All posts by Paul Moore

Mineral processing technology specialist AKW looks back on 60 years of evolution and success

In today’s economy, businesses are facing great challenges to remain one of the best in their field of expertise. Nevertheless, over the last 60 years, AKW Apparate + Verfahren GmbH (translated AKW Equipment + Process Design) has managed to build up a strong reputation and become an important player in the field of customised process design and equipment manufacturing for wet mechanical mineral processing applications.

One of the key assets contributing to the success story of AKW Equipment + Process Design has always been and remains its experienced team. Thibaut Richard, General Manager at AKW Equipment + Process Design recently looked back on its 60 years of success in the world of highly customised wet mechanical treatment solutions in a company interview.

Thibaut Richard, General Manager at AKW Equipment + Process Design

Q Can you summarise the past 60 years of history and success at AKW Equipment + Process Design?

Already more than 100 years ago, kaolin, feldspar, and silica sand were being produced in Hirschau, which is located in the north of Bavaria, Germany. This is also where AKW Equipment + Process Design was founded in April 1963 to support the local industrial mineral resource producers in multiple ways: to improve current production performances, invent new processes for new products and applications, debottleneck existing process steps, and much more. Up to today, our headquarters and major engineering resources are still located in this area. This loyalty to the local region would not have been possible without the strong, long-lasting involvement and support of the company’s owners and principal shareholders – the brothers Thomas and Johannes Heckmann – who are originally from Hirschau and still live locally. Step by step, the success and reputation of the company has also naturally led to the supply of international projects across the world. This has made the company what it is today: one of the leading specialists for high-quality equipment and plants for the wet mechanical processing and valorising of mineral resources.

Q: Compared to its beginnings, where is the company now in terms of global reach?

Since our founding and as per the nature of our business, we have been taking a proactive approach to the issue of globalisation and the opportunities it represents. As a result, nowadays the company continues to benefit from the set-up of Shanghai AKW Separation Process Equipment Co Ltd, a very successful JV in China, with AKW holding a majority stake, that celebrated its 15 years anniversary in 2021. As environmental-related technologies and process solutions have become increasingly important for the Chinese market, we also founded a new company in Shanghai called VORTEX in 2020 that would exclusively focus on and deal with these matters. Furthermore, we benefit from two important sales and service offices for the CIS and Middle Eastern regions, as well as a pool of professionals and competent agents in those regions. The sales mix evolution – nowadays with a minimum of 50% of our annual revenues generated outside of the EU – has shaped our corporate culture, capabilities and resources accordingly, positioning us today as a well-established, globally reputed, successful EPC player with loyal customers and hundreds of executed plants worldwide.

AKA-SPIDER equipped with AKA-VORTEX hydrocyclones

Q: How important is your internal testing capability in terms of innovation?

Over time it has become clear that our technical centre equipped with both physical and analytical capabilities and spread over a 900 m2 area with six dedicated staff was highly beneficial for our daily business. Although it is difficult to generate impactful innovations in the wet mechanical processing sector, breakthroughs can still be made. Working on mineral processing with a fully equipped technical centre, where both lab-scale and pilot-scale test works can be organised, gives us unique insights to improve our existing knowledge as well as staying close to the market’s concerns to allow us to evolve requirements and find the best solutions to our client’s problems. AKW Equipment + Process Design is one of the few companies to benefit from such an internal asset that enables us to turn around a complete wet mechanical treatment solution from concept to realisation. On an annual basis, we carry out more than 300 tests in our technical centre, with material samples coming from all geographical areas.

Q: Can you share some of the groundbreaking milestones for AKW Equipment + Process Design over your 60 years of business?

If we focus on company milestones, we should start in 1986 when we became fully independent from any industrial group. In 2005, we then relocated to our newly constructed main office premises where we also built our new state-of-the-art technical centre and laboratory in 2011, bringing us to another level of expertise and position in the market. In terms of markets and project successes, there have been multiple milestones reached. Firstly, we became one of the major players worldwide in hydrocyclone solution design. Furthermore, we developed unique expertise in the fields of clay and silica sand treatment, plus introduced new classification solutions for alumina processing. We were also the first to recycle blast furnace sludges, for which we were granted a European award. We also developed and implemented the first soil-washing recycling plant in the leading Swiss market and began supporting coal-fired power plants to improve their environmental footprint through the so-called flue-gas-desulfurisation process. Last but not least, we erected the first plastic recycling installation for pre-separation of plastics from household waste back in the 1980s in Germany. Some of the process solutions designed by our company over time still constitute nowadays a best-in-class and a clear benchmark reference point. This shows how strong our know-how, reliability, and success have been.

Q: Is digitalisation having a major effect on your business development?

Yes, more recently, we started being exposed to the digitalisation megatrend. This new feature is definitely bringing advantages for some of our process solutions, for example, in 2023 we have developed and released a new and revolutionary software approach for our AKOREL free-fall classifier system. However, I also believe that we must remain cautious – we are not just increasing the digitalisation level across all our equipment and solutions too quickly, especially where the results are not proven. Digitalisation at AKW Equipment + Process Design will never dictate the customer experience, but rather improve it in a meaningful way.

Q: What is your outlook on the future for AKW Equipment + Process Design?

Many companies strive to keep growing and growing. At AKW Equipment + Process Design, we recognise the need to remain profitable to retain our ability to invest in new resources, ideas, partnerships, and manufacturing capabilities. However, this focus on growth should not be done at the expense of our service and customer focus. In a similar way, we have always sought to position ourselves as a company offering customised and tailor-made solutions, and we do not intend to move away from this aim. The way our solutions and technologies can impact the environment is also becoming of growing concern, and already requires our engineers to think differently about some of our proposals and integrate new recycling and optimisation loops. These are both new challenges as well as outstanding opportunities, to anchor the company in the next chapter of its development. The frugal approach which we have for growth and profit generation, supported by our shareholders, is the best way to move forward for sustainable growth and success. We are proud of what we have achieved over the past 60 years and are excited about what’s next – a future full of innovations, success, collaborations, and great teamwork.

Kal Tire’s Mining Tire Group on the true cost of tyre service work & its optimisation

Data driven insights are providing new possibilities to optimise the servicing of mining tyres, cutting downtime and costs, and improving safety. Mark Goode, Director for Business Insights at Kal Tire’s Mining Tire Group, recently presented some interesting study results in a white paper in which he also makes the case for leaning on the data.

Goode states: “Tyre management is a critical part of safe, productive mining operations. Effective service strategies not only maximise mining tyre performance by reducing the risk of failures and extending their useful life but, through optimising the frequency and nature of tyre service work, mines can potentially lower their operating costs, increase workforce safety and improve their overall efficiency.”

Traditionally, he says mining tyre service strategies have centred on maximising tyre life. “This not only speaks to the cost of tyres and the desire for each operation to get the most from its assets, but also the way in which the tyre industry is structured. Tyre manufacturers usually base the performance of their products (and compare them to competitors) on a cost-per-hour basis, and so this is a metric that mines, and tyre distributors, have tended to focus on. However, times are changing. Recent years have seen a degree of disintermediation in tyre supply and many mines are now opting to purchase tyres directly from manufacturers. This has shifted the industry dynamics and has meant that some tire distributors are now placing a greater emphasis on the service elements of their businesses. This is a good thing for mining companies, because it means they can (if they wish) examine and optimise their tyre service strategy independent from their supply strategy.”

Although Goode argues that the two will always be inherently linked, he says optimising them separately provides potential opportunities to redefine success in each area, widening the scope to better reflect each site’s priorities and objectives. “Further to this, there is important consideration to be given to operational safety. Safe production is always a higher priority than production in and of itself. The ability to measure and value safety allows it to be accounted for and embedded into maintenance activities, demonstrating greater responsibility towards the workforce.”

Looking beyond tyre life

Goode adds that tyre manufacturers are primarily interested in maximising the life of their tyres, while mines are primarily focused on productivity. “Extending tyre life is generally good for productivity, but it’s not always the case. There are several other things to bear in mind.”

While tyre service providers can have a significant impact on tyre performance, there are other factors that may play a more fundamental part in determining ultimate tire performance. Operational decisions, for instance, in haul road maintenance or pit design, the experience of truck operators, climatic conditions and the choice and quality of tyre, also play their part. Likewise, commodity cycles have a big influence; production strategies driven by the price of the commodity and the availability (or scarcity) of mining tyres both impact on how tires are treated. There’s a fine balance to be struck between production and the maximisation of tire performance, and the former is often detrimental to the latter.

“Typically, ultra-large mining tyres are removed from service either because they fail, or they’re deemed unsafe to continue due to damage,” said Goode. “Approximately 90% never get to worn out, and there’s a clear correlation between the price of commodities and tyre life: when prices are high, mines focus on productivity at the cost of tyres and, when prices are low, there’s a greater emphasis on cost cutting and protecting assets through activities like repairs.”

Whatever the focus from a tyre management aspect, there are certain activities that service providers typically incorporate, such as tyre rotations. These are critical not only from a safety point of view, but also in maintaining a sufficient inventory of spares. Additionally, tyre performance can be extended through repairs and retreading. However, all these activities require downtime and that comes at a cost. “When mines agree on a tire management strategy with their service provider, it’s important that they consider what success will look like,” said Goode. “They should determine whether they would like to maximise performance or productivity. Most operations want both, but that’s difficult to achieve.”

The true cost of tyre service work

Downtime for both planned and unplanned tire service work can have big impacts, both directly, through operational costs, and indirectly through potentially unnecessary additional downtime events. “Downtime can affect utilisation, and utilisation can affect productivity. While mines have always understood this, it’s only in the past five years that tyre service providers have developed the tools to provide greater visibility on the cost of downtime associated with tyre servicing. New generation tyre management software linked to the mine plan mean that it’s now possible to accurately calculate the cost of downtime associated with tyre service activities. This is critical because, for many mines, profit margins are gradually eroding as resource grades deplete and the cost-per-ton of material moved increases. In short, mines need to plan their maintenance activities as efficiently as possible, including their tyre-related service work. “Most tyre-related management systems are optimised to measure how long tyres last given the operating conditions,” explained Goode.

“They don’t track, for example, how many times a tyre is changed during its life or put a cost to each of those events, which we can do now. The introduction of Kal Tire’s Tire & Operations Management System (TOMS) in 2016, means that we can now tell mines how much it costs them in availability every year to service their tyres. That information is powerful in identifying opportunities for improvements.”

Optimising tyre servicing

The ability to put a value on downtime means that information can be used to create a tyre service strategy which is optimised for each site in any given time period. The strategy that each mine chooses and the priorities it’s based upon will drive the number of downtime events for tyre work and how often trucks are brought out of service. And, just as a business’ objectives evolve over time in response to market conditions, so too should the site’s tyre service strategy. “As an industry, we’re not great at planning tyre maintenance work,” said Goode. “Today, we often have the data required to optimise that work, but most mines struggle to utilise it.”

He adds: “For example, if a mine has a fleet of 100 trucks, and there are 500 tyre service jobs that need to be completed per year, there will be months when the same truck is brought down multiple times for service work and only one job completed per event. There are mines where the cost of downtime runs to thousands of dollars per hour, so the cost of those extra downtime events can very quickly add up.”

Tyre service work is a maintenance activity & should be treated & optimised in the same way as any other maintenance activity

Planning and optimising service intervals to coincide with other work on the truck – for instance, planned mechanical services – not only makes good sense from a financial perspective, because it minimises downtime, but there’s also a safety benefit. “A site that’s bringing trucks down more often will be placing greater stress on its tyre crew than one that’s able to aggregate its service work and have fewer downtime events. Unplanned work, for instance, when a tyre is run to the point of failure, could also mean that service crews must be dispatched into the pit.”

This places them at greater risk of harm and should be avoided wherever possible. “Tyre service work is a maintenance activity, and it should be treated and optimised in the same way as any other maintenance activity on site,” added Goode. “From a business perspective, this is low hanging fruit; mining companies always have one eye on improving their operational efficiency, and here is an element that can be optimised relatively quickly and easily using the tools that are available today.”

Real sites, real potential

Kal Tire uses aggregated and anonymised datasets from TOMS to benchmark performance between the sites it services, and it’s worked with several customers to prove how effective tyre service optimisation can potentially be. “Let’s look at the numbers from two real sites,” said Goode. “We’ll call them site A and site B. Both sites were running 57 in haulage truck tyres. Site A focused its service strategy on reducing the number of times it bought trucks out of service for tire work. It planned, aggregated and scheduled the work more effectively than site B, which focused its strategy on maximising tyre performance.”

“Site A changed its tyres an average 4.3 times during their lifetime, while site B changed its tyres just over 6 times, and we can quantify the impacts of that difference in service work. The extra service time at site B generated a 13% year-on-year increase in tyre performance and saved the mine US$500,000 in new tyre spend. But its technicians were exposed to potential safety hazards for 41% more time than at site A. Meanwhile, site A saw a 5% year-on-year decrease in tire performance. However, based on reasonable estimates of downtime costs, the additional utilisation created by optimising service work was worth up to US$10 million. That’s a significant value add opportunity and improvement in safety through reduced exposure hours.”

This example illustrates that the ‘what’ and ‘when’ of tire service work matters; combined with effective planning and scheduling, it can add more value under certain circumstances than focusing on tire performance alone. The ability to review the impact of tire service strategy on tire performance and operational safety allows mines to quantify the impacts of their choices, ultimately allowing them to make more informed decisions.

Power to the people

In summary, Goode says it’s not usually possible to maximise both tyre performance and utilisation; one will nearly always come at the expense of the other. “However, using the management systems and insights available today, mines can strike an acceptable balance between the two, which allows them to meet both their safety and financial goals. Importantly, the ability to model and quantify these impacts allows teams to build a solid business case which supports their decisions. The availability of this data also helps to promote more unified ways of working.” For instance, the ability to demonstrate the impact of changes in service decisions on both tyre budgets and downtime costs can help to manage the differing priorities of maintenance and production teams. “The most important thing in tyre strategy is to choose one,” said Goode. “For some mines, tyre performance may be the priority while, for others, fleet productivity will be king; there’s no right or wrong answer. Either way, the tools we have today ensure that once a decision is made, we can monitor and adjust the strategy to drive the most amount of value for each site, whatever the circumstances.”

Hydro Paragominas expands fleet of electric vehicles at bauxite mining operations

As part of its decarbonisation by 2030 strategy, the bauxite mining company Hydro Paragominas, in Pará, is becoming increasingly aligned with the trend of electric transport. The most recent addition, in partnership with Irmen Máquinas, was the acquisition of two 100% electric SANY SKT90E trucks, each with a capacity of 60 tons.

“Compared to the 8×4 model used, with a capacity of 36 tons, each electric truck represents a reduction of about 190 tons of CO2 per year and has about 12 hours of autonomy per charge. Its performance within the mine’s routine in different scenarios and climatic conditions will be evaluated in the coming months,” explains Edil Pimentel, Mine Operation Manager at Hydro Paragominas.

The arrival of the battery electric trucks is another action on the list of initiatives of the mining company to contribute to its decarbonisation by 2030 strategy. Another measure has been a change in the structure of the mine’s light vehicle leasing contract, replacing 50% of the diesel combustion fleet with ethanol combustion vehicles. Hydro Paragominas also acquired this year 10 electric light vehicles, replacing conventional models fuelled with diesel.

“The acquisition of electric cars means a reduction of 120 tons of CO2 per year, representing 332 trees planted in the same period. By changing the fuel, we also reduce 575 tons of CO2 in the environment. And we continue researching new alternatives in the market to reduce the use of diesel in operations,” comments Eduardo Pedras, Infrastructure Manager at Hydro Paragominas.

Another step that has been taken at Hydro Paragominas inolves the buses used to transport employees to and from the city and within the mine. Eight vehicles have been equipped with an innovative 100% electric air conditioning system. The tech was incorporated by the transportation provider Caliman with the aim of supporting Hydro’s goal of reducing CO2 emissions. The system will operate on a trial basis with the expectation of expanding to 100% of the fleet serving the mine, generating an estimated reduction of 220 tons of CO2 per year, according to the contractor. “Our expectation is to reduce the cost of maintenance of the devices, reduce the vehicle downtime for maintenance, achieve lower fuel consumption and contribute to mitigating CO2 emissions,” comments Thiago Caliman, Director of the transport company.

Hydro is the first mining company in the country that will use technology developed by the Santa Catarina company Innovaklim. The new cooling system works with an electric compressor and battery power, which reduces fuel consumption in vehicles. One of the buses has a combined system with photovoltaic panels for the use of solar light as electric energy for the vehicle. The current fleet serving Hydro is 35 buses. After the test period with the new air conditioning devices, the change for the rest will be evaluated.

“Users will notice less noise and more thermal comfort. For companies, optimisation of time and maintenance costs, in addition to greater vehicle availability. Hydro Paragominas is always looking for technologies that improve safety, well-being, and productivity within the mine and fortunately, our suppliers and partners have bought into the idea of sustainability and are investing to be more competitive in the market, we are happy to encourage these practices,” concludes Pedras.

Komatsu’s strong roots and market strength in Latin America mining

Komatsu Ltd has long had a strong position in the Latin American mining market, and its Senior Executive Officer and President, CE Marketing Division, Yasuji Nishiura, recently gave some good insights into its depth of presence in the region in a presentation.

He says Komatsu has established a high-profit business model in the Latin American region by directly engaging with mining users through Komatsu owned distributor, facilitating investments, direct contact and contract services. The Latin American region has become the second-highest revenue-generating area for Komatsu after North America on a global basis.

Although the Latin American region accounts for approximately 10% of the global demand for construction and mining equipment, the Latin American sales ratio for Komatsu in FY2023 is projected to be 18%. Not only that, but within the Latin American market, the mining business holds a significant share of 70% of the total sales, compared to construction and others at 30%). This 70% for mining is broken down into equipment (16%), parts (24%) and service (30%).This is compared to the world as a whole where mining accounts for 43% of total sales, made up of equipment (14%), parts (18%) and service (11%).

The Komatsu TBM being developed for Codelco’s Chuquicamata Underground during QA testing

Nishiura then looked at some background. Komatsu’s first overseas export was to Argentina in 1955. In the 1970s, Komatsu established its first overseas factory in Brazil, marking a long history in the Latin American region. In recent years, Komatsu has expanded its direct distribution business model, primarily focused on mining, which was initially established in Chile in 1999, and later expanded to Mexico (2016), Peru (2009 – 40% share of Komatsu Mitsui Maquinarias Peru), Colombia (2016), Panama (2018) and Brazil (2013).

On a country by country basis, Komatsu has about 1,100 electric drive mining trucks operating in Chile alone, and about 100 large rope shovels, drills and underground equipment, plus about 350 large construction equipment like dozers and graders. Komatsu’s distributorship in Chile is the first directly operated distributorship in Central and South America. A large quantity of equipment and personnel have been deployed in Chile to support large-scale mining operations plus a business model has been established to provide direct sales & services to mining customers, resulting in a stable and high absorption ratio over 300%. Komatsu has over 9,000 employees in Chile which is its largest workforce after Japan – even ahead of the USA.

About 50% of the mining equipment in Chile is under a service contract. The main reman centre is in Antofagasta which carries out major component overhaul on engines, transmissions, cylinders etc. The same plant format used there has also been expanded to Mexico, Colombia, and Brazil.

Moving on to Brazil, in the construction equipment market, Komatsu has been utilising local distributors for operations since the 1970s (currently working with 7 distributors). In the mining sector, Komatsu acquired the mining division of a local distributor in Brazil in 2013 & established direct operations, followed by further investment.

Komatsu started production at its first overseas factory in Brazil in 1975 which is KDB Suzano. Production approximately 3,000 units of 34 different models per year, not only for the domestic market in Brazil but also for North America, Europe, and countries in Central and South America. This is mainly hydraulic excavators, wheel loaders and motor graders, in addition to being the worldwide manufacturing and distributing base for medium-sized crawler tractors exported to all continents.

To strengthen its relationship with major mining users, Komatsu is actively promoting investment and enhancing its operational bases. Its main repair centre in the north is Parauapebas but it will be opening a new, larger facility there in 2024 following an investment of over US$7 million. It also has a large remain centre in Sao Paulo and in Belo Horizonte has an office and repair centre, but is also building a new facility set to open in 2025.

Latin America has also been a trailblazer for Komatsu in terms of autonomous haulage – the first location in the world for any AHS with test operations at Codelco Radomiro Tomic in 2005 (which has been followed in 2022 by more trucks) then the first commercial operation at Codelco’s Gaby in 2008. Today Komatsu has over 100 AHS trucks in Latin America, mainly 930Es but also 980Es, across 9 sites – including Vale Carajas (2019) and Anglo American Los Bronces (2022). IM‘s understanding is that the full list of other sites covers Glencore Lomas Bayas, AMSA Centinela, Collahuasi, BHP Escondida and BHP Spence. Komatsu also opened an AHS support centre in Chile in 2020. From May 2023, commercial operation of large-scale ICT bulldozer remote control also began at Anglo American’s Minas-Rio iron ore mine in Brazil.

In hard rock cutting innovation, Komatsu is developing a Tunnel Boring Machine (TBM) aiming for a step change in underground mining operations. It features no blasting (safety), no batch (productivity), and no diesel (environmental friendliness). Building upon conventional tunnel excavation technology, it incorporates new capabilities such as sharp curve handling, reversing and crossing excavation. Quality assurance is expected to be completed by 2024, with a trial scheduled to begin in 2025 at Codelco’s Chuquicamata Underground in Chile.

 

Capstone Copper achieves first ore through primary crusher at Mantoverde Development Project

Capstone Copper Corp says that commissioning activities are underway at its Mantoverde Development Project (MVDP) in Chile. The company says it is focused on a safe, efficient and phased project commissioning and ramp-up. MVDP will increase the company’s consolidated copper production by over 40% with a significant decrease in unit operating costs.

John MacKenzie, Capstone’s Chief Executive Officer, commented: “I am pleased to announce that construction of all elements of the project that are required to commence commissioning are complete. The project is on-time and we reaffirm our $870 million total capital cost guidance. This marks an exciting time for Capstone, MVDP is transformational for our business and provides the base for incredible growth in the Mantoverde-Santo Domingo District.”

On November 29, first ore was introduced to the primary crusher. Mantoverde will continue to systematically commission the concentrator plant and is on track to reach nameplate production levels of 32,000 t per day by mid-2024.

Cashel Meagher, Capstone’s President and Chief Operating Officer, commented: “We just completed our hiring process for an experienced workforce of over 130 skilled individuals to run the sulphide operations. Our operating team is working with Ausenco to safely and efficiently ramp-up production.” Capstone’s consolidated production, cost, and capital guidance for 2024 will be released in late January.

The existing Mantoverde project consists of heap and dump run of mine leaching and conventional SX-EW to treat oxide ore that has been producing high-purity LME Grade ‘A’ copper cathodes. The mine consists of four pits situated along the Mantoverde fault, each of which contains both sulphide and oxide ores.

The MVDP is increasing production from approximately 49,000 t of copper (cathodes only – April 1 to December 31, 2022) to a run-rate of approximately 120,000 t of copper in 2024. A new concentrator plant is treating sulphide material to produce copper concentrate while oxide ores will continue to be treated in the existing SX-EW plant. Mining continues to use conventional open pit operations using truck-and-shovel technology.

The MVDP is processing sulphide ores in a concentrator with a capacity of 12.3 Mt/y and the project has been progressed under a lump-sum turn-key engineering, procurement and construction (EPC) contract with Ausenco.

 

LKAB selects Sandvik to supply Svappavaara with complete autonomous surface drilling solution

LKAB has taken an important step towards streamlining surface drilling at the Leveäniemi open-pit mine in Svappavaara, northern Sweden, selecting Sandvik Mining and Rock Solutions to supply a complete autonomous solution. The order includes three Leopard™ DI650i down-the-hole (DTH) drill rigs with AutoMine® readiness, My Sandvik Onsite data analytics, rock tools and technical expertise and maintenance service.

Sandvik will provide education and training on the new systems, which will be commissioned on an ongoing basis, as well as technicians on site during operation to help ensure high availability. Drill rig deliveries are scheduled through the end of 2023. “We have made a strategic choice to implement automated surface drilling technology in cooperation with Sandvik,” said Anders Nyberg, Section Manager LKAB Svappavaara. “We look forward to continue testing the latest digital technology in Svappavaara.”

In addition to a Sandvik office, a service workshop will also be established on site, equipped with a grinding machine and DTH hammer service tools, to help ensure maximum, cost-effective utilisation throughout the life of the hammers and bits.

“This full-service agreement ensures that the drill rigs are optimally utilised and that Sandvik service technicians are on site to provide full support year round,” said Andreas Östdahl, Key Account Manager, LKAB for Sandvik Mining and Rock Solutions. “By taking advantage of automation and more efficient DTH rock tools, LKAB can achieve ambitious drill metre targets.”

Leopard™ DI650i drill rigs are equipped with Sandvik’s iDrill technology, a scalable automation platform that supports fully autonomous operation, streamlining the drilling process and ensuring high-quality results. The technology covers all stages of the drilling cycle, from automated boom positioning to drilling, rod handling and hole finishing.

The new technology enables not only increased productivity but also reduced environmental impact, with the DTH hammers and drill bits complementing the solution.

“Sandvik drill bits are equipped with our PowerCarbide® inserts, which not only provide better drilling productivity but also superior service life,” Östdahl said. “This, together with our program for circular recycling of drill bits and inserts, supports our common goal towards more sustainable mining.”

Here come the hybrids? Underground operators and interim solutions on the road to net zero

A recently published article from the Electric Mine Consortium (EMC) was titled: Examining the alternate pathways to decarbonising fleet in an underground mine. The author, Michelle Keegan, EMC Manager, stated: “We’re now seeing OEMs who once thought BEVs were the only path, investing in hybrid vehicles. Miners are starting to trial diesel-electric and hybrid loaders, with significant improvements over diesel alternates, while others are looking more closely at trolleys as a result.”

The cited reason – a realisation “that the current charging technology, charging infrastructure and the number of battery swap-outs required to make it up a typical decline will impact productivity, and our desired solution could be up to five years away. We’re still learning about battery technology, our management of risk around it and the real productivity impacts with charging.”

She adds: “Driven by technology available today, hybrid solutions in heavy haul appear to offer a transition technology that will enable lower emissions onsite now, while waiting for technology ready electric solutions . Without requiring additional charge infrastructure, hybrids offer lower emissions, with improved fuel efficiency and productivity. Adoption of this technology can be implemented with limited operational impacts.”

While there is some truth in this – there is also no doubt that the pace of orders for full battery electric equipment from Sandvik and Epiroc in particular, including whole fleets, is rapidly increasing. Caterpillar only this week showed off the 45-t class battery underground truck prototype that will match with its all electric R1700 XE LHD.

That said, some movements in the market and by the key OEMs in 2022-2023 do also reflect a parallel demand for hybrid and diesel-electric machines. To give a few examples – Epiroc in November 2022 announced a MoU with Gold Fields Australia to partner on the development of the next generation of electric drive hybrid underground mine trucks. The companies will work in a formal partnership to develop and test a proof of concept for the 65 t class Minetruck MT65 E-Drive with the aim of having a prototype at Gold Fields’ Granny Smith Mine site in Western Australia at the beginning of 2024.

Then a year later in November 2023, Epiroc announced a MoU with Byrnecut, one of the world’s largest underground mining contractors, to partner on the development of the next generation of electric drive underground loaders. The companies will work together in partnership to develop and test a proof of concept for the large underground loader segment with the aim of having a diesel-electric prototype at a Byrnecut site in Australia.

Similarly in May 2023, Sandvik Mining and Rock Solutions said it was expanding its technology portfolio by developing a diesel-electric range of underground loaders and trucks to complement its battery-electric vehicle offering. “We see the future of underground mining as a combination of multiple coexisting technologies, with different solutions for varying customer needs,” Jari Söderlund, Product Management Director, Division Load and Haul at Sandvik, said. “An immediate switch from diesel to battery-electric is not a feasible solution for every mine and application. Diesel-electric is another technology that can help our customers achieve their productivity and sustainability goals.”

Caterpillar has had success so far with its large electric drive R2900 XE – four units were intially tested in Australia by EMC members. Gold Fields then opted to invest in three Caterpillar R2900 XE diesel-electric loaders for its underground mines in Western Australia. Westgold Resources took delivery of the first commercial R2900 XE at its Midwest operations in Western Australia, as part of an agreement with WesTrac. The mining company has since agreed to purchase another six of the diesel-electric vehicles. And one of three R2900 XEs has already been delivered to MMG’s Rosebery operation in Tasmania, as well.

Bis Industries is now well advanced with its HUGO 80 t underground truck – HUGO stands for Hybrid Underground Operations. It is equipped with an advanced hybrid electric powertrain technology supplied by Danfoss Editron.

Last but not least there is another major player in the room – arguably with the hybrid solution that has been around the longest and has the most real mine hybrid experience. That is Komatsu Mining with its WX18H and WH22H loaders – 18 t and 22 t class respectively, formerly referred to as the Joy 18HD and 22HD.

Their stand out innovation is a Kinetic Energy Storage System (KESS). During propulsion, diesel energy is converted to electricity. Energy flows from the motors and is stored in the KESS unit. During acceleration, both the diesel engine and the energy stored in the KESS can provide the equivalent of one 400 hp engine being boosted by another 550 hp engine. Using this KESS hybrid technology, these LHDs, Komatsu says, consume up to 30% less fuel than diesel machines. This hybrid technology can therefore reduce the need for ventilation. The Switched Reluctance (SR) hybrid drive system in the WX18H and WX22H LHDs also has fewer operating mechanical parts subject to wear and tear.

Another plus point for the machines as highlighted in a review of the 22HD by Mining Plus back in 2018 is their use of ball joints on the main rotation points including the centre hitch, main boom lift pivots, lift ram lower ends and the swing axle joints. This offers an advantage over pin and bush arrangements with a much larger bearing surface and ease of replacement of the wearing surfaces.

Notably the machines have been put through their paces in a number of trials – but arguably some of these were ahead of their time. The Joy 22HD and 18HD were launched way back in 2016 at MINExpo in Las Vegas, but the true commercial demand is only really kicking in now. Initially, the 18HD was trialled at Newcrest’s Cadia East operation, while the 18HD has also seen long-term trials at Codelco’s El Teniente copper mine in Chile from 2018 onwards. Byrnecut also trialled two 22HDs, including at OZ Minerals’ (now BHP) Prominent Hill copper-gold-silver mine in South Australia, plus the 22HD has also been the subject of a trial by Gold Fields.

IM spoke to Ryan Karns, Product Director for Hard Rock LHDs and Trucks at Komatsu, about the machines: “Our recent hybrid LHD trials of the Komatsu WX18H and WX22H continue to help us build a pathway to achieve reduced emissions and increased performance for our customers. With the support and feedback collected from OZ Minerals during the two trials, we implemented platform updates to optimise the drive system’s characterisation and improve operator comfort and visibility.”

He adds: “We recently completed our last trial of the WX18H at Codelco’s El Teniente mine. The LHD met or exceeded many of Codelco’s KPI targets set out at the start of the trial. Exceptional support by El Teniente operations assisted with further advancements in the platform to strengthen its position as a breakthrough within the industry.”

Karns added that operators involved in the trials told Komatsu that the tractive effort in the new machines is incomparable with a standard mechanical drivetrain, and the addition of Komatsu’s KESS accelerates the LHD like no other. Fuel savings achieved were also a highlight of the trials, averaging 30%-plus. “We’ve seen the highest benefit in block caving and similar applications that involve longer, more consistent hauls where maximum speed is reached on a more frequent basis. As the units are now formally commercialised, we are focused on collaborating with key customers in these types of applications to maximise the value of the machine.”

Antofagasta green lights $4.4 billion Nueva Centinela project including Esperanza Sur expansion

Copper giant Antofagasta PLC has announced that after an extensive review, the construction of its Centinela Second Concentrator Project, often referred to as Nueva Centinela, has been approved. Critical path works will begin immediately with full construction expected to commence after definitive project finance documents have been executed during Q1 2024. It has all the relevant permits approved by the authorities in Chile for the project to proceed into the construction phase. It will have a three-year construction schedule, with critical path works commencing immediately. First production is expected in 2027.

Antofagasta’s CEO, Ivan Arriagada said: “The Centinela Second Concentrator Project is a key element of our profitable growth strategy as it will add a further 170,000 copper equivalent tonnes per year of production, with first copper expected in 2027, significantly progressing us towards our long-term ambition of 900,000 tonnes of profitable copper production. Importantly, it will also reduce net cash costs and unlock significant value in the Centinela District’s two billion tonne ore reserve. This brownfield expansion project is expected to deliver attractive returns in excess of our cost of capital at a wide range of commodity prices. We are leveraging more than 20-years of operational experience and understanding of Centinela’s ores, utilising existing infrastructure and building on long-established relationships within our local communities.”

He adds: “We are a company focused on profitable growth and financial discipline, and this project will elevate Centinela to become one of the top 15 copper mines in the world by output and we will become one of the leading gold producers in Chile. At the same time, this project will create significant financial and non-financial value for all stakeholders while remaining consistent in our approach to disciplined capital allocation. Our view on the medium to long-term outlook is that the world is facing a significant shortage of copper, with electrification and the energy transition driving rising demand. The Second Concentrator Project is a clear opportunity to provide additional copper from our existing resource base, using 100% renewable electricity and raw sea water to reduce our environmental footprint, and as a project, represents a demonstration of our purpose of developing mining for a better future.”

The Centinela Second Concentrator Project will produce an additional 170,000 copper equivalent tonnes per annum, comprising 144,000 t of copper production, 130,000 oz of gold production and 3,500 t of molybdenum production, with a 36-year mine life based on Centinela’s substantial ore reserve of two billion tonnes. The new project will have lower net cash costs through an increased focus on concentrator capacity that incorporates modern technologies, increased by-products and greater economies of scale. Net cash costs in the Centinela district are expected to be in the first quartile of the industry cost curve following the expansion.

The project cost is circa $4.4 billion, including a new 95,000 t/d concentrator plant incorporating high pressure grinding rolls (HPGRs) to reduce energy consumption, the expansion of the existing raw seawater pumping and transport system, a new tailings storage facility, capacity growth in energy and other input supply infrastructure, the expansion of outbound logistics networks such as the concentrate transport system and critical port infrastructure, additional loading equipment, autonomous hauling equipment and a truck-shop for the mine expansion at Esperanza Sur.

In mining terms, the second concentrator will source ore initially from the Esperanza Sur sulphide pit and later from the Encuentro pit. The sulphide ore in the Encuentro pit lies under the Encuentro Oxides reserves, which are expected to be depleted by 2026. Fully exposing the sulphide ore in the optimal sequence required to initiate feed to the second concentrator from the Encuentro Pit is expected to require separate investments in infrastructure, mining equipment and mine development activities, which will materially commence half-way through the construction phase of the second concentrator and will span a period of 3-4 years. The combined investment in mine development and sustaining capital for the expansion of the Encuentro pit is estimated to be approximately $1 billion. This expansion in mining activities will further enable Centinela to achieve the development potential of its extensive mineral resource base.

Esperanza Sur is notable in having a fully autonomous mining fleet consisting of a large fleet of Komatsu 980E AHS-equipped trucks using FrontRunner and autonomous Epiroc Pit Viper PV351s. The trucks are currently loaded by by three types of loading tools, namely a Komatsu PC5500 hydraulic excavator, Komatsu P&H 4100 rope shovel and also a Komatsu L-2350 wheel loader.

Late April 2023 saw the first co-mingling operation of the Esperanza Sur autonomous trucks with manned trucks from Esperanza. The AHS trucks, up to this date, had been dumping at a stockpile with the ore then rehandled and delivered by conventional truck to the single large primary crushing station which is located between the Esperanza and Esperanza Sur pits. That milestone saw both autonomous and manned trucks unloading into the crusher for the first time. Ultimately, Esperanza Sur is currently ramping up to 36 autonomous trucks in this phase of production but with Nueva Centinela getting the nod, it is expected that there will ultimately be over 100 autonomous trucks operating across the two fully autonomous pits − Esperanza Sur and Encuentro Oxides (which as stated will phase into Encuentro pit sulphides underneath).

Also included in the Nueva Centinela spend are camps, and ancillary civil infrastructure, which have been designed to fully integrate into the existing Centinela operation, to avoid any redundancy. This updated and approved capital cost estimate (previously $3.7 billion – announced in August 2022) is based on advanced detailed engineering and includes escalation for inflation during construction, a stronger local currency estimate, updates to local labour regulations and additional contingency provisions. The phasing of the project’s capex is expected to be weighted towards 2025, with similar expenditures in adjacent years.

The project to be financed by Centinela through a combination of direct funding from Centinela’s shareholders (Antofagasta PLC and Marubeni Corporation, representing approximately 40% of total funding), and project finance provided by lenders. Definitive project finance documents are expected to be executed during Q1 2024.

Detailed terms and conditions have been substantially completed for the option to provide water for Centinela’s current and future operations by a third party acquiring the existing water supply system and building the new water pipeline expansion. The planned outsourcing of the water supply will only proceed if it improves the net present value of the project, with closure of this process scheduled to be made alongside the execution of definitive project finance documents during Q1 2024. If it goes ahead as planned, an estimated amount of $600 million in cash will be received for the divestment of the existing water infrastructure and the project cost will reduce by approximately $400 million, considering that the investment required to expand the existing water system to supply the Second Concentrator will be undertaken by a third party.

The Centinela Second Concentrator Project has all the relevant permits approved by the authorities in Chile for the project to proceed into the construction phase. It will have a three-year construction schedule, with critical path works commencing immediately. First production is expected in 2027.

Turner Mining Group awarded five year phosphate mining contract by Bayer for Soda Springs, Idaho

Turner Mining Group, a leading provider of mining services, has been awarded a five-year mining contract with Bayer, a global leader in life sciences and agriculture, at their Soda Springs, Idaho facility, which includes a phosphate rock mine. This strategic partnership represents a significant milestone for both companies, as it combines Turner Mining Group’s industry-leading safety and performance in mine services with Bayer’s commitment to sustainable and responsible resource management.

The contract, which is set to commence in January 2024, encompasses a wide range of mining services, including drilling, blasting, mining of ore and waste, over-the-road ore hauling, and material processing. Turner Mining Group says it will leverage its experience and expertise to ensure the efficient and environmentally responsible extraction of valuable resources at the Soda Springs facility.

Commenting on the partnership, James Kramer, Procurement Category Manager at Bayer, stated: “We are excited to enter into this strategic partnership with Turner Mining Group. Their reputation for excellence in mine services aligns perfectly with Bayer’s commitment to sustainable resource management. This collaboration will not only enhance our operational efficiency but also contribute to our sustainability goals.”

Turner Mining Group says it is known throughout the industry for its unwavering commitment to safety and performance. “The company places the safety of its employees and the environment as a top priority, implementing strict safety protocols and investing in state-of-the-art equipment and technology to ensure safe and efficient mining operations.”

Keaton Turner, President & CEO at Turner Mining Group, expressed enthusiasm for the partnership, stating: “We are honoured to be selected by Bayer for this long-term mining contract. This partnership represents a significant vote of confidence in our ability to deliver exceptional mining services while maintaining the highest safety standards. We look forward to supporting Bayer in achieving their objectives and advancing our shared commitment to sustainability.”

The statement added: “Soda Springs facility plays a crucial role in Bayer’s supply chain, and this partnership with Turner Mining Group will contribute to the ongoing success and growth of both companies. Together, they will work towards responsible resource extraction, environmental stewardship, and community engagement.”

Thiess gets another five years at Ukhaa Khudag metcoal mine in Mongolia

Global mining services provider Thiess has been awarded a five-year contract extension by Mongolian Mining Corporation (MMC) at the Ukhaa Khudag (UHG) metcoal mine. Under the contract, Thiess will continue to deliver asset management services, including strategic planning, supply chain management, and maintenance services, at MMC’s mine in South Gobi.

The mine is located approximately 240 km from the Chinese border and 560 km south of Mongolia’s capital city Ulaanbaatar. Thiess Executive Chair and CEO Michael Wright said: “We are excited to extend our successful partnership with MMC and continue to deliver value through our maintenance expertise and commitment to safety and sustainability. This project particularly holds significant importance for Thiess, given our long-term relationship with MMC that dates back to 2009.”

Thiess Group Executive – Asia Cluny Randell added: “We are committed to fostering positive relationships with the communities where we operate. As part of this extension, we will continue to support local South Gobi communities through our social investment programs targeting health and education.”

Thiess says it remains deeply committed to the health, safety, and well-being of everyone involved in the project. As part of Thiess’ broader commitment to diversity and inclusion, the company also actively encourages the participation of women in the mining industry through targeted programs and initiatives.

The Ukhaa Khudag Coal Mine in Mongolia’s south Gobi Desert is the most remote mine site in the Thiess global mining portfolio. Thiess states: “Successfully managing such extremes demonstrates our capability in mobilising and operating remote mine sites and our unwavering commitment to our client and the community. Started from nothing in 2008, the mine is now fully established and producing high-quality metallurgical coal, having undergone one of the longest mobilisation operations in the world.” Due to the remote location, the Caterpillar 793D haul truck fleet had to be assembled at a border town in China and driven for three and a half days across the desert to reach the mine site.