Skillings Mining Review October2024

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Volume: 113. Issue.10. October 2024

22 Mining Automation Transforming the Future of the Mining Industry

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Revolutionizing Revol Iron Ore Advanced Processing Technologies Reshape Recovery, Quality, and Sustainability in the Modern Mining Landscape.

INSIGHTS FROM EXPERIENCED PROFESSIONALS ON

A Discussion on Leadership, Work-Life Balance, & Environmental Responsibility Interview with Industry Leaders Piyush Srivastava & Gary Rivenes

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Skillings.net | October 2024

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Inflation Trends and the U.S. Debt Crisis 2024

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Mining industry struggles with valuation gap

Volume: 113. Issue.10. October 2024

Mining Automation

Transforming the Future of the Mining Industry

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Mining automation is no longer a vision of the future—it is the present reality driving the industry toward greater efficiency, productivity, and safety.

Mining automation has emerged as a transformative force within the global mining sector, significantly improving operational efficiency, safety, and productivity.

44 Touquoy Mine Cleanup: St Barbara’s Atlantic Mining Faces Tight Deadline

Piyush Srivastava & Gary Rivenes INSIGHTS FROM INDUSTRY PROFESSIONALS

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Data-Driven Hauling

Revolutionizing Iron Ore Advanced Processing Technologies Reshape Recovery, Quality, and Sustainability in the Modern Mining Landscape. As the sector navigates these challenges, advancements in processing technologies will be crucial in defining its future landscape.

05 New Anomalies Identified at Mt Gordon Mine 06 Core Lithium’s BP33 Ore Reserves Surge 223% 06 Komatsu Unveils HD465-10 and HD605-10 Haul Trucks 07 Alpha Petroleum Secures Landmark $200M Contract 08 Copper Prices Surge Amid China’s Recovery

A Discussion on Leadership, Work-Life Balance, & Environmental Responsibility

10 BHP helps conserve one of Canada’s natural wonders 20 Adina Lithium Project: A CapitalEfficient Leader in Lithium 27 Mine Waste Management Tech Promises Safer, Greener Mining 28 Bastion Minerals to Explore Large Mineralized Quartz Vein 29 Pan African cracks US index after Van Eck takes 5.9% stake

Optimizing Load & Haul with Digital Technologies. The future of mining load and haul operations is rapidly evolving, with technology playing a key role in enhancing productivity, safety, and sustainability. The shift towards automation, electrification, and digitalization is being driven by industry-wide commitments.

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35 Miners prefer Canada to overseas: KPMG 41 Gold ETFs Surge as Investors Eye Interest Rate Cuts 41 SA’s Ferroalloys Industry Adapts to Green Energy Pressures 42 Miners Leveraging Chinese Capital 43 Steel Prices Continue to Decline Amid Weak Chinese Demand

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Skillings.net | October 2024

New Anomalies Identified at Mt Gordon Mine True North Copper has taken significant steps in its exploration efforts at the Mt Oxide project in Queensland, identifying multiple highly prospective copper targets.

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he company’s geophysical survey has uncovered three shallow and untested anomalies at the historic Mt Gordon copper mine, coinciding partially with historical drill intersections, such as a 1.9m interval grading three percent copper from 106m downhole. These findings further bolster the project’s potential for high-grade copper discoveries.

Aquila Prospect Shows Promising Copper-Rich Structures In addition to the Mt Gordon anomalies, the Aquila prospect has yielded encour-

aging results, with two new 20m-wide anomalies identified. One anomaly aligns with a 150m-long trend of anomalous copper fault breccias, while the other is up to 25m deep, correlating with a Dorman trending structure situated 80m below the surface.

Geophysical Survey Reveals Untapped Potential The survey, supported by a Queensland Government Collaborative Exploration Initiative (CEI) grant, used advanced MIMDAS induced polarisation (IP) and magnetotelluric (MT) technology to pin-

point previously unexplored geophysical targets. These newly discovered targets share key characteristics with the highgrade Vero copper-silver-cobalt resource at Mt Oxide, offering further evidence of the area’s untapped potential.

True North Copper managing director Bevan Jones expressed optimism about the findings, stating, “Our geophysical survey at Mt Oxide has revealed several new, highly prospective targets that share similar characteristics with our high-grade Vero deposit.”

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Core Lithium’s BP33 Ore Reserves Surge 223%, Boosting Restart Prospects Core Lithium has announced a significant increase in the total ore reserve at its BP33 lithium project, rising by an impressive 223%.

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his increase provides a strong foundation for the project’s restart and extends the overall operating life of the Finniss lithium operation in the Northern Territory.

Core Lithium’s BP33 project has seen its total ore reserve grow to 8.7 million tonnes (Mt) at 1.38% lithium oxide, a 223% increase compared to previous estimates.

This substantial boost highlights the potential for a longer-term operational strategy as the company focuses on restarting the project. Meanwhile, the Grants open pit ore reserve has decreased to 0.6Mt at 1.40% lithium oxide due to mining depletion and operational adjustments.

The updated reserves now bring the total for Core Lithium’s Finniss operation to 9.3Mt at 1.38% lithium oxide, with the company prioritizing the BP33 and Grants deposits as key areas of focus.

Core Lithium has emphasized that the updated ore reserve supports a “simpler project” with an estimated 9.5-year operating life at a one-million-tonne-per-annum processing capacity. Chief Executive Officer Paul Brown noted that the reserve update aligns with the company’s strategy to simplify its operations and focus on higher-grade deposits.

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Komatsu Unveils HD465-10 and HD605-10 Haul Trucks at MINExpo At MINExpo 2024 in Las Vegas, Komatsu showcased two new mechanical haul trucks for the North American market, the HD465-10 and HD605-10.

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hese trucks are designed to boost productivity and enhance fuel efficiency across quarry, mining, and aggregate applications. The new models represent a significant upgrade from the previous -8 versions, promising improved performance and operator comfort.

Enhanced Payload Capacity and Speed on Grade The HD465-10 is a 60-tonne rigid frame truck, while the HD605-10 offers a 70-tonne capacity. Both trucks are equipped with high payload capabilities, making them efficient workhorses for heavy-duty hauling operations. Komatsu has also incorporated increased horsepower and high-strength steel construction to reduce operating weight, allowing these vehicles to deliver excellent speed, even on challenging grades.

Fuel Efficiency Boost with Multiple Operating Modes To cater to diverse work environments, both the HD465-10 and HD605-10 feature multiple operating modes to optimize fuel efficiency. Operators can switch between ‘economy’ and ‘economy light’ modes depending on the haul load, helping companies reduce overall fuel consumption during lighter tasks. Additionally, an automatic retard speed control system aids in managing fuel use during downhill descents, contributing to improved efficiency and safety.

Komatsu’s new trucks come equipped with several operator-friendly enhancements aimed at improving comfort and safety during long shifts. Both trucks feature an ergonomically designed cabin that includes a retractable sun visor and a throttle lock function for reduced operator fatigue. For additional convenience and safety, the trucks are fitted with hill start assist, waiting brake, and a full LED light package. The vehicles’ tight turning radius enables smooth navigation, even on narrow haul roads.

Alpha Petroleum Secures Landmark $200M Diamond Mining Contract in Namibia

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igerian-based Alpha Petroleum has secured a groundbreaking $200 million diamond mining contract in the Republic of Namibia, awarded

by NAMDEB—a joint venture between the Namibian government and De Beers Group.

The contract, which marks Alpha Petroleum’s first major deal in Central Africa, grants the company the right to conduct mining operations within NAMDEB’s offshore sea mining license.

Set to begin on October 1, 2024, the mining project will focus on extracting diamonds from diamondiferous gravels

in Namibia’s offshore Halifax Island and Kerbehuk mining zones. Alpha Petroleum will utilize a shallow water mining vessel equipped with advanced technology to extract, process, and recover diamonds from these areas.

The extracted diamonds will be delivered monthly to the Contractors Treatment Facility in Luderitz, Namibia, with annual production estimated between 30,000 to 60,000 carats. This operation is expected to significantly boost Namibia’s diamond output, further enhancing the country’s status as a leading diamond-producing nation. The economic benefits of the project will also be felt in the local region,

particularly in the Halifax Island and Kerbehuk zones. Dr. Babajide Agunbiade, Founder and CEO of Kerbehuk mining zone, expressed his excitement about the contract win.

“We’re proud to have won this competitive bid, and we’re ready to commence operations on what will be the largest diamond mining project in Namibia,” he said, noting the project’s importance for both Namibia and the African continent.

Alpha Petroleum, a subsidiary of Alpha Energy Resources, specializes in marine mining with a strong focus on both shallow and deep-water operations.

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copper production soars in 2024

Copper Prices Surge Amid China’s Recovery and Green Energy Demand COPPER, OFTEN REFERRED TO AS “DR. COPPER” FOR ITS PREDICTIVE abilities regarding economic trends, has experienced significant price fluctuations in recent quarters.

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he combination of China’s economic recovery, global supply constraints, and a surge in demand from green energy technologies has played a major role in shaping the market. As the world continues its transition to renewable energy, copper’s importance is expected to grow, though challenges and uncertainties remain.

Several copper mines around the world are dealing with production challenges stemming from regulatory hurdles, operational inefficiencies, and declining ore grades. This limited supply has played a crucial role in driving prices higher, with investors eyeing copper as an increasingly valuable commodity.

China’s Economic Recovery Spurs Copper Demand China, the largest consumer of copper globally, has shown signs of economic revival, particularly within its manufacturing sector. The country’s Purchasing Managers’ Index (PMI) points to positive momentum, hinting at potential manufacturing expansion. This rebound has sparked renewed optimism in the copper market, as industrial growth in China is typically linked to higher copper demand.

Adding fuel to this optimism, the Chinese government has introduced substantial economic stimulus measures, such as a recent 1 trillion yuan infrastructure package. These investments are set to increase domestic consumption and infrastructure projects, further boosting the demand for copper and contributing to the upward pressure on prices.

While demand for copper surges, global supply is facing significant constraints.

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Credit: ICSG

Adding to this, Solaris Resources has made notable progress in its Warintza Project in Ecuador. The company recently submitted its Environmental Impact Assessment (EIA), a significant step toward the project’s development.

With total resources estimated at 2.3 billion tonnes grading 0.43% copper equivalent (CuEq), the Warintza project is seen as a potential future driver of copper supply. However, production is not expected until after 2025, which

means current supply constraints will continue in the short term.

Surging Demand from Green Energy and Technology Sectors The global shift towards green technologies, including electric vehicles (EVs) and renewable energy infrastructure, has significantly increased copper demand. EVs use far more copper than traditional combustion vehicles, both in the cars themselves and the charging infrastructure. With countries pushing for greener alternatives, copper has become essential to the energy transition.

Renewable energy projects, such as wind and solar farms, also rely heavily on copper for power generation, transmission, and distribution. As nations accelerate their shift toward clean energy, copper demand is projected to rise sharply, adding further strain to the limited supply and sustaining high prices.

Interestingly, China has seen a significant uptick in copper exports in recent months. In May 2024, China’s refined copper exports reached their highest levels in eight years, marking a 200% year-over-year increase. This unexpected surge has temporarily eased some of the upward pressure on prices, contributing to short-term market volatility.

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BHP helps conserve one of Canada’s natural wonders, Meewasin Valley In a bid to preserve one of Canada’s most significant natural landscapes, BHP has provided CAD250,000 ($270,565) in funding to the Meewasin Valley Authority.

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he contribution aims to bolster conservation efforts in the Meewasin Valley, an ecologically rich area located in Saskatoon, Canada. This partnership reflects BHP’s growing focus on environmental stewardship while continuing to develop its core mining projects.

The Meewasin Valley is home to hundreds of plant and animal species, playing a crucial role in maintaining the biodiversity of the region. However, like many natural landscapes, it faces ongoing threats from invasive species and environmental degradation. The funding from BHP will enable the Meewasin Valley Authority to expand its restoration initiatives, with a focus on native plant species and improving ecosystem health.

Restoring a Vital Ecosystem The funding will facilitate the planting of 5,000 native trees, shrubs, and grasses per year, while also restoring five million square meters of land. In addition to these planting efforts, the partnership will support ecological restoration activities such as removing noxious weeds, conducting prescribed burns, and implementing targeted grazing. These practices are critical to maintaining the valley’s ecological balance and ensuring its long-term sustainability.

Andrea Lafond, CEO of the Meewasin Valley Authority, expressed enthusiasm about the partnership’s potential.

“BHP’s contribution allows us to expand our restoration efforts and do more to protect this incredible natural resource,” said Lafond. “We’re thrilled to be able to strengthen our programs and engage the community in ensuring the valley’s health for generations to come.”

BHP’s support will also extend to the Meewasin Valley’s volunteer programs, which draw thousands of people to the

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area annually. These programs not only provide hands-on conservation experience but also foster community engagement with sustainability and environmental stewardship.

The company’s contribution will allow the Authority to scale these efforts, further enriching the relationship between the community and its natural environment.

BHP’s decision to support the Meewasin Valley Authority aligns with its broader goals of environmental responsibility.

Simon Thomas, BHP’s Vice President of Projects – Potash, noted the significance of the partnership in achieving shared conservation objectives. “We are proud to contribute to the incredible work Meewasin is doing,” said Thomas. “Our shared goal is to ensure that the valley remains a vibrant and healthy ecosystem that future generations can enjoy.”

BHP’s involvement in the region extends beyond conservation.

The Meewasin Valley lies in close proximity to Saskatchewan, where BHP’s Jansen potash project is currently under development. The project, a cornerstone of BHP’s future production plans, reached a milestone in July, with the completion of over 50% of Stage 1 construction. As Stage 2 progresses, it is expected to be completed by 2029, further establishing BHP’s presence in the region.

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Uranium Royalty Corp. Offers Diversified Exposure Without Mining Risk URANIUM ROYALTY CORP PROVIDES INVESTORS WITH diversified exposure to uranium prices through royalties and streams, without the risks of mining operations.

In the ever-evolving energy landscape, uranium is back in focus as global demand for nuclear power surges. Uranium Royalty Corp., trading at around C$3 per share, has carved a unique position for itself in this space. As the only pure-play uranium royalty company, it offers investors diversified exposure to rising uranium prices without the operational risks typically associated with mining.

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his strategic model gives Uranium Royalty Corp. (URC) the ability to benefit from the uranium market without engaging in costly mining projects. By utilizing a royalty and streaming business model, the company positions itself to profit from uranium’s upward price trajectory via royalties, streams, and physical inventory.

A Unique Approach to Uranium Investment Unlike traditional mining companies, URC avoids the significant capital expenditures and environmental risks that come with exploration and mining operations. Instead, it secures royalties and streaming agreements, which provide the company with long-term revenue from uranium mines without direct involvement. This strategy allows URC to maintain low overhead costs while enjoying exposure to a potentially lucrative market as uranium prices rise.

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URC’s current portfolio consists of 21 royalty interests in 19 development, advanced, and producing uranium projects across multiple jurisdictions, including Canada, the United States, Namibia, and Australia.

Highlights of its portfolio include royalties on Cameco’s McArthur River and Cigar Lake mines in Canada’s Athabasca Basin—two of the world’s top-tier uranium-producing assets.

One of the more immediate production plays in URC’s portfolio is the Lance Mine in Wyoming, set to commence uranium production by the end of 2024. Meanwhile, the Langer Heinrich Mine in Namibia, a key producer, has resumed operations after a temporary shutdown.

This broad geographical exposure spreads risk and taps into new production as nuclear energy demand grows globally.

Strategic Holdings in Physical Uranium

A Nuclear Renaissance in Progress

One of URC’s notable strategies is its acquisition of physical uranium inventory at advantageous prices. The company currently holds approximately 2.7 million pounds of drummed uranium with an average cost of less than US$60 per pound U3O8. With uranium prices hovering around US$80 per pound, URC stands to benefit from this significant appreciation in value.

The demand dynamics for uranium are driven by a nuclear renaissance.

Governments worldwide are increasingly turning to nuclear power as a clean energy solution to meet their growing electricity needs while addressing climate change concerns. Notably, China is leading the charge, with 30 new reactors currently under construction. By 2030, the country aims to surpass the United States and France in nuclear capacity, with plans to increase nuclear energy’s share of its total energy mix from 5% to 15%.

This inventory, acquired near cyclical lows, is a testament to the company’s opportunistic market approach. By taking a position in physical uranium at the right time, URC effectively created a “warchest” valued at over C$300 million, providing liquidity that can be deployed for future acquisitions and portfolio growth.

This uptick in nuclear energy development supports long-term demand for uranium, making URC’s position in the market increasingly attractive. As Scott Melbye, URC’s CEO, pointed out,

“The supply-demand fundamentals for uranium have never looked better.”

With 40 years of experience at industry giants such as Cameco, Uranium One, and Uranium Participation Corp., Melbye is well-versed in navigating the complexities of the uranium market.

URC’s management team is focused on the next wave of acquisitions, with a primary emphasis on securing new royalties and streams from mines in the United States, Canada, Australia, and Africa. With new mines coming online and the global nuclear expansion gaining momentum, URC is poised to capitalize on rising uranium demand.

As many of URC’s royalties and streams advance into cash-producing stages, the company anticipates a steady increase in cash flow, which could further enhance shareholder value.

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C H I N A S EC U R E S 5 M -TO N N E R A R E E A R T H S China recently discovered nearly 5 million tonnes of rare earth elements in Sichuan’s Liangshan Yi autonomous prefecture, bolstering its rare earth reserves amid rising global competition, particularly with the US. These elements are vital for technological advancements, including electric vehicles, wind turbines, and military applications. China, the world’s largest producer of rare earths, controls around 70% of global production.

The China Rare Earth Group, formed in 2021, emphasizes securing national interests by expanding resources, increasing reserves, and improving production. The discovery enhances China’s resource advantage in the global market, with experts calling for more focus on downstream industries and technological innovation. Despite a global supply increase, China’s rare earth dominance remains critical in the escalating tech rivalry between China and the US.

U.S. and China Intensify Critical Minerals Rivalry AS BIDEN ADMINISTRATION ANNOUNCES OVER $3B IN GRANTS FOR EV BATTERY PRODUCTION THIS FUNDING, PART OF A BROADER INITIATIVE TO REDUCE RELIANCE ON CHINA, will support 25 projects across 14 states, focusing on the domestic supply chain for critical minerals such as lithium, graphite, and rare earth elements (CMI Critical Minerals List).

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n a parallel move, China has introduced new restrictions on exports of key minerals, including antimony, which is used in defense applications such as night-vision goggles and nuclear weapons. These restrictions are expected to drive up prices and increase pressure on Western economies to diversify their mineral supply chains away from China.

U.S.-based companies like Perpetua Resources Corp. (NASDAQ: PPTA | TSX: PPTA) are ramping up efforts to produce antimony domestically in response to these supply concerns.

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Further to this morning’s highlights, the Critical Minerals Institute (CMI), which monitors the global media, notes that this week’s Technology Metals Report (TMR) story highlights include China’s discovery of nearly 5 million tonnes of rare earth elements in Sichuan’s Liangshan Yi autonomous prefecture, reinforcing its global dominance in the rare earth market.

China’s China Rare Earth Group, formed in 2021, is focusing on expanding resources, enhancing reserves, and

fostering innovation in downstream industries, solidifying its competitive advantage amid rising global rivalry with the U.S. Meanwhile, the Biden administration is close to approving Ioneer Ltd.’s lithium mine in Nevada, which could supply enough lithium for 370,000 EVs annually. This project is part of the U.S. strategy to reduce dependence on foreign critical minerals, especially from China, though environmental concerns about the endangered Tiehm’s buckwheat flower have raised challenges.

Germany is also advancing its raw materials autonomy with the opening of Europe’s first lithium refinery by AMG Critical Materials, set to produce battery-grade lithium hydroxide for around 500,000 EVs annually. This move aligns with the EU’s push for supply chain independence and complements Germany’s recent billion-euro pledge to support critical raw materials projects.

Additionally, Indonesia and Britain have signed a collaboration agreement on critical minerals, emphasizing sustainable practices in resource processing and supply chain resilience.

This partnership aims to strengthen their roles in the global supply chain, especially in sectors like nickel and EV battery production.

Saudi Arabia and the United Kingdom have committed to strengthening cooperation in the critical minerals sector, recognizing its growing importance for global energy transitions and advanced industries like aviation and electric vehicles.

Saudi Arabia’s Minister of Industry and Mineral Resources,

Bandar Alkhorayef, met with UK Minister for Business and Trade, Jonathan Reynolds, to discuss expanding collaboration, particularly in industrial and mining sectors.

The U.S. is investigating potential circumvention of its ban on Russian uranium imports through China. Following the December 2023 ban, China significantly increased uranium shipments to the U.S., raising concerns that China might be re-exporting Russian uranium, aiding Russia’s nuclear industry despite sanctions. U.S. officials are closely monitoring these imports to ensure compliance with the Prohibiting Russian Uranium Imports Act. The U.S. faces a significant challenge in securing rare earth elements, vital for defense and civilian sectors, due to its heavy reliance on China. A recent Government Accountability Office (GAO) report highlighted that over 95% of U.S. rare earth consumption is imported, with most coming from China. These materials, essential for military equipment such as fighter jets, missiles, and submarines, lack suitable substitutes.

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CPI DAT A AN D B RI CS GOL D S T R A T E G Y

Inflation Trends and the U.S. Debt Crisis 2024 A detailed analysis of 2024 inflation trends, U.S. debt crisis, August CPI data, and the rise of BRICS goldbacked currency strategy shaping the global economy.

This fall in energy prices comes against the backdrop of crude oil inventories at a five-year low, confounding expectations that tighter supply would fuel price hikes. However, inflationary pressure remains concentrated in the services sector, where shelter costs continue to rise above 5%. Vehicle prices have dropped, partly driven by a 21% increase in unsold inventories, but this relief is being offset by surging costs associated with insuring and maintaining those vehicles, both of which saw double-digit inflation increases.

Commodities and Food Inflation: Stabilizing but Still Pressured Food prices, which have been a focal point of inflation concerns, have shown signs of stabilizing. During earlier periods, 78% of tracked food items saw inflation rates exceeding 5% year-overyear, but recent data suggests that this inflationary pressure has eased. Despite the large harvests of commodities like grains and oilseeds, strong demand continues to support price floors, making further significant drops unlikely.

This stabilization in food prices reflects broader trends in commodity markets, where sharp price declines have been

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he August Consumer Price Index (CPI) report revealed a headline inflation rate of 2.5%, while core inflation—excluding volatile food and energy prices—ticked up to 3.2%. This slight but meaningful increase indicates that inflationary pressures remain strong, despite certain sectors experiencing price declines. A significant contributor to the inflationary trend has been the unexpected behavior of energy prices, which have continued to fall even

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The “ratchet effect” comes into play here—a concept in economics where each crisis leads to an increase in government intervention, pushing debt levels higher while interest rates ratchet down. as geopolitical tensions in the Middle East persist.

followed by periods of stabilization.

Although this offers some relief to consumers, strong demand—especially from global markets—could prevent a meaningful deflation in these categories, keeping upward pressure on overall inflation figures.

U.S. Debt Crisis 2024: A Growing Dilemma for Policymakers One of the most pressing concerns for the U.S. economy is the mounting national debt, which has escalated to unprecedented levels. U.S. government spending has ballooned to over $500 billion per month, while the annual deficit is expected to surpass $2 trillion this year. These figures, typically

associated with economic downturns, are being sustained in an otherwise stable economy, signaling deep structural challenges.

The dilemma for the Federal Reserve and other central banks lies in balancing inflation control with debt management. As government spending rises, the central banks face the difficult task of managing inflation without triggering a debt deflation spiral. In this environment, higher inflation might become an accepted reality as a means of managing the mounting debt burden.

The “ratchet effect” comes into play here—a concept in economics where each crisis leads to an increase in gov-

ernment intervention, pushing debt levels higher while interest rates ratchet down.

This effect has created a scenario in which interest rates fall more quickly during crises than they rise during recoveries, trapping policymakers in a cycle of low rates and high debt.

The Rise of BRICS and the Push for a Gold-Backed Currency On the international stage, the BRICS nations—Brazil, Russia, India, China, and South Africa—are gaining prominence, challenging Western economic dominance and potentially reshaping global currency dynamics. Recent re-

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ports indicate that Turkey, a NATO member, is exploring joining the BRICS bloc, further strengthening its global influence. One of the most significant developments in the BRICS nations’ strategy has been their move toward a currency that may be partially backed by gold. In the last 28 months, central banks in BRICS countries have collectively purchased over 4,000 tons of gold, while simultaneously divesting from U.S. Treasury securities to the tune of $800 billion. This shift signals a clear intent to reduce reliance on the U.S. dollar in international trade and finance.

If the BRICS currency gains widespread acceptance, it could trigger a bull market in gold, driven by increased demand for the yellow metal. Such a move would not only diminish the U.S. dollar’s global dominance but also introduce a new dynamic into global trade, with profound implications for commodities markets.

Consumer Debt: A Looming Economic Threat Domestically, the surge in consumer debt is raising alarms.

Revolving credit in the U.S. has increased by 9%, with credit card interest rates climbing to as high as 30%. Compounding this, consumer savings have plummeted from $6 trillion in 2019 to just $800 billion today, leaving many Americans increasingly dependent on high-interest debt to sustain their lifestyles.

What Is the Inflation for Each Year in the US? An average rate of inflation can be calculated for each year: YEAR

3.0

RATE OF INFLATION

2020

1.2%

2021

4.7%

2022

8.0%

2023

4.1%

The latest year-on-year inflation

% rate before seasonal adjustment as of June 2024.

The rising cost of living, coupled with stagnant real wage growth, is eroding consumers’ ability to manage their debt. Delinquencies are beginning to rise, and lenders are tightening their standards. These trends suggest that the U.S. consumer debt crisis is fast approaching a tipping point where many households could face unsustainable debt burdens.

Investment Implications: The Need for Diversification As the U.S. grapples with inflation, mounting debt, and a shifting global economic landscape, investors are being urged to reconsider their strategies. Relying solely on the stock market may no longer suffice. Commodities, bonds, and foreign currencies are gaining attention as potential hedges against inflation and volatility in traditional markets.

The rise of BRICS and the weakening of the U.S. dollar could further drive demand for gold and other tangible assets.

As central banks continue to stockpile gold, especially in BRICS-aligned nations, investors may find increased opportunities in precious metals markets.

Conclusion: Navigating an Uncertain Economic Future The current economic landscape is defined by persistent inflation, mounting debt, and significant shifts in global power dynamics. As the BRICS nations continue to challenge the status quo, and as the U.S. faces its own internal economic challenges, investors and policymakers alike will need to adapt. Gold and alternative assets are likely to play a central role in protecting wealth and maintaining stability in an increasingly uncertain world.

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Mining industry struggles with valuation gap Leading mining companies are struggling to balance investor expectations for hefty returns with paying the necessary premiums to buy pure play copper companies as global demand for the metal sends valuations soaring.

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ig diversified miners including Rio Tinto , BHP Group and Glencore, pressured by a slowdown in global economic growth and falling commodity prices, are watching rival copper producers gradually grow beyond their reach, with shares benefiting from the metal’s robust outlook.

While shares of Rio, BHP and Glencore have slumped between 10 per cent and 15pc this year, the valuations of pure play copper producers including Freeport-McMoRan, Ivanhoe Mines and Teck Resources have risen, even as benchmark copper prices retreated after hitting a record high above $11,000 per tonne in May this year.

“Engaging in large copper deals makes the boards (of directors) nervous when fluctuations in other commodities, like iron ore and coal, are likely to persist,” a banker, who has worked on several mining transactions, told Reuters.

“And since copper companies have performed better, diversified miners find it challenging to pay massive premiums when their share prices have dropped more in comparison,” the banker added.

BHP, Rio Tinto and Glencore trade at multiples of five to six times earnings, whereas Teck, Freeport, and Ivanhoe are at nearly double that, the banker said.

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Adina Lithium Project: A Capital-Efficient Leader in Lithium The Adina Lithium Project in Québec, backed by Lithium Royalty Corp., is set to become one of North America’s most cost-efficient and scalable lithium ventures.

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ithium Royalty Corp. (LRC) has announced a significant development for its portfolio with Winsome Resources Limited’s (ASX: WR1) completion of a scoping study for the Adina Lithium Project in Québec, Canada. The study highlights the Adina Project as one of North America’s most capital-efficient hard-rock lithium ventures, solidifying its future as a promising contributor to the lithium supply chain. This milestone comes at a critical time as global demand for lithium, a key component in battery technology, continues to surge.

Capital Efficiency and Strategic Infrastructure Leverage The Adina Project stands out due to its capital efficiency, largely thanks to Winsome Resources’ ability to repurpose existing infrastructure from the Renard mine, which was previously under insolvency. Winsome has secured an option to acquire and use Renard’s state-of-the-art facilities, allowing them to sidestep the significant construction costs associated with new greenfield development. As a result, the Adina Project’s start-up capital cost is pegged at just US$260 million, an exceptionally low figure for the industry.

“Repurposing the Renard mine infrastructure is a game-changer for Adina,” said Ernie Ortiz, CEO of LRC. “This move significantly reduces the initial financial burden and enhances the project’s competitiveness in a tightening lithium market.”

By leveraging existing infrastructure, the Adina Project is positioned to be one of the most attractive lithium projects in North America, particularly as demand for battery metals accelerates amid the global transition to electric vehicles.

Ghana Chamber of Mines CEO urges tighter regulation for small-scale mining success The small-scale mining sector plays a pivotal role in Ghana’s economy, contributing to job creation and economic development.

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he Ghana Chamber of Mines CEO, Sulemanu Koney, has stressed the urgent need for stricter regulation to ensure its long-term sustainability.

Koney emphasized the importance of a well-regulated environment that protects natural resources while supporting the growth of small-scale mining operations.

and Mining Act (703), which mandates licensing before any mining activity. He reiterated that while small-scale mining is a significant contributor to the economy, ensuring that all operations are legal is vital to curbing illegal mining, which has led to environmental degradation and resource loss.

Koney highlighted the crucial role of regulatory frameworks, particularly Ghana’s Constitution and the Minerals

“Mining is beneficial, but it must be done according to the law,” Koney stated. “Our Constitution and mining laws require

that no one mines without the proper licensing.” He further urged the government to take stronger measures in enforcing the laws to safeguard the future of the sector. Koney also addressed the need to make small-scale mining more accessible and appealing to Ghanaians.

He believes that if the government provides the right support, including financial incentives and regulatory clarity, more locals will be encouraged to venture into the sector legally.

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M I N I N G AU TO M AT I O N

Transforming the Future of the Mining Industry Mining automation is no longer a vision of the future—it is the present reality driving the industry toward greater efficiency, productivity, and safety. As companies like Rio Tinto, BHP, and Fortescue Metals continue to expand their automation initiatives, the global mining sector is poised for even more transformation.

However, the journey will not be without challenges, from workforce displacement to high capital costs.

Mining automation has emerged as a transformative force within the global mining sector, significantly improving operational efficiency, safety, and productivity.

From automated drilling systems to autonomous haul trucks, automation technologies are reshaping how

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mines operate, reducing costs and human error while increasing output.

However, the implementation of these technologies also presents challenges, such as capital expenditure and the displacement of labor.

IN A 2023 STUDY BY THE World Economic Forum, it was estimated that by 2030, automation could displace up to 25% of jobs in the mining sector.

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Growth of Automation in Mining Mining automation isn't a recent development; it has been gradually evolving over the past few decades. However, recent advancements in artificial intelligence (AI), robotics, and machine learning have accelerated its adoption across the industry.

For example, Rio Tinto's AutoHaul, the world’s largest autonomous rail network, has been a game-changer in the mining world. As of 2024, Rio Tinto reported that AutoHaul, which transports iron ore in Australia’s Pilbara region, has now completed over 10 million kilometers of autonomous travel. The system uses AI and data analytics to operate its trains remotely without human intervention, delivering efficiency improvements that reduce travel time and operational costs.

Meanwhile, BHP’s South Flank Project in Western Australia stands as another example of successful automation.

The mine, operational since 2021, uses an array of autonomous trucks, drills, and machinery. In 2023, BHP reported a 20% increase in efficiency at South Flank compared to traditional mining operations, driven by reduced human error and increased equipment uptime.

BHP's autonomous fleet is expected to expand as the company continues integrating automation across its iron ore, copper, and coal operations.

Autonomous Haulage Systems: The Backbone of Mining Automation

As of 2024, Komatsu’s AHS has been deployed in more than 20 mining operations globally. A recent report from Komatsu states that their autonomous trucks have collectively moved over 5 billion tons of material. Similarly, Caterpillar, another major player, has seen widespread use of its autonomous vehicles, particularly in North and South America. According to the company’s 2023 earnings report, autonomous trucks

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In the Copper Mountain Mine in Canada, AHS was implemented in 2023 as part of a broader digital transformation initiative. Early results showed a 15% increase in copper production, a significant achievement in an increasingly competitive global copper market. The mine’s general manager stated that autonomous vehicles reduced operational costs by $0.12 per ton of material moved, illustrating the financial benefits of automation.

The Role of Artificial Intelligence and Machine Learning

Mining automation also extends beyond physical machinery to centralized, remote operation centers (ROCs). These centers allow operators to control multiple mining assets from a safe, central location, often hundreds of kilometers away from the mine site. ROCs are part of the broader trend of digitizing and optimizing mine operations, reducing the need for on-site personnel, and improving safety.

Autonomous haulage systems (AHS) are the centerpiece of mining automation efforts, designed to enhance productivity and safety by removing human drivers from haul trucks. These systems enable mining companies to operate 24/7, reducing downtime and optimizing fuel consumption.

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operating at Caterpillar sites achieve a 30% increase in productivity compared to manually operated equipment.

AI and machine learning (ML) are playing increasingly critical roles in mining automation, helping mining companies optimize their operations. AI is used to analyze vast amounts of data generated from automated equipment, helping identify inefficiencies, predict maintenance needs, and optimize processes.

For instance, Anglo American's Mogalakwena Platinum Mine in South Africa has integrated AI and ML into its operations. In 2023, Anglo American launched an AI-driven predictive maintenance system that helped reduce unscheduled downtime by 25%. The system predicts equipment failures and automatically schedules maintenance, avoiding costly breakdowns.

Sandvik and Epiroc, two leading equipment manufacturers, have also made strides in using AI to optimize drilling operations. Sandvik’s AutoMine system allows mines to automate their entire fleet of underground loaders and trucks, enhancing productivity by up to 40%. As of 2024, Sandvik reported that AutoMine has been deployed in over 70 sites globally, and its automation platforms are key drivers of innovation in underground mining.

The Rise of Remote Operation Centers Mining automation also extends beyond physical machinery to centralized, remote operation centers (ROCs). These centers allow operators to control multiple mining assets from a safe, central location, often hundreds of kilometers

away from the mine site. ROCs are part of the broader trend of digitizing and optimizing mine operations, reducing the need for on-site personnel, and improving safety.

Fortescue Metals Group (FMG) is a leader in remote operations. Its Integrated Operations Center in Perth, Australia, controls iron ore mines located 1,500 kilometers away in the Pilbara region. FMG reported in 2023 that this approach improved decision-making speed, cut operational costs, and led to an overall productivity gain of 15%. The company's CEO noted that remote operations, combined with autonomous equipment, are critical to maintaining competitive advantage in the global iron ore market.

OPTIMIZING OPERATIONS

Machine learning algorithms are being used to analyze vast amounts of data from mining operations to optimize processes and improve efficiency: Predictive Maintenance: ML models can predict equipment failures before they occur by analyzing sensor data from mining machinery. This allows for proactive maintenance, reducing downtime and extending the lifespan of expensive equipment.

Over 250 mines now employ AI-driven predictive maintenance tools, significantly reducing downtime and enhancing operational efficiency.

Resource Allocation: ML algorithms analyze geological data and ore quality in real-time, enabling more precise targeting of extraction sites. This minimizes waste and maximizes resource utilization.

Process Optimization: Advanced analytics powered by machine learning can slash operational costs by up to 20% while boosting throughput by 6%.

ENHANCING SAFETY

Challenges and Concerns Despite the many advantages, automation in mining presents several challenges. One of the most pressing issues is the displacement of workers. As more mines turn to automation, the demand for manual labor decreases.

In a 2023 study by the World Economic Forum, it was estimated that by 2030, automation could displace up to 25% of jobs in the mining sector. To counter this, companies like BHP and Rio Tinto are investing in upskilling programs to train their workforce in digital and technical roles, ensuring that employees can transition to new jobs created by the automation revolution.

Capital expenditure is another challenge, as the initial costs of implementing automation technology are high. However, companies that have invested in these technologies report a relatively quick return on investment due to enhanced operational efficiencies and lower long-term costs. Gold Fields, which introduced autonomous loaders at its St. Ives mine in 2022, reported a full return on its $50 million investment within three years, primarily due to improved productivity and reduced operational costs.

Safety is paramount in mining, and machine learning is contributing significantly to creating safer working environments: Hazard Identification: ML models can analyze data from various sources to identify potential safety hazards before they become critical issues.

Environmental Monitoring: Machine learning algorithms process data from sensors to monitor air quality, seismic activity, and other environmental factors in real-time, ensuring safer working conditions.

AUTONOMOUS SYSTEMS

Machine learning is at the heart of autonomous mining systems: Autonomous Vehicles: The autonomous mining truck market is projected to reach $6.8 million by 2030. These vehicles operate 24/7, optimizing haulage and reducing fuel consumption.

Robotic Systems: Over 100 robotic inspection units have been deployed to conduct equipment checks in confined spaces, improving safety and accuracy.

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The Future of Mining Automation Another key trend is the growing focus on sustainability. Automation has the potential to reduce mining’s environmental footprint by optimizing resource use and reducing emissions.

Autonomous trucks use 10-20% less fuel than manually operated ones, and automated systems can optimize water and electricity usage, key factors for improving sustainability in mining.

Machine learning is playing a crucial role in advancing mining automation, revolutionizing various aspects of the industry.

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s the mining industry moves toward a fully automated future, the focus will likely shift toward increasing interoperability between different automated systems. Many companies are already exploring how to integrate robotics, AI, and autonomous equipment into a seamless ecosystem.

For example, Vale, a Brazilian mining giant, is working on developing an "autonomous mine" concept, where all equipment, from drills to haul trucks, operates autonomously in harmony. Vale expects to launch its first fully autonomous mine by 2027.

EXPLORATION AND PROSPECTING

DATA-DRIVEN DECISION MAKING

ENVIRONMENTAL MANAGEMENT

Machine learning is transforming how mining companies identify potential mineral deposits:

Machine learning is enabling more informed decision-making across mining operations:

Machine learning is helping mining companies improve their environmental stewardship:

AI-driven Prospecting: ML algorithms analyze satellite imagery and geological data to identify formations likely to host mineral deposits, streamlining prospecting efforts and improving resource discovery.

Real-time Analytics: ML-powered systems process data from various sources (sensors, equipment, geological surveys) to provide real-time insights for operational decisions[2].

Energy Optimization: ML algorithms analyze operational data to optimize energy consumption, reducing both costs and environmental impact.

Ore Grade Prediction: Machine learning models can predict ore grades more accurately, reducing the need for extensive exploratory drilling and improving the efficiency of extraction planning.

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Machine learning is transforming mining automation by enhancing efficiency, safety, and sustainability across all aspects of mining operations.

Skillings.net | October 2024

Risk Assessment: Machine learning algorithms can assess and predict various risks, from financial to operational, helping mining companies make more informed strategic decisions.

As the technology continues to advance, we can expect even more innovative applications in the future, further revolutionizing the mining industry.

Water Management: Machine learning models can predict water usage and optimize water recycling processes, crucial for sustainable mining practices.

MINE WASTE MANAGEMENT

Mine Waste Management Tech Promises Safer, Greener Mining IN A RECENT ARTICLE PUBLISHED IN THE journal Technologies, researchers developed new techniques to enhance the safety and sustainability of mine waste management.

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he project focuses on using advanced technologies, such as drones and ground sensors, to monitor mine sites more effectively. The research seeks to apply electromagnetic measurement technologies to mining, already successfully used in agriculture.

ing activities and, consequently, more waste. Integrating geochemical data from mine waste with electromagnetic measurements offers the potential for more accurate, real-time monitoring of soil, water, and rock conditions at mine sites.

Effective mine waste management is one of the most significant environmental challenges facing the mining industry today. As global demand for minerals like nickel, copper, and cobalt grows due to their use in renewable energy technologies, the volume of mining waste is expected to increase substantially.

The article covers the core theoretical aspects of 3D sensing, point cloud processing, Bird’s Eye View (BEV) imaging, and the YOLO v8 algorithm. LiDAR, 3D Time-of-Flight (ToF), and stereo cameras are commonly used for 3D perception, as they effectively capture high-resolution data in complex environments.

The Current Study

Point clouds represent 3D spatial data as sets of points, each with coordinates (X, Y, Z) and attributes like color or segmentation ID. These unorganized point clouds pose difficulties in processing, but common techniques like downsampling, registration, and Random Sample Consensus (RANSAC) are used to manage these issues.

Point cloud registration is essential for reconstructing 3D objects from different viewpoints. The Iterative Closest Point (ICP) algorithm is often used for alignment. RANSAC, an algorithm for robust model estimation, identifies and utilizes inliers while ignoring outliers, ensuring reliable results even with noisy data.

Source: Kern J., Rodriguez-Guillen R., et al. (2024). Read the full text at: https://www.mdpi.com/22277080/12/9/162

Current monitoring techniques, such as drilling, are costly and often produce unreliable data, making it difficult to manage waste effectively and ensure the safety of mining operations. By providing more precise and cost-effective monitoring, these techniques could play a critical role in improving mine site safety, environmental protection, and land rehabilitation.

The need for these advancements is increasingly urgent as global demand for critical minerals continues to rise, contributing to more extensive min-

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Bastion Minerals to Explore Large Mineralized Quartz Vein at Mariner Bastion Minerals Ltd (ASX: BMO) has appointed Aurora Geoscience to prepare an exploration programme to follow up and gain a better understanding of a large mineralized quartz vein and the overall potential of the Mariner project.

COMMENTING ON THE REVIEW OF THE MARINER project, executive chairman, Mr. Ross Landles, said, “With the advanced ICE project located in the Yukon, which has a historical foreign non-JORC resource defined, being a strong focus for the company, I am thrilled with the increased potential of the Mariner project to host a high-grade copper deposit based on historical data.”

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he recently acquired Mariner Copper project is a single 155km2 claim located near Great Bear Lake in the eastern Northwest Territories (NWT), Canada, where copper and uranium mineralization has previously been mined.

The project is completely surrounded

by White Cliff Minerals Ltd (ASX: WCN) Port Radium project, along the strike of NE trending faults.

With no additional exploration conducted on this quartz vein, according to government records, this is a priority follow up target to expand upon the historical high-grade drilling conducted

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by Mariner Mines Ltd, that intersected grades up to 18.4% Cu. Drilling at Mariner intersected copper as chalcopyrite and bornite in quartz cemented breccia in a porphyritic unit, extending for over 500m and open to the east and west.

In addition to the shallow high-grade mineralization encountered in zones A and B, a zinc, lead, and copper bearing zone was discovered in Zone C, open in all directions.

Mr. Landles continued, “We look forward to engaging with the First Nations and to Aurora defining a work plan for this heavily under explored property and note the results are not known to have been followed up since the original drilling, presenting an extremely exciting opportunity for Bastion.”

Wärtsilä engines to ensure production reliability for Senegal gold mine Technology group Wärtsilä will supply the engines and auxiliary equipment for a power plant being installed at the Boto gold mine in Senegal.

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he order, which was booked by Wärtsilä in Q1 2024, has been placed by Africa Power Services (APS), the France based main contractor for the engineering, procurement and construction of the power plant. The mine has been recently acquired by Managem, an international mining group with operations in eight countries across Africa.

“The mine is remotely located and has no connection to the grid. This power plant is therefore crucial for its operations, and we needed to find a partner capable of providing reliable supply of electricity.

Wärtsilä’s track record is outstanding and they were offering the best equipment and best delivery times for this fast-track project,” said Romain Darracq, Head of Sales Support at APS. “The configuration provides good flexibility and optimal performance of the power plant under varied load demands.

Wärtsilä has a strong presence in Africa with its regional setup in Dakar effectively supporting the customers’ operations throughout the lifecycle of their power plants,” commented Sameer Poredi, Business Development Manager, Lifecycle at Wärtsilä Energy.

The Wärtsilä 32 engine generating set has established a reputation for reliability during 30 years of successful operations, delivering more than 8,000 MW of energy to customers around the world.

Pan African cracks US index after Van Eck takes 5.9% stake PAN AFRICAN RESOURCES HAS BEEN included in the influential GDX Index for the first time after New York fund manager Van Eck took a 5.9% stake in the gold miner.

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t’s been a long time trying but now we are getting recognition for our numbers, eventually,” said Hethen Hira, head of investor relations for Pan African.

“We are now getting the recognition for our production growth, market cap and liquidity.”

Shares in Pan African have increased 118% over 12 months partly owing to an improvement in the rand gold price – up 27% over the same period – as well as the prospect of increased production.

Pan African will commission its R2.4bn Mintails gold remining project next month. Situated on the West Rand, near Krugersdorp, the project will add up to 60,000 ounces in gold production, a one third increase on output in the firm’s 12 months ended June when fully commissioned. This will be done at an all in sustaining cost of about $1,000/oz.

200,000 oz. Production in the 2023 financial year was 186,039 (2023: 175,209 oz).

Van Eck bought 113 million shares owing to Pan African’s improved liquidity and because the company had market value of more than $700m. Pan African joins rivals Harmony Gold and DRDGold on the index.

A risk to Pan African’s production target for this year is a possible delay in the commissioning of another project, the Evander Mines’ subvertical hoisting shaft.

The issues at Evander Mines could potentially hurt 2025’s production guidance by about 5,000 oz but possibly itself offset by vamping operations at Evander and the earlier production from Mintails.

During the 2024 financial year, net debt ballooned to $106.4m – an increase of $84m year-on-year mostly as a result of the cost of building Mintails.

Despite the pressure Pan African declared a 1.2 US cents per share final dividend. A final dividend of 0.96 US cents/ share was paid for the 2023 financial year. The company said it ought to be net cash by 2026.

The miner also said it had extended its Barberton Tailings Retreatment Plant’s life of mine to seven years from the previous two-year target. The increase in life for BTRP’s was after the group reassessed its feedstock sources.

Pan African has guided to an increase in gold production of up to 21% in the current financial year, equal to between 215,000 and 225,000 ounces. If achieved this would exceed the firm’s previous production record in 2022 of just over

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SKILLINGS MINING

INDUSTRY DIALOGUE Piyush Srivastava

S K I L L I N G S R O U N D TA B L E Q & A D I S C U S S I O N

CHIEF OF THE NATURAL RESOURCE DIVISION AT TATA STEEL, JAMSHEDPUR, JHARKHAND, INDIA Piyush Srivastava has over 35 years of experience in mining operations, both in opencast and underground coal mines, with expertise in greenfield mining projects, mine planning, and land acquisition. Since June 2019, he has served as Chief of the Natural Resource Division at Tata Steel, Jamshedpur, overseeing raw material security, consultancy services, and digital mine mapping.

Gary Rivenes LEADER – OPERATIONS EXECUTIVE, INDEPENDENT AND LEADERSHIP CONSULTANT WITH BALMERT CONSULTING, GILLETTE, WYOMING, UNITED STATES LEADER - Experienced Operations Executive with a demonstrated history of safely working in the Mining & Metals industry.

Skilled in Leadership, Cost Management (P&L), Financial Analysis, Procurement, Environment, Health, and Safety (EHS), Asset and Capital Management, Business Process Improvement, Risk Management, IS&T, Public Company and BOD Processes, Talent Management and Technical Services.

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Interview with Industry Leaders

A Discussion on Leadership, Work-Life Balance, & Environmental Responsibility

Interview/Discussion with Two Experienced Mining Professionals: Piyush Srivastava & Gary Rivenes.

In the dynamic and challenging world of mining, experience and innovation are key to navigating the complexities of the industry.

Today, we have the privilege of speaking with two esteemed professionals who have made significant contributions to the field: The panel consisted of Piyush Srivastava, Chief of the Natural Resource Division at Tata Steel, and Gary Rivenes- Leader, Operations Executive, Independent and Leadership Consultant with Balmert Consulting Gillette, Wyoming, United States.

Both share their career insights, the importance of leadership, and their visions for the future of mining. This interview delves into their professional journeys, highlighting the critical role of technology, the necessity of continuous learning, and the steps needed to enhance the industry's sustainability and public perception.

How important have leadership skills been in your career?

Gary Rivenes: Leadership stands out as a key component for success. I believe a significant portion of productivity can be attributed to effective leadership.

Piyush Srivastava: Leadership skills are as important as technical skills. They not only help in climbing the career ladder but also make one more effective in any role. Leadership involves humility, courage, discipline, and the ability to delve deep into issues when necessary.

Did your formal education narrow or widen your career preparation?

Piyush Srivastava: It definitely widened my career preparation. The diverse knowledge gained through formal education has been crucial in tackling various challenges in the mining sector.

Gary Rivenes: Formal education opened numerous mental doors for me, broadening my perspective and equipping me with the critical thinking skills to approach problems creatively.

It laid the foundation for both my personal and professional growth.

Are job goals more defined now or when you first started in the industry?

Piyush Srivastava: Job goals were defined both then and now. However, current goals are broader and more holistic, considering the advancements in technology and changing regulatory frameworks.

Gary Rivenes: My job goals have remained consistent throughout my career, with promotions always tied to performance. Commitment has been the universal tool for successful management, and I believe it's essential for success.

Do you feel it is important for new employees to fit into the company culture? Should the promotion of managers be based on technical rather than managerial skills?

Piyush Srivastava: Very much so. Fitting into the company culture ensures a smoother integration into the team and alignment with the company’s values and goals.

Both technical and managerial skills are important for promotion of managers. A balance of technical expertise and managerial skills ensures that managers can lead effectively while understanding the technical aspects of the work.

Gary Rivenes: I've always advocated for a balance between technical and managerial skills in my career. My job goals have stayed consistent, with promotions based solely on performance. At the core of my approach is a focus on both customer and supplier satisfaction, which I believe is the key to driving profit and long-term success.

How important is a life/work balance at this career stage?

Piyush Srivastava: Extremely important. Maintaining a healthy balance helps in managing stress and enhances overall productivity and job satisfaction.

Gary Rivenes: I can't stress enough the importance of getting the balance between technical and managerial skills right.

Maintaining a healthy balance not only helps in managing stress but also enhances overall productivity and job satisfaction. When you get that balance right, everything—from decision-making to team dynamics—improves, leading to a more fulfilling and successful career.

In the intricate world of the mining industry, voices from the ground highlight the universal importance of leadership, the intertwining relationship between formal education and hands-on experience, the multifaceted nature of commitment, and the labyrinth of career progression.

Gary Rivenes and Piyush Srivastava, each coming from distinct academic backgrounds, bring to light an intriguing balance between theoretical and practical realms. For Gary, academia acts as a catalyst, unlocking mental doors, while Piyush’s trajectory showcases the undeniable power of experience. This duality raises an essential question: In a rapidly evolving industry, what holds more weight – the grounded realities of experience or the expansive knowledge from formal education?

The theme of commitment, woven through their narratives, reveals itself to be more than just work dedication.

Instead, it emerges as a bridge between staff, management, values, and personal growth. This commitment takes on different hues, from streamlining operations to fostering trust and human relationships, reflecting the industry’s intricate fabric.

The path to career progression and managerial promotions, as painted by our experts, isn’t linear. While meritocracy plays a role, adaptability, intuition, and a keen understanding of human dynamics often tip the scales. Promotions, in this light, transform from mere upward movement to a complex dance of technical skills, interpersonal aptitude, reliability, and credibility.]

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 Advanced Processing Technologies Reshape Recovery, Quality, and Sustainability in the Modern Mining Landscape

Revolutionizing

Iron Ore

The global shift towards more environmentally friendly manufacturing techniques by steelmakers is causing upheaval in the iron ore business.

Due to the increasing demand for goods made from higher-grade iron ore, producers are upgrading their facilities and investing in cutting-edge processing technology.

Cutting-Edge Processing Innovations In response to the changing demands of the market, iron ore producers seek to adopt a variety of cutting-edge processing technologies: Gravity Separation: The use of hydrocyclone technology is effectively addressing the removal of clay and other impurities via gravity separation, thereby optimizing the ore for subsequent processing stages.

Innovative equipment design provides scrubbing capabilities and enhanced wear resistance for handling abrasive materials. Recent advancements in screening technology have significantly enhanced efficiency and boosted

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plant productivity. Roller screens have demonstrated a notable 25% enhancement in screening efficiency over vibrating screens, all while significantly reducing pellet damage.

Modular Solutions: Firms are providing modular equipment tailored for the processing of low-grade iron ore. The adaptability of these solutions allows for straightforward upgrades or relocations in response to evolving production needs, offering miners essential flexibility.

methods are emerging to enhance the efficiency of low and lean-grade iron ores, aiming to minimize waste and optimize resource use. Moreover, there is an increasing focus on advancing sustainable and environmentally friendly methods in the extraction of magnetite ores.

International Market Trends

Tackling Environmental Issues

The dynamics of the iron ore market are intricately linked to the demand for steel, especially in China. Wood Mackenzie's Q1 2024 forecast suggests a modest easing of market conditions in 2024, projecting that prices for 62% Fe fines CFR China will average approximately US$110/t in 2024 and US$100/t in 2025.

The iron ore sector is increasingly prioritizing the minimization of its environmental impact. Innovative processing

Nonetheless, the overarching trajectory suggests a decline in prices over the

AS THE SECTOR NAVIGATES THESE challenges, advancements in processing technologies will be crucial in defining its future landscape.

The Drive for Increased Iron Content Conventional blast furnaces, responsible for the bulk of iron ore consumption, are slowly being replaced by more sustainable technologies. Direct reduction iron (DRI) plants are increasingly becoming prominent, thanks to their enhanced energy efficiency and diminished environmental footprint.

Iron Ore Processing: Adjusting to Market Dynamics Steel producers across the globe are pivoting toward more sustainable manufacturing practices. The shift is fueling a surge in demand for premium iron ore products, leading producers to channel investments into cutting-edge processing technologies and enhance their operational capabilities.

Nonetheless, DRI processes necessitate iron ore that boasts elevated iron (Fe) content and diminished impurity levels, which creates a landscape of both challenges and opportunities for those in the mining sector. The sector is addressing this demand by emphasizing beneficiation methods to enhance the iron content of their offerings. CDE Group, a prominent player in equipment manufacturing, has pioneered iron ore beneficiation projects that have effectively elevated Fe content from 43% in the feed to more than 60% in the final product.

This notable advancement guarantees enhanced efficiencies in steel production for their clientele.

coming five years, influenced by alleviating supply limitations and a cooling in demand from China. This perspective highlights the necessity for iron ore producers to prioritize efficiency and product quality in order to sustain their competitive edge.

est in magnetite projects, even though these have faced historically difficult development challenges. Producers capable of efficiently providing high-quality, low-impurity iron ore products are poised to secure a competitive advantage in this changing landscape.

Prospective Vision

Innovative Screening Technologies Transform Iron Ore Pellet Quality

With the steel sector moving towards more sustainable production techniques, iron ore processors must swiftly adjust to these changes. Investing in research and development, especially in beneficiation methods for low-grade ores and those linked with clay minerals, will be essential.

The movement towards higher-grade products is likely to spark greater inter-

The implementation of innovative screening technologies, especially roller screens, is revolutionizing the production of iron ore pellets. Through notable advancements in pellet quality, increased plant efficiency, and a commitment to sustainable practices, these innovations are establishing new benchmarks within the sector. Iron ore

producers are under increasing pressure to provide superior products while reducing their environmental footprint.

In this context, the emergence of advanced screening technologies is set to significantly influence the evolution of iron ore processing.

In the dynamic realm of iron ore processing, the latest innovations in screening technologies are creating notable impacts, especially in the manufacturing of premium iron ore pellets.

The advancements in this sector are significantly boosting pellet quality while simultaneously elevating plant productivity and promoting better environmental outcomes.

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The Emergence of Roller Screens The technological landscape is witnessing a significant shift with the increasing implementation of roller screens, which are swiftly taking the place of conventional vibrating screens in numerous iron ore pelletizing processes. The ramifications of this transition have been significant, with research indicating an impressive boost in screening efficiency when employing roller screens over vibrating ones.

The primary benefits of roller screens are found in their capacity to deliver: Exceptional Size Distribution: Roller screens are highly effective in distinguishing between undersized (<8mm) and oversized (>16mm) pellets, leading to a more consistent pellet size distribution.

Reduced Pellet Damage: The careful management of pellets through roller screens leads to a notable decrease in damage throughout the screening process, ensuring the preservation of pellet quality.

Improved Bed Permeability: The refined size consistency of pellets processed through roller technology results in enhanced permeability within induration furnaces, thereby optimizing the firing process.

Enhanced Consistency in Pellets The enhanced consistency in pellet size distribution obtained via roller screening directly contributes to better pellet bed permeability within induration furnaces. This improvement facilitates superior gas flow through the pellets during the firing process, which in turn decreases fuel consumption and enhances the quality and consistency of the hardened pellets.

Enhanced Operational Efficiency Reducing the recirculating load of out-of-spec pellets returned to balling circuits is a key function of roller screens, enhancing the overall efficiency of the plant. The enhanced uniformity of pellets fed into the induration furnace significantly boosts production capabilities in pelletizing facilities.

Advantages for Energy and the Environment Enhancing pellet sizing via sophisticated screening techniques yields significant downstream advantages, particularly in the improved efficiency of hot gas combustion within induration furnaces. This approach not only cuts down on energy use but also lessens dust production during the firing process, leading to more sustainable practices in operations.

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Flexibility in Handling Various Mineral Types The adaptability of new screening technologies to various ore types and qualities stands out as one of their most notable benefits. By integrating advanced testing and simulation capabilities, these screening systems enable producers to enhance their processes for different iron ore sources.

The adaptability of these plants allows for the production of various pellet grades, including those suitable for blast furnaces and direct reduction, all within one facility.

Anticipating Future Developments The iron and steel sector is increasingly advocating for enhanced efficiency and sustainable production techniques, suggesting that the significance of advanced screening technologies in pellet production will likely expand. Enhancing the production of higher quality pellets with improved consistency not only boosts the efficiency of subsequent processes but also plays a vital role in advancing the sustainability of the iron ore value chain.

Experts in the field foresee ongoing advancements in screening technology, emphasizing the importance of real-time quality control and adaptable screening parameters. The latest advancements are set to significantly improve pellet quality, lower energy usage, and decrease environmental repercussions.

Miners prefer Canada to overseas: KPMG CANADA’S INCREASED GOVERNMENT funding and protectionism are boosting outlooks compared with rising geopolitical risks in foreign countries, according to a new KPMG survey of industry executives.

“It weaves together so many elements that relate directly to public perceptions of mining – regulatory requirements, governmental relations, human rights and Indigenous communities.”

Rising risks include cyber attacks, and regulatory reporting when environmental, social and governance (ESG) standards aren’t uniform across the industry, respondents said. ESG initiatives are mainly driven by compliance or contractual obligations as opposed to meeting the core expectation of stakeholders and building trust, 61% said. Only 53% said their company has a well-defined ESG strategy with enough resources.

Permits process

N

early 80% of mining executives are optimistic about the wider industry’s five-year growth prospects, up sharply from 62% in KPMG’s last global survey in 2022, the business consultancy said on Thursday. The risk of operating in foreign countries is increasing, 78% said.

“The picture is of a confident industry who are used to navigating the challenges,” Heather Cheeseman, KPMG’s Canada mining leader, said in the report. “Especially among critical minerals businesses, this confidence may have been boosted by the Canadian government’s increasingly protectionist stance in terms of foreign takeovers.”

Community relations, commodity prices, access to capital and the permitting process remain among the top concerns of executives, the consultancy found.

During July and August, it surveyed 100 companies valued from $100 million to

Also, 90% said the industry and governments must work more closely to align and streamline permitting processes.

And Katherine Wetmore, a partner and GTA mining leader for KPMG, said the government’s protectionist stance on foreign takeovers garners a mixed reaction. more than $10 billion. They included operators, exploration and development companies, mining service providers, and mine finance companies.

Most were in Canada and more than half were in precious metals.

Geopolitics “Geopolitical uncertainty has become more acute in recent times given various trade tensions, regional conflicts and a spate of political elections around the world, all of which have the potential to impact the value chain in various ways,” KPMG says.

The social licence to operate in a community is regarded as an important nearterm and long-term risk to operations, according to the report. “License to operate is key for the mining industry,” Kim Swanzey, national sustainable supply chain leader at KPMG, said in the report.

Some in the industry have said it cuts off Chinese investment for junior mining companies when they find it hard to raise funds on stock markets. Others say it strengthens Canada’s security by increasing its ability to meet rising demand for metals.

The difficulty in gaining access to capital can be pinned to increasing stakeholder expectations to spend money on ESG and low carbon solutions, declining ore grades, growing community expectations, and stricter regulations, KPMG said.

Nearly half (46%) of mining leaders said mergers and acquisitions are critical for their growth, although they are increasingly looking to establish strategic alliances, joint ventures, and partnerships to tap new technologies, innovations and experts.

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DATA- D R I V E N H AU L I N G

Optimizing Load & Haul with Digital Technologies The future of mining load and haul operations is rapidly evolving, with technology playing a key role in enhancing productivity, safety, and sustainability.

The shift towards automation, electrification, and digitalization is being driven by industry-wide commitments to reduce environmental impacts and improve efficiency.

C

urrent partnerships, government policies, and recent technological innovations are confirming that load and haul systems will continue to transform, ultimately leading to a greener and safer mining industry.

The load and haul sector’s future success hinges on how quickly companies can adapt to these new technologies while addressing the challenges of cost, training, and infrastructure. As the demand for minerals grows in the global transition to clean energy, mining companies that prioritize innovation in their load and haul operations will be better positioned for long-term success.

Mining load and haul operations represent a critical component of any mining operation, directly impacting productivity, efficiency, and costs. The landscape of mining load and haul systems has experienced significant technological advancements in recent years. These

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Skillings.net | October 2024

developments include automation, electrification, and sustainability initiatives, aimed at enhancing efficiency while reducing environmental impacts.

In this in-depth review, we explore the latest trends and technologies shaping mining load and haul processes, supported by verified events and industry shifts.

Automation Revolution: Enhancing Efficiency and Safety One of the most significant changes in mining load and haul operations has been the adoption of automation technologies.

Leading mining companies such as Rio Tinto and BHP have implemented fully autonomous haul trucks across their operations, particularly in the Pilbara region of Western Australia. The use of autonomous trucks has been proven to reduce operational costs and improve safety by eliminating human error. In a

report published by Rio Tinto, the company confirmed that its autonomous fleet achieved a 15% increase in productivity compared to manually operated trucks.

This success has driven a broader industry trend, with companies like Caterpillar and Komatsu advancing their autonomous vehicle technologies.

Recent trials of Komatsu’s Autonomous Haulage System (AHS) at various sites have demonstrated an increase in operational efficiency, reducing downtime and improving fuel management. Verified data from these trials shows a significant decrease in wear and tear on vehicles, contributing to long-term cost savings.

Electrification: Cutting Emissions in Load and Haul Operations In tandem with automation, the electrification of mining fleets is becoming a priority as mining companies strive to meet sustainability goals. Load and

Digitalization and Fleet Optimization Digitalization is playing a vital role in optimizing load and haul operations.

Advanced data analytics and fleet management systems allow companies to monitor performance in real time, optimize routes, and minimize fuel consumption. Fleet optimization systems, such as those provided by Sandvik and Hitachi Construction Machinery, enable operators to make data-driven decisions, improving overall efficiency.

haul fleets are significant contributors to carbon emissions in mining operations, prompting companies to seek electric alternatives. Anglo American’s "nuGen™" hydrogen-powered mining haul truck, launched in 2022 at its Mogalakwena platinum mine in South Africa, is the largest zero-emission truck of its kind.

In a verified case study at a gold mine in Western Australia, the implementation of a real-time fleet management system resulted in a 20% increase in haulage capacity and a 10% reduction in fuel costs.

These systems collect data from vehicles, track machine health, and predict maintenance needs, preventing costly downtime. These innovations are proving essential in maximizing productivity, particularly in remote mining operations where logistical challenges often hinder performance.

Safety and Workforce Implications With the rise of automation and remote operation capabilities, the traditional

role of human workers in mining load and haul operations is evolving. While there are concerns about job displacement, many companies are actively retraining workers to oversee and maintain automated systems. Rio Tinto, for example, has invested heavily in training programs designed to upskill employees, shifting them into new roles as remote operators or maintenance technicians for autonomous equipment.

On the safety front, automated systems have already shown promise in reducing accidents. The Australian Government’s Safe Work Australia agency released data indicating that autonomous haul systems reduce vehicle-related fatalities by nearly 50%. These safety improvements have sparked interest across the industry, with several mining jurisdictions now mandating stricter safety protocols for load and haul operations involving human workers.

Sustainability and Environmental Impact Beyond carbon reduction, mining companies are also focusing on minimizing the environmental impact of their load and haul operations through the use of renewable energy sources. A recent

The truck, which replaces a traditional diesel engine with a hydrogen fuel cell, is part of Anglo American’s commitment to achieve carbon neutrality by 2040.

Other mining giants such as Glencore and Vale have also announced significant investments in electrification.

Vale has initiated pilot projects to replace its diesel haul trucks with electric ones at its iron ore mines in Brazil, targeting a 33% reduction in carbon emissions by 2035. These moves align with broader industry goals and governmental regulations that emphasize decarbonization in mining operations.

Anglo American’s "nuGen™" hydrogen-powered mining haul truck

37

report by the International Council on Mining and Metals (ICMM) highlights how companies are using solar and wind power to support mining fleets.

For instance, BHP’s Olympic Dam mine in South Australia has integrated renewable energy into its operations, significantly cutting emissions associated with its haulage fleets.

In Canada, Teck Resources has committed to reducing its carbon intensity by 33% by 2030, with an emphasis on electrifying its haul trucks and incorporating renewable energy. Confirmed partnerships between Teck and electric vehicle manufacturers highlight the industry's move towards greener technologies.

Current Events and Industry Partnerships Recent collaborations between mining companies and equipment manufacturers have accelerated the deployment of new technologies. For example, Komatsu’s recent partnership with Anglo American focuses on advancing the development of zero-emission haul trucks, which is expected to be a game-changer for the industry. Meanwhile, Sandvik and Epiroc have been working with major miners to deliver battery-electric loaders and trucks to reduce reliance on diesel-powered fleets.

In June 2024, Caterpillar announced its next-generation electric-drive haul trucks, which are set to be trialed at a copper mine in Chile. This move coincides with Chile's growing regulatory push for sustainable mining practices, particularly in light of the country’s prominence in the global copper supply chain.

Autonomous Haulage Milestones Alongside electrification, autonomous haulage continues to make significant

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Skillings.net | October 2024

progress. Caterpillar recently announced that its autonomous trucks equipped with Cat MineStar Command for hauling have moved over 5 billion tonnes of material. This milestone underscores the growing acceptance and reliability of autonomous systems in mining operations.

Addressing Industry Challenges The mining industry faces several challenges as it embraces these new technologies. Rising production costs, which have increased by nearly 30% over the past five years, are driving the need for more efficient and cost-effective solutions. Additionally, the industry must contend with declining ore grades, more dispersed reserves, and a shortage of skilled workers capable of operating and maintaining advanced equipment.

Productivity Through Technology To address these challenges, mining companies are increasingly turning to technology. BHP, for example, has partnered with Microsoft to use real-time data and AI recommendations to optimize ore processing and grade recovery at its Escondida copper mine in Chile. Similarly, Freeport-McMoRan is investing in artificial intelligence and data analytics to maximize copper extraction across its operations.

Environmental Considerations As the industry moves towards electrification and automation, environmental concerns remain at the forefront. A recent study highlighted the potential impact of mining activities on great ape populations in Africa, emphasizing the need for responsible resource extraction.

This underscores the importance of balancing technological advancements with environmental stewardship.

The Rise of Battery-Electric Vehicles Sandvik, a leading mining equipment manufacturer, has reported impressive gains in the adoption of battery-electric vehicles (BEVs) for load and haul operations. In 2023, BEVs accounted for 15% of all load and haul orders, with Sandvik capturing over 75% of the market share for battery-electric equipment orders between January and October.

This surge in demand reflects the industry's growing commitment to reducing emissions and improving operational efficiency.

Hybrid Solutions Bridge the Gap While fully electric solutions are gaining traction, many mining operations are not yet ready for a complete transition.

Recognizing this, manufacturers are developing hybrid options to bridge the gap. Sandvik, for instance, is working on diesel-electric trucks and loaders that utilize a modular design approach.

This strategy allows for commonalities in drivelines, hydraulics, and electrical systems between diesel-electric and battery-electric equipment, facilitating an easier transition for customers in the future.

Caterpillar's Diesel-Electric Innovation Caterpillar has also entered the electrification arena with its R2900 XE diesel-electric underground loader.

This machine, the first of its kind from Caterpillar, promises increased productivity, faster loading, and reduced emissions compared to traditional diesel models. The R2900 XE represents a significant step forward in Caterpillar's electrification strategy for underground mining equipment.

Ultra-large Hydraulic Excavators

Hitachi to begin mass production of EX1200 in Indonesia Hitachi Construction Machinery will begin mass production of the EX1200 ultra-large hydraulic excavator (operating weight: approximately 120-ton class) at its Indonesian production base, P.T. Hitachi Construction Machinery Indonesia, from Nov 24, to meet the demand for ultra-large hydraulic excavators in Indonesia.

T

he Hitachi EX1200-6 excavator is a revolutionary hydraulic excavator, which takes advantage of the latest developments in heavy machinery technology. The EX1200-6 is designed and built to handle major applications, such as mines and civil engineering projects.

Currently, Hitachi Construction Machinery primarily produces ultra-large hydraulic excavators and rigid dump trucks at the Hitachinaka-Rinko Works (Hitachinaka, Ibaraki Prefecture, Japan) for delivery to customers around the world.

In addition to the production of medium hydraulic excavators, Hitachi Construction Machinery Indonesia has also been in charge of producing front structures (booms, arms, and buckets) for ultra-large hydraulic excavators, truck frames, rigid dump truck beds, and other welded structures for mining machinery.

As the largest market for mining machinery in Southeast Asia, Indonesia

has a comparatively large number of small and medium-sized mines, and it is a region with a high demand for 120 t class hydraulic excavators. In addition, there was a need to strengthen the production capacity of the entire group to rapidly meet the demand for mining products throughout the world – including the Americas market, where the Hitachi Construction Machinery Group is accelerating its independent expansion.

Against this backdrop, the group decided to extend the Hitachi Construction Machinery Indonesia’s Cibitung 2 Factory and newly establish production facilities and assembly space to produce the EX1200 ultra-large hydraulic excavator.

Furthermore, advanced welding technology will be applied in the extended area to expand the production items of welded structures for mining products.

Going forward, the Hitachi Construction Machinery Group will continue to develop and manufacture products according to customer needs at each base to address global demand.

39

Liberia Proposes New Royalties on Iron Ore to Boost Economic Recovery The bill, titled “An Act to Amend the Liberia Consolidated Revenue Code as Amended to be known as the Liberia Tax Amendment Act of 2024,” was presented for deliberation, with the House unanimously voting to delegate the matter to the Committee on Ways.

M

signaling a government effort to capture more value from embers of Liberia’s House of Representatives are its mineral wealth amid challenging economic conditions. currently reviewing a new draft law that proposes the imposition of royalties on iron ore, gold, and other base Economic Context: President Boakai’s Call metals, as well as withholding taxes on gaming, betting, and for Action services rendered. The bill, titled “An Act to Amend the Liberia Consolidated Revenue Code as Amended to be known President Joseph N. Boakai, Sr., submitted the proposed as the Liberia Tax Amendment Act of 2024,” was presented amendment, highlighting the urgency of the measure due for deliberation on Wednesday, with the House unanimously to a mid-year revenue performance review that revealed voting to delegate the matter to the Committee on Ways, a decrease of US$17.3 million in projected revenues. The Means, Finance, and Development President’s communication to the Planning for further investigation Legislature emphasized the critical and a report within 24 hours. role of the amendment in addressThe House’s swift action ing the shortfall and stabilizing the in probing the proposed New Royalties on Iron national budget.

Ore: Key Provisions and Implications

law reflects the urgency of addressing Liberia’s economic challenges. As the amendment awaits legislative approval, its impact on the mining sector, particularly iron ore, is set to play a pivotal role in the country’s efforts to achieve fiscal stability.

The proposed legislation aims to introduce a 5% royalty on iron ore, one of Liberia’s key export commodities.

According to the draft law, royalties will be due to the Government of Liberia at the time of each shipment and calculated as a percentage of the value of the shipped mineral, regardless of whether the shipment is a sale or another form of disposition. This move is expected to generate approximately US$8 million in revenue, which will contribute to improving the country’s economic conditions and support the recast budget.

Sections of the Revenue Code to Be Amended The amendment focuses on Sections 704(a)(1), 704(a)(2), 806(c), and 806(e) of the Liberia Consolidated Revenue Code.

The draft law stipulates that the newly defined royalties will apply to non-concessional iron ore, gold, and other base metals. The 5% royalty rate on iron ore represents a significant shift in Liberia’s approach to resource taxation,

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Skillings.net | October 2024

“I am pleased to submit to your Honorable Body for enactment: An Act to Amend the Liberia Consolidated Revenue Code as Amended to be known as the Liberia Tax Amendment Act of 2024,” President Boakai wrote. “Our mid-year revenue performance review showed that revenue estimates have decreased by US$17.3 million.

This has resulted in a downturn in the prevailing economic conditions, thereby prompting this proposal to amend the Revenue Code of Liberia.”

Broader Taxation Measures and Expected Revenue Impact In addition to iron ore royalties, the amendment introduces withholding taxes on payments to nonresidents, including a 30% tax on gaming winnings and a 20% withholding tax on payments for Liberian-source services rendered by nonresidents. These changes are intended to broaden the government’s revenue base, targeting sectors previously under-taxed or untaxed.

Gold ETFs Surge as Investors Eye Interest Rate Cuts Gold ETFs surge with four months of consecutive inflows, driven by rising gold prices and investor confidence amid expected U.S. interest rate cuts.

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lobal physically backed gold exchange-traded funds (ETFs) marked their fourth consecutive month of inflows in August, driven primarily by increased holdings in North American and European funds, according to the World Gold Council (WGC). This renewed interest in gold ETFs reflects growing investor confidence in the precious metal amid expectations of U.S. interest rate cuts. Despite gold prices hitting an alltime high of $2,531.60 per ounce on August 20, these inflows have only partially offset the year-to-date losses, pointing to lingering market uncertainties.

Gold ETFs, which hold physical bullion on behalf of investors, are a crucial component of the investment demand for gold. In August alone, these funds added 28.5 tons, equivalent to $2.1 billion, bringing total holdings to 3,182 tons. This influx boosted total assets under management to $257.3 billion, reflecting a significant increase in both gold prices and ETF holdings.

However, this positive trend is set against a backdrop of prolonged outflows over the past three years, driven by high global interest rates. Despite the recent gains, gold ETFs still face a net outflow of 44 metric tons year-to-date. The delicate balance between inflows and outflows illustrates the cautious optimism prevalent among investors. Gold trading volumes tell a mixed story. According to the WGC, global trading volumes dipped by 3.2% in August compared to July, averaging $241 billion daily.

SA’s Ferroalloys Industry Adapts to Green Energy Pressures The South African government’s outlook on the ferroalloys industry remains positive, despite the challenges posed by global green transition efforts, according to Kagiso Menoe, Director of Beneficiation Economics.

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peaking at the Critical Metals Conference: Ferroalloys 2024 in Johannesburg, Menoe discussed the impact of global greenhouse gas (GHG) mitigation policies on the local ferroalloys sector. Menoe highlighted that developed countries are using GHG emissions issues to bolster their own industrial policies, introducing measures such as carbon border adjustment mechanisms. He warned that these measures would negatively impact countries like South Africa, which rely heavily on fossil fuel-based electricity generation. “We believe they are kicking away the green ladder that we had hoped as developing countries would drive industrialisation in the country,” Menoe stated.

Uneven Playing Field in Low-Carbon Energy Menoe expressed concerns over the dominance of major low-carbon energy product developers in economic powerhouses such as the US, Germany, Japan, and China. These countries, he noted, are driving their low-carbon growth trajectories, leaving developing nations at a significant disadvantage. In response to these challenges, Menoe outlined several government strategies, including a focus on research and development (R&D) and financing through bodies like the Industrial Development Cooperation (IDC).

The IDC is playing a key role in promoting the adoption of greener energies, including exploring green hydrogen use in sectors such as ferroalloys, steel, and cement making. The IDC is also considering funding transitional industrial fuels that are less carbon-intensive than coal. However, Menoe underscored the continued need to use these technologies in conjunction with coal-fired power stations, highlighting South Africa’s competitive advantage in coal.

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Miners Leveraging Chinese Capital John Forwood, CIO of Lowell Resources Fund, highlights the challenges and opportunities for miners tied to Chinese capital and explorers backed by cash reserves.

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ith Chinese investment in Australian junior miners dwindling due to geopolitical tensions and regulatory hurdles, Forwood explores how overseas miners continue to attract Chinese funds, contrasting with Australia’s restrictive environment.

Chinese Investment and Regulatory Challenges Chinese capital is increasingly scarce for Australian miners due to the Foreign Investment Review Board’s (FIRB) stringent rules. Notable is the delayed $100 million deal between CZR Resources and Miracle Iron, illustrating the complex regulatory landscape. Australian-listed companies find more investment ease overseas, despite lower valuations due to perceived risks. For example, Tietto Minerals’ $730 million acquisition by Zhaojin Capital highlights how Chinese capital can still play a pivotal role outside Australia.

Explorers Backed by Cash Forwood identifies several explorers trading near their cash value, presenting potential undervalued opportunities.

Companies like Solstice Minerals and Indiana Resources are notable, with cash backing nearly equaling market caps, and promising assets or settlements that could unlock further value.

While geopolitical dynamics strain Chinese investment in Australian resources, opportunities remain, particularly overseas. Cash-backed explorers with proven management teams offer a silver lining in a tough market.

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China’s Steel Crisis

A Deepening Slump Impacting the Global Iron Ore Market China, the world’s largest steel producer, is facing an unprecedented crisis in its steel industry, driven by a prolonged downturn in the real estate sector and subdued economic growth.

This crisis has significantly impacted the demand for steel, resulting in sharp declines in both steel and iron ore prices. As a result, iron ore is on track for its worst performance since March 2024, with prices falling to their lowest levels since 2022. Despite entering what is usually a busier construction season, there is little optimism about a swift recovery for China’s steel sector​ The primary cause of the steel crisis is China’s sluggish real estate market, which has seen a protracted slump that is wiping out a substantial amount of demand for steel. The economic ripple effect of this slump extends beyond construction, impacting overall industrial activity and manufacturing output. Compounding the problem, the broader Chinese economy is grappling with weak manufacturing activity and softening exports, which further dampens steel demand.

Industry Warnings and Outlook Warnings from major industry players have painted a bleak picture. China’s largest steel producer, China Baowu Steel Group Corp., described the situation as a “long and harsh winter” that could be even more challenging than previous downturns in 2008 and 2015.

Baowu and other leading producers have called for “self-discipline” within the industry, urging mills to avoid ramping up production too quickly despite any short-lived signs of recovery. Goldman Sachs and other financial analysts have echoed these concerns, suggesting that the environment for iron ore and steel will remain challenging in the near term.

Global Implications The impact of China’s steel crisis is not confined to its domestic market but has far-reaching consequences for the global steel and iron ore industries. China’s slowdown has led to a surge in steel exports as domestic producers seek to offset losses by selling abroad. This has heightened competition in international markets, causing global prices to fall and triggering trade tensions, as seen with increased calls for protective measures from European and North American producers.

Companies like ThyssenKrupp AG and ArcelorMittal have already reported significant declines in earnings due to the influx of cheaper Chinese steel, signaling the broader impact of China’s internal struggles on the global steel trade​.

Steel Prices Continue to Decline Amid Weak Chinese Demand

The Construction Monthly Metals Index (MMI) dropped by 3.61%, breaking out of its previous sideways trend. The decline was primarily driven by falling prices of steel rebar and h-beam steel, attributed to weak domestic demand in China.

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he Construction Monthly Metals Index (MMI) dropped by 3.61%, breaking out of its previous sideways trend. The decline was primarily driven by falling prices of steel rebar and h-beam steel, attributed to weak domestic demand in China.

H-Beam and Rebar Steel Prices Drop Amidst China’s Construction Slowdown Over the past month, global steel markets have been affected by a decline in h-beam and steel rebar prices due to weak domestic demand in China.

This downturn is linked to the ongoing slowdown in China’s construction sector and tighter restrictions on financing for real estate developers, creating ripple effects in steel markets worldwide.

Global Impacts of China’s Steel Market Slowdown China, responsible for over half of the world’s steel production, continues to influence global steel markets as weakened domestic demand pushes excess supply into international markets. This has resulted in downward price pressure on steel products, particularly in countries

heavily reliant on steel imports, benefiting industries like real estate and infrastructure. However, this trend also poses risks of trade imbalances. Without any indication of easing financing restrictions for developers, China’s construction sector is unlikely to rebound quickly, prolonging global price volatility in steel markets.

Slowing Demand Leads to Falling Steel Prices China’s real estate sector, a major consumer of steel, has seen a decrease in new projects as government restrictions on developer financing take a toll on the market.

This has sharply reduced demand for h-beam steel and steel rebar, both critical for heavy-duty construction. Steel rebar prices in China fell by about 7% from August through early September, and ongoing weak demand has led to oversupply, impacting global markets.

43

Touquoy Mine Cleanup

St Barbara’s Atlantic Mining Faces Tight Deadline St Barbara’s Atlantic Mining faces regulatory challenges and tight deadlines in the Touquoy gold mine cleanup, setting a precedent for future mine reclamations in Nova Scotia.

ATLANTIC MINING NOVA SCOTIA, A SUBSIDIARY OF Australia’s St Barbara (SBM), is grappling with regulatory hurdles as it faces a looming deadline to post the remaining $38.7 million bond for the cleanup of the Touquoy gold mine, located 175 km west of Halifax.

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he province of Nova Scotia has granted an extension until the end of the month, following a previous requirement to secure the full $79.9 million by September 3. The financial obligation underscores the broader challenges facing the mining industry as it navigates increasingly stringent environmental standards.

The company, which operated Touquoy from 2017 until its closure in 2023, is simultaneously appealing the provincial timelines for achieving mandated water quality standards, arguing they are impractical and could lead to broader legal implications. “The bond’s amount

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isn’t an issue,” said Atlantic Mining CEO Andrew Strelein in an interview with The Northern Miner. “Should we be unsuccessful in this appeal, we will then proceed to further appeals. We are fully committed to completing this project in a timely and responsible manner.”

The company’s appeal, scheduled for a directions hearing in November, is being closely watched by industry stakeholders and environmentalists alike.

Atlantic contends that the timeline imposed by Nova Scotia’s Ministry of the Environment and Climate Change is unreasonable and could set a precedent for future mine reclamation projects

in the province. Strelein disputed the ministry’s assertion of a three-year delay in reclamation efforts, citing substantial progress made over the summer.

Atlantic Mining has invested $7 million to date, focusing on the tailings management facility and other critical areas of the site. The company’s approach, Strelein emphasized, is grounded in scientific principles, including a drying and compaction process for the tailings that requires several years before it is safe for heavy equipment use.

“Independent consultants are finalizing models on lake hydrology and geochemistry, and favourable weather has accelerated progress,” Strelein said. He noted that while weather conditions in Nova Scotia could pose challenges, monitoring would ensure that safety and environmental standards are met.

Despite these assertions, conservation groups, including the Halifax-based Ecology Action Centre, have criticized Atlantic Mining for perceived delays and historical shortcomings in meeting regulatory commitments. The province’s Ministry of the Environment and Climate Change rejected Atlantic’s first appeal against the clean-up conditions in July, arguing that the timelines were based on the company’s own submissions and that any further delays could pose risks to the environment.

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45

SKILLINGS MINING REVIEW STASTISTICS

AUGUST 2024 CRUDE STEEL PRODUCTION

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orld crude steel production for the 71 countries reporting to the World Steel Association (worldsteel) was 144.8 million tonnes (Mt) in August 2024, a 6.5% decrease compared to August 2023.

Africa produced 1.9 Mt in August 2024, down 7.2% on August 2023. Asia and Oceania produced 107.1 Mt, down 8.0%. The EU (27) produced 9.1 Mt, up 2.2%. Europe, Other produced 3.7 Mt, up 8.4%. The Middle East produced 3.4 Mt, down 3.2%.

North America produced 9.0 Mt, down 3.8%. Russia & other CIS + Ukraine produced 7.0 Mt, down 8.7%. South America produced 3.6 Mt, up 0.8%. The 71 countries included in this table accounted for approximately 98% of total world crude steel production in 2023.Regions and countries covered by the table: Africa, Asia and Oceania, European Union (27), Europe,other, Middle East, North America, Russia & other CIS + Ukraine, South America.

Top 10 steel-producing countries China produced 77.9 Mt in August 2024, down 10.4% on August 2023. India produced 12.3 Mt, up 2.6%. Japan produced 6.9 Mt, down 3.9%. The United States produced 7.0 Mt, up 0.7%. Russia is es-

Table 1. Crude steel production by region

timated to have produced 5.8 Mt, down 11.5%. South Korea produced 5.5 Mt, down 2.2%. Germany produced 2.9 Mt, down 0.5%. Türkiye produced 3.1 Mt, up 13.8%.

Brazil produced 3.0 Mt, up 7.3%. Iran produced 1.4 Mt, down 9.9%.

Table 2. Top 10 steel-producing countries

change august % change jan-aug % jan-aug 2024(mt) aug 24/23 2024 (mt) 24/23

august 2024 (mt)

% change aug24/23

jan-aug 24 (mt)

% change jan-aug 24/23

1.9

-7.2

14.7

1.9

China

77.9

-10.4

691.4

-3.3

107.1

-8.0

926.7

-2.2

India

12.3

2.6

98.5

6.5

EU (27)

9.1

2.2

87.2

1.5

Japan

6.9

-3.9

56.7

-2.9

Europe, Other

3.7

8.4

29.6

8.4

United States

7.0

Russia

5.8

Africa Asia and Oceania

Middle East

3.4

-3.2

35.5

3.0

North America

9.0

-3.8

71.4

-3.9

Russia & CIS + Ukraine

7.0

-8.7

58.1

-1.8

South America

3.6

0.8

27.9

-0.4

Total 71 countries

144.8

-6.5

1,251.1

-1.5

e

0.7

53.8

-1.7

-11.5

48.5

-4.9

South Korea

5.5

-2.2

42.5

-5.5

Germany

2.9

0.5

25.4

4.0

Türkiye

3.1

13.8

24.8

14.8

Brazil

3.0

7.3

22.4

3.8

Iran

1.4

-9.9

19.8

1.9

The 71 countries included in this table accounted for approximately 98% of total world crude steel production in 2023. Regions and countries covered by the table:Africa: Egypt, Libya, South Africa, Tunisia Asia and Oceania: Australia, China, India, Japan, Mongolia, New Zealand, Pakistan, South Korea, Taiwan (China), Thailand, Viet Nam,European Union (27),Europe, Other: Macedonia, Norway, Serbia, Türkiye, United Kingdom,Middle East: Iran, Qatar, Saudi Arabia, United Arab Emirates,North America: Canada, Cuba, El Salvador, Guatemala, Mexico, United States,Russia & other CIS + Ukraine: Belarus, Kazakhstan, Russia, Ukraine,South America: Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela

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2023 GLOBAL CRUDE STEEL PRODUCTION TOTALS TOTAL WORLD CRUDE STEEL PRODUCTION WAS 1,888.2 MT IN 2023

Source – World Steel Association Rank Country

2023

2022

% 2023/ 2022

Rank Country

2023

2022

% 2023/ 2022

1

China

1,019.1

1,019.1

0.0

22

Poland (e)

6.4

7.4

-13.1

2

India

140.2

125.4

11.8

23

Austria

7.1

7.5

-5.0

3

Japan

87.0

89.2

-2.5

24

Belgium (e)

5.9

7.0

-16.1

4

United States

80.7

80.5

0.2

25

Ukraine

6.2

6.3

-0.6

5

Russia (e)

75.8

71.7

5.6

26

Netherlands

4.7

6.1

-23.9

6

South Korea

66.7

65.8

1.3

27

United Kingdom

5.6

6.0

-6.5

7

Germany

35.4

36.9

-3.9

28

Pakistan (e)

5.3

6.0

-11.3

8

Turkey

33.7

35.1

-4.0

29

Australia

5.5

5.6

-2.9

9

Brazil

31.9

34.1

-6.5

30

Thailand

5.0

5.3

-6.7

10

Iran

31.1

30.6

1.8

31

Bangladesh (e)

5.2

5.2

5.8

11

Italy

21.1

21.6

-2.4

32

Argentina

4.9

5.1

-3.2

12

Taiwan, China (e)

18.9

20.8

-8.9

33

Sweden

4.3

4.4

-3.3

13

Viet Nam (e)

19.0

20.0

-5.0

34

South Africa

4.9

4.4

10.6

14

Mexico

16.3

18.4

-11.6

35

Czechia

3.4

4.3

-21.1

15

Indonesia (e)

16.0

15.6

2.8

36

Kazakhstan

3.9

4.1

-5.5

16

France

10.0

12.1

-17.4

37

Slovakia (e)

4.5

3.9

15.4

17

Canada (e)

12.3

12.1

1.3

38

Finland

3.8

3.5

7.7

18

Spain

11.3

11.6

-2.7

39

Algeria

4.4

4.3

2.8

19

Malaysia (e)

7.5

7.2

4.1

40

United Arab Emirates

3.2

3.2

0.8

20

Egypt

10.4

9.8

5.4

Others

39.6

41.4

-4.4

21

Saudi Arabia

5.9

9.9

0.8

World

1,888.2

1,888.7

0.0

e – annual figure estimated using partial data or non-worldsteel resources. * The world total production figure in this table includes estimates of other countries that only report annually.

World Steel in Figures 2024 now available

T

he World Steel Association (worldsteel) has published the 2024 edition of World Steel in Figures.

Edwin Basson, Director General, worldsteel, said, ‘Steel is everywhere in our lives, and for good reason. It has built the modern world and will be equally indispensable to the world as it moves

forward. World Steel in Figures provides a fascinating snapshot of the dynamics of today’s steel industry, including everything from production and production processes, to demand, trade, safety and more.’

The World Steel Association (worldsteel) is one of the largest and most dynamic

industry associations in the world, with members in every major steel-producing country. worldsteel represents steel producers, national and regional steel industry associations, and steel research institutes.

Members represent around 85% of global steel production.

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