Skillings Mining Review September 2022

2022 SEPTEMBER IN REVIEW

111/09

08

Biden All Set To Promote Minerals However, Lag In Mine Permits biden administration only permits a small number of new mines on public land, despite President's recommendations for developing a U.S. supply chain to get the metals required for the energy transition.

26 CHINA NO MORE DEPENDENT UPON FOREIGN IRON ORE

Interview with Mr. Prasanajit Mishra, Founder & Managing Director, Mining Today

32

40 PREVENTION IS THE PREDICTIVE CURE! BULK HANDLING IN MINING

SMALL TEAM

BIG RESULTS Optiro is a resource consulting and advisory group.

Our 5 core services are Geology, Mining Engineering, Corporate, Training and Software.

In eleven years, our team has travelled the world providing expertise to improve, value, estimate and audit the world’s minerals.

Pound for pound we think you’ll find no-one delivers greater value – and BIG results.

DEALS/ VALUATIONS

COMMODITIES

24

RESOURCE ESTIMATES

+$15

>64

BILLION

RESOURCE AUDITS

>780 MILLION oz Au

CLIENTS

>3,000

PEOPLE TRAINED

+5 BILLION TONNES

53

MILLION oz Au

+2,000

IRON ORE

COUNTRIES

COPPER

NICKEL

>4,300

>5,100 MILLION lb

MILLION lb

www.optiro.com 2 | SKILLINGS MINING REVIEW September 2022

contact@optiro.com

+61 8 9215 0000

THE LEAD

08 Biden All Set To Promote Minerals, However, Lag In Mine Permits

PROFILES IN MINING

32 Interview with Mr. Prasanajit Mishra, Founder and Managing Director, Mining Today

SPECIAL FOCUS

26 China No More Dependent Upon Foreign Iron Ore

36 Resuming the Cut Task: Woodsmith Shaft Boring Roadheaders

SURFACE MINING

05 McFarlane Lake Completes some Handsome Acquisitions

06 Ollagüe Salar: Strategic Partnership 14 Magnus Mineral Resources and Sixth Wave Innovations sign MoU

16 Latest on Ojos del Salado in Chile 16 The Impact of China Steel Mills on Iron Ore Prices

22 India: Bellary Reddy Mining, Andhra ‘No Objection’

29 U.S. Representative Mike Gallagher 2022 Legislator of the Year

44 Exciting Lithium Projects in Canada

STATISTICS

46 july 2022 crude steel production 47 Crude steel production December 2020

UNDERGROUND MINING

06 Foley Mine Area Soil Geochemical Program Completed by Q-Gold

18 Clean TeQ Water shares rise, Dewatering Technology

20 Latest Geopolitical Tensions Improved Gold Performance

30 Simandou: China’s Latest Iron Ore Supplier

38 Prevention is the Predictive Cure! bulk handling in mining

MINING FINANCE

14 Iron Ore Price To Dip 27% by Year-end

15 The fall of Iron ore prices 42 Copper price: On the road to recovery www.skillings.net | 3

PUBLISHER

2022 SEPTEMBER VOL.111.

NO.09

CHARLES PITTS Skillings Mining Review of CFX Network LLC, publishes comprehensive information on global mining, iron ore markets and critical industry issues via Skillings Mining Review Monthly Magazine and weekly. SMR Americas, Global Skillings and Skilling Equipment Gear newsletters.

chas.pitts@skillings.net MANAGING EDITOR

SAKSHI SINGLA sakshi.Singla@cfxnetwork.com CREATIVE DIRECTOR

MO SHINE mo.Shine@skillings.net CONTRIBUTING EDITORS

RONNY MUSTAQIEM Metallurgist

ALRICH LUISEN BALANAY Electrical & Instrumentation Engineer

SUBSCRIPTIONS UNITED STATES

OUTSIDE OF UNITED STATES

$72 Monthly in US Funds $109 Monthly in US Funds 1st Class Mail

$250 US Monthly for 7 - 21 day delivery $335 U S Monthly for Air Mail Service All funds are monthly

OMARY MGEMBE Processing Engineering

JULIO ELLER Environmental Engineer & Geosynthetics Specialist

JOHANNA ROMERO SKILLINGS MINING REVIEW NEWS ROOM

Digital Monthly Magazine SMR Americas Monday Global Skillings Wednesday Skillings Equipment Gear Friday

Mechanical Engineer

4.95

$

USD

per month

LIVYA KIRUJA Processing Engineer MEDIA PRODUCTION

STANISLAV PAVLISHIN media.team@cfxnetwork.com

CUSTOMER SERVICE/ SUBSCRIPTION QUESTIONS: For renewals, address changes, e-mail preferences and subscription account status contact Circulation and Subscriptions: subscriptions@Skillings.net Editorial matter may be reproduced only by stating the name of this publication, date of the issue in which material appears, and the byline, if the article carries one.

MEDIA ADMINISTRATOR

SALINI KRISHNAN salini.krishnan@cfxnetwork.com DIRECTOR OF SALES & MARKETING

CHRISTINE MARIE advertising@skillings.net

www.skillings.net SKILLINGS MINING REVIEW

(ISSN 0037-6329) is published monthly, 12 issues per year by CFX Network, 350 W. Venice Ave. #1184 Venice, Florida 34284

Phone: (888) 444 7854 x 4.

Printed in the USA. Payments & Billing: 350 W. Venice Ave. #1184, Venice, FL 34284.

Periodicals Postage Paid at: Venice, Florida and additional mail offices.

Postmaster: Send address changes to: Skillings mining review, 350 W. Venice Ave. #1184 Venice, Florida 34284.

Phone: (888) 444 7854 x 4.

Fax: (888) 261-6014.

Email: Advertising@Skillings.net.

4 | SKILLINGS MINING REVIEW September 2022

VP OF ADVERTISING SALES

MO KAZEMI mo.kazemi@skillings.net PROFILES IN MINING

mining.profiles@ skillingsminingreview.com GENERAL CONTACT INFORMATION

info@cfxnetwork.com

McFarlane Lake Completes some Handsome Acquisitions A Canadian gold exploration and development company named

McFarlane Lake Mining Limited stated that it had successfully acquired a 100% stake in Canadian Star Minerals Ltd.'s mining claims, rights, and leases for its West Hawk Lake, High Lake, and McMillan properties.

T

hese assets are quite potential since two or three of them have historically produced gold. With adjacent infrastructure, such as roads and powerlines, it provides the required support for exploration research and any possible mining development.

We see tremendous potential to define economic resources, "President and CEO of McFarlane Lake, Mark Trevisiol, remarked.

"All three assets have gold mineralization

that is close to the surface, which is advantageous geologically when estimating mine development timelines and operating costs.

We are continuing our drilling programme in the near future. We are preparing a similar programme for our High Lake property in the wake of the successful drilling campaign at West Hawk Lake." In accordance with a binding agreement dated December 30, 2021, the Acquisition was finished. The

acquisition cost was $5.5 million, which was paid to Canadian Star in the following ways: I $2.75 million in cash; (ii) the issuance from treasury of 5,625,000 common shares (the "Common Shares") in McFarlane Lake; and (iii) the transfer of 7,000,0000 Common Shares from specific directors or officers of McFarlane Lake.

Prior to the Acquisition's completion, Canadian Star received $500,000 in cash option payments; these payments were applied to the purchase price to bring the number of Common Shares that could be issued to the aforementioned number.

www.skillings.net | 5

SURFACE MINING

Foley Mine Area Soil Geochemical Program Completed

by Q-Gold

Ollagüe Salar: Strategic Partnership

s part of its 2022 exploration program, Q-Gold Resources Ltd. today announced with pleasure that it has finished an MMITM soil geochemical survey over the Foley Mine region on its fully owned Mine Centre Property (the "Property").

relationship with Thyssenkrupp Mining Technologies GmbH in order to advance the Company's Ollagüe Salar Lithium exploration project in northern Chile.

A

The Foley Mine and a group of auriferous veins to the northeast of Foley, commonly known as the Cone Prospect, were included in the MMITM soil survey, which covered more than 15 line-km. Samples were taken at nominal 50m intervals. The samples have been delivered to SGS Burnaby, and the results should be available in 4 weeks.

Q-Gold has received the interpreted data from the LiDAR Survey that was flown in June 2022 (See press statement of the Company dated June 29, 2022). This information will be combined with the soil survey that was conducted, the aerial magnetic survey that was flown over the property in January 2021, and other data to produce drill-ready targets, with drill mobilization anticipated for late September.

Dr. Andreas Rompel, Chief Executive Officer of Q-Gold, said, "We are very happy to have completed this soil sampling survey as it will facilitate our target selection for the upcoming diamond drilling campaign, which aims to enlarge the known strike extent of our high-grade gold-bearing quartz veins.

CONCERNING THE CURRENT MINE CENTER PROPERTY

In the historic Mine Centre 1890s gold area, where 16,025 ounces of gold were extracted from the Foley Gold Mine and the Golden Star Mine, Q-Gold controls 10,000+ acres of contiguous mining claims, Crown leases, and leasehold patents.

Wealth Minerals Ltd. announced that it had forged a strategic

T

he two parties have engaged into a cooperation and development agreement.

Wealth Minerals and thyssenkrupp Mining Technologies will work together as part of the Strategic Partnership to: • Identify, evaluate, and choose the most advantageous and environmentally sustainable processing technology for lithium extraction and purification treatment for the Ollagüe Project; • Develop the Ollagüe Project from the exploration stage through to commercial scale production capacity of high-purity lithium products; and • Define new standards in green mining.

The long-term objective of this Strategic Partnership is to work together to advance the Project through its many stages of development and, if necessary, move the Project toward production.

Identification, evaluation, and selection of technology for lithium extraction and purification for the Project will be the initial step of the Strategic Partnership. The creation of the basic flowsheet and layouts, along with brine testing and the setup of a pilot plant, will bring the Strategic Partnership's first phase to a close.

Every phase of the Strategic Partnership is intended to follow the strictest ESG guidelines and emphasizes collaboration with regional communities. Establishing the Project as a pioneering benchmark for green mining in the development of lithium brine resources is the ultimate goal of the Strategic Partnership.

6 | SKILLINGS MINING REVIEW September 2022

"We are honoured to have been selected as the project's collaboration partner and to have been given the trust to assist Wealth Jan Lüder Minerals in making the transition from explorer to developer. With this agreement, we will establish a new standard in green mining by building on our historically significant mining and technical knowledge ", claims Jan Lüder, the company's chief executive officer.

The executive director for Wealth Minerals in Chile, Marcelo A. Awad, emphasizes the relevance of these criteria and the crucial part that thyssenk- Marcelo A. rupp Mining Technologies Awad played in obtaining them.

He says: "We are unable to use conventional evaporation production techniques in this project. Our goal is to minimise our influence on the environment while maintaining the highest levels of sustainability. With its abundance of expertise and experience, thyssenkrupp Mining Technologies will assist us in achieving this."

Wealth Minerals' CEO, Henk van Alphen, continued: "We placed a lot of emphasis on finding a strategic partner in the industry with a solid technical foundation and depth of engineering knowledge. Therefore, we are even more pleased to have found thyssenkrupp Mining Technologies as a partner."

ME Elecmetal Comminution Solutions

Innovative Solutions - Proven Performance ME Elecmetal offers more than mill liners — we offer innovation, support, custom designs and valuable tools to develop a total comminution solution specific to your needs. We are on the ground with our customers — setting common goals and providing timely responses based on effective collaboration. Drawing on over 100 years of experience and advanced technologies, we will help you optimize processes, extend the lifespan of wear parts, reduce operational risks and increase profitability.

Premium Quality Forged Steel Grinding Media for SAG, Ball & Rod Mills • • • •

ME Super SAG®: 4.0” to 6.25” ME Ultra Grind®: 1.5” to 4.0” ME Ultra Grind®II: 2.0“ to 4.0” ME Performa®: 7/8” to 1.5”

Innovative Mill Lining Solutions for SAG, AG, Ball, Tower & Rod Mills • Steel • Rubber • Composite

www.me-elecmetal.com

Wear Components for Primary, Secondary & Tertiary Crushers • Gyratory Crushers • Jaw Crushers • Cone Crushers

THE LEAD

As per BLM data, as of late June, that total is noticeably lower than during the final 3 years of the Trump administration, when the number of mines allowed ranged from 21 in 2020 to 29 in 2018. The BLM only moves forward with mine plans after receiving all the necessary permissions from the bureau and other organizations like the EPA. Mine plan approvals allow for the start of digging.

8 | SKILLINGS MINING REVIEW September 2022

Biden All Set To Promote Minerals However, Lag In Mine Permits

However, his administration only permits a small number of new mines on public land, despite President Joe Biden's recommendations for developing a U.S. supply chain to get the metals required for the energy transition.

T

he Biden presidency has been not so good news for some large, prominent mine projects in the United States, putting the brakes on or halting plans for the Pebble mine close to a prime salmon fishery in Alaska, the Twin Metals mine close to the Boundary Waters wilderness in Minnesota, and a titanium mine near the Okefenokee Swamp in Georgia.

The federal government, though, is likewise taking its time with smaller mining operations. The majority of mine permits on federal lands are administered by the

Bureau of Land Management, which has formally approved 20 mine plans: six so far this year and 14 last year.

As per BLM data, as of late June, that total is noticeably lower than during the final 3 years of the Trump administration, when the number of mines allowed ranged from 21 in 2020 to 29 in 2018. The BLM only moves forward with mine plans after receiving all the necessary permissions from the bureau and other organizations like the EPA. Mine plan approvals allow for the start of digging. www.skillings.net | 9

THE LEAD

The BLM data doesn't only show a decline in mine permits following the change from a Republican to a Democratic administration. Additionally, fewer mine plans were approved under the Trump administration than they were during the four years of the Obama government.

Simply put, mining companies are less keen to delve into federal property. Since 2011, the number of applications has decreased practically every year, indicating that there are more factors at play here than just the president and political party in power. Compared to the 72 applications it received in 2011, the BLM only received 32 new mine application requests last year.

Over the past decade, fewer federal mine permits have been granted It's a concerning development for a country that is desperately attempting to secure its own mineral resources and wean itself from the supplies provided by geopolitical rivals like China and Russia.

The Biden administration has supported a Trump-era program to increase domestic production of "critical minerals," a collection of 50 metals that are vital to the economy and national security of the country but are mostly mined and produced elsewhere.

In his message on climate action, Biden has included this policy. For instance, lithium, cobalt, nickel, manganese, and graphite supplies are crucial for producing electric vehicles. However, the Chinese industry dominates the global supply chain for all five of these metals.

The United States may have considerable potential for producing these EV metals.

Nevada has enormous potential for lithium and is seeing a surge in lithium development.

A business in Idaho is attempting to mine the "cobalt belt" of the state. Others in Alaska are

interested in developing a coastal graphite deposit that may be one of the largest in the world, which would be advantageous for American battery manufacturers.

However, extracting these elements frequently necessitates a protracted environmental review at the federal level. There may be disharmony between the need for metals to be obtained as soon as possible for climate action and strict environmental protection laws in the United States because the deposits are found on federal lands, are close to endangered species, or pose a risk to protected natural areas like wetlands.

And when Biden took office, it appeared like investing in minerals was a good idea because organizations like the International Energy Agency anticipated a sharp increase in metal consumption as a result of the move away from fossil fuels. This could get worse in the United States because a crucial tax credit for electric vehicles is tied to utilising domestic minerals under a clause of the climate funding plan that the Senate passed.

An argument that could soon take center stage is whether this nation takes excessively long to approve mines, as the industry claims, or is prudently strict with projects that could irrevocably ruin landscapes, as environmentalists contend. Sen. Joe Manchin of West Virginia required the Senate to enact a separate "suite of basic permitting reforms" this fall as part of the reconciliation agree-

10 | SKILLINGS MINING REVIEW September 2022

ment he reached with Democratic leaders on a climate and health care package.

It's unclear how exactly this legislation will work out. Still, Manchin, last week, released a list of ideas he wants to be taken into account, including time limits on environmental reviews, revisions to Section 401 of the Clean Water Act permitting, and the explicit oversight of mining projects by a federal permitting council.

According to representatives of the mining sector, investors' interest in funding mine development has decreased as a result of the legal challenges to notable projects like the proposed Twin Metals copper mine and the permission backlog, which currently stands at more than 280 projects.

The administration's policies, according to Mark Compton, executive chairman of the American Exploration and Mining Association, "have truly been antithetical to giving that domestic mineral output." Currently, permitting is still making it difficult to attract mining investment to the United States.

According to environmentalists, federal safeguards against potential air and water pollution should not be reduced because mine permits take so long to approve. According to Aaron Mintzes, senior policy counsel for mining advocacy group Earthworks, several causes, including a staff exodus from the BLM under the Trump administration and efforts to move the bureau's headquarters, could be responsible for permitting delays.

"Permit delays also arise when mining corporations alter their plans, frequently for entirely acceptable explanations. Like shifts in ownership or changes in commodity prices," Mintzes emailed.

Despite numerous demands for comment, the White House remained silent. Although the Biden administration has taken steps of its own to streamline licensing procedures,

it is unclear at this time if mining operations will be covered by those initiatives.

According to Brian Hires, a spokesman for the BLM, the agency performs "careful, methodical, and rigorous evaluations of all projects.

The length of time needed for these assessments "may vary greatly, depending on the size, geography, complexity of the project, and other factors including litigation, economics, and the completeness of the application."

Additionally, Hires cited a GAO report from six years ago that revealed it takes two years on average to approve a mine plan of operations. But the survey also discovered that the time it takes to fully approve a mine plan can vary greatly, from one month to 11 years. The Forest Service, which regulates mine development in federal lands and has defended its lack of approval of mine plans under the Biden administration, concurred.

But as long as capacity permits, Muehlhof added, "the Forest Service takes all reasonable steps to process submittals in a timely manner in conformity with mission requirements." He added there is no precise information on the number of plans that have historically been accepted, rejected, or pending.

"Blockades to reaching net zero" According to the numbers, the Biden administration might be the best moment to buy into a U.S. mine, especially if it produces the kinds of minerals needed to create the batteries for electric vehicles.

With his Energy Department, Biden expanded on a Trump administration initiative to use federal loans to jump-start domestic minerals processing and refining. Biden invoked the Defense Production Act to finance mining-related projects. He also assisted in guiding the bipartisan infrastructure law's approval, which included a few potential

A grinding mill installed at the Arcadia lithium mine in Goromonzi, Zimbabwe. The Chinese firm Zhejiang Huayou Cobalt earlier this year said it would pay over $400 million for the hardrock lithium mine. Tafadzwa Ufumeli/Getty Images

clauses meant to smooth things up in the federal permitting system.

And when Biden took office, it appeared like investing in minerals was a good idea because organizations like the International Energy Agency anticipated a sharp increase in metal consumption as a result of the move away from fossil fuels. This could get worse in the United States because a crucial tax credit for electric vehicles is tied to utilising domestic minerals under a clause of the climate funding plan that the Senate passed.

But lately, neither in this nation nor elsewhere, mining companies have launched many new projects. Instead, they have been repaying loyal investors and avoiding the risks associated with investing in initiatives that might fail. For the American energy transition, this might have significant ramifications.

As per a recent estimate by analysts at Bank of America Corporation's global research division, the mining industry would need to invest a staggering $81 billion annually in order to meet demand projections for the world in order to avoid "bottlenecks to

attaining net zero" by 2050. According to the research, "Mined raw materials are critical to the energy transition, but a shortage of several metals crucial for future technologies is placing Net Zero at danger." "This threat is only beginning to be recognised by the globe."

According to some industry experts, the risk involved with a government approval process during a precarious and unpredictable period in the economic world order is a likely factor keeping mining corporations from investing the money necessary to establish mines in the United States or elsewhere.

Investors demand transparency, according to Gabriela Herculano, CEO of green technology investment company iClima Earth. Do I pay a dividend or invest in [a new project] and say, "Don't you worry investors, you're not going to be getting cash in your pocket now, but with the high returns I'm going to derive out of this [project]," if you're on the board or in the investment community of a listed company?

Mine development has also been cited by Biden's administration as the main obstacle to achieving his climate targets. Simplified www.skillings.net | 11

THE LEAD

permitting was the Energy Department's top suggestion in a comprehensive review of supply chain risks published in February to address the shortage of raw materials for the energy transition.

However, some analysts claimed that even if the Senate is unable to reach a consensus on legislation, the Biden administration has made moves to expedite infrastructure projects that could help the mining sector.

But most of what BLM has authorized since Biden took office has little bearing on the energy transition. The bulk of officially sanctioned mining enterprises on BLM lands was modestly sized gold operations. Plans to mine clay, calcium, and diamonds were also granted. One of the initiatives was a treasure hunting group in Utah called the Septarian Dragon Egg Nest, where hobbyists search for rocks that resemble actual "dragon eggs." This organization wasn't even a mine.

The FAST-41 permits steering program was extended by Biden's bipartisan infrastructure package, which was then expanded by the Trump administration to cover significant mining projects in an effort to expedite approvals. The infrastructure measure also established a two-year deadline for FAST41-covered project permits.

One lithium mining project was permitted to proceed by BLM; it was an exploration project in Nevada run by the Canadian mining business Pure Energy Minerals Ltd. and the world's largest oil services company, Schlumberger Ltd. Their initiative would make use of direct lithium extraction, an experimental variation on filtered lithium extraction that is favored by environmentalists for having a less detrimental effect on the environment than more conventional lithium mining techniques.

The Thacker Pass lithium mine in Nevada obtained its final environmental impact statement and record of decision in the last days of former President Donald Trump's administration, but the BLM data also gave that agency credit for authorizing the project.

According to BLM, the project's approval "spanned into President Biden's administration," which made the decision to approve the mine plan.

What's Biden up to?

Republicans have generally backed the notion of overhauling permitting for all sorts of projects, including mines. Still, a number of senators have expressed doubt that Democrats will implement the rough plan outlined by Manchin.

In May, the administration unveiled a multipronged "action plan" to expedite complex infrastructure projects. This included allocating funding to the White House Interagency Permitting Council, cutting redundancies at federal agencies, updating antiquated permitting regulations, and bringing together experts from various industries to discuss topics like the sourcing of essential minerals and materials.

Uncertainty exists around whether these initiatives will indeed hasten the lengthy and complicated environmental processes that mine developers must undergo.

The Fixing America's Surface Transportation Act's improvements to permitting, which resulted in the formation of the Permitting Council and a dashboard to follow evaluations of essential projects, form the foundation of much of Biden's proposal.

climate change, ensure that decisions are supported by science, and prioritise environmental justice. Parts of Biden's approach, such as creating timetables, initial scoping, and public outreach, were praised by Otis for potentially accelerating complicated and time-consuming environmental reviews through early problem detection. According to him, the process of approving a mine can take ten years or even longer if there is litigation.

"This is probably as far as you can go if you're not going to amend any legislation," he added.

Biden's proposal, according to Bracewell LLP partner Ann Navarro, sees a more significant role for the permitting council and the sector-specific teams as part of a genuine attempt to better organize the federal government and prioritize complicated projects.

In order to assist the permitting council in tracking and facilitating projects, Navarro said it's unclear whether the administration plans to increase staffing or merely put together more interagency teams. Employees with project management skills should be added to organizations like BLM to speed up and simplify the procedure for mines on public lands.

According to her, the council is most useful for settling conflicts and coordinating across agencies, and it might be able to more effectively calm disputes between agencies when it comes to complicated mining projects.

A partner at the law firm Kramer Levin Naftalis & Frankel LLP named Andrew Otis said he's eager to see the solutions developed by the sector-specific team put together as part of Biden's plan.

As staff employees within federal agencies reposition themselves, Navarro warned that the process, should it include the creation of new regulations, might initially drag down already complex and time-consuming evaluations.

Otis claimed that even though the Biden administration is preparing to draught new regulations, they aren't intended to hasten mining projects. Instead, they will establish clear and uniform standards regarding

"It's feasible to permit a mine in less than a few years, but practically speaking, it tends to take a while if an agency has to carry out complicated environmental studies under numerous legislation," she added.

12 | SKILLINGS MINING REVIEW September 2022

HALCOR PRODUCTS Copper tubes with or without lining or industrial insulation for applications in: • Drinking water and heating networks • Underfloor heating and cooling • Gas and medical distribution networks gases • Cooling and air conditioning systems • Solar energy applications • Various industrial applications

Halcor is the copper tubes division of ElvalHalcor S.A. and together with four more companies form the copper segment of ElvalHalcor S.A. that specializes in the production, processing and marketing of copper and copper alloys products with dynamic commercial presence in the European and global markets. For more than 80 years, Halcor has been offering innovative and added-value solutions that meet contemporary client demands in fields, such as plumbing, HVAC&R, renewable energy, architecture, engineering and industrial production.

The copper segment of ElvalHalcor S.A. is composed of six subsidiaries and seven associates/joint ventures, based in Greece, Belgium, Bulgaria, Romania and Turkey, while it operates a total of five production plants in Greece, Bulgaria and Turkey.

is achieved through strict controls applied throughout the production process. With a consistent quality focus, the company implements an ISO 9001:2015 Certified Quality Management System and leverages high technologies and expert staff.

The copper segment of ElvalHalcor S.A. develops and distributes a wide range of products, including copper and copper-alloy rolled and extruded products with Halcor being the sole producer of copper tubes in Greece. High quality in production

As a result of the Group’s strategic investments in research & development, Halcor is recognized as one of the leading copper producers globally, setting new standards in copper processing. The company maintains a consistent focus on quality and

environmental protection and a strong commitment to the principles of sustainable development. In this context, all production facilities in the Group’s plants leverage advanced technologies to bring in the market innovative products that are energy efficient and environmentally friendly.

For more information, please visit our website www.halcor.com

www.skillings.net | 13

MINING FINANCE

Iron Ore Price To Dip 27% by Year-end Concern over the Covid-19 outbreak in China has caused the iron ore price to plummet last week.

T Magnus Mineral Resources and Sixth Wave Innovations sign MoU Sixth Wave Innovations Inc. and Magnus Mineral Resources will conduct ongoing tests at the Penhalonga Gold Project Mine using SIXW's patented IXOS molecular imprinted polymer for extraction and purification of gold and silver.

T

he feasibility studies that have previously been completed at the Penhalonga Gold Property will be included into a thorough test programme. The test work's main objective is to validate IXOS®superior -Au's performance characteristics in comparison to activated carbon, as shown by Sixth Wave's numerous productive laboratory and field studies with various ore types.

FEATURES INCLUDE:

Operational: Why Better kinetics • Smaller plant due to high throughput and purity • Lower to no attrition or lost gold from attrition • Less complex circuit with fewer parts Environmental factors include: straight forward low-temperature elution, the absence of thermal regeneration, reduced water use, recyclable elution chemicals,

reduced CO2 emissions, and the absence of harmful airborne pollutants.

Magnus will construct an IXOS®-Au adsorption, desorption, and recovery (ADR) facility under the terms of a definitive agreement once Sixth Wave and Magnus have agreed that test work has achieved sufficient and good results.

The whole mining strategy aims to produce 20tph of ore. The current USD$60M budget excludes the pre-treatment plant, the mill, and the IXOS-in-pulp ARD plant. A plan for collaborative project management is being created. In return, Sixth Wave will designate Magnus as the sole distributor of IXOS®-Au in Africa and the Gulf Cooperation Council nations (GCC).

14 | SKILLINGS MINING REVIEW September 2022

he price for the main ingredient in steel making remained unpredictable due to the pandemic, supply chain disruptions, recession, and ongoing war between Russia and Ukraine. For BHP Group, Rio Tinto Limited, and Fortescue Metals Group Limited, the fluctuating iron ore price is a major setback which can and will impact their company’s profitability. Iron ore which is the raw material in steel-making, contributes greatly to their operation, and the slumping price of iron ore is expected to pummel their core profits.

According to the Commonwealth Bank of Australia (CBA), the price of iron ore will finish the year at US$100 per ton. Last Thursday, July 28, 2022, the BHP Group showed an update on their production for the fourth quarter of this year and the full year.

The report stated that the company showed that they have gotten an average price of US$113.10 per ton for the fiscal year 2022 for its iron ore. The figure however is below 13% as compared to last year’s figure of US$130.56 per ton. Goldman Sachs anticipates a price of US$120 per ton for benchmark iron ore 62% fine by this year. Their analysts also foresee a decline of almost 17% for the fiscal year 2023 which is about US$100 per ton.

scan the qr code to read the full story on our website

The fall of Iron ore prices As of July 2022, the price of iron ore is at 119.00USD. According to Commonwealth Bank of Australia or ASX:CBA, the iron ore price is expected to fall to 120USD per tonne by the end of September and by the end of 2022, its value will eventually be 100USD per tonne.

T

his price decrease is mainly caused by the current crisis that we are facing, the Coronavirus or COVID-19. It is still expected to fall in 2023 and it can eventually reach 80USD per tonne. Back on March 11, 2020, the World Health Organization (WHO) declared the novel coronavirus (COVID-19)

outbreak a global pandemic. Since it can be transmitted through respiratory droplets and other bodily fluids, protocols were set to limit the transmission. Face masks, social distancing, and frequent sanitizing were all mandatory. Businesses, schools and other institutions were forced to shut down in

accordance with the safety health protocols.

All of us were greatly affected, including the mining industry. Production stopped because people were restricted from going outside of their own homes. The COVID-19 outbreak affected our entire population most especially the members of those social groups in the most vulnerable situations.

scan the qr code to read the full story on our website

Equipping the mining industry with legal services since 1893. ∙ Mineral purchase agreements, leases and options ∙ Land assembly and mineral rights acquisition ∙ Severed mineral registration and title work ∙ Environmental permitting and compliance ° MINING & MINERALS LAW °

›› Paul Kilgore ›› Paul Loraas

fryberger.com www.skillings.net | 15

SURFACE MINING

I The Impact of China Steel Mills on Iron Ore Prices Iron ore prices experienced a nice rebound in mid-June. This came after Chinese President Xi Jinping pledged to take effective steps to achieve the country’s economic and social development objectives.

ron ore prices have been on a roller coaster since 2022, and they fell again in July. Of course, the supply of Chinese steel remains the primary reason for price movements. As it turns out, this week was no exception. In fact, prices fell immediately after analysts described their “bleak outlook” for demand, citing losses at Chinese steel mills and production cuts.

up all of its gains for the year as investors worry about diminishing Chinese demand.

IRON ORE PRICE GIVES UP ITS GAINS FOR THE YEAR AS CHINESE DEMAND SLOWS

Analysts did warn that if China’s flagging property market continues to deteriorate, it could fall to as low as $100 per tonne for the first time since November. The country produces roughly half of the world’s steel, and iron ore is a key component in the production of the metal.

Investors’ concerns about construction output in a key market have weighed on steelmaking commodities. Iron ore, a key source of financial gain for some of the world’s largest mining companies, has given

According to Platts, a division of S&P Global Commodity Insights, iron ore fell 8% to a six-month low of $111.35 per tonne, following reports of steel mills in China cutting production. The move marked the ninth consecutive session of declines.

Latest on Ojos del Salado in Chile The Alcaparrosa mine is part of Lundin Mining Corporation's Minera Ojos del Salado oper-

ations in Chile. On July 30, a sinkhole was discovered nearby, and Lundin Mining Corporation is still looking into what caused it. It is also working closely with the relevant regulatory authorities in Chile.

T

here have been no injuries as a result of the sinkhole's appearance, and all employees at the operation and in the neighborhood are secure.

The National Service of Geology and Mining (Sernageomin) of Chile issued a notification on August 4 ordering all mining operations in Alcaparrosa to remain suspended.

Following the discovery of the sinkhole, all mining operations at Alcaparrosa were suspended as a precaution and development activity in a section of the underground mine at Alcaparrosa was immediately stopped.

The National Service of Geology and Mining (Sernageomin) of Chile issued a notification on August 4 ordering all mining operations in Alcaparrosa to remain suspended.

ACCORDING TO PETER ROCKANDEL, PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LUNDIN MINING,

and to engaging regularly with community residents, union leaders, and other stakeholders to ensure they are informed of developments."

"Our efforts in reacting to this situation are directed first and foremost by the safety of staff and community people." In addition to conducting our own inquiry, "we are completely committed to cooperating with an impartial investigation by Sernageomin

In contrast to several media claims, the sinkhole's size has not significantly changed since it was discovered. On July 30, the sinkhole had a 64-meter depth, a surface diameter of about 32 meters, and a bottom

16 | SKILLINGS MINING REVIEW September 2022

diameter of 48 meters. The sinkhole is being regularly watched, and the surface diameter has expanded slightly to 36.5 meters, while the depth has reduced to 62 meters and the bottom diameter has stayed consistent at 48 meters. As circumstances necessitate, especially following the findings of inquiries into the sinkhole's origin, more details will be released.

“Construction starts have been weak, and orders have finally stalled,” said Colin Hamilton, head of commodities research at BMO Capital Markets. “Steel mills are now forced to reduce output.”

IRON ORE PRICES FALL DUE TO CHINA DEMAND CONCERNS

The property sector accounts for up to 40% of the Chinese steel supply, but new home starts have fallen this year as Beijing has relocated to control prices and reduce debt levels at large developers.

May was especially awful, with new starts down between 30 and 40% year on year.

At the same time, the country’s vast steel

industry has maintained steady output, with output in May annualizing at more than 1.1 billion tonnes.

As a result, the steel market has suffered.

The price of reinforcement bars, a product broadly used in the construction industry, has dropped 20% since the beginning of May, reducing corporate profitability.

“It’s all about the margin picture, and they’re very weak to lower right now,” said Peter Hannah, index manager at Fastmarkets, referring to Chinese steel mill profitability. “Something has to break.” Iron ore hit a record high of more than $230 per tonne a year ago as supply surged in tandem with

the global recovery from the pandemic.

Prices then plummeted in the second half of the year after Beijing instructed its vast steel industry to reduce output in an effort to cool the Chinese economy. At the end of 2021, the commodity was worth $119.

scan the qr code to read the full story on our website

Proud to be your reliable partner.

19260

We have long supported the region’s mining industry by providing safe, reliable and competitively priced electricity. In 2021, half of the energy we provide to all of our customers will come from renewable sources.

Together, we power northeastern Minnesota’s economy.

mnpower.com/EnergyForward

www.skillings.net | 17

SURFACE MINING

Dewatering Technology

Clean TeQ Water shares rise By quickly separating water and solids to create stackable tailings and recycled water, the ATATM technology was created to provide a secure and affordable mine tailings treatment method.

F

ollowing the conclusion of an exclusive global technological licensing deal with Soane Labs LLC for its ATATM (Accelerated Dewatering Technology), Clean TeQ Water Ltd (ASX:CNQ) shares increased 6% intraday to $0.62.

The deal grants Clean TeQ a sole global right to use the ATA technology and gives Clean TeQ the option to buy the technology at its own discretion within 18 months. During the 18-month evaluation period, Clean TeQ will finish its due diligence and start a pilot-scale demonstration to verify the technology's effectiveness and costs.

"We are happy to have signed this deal with Soane Labs," said CEO William Vriesendorp. "We feel

18 | SKILLINGS MINING REVIEW September 2022

According to Clean TeQ, chemical-based approaches to mine waste dewatering yield significantly better results than mechanical-based ones.

that this is an extraordinarily exciting and diverse portfolio of technologies that will strongly position our company to provide innovative solutions in mine waste management." Our current objective of developing innovations that use low-cost solutions to address big challenges and with a reduced energy impact is complemented by licensing the ATATM technology.

License terms According to the conditions of the license, Clean TeQ must pay Soane Labs up to $300,000 over an 18-month period. Clean TeQ will pay Soane Labs A$3 million in cash, shares, or a mix of cash and shares, at Clean TeQ's discretion, if it chooses to exercise its option to purchase the technology.

Massive market potential According to Clean TeQ, mine waste dewatering offers a large market opportunity.

At many mine sites across the world, dewatering is a serious environmental and safety concern, especially in tropical areas where natural evaporation rates are low or where seismic activity raises geotechnical risks.

Rapid and inexpensive dewatering technology, like ATA, will also become crucial for achieving the mining industry's ESG goals as environmental bonding requirements rise in reaction to the greater perceived risk in maintaining tailings storage facilities.

The licensing agreement is already in existence, and a consulting services agreement will be added so that Soane Labs may continue to support Clean TeQ as long as the license is in effect.

According to Clean TeQ, chemical-based approaches to mine waste dewatering yield significantly better results than mechanical-based ones. To extract water from a slurry, current technologies use a combination of high-pressure filtration and/or mechanical evaporation, which is costly and energy-intensive.

Applications for base and precious metals Additional advantages of the ATA technology, according to Clean TeQ, include the ability to recover important metals as part of a comprehensive mine rehabilitation program when combined with its own ion exchange systems (Clean-iX®).

In South Africa, the ATA technology is already in use in applications for the quick dewatering of mine tailings. Soane Labs will continue to be the owner of the current apps, while Clean TeQ will handle the clients going forward in accordance with a mutually agreed-upon revenue-sharing structure.

Additionally, Clean TeQ is also evaluating the ATA technology in applications involving base metals and precious metals. In the upcoming months, it is planned to deploy the technology to possible client locations for pilot-scale testing.

Quick separation of solids and water By quickly separating water and solids to create stackable tailings and recycled water, ATA technology was created to provide a secure and affordable mining tailings treatment method.

The solids in ore slurries are swiftly agglomerated by ATA using clever chemistry. The solids are either screen filtered and dewatered using gravity, or low-pressure filters might be employed instead.

The materials that are produced can be compacted and piled, and the extracted water can be recycled, significantly lowering the amount of water used. The compact material may be used for backfill in underground mining operations, either with or without cement. www.skillings.net | 19

UNDERGROUND MINING

Latest Geopolitical Tensions Improved Gold Performance The current geopolitical tensions have greatly improved gold

performance plus the stronger currency triggered a selloff to $1,700 per ounce last month. A strategist at TD Securities said that it would be a boost should the price hover at $1,789 per ounce. The analyst further said that going over the mentioned current gold performance could turn a shift in momentum.

Earlier, China warned the US that the relationship between the two countries would be affected if the latter insists on having Pelosi visit Taiwan. China does not recognize Taiwan as a sovereign country and stresses that it belongs to the country.

China reiterated that the US will bear the responsibility and will pay the consequences of undermining their sovereign security interests. Hua Chunying, China’s foreign ministry spokesperson said that the action of the US will stain the US-China relationship.

Han Tan, an analyst for the Exinity Group said that the aggressive tone coming from China in response to the house speaker’s visit to Taiwan has made for a typical haven play in recent sessions, with the precious and Treasuries picking up together with US Dollar and Japanese Yen.

G

old performance vastly improved and breached the $1,800 per ounce mark Thursday amid the latest geopolitical tensions between the United States and China. The price of gold rallied by 1.5% to $1,790.65 an ounce, its best gold performance in about four weeks. US Gold futures had a better performance at 1.7% to $1,807 an ounce.

The price of gold bounced back after the visit of US House Speaker, Nancy Pelosi to Taiwan, boosting the demand for the precious metal.

Her visit however resulted in retaliation from mainland China which fired several ballistic missiles around Taiwan. But, unemployment

back in the US could pull the price back, disrupting the momentum it enjoyed. The December gold futures grew $33, Thursday, hitting the daily high of $1,812 per ounce.

The center of the latest geopolitical tension between the two giants is the small country of Taiwan which China claimed as its province. The market was shaken after communist China launched several ballistic missiles around the strait of Taiwan as retaliation for Pelosi’s state visit. China likewise conducted various aggressive military exercises which included live-fire drills just 12 miles from Taiwan.

20 | SKILLINGS MINING REVIEW September 2022

Marc Chandler of Bannockburn Global Forex believed that the current situation will continue to develop going into the weekend.

The chief market strategist added that Beijing continues to harass Taipei while US President Joe Biden urged the US senate to recognize Taiwan as a “major non-NATO ally.” Biden also pushes that Taiwan must be allowed to be represented in a major international forum.

The current geopolitical tensions have greatly improved gold performance plus the stronger currency triggered a selloff to $1,700 per ounce last month. A strategist at TD Securities said on a Thursday that it would be a boost should the price hover at $1,789 per ounce. The analyst further said that going over the mentioned current gold performance could turn a shift in momentum.

US Economy Halted Stellar Gold Performance The gold performance is picking up after several weeks, employment reports in the US however could send the price of gold back to terra firma. The employment report is deemed as the biggest obstacle to the performance of the precious metal.

Economists in the country are looking to have an additional quarter of a million jobs last July in order to boost the economy. Last June, more than 372,000 jobs were created.

Friday saw the Bureau of Labor Statistics handling out reports that the country managed to create more than 578,000 jobs last January and are expecting to have 250,000 more jobs.

Hawkish Fed speakers were also seen as one of the driving forces which led to better gold performance this week. This was so by pushing against the sentiment of the country’s central bank turning away from rate hikes.

Mr. Win Thin of the BBH Global Currency Strategy said, “One after the other, they stuck to the script that has been established. What we are seeing are coordinated and wellcrafted communication efforts by the Fed.” The Analyst further added, “It is meant to leave no doubt as their intent to keep raising rates until inflation eventually goes down, regardless of the cost to growth and employment.”

What is next for the gold performance?

Last March 2022, the performance of gold peaked at more than $2,000 per ounce as Ukraine was being invaded by Russia. The invasion of Ukraine prompted investors to seek safe-haven assets like gold. but as the war ravages on, the interest in the precious metal as a safe haven somewhat waned over the recent months. This might probably be the fact that a much larger scale of war has decreased. Mike McGlone of Bloomberg Intelligence said that the metal looks more likely to continue its enduring upward trend and breach resistance at $2,000/ounce against sustaining lower than $1,700 per ounce.

SOLVING YOUR MOST COMPLEX CHALLENGES. With SEH, you are a true partner and collaborator.

Engineers | Architects | Planners | Scientists 800.325.2055 | sehinc.com/subscribe

www.skillings.net | 21

SURFACE MINING

India: Bellary Reddy Mining, Andhra ‘No Objection’ The Bellary Reserve Forest in Andhra Pradesh was closed to iron ore mining in 2010 due to

encroachment on forest land and other alleged violations, mostly committed by the Obulapuram Mining Company (OMC) of former Karnataka minister G Janardhan Reddy. The Andhra Pradesh government has informed the Supreme Court that it has no objections to the mining being resumed there.

TIMELINE • Report of a 3-member state committee also flagged grave illegalities

FEB 2010

• HC quashed the ‘stop mining’ order.

• Yardstick set for resumption of mining in Karnataka based on extent of illegalities.

• Andhra denied any encroachment.

• State government suspended mining operations.

MARCH 2010

DEC 2017

• SC stayed the HC order, stops mining until demarcation done

MAY 2009

DEC 2009

• MoEF kept its order in abeyance.

• State government handed over the probe to the CBI.

SEPTEMBER 2010

• SC sets 12-week deadline to determine AP-Karnataka boundary.

APRIL 2009

• Based on a complaint, MoEF suspended mining operations till leases demarcated.

• A local miner moved SC. AUGUST 2009

• SC issued notice to CEC. NOV 2009

• CEC recommended suspension of mining, demarcation of leases and recovery of exemplary cost.

• SC asks for another CEC report APRIL 2011

• OMC moved HC which suspended the ‘stop mining’ order.

• CEC files second report

• SC stayed the HC order.

JAN 2010

• SC stops mining in Bellary, Karnataka.

• SC asked HC to hear CEC and decide the matter

• CEC files multiple reports on Karnataka mining leases.

22 | SKILLINGS MINING REVIEW September 2022

2011-2013

JULY 2018

• SC reprimands both states for delay.

22 JULY 2022

• States agree on interstate boundary; OMC seeks mining permission, Andhra says no objection.

R

eddy, who served as the Karnataka government's minister for tourism and infrastructure development from 2008 to 2011, is the subject of a CBI inquiry into claims of unlawful extraction and money laundering.

After OMC requested permission from the Supreme Court to resume mining operations, the state submitted to the court that "nothing further survives" in the matter because the boundary issue between Andhra Pradesh and Karnataka, which had halted mining operations, had been addressed.

After the Central Empowered Commit-

session where OMC claimed that this paved the way for restarting mining.

tee (CEC) of the SC reported widespread encroachment and recommended that companies guilty of mining outside lease areas be allowed to resume mining and made to pay exemplary penalty, mining in Andhra's Anantapur district was halted until the mining leases were demarcated on the ground.

The Andhra Pradesh government informed the Supreme Court in January 2010 that the Reddy brothers had illegally mined approximately 1.95 lakh tonnes of iron ores in the Bellary forests and that permitting them to continue would be "a premium on dishonesty" shortly after Konijeti Rosaiah succeeded YS Rajasekhara Reddy as Chief Minister.

On July 21, 2011, the Supreme Court (SC) was told that the two states had finally approved the Surveyor General of India's state border report. The attorney for Andhra Pradesh stated, "on instructions, that the State has no objection to mining activities being carried out within its defined territory," at the same

A number of authorities who helped turn the tide against the Reddy brothers throughout 2009–2010 are irate over the state's alleged change in position.

Industrial General Contractor Specializing in Equipment Installation and Maintenance Millwrighting l

Piping l

Ironwork l

Concrete l

Electrical l

Boilermaking l

Building Construction l

Design/Build l

Offices Nationwide

crmeyer.com 800.236.6650

Offices: Byron, GA Escanaba, MI Muskegon, MI Coleraine, MN Tulsa, OK Chester, PA Oshkosh, WI Green Bay, WI Rhinelander, WI www.skillings.net | 23

SURFACE MINING

It was required to first establish the interstate line before demarcating individual leases, measuring encroachments, and establishing accountability since the permanent pillars and rocks marking the state boundary were destroyed to infringe on forest territory.

According to a forest official who worked in the Anantapur area, this is intended to be the start of the process rather than its conclusion.

IN REALITY, THE CEC HIGHLIGHTED A VAST VARIETY OF VIOLATIONS IN A SECOND REPORT IT SUBMITTED IN APRIL 2011:

None of the mining leases had any physical boundaries.

Dumping on forest reserves.

The removal of border pillars to expand the area under lease.

Illegal 12- to 17-year extensions of mining leases.

Mining without clearing any forest.

• Building unauthorised roads across the forest, including one into Karnataka that was allegedly done to carry iron ore across the border. The mines' reported production capacity was substantially exceeded by the reported quantities of iron ore shipped.

Former Karnataka minister G Janardhan Reddy. (Image: Facebook)

Multiple companies, according to a senior official with the Andhra Pradesh mining department, transported iron ore that was illegally mined in Karnataka's Bellary through forest roads to mines in the neighbouring Anantapur district of Andhra Pradesh and then to one of the ports as legitimate consignments to be shipped out.

Even the SC claimed that material retrieved by at least two businesses was sent through OMC, and it ordered the CBI (in Septem-

The attorney for Andhra Pradesh stated, "on instructions, that the State has no objection to mining activities being carried out within its defined territory," at the same session where OMC claimed that this paved the way for restarting mining.

ber 2011) to look into the connections, the speaker stated. The official advised Andhra Pradesh to "broadly follow the route adopted on the Karnataka side" of the Bellary woods rather than "resuming business as normal."

There, every lease was examined before being assigned to one of the three categories based on the severity of the violations discovered. "A production ceiling was established to prevent over-extraction while the worst offenders were banned and others were permitted to restart mining after making reparations," he claimed.

Janardhan Reddy, along with his brothers Karunakara Reddy and Somashekara Reddy, became well-known in Andhra Pradesh in the early 2000s by capitalising on a boom in the world steel market. 134 of the 188 hectares covered by the iron mining lease in the state's Anantapur district's Bellary reserve forest were given to OMC. The CBI is looking into several businesses, including Reddy's OMC and Brahmani, for possible financial ties to Jagan Mohan Reddy, the chief minister of Andhra Pradesh and the son of YSR. The Reddy brothers served as ministers in Karnataka's first BJP administration from 2008 to 2011. On BJP ballots, Somashekara Reddy and Karunakara Reddy won seats in the Assembly in 2018.

24 | SKILLINGS MINING REVIEW September 2022

FloLevel Technologies www.skillings.net | 25

SPECIAL FOCUS

China No More Dependent Upon Foreign Iron Ore The new state-owned iron ore giant in China, which was set up to handle purchases of the crucial raw material for steelmaking and consolidate the nation's mining holdings, is impacting people from Simandou to Sydney.

26 | SKILLINGS MINING REVIEW September 2022

T

he C h i n a Mineral Resources Group, created on July 19 with a registered capital of 20 billion yuan ($3 billion), will centralize purchasing for stateowned steel makers and merchants in order to present a consistent front in negotiations with foreign suppliers. Additionally, it will have mining equipment utilised abroad.

China's "Foundation Plan" for Iron Ore, which will be implemented over the next ten years, supports the measure. The proposal was allegedly developed by the China Iron and Steel Association, the trade group for the biggest iron and steel producers in the world, who had been charging outrageous prices for the raw material to foreign suppliers.

The idea has gained strong backing from the local governments of large steel-producing provinces as well as the National Development and Reform Commission, China's top state planner, enabling it to advance to the highest levels of the nation.

Leaked material has been disseminated in bits and pieces, mainly by the mining industry press.

But no formal text has been made available to the public.

lian Rio Tinto, and Brazil's Vale. China makes half the steel in the world, but it is incredibly reliant on imported ore; between 2015 and 2020, it will import more than 80% of its ore, up from 76.2% in 2017. In 2021, China will have imported iron ore worth about $180 billion. Its purchasing power is constrained by the fact that its 500 or so steel mills are scattered around the country.

With roughly three-fifths coming from Brazil and onefifth from Australia, its origins are also concentrated. In foreign iron ore mines, decades of mining investment had only resulted in equity of only 8% by the year 2020.

The foundation plan aims to change the equation in two ways: by adjusting the supply of iron ore in China and by changing the composition of the country's iron and steel sector.

For the nation that manufactures the most steel globally, the goal is simple: secure access to iron ore.

The management team of China Mineral Resources comprises the top five executives from the four mining giants supported by the national government: China Baowu Steel Group Corp. Ltd., China Minmetals Corp., China Baowu Iron and Steel Group Corp., and Aluminum Corp. of China (Chinalco). Most people have already made the decision to buy minerals through the new portal.

This requires employing market power commensurate with the sector's size to lower the price of the commodity, which is mostly bought from companies like Australia's BHP and Fortescue Metals Group, Anglo-Austra-

However, despite its domestic mining initiative and its associated costs and ramifications have not been fully investigated, its international initiative and its effects on purchasing have garnered attention.

www.skillings.net | 27

SPECIAL FOCUS

Increasing Domestic Resources The most ambitious aspect of the plan is probably increasing China's domestic iron ore supply. The goals are to increase domestic mine output to 370 million tonnes yearly and source 220 million tonnes through scrap recycling, according to Lu Zhaoming, the CISA's deputy secretary-general. Both show an increase of 100 million tonnes from 2020 levels.

hampered by political and environmental restrictions and a lack of knowledge and experience.

the state-owned companies involved will independently choose which programs to sponsor.

The amount spent on domestic iron ore mining decreased from 169 billion yuan in 2013 to less than 100 billion in 2019, and it has since decreased to roughly 80 billion yuan, according to statistics from China's National Bureau of Statistics.

Achieving the goals of the strategy would be challenging, given the costs and risks involved in investing in indigenous iron ore.

In 2030 and 2035, respectively, the targets for scrap steel will increase to 350 million tonnes and 400 million tonnes.

According to industry insiders, achieving such targets may reduce China's annual iron ore needs by 47%, assuming peak steel production of 1.065 billion tonnes in 2025.

But the devil is in the details.

In the past ten years, few nearby iron ore mines have received fresh money for exploration and development, an insider observed. Not that iron ore is short in China.

Its known reserves, or those that are still underground, are ranked fourth in the world with 10.8 billion tonnes. The bulk of them reside in the provinces of Sichuan, Liaoning, Shanxi, Shandong, Hebei, and the autonomous territory of Inner Mongolia.

These reserves are widespread and difficult to access, so it will take more time and money to dig them up.

Since they are predominantly composed of lower-grade magnetite, they take more effort to refine than the higher-grade hematite deposits in Australia and Brazil. The entire cost to extract iron concentrates from the earth in China varies depending on the mine, ranging from $60 per tonne to more than $100. An estimated $30 is spent on a tonne in Australia and Brazil.

Therefore, it should not be surprising that Chinese companies have focused on investing abroad, despite the fact that they have learned that market access has been

China's "Foundation Plan" for Iron Ore, which will be implemented over the next ten years, supports the measure. The proposal was allegedly developed by the China Iron and Steel Association, the trade group for the biggest iron and steel producers in the world, who had been charging outrageous prices for the raw material to foreign suppliers.

The domestic production of iron ore concentrate barely climbed 5.2% to 285 million tonnes in 2021, despite iron ore prices reaching all-time highs. To reach the aim of 85 million tonnes, annual output growth must double every year through 2025.

"Market oriented" To boost domestic mining, the CISA and the China Metallurgical and Mining Enterprises Association have developed a list of more than 50 domestic projects that merit enhanced funding and development.

The foundation plan is "market-oriented," according to Lu Zhaoming of the CISA, and

28 | SKILLINGS MINING REVIEW September 2022

The establishment of mines is also subject to a multitude of complex approval processes, environmental impact evaluations, safety precautions, taxes, and levies, just like anywhere else. Nevertheless, some of those challenges might be overcome with national cooperation.

higher-level calculus For a project to be financially viable, regulators and big iron and steel firms may not require domestic iron ore mining interests to be cost competitive with foreign mines, according to one analyst, Caixin.

This school of thinking holds that when major iron and steel producers directly invest in iron ore mining capacity, they are not required to make a profit on the ore. The mining sector's capacity to provide the steel mill with ore at or near cost makes it possible for the steel industry to be more lucrative.

When negotiating with foreign miners, steel manufacturers who are more self-sufficient are allowed to receive a discount on imported ore.

However, high costs might not matter if current geopolitical trends persist. The senior expert argued that, in order to safeguard the country against supply shortages, expanding China's industrial capacity may be essential.

If China can increase its own supply of iron ore, investments in domestic mines will reduce the likelihood that Chinese steel industries will be cut off from raw materials in the event of a serious geopolitical conflict with suppliers.

U.S. Representative Mike Gallagher 2022 Legislator of the Year On Friday, July 22, 2022, the Great Lakes Maritime Task

Force (GLMTF) recognized the unwavering commitment of Wisconsin Congressman Mike Gallagher to protect and advance the Great Lakes maritime supply chain at the U.S. Venture, Inc. facility in Green Bay, Wisconsin.

C

ongressman Mike Gallagher has spearheaded legislation that invests in shipbuilding on the Great Lakes, improves the maritime supply chain during the winter, and ensures the Great Lakes Navigation System remains viable for years to come.

Congressman Mike Gallagher introduced the Supplying Help to Infrastructure in Ports, Yards, and America’s Repair Dock (SHIPYARD) Act of 2021 which would provide $25 billion to make investments needed to optimize, improve, and rebuild shipyard facilities, electrical infrastructure, environmental systems, and the equipment of public and private shipyards in the U.S. that support the U.S. Navy fleet.

“At a time when China is commissioning three ships in a single day, we desperately need to strengthen the American shipbuilding industrial base to expand, support, and

service the fleet,” said Rep. Gallagher. “The bipartisan, bicameral SHIPYARD Act makes critical investments to better ensure shipyards across the country, such as Marinette Marine, can build the Navy the nation needs.”

He also introduced the Great Lakes Winter Commerce Act, a bill that would clearly define the U.S. Coast Guard’s (USCG) responsibility for icebreaking on the Great Lakes.

Currently, the USCG conducts Great Lakes icebreaking based on an 85-year-old Executive Order that fails to clearly define the USCG’s mission. This bill would update that mission to help ensure it meets the modern demands of commerce in the Great Lakes region. “In cold winter months, icebreaking helps keep our Great Lakes economy moving.

But a lack of sufficient icebreaking in recent years has shown that Congress needs to modernize the Coast Guard’s icebreaking

mission on the Great Lakes,” said Rep Gallagher. “The Great Lakes Winter Commerce Act is a bipartisan, bicameral bill codifying an icebreaking performance standard to meet the reasonable demands of commerce. This will help ensure that small businesses in Northeast Wisconsin can continue shipping goods from point A to point B — no matter the month or the weather.”

MIKE GALLAGHER SUPPORTS WATER RESOURCES DEVELOPMENT ACT

Congressman Mike Gallagher was a staunch supporter of the Water Resources Development Act (WRDA) 2020. He ensured a 13% set-aside in the Harbor Maintenance Trust Fund for the Great Lakes Navigation System. Previous legislation included funding for small harbors like the Port of Green Bay but failed to sufficiently increase the funding to adequate levels. This bill increased the amount allotted to harbors on the Great Lakes Navigation System from 10% to 13% with actual funding levels this year approaching 15%.

“Congressman Mike Gallagher has helped to solidify thousands of good paying jobs for the hard-working people of Wisconsin. U.S. shipyards are critical to our national defense and Mike Gallagher continues to make that a priority,” stated Craig Perciavalle, Vice President and General Manager of Bay Shipbuilding.

“At a time when the American supply chain is struggling, Congressman Gallagher championed critical legislation to rebuild Great Lakes ports and waterways. The Port of Green Bay is grateful for the passage of WRDA 2020 and the effort Congressman Gallagher put in to ensure an equitable portion of funding for the Great Lakes Navigation System,” stated Dean Haen, Director of the Brown County Port and Resource Recovery Department. He continued, “The Great Lakes Maritime Task Force’s Legislature of the Year Award is a fitting tribute to Rep. Gallagher and acknowledges all that he has done for our region and our industry.” www.skillings.net | 29

UNDERGROUND MINING

Simandou: China’s Latest Iron Ore Supplier Simandou, one of the largest undeveloped high-grade iron ore reserves in the world, is being developed after miners reached an agreement to build crucial infrastructure there in West Africa.

S

imandou is significant because it can offer major iron ore users like China an option to top supply sources like Australia and Brazil, allowing Chinese and other steel mills to diversify their sources of raw materials while also supplying highly sought-after higher-quality ore.

The future Guinea mines, however, are famously challenging to develop, leading to years of delays and a production stalemate.

They are spread across four blocks on two northern and southern parcels and over 100 kilometers of rugged and sensitive terrain.

However, the Guinean government and the two consortium owners of the four blocks— Winning Consortium Simandou and Rio Tinto Simfer—agreed to jointly create multi-user infrastructure for Simandou, which will advance mining activities.

In a joint statement, the consortium owners

30 | SKILLINGS MINING REVIEW September 2022

and the Guinean government stated that "WCS and Rio Tinto Simfer are committed to co-develop the rail and port infrastructures in compliance with internationally established environmental, social, and governance criteria."

In addition to the mining operations, it will support "the infrastructure that forms the backbone of the Simandou project, which presents a huge opportunity for the economic expansion of the Republic of Guinea."

Simandou Consortium is made up of the Chinese corporation Weiqiao Aluminum, the Singaporean company Winning International Group, and United Mining Suppliers International.

The Simfer joint venture consists of Simfer S.A., which is owned by the Guinean government, and Simfer Jersey, which is made up of the Chinese company Chalco Iron Ore Holdings and the Anglo-Australian mining company Rio Tinto Group.

Given its significant reliance on Australian ore, in particular, Beijing hopes to further investigate and diversify its iron ore supplies, as seen by the participation of Chinese enterprises in the Simandou activities.

About 60% of China's total imports come from Australia. Brazilian imports account for an additional 20%, according to Chinese customs data.

However, deteriorating ties between China and Australia in recent years have sparked a discussion about China's willingness to move the Simandou project forward.

China only produces 15% to 20% of the iron ore it needs, as per Vivek Dhar, a mining and energy commodities analyst at Com-

monwealth Bank of Australia, who wrote in a note last week: "China is particularly sensitive to international iron ore pricing." It's not a novel concept in China to take market power away from companies like BHP, Rio Tinto, Vale, and Fortescue.

Along with accelerating the development of new iron ore sources, Dhar claimed that China is also trying to control the amount of iron ore it imports by centralizing purchases rather than letting steel mills buy it piecemeal. However, Dhar acknowledged that this project might be challenging to coordinate.

When fully operational, Simandou will be able to export up to 100 million tonnes of iron ore annually, rivaling the output levels of Brazilian mega-miner Vale and Australian powerhouse Fortescue.

Simandou's premium ore, which has a 65% iron content, is another unique selling advantage. The majority of miners in Australia and Brazil typically ship ore with a 60% to 62% percent. Better yield and profits for miners result from higher iron ore content.

Simandou is scheduled to begin production in 2025, but there have been a number of setbacks over the previous 20 years, including scandals involving bribery and corruption.

The two consortiums claim they will look for funding to build a port infrastructure in the Forecariah prefecture in Maritime Guinea, as well as more than 600 kilometers of rail infrastructure spanning from the south to the southwest of Guinea.

The signed agreement follows a number of delays, including one last month when the consortium parties failed to meet a deadline and the Guinean government once more suspended operations at Simandou. www.skillings.net | 31

PRANSANAJIT MISHRA FOUNDER AND MANAGING DIRECTOR, MINING TODAY

32 | SKILLINGS MINING REVIEW September 2022

PiM

profiles in mining

INVESTING FOR FUTURE GENERATIONS

Interview with Mr. Prasanajit Mishra Founder and Managing Director, Mining Today Email: info@miningtoday.co Web: www.miningtoday.co A seasoned, dynamic, successful & result oriented, leader having strong managerial background in executive level with 14 year experience and cross sector exposure. A good track record of strategic appreciation and vision, able to build innovative business solution and implement in planned & sophisticated way, to convert every opportunity into success and of driving profit and growth.

Possessing excellent client facing and configuration skills and highly successful in helping define company direction, achieving goals and optimizing business. Utilize keen & insights analysis & team approach to drive organizational improvements, implementations of best practices, superior interpersonal skills, capable of resolving multiple & complex issues (Sales, Human Resources, Legal, Financial & Operational) & improving staffs to pick performance.

CORE COMPETENCY − Merging & Acquisition

− Mine Design & Mine Planning

− Investor, Lease Holder & Lender Support

− Engineering & Instrumentation

− Feasibility Studies & Assessments

− Operational Advice to Mine Owner

− Geology & Mineral Exploration

− Asset Management

− Resource & Reserve Estimation www.skillings.net | 33

PROFILES IN MINING

Describe your education and professional experience A seasoned, dynamic, successful & result oriented leader having a strong managerial background in executive level with 14-year experience and cross sector exposure.

A good track record of strategic appreciation and vision, able to build innovative business solutions and implement in planned & sophisticated ways, to convert every opportunity into success and to drive profit and growth. Possessing excellent client facing and configuration skills in International Mining Business.

Tell us a bit about your prestigious company, “Mining Today” please.

We as “Mining Today,” are a team of highly motivated & target driven team of miners and geologists with a gigantic dream to contribute to the newer exploration and mining techniques and bring about revolution in the long run.

We, together with a century-long experience in exploring and mining minerals, are confident in measuring the mineral potential across the world. We are here to create unique opportunities for our stakeholders by assisting them in finding the right mineral resources that fulfill their expectations.

Therefore, mining today is the right place for investing for future generations as this firm is found on experience, built on integrity. So, all of you are welcome to invest today with mining today, RETURNS MATTER A LOT, INVEST WITH US FOR BETTER…

Tell us in detail, how did you start your professional career, how did it take a turn towards mining, how did you reach the current position you are at?

My core branch is in Mining, and I have around 14 years of strong experience of working in India as well as Africa in Mineral exploration and Mining. I have always had 34 | SKILLINGS MINING REVIEW September 2022

PiM

profiles in mining

My core branch is in Mining, and I have around 14 years of strong experience of working in India as well as Africa in Mineral exploration and Mining. I have always had that strategic vision to build new business solutions and implement in a planned and sophisticated way to convert every possible opportunity into success.

getting into the venture timely and costeffectively. Our core focus is largely to understand the demand-supply game of any particular commodity to reap benefits for the investors. We develop a trustworthy and profitable partnership through transparency and simplicity.

SOME CORE COMPETENCIES OF THE COMPANY INCLUDE:

that strategic vision to build new business solutions and implement in a planned and sophisticated way to convert every possible opportunity into success.

Also, I had a keen desire to construct an optimistic team to develop the best possible practices and skills in this sector which gradually led to the birth of, “Mining Today”.

Summarize your company business and current projects you are involved in please To collaborate with investors and to make them understand the mineral potential all across the globe.

We do multidimensional analysis before venturing out for the project. As of the investor’s interest, we assist them in

Merging & Acquisition Investor, Lease Holder & Lender Support Feasibility Studies & Assessments Geology & Mineral Exploration Resource & Reserve Estimation Mine Design & Mine Planning Engineering & Instrumentation Operational Advice to Mine Owner Asset Management

How do you collaborate with investors to make them understand the mineral potential all across the globe?

We, firstly, identify all the potential economic mineral deposits throughout the area by employing techniques of Reconnaissance Survey, Remote Sensing, Geological Analysis and Sampling and Technical Investigation and then proceed with the feasibility of the Project by analyzing the risk factors involved

too. We make the investors understand the complete Geotechnical and Mining Scenario of the site as well as the future prospective which gives them a thorough idea about choosing the perfect area for exploration/mining.

Please talk about "multidimensional analysis" that your company undertakes before venturing out in any project.

We are not only responsible for the completion and execution of the client’s task in the most professional way possible, but we also deal in fulfilling other needs of the companies/clients as well, such as Claim staking and permitting, Operational strategy, Core drill planning, Resource Modeling, DeRisking, Finance Management of Project, Production Design, etc

How do you help prospective investors in the mining space?

By positioning itself in strategic sectors of the economy, Mining Today is set to bring about revolution in the mining sector by: Providing solutions that promote 3600 mining development.

Support the prospecting and exploration at competitive procedures and pricing.

Support investors to achieve global competitiveness.

Promote the ore minerals in their respective industry sectors.

The businesses we support are human capital driven and generate employment opportunities as well as develop revenues for the country.

Throw some light on some of the project portfolios that you've handled so far.

We have worked for Manganese and Graphite exploration in Tanzania and found information of very high-grade ore deposits.

We’re also currently on the lookout for Chrome, Iron and Manganese in Zimbabwe and Iron ore and Base metals in Namibia. www.skillings.net | 35

SPECIAL FOCUS

Resuming the Cut Task: Woodsmith Shaft Boring Roadheaders The Woodsmith project in north Yorkshire has been on the radar for several reasons, making it one of the most closely watched shaft sinking projects in the industry at the moment.

I

t is a project that has lately changed hands, to start with. The 10 Mt/y project, which was initially managed by Sirius Minerals, was acquired by Anglo American in 2020. This acquisition resulted in a new perspective on the entire project execution phase.

Polyhalite Sirius Minerals Projects, North Yorkshire (England)

36 | SKILLINGS MINING REVIEW September 2022

The principal shaft sinking contractor, DMC Mining, was relieved of its responsibilities

by Anglo American as a result of the ownership transition and reevaluation of plans

created by Sirius, a considerably smaller firm that was influenced by different investor demands and operational practices. The project's intended use of Herrenknecht's Shaft Boring Roadheader (SBR) technology is another reason to keep an eye on it.

The second generation of the technology, SBR 2.0, was put to the test in Belarus at the Slavkaliy-owned Nezhinsky potash project after making its debut at the Jansen potash project in Saskatchewan, Canada, where it excavated two blind shafts with diameters of 8 to 11 m down to a level of about 1,000 m deep. DMC served as the contractor for this project. Under the direction of the contractor Redpath Deilmann, it ultimately broke shaft sinking records while working on a project to sink two 8 m diameter shafts (one to 750-m depth and one to 697-m depth).

With its expertise in automated tunneling, Herrenknecht created the SBR for the automated sinking of blind shafts in soft to medium rock. According to the business, the SBR offers better safety performance compared to traditional shaft sinking methods while also attaining higher advance rates. It is based on the tried-and-true technology of the Herrenknecht Vertical Shaft Sinking Machine.

The SBR is a suspended shaft sinking machine that stands 60 meters tall and has 12 work decks and two service platforms.

A partial-face cutting technique is used to extract rock carefully with a telescopic, boom-mounted cutting head.

The cutting head operates in cycles, beginning each cut from the center of the shaft to the shaft wall and repeating this process until a layer of material is removed. 1-m intervals of excavation are followed by SBR lowering sequences.

As opposed to the traditional drill and blast approach, the SBR was chosen for Woodsmith by Sirius because of its advantages in terms of enhancing safety and schedule. By abandoning the use of explosives and implementing this system, the corporation would be able to achieve a number of operational goals while also implementing a method of work that was safer and more predictable.

The SBR eliminates the need for a linear procedure and enables work to be done as the shaft is being sunk, minimizing damage to exposed host rock and increasing safety while reducing downtime. As excavation progresses, workers can construct shaft lining and tubbing on work decks above the cutting head while waste rock is being removed by a pneumatic mucking system.

According to the Sirius plan, the third generation of technology will sink production and service shafts with a 6.75-m diameter to depths of 1,594 m and 1,565 m, respectively, at Woodsmith. This technology builds on the first two deployments. It includes, among other things, the addition of two retractable robotic probes to test and grout the ground ahead for safer excavation and an additional control cabin on the surface for more remote operation.

The SBR is a suspended shaft sinking machine that stands 60 meters tall and has 12 work decks and two service platforms. A partial-face cutting technique is used to extract rock carefully with a telescopic, boom-mounted cutting head.

Four triple sheaved winches from SMS SIEMAG, as well as conveyors owned by Herrenknecht's H + E Logistik GmbH, are among the support equipment used for these SBRs. The "first cut" with the SBR in the service shaft was confirmed by former Anglo American Chief Executive Mark Cutifani in July of that year, marking the start of construction on the shaft.

This progress was made even though the company was still working on a thorough technical study of Woodsmith to guarantee the technical and financial soundness of the entire design. The development of the underground mining area, the sinking of the

two main shafts, and the adjustments needed to accommodate both increased production capacity and the more effective and scalable mining method of using only continuous miners are all given particular attention in this review, according to Anglo American.

Since the first cut was made in July 2021, however, Anglo American and Redpath Deilmann—which is now in charge of the sinking project as shaft sinking contractor—have been reviewing the current plans for sinking with the SBRs, making minor hardware changes to the machines, and making sure all staff is properly trained to make the process easier to complete. The materials transport system (MTS) shaft's drill-and-blast sinking is another project that the Redpath Group is working on.

In the past, Woodsmith has considered a number of different shaft sinking rates, and Anglo American is presently striving to develop the best option for the plant-based on technical requirements.

Compared to the first two SBR operations carried out to this point, the sinking at Woodsmith provides a unique problem. To start, unlike what happened in Canada and Belarus, Woodsmith is not anticipated to experience ground freezing. Even though it takes a long time and is only used to freeze the unstable water-bearing layers near the shaft, this method can improve rock homogeneity and help maintain cutting rates.

Another level at Woodsmith to take into account is the MTS level, where lateral development work will be done around the 360-meter level to connect the production shaft with this level, from which polyhalite ore will be delivered by a 37-kilometer tunnel to Wilton near the port. This means that while the MTS level connection is being formed, vertical cutting and loading may be stopped.

The engineering work Anglo American is performing at Woodsmith will take into account all of these variables, as well as the success of previous SBR work. However, in terms of the SBR, there are indications that work on the service shaft may resume soon, with plans to begin sinking in the production shaft by the end of the year. www.skillings.net | 37

SPECIAL FOCUS

Prevention is the Predictive Cure! bulk handling in mining Maintenance, repair, and operations (MRO) specialists require a comprehensive plan with a foundation founded on worker safety to effectively manage high-tonnage conveyor systems.

U

nderstanding the benefits and drawbacks of reactive maintenance (RM), preventive maintenance (PM), and predictive maintenance (PdM) is necessary to create a strategy with objectives like minimizing unscheduled downtime, improving safety, increasing efficiency, and lowering overall operating costs to get a better return on investment (ROI).

Repairs made as needed Many businesses still use their conveyors in what is known as reactive maintenance, which entails fixing whatever fails.

Components are allowed to continue operating until they malfunction, which causes unplanned, expensive, and disruptive system downtime. Unplanned production halts,

38 | SKILLINGS MINING REVIEW September 2022

ancillary equipment damage (when a damaged component harms something else), overtime, and emergency service charges are some of the expenses associated with this strategy.

Other drawbacks include uncontrolled budgets, potential safety risks, and a reduced asset life expectancy since components are not kept in the best possible operating condition. Furthermore, when under pressure to resume operation as soon as possible, technicians oftentimes take more chances and make more errors. Figures estimate 50% of all conveyor repair efforts in the typical North American facility use

this tactic, despite the obvious drawbacks of this approach. Budget is the apparent factor: Reactive maintenance involves less personnel, less preparation, and a smaller initial outlay. However, such a tactic results in inadequate planning, monitoring, and system management.

Preventive maintenance has taken over Due to the shortcomings of reactive maintenance, a more preventive strategy has evolved to reduce failures that necessitate unscheduled shutdowns for repairs. Norms are frequently determined by length of service or business hours.

Performing routine maintenance on equipment to lower the likelihood of failure has been a component of PM virtually since the invention of the wheel. The same strategy is used by customers to prolong engine life when they bring their automobile in for routine oil changes.

Shifting millions of tons of rock, aggregate, and sand in erratic weather conditions puts a constant strain on bulk handling equipment and may result in dust emissions, spillage, and carryback. PM extends component life, boosts output, enhances overall effectiveness, and lowers maintenance costs. A successful PM schedule also needs to be adhered to strictly and updated frequently.

metered inspection, or common signs (mistracking, spillage, etc.). The PM estimates the appropriate time to retire, replace, or repair pertinent parts prior to the anticipated failure point based on observation and experience.

As a result, there is generally more safety, a more effective system, less leakage, and better overall system control.

The price of maintenance in advance Calculating cost estimations based on the rate of failure derived from data of similar applications remains mostly theoretical because equipment life estimates frequently do not take into account performance in a range of service circumstances.

Given the environment, application, and operation schedule, PM is typically little more than a best-guess estimate (among several other variables).

However, a major problem with PM is that some parts will undoubtedly need servicing more frequently than necessary, increasing expenses, while others won't, resulting in subpar performance at best and catastrophic failures at worst.

The ability to undertake maintenance on bulk handling systems is further influenced by the parts' accessibility, the equipment's age, the availability of skilled staff, and the rules governing each procedure.

There may be cool-down and ramp-up times needed for operations like coal-fired boilers, cement production, and smelting plants.

These intervals might last days on either end of the maintenance work and add to the safety concerns (personal protective equipment, confined space entry, exposure limits, etc.).

Preventing future problems To more precisely predict failure, predictive maintenance (PdM) closely analyses equipment performance while it is in use.

It employs software and sensors to gather data over time, aggregate the facts, and use an algorithm to produce a useful result that is made available to stakeholders.

This kind of data-driven system gives service technicians and operations staff much more comprehensive, accurate, and usable information when used in conjunction with routine physical inspections.

Some businesses handle this internally, while others discover that specialized service providers provide a higher return on their maintenance investment by relying on the knowledge and planned maintenance from industry specialists so their personnel can concentrate on essential tasks.

The PM method to conveyor maintenance often assumes that each component has a typical equipment life based on prior similar uses and circumstances. It may also assume that each component is triggered by time, www.skillings.net | 39

SPECIAL FOCUS

As part of a managed service arrangement, certain component manufacturers provide structured conveyor inspections and belt-cleaning maintenance. Their monitoring systems can track component deterioration and inform the service professional and/or operations staff of impending servicing needs through wifi or mobile phone. In stance of not so desired conditions, the system will also transmit a notification via a mobile app, giving service professionals and plant operators access to real-time data. Some modern systems can even automatically change the tension of a belt cleaning.

When traveling to and from the equipment that has to be fixed and recording information in their reports, highly skilled service professionals add another set of eyes to the conveyors.

They frequently spot issues that general maintenance employees overlook or have grown accustomed to ignoring since they see so many varied applications. With factory-direct managed service, the provider is in charge of maintenance, freeing up the team to concentrate on other tasks.

The use of predictive maintenance Data collection and storage are the primary tasks in a predictive maintenance program before moving on to analysis. Adding new sites of measurement used to be a laborintensive and expensive process, but wireless equipment have significantly lowered these expenses.

Some bulk material handlers are realizing that each important component can and should be monitored and studied to maximize performance as a result of more easily accessible data collecting, storage, and analytics choices. Additionally, data from sensors can be broadcast to mobile apps in the field through cloud-based software.

Although the initial capital investment for these systems may seem high, cloud-based technology might help offset some of the early expenses.

Extended equipment life, more accurate budget forecasting, more dependable main-

PdM is based on the actual state of the equipment, as opposed to PM, which is decided by an average or predicted life statistic. When a possible problem is identified through predictive analysis, also known as "condition-based maintenance," a repair can be planned to have the least amount of an impact on production.

Benefits from a more automated, analytics-based system include improved system performance and component life, a decrease in the requirement for visual examination, and a reduction in guesswork. This method saves time and lessens possible risks for conveyor systems that can be miles long and, in some cases, traverse treacherous terrain, even though it does not entirely eliminate the need for manual inspections and maintenance.

40 | SKILLINGS MINING REVIEW September 2022

tenance scheduling, improved productivity, and higher worker efficiency all contribute to a quick return on investment.

Computer learning Machine learning adapts maintenance requirements to the operation and service environment, fed by all prior input, in contrast to preventative maintenance (PM), which depends on wear life defined by the manufacturer and/or operator observations.

The advantage is a customized experience that gives the impression that equipment is speaking to decision-makers directly about what it requires.

A belt cleaner position indicator, which monitors the blade and tracks and reports its remaining service life, is a recently marketed example. The user-friendly tool collects information on primary belt cleaners continually and alerts factory-trained service professionals and/or plant operations staff when re-tensioning or replacement is necessary or when abnormal situations

Utilizing PdM and PM's combined power Predictive maintenance is superior to preventive maintenance in many ways, but historically it has been difficult or prohibitively expensive to use it on all but essential parts. Additional parts and systems will probably join a plant's conveyor maintenance program as data collecting, storage, and analysis grow simpler and more affordable.

The PM estimates the appropriate time to retire, replace, or repair pertinent parts prior to the anticipated failure point based on observation and experience. As a result, there is generally more safety, a more effective system, less leakage, and better overall system control.

arise. Information on any networked cleaner may be instantly accessed by managers and service professionals using a mobile device or wifi.

The gadget increases efficiency and safety by reducing worker exposure to moving conveyors and delivering crucial real-time intelligence. By making precise information readily available, service employees may deliver and install replacement of worn parts during planned outages, simplifying maintenance planning.

The indicator maximizes the blade's usable surface area by relying on real operating conditions rather than human judgment to monitor blade wear and tension for the best cleaning performance. It also reports with confidence when a blade is getting close to the end of its useful life.

A patent-pending device that combines the position indicator with an automated belt cleaner tensioner advances the technique.

This innovative powered assembly includes sensors that continuously check the pressure on the blades and change the assembly's position to maintain the best possible cleaning tension. The requirement for maintenance staff to manually re-tension each cleaner has been eliminated.

Instead, the chores are carried out automatically, cutting down on maintenance time while increasing each cleaner's useful space.

This elevates the idea of preventative maintenance to a new level by prioritizing real-time profitability and over-optimizing for a process parameter or other statistic.

When they are brought on by random, anomalous overloads or a human mistake, unexpected failure events in bulk material handling systems operating in challenging operating environments can be challenging to foresee. Therefore, maintenance personnel must be able to respond to unexpected failures in some way. Managed service providers might make use of unscheduled downtime for equipment maintenance or upgrades.

In addition, some service providers are assisting clients with limited access to their facilities during the Covid-19 pandemic by remotely training maintenance staff to properly maintain their conveyor systems and providing instructions on preventive maintenance, inspections, and blade replacement options. Factory-direct technicians maintain regular check-ins and constant communication with management to ensure optimal performance.

Human labor will always be required to plan and implement solutions with the aim of a successful and economical maintenance schedule, just as data will always depend on human experience to be properly used.

The optimal strategy is to take advantage of both PM and PdM benefits.

Because unscheduled downtime, prematurely degraded wear parts, and unnecessary labor have such a serious impact on the cost of operation, applying both methods to a maintenance strategy maximizes the effectiveness of both. www.skillings.net | 41

MINING FINANCE

Copper price: On the road to recovery Copper prices are expected to rise by the end of 2022 at an

average of 9,570 USD per Ton, 9,580 USD per Ton by 2023, and 10,400 USD per Ton by 2026. It is definitely not the time to give up on copper prices.

L

ondon Metal Exchange or LME copper prices are falling as of July 2022 at 7,040USD per Ton and the reason for this is the Coronavirus (COVID-19) lockdown which significantly slowed down the entire world’s economic growth. It is often used in power and construction, this makes copper essential for economic expansion.

However, these two greatly affected industries during the global crisis that we are currently facing. Since 2011, this is one of the biggest quarterly falls which was almost down to 20%. Copper has always been a leading indicator of the economic health of a country since it is used in many sectors.

Even if copper prices fell for an amount of time, according to Daniel Homes of ANZ, improvement is actually pretty visible in China’s demand for copper which is a great sign for a recovering economy.

“In fact, it’s the exact opposite — we’re actually seeing signs in China of that demand picture improving,” he said. Investors are still investing on power and infrastructure developments despite the downfall that we have experienced because of the pandemic.

Copper’s standing on the market is relatively promising as of today.

China and Copper Of course, the copper market’s performance still depends on a lot of factors such as how global sentiment changes as the U.S. Federal

Reserve hikes interest rates. However, supply issues will most likely help boost the demand for Copper in the next six to 12 months.

In coordination with the attempt to revive the economy, Chinese President Xi Jinping declared the construction of infrastructure in April as well as the investment fund.

China ruled out all possible circumstances; they knew that the possible high demand for metals could be well-handled by inventories. However, the rest of the world may have a hard time keeping up with demand still in mind.

With these efforts to help the economy, China also suggested banks extend loans to qualified real estate projects while still meeting the developers’ financing needs in order to continue their projects for unfinished infrastructures such as houses.

The fear of aggravating a real-estate crisis has definitely put a threat to the home buyers from all over China, which resulted in them stopping making mortgage payments for stalled property projects.

Copper in the Medical field It is well-known that copper can destroy certain bacteria and viruses. In accordance with the COVID-19 Pandemic, Ames National Laboratory of the US DOE (Department of Energy), Iowa State University and the University at Buffalo have joined forces into

42 | SKILLINGS MINING REVIEW September 2022

making a Copper Nanowire Spray that makes any surface antimicrobial. There are two varieties for this said spray: the first one uses pure copper nanowire while the second one uses copper-zinc nanowire. Both of which have been tested in the laboratory and inactivated the virus for less than 10 minutes.

However, of course, there are cons to using this nanowire spray which is why it is not yet launched for public use. Nanoparticles can dissolve and eventually become toxic, which is not great for the overall well-being of a human being and the environment. They are currently still doing some tests, lab work and researching further to make it safe for human interaction without harming healthy cells.

They are also trying to study the use of iron oxide in eliminating cancer cells that have been existing in the global health problem for centuries and decades. The continuous development of technology helps in creating possible solutions for long-existing problems such as cancer and COVID-19.

2022 Predictions According to the Goldman Sachs Group Inc., copper may eventually trade for 6,700 USD per ton in the next three months. This means around 22% of the downfall from the previous 7,040USD per ton. Even after these heavy losses, copper is still expected to rebound in a couple of months.

Copper prices are expected to rise by the end of 2022 at an average of 9,570 USD per Ton, 9,580 USD per Ton by 2023, and 10,400 USD per Ton by 2026. It is definitely not the time to give up on copper prices.

Last July 20, a sinkhole was discovered near the site of Miners Ojos del Salado copper mine, according to Chile’s National Service of Geology and Mining. The good news is that no one was injured in the said incident.

No people, equipment or even facilities were affected, but work was suspended for precautionary measures.

TEL: 888-444-7854 X 4 | FX: 888 261 6014 subscriptions@skillings.net

MINING INFO YOU DON’T HAVE TO DIG FOR...

SUBSCRIBE NOW FOR IRON ORE MINING NEWS AND MORE... Check  your choice of Subscription

Skillings NewsRoom

Skillings Mining Review

Skillings Mining Review

Digital Subscription

Print Subscriptions

Print Subscriptions Global

United Stages Mainland

a 3x Weekly Digital Newsletters: The Americas, Global and Equipment a Video News Updates a Digital Monthly Magazine Skillings Mining Review e-mailed

a Print Monthly Magazine Skillings Mining Review - Mail Delivered

a Print Monthly Magazine Skillings Mining Review Mail Delivered

a Digital Subscription

a Digital Subscription

a Website Full Access Skillings.net Podcast | Videos One-Month

c $4.95

12 Months

c $55.00

12 Months

c $660.95*

One-Month

c $72

One-Month

c $250

12 Months

c $800

12 Months

c $2950

*Group License (Unlimited Access Company wide)

Subscription Information

Name...................................................................................................

Company..............................................................................................

Address................................................................................................ .........................................................Suite............................................

c Amount Enclosed........................................................................... c Please Bill Me

City:..............................State:..........................Zip:..............................

Card Number: .................................................Exp. Date: .....................

Phone.............................. Fax...............................................................

c Visa

c Master Card

E-Mail..................................................................................................

c American Express

CVS No. (Security Code): ...........

SKILLINGS MINING REVIEW. P.O. 1203 NOKOMIS, FLORIDA 34274

SURFACE MINING

Exciting Lithium Projects in Canada In the backdrop of the increasing push toward electric vehicles, there have been a series of exciting developments for lithium projects in Canada. Given the country’s favourable regulatory environment, it comes as no surprise that Canadian lithium and Canadian spodumene are eliciting interest.

L

ithium is being hailed as a critical metal for the energy transition. A highly reactive element, it is an essential component for energy-dense rechargeable batteries, which are used in electronics, including laptops, cell phones, electric vehicles, and grid storage, amongst others.

The demand for lithium-ion batteries has grown exponentially in recent years. This has propelled global expansion and enabled the growth of new lithium projects. It goes without saying that achieving net zero emissions will necessitate a high reliance on both new and recycled sources of lithium for batteries.

Canada’s lithium resources are distributed across the country and have been discovered in Québec, Ontario, Northwest Territories, Alberta, Manitoba, Nova Scotia, New Brunswick, and Nunavut. The country has large hard rock spodumene deposits and brinebased lithium resources. Recognising its potential, the Canadian Government has designated lithium as a critical mineral for the renewable energy transition and wishes to become an important supplier.

The country’s favourable regulatory environment has drawn the attention of many stakeholders towards Canadian lithium.

Here’s a roundup of some lithium projects in Canada: ARBOR METALS DISCOVERS PEGMATITE DYKES

On July 25, Arbor Metals Corp. announced that it had completed the inaugural

prospecting program at its wholly-owned Jarnet Lithium project located in the St. James Bay region of Quebec. The helicoptersupported program found a corridor in the northern exploration area containing swarms of previously unmapped pegmatite dykes.

These dykes are the principal host unit for lithium. Patriot Metals has had significant success in drill testing Pegmatite dykes at its Corvette Project which is adjacent to Arbor’s Jarnet project.

UPDATES ON BOURIER LITHIUM PROJECT

At the company’s Bourier prospect, Lomiko and Critical Elements Lithium Corporation (Operator) have started the 2022 field exploration program. The expected duration of the field program is four weeks. Of particular interest are the lithium-tantalum-

44 | SKILLINGS MINING REVIEW September 2022

cesium anomalies as they represent an unprecedented discovery in the Bourier claim. This anomaly stretches along a 2.5 km long NE-trending mica-rich white pegmatites system.

DRILLING AT THE “ELON” LITHIUM PROJECT

The publicly traded exploration company Musk Metals announced that it was planning an eight-hole drill program to commence on its 100% owned “Elon” lithium project in Quebec. This project is located approximately 600 meters northeast of the Lithium Amérique du Nord project in Abitibi (Quebec).

Intervention permits had previously been received on May 18th, 2022 for the opening of access trails and exploratory trenches. The permit will be reused for the drill program.

MEDARO SET TO OPTIMIZE HARD ROCK LITHIUM RECOVERY TECHNIQUE

FRONTIER LITHIUM DRILLS AT SPARK PEGMATITE

Medaro Mining recently announced an update on the advancement of its hard-rock lithium recovery technology. The company aims to develop innovative spodumene processing technologies to support its lithium exploration projects in Canada.

Frontier Lithium recently released the results for four drill holes which were completed during the Phase 12 drill program on the Spark pegmatite. The deposit is part of the company’s PAK lithium property located north of Red Lake (Ontario).

Medaro’s dual closed-loop thermochemical technology has been designed to rapidly extract lithium from spodumene and convert it to high-purity lithium carbonate, lithium hydroxide and/or lithium metal.

Discovered in 2019, the Spark pegmatite deposit currently contains mineral resources of 14.4 million tonnes averaging 1.40% lithium oxide in the indicated category and 18.1 million tonnes averaging 1.37% lithium

oxide in inferred. The Spark pegmatite is one of the two premium spodumene-bearing deposits which Frontier has delineated on the PAK project.

ADVERTISING INDEX

Azcon ............................................ 45 ABT................................................. 21 Barr Engineering............................ 15 CR Meyer....................................... 23 FloLevel Technologies.................. 25

We thrive on challenges

Fryberger........................................ 15 General Equipment Supplies........ 05 Global Minerals Engineering........ 45 Golder Associates......................... 45 Halcor............................................ 13

golder.com

Lake Superior Chapter ISEE.......... 45 Malton Electric Company............. 45 ME Elecmetal................................ 07 Minnesota Power.......................... 17 Mielke Electric Works................... 17 Naylor Pipe.................................... 48 Neo Solutions................................ 19 Northern Engine & Supply............. 45 Optiro............................................. 02 SEH................................................ 21

www.skillings.net | 45

STATISTICS

july 2022 crude steel production

W

orld crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 149.3 million tonnes ( Mt ) i n Ju ly 2 0 2 2 , a 6 . 5 % d e c re a s e compared to July 2021.

CRUDE STEEL PRODUCTION BY REGION

Africa produced 1.2 Mt in July 2022, down 5.4% on July 2021. Asia and Oceania produced 110.1 Mt, down 5.2%. The EU (27) produced 11.7 Mt, down 6.7%. Europe, Other produced 3.5 Mt, down 16.5%. The Middle East produced 3.2 Mt, up 24.2%. North America produced 9.6 Mt, down 5.4%. Russia & other CIS + Ukraine produced 6.4 Mt, down 29.1%. South America produced 3.6 Mt, down 7.8%.

The 64 countries included in this table accounted for approximately 98% of total world crude steel production in 2021.

Regions covered by the table: Africa, Asia and Oceania, European Union (27), Europe, Middle East, North America, Russia & other CIS + Ukraine, South America.

TOP 10 STEEL-PRODUCING COUNTRIES

China produced 81.4 Mt in July 2022, down 6.4% on July 2021. India produced 10.1 Mt, up 3.2%. Japan produced 7.3 Mt, down 8.5%.

The United States produced 7.0 Mt, down 6.4%. Russia is estimated to have produced

Table 1. Crude steel production by region

africa

Table 2. Top 10 steel-producing countries

change july 2022 % change jan-july %jan-july (mt) july 22/21 2021 (mt) 22/22 1.2 -5.4 8.4 -8.6 110.1

-5.2

812.6

-4.8

11.7

-6.7

86.0

-5.6

europe, other

3.5

-16.5

27.5

-6.7

middle east

3.2

24.2

25.3

4.4

asia and oceania eu (27)

north america

9.6

-5.4

66.4

-3.2

russia & cis + ukraine

6.4

-29.1

50.5

-18.8

south america

3.6

-7.8

25.5

-3.4

149.3

-6.5

1,102.3

-5.4

total 64 countries

5.5 Mt, down 13.2%. South Korea produced 6.1 Mt, down 0.6%. Germany produced 3.0 Mt, down 2.0%. Turkey produced 2.7 Mt, down 20.7%. Brazil produced 2.8 Mt, down 8.7%.

Iran produced 2.0 Mt, up 34.1%.

july 2022 (mt)

% change july 22/21

jan-july 22 (mt)

% change jan-july 22/21

-6.4

609.3

-6.4

china

81.4

india

10.1

3.2

73.3

8.0

japan

7.3

-8.5

53.3

-4.9

united states

7.0

-6.4

48.0

-3.0

russia

e 5.5

-13.2

41.4

-7.0

south korea

6.1

-0.6

39.9

-3.4

germany

3.0

-2.0

22.5

-5.1

turkey

2.7

-20.7

21.6

-6.9

brazil

2.8

-8.7

20.3

-3.5

iran

2.0

34.1

17.4

3.7

The 64 countries included in this table accounted for approximately 98% of total world crude steel production in 2020. Regions and countries covered by the table: Africa: Egypt, Libya, South Africa. Asia and Oceania: Australia, China, India, Japan, New Zealand, Pakistan, South Korea, Taiwan (China), Vietnam. CIS: Belarus, Kazakhstan, Moldova, Russia, Ukraine, Uzbekistan. European Union (27). Europe, Other: Bosnia-Herzegovina, Macedonia, Norway, Serbia, Turkey, United Kingdom. Middle East: Iran, Qatar, Saudi Arabia, United Arab Emirates. North America: Canada, Cuba, El Salvador, Guatemala, Mexico, United States. South America: Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela

46 | SKILLINGS MINING REVIEW September 2022

CRUDE STEEL PRODUCTION DECEMBER 2020. Source – World Steel Association COUNTRY

DEC 2020

DEC 2019

%CHANGE DEC-20/19

2020

% CHANGE

COUNTRY

DEC 2020

DEC 2019

%CHANGE DEC-20/19

2020

% CHANGE

Austria

530 e

521

1.7

6 665

-10.2

Mexico

1 550 e

1 361

13.9

16 854

-8.3

Belgium

359

6 434

7 292

-11.8

72 690

-17.2

9 107

9 801

388

326

19.0

3 651

-21.4

2 886

2 462

17.2

30 971

-4.9

505

-28.9

6 119

-21.1

United States

Bulgaria

40 e

43

-6.3

485

-14.3

Croatia

15 e

7

101.9

47

-32.0

North America Argentina

-7.1 101 119 -15.5

Czech Republic

408

359

13.7

4 465

0.6

Finland

339

186

81.8

3 500

0.8

France

1 155

918

25.7

11 596

-19.8

Chile

105 e

109

-3.5

1 165

2.8

Germany

3 137

2 835

10.6

35 658

-10.0

Colombia

110 e

97

13.5

1 126

-15.5

94

17.0

1 430

5.9

Ecuador

50 e

50

0.5

477

-21.5

164

-44.8

1 513

-14.5

Paraguay

3 e

3

-4.4

22

-17.5

1 404

6.9

20 200

-12.9

Peru

105 e

91

15.8

671

-45.4

Uruguay

5 e

5

-7.2

47

-24.6

Venezuela

2 e

0

315.8

29

-43.6

3 654

3 143

16.3

38 158

-8.4

Egypt

994

574

73.0

8 229

13.4

Libya

73

63

16.2

495

-18.4

297

-1.5

3 877

-37.0

934

45.5

2 224

19.6

29 030

13.4

85

186

-54.3

1 218

-52.4

Saudi Arabia

440

664

-33.8

7 775

-5.1

United Arab Emirates

280

297

-5.8

2 722

-18.2

Middle East

3 465

3 371

2.8

40 745

2.7

China

91 252

84 692

7.7 1 052 999

5.2

India

9 796

9 383

4.4

99 570

-10.6

Japan

7 526

7 785

-3.3

83 194

-16.2

South Korea

5 952

5 880

1.2

67 121

-6.0

380 e

261

45.6

3 743

13.3

1 700 e

1 693

0.4

20 570

-6.3

Thailand

410 e

357

14.8

4 420

4.1

Vietnam

1 600 e

1 876

…

19 500

11.6

Greece Hungary Italy

110 e 90 1 500 e

Luxembourg

113

97

17.3

1 886

-11.0

Netherlands

540

521

3.6

6 054

-9.1

Poland

680 e

642

5.9

7 890

-11.9

Slovenia

50 e

34

45.0

570

-8.5

Spain

891

765

16.4

10 934

-19.5

Sweden

410

376

8.9

4 409

-6.6

United Kingdom

710 e

550

29.0

7 185

-0.5

Other E.U. (28) (e)

680 e

642

6.0

8180

-12.1

European Union (28) 11 757

10 665

10.2 138 786 -11.8

Bosnia-Herzegovina

75

70

6.5

759

-5.2

Macedonia

33

24

35.9

180

-24.8

Norway

41

40

3.2

624

0.5

Serbia

119

158

-24.8

1 456

-24.6

Turkey

3 403

2 893

17.7

35 763

6.0

3 671

3 185

15.3

38 782

3.9

Other Europe Byelorussia

200 e

225

-11.2

2 490

-5.0

Kazakhstan

355 e

374

-5.0

3 835

-7.2

45 e

35

28.2

465

18.7

Russia

6 110 e

6 159

-0.8

73 400

2.6

Ukraine

1 906

1 561

22.1

20 616

-1.1

84

-4.8

950

42.6

3.1 101 756

1.5

Moldova

Uzbekistan C.I.S. (6) Canada

80 e 8 696

8 438

1 070 e

1 092

-2.0

11 078

-14.1

20 e

22

-8.5

181

-21.4

El Salvador

8 e

8

-5.7

79

-22.5

Guatemala

25 e

26

-3.9

237

-22.6

Cuba

Brazil

South America

South Africa Africa Iran Qatar

Pakistan Taiwan, China

Asia Australia New Zealand Oceania

292 e 1 359 2 660 e

118 616

111927

12 600 -10.1

6.0 1 351 117

1.6

473

449

5.4

5 490

0.0

59

57

3.8

586

-12.2

506 151 969

5.2

6 076

-1.4

533

Total 64 countries (1) 160 858

5.8 1 829 140 -0.9

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

www.skillings.net | 47