All posts by Paul Moore

Worley gets EPCM contract for Iluka’s Balranald rutile project process plant & infrastructure

Mineral sands major Iluka has awarded Worley a contract to provide engineering, procurement and construction management (EPCM) services for Iluka’s Balranald Critical Minerals project in New South Wales, Australia.

The project will extract and process mineral sands – primarily the titanium mineral rutile but also zircon and rare earths – for producing high grade, high quality critical mineral products in Australia. The project will be developed using Iluka’s innovative, remotely operated, underground mining technology which enables access to ore bodies previously considered uneconomic, with lower environmental disturbance and lower carbon intensity relative to traditional extraction techniques.

Worley teams in Australia with support from Global Integrated Delivery (GID) teams in India, will work closely together to develop the design and manage the construction of the process plant and associated infrastructure.

“Worley has over 50 years of experience designing and executing mining projects and we look forward to working with Iluka to deliver the project safely and sustainably to meet Iluka’s development goals and work towards our purpose of delivering a more sustainable world,” said Chris Ashton, Chief Executive Officer of Worley.

Balranald is a rutile-rich critical minerals development located in the Riverina district of south western New South Wales. Owing to its relative depth, Iluka is developing Balranald via a novel, internally developed, remotely operated underground mining technology. Iluka’s Board approved the final investment decision for Balranald in February 2023. Site works commenced during Q3 2023 in accordance with the execution plan.

The novel mining process sequence is as follows: directional drilling/casing of access holes through the overburden to the ore zone; horizontal borehole drilling with drill strings advanced along the decline and into the orebody; high pressure water used to fluidise the ore; eductor pumping of slurried ore to the surface, which creates stopes within the orebody.

Then a process plant, being managed now by Worley, will be used to screen and separate fines and oversize material, and is expected to include a trommel, thickener and spiral plant. There is temporary stockpiling of the mineral ore for metallurgical and geochemical test work and reinjection of the separated coarse material and fines as a hydraulic backfill (mixed slurry) into the mined-out stopes. The backfill material contains a mixture of sand and slimes once the Heavy Mineral (HM) has been removed.

Orica enhances Digital Solutions business again with acquisition of Terra

Orica, the global mining and infrastructure solutions provider, has announced that it has entered into a binding sale and purchase agreement with Vance Street Capital LLC (via VSC RST Holdco, LP) to acquire 100% of Canadian company Terra Insights (Terra) for C$505 million on a cash free, debt free enterprise value basis.

In more detail, Terra Insights includes RST Instruments, which supplies geotechnical, structural and geospatial monitoring solutions including inclinometers and piezometers; Measurand which covers geotechnical deformation monitoring with its ShapeArray inclinometers; 3vGeomatics which uses InSAR (radar) to monitor subsidence and geohazards; Syscom Instruments, which covers vibration and seismic monitoring using vibration monitors; and NavStar Geomatics which supplies vibration and seismic monitoring using GPS/GNSS. Terra solutions are widely used in mining, particularly for tailings dam monitoring and slope stability monitoring.

The acquisition is expected to be completed in H1 calendar year 2024, subject to regulatory approvals and other customary closing conditions. Orica Managing Director and CEO Sanjeev Gandhi said: “I am delighted to announce the acquisition of Terra today, a business that Orica has had a long-standing commercial relationship with for almost ten years. Terra is highly complementary to Orica Digital Solutions and our GroundProbe business, adding additional products and capability across the mining and civil infrastructure value chains. The acquisition allows Orica to offer a more complete geotechnical offering to customers as well as adding an established stream of recurring software revenue. This acquisition strongly aligns with our Digital Solutions strategy and growth in mining and infrastructure. We are excited about the medium to long term opportunities this will create for Orica.”

Mark Price, CEO of Terra said: “We are excited to partner with Orica for Terra Insight’s next chapter of growth. Given our strong working relationship with Orica for nearly a decade, this combination is a great next step to in the evolution of our end-to-end sensor and data delivery platform through working closely with Orica’s Digital Solutions and GroundProbe businesses. This is a level of collaboration that is global-minded and future-focused. Importantly, this transaction meaningfully enhances the solutions we can collectively provide to our valued customers, and expand geographically across the mining and civil infrastructure markets.”

This move significantly expands Orica’s geotechnical and structural capabilities to monitor critical assets. It also enables the deployment of GroundProbe’s deep domain expertise in geotechnical monitoring into the infrastructure and civil industries. Plus it increases tjhe geographical exposure and future diversification of Orica’s revenue – Terra has strong exposure to infrastructure and civil markets as well as safety offerings, expanding Orica’s growth beyond blasting. It also has a strong presence in attractive North America and European markets, contributing >75% of Terra’s group revenue. Terra also brings a rich group of talent with its staff.

It also allows Orica the opportunity to capture future growth in environmental monitoring such as GHG emissions, noise, vibration and dust monitoring via Terra’s data collection and visualisation software products. Plus in mining, data collection and monitoring is becoming increasingly automated, therefore there is a growing customer appetite for integrated solutions leveraging automation, data collection and analysis.

Duratray steps up a gear in Australia with new facility in Pakenham

Duratray International has taken its business to a new level in Australia with a state of the art factory that has more than doubled its suspended dump body (SDB) capacity. It represents the culmination of many years of activity in the country since its parent, Chile’s Conymet International Group, bought Duratray and its world renowned suspended dump bodies from Pacific Dunlop in 2001, which included its Australian operations, Duratray International Pty Ltd.

Marcelo Medel, Duratray Managing Director, told IM recently at the IMARC show in Sydney: “We have had an existing workshop in Bayswater, an eastern suburb of Melbourne, since we purchased Duratray over 20 years ago. We had been looking to expand for some time – to more than double the size of the factory to meet market demand and thereby double our revenue, but the existing site was aging and did not have the latest technology in place. So three years ago we decided to go with a state of the art, greenfield location tailored to our needs with all the latest equipment.”

IM Editorial Director, Paul Moore, met with Duratray Managing Director Marcelo Medel at IMARC 2023 in Sydney

Medel continued: “The fact that our capacity was limited with rising demand also meant our delivery times were getting longer so we had to take this major step. We designed and built a 10,000 m2 facility in in the southeast part of Melbourne, in Pakenham. This was a huge investment for us of A$15 million, in fact the biggest international investment we have made since the original purchase.”

The location made sense in several ways – first of all, still being in the Melbourne urban area, most of the Duratray experienced people didn’t need to move. Medel says Duratray did look in Queensland as a lot of its major customers are there, such as the Bowen Basin and Galilee Basin coal mines, which includes the bodies on the Caterpillar 796 AC fleet at Bravus Mining’s Carmichael operation.

But support from the Victoria Government, including financial assistance from INVEST Victoria, made a big difference. And it wasn’t just financial support. Medel recently told INVEST Victoria in an interview: “Victoria is well-known for having a highly skilled workforce, and we acknowledge our human resources as our main and most valued asset. Moreover, Victoria provides great support to innovation and research and development projects, which is essential for us into the expansion to mining data analytics, industry 4.0 and our Carbon Fibre branch. Throughout the process, we have been supported by different entities within Victoria, not only financially, but also in terms of advice and guidance on the best way to approach the project. We also considered Victoria, as it is an internationally recognised hub for imports and exports activity. The state’s logistics and distribution networks are key for our supply chain, successful delivery of our products and satisfactory service to our customers.”

The new factory has an all new autoclave, a core part of the SDB production process. Medel comments: “Our process is fully patented and that is one of the reasons why we are the only company globally to offer SDBs. Only we can make a rubber mat of this kind that measures in excess of 10 m by 10 m and 150 mm thickness from handrail to handrail. We put the rubber on top of huge frames and after a few of these layers we wrap them up and then put the mat into the autoclave – which is one of only two this size in the Southern Hemisphere, the other being the original Conymet autoclave in Chile.” To make the complete SDB, the final mat is suspended on top of suspended elastomeric ropes that are anchored to the steel frame of the truck’s body.

The Australian market demands unique levels of quality and Duratray has been able to take advantage of all of its learnings from the Bayswater plant over the years in the new facility and production line. The size of the new plant also means there is added space for its new projects like the mentioned Carbon Fibre branch – where Duratray is developing carbon fibre mining truck bodies – and is working with Deakin University on the project. Medel: “There have been challenges, such as developing the right resin to be able to paste steel lines to the carbon fibre structure but we are working through those and we are expecting to trial a prototype body in Sweden by mid-2024.”

DEUTZ to take over sales and service of mtu Classic and 1000-1500 engines from Rolls-Royce

DEUTZ and Rolls-Royce’s Power Systems Business Unit recently reached a general agreement on the takeover by DEUTZ of sales and service operations for various industrial engines in the 5 to 16-litre range with a maximum power output of up to 480kW. Subject to final agreement, DEUTZ is taking over the distribution of the mtu Classic series and the mtu engine series 1000-1500, which are based on three Daimler Truck engine platforms.

The engines are used in various off-highway applications, including in mining in applications like surface ADT trucks, as well as underground trucks, loaders and drills. In addition, DEUTZ is taking over the service operations for engines that are already in service.

Earlier this year, DEUTZ entered into a cooperation with Daimler Truck to develop and market medium- and heavy-duty engines (MDEG and HDEP platforms) in the off-highway segment, which is scheduled to begin in 2028. With the agreed takeover of the sales and service operations from Rolls-Royce Power Systems, DEUTZ is now taking over the marketing of the off-highway variants of these engines from 2024. In addition, the agreement includes the distribution of the older mtu Classic series (Daimler Truck engine series OM900 & OM460).

“With the takeover of the sales and service operations from Rolls-Royce Power Systems, we are taking the next major step towards growth in our business with modern internal combustion engines,” said DEUTZ CEO Dr Sebastian C Schulte. “This is an important element that will help us play an active role in the consolidation of the market.”

The takeover DEUTZ says provides further evidence of success in implementing its Dual+ strategy, which aims to boost the development of a green product portfolio and at the same time optimise and further develop conventional engines. When the strategy was presented in January 2023, the company announced that it intends to firmly establish DEUTZ among the top three independent drive manufacturers – including through acquisitions and cooperations.

DEUTZ CTO & CSO Dr Ing Markus Müller explains: “With the earlier access to the engine platforms, we can offer existing and potential customers a much better approach for the transition. Customers gain planning security and we benefit from faster market access.”

After the conclusion of the agreement, DEUTZ expects additional revenue of around €300 million per year with an EBIT margin exceeding the current group margin. The expected purchase price for the engine portfolio is a high double-digit million Euro amount. Following a final agreement, the closing – subject to regulatory approvals – is expected from mid-2024.

Quarrying major CRH announces autonomous truck pilot program with SafeAI

CRH Ventures, a subsidiary of global building materials leader CRH PLC, has announced the commencement of a pilot program with SafeAI, a global leader in autonomous solutions for heavy equipment. The pilot program aims to evaluate the feasibility and capabilities of SafeAI’s innovative technology for autonomous operations in quarrying.

SafeAI’s retrofit solution utilises state of the art imaging, detection and positioning technologies and Artificial Intelligence to enable heavy off-road hauling vehicles to operate autonomously. CRH Ventures has engaged SafeAI for a pilot program at one of its prominent quarrying subsidiaries in North America. The autonomous truck, equipped with SafeAI’s advanced technologies, will operate in an isolated area under the supervision of a test driver.

Eduardo Gomez, Head of CRH Ventures, expressed strong enthusiasm about the collaboration, stating: “This pilot program with SafeAI aligns with our commitment to explore innovative solutions for more efficient and sustainable quarrying operations. We are excited to assess the potential of autonomous hauling technology in a controlled environment and the possibilities for future scaling.”

The pilot program is designed to simulate quarry operations and will run for approximately one year. The success of the initiative will be evaluated based on predetermined Key Performance Indicators (KPIs) over various test scenarios, comparing autonomous performance against traditionally manned operations.

“While this marks an important step in our exploration of autonomous hauling solutions, it’s crucial to clarify that, at this stage, CRH Ventures is focusing on piloting the technology before finalising any strategic investments,” added Gomez.

Bibhrajit Halder, Founder & CEO of SafeAI added: “Autonomous solutions have the potential to transform heavy industry; we work with forward-thinking companies to bring this potential to life. We’re excited to partner with CRH to advance its vision for sustainable, efficient quarry operations. Together, we can showcase the capacity for new technologies to create a safer, more productive future for the construction industry.”

Cat demos battery electric underground truck for Newmont in Burnie

Caterpillar Inc says it has successfully demonstrated its first battery electric prototype underground mining truck, growing its portfolio of battery electric and semi-autonomous technology for underground mining applications. The demo was at its Burnie Proving Ground in Tasmania, Australia.

The demonstration for Newmont and other industry leaders comes on the heels of the 793 battery electric prototype surface mining truck, which was unveiled in November of 2022.

Caterpillar developed its first battery electric prototype underground mining truck with voice of customer input and support from Newmont Corporation. The companies are collaborating to achieve Newmont’s vision of a fully connected, automated, zero carbon emitting, end-to-end mining system.

“This milestone is a reflection of the partnership between our teams at Newmont and Caterpillar, showcasing the impact of strong collaboration in the mining industry,” said Rob Atkinson, Executive Vice President, Newmont. “Achieving this milestone together, combining capabilities and shared values, is a testament to the strength of our strategic alliance.”

This battery electric truck will complete Caterpillar’s first fully electric underground load and haul solution when paired with the commercially available R1700 XE battery electric loader.

Denise Johnson, Caterpillar’s Resource Industries Group President said: “This is a milestone for the entire Caterpillar team as we work closer than ever with Newmont to provide more sustainable choices for the underground mining industry.”

Speaking at The Electric Mine 2023 conference in Tucson, Arizona, in May, David Rea, VP and General Manager, Caterpillar Inc said that the new truck would be a three-pass match for the R1700 XE – therefore, a truck boasting at least a 45-t payload, though an actual model name for the new truck has not been released.

Rea also confirmed the new truck would be charged by the MEC500 Mobile Equipment Charger but added that the company was working on both a fast charge and battery swap option for the vehicle.

As part of the alliance agreement between Newmont and Caterpillar, the new truck is set to be first deployed at the Tanami gold mine in Australia.

Caterpillar says it also completed a demonstration of its growing autonomy and automation capabilities. This technology addresses some of the key safety challenges faced daily by its underground customers, like the risk of collision when moving heavy machinery through dark, cramped spaces. Autonomous trucks can help to enhance mine site safety by removing operators from potentially hazardous or remote sites. Additionally, these features can improve productivity by creating increased visibility for mine site coordinators, enabling more consistent operations for both staffed and autonomous machines.

Johnson added: “We are building on our foundation of industry-leading autonomous solutions for surface operations, along with our deep experience in underground technology, to provide significant improvement in both productivity and safety for underground mining customers.”

This demonstration is the latest example of Caterpillar’s progress on developing more sustainable offerings for the mining industry, both on the surface and underground.

Sat.One Enterprise comms to support Hitachi AHS ongoing development in Queensland

Sat.One has announced it has won the race to successfully deploy the first ever EutelSat OneWeb Enterprise Low Earth Orbit (LEO) service in the Southern Hemisphere. As part of a three-year deal, Sat.One in partnership with EutelSat OneWeb, has deployed an Enterprise LEO broadband service to Hitachi’s Autonomous Haulage System (AHS) Proof of Concept (PoC) site at the Meandu coal mine in Kingaroy in the South Burnett region of Queensland.

Sat.One Chief Executive Officer, Daniel Fairbairn said: “We are all incredibly proud to officially deploy the first enterprise grade LEO service in the Australian market. This is a huge milestone not only for Sat One but for the industry as a whole as finally Enterprise customers now have a connectivity service solution they can trust that is backed up with an industry leading Service Level Agreement.”

He added: “Sat.One’s reliable low latency Enterprise communications will power critical business applications and communication services for Hitachi Construction Machinery Pty Ltd. As the world’s only focused Enterprise LEO constellation, our network brings choice to enterprises seeking best-of-breed LEO technology, an upgrade from GEO services or consumer grade LEO capability, extending into support for existing critical backup systems, with potential to deliver seamless 4G/5G backhaul options. Sat.One is redefining connectivity, and we couldn’t be prouder to be connecting businesses and communities across Australia.”

AHS Business Unit General Manager from Hitachi, Greg Smith said: “This connection provides a stable, reliable and rapid capacity to support Hitachi’s AHS development and support teams to enhance user experience and simplify operational technology network operations. Also, it is facilitating Hitachi’s vision for the effective use of data and roll out of our Digital Mining Strategy. It is also the MVP for an extension of the functionality to future sites and Hitachi facilities, across the globe,” Smith said.

The broadband service has been deployed via the Eutelsat/OneWeb constellation via a Kymeta Hawk user terminal. Eutelsat OneWeb Vice President for APAC, David Thorn, commented: “Eutelsat OneWeb is also incredibly proud to have partnered with Sat.One to provide the first LEO commercial connection in the APAC region. This is a very important milestone, and we are excited to be working with Sat.One to deliver this critically important service to Hitachi Construction Machinery.”

The LEO network Sat.One says is the only trusted enterprise grade network available in APAC. Sat.One provides fast internet, with low latency and high bandwidth to remote areas without access to fibre, cable, or mobile tower services. Operating at 1,200 km, it says it boasts significant advantages for global coverage look angles and low latency.

Macmahon acquires key mining contracts from Emeco’s Pit n Portal

Macmahon Holdings Ltd has executed a binding agreement to acquire the key contracts of the Pit n Portal (PnP) underground services business from Emeco Holdings Ltd. Macmahon and Emeco have concurrently entered a strategic rental partnership where Emeco is the preferred supplier of rental equipment to Macmahon in Australia for applications in surface mining, underground mining and civil infrastructure projects. The rental partnership incorporates the PnP underground fleet and is at competitive commercial rates, facilitating growth flexibility and maximising free cash flow for Macmahon.

The acquisition and strategic rental agreement Macmahon says is consistent with its strategy of building scale and capability in its underground division, diversifying its services and operations, and growing in a capital light manner. The acquisition includes the contracts, inventory, site fixed infrastructure assets and light vehicles of certain PnP projects, and brings additional skilled employees to Macmahon’s workforce. The circa A$10 million consideration payable will be satisfied by an asset sale and offset arrangement. The transaction is expected to add in excess of A$140 million to Macmahon’s order book, and be immediately EPS accretive.

PnP specialises in the provision of hard-rock underground mining equipment and services to the Australian underground mining sector. The business was established in 2002 and was acquired by Emeco in 2020. Core activities include mining services and maintenance solutions for underground mines in Australia. Under the transaction Macmahon will employ transferring employees across strategic locations in Perth, Kambalda and Kalgoorlie, as well as customer sites in Western Australia. Key project contracts include Durkin (nickel), Cassini (nickel), Tank (gold) and Daisy Milano (gold).

In more detail the deal involves A$10 million paid to Emeco while Emeco has also purchased approximately $10 million of mining equipment from Macmahon, resulting in a neutral cash position. The assets being acquired by Macmahon include PnP contracts, inventory, fixed infrastructure assets and light vehicles. PnP’s underground mining fleet will form part of the strategic rental agreement with Emeco. Around 260 PnP employees are joining Macmahon’s workforce with existing employee liabilities to be transferred to Macmahon. The effective economic transfer is from 31 December 2023, with transaction completion expected in early 2024, subject to the satisfaction of customary conditions.

The agreement has Emeco as the preferred supplier of rental equipment to Macmahon in Australia for applications in surface mining, underground mining and civil infrastructure projects and incorporates PnP’s existing underground mining fleet. The agreement comprises mutually agreed, competitive commercial rates reflecting a secure long term rental partner and includes rebates for agreed rental volumes, minimum hours and a commitment from Macmahon to provide Emeco with an opportunity to bid on future rental requirements in Macmahon’s open-pit, underground and civil infrastructure operations. The initial agreement term is to 31 December 2028 and evergreen thereafter with customary termination rights.

Macmahon’s Chief Executive Officer and Managing Director, Michael Finnegan said: “A key driver of Macmahon’s recent growth has been the underground mining division which has grown to approximately 25% of the company’s revenue, facilitated by the acquisition of GBF in 2019. Our strategic objective has been to continue building scale in underground to diversify earnings and operations and the acquisition of these Pit n Portal contracts and assets is 100% consistent with this. It adds significant capability to our underground business with the addition of around 260 skilled employees and builds on our existing client relationships. We look forward to working with Pit n Portal’s customers and strengthening our relationships with them.”

He adds: “Importantly, we have been able to execute this transaction in a capital light manner, preserving our cash and entering into a strategic rental partnership with Emeco which provides us enhanced capital flexibility for our broader business into the future. The rental partnership allows Emeco to exit from its underground contracting portfolio and to focus on its core rental business while building a long-term relationship with Macmahon with increased fleet rental opportunities in open-pit, underground and civil operations. For Macmahon it allows us to maintain capital discipline, enhance return on average capital employed and maximise our free cash flow generation.”

Scotland’s electric 4×4 innovator Munro signs agreement for 900 mining spec vehicles

Scotland-based Munro Electric Vehicles has signed an exclusive partnership with Jakob Mining Vehicles (JMV), in an agreement to provide them with 900 mining specific vehicles over the next five years. The vehicles build upon the Munro Series-M platform and have been specifically designed to meet the mining industry’s demanding needs. This will enable JMV to electrify its operations and reduce overall carbon footprint, while operating in some of the worlds harshest conditions, where environments can drop below -40°C.

“Our Series-M electric 4×4 is perfectly suited to the mining industry,” Russ Peterson CEO & Co-Founder of Munro Electric Vehicles, told IM. “Not only is it incredibly rugged and robust, designed operate in the harshest of terrains, its electric drivetrain is also virtually maintenance free, meaning our trucks can be used all over the world, both above and below ground and in sub-zero temperatures. We’ve signed an agreement with our exclusive mining industry partner JMV, who have many years of experience in the industry.”

JMV is based in Petersberg, Germany and is well known for adapting vehicles for special markets like underground mining, rescue and disaster control. Its clients have included groups like salt and potash miner K+S.

 

Glencore joins Komatsu’s GHG Alliance to help advance zero emission mining equipment

Global miner Glencore has announced that it has joined Komatsu’s Greenhouse Gas (GHG) Alliance, a collaborative effort focused on working towards the development, testing and deployment of zero-emission mining equipment and solutions. Alliance members have specifically been working to advance Komatsu’s power agnostic truck concept for a haulage vehicle that can run on a variety of power sources including diesel engine, battery as well as hydrogen fuel cells with both static and dynamic charging capabilities.

Troy Wilson, Glencore Head of Operational Excellence at Technology for Copper said: “We are excited to join the Komatsu GHG Alliance and work alongside other industry leaders to advance mining technology toward zero emissions. This collaboration is part of our continued dialogue with Komatsu and will help inform Glencore’s approach to implementing technological innovation in heavy mining equipment.”

The Tier 1 mining major has already made some important steps in its journey to net zero – trolley assist pilots are planned in the next two years at its South American copper sites which will not only contribute towards a meaningful reduction in the diesel consumption of its installed fleets but will also establish the necessary technology deployment experience and capability to support its potential growth projects, such as El Pachon in Argentina. If these pilots are successful it will also put Glencore in a good position to trial battery-trolley truck operation ie dynamic charging.

Glencore’s fully owned copper mines in South America are Antapaccay in Peru and Lomas Bayas in Chile. Both of these operations are well set up to run trolley pilots as they already have the latest large electric drive Komatsu haul trucks in place, including the 400 ton class Komatsu 980E-5 at Antapaccay, with 23 new units that began delivery in 2021 and the 320 ton class 930E-5 at Lomas Bayas, where an order for 27 new units was fulfilled in 2020/2021. And these operations are no stranger to innovation either – both mines have also begun implementing autonomy on their blasthole drill rigs using the ARDVARC system from FLANDERS.

Glencore has also begun automating its haul trucks – at Lomas Bayas, a first AHS stage involving four Komatsu 930E-5 haul trucks using Komatsu’s FrontRunner system has begun for an autonomous day and night shift operation in a circuit of approximately 1 km within an area segregated from the rest of the conventional operation. If this pilot testing succeeds, the project will see a gradual increase the number of autonomous trucks until the entire fleet of 27 trucks goes autonomous by 2025.