All posts by Paul Moore

Zijin receives official approval for Phase 2 expansion of Julong copper mine to 350,000 t/y

Automation, Base metals, Bulk handling, Equipment maintenance, Mining maintenance, Sustainable mining

On 22 February 2024, Tibet Julong Copper, a subsidiary of Zijin Mining Group, received official approval in relation to the upgrade and expansion project of Phase 2 of the Julong Copper Mine in Tibet, China which was issued by the Tibet Autonomous Region Development and Reform Commission.

The Julong Copper Mine was approved to expand upon its existing mining and processing project of 150,000 t/d by adding a new production scale of 200,000 t/d through upgrade and expansion, thus forming a total production scale of 350,000 t/d.

On the same day, the company convened the third extraordinary meeting in 2024 of the eighth term of the Board at which the proposal in relation to the implementation of the overall upgrade and expansion project of phase 2 of the Julong Copper Mine was considered and approved unanimously.

The estimated total investment amount is approximately RMB 17.46 billion (over US$2.4 billion), which will be self-financed by Julong Copper. After the Julong Phase 2 Project is completed and reaches the designated production capacity, the annual ore mining and processing volume of the Julong Copper Mine is expected to exceed 100 Mt, making it the largest in China in terms of mining and processing scale and the largest standalone copper mine to be put into operation in the world since 2000.

The annual mine-produced copper output of Julong Copper, which includes both the Julong Copper Mine and the Zhibula Copper Mine, is expected to increase from 154,000 t in 2023 to approximately 300,000-350,000 t; the annual mine- produced molybdenum output is expected to increase from 5,000 t in 2023 to approximately 13,000 t.

In the future, a Phase 3 project will also be planned and implemented for the Julong Copper Mine. If this project is approved by the relevant government authorities, the Julong Copper Mine can potentially achieve an annual ore mining and processing volume of approximately 200 Mt, making it the largest standalone copper mine in the world in terms of mining and processing scale.

The construction scope includes the upgrade and expansion of the existing mining system and dump, construction of a new Phase 2 Julong processing plant, Deqingpu tailings storage yard, 220 kV power transmission, transformation and distribution facilities, plus other supporting production and living facilities, etc.

Julong uses open-pit mining followed by copper-molybdenum flotation, copper-molybdenum separation, copper flotation, and- copper-sulphur separation. It is intended that silver will also be comprehensively recovered from the copper concentrates. It is expected that the construction will complete and the production will commence by the end of 2025 with a minelife of 36 years.

The mine is notable for many reasons not least that the mining takes place at 5,300 m plus, bringing major challenges for the workers and the equipment. Julong already has one of the most up to date mining fleets in China which is both internationally and domestically sourced including for electric rope shovels alone from Taiyuan Heavy (TYHI) three WK-12s, three WK-35s, one WK-45 and one huge WK-55 with a 110 t bucket capacity to load 220-363 t class trucks and having a 20.17 m boom.

The trucks are mainly from China’s market leader Inner Mongolia North Hauler Joint Stock Co (NHL) in Baotou. They include 34 NTE260 electric drive trucks equipped with QSK60 Cummins engines and Siemens (now Innomotics) drives. A number of fully autonomous trucks are now also running at the mine using technology from TAGE Idriver, which include new NTE240BAT units that number 12 units today; while Builder X has also enabled  remote control operation of one of the WK-35C shovels. The fleet management system at the mine was supplied by Beijing Soly – an intelligent mine production command centre was established at an altitude of 4,698 m while a 4G dedicated wireless network base station was built at 5,500 m.

Siemens (Innomotics) also supplied the power solution for a long distance thyssenkrupp Industrial Solutions conveyor at the mine having 2 x 6,000 kW gearless drives generating 1,023 kNm of torque and giving a nominal speed of 56 rpm. thyssenkrupp (mining business now part of FLSmidth) also won the order to supply two sets of primary gyratory crushers. MTU also has Series 2000 engines on smaller 100 t class haul trucks from both XCMG and NHL at the mine (XCMG XDE110 and Terex TR100).

Metso supplied a full scope of advanced minerals processing equipment and an advanced process control system to Julong including six crushers, eight SAG grinding mills, eight ball mills and eight stirred mills, four vertical plate pressure filters and 16 vibrating screens, as well as related services like installation, start-up, commissioning and technical direction.

Sandvik’s Golden Shank delivers unmatched corrosion protection

Equipment maintenance, Mining consumables, Mining maintenance, Mining services

Sandvik says it is introducing the Golden Shank, a patented corrosion protection coating for greatly increased service life and lower drilling cost per metre. The shank adapter encounters harsh conditions in many underground mines due to the use of highly corrosive water as flushing media. During its lifetime it must endure challenges such as reduced fatigue properties, stress corrosion cracking and embrittlement.

Sandvik’s new Golden Shank is equipped with a patented, low-friction, nickel-plated coating with a polymer top sealant for improved corrosion resistance. Applied throughout the entire shank and flushing slot, except for the striking area, this unique coating it says minimises wear on flushing seals and rock drill parts and reduces breakages on other rig and tool machine parts.

Field tests confirm 30-100% longer product life. Reaching further between service intervals enables customers to proactively schedule shank adapter replacements during intended service stops, and mitigate time-consuming and costly occurrences of unexpected breakage during ongoing drilling operations. Even at mine sites where corrosion is not prevalent, Golden Shank field tests have consistently demonstrated 2-3 times longer performance life than other similar market options.

The extended service life of the shank adapter enhances safety and sustainability for customers by reducing operator handling and heavy lifting, inventory needs and emissions from transportation. A coating with less environmental impact also improves the sustainability footprint in manufacturing.

“Prioritising operator safety and minimising environmental impact through reduced tool replacements are critical considerations in our product development process,” said Thomas Blomfeldt, Product Manager Top Hammer at Sandvik Mining and Rock Solutions. “The Golden Shank will enable some customers to potentially double efficiency.”

Anglo American secures additional Serpentina high quality iron ore resource at Minas-Rio

Bulk handling, Mineral commodities, Mineral project development, Mining project news, Steel and iron ore

Anglo American has announced that it has agreed to acquire and integrate the contiguous Serra da Serpentina high quality iron ore resource owned by Vale SA into Anglo American’s Minas-Rio mine in Brazil. Anglo American will continue to control, manage and operate the Minas-Rio operation, including any future expansions that relate to Serpentina.

Duncan Wanblad, Chief Executive of Anglo American, said: “The opportunity to partner with Vale to secure a high quality iron ore resource of this scale and quality, right next door to Minas-Rio, is compelling – particularly given all the physical synergies of our mining and processing infrastructure to create a single optimised operation, combined with the option to access Vale’s rail and port logistics. The sheer scale and quality of the Serpentina orebody offers significant value, including through the scope to expand the production of the premium grade pellet feed products we sell to steelmaking customers as they focus on decarbonising their own processes for decades to come. The Minas-Rio DRI-grade product sells into one of the most attractive growth segments available in our industry today.”

Serpentina contains a Mineral Resource of 4.3 billion tonnes of iron ore, with a significantly larger total endowment upside that reflects the total strike length of the orebody of more than twice that of Minas-Rio. Serpentina is also of a higher iron ore grade than Minas-Rio’s already high grade ore and contains predominantly softer friable ore that together are expected to translate into lower unit costs and capital requirements for its extraction. The combination of the two resources also offers considerable expansion opportunities, including the potential to double production, which Anglo American and Vale will assess under the transaction’s terms.

Eduardo Bartolomeo, CEO of Vale, commented: “We are pleased to partner with Anglo American to support the growing demand for high quality iron ore as our clients accelerate their transition to low carbon emissions steelmaking. Minas-Rio is a Tier-1 asset that will benefit from great synergies with Serpentina’s deposit and Vale’s logistics and we are confident this partnership will unlock significant value to all of our stakeholders. We plan on allocating our share of the high-quality pellet feed to our pellet plants in Brazil and in the future to the Mega Hubs producing iron ore briquettes.”

Under the transaction’s terms, Vale will contribute Serpentina and US$157.5 million in cash to acquire a 15% shareholding in the enlarged Minas-Rio, subject to normal completion adjustments. If the average benchmark iron ore price remains above US$100/t or below US$80/t for four years, a purchase price adjustment payment will be made to Anglo American or Vale, respectively, in line with an agreed formula. Following completion of the transaction, Vale will receive its pro rata share of Minas-Rio production.

Vale will also have an option to acquire an additional 15% shareholding in the enlarged Minas-Rio for cash if and when certain events relating to a future expansion of Minas-Rio occur, including the receipt of the requisite environmental licence for an expansion following the completion of a pre-feasibility study (PFS) and feasibility study (FS), at fair value calculated at the time of exercise of the option. The enlarged Minas-Rio will have the option to utilise Vale’s nearby rail line and Tubarão port to transport expanded output as an alternative to the construction of a second pipeline to Anglo American’s current port facility at Açu.

All viable logistics solutions will be considered and evaluated during pre-feasibility. The existing Minas-Rio pipeline crosses the Vale rail network downstream from Minas-Rio, enabling a far shorter second pipeline to connect with the rail corridor to the Tubarão port. The Transaction does not include or affect Anglo American’s 50% interest in the iron ore export facility at the port of Açu. The Transaction is expected to complete in Q4 2024, subject to regulatory conditions.

Orica to acquire Cyanco creating global sodium cyanide major for mining

Mineral processing, Mining consumables, Mining services, Precious metals

Orica has entered into a binding agreement to acquire 100% of the common stock of Cyanco from an affiliate of Cerberus Capital Management for US$640 million. The acquisition of Cyanco, a US-based leader in the manufacture and distribution of sodium cyanide primarily serving the gold mining industries in the US, Canada, Mexico, Latin America, and Africa, is expected to complement Orica’s established Mining Chemicals business and create an integrated global manufacturing and distribution network.

In line with Orica’s strategy for growth beyond blasting, Orica will establish a Mining Chemicals business vertical and create an integrated global sodium cyanide manufacturing and distribution network. The move more than doubles Orica’s existing sodium cyanide production capacity from Yarwun, Australia to approximately 240,000 t/y via the contribution of Cyanco’s two manufacturing plants in Nevada and Texas.

Orica said that it significantly increases Orica’s footprint in the very attractive North American gold mining industry and strategically located to access cost competitive US natural gas-based manufacturing assets. The acquisition will be largely funded from Orica’s existing cash and undrawn committed debt facilities, alongside a A$400 million underwritten institutional placement.

The acquisition together with the placement are expected to be mid-single digits earnings per share (EPS) accretive in the first full year of ownership (pre-synergies). Given the highly complementary nature of the two businesses, run-rate net cost synergies of ~US$10 million are expected by the end of year three of Orica’s ownership. The acquisition is expected to be completed by the end of FY2024, subject to the expiration of certain regulatory waiting periods and other customary closing conditions.

Orica Managing Director and CEO Sanjeev Gandhi said: “I am delighted to announce the acquisition of Cyanco today, accelerating the delivery of Orica’s Mining Chemicals strategy and creating a leading global mining chemicals business. Cyanco is a highly complementary business, and by combining it with our established sodium cyanide business, Orica will create a leading integrated global sodium cyanide producer with world-class supply capabilities in mining. The acquisition will more than double Orica’s existing sodium cyanide production capacity and provide us with the ability to cater to the highly attractive US and Canadian gold mining industries.”

He adds: “By combining these two leading businesses, we expect to improve our ability to serve our customers by enhancing Orica’s global network of transfer stations in key gold mining regions, supporting security of supply to mine sites. The acquisition is mutually beneficial to both Cyanco and Orica stakeholders, and we look forward to welcoming Cyanco’s employees to Orica. We are excited about the opportunities this will create for Orica, our customers, and our shareholders.”

Cyanco is a leading manufacturer and distributor of sodium cyanide, a specialised chemical required for gold processing. Cyanco’s production facilities are strategically located to serve the Nevada gold mining region and seaborne export market. Cyanco is a leading supplier of sodium cyanide in the US, with a well-established distribution footprint, enabling service to gold mines in Canada through rail link and supply capabilities into international regions through seaborne transportation. Orica says it will incorporate Cyanco’s greenhouse gas emissions profile into its global Scope 1, 2 and 3 inventory and remains committed to delivering on its existing public climate change targets.

Orica said it offers a complementary geographic expansion into attractive US and Canada gold mining industries, with long-term industry trends driving demand for sodium cyanide. Global sodium cyanide demand growing at ~4% per annum from 2023 to 2028, with North American sodium cyanide demand growing at ~5% per annum in the same period. Global treated ore is forecast to grow faster than historic rates due to greenfield and brownfield mining projects and decreasing ore grades.

As stated, it expands Orica’s network to three manufacturing facilities, increasing supply networks and improving security of supply to customers. It will mean an extensive transfer station network in key gold mining regions, including Asia Pacific, US, Canada, Latin America, and Africa, with expansive in-country commercial and technical teams providing an extensive support network. Orica adds that it brings the opportunity to expand customer relationships and solutions offered across the mining value chain. It also will allow the application of Orica’s digital and technical expertise in ore monitoring and processing to provide value-added services, plus an enhanced ability to service mining customers with a broader suite of products and services across the mining value chain.

Caterpillar Mining’s MINEXCHANGE 2024 experience will emphasise customised solutions for miners

Bulk handling, Communications in mining, Environmental, Equipment maintenance, Mining consumables, Mining equipment, Mining maintenance, Mining safety, Mining services, Sustainable mining

MINEXCHANGE 2024 SME Annual Conference & Expo sponsor, Caterpillar, says it will showcase to conference attendees how Caterpillar Mining evolves to meet the challenges faced by today’s mining companies. “Through offering the right equipment, services and technologies required at the site, Caterpillar Mining meets miners’ needs with customised solutions.”

Showcasing the importance of developing a safety culture within the workplace, Caterpillar is highlighting its resilient safety culture programs from Caterpillar Safety Services at MINEXCHANGE. Subject matter experts will be available to walk attendees through the four components of a resilient safety culture – Mindset, Ownership, System and Leadership. “Caterpillar Safety Services works with organisations on their journey to safety excellence, helping them make the workplace safer, their employees feel more valued and their operations more effective.”

Beyond its 1419 exhibit, Caterpillar subject matter experts are set to deliver multiple presentations during the MINEXCHANGE technical program. Found under the conference’s Inclusion & Diversity and Mining & Exploration segments, presentation topics include equipment management performance metrics, leveraging technology, the mine site of the future, mentorship, diversity, and production dozing.

Scheduled presentation topics, locations and times, subject to change, include on February 27 ‘Mine Site of the Future: Considerations for Building an Electric Mine’ from Trenton Lauer. The talk will highlight how the transition to electrification poses substantial challenges to electrical infrastructure. “Strategic planning and placement of in-pit energy transfer infrastructure and understanding intelligent machine assignment are critical to optimising productivity for a battery electric fleet.”

On the same day, Yiwen Hurr will present on ‘Dozers in Action: Leveraging Production Dozing in Mining Applications.’ Dozers can be used as a primary production tool for certain applications. Hurr will compare dozing techniques and considers various applications in which dozers can help improve productivity.

Another Caterpillar talk on February 27 will cover ‘The Power of Mentoring: A Catalyst for Professional Development,’ presented by Flor Rivas. As a minority in the mining industry, Rivas shares personal examples of how mentorship plays a key role in personal and professional development. The presentation also covers Caterpillar’s efforts to help individuals navigate and advance careers in mining, while making the industry more diverse.

The final talk on that day will cover ‘Attracting Diverse Talent to the Mining Industry’ and is being given by Sarah Loomis. “While the industry struggles with attracting diverse workforces, studies show diversity leads to a high performing, highly engaged workforce. The presentation explores how autonomous operations with centralized control rooms offer more of a chance to find and retain diverse talent.”

Moving to February 28, John Hoffman will cover ‘Mining Equipment Management Performance Metrics Interpretation & Action.’ Performance metrics are critical tools to measure the efficiency and effectiveness of the maintenance department. Hoffman will cover how to interpret top-tier metrics for maintenance and repair processes, how to identify opportunities and logical steps to define what actions to take.

The final Caterpillar talk, also on February 28, is titled ‘Mining and Technology – How do the Fundamentals of Your Mining Operations Measure up?’ and is being presented by Robert Riggle. Technology moves the mining industry on many fronts. Riggle will review in detail four key areas – payload, cycle time, operator effectiveness and hourly efficiency – that drive high productivity and lower costs per ton for surface and underground mining haul trucks and loading tools.

MacLean Equipment USA to highlight product innovation at SME 2024

Base metals, Bulk handling, Environmental, Equipment maintenance, Explosives and blasting, Mine shafts and equipment, Mineral project development, Mining equipment, Mining maintenance, Mining safety, Mining services, Precious metals, Sustainable mining

MacLean Equipment USA, the US-based business of the global manufacturer MacLean Engineering, will be sharing its mining equipment innovation expertise at two technical sessions at the upcoming SME 2024 convention in Phoenix, Arizona, from February 25-28.

US Branch Manager Tara MacLean will be chairing the Applications and Design Considerations for Battery Equipment in Mining, on February 27. MacLean Product Manager Jonathan Lavallee will be presenting Improved Operations, Reduced Consumption, Safer Results: Next- Generation Shotcrete Technologies on the same day.

Since opening a full-service branch in Elko, Nevada in 2019, MacLean says it has been building out its local parts and support capabilities across the western US hubs of underground mining. The MacLean product line for underground mining support vehicles includes ground support, secondary reduction, and utility vehicles. Since 2016, the product line also includes a full fleet of battery electric options. To date, the MacLean EV Series fleet has collectively logged close to half a million operating hours with customers, and by the end of this year, MacLean will have shipped and commissioned over 100 of its EV Series units around the globe.

“We have a great story to share, both of our commitment to building out a team and a support infrastructure in this part of the mining world, as well as around our OEM innovation, which for the first 50 years of our company existence has been focused on making the underground environment safer for miners,” notes Tara Maclean, Branch Manager, Elko, for MacLean Equipment USA. “This ethos will continue to be our foundation for product development for the next 50 years, as we leverage technology in a smart and effective way when it comes to mobile equipment in the underground mining environment.”

“Our shotcrete technology advances in the areas of thickness scanning and dosing control, are great examples of what we call ‘MacLean AI’, which to us means, Application Intelligence, in other words, design the right piece of mobile equipment for the right job underground,” adds Jonathan Lavallee, Shotcrete Product Manager at MacLean. “Mining conferences like SME offer up a great opportunity to help move the needle on safety and productivity advances across the US mining industry, and we’re honored to be on the frontlines of this conversation.”

 

Sea trials complete for MinRes’ inaugural iron ore transhipper

Bulk handling, Mineral commodities, Steel and iron ore

Mineral Resources (MinRes) has commissioned its first transhipper – MinRes Airlie – after successfully completing sea trials. The innovative transhippers are an integral part of the transport solution for its Onslow Iron project, which it says will unlock billions of tonnes of stranded iron ore in the west Pilbara region.

Sea trials included testing the Articulated Tug and Barge (ATB) system, with the tug successfully interlocking to the barge to power the transhipper. Other manoeuvres tested included speed, turning angles, time to stop and checks of the navigation and mechanical systems, with trials held off the coast of Ningbo Zhoushan port in China.

MinRes Executive General Manager Marine Jeff Weber said it was fantastic to commission the first bespoke transhipper. “This is an important milestone for the Onslow Iron project, with the delivery of our first transhipper on time and on budget, with the ATB system proven technology. The sea trials are an opportunity for us to ensure all systems are working as they are intended to, with safe operations our utmost priority. The shallow-draft transhippers are pivotal to making the Onslow Iron viable, with transhippers significantly reducing the project’s environmental footprint and capital investment, compared to dredging a deep-water port.”

Sea trials for the remaining transhippers will occur in a staged approach, with the first two vessels due to arrive at the Port of Ashburton in the coming months to commence operations mid-year. The transhippers, named after islands off the Pilbara coast, were designed by MinRes with the support of naval architects and engineering firms based in Australia and Canada. Once fully operational, the fleet of seven transhippers will be one of the largest and most sophisticated transhipping operations in Australia. Onslow Iron is projected to ship around 35 Mt of iron ore per year, with an expected mine life of more than 30 years.

 

Extrakt and Bechtel partner to commercialise TNS™ solid-liquid separation technology

Environmental, Mineral processing, Mining consumables, Sustainable mining, Water management

Extrakt Process Solutions, LLC (Extrakt) and Bechtel Energy Technologies & Solutions, Inc (BETS) have announced their new strategic global alliance. This new partnership marks a significant milestone in the commercialisation of Extrakt’s solid-liquid separation technology, known as TNS™, by leveraging Bechtel’s trusted experience in engineering and delivering solutions worldwide. The partners say TNS “addresses the long-standing challenges of mine tailings, dewatering, and product recovery in a sustainable and effective manner.”

Bechtel will identify commercial opportunities and provide engineering services to support the alliance, catering to both existing and new customers in the Energy and Mining & Metals sectors. Meanwhile, Extrakt will continue to advance the TNS technology, manage intellectual property, and offer technical services to ensure the success of the partnership.

“Bechtel’s strategic alliance with Extrakt for the commercialisation of TNS demonstrates our commitment to helping customers deliver on their environmental, social, and governance objectives,” said Faisal Mohmand, President of BETS at Bechtel. “We are proud to bring this solid-liquid separation technology to the global market to support the energy and mining industries, address long-standing challenges, and drive sustainable practices for future generations to thrive.”

“We are thrilled to team up with Bechtel in the global rollout of our technology, as they are an ideal partner to deliver this transformative solution to our customers,” stated William R. Florman, CEO of Extrakt. “TNS, born out of our response to industry dynamics, is a resilient and sustainable solid-liquid separation technology that effectively addresses dewatering challenges prevalent in mining and metals recovery operations. TNS will continue to perform well in presence of clays, making it a versatile and robust solution for delivering notable increases in high-value minerals throughput, cost savings, and reduced environmental impact – a significant departure from conventional practices.”

The TNS technology Extrakt says has undergone extensive evolution, marked by advancements in metal recovery, equipment, and water management, and has garnered more than 40 global patents. This innovation creates valuable new options for customers who previously lacked viable solutions for their energy and mining operations. By recovering minerals and materials from previously classified waste, this technology empowers customers to fulfil their sustainability commitments, reducing reliance on virgin resources and embracing an approach that both conserves natural resources and minimises the environmental footprint linked to mining operations.

Not much detail on TNS has been given other than: “Extrakt Process Solutions has a process to dewater and consolidate tailings. Unlike other methods used so far, this process achieves a solids content of greater than 75% quite easily. Originally, this was achieved through the use of ionic liquids (ILs). A more recent form of the process uses solutions of ILs together with small amounts of an additive.”

 

SMS Equipment to handle Komatsu UG hard rock mining equipment in most of Canada & Alaska

Equipment maintenance, Mine shafts and equipment, Mining equipment, Mining services

SMS Equipment and Komatsu have announced new agreements naming SMS Equipment as as dealer of Komatsu underground hard rock mining equipment across most of Canada and in Alaska. SMS Equipment is already the dealer for Komatsu surface mining equipment in these areas.

The new deal with Komatsu expands the SMS Equipment offering to include a portfolio of underground mining products and services among our strong lineup of equipment, advanced technologies, parts, service and support for the mining sector. “The transition of Komatsu’s hard rock mining portfolio to SMS Equipment is an exciting development in our relationship in Canada,” says Dennis Chmielewski, Executive Vice President, Mining at SMS Equipment. “With the expansion of our product lineup, SMS Equipment is now positioned to serve Canada and Alaska’s diverse mining needs, whether surface, underground or a combination of the two.”

Saskatchewan and Ontario are exceptions to underground mining deal. Those provinces will continue to be served by Komatsu directly. “Komatsu and SMS Equipment have a shared goal of maximising value to underground mining customers,” says Kyle Rhoderick, GM of Underground Hard Rock Mining at Komatsu North America. “In markets where we can enhance value, we’re pairing Komatsu’s equipment with SMS Equipment’s extensive distribution network, support specialists and convenience services.”

The transition of customers and products to SMS Equipment began in Quebec in February 2024. Both the product line and service area will expand throughout the year, with full service to eight provinces, three territories and the state of Alaska expected by 2025.

SMS Equipment adds: “The new portfolio of underground hard rock mining products joins our diverse offering for the mining sector. It launches with a range of Komatsu-owned conversion equipment and technology, like Montabert, as well exclusive Komatsu underground hard rock mining equipment, including underground LHDs, trucks, drills and shaft equipment. Parts and service will also be provided to support the new lineup as it rolls out across the network.”

BHP greenlights Western Ridge Crusher Project to sustain Newman Operations

Bulk handling, Mineral commodities, Mineral processing, Mineral project development, Mining services, Steel and iron ore

The BHP Board recently announced approval for the Western Ridge Crusher Project (WRC), located on Nyiyaparli Country, approximately 21 kilometres southwest of Newman. The Western Ridge Crusher is a sustaining tonnes proposal for Newman Operations.

BHP WA Iron Ore Asset President Tim Day said this was a significant milestone and project, with an expected total investment of US$943 million (100% basis). “We expect to award more than US$45 million (100% basis) in contracts to local and Indigenous businesses – both via BHP direct and indirect engagements. This will achieve significant social value for the communities in which we operate,” he said.

First production is expected in in Q1 FY2027, and the project is expected to deliver an average of 25 Mt/y providing around 12 years of products for WAIO to replace production from depleting orebodies around Newman. The project scope includes new ore processing and transportation infrastructure, including construction of a new 30 Mt/y primary crusher and a 12 km overland conveyor to transport the ore from the Mount Helen and Silver Knight iron ore deposits to the Newman West ore processing hub.

There are four deposits in all that will be mined using conventional open pit methods. In more detail, iron ore from Eastern Syncline and Bill’s Hill deposits will be transported via road to one of Mt Whaleback’s existing primary crushing and ore handling plants (OHP) facilities, namely OHP2, OHP5 and OHP3. Ore from Mount Helen and Silver Knight will be crushed in the new primary crusher and transported via the overland conveyor back to the existing Mt Whaleback coarse ore stockpile (COS) for processing through OHP4, prior to being transported via rail to port.