north of building automation into their mine leading provider of solutions and Newman, the Roy Hill Project lies plan, meaning efficiencies can be services in the information, commuon the flat plains at the eastern end gained before the first day of mining nications and technology industry of the Chichester Range. even begins. explains that while automation in The mine is aiming to produce The company says automation the mining industry is a well-known 55 million tonnes of iron ore per is a “strategic objective” of the op- game-changer, a new approach to annum and the company says the eration’s profile, with the view to how it is actualised is required. project has a defined mineralisa- industrialise the site as much as pos“Streamlining a mining value tion of more than 2.4 billion tonnes sible to include all aspects of the chain, where the cost base is in the with grades of +55 per cent Fe iron chain from mining and transport billions, whilst improving producore, enough to sustain a mine life of through to loading ore onto ships. tion efficiency and output means more than 20 years.

It says this objective will reduce doing things differently, not just the And automation will be key in its dependency on onsite workers, same things more efficiently,” Ziemkeeping costs down at the site and create greater reliability, and pro- ski said. in turn paying back the billions that duce operational efficiencies.

“The ‘people first, technology will help to build it.

By adopting newly created auto- second’ approach should be every The Roy Hill team moved into its mation technology for the first time, resources company’s mantra.” new $50 million headquarters and re- the mine will also be moving into Ziemski says this will mean that mote operating centre in November, new terrain by being the first to im- instead of multi-disciplinary people and the company says the innovation plement what it calls “commercially working in siloes the team is first able implemented at the centre will be a available and/or emerging, but risk- to understand one another’s functiondefining feature of its operations. mitigated, technology and equip- al areas and interdependencies with Unlike other Pilbara mines which ment”, something miners normally the technology design, infrastructure have had to bolt-on their automated shy away from. and application that will best meet centres to existing operations, Roy Dr. Marcin Ziemski, principal that team’s needs following.

A M0 3 1 4 _ 0 0 0 _ MI N 2 0 1 4 - 0 2 - 1 2 T1 0 : 3 5 : 4 1 + 1 1 : 0 0 Hill is in the envious position of 1 consultant from Tech Mahindra, a Roy Hill has already awarded

16

March 2014

AustralianMining

multiple contracts to ensure the work of its automated mine site is a centre piece of its construction.

Schneider Electric signed a contract to provide a comprehensive Demand Chain Planning and Scheduling system for the mine while Wenco International Mining Systems has been tasked with deploying its fleet management system to the site.

“The Roy Hill project is not only a rich iron ore deposit, but it will also be a great example of integration of new technologies in surface mining,” Wenco regional director Jayson Bebe said.

Technology-based solutions provider Ansaldo STS Australia has also been called on by to supply rail haulage solutions.

As part of its two-year contract it will deliver voice-based and integrated electronic train order systems, centralised interlocking, automatic train protection with satellite-based location determination, and communication-based Hi Rail and track machine protection systems using digital communications.

The company said the solutions had been designed in synergy with Roy Hill Mine’s phased requirements and will set the “benchmark for operational flexibility and upgradability for heavy haulage mining railways”.

The company says through the use of “technology and innovative thinking” it will empower its employees to “continually design and develop improvements to business processes and systems in all areas of the organisation”, showing its team will still play an important role in maintaining the benefits of automation long after the contractors go home.

www.miningaustralia.com.au

AM0314_000_KET

-

1

2014-02-14T13:40:30+11:00

www.BuyFromTheLittleGuy.com

KETO Pumps isn’t as big as some of the mining pump companies out there but we pack a punch!

We always go for knock-out service (because when you’re not the biggest you have to).

For a smaller company we hold a lot of stock of impellers, bearing barrels, throat bushes, seals, bearings and most other items to fit our own and the bigger guy’s pumps - if you need mining pump parts as quickly as a rapid right hook, then try us out.

Our parts last longer too and we hold stock locally across most parts of Australia.

Try KETO Pumps - for heavyweight performance

To learn more about our capabilities and sign up for your FREE mine site assessment visit

www.BuyFromTheLittleGuy.com or call +61 8 6310 4100

AM0314_018

- 18

2014-02-18T09:11:39+11:00

DRILL, BLAST & GEOMECHANICS

Australia UNEXPLORED A new partnership is opening up Australia’s unexplored regions by using new technology.

G

eoscience Australia and Deep Exploration Technologies Cooperative Research Centre (DET CRC) are partnering together to uncover new Australian mineral provinces.

Part of this new agreement will also aid the creation of new exploration and drilling technologies that allow exploration through cover rocks that obscure prospective geology, a serious problem in regions like the Pilbara where some of the world’s oldest rocks and rock cover, is found.

Much of the program is focused on dramatically cutting down the geochemical and mineralogical analysis and assays of drilling samples.

This new partnership may be a boon for Australia, which is currently experiencing a major decline in exploration.

An IBISWorld report released earlier this year pointed to a continued decline in exploration in Australia.

This is no surprise for an industry that has already seen global exploration budgets take a massive hit.

Global non-ferrous metal exploration budgets have plummeted almost 30 per cent this year, new research suggests.

SNL Metal Economics Group’s Corporate Exploration Strategies surveyed almost 3500 mining companies around the world.

The group found total non-ferrous exploration budgets fell to $US 15.2 billion.

Major miners recorded a 24 per cent drop in exploration spend, whilst juniors took a bigger hit, with exploration budgets falling 39 per cent over 2012.

In Queensland alone explorers’ market capitalisation fell 31 per 18

March 2014

AustralianMining

cent in 2012-13 to $732 million.

Access to equity capital was listed as a significant problem with companies exploring in Queensland announcing $63 million in capital raisings in 2012-13, down 76 per cent in comparison to 2011-12.

Nationally, the amount of raisings was down 60 per cent in 201213 from $853 million to $342 million.

The latest IBISWorld report predicts the sector will continue to decline, falling another 7.5 per cent over 2014.

According to Geoscience Australia this is also due to “the face that relatively easy-to-find mineral deposits with a surface expression have largely been uncovered”.

“New mineral provinces must be found hidden beneath barren cover rocks and new technologies

are needed to search more efficiently and effectively.”

To overcome this issue, DET CRC will manage a drilling technology program on behalf of Geoscience Australia and the Geological Survey of Victoria in the Stavely Zone of western Victoria.

“Through this drilling program, Geoscience Australia and the Geological Survey of Victoria will seek to test a new geological interpretation of the region and to uncover the key geological indicators of potential new mineral provinces hosting metals such as copper, gold, nickel, and base metals.

It will uncover these new regions using conventional diamond drilling combined with new real-time downhole and top-of-hole sensing technologies.

The company said it would col-

The slashing of drilling exploration budgets has hit the sector hard.

laborate with the CSIRO, drilling technology and services company Imdex, and Olympus to deploy its Lab-at-Rig analytical system to “provide geochemical and mineralogical information on drilling samples as they are recovered [and] the data will be uploaded to the internet for real-time remote access; such new technologies seek to inform drilling decisions and, in due course, to replace time consuming and expensive lab based assays of drilling samples”.

DET CRC’s CEO, Richard Hillis, stated that “this collaboration provides an opportunity to field test and ‘pull through’ the new technologies that will be required to explore the 80 per cent of the Australian continent where mineral deposits are hidden beneath barren cover”.

“It is also a great example of different organisation collaborating under the UNCOVER mineral exploration strategy of the Australian Academy of Science.”

Andy Barnicoat, head of Geoscience Australia’s mineral division, said “our goal is to provide precompetitive data on the mineral potential of unexplored areas of Australia where prospective rocks are obscured by barren cover”.

“Drilling provides a critical source of information to confirm the nature of concealed geology, which reduces the technical risk to mineral explorers. Through this collaboration we will not only undertake this advanced drilling, but also help develop new technologies that are required for cost-effective and successful mineral exploration through cover, thereby assisting exploration in all covered areas of the Australian continent.” www.miningaustralia.com.au

AM0314_000_ACT

-

1

2014-02-12T16:15:01+11:00

WE DELIVER RESULTS. EVERY TIME. Action Drill & Blast is Australia’s fastest growing drill and blast contractor.

Providing services to the civil and mining industries, many of our team have over 20 years’ experience across a diverse number of projects and commodities including iron ore, gold and coal.

We understand what it takes to deliver results on time and on budget, recognising that each project or commodity has its own unique set of challenges and deliverables.

At Action Drill & Blast, we pride ourselves on our ability to provide drilling and blasting solutions that deliver tangible returns for our clients.

WE DRILL. WE BLAST. WE DELIVER. Visit actiondb.com.au or email wedeliver@actiondb.com.au

AM0314_020

- 20

2014-02-21T14:55:02+11:00

DRILL, BLAST & GEOMECHANICS

The building blocks of block caving New technology is allowing miners to monitor block caving flows in real time. Cole Latimer reports.

A

s the level of higher grade, easier to mine ores declines, many underground mining operations are looking at new ways of accessing their ore in the quickest, safest, and most cost effective way possible.

Block caving is being looked to as one method of bulk mining to access these ores, as it is recognised as one of the most economic underground mass mining methods to extract deep, low grade, massive orebodies that have regular footprints and large vertical extents.

Speaking to Rio Tinto’s Australian general manager for geotechnical engineering and cave management, Andre van As, he told Australian Mining that as Rio Tinto develops its block caving expertise in Australia it is looking to unique technologies to do it in more efficient ways.

Rio Tinto has been one of the major developers of the block caving methods, implementing it at its former Northparkes mine and the Argyle Diamond mine, with van As stating that “block caving is a very attractive mass mining method”.

The University of New South Wales has looked at developing its own skills in the area and even created a professorial chair in geotechnical engineering to support it, with mining expert Fidelis Suorineni installed in the role mid-last year.

“This is an exciting [development] that will enable us to develop a world-leading research, teaching and training effort in the growing field of underground mining and block caving,” the dean of engineering at UNSW, Graham Davies, stated at the time.

Head of UNSW School of Mining, Bruce Hebblewhite, explained that “this partnership recognises the importance of geotechnical engineering as a core element for successful and safe underground mining”.

20

March 2014

AustralianMining

Underground mining is likely to become more prevalent as miners seek high grades ores.

“[Block caving] is the lowest cost underground mining method available and is growing rapidly around the world, and there is a significant shortage of people with skills in these areas,” Hebblewhite added.

Some mining machinery manufacturers are also taking advantage of the growing interest in the method, with

Caterpillar releasing a new block caving ore handling system late last year.

The automated system increased the already safer mass mining method by not only improving the way in which the ore is moved, but removing the miner from the face.

Whilst block caving methods have been around since the 19th century, the

The technology monitors rock flow in real time during block caving.

technique has been coming along in leaps and bounds, particularly in South America, with van As stating that “the Chileans have been doing it for much longer [than we have in] Australia; most of Codelco’s copper mines are block caving operations”.

However despite its applications, not every mine is applicable, van As said, with the uptake depending entirely on whether the orebody is amenable to the operation.

“We’ve got a lot of catching up to do in terms of skills and methods in Australia, but we do have a strong competency in research and technology in Australia.”

Rio Tinto has partnered with CRCMining, Newcrest, and Elexon Electronics to develop cave flow tracking systems for use in block caving operations.

CRCMining’s cave tracking technology uses 3D positioning systems to enable real-time monitoring of sensors in the block cave, which move with the ore, to optimise flow of caved materials and minimise ore dilution.

Whilst there has been similar technology developed before, none have been

trialled in actual mine environments before, making this Australian technology a real world first.

“The Cave Tracker system will enable real time mapping of cave material movement, which can be used to minimise dilution and maximise recovery from caves,” CRCMining’s hard rock and surface mining program leader Dihon Tadic said.

“Monitoring the material flow in block caves has not been possible previously, leading to poor control of block cave operations and sub-optimal outcomes.

“The technology will assist in development of improved caving models, which will enable miners to design better cave layouts, ultimately improving mine safety and productivity,” he said.

Rio Tinto’s general manager of geotechnical engineering and cave management for copper, Andre van As, explained the miner’s support and backing of CRCMining and its partners, stating “we now have a way of remotely and wirelessly tracking rock mass movements in real-time, and preserve the integrity of the resources”.

“Previously the industry used dumb markers as a way of monitoring ore flow, such as marked tyres or pieces of steel, but we can now monitor as it flows in real time”.

Regarding the technology and this latest block caving partnership, van As said “the real value is in preserving the security and integrity of the resource”.

“By monitoring the flow of material in real-time we can potentially minimise the dilution in recovering ore from the block cave, thereby improving performance.

“The technology will also significantly improve safety, and enable better management of the mine.”

Testing as a first generation commercial product is slated for mid 2014. www.miningaustralia.com.au

AM0314_021

- 21

2014-02-19T13:18:02+11:00

A M0 3 1 4 _ 0 0 0 _ A U S E

-

1

2 0 1 4 - 0 2 - 1 4 T1 3 : 3 8 : 1 6 + 1 1 : 0 0

DRILL, BLAST & GEOMECHANICS

DEVELOP NEW BUSINESS

CQEXPO CENTRAL QUEENSLAND

INDUSTRY & RESOURCES 19th & 20th March 2014

ROCKHAMPTON SHOWGROUNDS A comprehensive two day expo showcasing products & services for mining, LNG, general industry & business.

Register online to exhibit or visit this event

www.cqexpo.com.au

Russian to Australia

MAJOR SPONSOR

A new player is entering Australia’s explosives market.

B

lasting is big business in Australia. And even as the boom slows down, and begins to bite into the mining bottom line of explosives manufacturers such as Orica and Incitec Pivot, there are still opportunities in the space.

Which is why one foreign explosives manufacturer is looking to Australia as a prospective market.

Russian emulsion explosives maker Nitro Sibir has taken a massive leap into Australia, and is opening a new factory in Kalgoorlie, Western Australia, to access the country’s emulsion marketplace.

Speaking to Duncan Minto, a technical manager for Nitro Sibir Australia, he told Australian Mining that the company is looking to begin operating in the country as soon as possible.

“They have operated in Russia and Finland for sometime, and it has become routine for them, so Nitro Sibir is looking to expand its operations. They are currently looking at Africa, Canada, and Latin America,” he said.

“But in terms of Australia they want to dramatically increase their operational footprint in the country, as Australia is one of the most profitable regions for explosives companies in the world.” www.miningaustralia.com.au

But he was quick to state that it wasn’t looking to take the major on head to head, “instead we are looking at coming in with a different offering”.

“We are looking to provide shorter lead times and greater customisation, the focus is going to be on being more agile.

“Nitro Sibir is also looking at different approaches to delivering ammonium nitrate to mines, and providing it on site,” he added.

Minto went on to say that the company is also taking a different tack to most when setting up in Australia.

Instead of simply importing its emulsion, Nitro Sibir is already laying the ground work for manufacturing in Kalgoorlie.

Nitro Sibir “already have a completely modularised emulsion plant, sitting in four separate containers waiting to be moved to Kalgoorlie where it can be built and commissioned,” Minto said, adding that it got the lease for the manufacturing site in December last year.

It is also a win for the local area, Minto stating that it will create between 15 to 20 jobs during construction, as well as new permanent jobs during operations.

The company works with Australian company Explosives Manufacturing Services in Kalgoorlie.

SILVER SPONSOR

R ISTE REGLINE TO ON TTENDBIT A XHI E E OR T THESS A ENT EV

YOU COULD WIN SIMPLY BY ATTENDING THESE EVENTS

27th & 28th March 2014 TOWNSVILLE ENTERTAINMENT & CONVENTION CENTRE

WEALTHBUILD-CURVE-210114.indd 2

23/01/2014 8:54 am

A targeted and cost effective opportunity to network, market and generate sales, leads and industry contacts in the dynamic and abundant North Queensland region.

Register online to exhibit or attend this event.

www.nqexpo.com.au SILVER SPONSOR

EVENT SUPPORTERS

Freecall 1800 671 588

www.facebook.com/industryandresources

AustralianMining

March 2014

21

AM0314_022

- 22

2014-02-18T09:16:14+11:00

DRILL, BLAST & GEOMECHANICS

Staying on track Precise blasting in a built-up area proved a challenge for one contractor, but one it could overcome.

C

ape Lambert, located 40 kilometres northeast of Karratha, is one of two port facilities operated by Rio Tinto to export iron ore from its mining operations in the Pilbara.

To facilitate a ramp up of exports up to a potential 360 million tonnes per annum by 2015, Rio Tinto is currently undertaking a $7.2 billion expansion program at Cape Lambert.

The first phase of the expansion, which is now complete, included additional rail facilities, stockyards and handling equipment. It required technical drilling and blasting of undulating hard rock in an area dense with existing infrastructure and construction.

Anthony Ruffin, area manager for Action Drill and Blast (ADB), a specialist drill and blast contractor which undertook the project, said the ability to safely drill and conduct controlled blasting was critical.

“Working next to Rio Tinto’s active rail track is a responsibility we took very seriously. A mistake that affects railing operations would have had a significant effect on the company’s overall performance.

“We completed approximately 2.2 million cubic metres of blasting associated with car dumper 5 and 1.4 million associated with car dumpers 6 and 7, without affecting those critical operations.

“There are maybe one

The contractor had to carry out drilling and blasting in a relatively high density construction site for Rio Tinto.

or two large civil projects a year that drill and blast in those quantities, but what’s relevant here is that work took place in a high density construction site with surrounding infrastructure, such as rail track, offices, work shops, overhead power lines, fuel and gas lines, and fibre optic cable, that can’t be damaged by blasting,” he said.

He added that ADB’s precision blasting experience in Australia’s challenging environments helped to provuide safer, productive and efficient work, on schedule.

“We perform controlled blasting frequently. It’s something our systems manage well and our people are very good at. What we’ve delivered at Cape Lambert further demonstrated our team’s ability to perform controlled drill and blast over a long period of time with consistently very good results,” Ruffin said.

The two main bodies of work were undertaken concurrently with the client adding variations along the way.

ADB’s first project at Cape Lambert, car dumper 5, commenced in April

2011, and was completed in October 2012. Car dumpers 6 and 7, and the phase B stockyard earthworks, began in March 2012 and were completed in July 2013.

A specialist ADB crew completed the ground support work for Car dumpers 6 and 7 which ran from April to October 2012.

The drill and blast workforce peaked at 51 and utilised up to ten top hammer drill rigs – Atlas Copco F9C and GD5000 Bucyrus.

Production, wall control and pre-split blast patterns were all completed with fly-

rock restriction in place. Frequently, blasting adjacent to existing infrastructure was undertaken with rigid blast vibration restrictions, utilising either pyrotechnic or electronic detonators.

“The car dumper pits required depths of up to 33 metres and a large portion of the work was undertaken below the water table. The design called for ground support installation – mesh and cable bolting – to secure the walls to allow subsequent construction work and later operations to be completed safely,” Ruffin said.

Downer develops new loading innovation DOWNER Blast Services has developed a new ammonium nitrate management system.

While most mobile processing units (MPU) are loaded from bags, tippers, or bins, this new system uses two 30 tonne capacity rotating bowls, which reduce the chance of the AN caking and ensure it is unaffected by weather or environment.

“The system’s auger elevates the AN into the

22

March 2014

AustralianMining

selected bowl where it is stored and rotated until it is required for loading into a MPU,” Downer said.

It developed the new loading system as “existing systems did not fully satisfy all requirements, such as the need for stock control, to keep AN free flowing and secure, to have a system that is easy and quick to set up, and for it to be cost-effective”.

“Other benefits include greater stock control, as

the system has load cells that weigh the AN, and an inbuilt telemetry system enabling measurements to be monitored remotely.

“By reducing vehicle movement in the reload area and eliminating the need to work with suspended loads when filling MPUs, this new system also helps to keep our workforce safe,” DBS executive general manager Cliff Gale added. www.miningaustralia.com.au

AM0314_000_BAC

-

1

2014-02-10T13:34:22+11:00

Vi s i tourWebs i t eat

193-195PowerSt r eet GLENDENNI NG NSW 2761

www. bacs ys t ems . com. au

Tel :( 02)98322777 Fax : ( 02)96753645

t oor dert hel at es t BACCat al ogues

AM0314_024

- 24

2014-02-18T09:23:21+11:00

AUTOMATION & REMOTE CONTROL

A revolution A

utomation is touted as the next revolution in mining.

A revolution that is already here, to a degree.

But where is it heading now?

Many are predicting that the mining industry will become totally automated, and sites of the future will simply be made of autonomous trucks and machinery, operating without human control, only occasionally serviced and maintained by workers to keep them in peak form.

The machine, not the person, will be running the mine. It will become a matter of artificial intelligence mixed with remote operating centres controlling vehicles traversing all over the site without a human to be seen apart from in the workshops; and maybe not even there as process control instrumentation and communications technology moves ahead.

It will not even be a case of man versus machine. The machine will dominate the mine and fix all the productivity problems within operations now.

It paints a worrying picture of the future for many in the industry – where will the jobs go? How much will it cost? Is this the end of the miner?

No, it isn’t.

The ridiculous picture painted before is simply that.

While automation’s prevalence is growing, the way in which the mining industry uses it is changing.

Speaking to Accenture’s mining program and project manager, Nigel Court, he told Australian Mining that “the mining industry is currently in a phase where innovation is quickly turning tip-of-the-spear technologies into disruptive new capabilities that present opportunities for strong differentiation and massive leaps in efficiency”.

And automation is one of these main disruptive ca24

March 2014

AustralianMining

pabilities, but it is not seen as the be all and end all.

“Automation is now being looked to not as a panacea to fix productivity and efficiency on site, rather “people are focusing on how it can be applied to solve specific problems encountered on site”.

It used to be that miners would go for a complete automation solution, Court explained, saying “one client of ours was considering complete automation of its trucking, drilling, and load and haul operations, but after investigating it they’ve come to realise that a combination of both manned and unmanned to gain top performance”.

Automation is preferred because of the safety aspects that it brings to a site.

With great collision avoidance programs and set speeds for all the vehicles the risk of a dangerous incident is dramatically reduced.

Court added that “we are seeing the quicker uptake of automation and automated processes on site, but there are still a few issues”.

And these issues are found in the most unlikely place.

“It does have a major productivity hole,” he stated.

REVOLT? Automation is an inescapable part of mining’s future, but what role will it really play?

Cole Latimer writes.

“With the inbuilt safety and proximity programs we see automated vehicles detect an issue on their path, be it a large hole, a big rock, another vehicle, and they automatically shut down, without informing the workshop why it has shutdown, simply that it has. This requires an operator to take time and come down from the workshop and restart the vehicle and deal with the issue at hand, be it stopping due to another vehicle or an obstacle in the way.

“Whereas if a person was driving, with the prox-

Underground vehicle automation is already well ingrained in mining.

imity detection and collision avoidance software inbuilt, then after an incident like this they can simply restart the vehicle and continue or drive around the obstacle.”

He went on to say “from a safety aspect this is much better however from a productivity aspect the operation will suffer from these often unpredictable downtimes”.

“Automation has demonstrated that when it comes to safety and efficiency it is great for implementing in the case of simple tasks, but when it comes to more complex operations and areas then it may be that total automation is not always the right choice.

“People are now thinking about where automation is the right solution and how people can use their skills to increase productivity,” he said, adding that it was about obtaining the right combination of the two.

“Automation can be the right solution for a business, but many in the industry aren’t seeing the future as 100 per cent automation on sites; it may be a mix of 80 per cent automated fleets, or even a 50/50 mix, it really depends on what is right for the operation as you don’t expect a site with a relatively small truck fleet to go down a 100 per cent automated

route as it doesn’t make financial sense.”

Moving away from the focus on vehicles, Court also outlined the development of automation in the minerals processing sector, explaining that it’s “all about adding service to the operation”.

“For instance automating the process for better crushing and screening to create better throughput, whilst doing it in a safer manner, which in turn ensures optimisation of the processing at the plant creates efficiencies right down the line.

“We expect to see incremental automation in minerals processing, but with the drive for safety over-riding the drive for excessive automation unless the technology is controlled and proven.”

However one area where Court did predict a spike in automation is the use of drones and unmanned aerial vehicles (UAVs) on mine sites.

He linked this to the increase of remote operation centres currently being seen, as both BHP Billiton and Rio Tinto develop their own remote control centres thousands of kilometres from their operations throughout the Pilbara.

Drones would typically Continued on page 26 www.miningaustralia.com.au

AM0314_000_MET

-

1

2014-02-17T10:00:36+11:00

Metso… …Built solid

Built solid

Metso apron and wobbler feeders backed by real-world experience

Metso apron and wobbler feeders are designed tough and built solid to handle the most severe impact conditions, because your productivity on it.by Backed by experience with more than Metso apron and wobbler feedersdepends backed real-world experience 4,000 feeders worldwide, you can rely on Metso’s equipment and reputation. They’re both rock solid.

For more information, please contact your Metso representative as below: Metso apron and wobbler feeders are designed tough and built solid to handle the most Perth: 08 9420 5555, Brisbane: 07 3623 2999, severe your productivity depends on it. Backed by experience Sydney: 02impact 8825 1600, conditions, Newcastle: 02 4978because 8100 Metso Minerals Ltd, L2, 1110 Hay Street, West Perth 6005 you can rely on Metso’s equipment and reputation. with more(Australia) than 4,000 feeders worldwide, Email : minerals.info.ap@metso.com, website : www.metso.com They’re both rock solid.

MT280a Australian Mining Magazine Apron Feeder Full Page Advertisement March 2013.indd 1

metso.com – email: minerals.info@metso.com

8/02/13 11:43 AM

AM0314_026

- 26

2014-02-19T14:23:42+11:00

AUTOMATION & REMOTE CONTROL

Continued from page 24

be used for surveying and mapping on site, however new uses for them such as aerial real time truck fleet management, site and remote infrastructure monitoring, and machinery tracking are all being developed.

Using drones is “a more efficient process, and can produce more real time information in a much safer manner than getting surveyors out on the site,” Court stated.

Drones and UAVs are being seen by many as the next major leap forward in mine site automation technology.

Outlining the mine of future, circa 2020, he stated to see the cause of the issue moves much of the risk and (search & rescue, monitor- dinated planning across the that drones are likely to be through to getting someone increases safety on site.” ing/providing information value chain and focused explaying an integral role right out there to solve it it could With drones and UAVs from dangerous and difficult ecution. While we are likely across the value chain, both be three hours or more, already seeing some use in locations) to exploration on the front side of the hype on and offsite, delivering whereas if a drone is flown surveying, the likelihood of and development (such as cycle, we believe these capavalue in the areas of explora- over it can reach the site in this avenue of their use is aerial photography and re- bilities will continue to mation and development, safety less than half an hour, take only set to expand. mote sensing) and productiv- ture and will transform the and security and operational high resolution photos that “The possibilities for ity (stockpile mapping, mine industry.” productivity. can be used to identify the the application of drones in mapping & reconciliation Automation is certainly He went on to provide a problem, after which some- mining are seemingly end- and time lapse photography) not the panacea to all of minunique example of time sav- one can be sent out to fix out less with new uses coming just to name a few. ing’s issues, but it certainly is ings when using automated the problem,” he said. to light every week and more “Leading mining busi- a remedy to some of the exdrones over workers.

“It also has the ability widespread utilisation being nesses are rapidly making isting efficiency hurdles, and “Imagine there was an to take high resolution, time reported across the indus- these kinds of capabilities if used correctly in conjuncissue on the rail line in the lapse pictures of a site to see try,” Court said. available through their use tion with a mixed human and Pilbara, from the time the if fractures have appeared in “We see potential ben- and customisation of drones. automated operation it can problem efits A M 0 3is 1identified 4 _ 0 0 0to_ getM A D the- rock 1 faces 2 0 1over 4 - time 0 2 -for 1 7 T 1 4across : 4 0 the : 1 value 6 + 1 chain, 1 : 0 0 Turning these ideas into re- be a stepping stone for the ting the worker out there early detection so that it re- from safety and security sults of course requires coor- resource industry’s evolution.

The most reliable switch on the market

Design a network that doesn’t fail.

The Lynx range of managed Ethernet switches are designed for use in heavy industrial environments. Combining Ethernet, serial, security and layer 3 routing functionality, the entire Lynx range offer a compact and robust design, extended temperature range, and the highest MTBF on the market.

Call 1800 72 79 79 or visit www.madisontech.com.au/lynx

26

March 2014

AustralianMining

www.miningaustralia.com.au

AM0314_000_AUS

-

1

2014-02-10T13:51:39+11:00

DECISIONS, DECISIONS

Let one of Australia’s leading economists put it all into place for you over breakfast Craig James After the success of the 2013 Industrial Leaders’ Forum series, we have invited Craig back to offer specific insight into the industrial sectors that affect your business today and into the future.

Craig has been Chief Economist at CommSec for over a decade and is now a regular media commentator, featuring in various TV, newspaper and radio interviews daily.

Sydney

Adelaide

Melbourne

Perth

Brisbane

Friday, 9th May. Novotel

Thursday, 7th August.

Stamford Plaza

Thursday, 7th August.

Leonda By The Yarra

Thursday, 9th October.

Mercure

Thursday, 10th July.

Stamford Plaza

7:00am – 9:00am Breakfast included.

7:00am – 9:00am Breakfast included.

7:00am – 9:00am Breakfast included.

7:00am – 9:00am Breakfast included.

7:00am – 9:00am Breakfast included.

To register now visit www.industrialleadersforum.com.au

OVER 40 YEARS IN THE BUSINESS

COMPLETE ELECTRICAL RANGE

SOLUTIONS FOCUSED

EFFICIENT LOGISTICS

BRANCHES NATIONWIDE

auslec. com.au

AM0314_028

- 28

2014-02-18T09:31:18+11:00

MAPPING & SURVEYING

LAYERED approach to mine construction W

ith mines in a constant state of development, operations have to take an intelligent approach to their buried assets such as electrical and communication lines.

To overcome this problem CITIC Pacific Mining has taken an innovative approach to managing its underground infrastructure at its Sino Iron project, the largest magnetite project under construction in Australia.

In conjunction with GIS company Esri Australia it has developed a new reporting and mapping system, which reveals the location of buried assets to all stakeholders including surveyors.

CITIC Pacific Mining senior GIS analyst Chris Brown said the info will not only significantly raise productivity for the Sino Iron project but will also set a new industry standard for safety during construction.

Sino isn’t unique when compared to other mines, featuring large-scale dedicated infrastructure such as a concentrate processing area, slurry pipelines, port facilities, a combined cycle gas fired power station and associated infrastructure.

So “whenever there is a need to excavate, it is crucial stakeholders have a precise understanding of what infrastructure exists underground,” Brown explained.

Previously surveyors had to manually search through archives for paper-based maps and multiple versions of design files, which was not only time-consuming, but also susceptible to human error.

“GIS technology provides our surveyors with a secure and efficient way

New approaches to buried asset mapping and management are speeding up mine development.

of operating, improving workflow and enabling users to make more informed decisions,” Brown said.

“This not only ensures bottlenecks in the workflow are identified, but ultimately minimises risks and ensures the safety of employees and contractors.

Brown said that “our team can view data such as electrical, location, and access in layers which can be examined alongside other important information such as high resolution photography and aboveground infrastructure”.

“This includes being able to pinpoint the infrastructure’s location using a web map, output to report map, and extracted as 3D data.

“Additionally the system is acces-

New technology is cutting time needed to identify buried assets when digging on site.

28

March 2014

AustralianMining

sible using a web browser based interface via company intranet, which enables our surveyors to be on site marking up infrastructure for our construction teams much faster than in the past.

“The same system also enables users to swiftly produce reports to accompany excavation permit applications, which details of the buried services and includes a map highlighting exact locations, ensuring we are always meeting legislative requirements,” he said.

“The result of this is reduced pressure on our budget, resources, compliance with our licence to operate and – above all – enhanced safety for personnel.”

Trevor Smales, Esri Australia’s GIS in Mining expert, added that while GIS technology is helping to set new industry benchmarks for safety, many of the world’s mining companies are using the technology for application such as community engagement.

“Mining companies are consistently required to demonstrate their contribution to minimising the impact of construction on local communities, regulators, indigenous landowners and governments,” Smales said.

Previously speaking to speaking to Willy Lynch and Tom Gardener from Esri Australia, a company which focuses on GIS mapping software, they explained to Australian Mining that the new wave of GIS technology is being used by mining companies throughout the lifecycle of the mine, from the planning stage

through to production and even in the mine permitting stages.

“It aids miners in every aspect of the project, as almost everything in the industry is spatial in nature,” Lynch stated.

Smales went on to state that “with GIS technology companies can map, layer and analyse a range of external data – such as social and demographic statistics, economic and environmental information, or community program development – alongside their own business development”.

“GIS and mapping software is about providing the information to make decisions, and currently in mining there is a serious problem with operation silos, and GIS is helping to bring together these silos into a single environment,” Gardener said, “so that they can now make better decisions and understand the challenges existing throughout the supply chain as well as helping to track staff to improve risk management onsite”.

“Traditionally operators had a number of different programs that cover a number of different areas of the mine, and none of these programs spoke to one another - it was one system for one job, but GIS provides a solution for operators who can now integrate their diverse systems into a single data stream, bringing in multiple feeds.”

“You also have the ability to take this data mobile, and people can convert this data to provide a greater analysis of operations where ever they happen to be,” Lynch said. www.miningaustralia.com.au

n

AM0314_029

- 29

2014-02-19T13:10:11+11:00

MAPPING & SURVEYING

Aiding laser focus New laser mapping systems are keeping draglines on plan.

T

he dream of many sites is to increase production and at the same time drive down safety risks.

The development of realtime digital terrain mapping technology is now aiding one Queensland coal mine in achieving this.

Created in a partnership with LC, MineWare’s Digital Terrain Mapping (DTM) system uses a series of boom mounted laser scanners and GPS sensors to continuously scan and map the area around draglines as they operate.

DTM is an extension of MineWare’s existing Pegasys dragline monitor, and tracks movement around the dragline while it works, providing live and historical comparisons between the mine plan and the actual ground as it changes.

Andrew Jessett, MineWare’s CEO, said a total scan of the dragline’s operating environment – both inside and outside of the set work area – is created by the scanners as the machine is swinging back and forth during its regular operations.

“This technology allows us to compare actual terrain to design in a visual sense,” he said.

“What this means is that we can significantly improve design compliance and reduce common operating errors by helping the operator know precisely where to dig and where to dump it.

“Operators and foremen can now identify and correct areas not to design as they occur (especially spoil toe), reducing the need for surveyors in the pit.

“This is a big step forward for safety and productivity as problems can be fixed while the dragline is there with minimum coal loss from excavation.”

Regarding the successful trials at the unnamed Central Queensland coal mine, Jessett stated that this continuous pit data coming in is now allowing operators, dispatch/ foreman, surveyors, and engineers to monitor operations in a safer environment.

“With this improved data flowing back to the office, our client can see not only what has been completed but also calculate volumes, geo-tech analysis and monitoring, www.miningaustralia.com.au

A M 0 1 1 4 _ 0 0 0 _ S WI 1 2 0 1 3 - 1 1 - 2 5 T1 3 : 5 2 : 2 4 + 1 1 : 0 0 The laser monitors operate in real-time, allowing for digging issues to be corrected when they happen.

and check bucket factor calculations when required,” he said.

“This improves safety by reducing the need for surveyors to complete scans themselves and work in potentially hazardous areas in the pit to check that the machine is digging to design.”

LC director Bruce Leslie add that the core value of the DTM system is the live “continuous reconciliation” process which improves operator efficiency.

“When it comes to correcting dig to plan errors, timing is everything,” Leslie said.

“Once a dragline has moved on, it is too late to go back and correct an issue; if an operator digs in the wrong place or creates batters at the wrong angle then the only time to correct the issue is right then and there, not once the dragline has moved to the next block.”

According to MineWare trials have shown live updates verified to within less than 300 millimetres of actual altitude in most environmental conditions.

It went on to add that the payback period for the technology, after examining reductions in spoil room errors or low wall dig to plan errors, has been as low as three months.

NEED PIPE SUPPORTS OR CONDUIT SADDLES?

e r a fre Call fo ioned s dimen ue! g catalo

Anchorage Group Pty Ltd | Freecall: 1800 899 480 www.anchoragegroup.com.au | sales@anchoragegroup.com.au AustralianMining

March 2014

29

AM0314_030

- 30

2014-02-24T15:43:38+11:00

MAPPING & SURVEYING

For underground mining there are new design applications, underground ring design, and stope optimisation.

The whole nine yards An upgrade to modelling software is providing almost limitless data capacity.

T

he mining industry is becoming more and more digitally focus as it shifts to more data intensive operations.

From the very moment the mine is planned through to blasting and digging, every moment needs to be effectively thought out.

With this in mind Maptek has released its latest geological modelling and mine planning software.

According to the com-

pany it has made a number of performance upgrades to the software, such as the removal of the dynamic memory setting.

“The amount of data loaded and manipulated will [now] only be restricted by the hardware,” Maptek says, allowing miners to get a greater handle on their own operations and plan further into the future.

“Graphics and display processes now take advantage

of embedded processes (GPUs) to dramatically increase the rendering and manipulation speed of large datasets.”

Vulcan 9 comes with new object attribute features to provide the operate greater control of their data, allowing them to assign unlimited information to a design object in a single location.

“Users can define attributes based on the kinds of information they deem relevant – information on zones,

levels, grades, drift, direction – while formulas allow for reserving, naming, and complex calculations to be part of the object definition,” it said.

“Downstream processes such as reserving will be streamlined as values are automatically updated based on changes in the object or the data.”

It introduces implicit modelling for geologists, allowing them to rapidly generate models of complex

geological domains from drillhole information.

This feature can be combined with existing Vulcan modelling tools, and provides multi-domain geological surfaces with no overlap, which allows for more consistent results and eliminates manual adjustments.

By producing a block model and triangulations, implicit modelling allows geologists to move seamlessly into resource estimation.

Australian mapping company acquired AUSTRALIAN digital rock technology company Lithicon has been acquired by US company FEI for $76 million.

The company was previously known as Digitalcore, and set up to develop advanced computational approaches to solving fluid behaviour oil reservoirs.

30

March 2014

AustralianMining

In doing so it developed techniques to produce digital 3D images and simulations of fluids in rock samples.

It merged with Norwegian company Numerical Rocks AS last year.

FEI’s president Don Kania stated that “the acquisition of Lithicon and the microCT tool

completes our digital rock workflow for the oil and gas market”.

“We believe digital rock technology is a needed breakthrough for the oil and gas industry, and the acquisition by FEI will allow Lithicon to take advantage of this opportunity.” www.miningaustralia.com.au

AM0314_031

- 31

2014-02-24T15:45:20+11:00

MAPPING & SURVEYING

Advancing underground mine planning An agreement between Sadnvik and Maptek is taking mining from the mapping and planning stage through to fully automated mines.

T

he focus on all operations is to have a smoother, more integrated approach from the moment of planning and mapping through to scheduling and actual mining.

Different parts of the mine can no longer operate in a silo as they once did.

And now as mines look at bringing in more automated equipment, the ability for operations to not only become safer but more efficient, is rising, as autoamted machines allow for tighter parameters on site.

Sandvik and Maptek have joined together to develop integrated mine planning and execution solutions as well as automation systems – bringing the two together.

Their new Memorandum of AUnderstanding M 0 3 1 4 _ 0 will 0 0 _focus SPI on creating automated mining

www.miningaustralia.com.au

The MoU will provide better transition through mine planning into actual operations.

equipment that can connect to and work directly from mine planning and measurement data in Maptek’s software.

“There are enormous benefits to be had by making _ R Sandvik 1 mining 2 0 1 4 equip- 0 2 ment more automated and

more spatially aware,” Sandvik Mining’s global head of automation Rowan Melrose said.

“Improved accuracy and precision, improved safety, 1and 2 Timproved 1 1 : 2 7 costs : 1 6 are + 1 all 1 : directly related to the out-

comes we are targeting.

There is no longer a need for mine planning and design detail to be separated from production and execution equipment and operators.

0 0 “Sandvik’s work with Maptek will aim to remove

that separation … we are very excited about the prospect of creating the most advanced mining systems in the world.”

Maptek’s general manager for Australia, Peter Johnson, added that “this will work will be a huge leap forward for our customers who will be able to send detailed design and modelling data flowing through the mine operations and monitor, in real time, performance and conformance”.

“This is the next step towards further unlocking the inherent value in resource and mine planning data.

“The biggest challenges remains consistent delivery across the mining value chain, and this initiative between Maptek and Sandvik is directly aimed at that outcome.”

AustralianMining

March 2014

31

AM0314_032

- 32

2014-02-21T15:05:45+11:00

MATERIALS HANDLING

A MODULAR approach to conveying

Fortescue’s modularisation of its massive conveying operations at the Solomon Hub cut both installation time and cost.

E

ven before the ascent of the looking to reduce costs is through mines, and is believed to hold more boom Australia was always a modularisation. than three billion tonnes of resourcfairly high cost country for the In an effort to cut the high costs es at the site. mining industry. of installation typically found in AusFMG approached Terra Nova This remains the case for much tralia, the Fortescue Metals Group Technologies, who worked on the outof the sector following the boom’s looked towards modularisation as a sourcing of its assembly transfer chutes downwards slide. measure to slash costs as well as in- and towers to third party companies.

Much of this is due to the sheer stallation times by using pre-assemOne company, M&J Engineerscale of the industry, which requires bled conveyor transfer chutes at its ing, won the contract to supply Weba massive pieces of machinery and equip- Solomon Hub iron ore project.

Chute systems to the project. ment, where ten kilometres of conveyThe Solomon Hub is the latest Earthworks started in 2011, with 0 3an1unusual 4 _ 0 0occurrence.

0 _ NOR 1 development 2 0 1 4 - 0project 2 - 2 1for T 1Fortescue, 4 : 4 5 : 4 greenfields 0 + 1 1 : construction 0 0 orsAisMnot work underOne area where many miners are consists of the Firetail and Kings taken to develop the 60 million tonne

32

March 2014

AustralianMining

per annum, $3.5 billion operation which already has two OPFs, three crushing hubs, a 125 MW dual fuel power station (which was recently part of a massive gas supply agreement), its own airstrip, and three accommodation camps.

The installation finished last year.

The seven Weba Chute Systems transfer chutes were designed, engineered, and manufactured in South Africa by M&J Engineering to FMG’s precise specifications.

www.miningaustralia.com.au

AM0314_033

- 33

2014-02-19T13:23:07+11:00

A M0 3 1 4 _ 0 0 0 _ K O C

-

1

2 0 1 4 - 0 2 - 1 2 T1 1 : 2 9 : 1 5 + 1 1 : 0 0

MATERIALS HANDLING

Handling Bulk Powders and Granules?

We are System Designers, Suppliers and Integrators Four of the transfer chutes were specifically designed to cater for heavy overrun conditions, with a required storage capacity of up to 30 cubic metres of ore.

“We achieved this by utilising a sophisticated and unique designed considered to be a first in transfer chute technology,” M&J Engineering managing director Mark Baller said.

“The chute was fitted with an air cannon system to ensure that bulk flow was achieved once the system was restarted. By incorporating block chute detectors in the chutes, we can confirm that the chutes have completely emptied before the incoming belts are restarted.”

The remaining three chutes are normal belt to belt transfer points that are capable of handling tonnages varying from 4500 tonnes per hour up to 7400 tonnes per hour on belt widths of 1400 millimetres and 1800 millimetres travelling at speeds up 4.6 metres per second.

Four of the chutes are fully operational and the last three chutes are currently being commissioned.

The whole structure uses 8000 tonnes of steel and has 17 900kW of power. Regarding the modularisation, he added “we trial assembled the chutes and shipped them to the steel fabricator Best Tech & Engineering in Thailand”.

“The steel fabricator was responsible for pre-installation of the chutes into the transfer towers which had been fabricated by them.

“Once the assembly was completed the transfer tower, together with the chute and all ancillary equipment, was shipped fully assembled to Western Australia [where] it was offloaded at the docks and transferred to road-

Fast Track a project with our FEED system, = “Front End Engineering Design”.

We have the experience and costings at hand.

Dense Phase Pneumatic Conveying

for very efficient powder transfer - Large in-house test facility

BulkafilO R

The conveyor can move 4500 tonnes of material per hour.

trains for transportation to the mine,” he said. The chutes are designed to provide a reduction in material degradation, reduced levels of dust and noise, reduced production losses owing to fewer blockages, and reduced spillage, as well as improved safety levels.

“The critical factor in this project was the ability to provide a product that could be remotely assembled then shipped in its final configuration to a destination on another continent,” Baller said.

“The cost savings achieved by FMG by adopting this philosophy are substantial.”

Bulk Bag filling (and emptying) systems.

R Highly developed BulkafilO model with standard application to 20 bags per hour.

For Trade approved weights; single side operation; product consolidation; Other features like automatic discharge & bag accumulation are possible.

Recent products handled: Magnesia, Lime, Zn oxide, Flocculents, Ni concentrate, Cement, Rutile, Alumina, Sand, Perlite, Ti02, Barytes, Flyash, Bentonite, Limestone.

QR code

Discharge of powder products to silos from containers.

We offer a range of solutions, and rates of transfer.

The Professionals in Powder Handling

AMM1415

Head Office VIC - Tel: (03) 9457 8277

The structure uses 8000 tonnes of steel. www.miningaustralia.com.au

www.kockumsbulk.com.au AustralianMining

March 2014

33

AM0314_034

- 34

2014-02-21T15:21:31+11:00

MATERIALS HANDLING

A bearing on materials handling Understanding the difference in gearless conveyor drives.

G

earless drives are expanding the service range of belt conveyors and in doing so providing mining companies with higher materials handling capabilities.

When it comes to maintenance and energy efficiency, gearless drives offer advantages compared to the conventional electromechanical solutions.

While increasing the drives located at both ends of the conveyor has long been used to optimise the application of drive forces on the belt, it is not always possible to implement such drive concepts.

For belt-on-belt drives to driven carrying rollers, these solutions are often seen as a costly burden to mining companies.

Due to this current projects are focusing on a belt conveyor system that uses belts which have a strength of 9071 kilograms and that run with the help of with three gearless drives, each delivering an output of 7000 kW. TAKRAF GmbH is currently involved in studies that focus on a belt conveyor system which utilises with these strengths but says limits of conventional drives with helical bevel gears are exceeded with the required drive capacity of 21 000 kW per individual conveyor.

Gearless drive systems for belt conveyors

Belt conveyors do not always work at full load over the entire period of operation: partial load conditions and even idle periods are all part of a belt conveyor’s operating regime.

While asynchronous motors perform at lower efficiency levels with lower utilisation ratios, the efficiency of synchronous motors increases in these ranges.

The higher efficiency of synchronous motors in general, especially in the partial load range, means that mechanical loads are eliminated during transfer of torque – leading to lower operating costs for the conveyor.

This means the maintenance of gear units including oil change intervals can be omitted, as can the maintenance of the high-speed coupling.

This is of particular interest wherever maintenance processes involve considerable effort.

Examples of this would be operating conveyors in cold weathered 34

March 2014

AustralianMining

ment of the stator during the commissioning of the conveyor. Drive realignment would be necessary if a proper belt alignment could to be reached by drive pulley readjustment only.

Bearing motor

For the solution previously described, motor bearings are not needed. No special coupling is required for connecting the motor to the drive pulley with a rigid flange connection sufficient.

Unfortunately, bearingless motors also have disadvantages.

These include needing the motor to be assembled on site, with the motor unable to be disconnected quickly and/or replaced with a spare drive in case of damage.

The disadvantages described here with regard to bearingless motors have led to working with ABB to design a motor with separate bearings as an alternative.

Diaphragm coupling

Decreased maintenance for gearless conveyors means increased uptimes.

nations like Canada at ambient temperatures of -45°C or conveyor systems that operate at an altitude of 4,500 metres or more above sea level.

Structure of gearless conveyor drives

A synchronous motor consists of a rotor that is connected with the drive pulley shaft and a stator that rests on a foundation or a corresponding steel structure.

Compared to conventional belt conveyor drives, the drive unit with gear box and asynchronous motor is replaced with a synchronous motor.

However many conditions must be taken into consideration if gearless drives are used.

These include the deflection of the drive pulley shaft at the shaft end due to the various belt tensions of different loads or operating conditions and the settling of foundations of the stator or deformation of structural steel used to support the stator.

Since the design of the motor, motor mount, drive pulley and the associated structural steel are closely tied together TAKRAF GmbH has

formed a co-operation agreement with ABB which will see it a joint motor concept during component planning considering client specifications and site conditions.

The following systems are worth considering as a motor concept: bearingless motors, bearing motors and diaphragm coupling.

Bearingless motor

The rotor is rigidly connected to the drive pulley by means of a flange connection.

Compared to the standard layout, an additional criterion is necessary for dimensioning the drive pulley. The deflection of the pulley shaft at the coupling flange may not exceed the narrow tolerances that results from the permissible deviations in the air gap between the rotor and stator. This leads to drive pulley structures with large shaft diameters.

Since the rigidness of the stator mount determines the tolerances in the motor’s air gap to the same extent, it is necessary to offer solutions with very limited deformations that also allow for a subsequent align-

With regard to the bearing motor previously described, the motor and drive pulley are connected by means of a flexible coupling.

A gear coupling was selected as a suitable transfer element for the torque being transported and the permissible angular deviation of both shafts.

For very large motors (6000 kW to 8000 kW of driving power), geared couplings reach their limits.

The drive concept with bearingless motors has resulted in heavy and expensive drive pulleys due to the deflection of the pulley shaft in the area of very large drives.

Based on the disadvantages of a bearingless motor, a motor concept with a bearing at motor N-end and a diaphragm coupling to connect the rotor with the drive pulley was developed. The diaphragm coupling combines the functions of the bearing at the motor D-End and the geared coupling between rotor and pulley.

To transport the motor and a support structure will be placed on the motor frame which secures the rotor shaft on the side with the output shaft end.

This also provides the option to quickly separate the motor and the drive pulley by opening the coupling in case of an emergency. www.miningaustralia.com.au

AM0314_000_ADA

-

1

2014-02-14T13:35:03+11:00

AM0314_036

- 36

2014-02-19T13:26:59+11:00

MAINTENANCE & MONITORING

The scale of the

PROBLEM

New maintenance technology is cutting down unnecessary pipe work.

T

he issue of scale build up is flanges for a precise fit that allows an ongoing battle in mining. the detection of scale,” the company And considering the materi- says. als that miners use, it is no surprise “It uses Electrical Capacitance operators will see a build-up and Tomography (ECT) technology, eventual hardening of these materi- which allows operators to see inside als into scale deposits – reducing the piping systems without having to halt flow within the pipes. media flow and open up the pipeline.

The cost of unplanned shutdown It also enables 3D imaging and due to scaling has the potential to measurement of non-conductive mebecome a catastrophic event in op- dia inside process pipelines and tanks. erations, which in turn sees engineers “In addition, it utilises a patentand operators tend to overfeed anti- ed algorithm that creates a 3D im“The Flowrox Scaling Watch scaling chemicals or schedule more age of the process fluid in the piping is a predictive device – rather than physical cleaning of pipes than is and generates trend data as well as reactive – and allows its operators necessary – wasting time and money. showing free volume inside the pipe to address scale issues before they With this in mind Flowrox has and the growth rate of the scale over reach critical levels that can cause developed new technology to proac- time.” downtime or costly damage,” the tively manage maintenance of scale Flowrox Scaling Watch is able to company stated. build-up, cutting the potential for un- show the scale thickness, scale profile, It is manufactured in carbon expected shutdowns or costly dam- growth rates over time, its composi- steel, type 316/316L stainless steel, age repairs. tion, and free flow volume, allowing and titanium to meet the needs of The Flowrox Scaling Watch is engineers to better understand the op- industries with intense scaling issues “a Awafer as:mining M 0 3thin 1 4 piece _ 0 0of0 pipeline _ K R O engi1 erational 2 0 1 4areas - 0 2of- the 1 1 piping T 1 1 :system 2 9 : 1 –7such + 1 1 0 0 – that can result in neered for the insertion between two that are prone to scaling. high maintenance costs.

However, it is not designed to detect scale across the entire piping system, only measuring heavy scaling in the spot where it is installed.

“This is completely new technology,” Flowrox’s president of North American operations, Todd Loudin, said.

“The Flowrox Scaling Watch can model mathematically the scale build-up and also provide calculations on the free available pipe remaining.”

DEAL WITH THE EXPERTS IN RELIABILITY, COMPLIANCE, EFFICIENCY AND SAFETY

Talk to the world’s leading crane service organisation.

With over 420,000 cranes of all makes under service worldwide, Konecranes are the experts in crane inspection, maintenance and modernisation. Konecranes’ Crane Reliability Survey™ Inspection program provides cost effective solutions, ranging from Third Party Inspections and Major Assessments to Major Inspections, with added benefit of Engineering Conditional Recertification and NATA Accreditation.

31 Sales and Service Locations across Australia and New Zealand.

Phone: 1300 937 637 Visit: www.konecranes.com.au Email: sales.australia@konecranes.com

36

March 2014

AustralianMining

www.miningaustralia.com.au

AM0314_037

- 37

2014-02-19T13:30:00+11:00

MAINTENANCE & MONITORING

Troubleshooting belt cleaners The new wave of maintenance is about optimising productivity rather than fixing breakdowns.

A

s the mining boom slows down and we enter the trough of the typical mining cycle, more nad more companies are looking to smarter ways to maintain their existing equipment.

In particular they are looking at the equipment that if it fails, stops most operations – the materials handling equipment.

Conveyors, that mainstay of alll mining sites, are starting to become more and more important.

Discussions of improvements to correct conveyor belt cleaning is becoming more of a necessity in the mining industry.

Incorrect practice in material discharge and the overall housekeeping of the belt may result in premature failing conveyor components, track- Poor belt maintenance will result in poor material discharge. ing issues, excessive belt wear and spillage – resulting in a decrease in pany Kinder & Co. explained the op- ture content and the percentages of productivity, which can sound the eration and maintenance of primary fines, clay and silica present, belt death-knell for sites already under belt cleaners int ehmodern mining cleaners are becoming more develcost pressures. sector. oped and engineered than in previous ASean M 0 3 Kinder, 1 4 _ 0 0from 0 _ S conveyor T A_ 1 1With 2 0the 1 4ever - 0 changing 2 - 1 9 Tweather 0 9 : 4 5 generations. : 0 3 + 1 1 : 0 0 manufacturing and technology com- conditions affecting product moisHowever, with this new genera-

www.miningaustralia.com.au

tion of belt cleaner comes a new list of maintenance issues which need to be addressed so that optimal productivity can be achieved.

A major aspect is accessibility to location and inspection.

Primary belt cleaners are commonly installed in very adverse locations around the plant.

Positions often include at the head pulley of an incline belt, further complicated by enclosed hoods or guards, Kinder explained.

In some mobile equipment cases there is sometimes no direct catwalk and staff are required to use a scissor lift, work platforms or actually lowering the conveyor to gain access.

In other extreme cases, specialist training such as confined space access or working at heights must be undertaken in order to maintain the belt cleaners.

However, under all circumstances, for any maintenance work to be completed on a belt cleaner, the surrounding area must be completely isolated and hazard managed.

AustralianMining

March 2014

37

AM0314_038

- 38

2014-02-21T09:02:49+11:00

A M0 2 1 4 _ 0 0 0 _ E S S

-

1

2 0 1 4 - 0 1 - 1 7 T1 4 : 0 7 : 3 9 + 1 1 : 0 0

MAINTENANCE & MONITORING

Keep it Safe, Keep it Clean Clean, Safe Bulk Materials Handling relies on the continued performance of efficient equipment. Without maintenance, all equipment fails to perform effectively, no matter what equipment is being used and failed equipment around conveyors ultimately results in lost production time, unsafe work areas and environmental contamination.

ESS provides competency based technicians to specifically to monitor and maintain Conveyor Belt Cleaning, Sealing and Support systems.

ESS Techs are able to inspect conditions and produce a condition report and maintenance plan that can be actioned by Owners, Contracting companies or ESS Technicians in a manner that prioritises the maintenance based on risk analysis.

ESS offers a range of flexible maintenance and monitoring services to ensure optimum performance from the plants conveying systems.

We tailor our services to your requirements.

ESS Maintenance and Monitoring Services include; • Installation and Commissioning • Service and Maintenance • Inspection and reporting services • On site trouble-shooting • Site compliant vehicles and Equipment • Maintenance Mai Contract

• Conveyor Maintenance Training (Foundations 4)

Get into a Partnership to monitor your conveyor belt system performance to achieve a Cleaner, Safer, More Productive Plant.

Proudly Manufactured in Australia 38

March 2014

AustralianMining

The importance of compressor maintenance With energy costs rising, a bit of attention paid to air compressors can go a long way on site.

S

itting away in a quiet corner of every factory floor is the ever reliable air compressor. It’s often operational 24 hours a day and there is a casual ignorance of its weighty contribution to the production process.

When a breakdown occurs, production can sometimes cease to complete halt. Nonetheless, it stands that overlooked servicing and maintenance of your compressed air system can be a very costly long-term strategy.

KAESER Compressor’s national service manager, Ulf Torpman, explained that companies which neglect their air compressors are putting themselves in line for an expensive lesson.

“Air compressors are incredibly sophisticated machines,” Torpman said.

“They are not cheap [to purchase] and yet people think its ok to take shortcuts with servicing and maintenance to cut costs.

“Would you buy an expensive sports car and then run it all day, forever, without any servicing at all?”

Comparing cost against time, there are a myriad of benefits to a regularly and well-serviced air compressor.

Companies will avoid untimely

and extremely costly production down-time due to compressor breakdowns; but they will also increase the total life-cycle of their compressor.

Torpman stated that even though “theoretically well-serviced compressors should run for an extremely long time, unfortunately, I’ve seen units run all day with no maintenance, they will burn out”.

“They don’t last 5 years.”

Good servicing starts with good customer support.

This is achieved by having a deep understanding of the customer and formulating a complete overview.

Customers should expect their compressors service operators to conduct meticulous site inspections with a formulated checklist that will provide them with an inclusive overview of all their compressed air operations.

“Don’t only change oil and filters on your compressor,” Torpman said.

“Look at the auxiliary equipment such as ducting, pipe works, drains, filters, control modes and controller.

“It’s the detail that makes the difference.”

Flat fee servicing is increasingly gaining traction as a viable and atwww.miningaustralia.com.au

AM0314_039

- 39

2014-02-19T13:32:45+11:00

MAINTENANCE & MONITORING

tractive servicing option for many customers. It works by formulating a servicing agreement between parties for a set number of years to conduct minor and major servicing and maintenance at regular intervals throughout the year. It usually also covers the costs of spare parts to the whole compressed air system.

“If you have a flat fee pricing, the customer knows the costs in advance and he can budget for the financial year,” Torpman explains. “He also knows that the compressor station will be in prime condition and this works to his benefit; no unnecessary breakdowns and disturbances in the production.” Flat fee servicing eliminates the variance and uncertainty that would normally accompany the running of the air compressor.

Flat fee servicing agreements contain several inherent benefits for the customer. They are billed regu- Servicing compressors isn’t just changing oil and filters, auxiliary equipment such as ducting is also important. larly instead of having to process While it is startling to think of sor, but it will be very expensive to larger invoices at irregular intervals. dard service intervals are approxiThe peace of mind with flat fee ser- mately 3000 hours which mean the the many number of site operators run!” Torpman said. who choose to neglect their air comEnergy costs taken over the lifevicing cannot be understated. following*: pressors; they must also be wary of time of any compressor can add up “If you have a service agreement Single shift: One service per year (3000 hours) fraudulence at the other end of the to 70% of the initial capital cost. in place, you can rest assured that the spectrum.

Investing in an efficient compressed provider will take care of your com- Double shift: Two services per year (6000 hours) “There are operators who will air system combined with a Prevenpressor station.” over-service your compressor … tative Maintenance Program has the Maintenance done correctly and Multi shift: Three services per year onAtime M 1 minimises 1 1 3 _ 0 0unplanned 0 _ F L I stop1 2 0 1 3 - (9000 1 0 - hours) 1 4 T 1 6 : 2 2 : 4 some 4 + 1times 1 : 0even 0 every 1000 hours. highest impact on reducing energy You’ll have a fantastic air compres- consumption than any other factor. pages in production. Industry stan- *Depending on site conditions

Make GAS visible!

FLIR GF-Series Thermal imaging cameras for gas detection and industrial applications Conventional leak detection equipment such as a Volatile Organic Compound meters (or sniffers) mean that the operator must visit and test each potential leak site.

Using a FLIR GF-Series thermal imaging camera you get a complete picture and can immediately exclude areas that do not need any action. This means you can achieve enormous savings in terms of time and personnel.

Another advantage is that systems do not have to be shut down during the inspection.

Depending on the model, a wide variety of gas can be detected.

All FLIR GF-Series thermal imaging cameras are dual-use systems. They not only allow the user to detect gases, they can also be used for industrial maintenance inspections.

www.flir.com FLIR Systems Pty Ltd. VIC: 03 9550 2800 NSW: 02 8853 7870 WA: 08 6263 4438 Free Call AU: 1300 729 987 NZ: 0800 785 492 Email: info@flir.com.au Disclaimer: Images for illustrative purposes only. The images displayed may not be representative of the actual resolution of the camera shown. ISO No. FLIR20870

www.miningaustralia.com.au

Captured gas leak

Electrical inspection

Gas leak

AustralianMining

March 2014

39

AM0314_040

- 40

2014-02-20T08:36:14+11:00

PRODUCT FOCUS: PIPES, PUMPS, VALVES & COMPRESSORS

UNDER THE PUMP to reduce OPEX Financial constraints are compelling mine operators to keep costs down on water and fluid management without compromising safety and efficiency.

Jamie Wade writes.

A

s the mining economy increasingly focuses on production, successful water and fluid management can mean the difference between operating at a profit or loss.

But a combination of industry expertise and leading technologies are helping mine operators reconcile the challenges of raising efficiency while keeping OPEX costs down.

End users of pump technology for instance are pushing the boundaries of conventional technology, as mine operators require higher dewatering and water capacities and deeper exploration requirements, according to Mark Gemmell of Schlumberger.

Schlumberger is a global company renown for its artificial lift solutions in the oil and gas space and is successfully extending its expertise and technology with submersible pumps into mining.

“Standard industrial pumping solutions have intrinsic limits to their capacity, which means an exponential increase in pump deployment, or implementation of alternative technologies,”Gemmell told Australian Mining.

“Traditionally mines have deployed lower cost pumping systems and maintained operation through the OPEX budget, but financial constraints on the mining operations 40

March 2014

AustralianMining

are limiting the availability of both CAPEX and OPEX.” Andrew Collins – a technical director with global mining pumps and systems company Keto Pumps – agrees and adds that raising efficiency and keeping OPEX costs down while maintaining safety are some of the biggest challenges he has observed from end users.

“We also hear quite a lot about water at mine sites – either too much of it in the case of mine site floods or not enough to supply pump seals or provide cooling,” he told Australian Mining.

End users are demanding cost reductions across the board, says Gemmell, as well as improvements to efficiency and operational costs to ensure viability of operations.

“There is still a resistance to new and unknown technologies, but this is definitely changing as knowledge is shared and experience is gained in the industry in region.”

Currently, one of the main focus areas is reducing OPEX as many mines are under pressure to reduce their total cost of mining, adds Collins.

“This means offering pumps whose total cost of ownership is reduced, i.e. wear parts that last a long time and when they need replaced will be available quickly and at reasonable cost.”

Collins also cites a growing demand for training, as many people within the sector are new or requiring more skills development than in the past.

“Additionally we see many people requiring more than just a simple pump or part, but rather a total solution. This can involve packages of pump, valves and pipework or skidded solutions for dewatering or bore headworks,” he said.

“We’re now offering much more of this type of total solution which we’ve had much success with major players like BHP Billiton, Alcoa, Rio Tinto and others. This typically comprises a trailer, pumps, instrumentation, electrical panel and other systems neatly packaged and ready to go as soon as it is delivered to site.”

Mine operators are also requiring not just innovation in the pumps themselves, says Collins, but in how our services are delivered.

“Service exchange programs or VMS [Vendor Managed Stock] agreements are becoming increasingly popular as a method of improving the availability and cost effectiveness of maintaining a mine’s fleet of pumps. It can remove a lot of the hassles of ensuring pumps have peak availability.”

Boosting efficiency

Deploying higher capacity submers-

ible pumping systems that do not require extensive or any re-drilling of existing bore locations, says Gemmell, can help boost production and efficiency with lower overall costs, rework requirements and downtime.

“Reduced downtime and workover requirements ensure that systems can be operated for longer, more safely and with reduced operating costs for the life of the project,” he said.

New materials and subtle design changes, adds Collins, can improve efficiency without having to conduct site trails of novel solutions.

“It’s critical to ensure pumps are provided with quality castings and are designed to make maintenance easy and safe. For example, the installation of bursting discs can negate the possibility of pump explosion,” he said.

Although the basic design of pumps in mining has not changed significantly, says Collins, there have been some incremental changes that have improved wear rates in the design of impellers, throat bushes, bearing housings and also in the general metallurgies used.

“For example, we’ve modified the hydraulic profiles of our impellers – small changes which to the normal user might not be easily detected, but results in a flow of slurry across the impeller that dramatically reduces circulation and concentrated wear areas. www.miningaustralia.com.au

AM0314_041

-

41

2014-02-20T08:37:13+11:00

PRODUCT FOCUS: PIPES, PUMPS, VALVES & COMPRESSORS

This can in some cases increase the life of an impeller by two, three or even more times.”

Keto recently launched a proprietary extended wear life material comprising up to 95 per cent ceramic beads cast into a high wear urethane matrix.

The material combines the advantages of urethane and ceramic parts without the risks of cracking, or high purchase cost of traditional ceramics.

“We’ve installed impellers of this type in various locations in Australia including Greenbushes Tin, WA where we doubled the life of the old impeller,” Collins said.

Gemmell highlights several technical advances for both bore pumping and surface water management systems. These include high efficiency operation; very high flow rates and pressure capabilities from a reduced number of systems; slim profile design for bore pumps – reduced drilling/environmental impact; zero maintenance on bore systems, and minimal maintenance on surface systems; and modular designs on both bore and surface systems for simple replacement.

Pump selection

When selecting pumps, advises Collins, provide as much information about theAsystem M 0 3 1conditions 4 _ 0 0 0in_ which P C M your pump is operating and also as much

Focusing on pumping efficiency can dramatically cut pumping OPEX for miners, Keto Pumps’ Andrew Collins explained.

about the fluid you are pumping. can be offered, possibly involving ba“A pump manufacturer can then sic improvements to piping arrangetake this information and marry this ments, valves or upgrades to the pump to the most efficient solution from itself,” Collins said. their range in terms of hydraulics and “A lot can be diagnosed from this materials used,” he said. type of analysis that could lead to big “If you’re replacing parts or com- savings in the long run.” plete pumps in a system then also Gemmell adds that in pump selecconsider getting the representatives of tion it is important to be mindful that a pump company out to site to discuss one technology type does not fit all, the application. This is particularly whether it is for bore pumping or surimportant for pumps that are con- face water handling/disposal. sidered ‘bad actors’ or are consuming “A cost and efficiency-driven busiparts at a rapid rate. ness should consider the combination “Often after reviewing site condi- of CAPEX and OPEX requirements 1 tions 2 0or1 viewing 4 - 0 2 worn - 1 9 parts T 1 2a: better 0 3 : 5 on 0 +a1solution 1 : 0 0 to ensure best fit for solution than a simple replacement purpose,” he said.

Highly Abrasive Slurries?

No worries…

“There are multiple options in pump type and deployment, with each technology having a specific niche/ capability window.

“There needs to be awareness that often the traditional or accepted pumping systems are not ideal for the application.

“Reviews with dedicated pumping companies, especially pump-specific EPCs can often provide a better, more efficient and more cost-effective solution for the long run.”

Pump suppliers and service providers are also reaching out to end users with resources that aid in the optimisation and operation of pumps and pumping systems.

Keto has developed a top ten list of ways mine operators can save money when it comes to pumps including selecting pipe velocities to keep solids in suspension; minimising shaft seal water by using leak free seals; keeping suction pipework as short as possible; matching pumps to their system resistance curve; and not over speeding pumps.

“We’d also recommend that mine operators shop around,” Collins said.

“Although we often find end users have had bad experiences from buying from cheap replicators, you don’t have to buy from the biggest players in the pump industry. Smaller companies are also worth checking out.”

!

PCM has been supplying the mining industry for more than 80 years with reliable pumping solutions and services.

PCM is the original inventor of the progressive cavity pump, which is ideally suited for the most abrasive, corrosive slurries and fragile flocculants. Our success is due to adapting our products to suit your needs.

PCM Engineers are ready to provide you with user-friendly pumping solutions that maximise productivity and reduce your operating costs. your positive displacement pump and system provider

PCM, investing in Australia.

©gettyimages/delectus

Find out your PCM local representative in Melbourne:

www.miningaustralia.com.au

+61 (0)3 9562 9679

AustralianMining

March 2014

41

AM0314_042

- 42

2014-02-19T08:42:30+11:00

PRODUCT FOCUS: PIPES, PUMPS, VALVES & COMPRESSORS

Compressed air efficiency: A piping system solution Understanding your compressor and maintaining efficiency.

M

Press-to-connect systems

aintaining the efficiency of a compressed air system is a constant battle, with leaks being a considerable source of the problem. Pipe joints and fittings are two of the most common areas for leaks to occur in a compressed air system. Detecting and repairing these leaks is an ongoing process that requires skill and patience. Particularly with older compressed air systems, especially threaded galvanized lines, it may be better to scrap the outdated system and start fresh.

In fact, many plants that have replaced threaded systems with a press-to-connect or grooved mechanical piping system have realised longterm cost savings due to reduced energy costs, despite the higher initial material costs. Whether installing a new compressed air system or replacing a decades-old system, there are multiple reasons to consider press and grooved compressed air systems.

The cost of compressed air

Compressed air systems consume 10 to 15 per cent of all industrial electricity.

Compressed air systems, even the small ones, are massive energy hogs, so it’s important to optimise that energy use and minimise leaks as much as possible.

Unfortunately, leaks are all too common; an average facility that has not properly maintained its compressed air system can lose 30 to 35 per cent of the compressor’s output to leaks.

If your facility has not recently evaluated its compressed air system, chances are good that there are leaks.

Air, of course, is not free. Leaks result in higher than necessary operational costs, sometimes amounting to as much as tens or even hundreds of thousands of dollars over the course of a year.

In addition, leaks can lead to fluctuating system pressure, decreasing the efficiency of tools and machinery.

Equipment service life may suffer, and maintenance time and costs could increase. Corrosion of the steel piping system caused by moisture in the system may also result.

The piecemeal nature of many existing compressed air systems – a 42

March 2014

AustralianMining

Compressed air is costly, accounting for 10% to 15% of all industrial electricity usage.

result of increased production, facility expansion and the addition of new equipment over the years has brought together components new and old, perhaps incompatible.

The interaction of these components combined with ongoing plant operations and a number of other factors leads to leaks in the system.

Leaks can occur at any point within a compressed air system, but the most common locations are joints and connections, including pipe joints, valves, hoses, tubes, fittings and the like.

Many older compressed air systems are constructed with threaded steel piping, but threading is the least reliable pipe-joining method when it comes to preventing leaks. Two considerable causes of leaks in threaded piping systems are improper initial installation and typical plant operations that weaken the threaded seal.

System vibration, for example, can affect the thread tape or sealant, resulting in a leak. Poor thread cuts can also lead to leaks.

Attempting to fix leaks in threaded piping systems can create more headaches than the cost savings may seem worth, because tightening the

joint by turning the pipe will loosen an adjacent joint. Basically, fixing one leak may create another one.

Often, the solution to fixing leaks in threaded compressed air piping systems is complete replacement of the piping. Given the age and the number of leaks elsewhere in many of these systems, it may be best to start anew: create a system in which all components are compatible, using the latest technology available.

The cost savings achieved through the elimination of leaks will cover the material costs of the new system within a reasonable timeframe.

Compressed air piping

There are several schools of thought regarding the best type of piping system to use for compressed air, and multiple options on the market within each category. In recent years, compressed air lines constructed with press-to-connect and grooved mechanical piping have become popular for their ability to dramatically reduce the pipe joint as a leak source. As relative “newcomers” on the market, let’s take a closer look at these joining methods.

Press-to-connect piping systems join stainless steel pipe via a flame-free joining process that creates permanent joints in a matter of seconds. Pipe is cut to size and deburred, marked for visual verification of full pipe-tocomponent engagement, then inserted into a lubricated coupling, fitting or valve.

A handheld pressing tool is used to press the component containing seals onto the pipe-ends, providing a positive mechanical interlock and creating a precisely compressed, rigid joint. Sealing is achieved by a combination of the mechanical interference between the component and pipe and the compression of the seal material.

The mechanical strength of the joint is achieved through the crimping process.

When installed correctly, the elastomeric seals of a press-to-connect system significantly reduce the likelihood of leaks compared to threaded systems. In fact, in third-party accelerated aging and thermal cycling performance testing of a Victaulicmanufactured press-to-connect system and a threaded system, deviations from the original test plan had to be made because of frequent leaks in the threaded flow loop. Over the duration of the test, almost every threaded pipe joint developed severe leaks. As a rule, the larger the pipe diameter, the more difficult was the task of obtaining a satisfactory seal. This led the research team to state that the performance of the press system couplings was clearly superior to the threaded pipe joints in the test loop, which leaked excessively and repeatedly during the test.

The test results further stated, “It is the test engineer’s opinion that the Pressfit couplings offered distinct advantages over conventional threaded pipe components.”

In addition to minimising potential leaks at the joints, thereby increasing energy efficiency and reducing operating costs, press-to-connect systems offer several other benefits advantageous to industrial operations: installation that is up to five times faster than other joining systems and safer than welding, simple installation, and reduced total installed costs compared to other joining methods. www.miningaustralia.com.au

AM0314_043

- 43

2014-02-19T15:02:56+11:00

PRODUCT FOCUS: PIPES, PUMPS, VALVES & COMPRESSORS

Press systems are available for IPS pipe sizes ½-2 inches in diameter. Selecting an IPS pipe-sized press system can simplify integration with larger systems, and the thicker-walled pipe is typically more suitable for industrial applications. Press systems are available for Schedule 5S tube and Schedule 10S pipe. The pipe-wall thickness of ANSI Schedule 10S pipe is up to double that of Schedule 5S tube, which creates a system with up to three times the end-load performance, twice the bend-load performance, a 52 per cent increase in available flow, and a 23 per cent reduction in pressure drop per 100 linear feet of pipe over tubesized systems.

Most press systems offer several options for the seal material, including HNBR, nitrile, EPDM, fluoroelastomer and silicone, among others. For compressed air systems, the best option is HNBR or nitrile, both of which are resistant to oil vapours that may be present in the air. Some press systems can withstand pressures of up to 500 psi.

Grooved mechanical piping systems

Although not as new as press systems – grooved mechanical piping hasA been M 0 3around 1 4 _ 0since 0 0 _the R H1920s I - – the concept is still unknown to some.

Newer press-to-connect systems are dramatically reducing air leakage.

Like press systems, grooved systems The bolts and nuts, tightened with a employ a mechanical joint contain- socket wrench or impact wrench, ing an elastomeric seal, known as a hold the housings together. In the coupling, to join pipe. installed state, the coupling housA grooved joint comprises four ings encase the gasket and engage the elements: grooved pipe, coupling groove around the circumference of housings, a gasket and nuts and bolts. the pipe to create a leak-tight seal in The pipe groove is made by cold a self-restrained pipe joint. forming (roll grooving) or machinThe unique gasket design proing (cut grooving) a groove into the vides a triple-seal effect, creating a ends of a pipe. A gasket is positioned leak-tight joint. Gaskets are moulded around the joint of two abutted pipe to fit over the pipe ends and seal beends, then enclosed in the coupling tween the grooves. They are slightly 1 housings.

2 0 1 4 The - 0 2key - 1 sections 9 T 1 2 :of0 the 7 : 5 compressed 3 + 1 1 : 0 as 0 the coupling houscoupling housings engage the groove. ing is tightened, which enables low-

pressure sealing. The internal cavity is also energised by internal forces applying pressure downward on the sealing lips. The net effect is a pressure-responsive gasket that seals equally well at low pressures and at maximum rated coupling pressures.

In addition to creating leak-tight seals, grooved systems offer a number of additional benefits: installation that is up to 10 times faster than welding; safer installation through the elimination of flame and cutting; reduced total installed costs; ease of system maintenance and system expansion; accommodation of thermal expansion and contraction, deflection and seismic movement; and noise and vibration attenuation.

Grooved systems can be used on piping up to 60 inches in diameter, and pipe materials ranging from carbon, stainless and galvanised steel to copper, aluminium and plastic.

In short, press-to-connect and grooved mechanical piping systems are an ideal choice for compressed air lines because both joining methods practically guarantee a reduction, if not elimination, of air leaks through pipe joints compared to threaded systems, are much faster and safer to install than threaded and welded systems, and offer reduced total installed costs.

Tilt Screed Batter Bucket The ultimate bucket for pulling batters

•

The NEW fully patented “Screed Base” design is unique to Rhino Buckets.

•

This flat bottom concept is specially designed for pulling batters faster and neater than traditional “mud buckets”.

•

Rhino’s Screed Batter has become renowned among operators for making batters faster and easier to complete.

•

Combine this technology with Rhino’s 45O left and right tilting system and you have the ultimate bucket for pulling batters.

•

Twin double acting cylinders provide powerful rotation while the compact and low profile design gives increased breakout force.

Call us to find out more!

1300 748 018 Web: www.rhinobuckets.com.au E-Mail: sales@rhinobuckets.com

www.miningaustralia.com.au

AustralianMining

March 2014

43

AM0314_044

- 44

2014-02-20T15:41:12+11:00

PRODUCTIVITY & EFFICIENCY

Improving efficiency with MOBILE devices A

s the resource mar- large companies with annual industries in implementing ket tightens all eyes revenues of US$1bn or more. mobile technology. are firmly focused on The study investigated According to the survey how to extract ore and place the capacity of the new gen- radios are more likely to be it on a ship in the most effi- eration of portable devices to used in mines than either cient way. improve health and safety for smartphones or handheld Huge steps have been miners while boosting pro- computers. made by mining companies ductivity at the same time.

“Mining regulators and to add technologies to their It also considered the managers have been slow to operations which aim to in- challenges mining’s decision- deploy mobile technologies, crease productivity and effi- makers face as they seek to which is not surprising given ciency through automation harness the enormous poten- the hazardous conditions they while also increasing safety. tial of these new technologies work in. But it is because it is However a new report and manage their risks. so hazardous that they have has found the minerals and And the results were so much to gain. Where they resource industry has been somewhat surprising. have been introduced, we a slow adapter of the many It found that 84 per cent have seen a safer and more solutions in the market and of mining executives have productive workforce – and lags behind the oil the gas seen an improvement in this is starting to win people sector in its uptake of mobile health and safety after adopt- over,” says Riva Richmond, technologies. ing mobile technologies, com- the editor of the report.

The report, The new ca- pared with 60 per cent of utilThe report said improvnary in the mine, is based on ity executives and 54 per cent ing the flow of information at surveys of 150 energy and of oil and gas executives. mining operations through natural resource executives However, mining com- the use of new generation worldwide A M 0 3 1of4 _which 0 0 0 about _ S T A panies _ 2 -have1 so 2far0 lagged 1 4 - 0be2 - 1mobile 9 T 1 3devices : 3 5 : will 5 0 + help 1 1 : two fifths represent very hind oil and gas and utility companies become more

44

March 2014

AustralianMining

New technology can help miners to become more productive efficient and productive.

It claims mobile devices and associated technology can be plugged in to help with every aspect of a mine’s profile.

“The technology can with existing com0connect 0 munications and tracking

(CT) systems but is not dependant on them,” the report explained.

“If a CT system is disabled, the mobile devices will hold all of the information and tools that workers need to continue to operate safely and effectively.”

www.miningaustralia.com.au

AM0314_000_DON

-

1

2014-02-13T13:25:04+11:00

AM0314_046

- 46

2014-02-19T13:40:34+11:00

PRODUCT SHOWCASE

No weld pipe supports

It has a blade capacity of 18 cubic metres.

Caterpillar launches new dozer CAT has released the new D10T2 tracked dozer. According to the company this new dozer builds on the existing D10T, and features refinements to its power train, automated controls, and its structure. Cat states that it uses advanced load sensing hydraulics combined with Cat engine control “to maximise the amount of material moved for every drop of fuel burned”. This system automatically and continuously adjusts implement hydraulic power and delivers the right levels of flow and pressure, allowing for more power available for the tracks. Enhanced AutoShift (EAS) is also included as a new standard feature on the D10T2.

“EAS improves fuel efficiency and productivity by automatically selecting the optimal gear and engine speed combination based on power train load and desired ground speed,” Cat said. “This feature functions similarly to an automatic transmission. EAS functionality combined with the increased power in reverse enhances productivity when backing up slopes.” Autocarry, which provides automatic blade control during the carry segment of the dozing cycle by measuring ground speed and track slip in included, with a new feature – Adaptive Load Select – enhancing Autocarry by automatically adjusting blade load based on operating conditions, such as underfoot conditions and track wear.

Similarly, the new Automatic Ripper Control monitors speed with GNSS and automatically adjusts engine speed and ripper depth to minimise track slip. It has an operating weight of 70 tonnes, and a semi-universal blade capacity 18 cubic metres and a universal blade capacity of 22 cubic metres.

• Caterpillar www.cat.com MA 0 8 1 3 _ 0 4 2 _ F E R 1 2 0 1 3 - 0 7 -

SWIFT Metals Services has released a new generation of pipeline supports and mounting brackets. Designed and manufactured by Swift with its allied companies, Anchorage Pipe Supports provides innovation in height adjustable pipe support. Swift Metal manufacture the popular Anchorage height adjustable flange mount pipe support system in galvanised or powder-coated finishes or formed from stainless steel, for additional corrosion resistance. Anchorage Height Adjustable Pipe Supports are composed of a pipe flange mounting, with adjusting collar, grub screw and locknut, and are supplied complete with a welded baseplate and stanchion. The centreline of the pipe support system can be No hot work certificates adjusted up to 120mm, to accommodate height variations across undulating terrain – needed. without the need for cutting or welding on site. With this important adjustment feature, no tailoring, welding, fabricating or cutting of the pipe support mechanism is required on site – meaning trucks equipped with welding equipment and qualified welding personnel, are similarly unneeded.

Civil contractors and pipeline installers are ensured to save time and money while improving on-site safety by utilizing the Anchorage Pipe Support system. A secondary benefit of the Anchorage Height Adjustable Pipe Supports is the versatility of installation in gas fields, or areas where there is a danger of fire or explosion: as no welding or cutting is required onsite, users do not need to obtain regulatory Hot Work Permits.

• Anchorage Group 02 6969 2345 www.anchoragegroup.com.au

Automatic hydraulic oil hose reels AUSTRALIAN hose reel manufacturer, ReCoila Reels presents the Automation AG Series, a range of constant tension automation reels specifically designed to supply hydraulic oil from fixed to moving points on cranes, truck mounted cranes, forklift trucks and other materials handling equipment.

ReCoila’s Automation Series hose reels for hydraulic oils are suitable for use in moving applications in mining, quarrying, construction, energy, transport and shipping as well as the general Can accommodate one engineering sectors. ReCoila’s Automation Series reels are designed to accommodate anywhere to six hose reels. from a single hose to six hoses to meet the varying demands of diverse industries, particularly, the mining industry. Key features of the reels include an internal drive spring that ensures any AG Series reel remains under constant tension, allowing thousands of repetitive cycling motions without impacting the internal components; and standard high quality bearings and components designed for high cycle rates and high life expectancy to meet extended duty cycles in situ as well as demanding applications and environmental operating conditions. The hose reels are built for heavy duty performance, with the robust build allowing the reels to handle constant repetitive unwind/rewind motions of crane arms or forklift lifting mechanisms.

• ReCoila 1300 833 677 www.recoila.com.au 1 8 T1 5 : 1 6 : 0 9 + 1 0 : 0 0

P Find

46

March 2014

AustralianMining

Evaluate

Select

www.miningaustralia.com.au

AM0314_047

- 47

2014-02-19T13:41:25+11:00

PRODUCT SHOWCASE

Safety PLC controllers

Plastic water tanks provide better torsion ability.

Polyethylene water tanks CARTING water around Australia is nothing new. But at Gough Plastics, we have the latest state-of-the-art world-class machinery and a highly skilled design team to create water tankers that offer the exact features you need. We can deliver the best combination of tanks, pumps, control systems, valves and spray options all in a lightweight tank. We can also create custom sizes and shapes to include auxiliary components.

Need a yellow hose reel attached to your tank? We can make it! Need a customised storage box for your equipment? We can make that, too!

You can count on Polyethylene tanks to be clean, durable and safe for water or other liquids since there is no corrosion or contamination.

Poly tanks have a greater ability to absorb torsion and vibration, making it safer in transit. No matter what the road looks like, a Gough Plastics tank with its clever design and inherent properties can withstand the bumps and potholes. And you know with a Gough Plastics tank, quality is guaranteed.

Our website features many examples of water tankers currently being used throughout Australia. No job is too big or too small for our Plastic Fabrication services, so if you need to cart liquids,look to plastic.

• Gough Plastics www.gough.com.au MA 0 8 1 3 _ 0 4 3 _ F E R 2 2 0 1 3 - 0 7 - 1 8 T

MICROMAX introduces the SC26-2 programmable safety controller from Banner Engineering designed with greater flexibility and ease of use. Offering PLC-level capability and control without the programming complexity and steep learning curve of traditional PLCs, the new SC26-2 programmable safety controller is more flexible and easier to use than other small footprint safety controllers. The SC26-2 uses safety function blocks, Boolean logic functions and a user-friendly programming environment for creating safety control logic. Featuring 26 input terminals and two redundant solid state safety outputs, the SC26-2 programmable safety controller enables safety system design engineers to easily monitor a variety of input devices, such as e-stop buttons, rope pulls, interlock switches, safety light curtains and other safety and non-safety input devices. The controller’s free PC Graphical User Interface configuration software features pre-configured safety Has 26 input terminals and two safety outputs. function blocks, including two-hand control, muting and enabling device to simplify application programming. Tom McMonagle, Director of New Product Planning, Banner Engineering comments that the SC26-2 programmable safety controller offers eight input terminals that can be configured to monitor input device signals, source 24V dc or serve as IO status outputs, providing exceptional utility. He adds that the SC26-2’s intuitive programming and live display capability suit the needs of customers who are working with fewer resources and need to save time.

• Micromax 1300 322 536 www.micromaxsa.com.au

Extended life lubrication CAPS Australia introduces the Ultra EL rotary compressor lubricant developed by Ingersoll Rand to enhance operational efficiency and reduce maintenance requirements in compressed air systems. Ultra EL (extended life) rotary compressor lubricant is a next generation synthetic lubricant formulated to perform up to 16,000 hours, twice as long as any other synthetic rotary lubricant, maximising uptime and reducing lifecycle costs in various industrial processes. Ultra EL rotary compressor lubricant incorporates the latest performanceCan perform up to 16 000 enhancing technologies to allow air compressors to run cooler and more efficiently even hours. in high ambient temperature environments. Ultra EL’s revolutionary composition protects critical components, significantly reducing wear and increasing component longevity while enhancing overall compressor performance. Ultra EL is best suited to high-demand, multi-shift applications.

When used in demanding environments, Ultra EL halves change-out frequency, minimising downtime and reducing maintenance requirements, disposal costs and environmental impact. Unlike conventional or generic lubricants, Ultra EL will not leave deposits that can clog compressors or break down into harmful acids or alcohols. Superior water separation ensures continued lubricant performance, protecting the compressor.

Ultra EL has a higher flashpoint (272°C).

• CAPS Australia 1300 284 896 www.capsaust.com.au 1 5 : 1 6 : 4 6 + 1 0 : 0 0

The easiest way to find products and suppliers

Manufacturing | Mining | Industrial

askferret on 1300 156 836

www.miningaustralia.com.au

AustralianMining

March 2014

47

AM0314_048

- 48

2014-02-24T10:37:18+11:00

11th Annual Australian Mining Prospect Awards In this issue we have a brief word from some of the sponsors about their companies and why they choose to sponsor the Prospect Awards.

SEW-Eurodrive

MMD

SEW-Eurodrive is proud to be sponsoring the Coal Mine of the year award at the 2014 Australian Mining Prospect Awards.

As a key supplier to the coal mining industry, we believe in quality and efficiency when it comes to drive technology.

Supplying a range of industrial gear units, motors and drives in sizes in excess of 1MW, we deliver more than just products to heavy industry.

A team of talented engineers develop effective and timely solutions based on customers’ motion requirements, which are backed by aftersales commissioning and product support that is second to none.

We also understand that time is money, so units are delivered within a matter of weeks from our local assembly plants, rather than waiting months for items to be shipped from overseas.

The coal mining industry is one of Australia’s strongest assets – as the world’s greatest exporter of coal, we can be thankful for an industry that has given us global recognition.

SEW-Eurodrive takes great pride in sponsoring the coal mine of the year award, which we hope in turn, encourages the organization in and industry which has greatly supported our company over time.

We hope that this award goes to a fitting recipient to provide them with the acknowledgment they deserve for making such a strong contribution to Australian industry.

SEW-Eurodrive looks forward to further ongoing partnerships with all forms of mining, now and into the future.

Mining Machinery Developments (MMD) designs and manufactures mineral sizing (crushing) equipment and services to the mining, metallurgical, industrial minerals, alumina and other industries.

The core products; Mineral Sizers (crushers) and Feeders offer a solution to problems such as variable ore properties, product requirements, site conditions and environmental issues.

Founded in 1978, to design and manufacture equipment for the UK underground coal mining industry, today MMD size over 60 different minerals world wide, in many varied process industries.

MMD Sizing equipment is available for surface or underground installations, stationary or mobile, and for climatic conditions ranging from arctic to tropical.

The MMD Sizer range now includes, primary, secondary and tertiary Sizers for wet and dry processing of metallic and non-metallic minerals for mining, industrial minerals and quarrying industries.

To complement the robust Twin Shaft Mineral Sizer, MMD has designed and developed a range of heavy duty Apron Plate Feeders, which convey unbroken material to the crushing plant.

Standard widths available are 1500, 2000, 3000 and 4000mm on D4, D7, D9 and D11 Caterpillar sealed and lubricated tractor chain.

The mobile and semi-mobile sizer systems developed by MMD are both high in capacity and compact in size when compared to the traditional technology in this field.

The latest range of MMD Mobile Sizers have the ability to offer mine operators unprecedented levels of productivity, and therefore very low operating costs per tonne.

These energy efficient electrically driven “Green Mining Solutions” are all designed to assist mining companies to achieve the double bottom line of being both economic and environmentally friendly.

MMD is proud to be the long running sponsor of the Australian Mine of the Year award.

Atlas Copco For over 130 years Atlas Copco has supplied the world with mining equipment, making it one of the most experienced suppliers in the industry. Since setting up shop in Kalgoorlie in the 1950s, Atlas Copco has learned from the very specific and in many ways original Australian mining methods, which differ from the rest of the world. On top of higher demands on people and equipment, conditions faced in Australia (especially water) are very often tougher than most. One of Atlas Copco’s highest priorities is reducing people’s exposure to the drilling process and to the hostile environment often found in underground mines.

With our first experience in automation over a quarter of a century ago, and having spent the past 13 years refining our common rig automation platform RCS, the performance of Atlas Copco’s production drill rigs, RCS control system, rock drills, Cable bolting rigs and innovative braking system (SAHR) have set the standard in the industry for productivity and safety.

The Prospect Awards recognise personal and company achievements, and they recognise the new benchmarks these create within the industry.

As a company and as individuals, Atlas Copco and its staff are pleased to support this event the Contract Miner of the Year and Hard Rock Mine of the Year awards because we appreciate how hard it is to be at the frontier of mining.

48

March 2014

AustralianMining

Be a leader in Australia’s mining industry and nominate today

www.miningaustralia.com.au

AM3410_AWARDS2.pdf

Page

2

24/02/14,

4:50:05

PM

AEDT

Nominations are now open for the 11th annual Australian Mining Prospect Awards to be held on 24 October 2014.

A total of 15 awards will be up for grabs on the night, highlighting companies’ innovation and excellence in the mining industry.

All finalists will receive free publicity in Australian Mining and two free tickets to the gala dinner where the winners will be announced.

For more information visit www.miningaustralia.com.au/awards

PROUDLY SPONSORED BY

AM0314_050

- 50

2014-02-19T13:54:29+11:00

EVENTS

Conferences, seminars & workshops Event submissions can be emailed to editor@miningaustralia.com.au Central Queensland Industry & Resources Expo 19-20 March Rockhampton, QLD CQEXPO is now in its third year and is firmly placed as a key trade event for Rockhampton and Central Queensland. This event is designed to support the industry and resource sectors of Rockhampton, Gladstone and the Southern Bowen and Galilee Basins, with exhibits by suppliers, service providers, government agencies and manufacturers.

A new Chamber of Commerce in Rockhampton, exciting developments in the mining sector in Central Queensland, the promise of a new industry supportive Federal Government and an increased demand for energy through the Port of Gladstone are all helping to set the scene for a renewed boom time in Rockhampton, and across Central Queensland.

The CQEXPO will be the meeting place for those already active across the region and for those wanting to be a part of the action.

• CQ Expo www.cqexpo.com.au

WA Safety in Construction Conference 19-20 March Perth Convention Centre, WA The Conference highlights the challenges facing the Western Australian Government as it explores transitional models before completely implementing the WHS Act 2012 through Parliament this year. The Conference fosters an environment where participants will discuss the impact to the construction industry as organisations begin to streamline the changes.

• Expotrade www.safetycon.com.au

3PL E-warehouse Management and Solutions 25-27 March Melbourne Exhibition & Convention Centre, VIC With Australian retailers and suppliers facing increasing challenges from a rapidly changing digital world, a new three-day exhibition for the logistics sector has

50

March 2014

AustralianMining

been announced for Melbourne in March 2014.

The 3PL (third party logistics) E-warehouse Management and Solutions Show will be held at the Melbourne Exhibition and Convention Centre from March 25-27, 2014, and is being organised by Fair Events With its strong focus on third party logistics solutions, the 3PL Show is aimed at decision-makers across the logistics, supply chain, distribution, warehouse and materials handling sectors.

It will run along side the e-Commerce Conference and Expo – to be held at the same venue – with a common theme of ‘How we connect, buy and supply in the future’.

The exhibitor profile includes suppliers and providers of third-party logistics services, logistics and warehouse management systems, software solutions, warehousing and materials handling equipment/ services, transport and packaging systems/equipment, security systems, and order fulfilment systems.

• Fair Events 02 9452 7572 www.3plshow.com.au

WA Major Projects Conference 26 March Wheelers Hill, VIC This Conference continues to be the largest major projects and infrastructure conference in the state, attracting over 350 delegates annually. The event will feature the latest updates on infrastructure, housing and development happening in Western Australia.

With more than $280 billion worth of projects in the pipeline for Western Australia, investment in infrastructure is crucial for the state’s growth and development.

This two day Conference creates a platform where senior executives from government, construction and mining will gather to network, learn and participate in discussions about the current and future projects happening in Western Australia.

• Expotrade www.waconference.com.au

North Queensland Industry & Resources Expo 27-28 March Townsville, QLD

The inaugural North Queensland Industry and Resources Expo is the third leg of the essential Industry and Resources trifecta of events in Queensland.

Townsville is the economic hub and powerhouse for North Queensland, with direct air and sea links to Asia and the Pacific including PNG. It has brilliant rail and road transport access with plans in place for future expansion of these facilities is a dedicated trade event designed to support the industry and resource sectors of North Queensland.

NQ Expo will be the showcase for this dynamic and abundant region. It will be a targeted and cost effective opportunity to network, market and generate sales, leads and industry contacts.

• NQ Expo www.nqexpo.com.au

Construction Risk Management Summit 1-2 April Wheelers Hill, VIC This timely Summit will bring together an expected 150 delegates from the construction, risk management and insurance industry.

Allowing opportunities to learn, discuss, network, challenge and collaborate under one roof.

Hear how the use of technology will improve your risk management processes.

All elements of risk will be discussed; contractual risk, project risk and financial risks. Covering project delivery delays, managing what happens on the construction site as well as OH&S issues.

• Expotrade www.constructionrisksummit. com.au

Mining World Moscow 9-11 April Moscow, Russia MiningWorld Russia 2014 is the 18th international exhibition and conference for mining and processing metals and minerals in Russia. Last year more then 430 companies from 32 countries, including Australia, exhibited at the event, with the Australian ambassador speaking at the opening.

Russia is currently one of the world’s largest emerging markets, and represents a significant opportunity

for Australian mining equipment and services companies to garner new work as the Australian market slows down.

According to Austrade there are a number of opportunties for Australian METS companies that include mining software and systems development;investment, including joint ventures; integrated project management; contract mining; supply (including leasing and acquisition) of mining plant and equipment; technology transfer and consultancy expertise.

• MiningWorld Russia www.miningworld-russia. primexpo.ru/en/

Mongolia Mining 2014 10-12 April Mongolia This year’s expo, the 4th edition, will be yet larger than all previous editions with vast geographic allocation of exhibitors. Except from traditional mining industry, this year’s expo adds oil industry to its profile and is organized under the name Mongolia Mining 2014, International Mining and Oil/Gas Expo.

• MinexMingolia www.mongolia-mining.org

Mining & Engineering Western Australia (M&E WA) 6-8 May Perth, WA REEDMININGEVENTS presents Mining & Engineering Western Australia (M&E WA) 2014.

The show is a biennial mining industry exhibition and conference that focuses on the unique needs, challenges and opportunities facing Western Australia’s mining industry.

M&E WA is the leading WA exhibition for visitors to source the latest mining technology and innovations, gain insights into improving efficiency and boosting productivity while at the same time providing an opportunity to network with industry peers.

• Reed Exhibitions www.miningandengineeringwa. com.au

Astana Mining and Metallurgy Conference 12-13 June Astana, Kazakhstan Congress AMM annually unites

world political, business, financial and scientific leaders of mining and metallurgical industry for development of mutually advantageous partnership, introduction of innovations and attraction of investments.

The event holds a number of round tables, forums and a large exhibition, and last year saw more than 1200 delegates from across 20 countries attend.

During the mining exhibition there will also be a comptetion, the Golden Hephaestus, which recognises and rewards professionals in the mining iindustry, ranging from a focus on innovation through to mining education.

The event will also host the World Mining Congress Organization Committee, ahead of the WMC’s event in Kazakhstan in 2018.

• AMM www.amm.kz/en

Surat Basin Energy & Mining Expo 18-19 June Toowoomba, QLD The Surat Basin Energy and Mining Expo is Southern Queensland’s premier energy, mining and resources event, servicing the booming Surat Basin, unmatched in diversity and opportunity.

Now in its fourth year this event continues to break all records, attracting visitors from around Australia and across the globe.

The Surat Basin covers an extensive area across South West Queensland with billions of dollars in projects under way and in the pipeline.

Projects include a new jet capable airport, a new intermodal hub for the western precincts, a revised schedule for the second range crossing, new industrial estates, new shopping centres, new residential sub divisions and new roads.

This event provides an excellent environment for businesses and visitors to network, market and generate sales, leads and industry contacts.

With over 600 exhibitor sites for suppliers, service providers, government agencies and manufacturers, the Expo showcases extraordinary opportunities to engage in this rapidly developing region.

• Australian Events www.suratbasinexpo.com.au/ www.miningaustralia.com.au

MAR3835_Ad_Update

-

1

2014-02-24T16:03:35+11:00

B2B SPECIALISTS

With 30 years experience, 160,000 postal contacts and 115,000 email contacts, Mardev can can provide you a list for your nextdirect marketing campaign.

FOR A FREE QUOTE CONTACT TRAVIS DIDYCHUK on 02 8484 0745 or email travis.didychuk@cirrusmedia.com.au

AM0214_000_HIT

-

1

2014-01-07T14:51:17+11:00

// B E C A U S E Y O U D O N ’ T D O T H I N G S B Y H A LV E S

Hitachi AC Drive dump trucks. Built to match Hitachi excavators.

Our trucks and excavators are brothers. They’re designed by the same engineers, assembled in the same factories, and built to the same quality. If you’re running a Hitachi excavator, then you’ve already experienced half of the Hitachi advantage.

Now it’s time to see what a fleet can do.