Orica’s Dr Geoff Brent and his research team have been recognised for groundbreaking research using a novel method of Ultra-High Intensity Blasting to improve mine productivity. Ultra-High Intensity Blasting – A New Paradigm in Mining, authored by a team led by Dr Brent has been awarded the 2014 CEEC Medal by the Coalition for Eco-Efficient Comminution (CEEC). Congratulating Dr Brent on this significant achievement, Orica Managing Director Ian Smith said the quest to use the chemical energy in explosives to improve ore fragmentation and deliver a step change in mine processing efficiency was a priority for the global resources sector.
“This research is a demonstration of Orica’s commitment to the development of resourceful solutions through innovation to improve mine productivity. The use of electricity to mill ore is usually the largest consumer of energy on a mine site and ore comminution constitutes a significant percentage of electricity consumed worldwide,” Smith said. “Independent modelling has indicated that increasing the explosive energy by several fold can lead to increases in mill circuit throughput of up to 40% and savings of tens of millions of dollars annually.”
Speaking on behalf of the research team, Dr Brent said: “By utilising explosive energy in the pit to produce much finer ore we can dramatically increase the efficiency and throughput of the downstream comminution processes of crushing and milling. The overall energy consumption across the mining and milling cycle can be reduced with a consequent reduction in emissions. This is a step-change in ore processing. To date it has not been possible to blast at these ultra-high explosive energies, or powder factors, due to safety and environmental constraints. However, the new technique demonstrated for the first time that not only can these ultra-high energies be safely utilised but they can also deliver improved mine productivity and reduce environmental impacts in open pit mines. The key to the breakthrough has been to use the rock itself to contain the explosive energy by the selective deployment of state-of-the-art digital electronic initiation systems in novel blast designs. The new method was thoroughly tested in blast models and then verified in large scale production blasts.”
He adds: “This breakthrough approach is particularly important given the worldwide trend of decreasing ore grades. More ore needs to be ground and processed in order to achieve production targets and this method has the potential to generate a step change in mine productivity, particularly in complex or lower grade ore bodies. It can render ore bodies that might ordinarily be uneconomic both affordable and practical to extract. The potential environmental benefits are also enormous. The technique has the potential to cut CO2 emissions associated with grinding by up to 30%.” In recognition of their research in the field Dr Brent and his research team will be presented with the 2014 CEEC Medal at the International Mining and Resources Conference to be held in Melbourne in September 2014.
Orica has also just completed a strategic review of its chemicals business and as a result intends to pursue the separation of the chemicals business, either by demerger or sale. Orica’s two businesses, Mining Services and Chemicals, are both market leaders in their respective industries and each business is exposed to different end markets, industry drivers and competitive dynamics. The company stated that a separation of the businesses would allow Orica “to focus on its core Mining Services activities and capitalise on its global leadership positions in commercial explosives, ground support and sodium cyanide.”
Orica Chemicals is a leading supplier of chemical products to the mining, water treatment and other industrial, food and cosmetics markets in Australia, New Zealand with a growing presence in Asia and Latin America. Its annual revenue is approximately A$1.2 billion. A demerger would create a separate ASX listing for the Chemicals business. It is expected that Orica Chemicals would “benefit from the freedom to develop its own corporate strategy, capital structure and financial policies appropriate for the business as a separately listed entity.”
Orica said it has received a number of unsolicited enquiries from third parties expressing non-binding preliminary interest to acquire the Chemicals business. Whilst demerger is currently the preferred approach, Orica says it “will consider any alternatives that are in the interests of shareholders” and will give a further update on the proposed separation at its full year results announcement on November 19, 2014.
