All posts by Paul Moore

Excelsior Mining announces option agreement with Rio Tinto’s Nuton leaching venture

Base metals, Bulk handling, Mineral exploration, Mineral processing, Mining consumables

Excelsior Mining Corp has entered into an Option Agreement with Nuton LLC, a Rio Tinto venture, to further evaluate the use of its Nuton copper heap leaching technologies at Excelsior’s Johnson Camp mine in Cochise County, Arizona.

Under the agreement, Excelsior remains the operator and Nuton funds Excelsior’s costs associated with a two-stage work program at Johnson Camp. Nuton will provide a US$3 million pre-payment to Excelsior for Stage 1 costs and a payment of US$2 million for an exclusive option to form a joint venture with Excelsior over the Johnson Camp Mine after the completion of Stage 2.

“We are very pleased to be moving Johnson Camp forward with Nuton. With their support and technologies, we have the potential to realise the value of the sulfide resources at Johnson Camp in a way that is both economical and beneficial to the environment. Johnson Camp has the potential to progress towards cash-flow whilst we continue to develop our other assets, including progressing Gunnison towards well-stimulation trials later this year,” comments Stephen Twyerould, President and CEO of Excelsior Mining. “The strength of this agreement is that it allows both Gunnison and Johnson Camp to advance in parallel.”

Rio Tinto has developed the Nuton™ Technologies, an extensive portfolio of advanced copper heap leaching technologies targeted at primary sulphide minerals (including lower grade mineral deposits), which could not otherwise be processed using traditional leaching or sulphide processing technologies. These technologies offer the potential to produce additional copper in a cost-effective manner that has significant environmental benefits and reduces waste from new and ongoing operations.

Under the terms of the Agreement, the Stage 1 work program involves Excelsior completing diamond drilling, permitting activities, detailed engineering, and project execution planning. Nuton will complete mineralogy, predictive modelling, engineering and other test work. Based on the results of the Stage 1 work program, Nuton has the option to proceed to Stage 2. The Stage 1 work program is expected to commence in August and take 6 to 9 months to complete.

If Nuton proceeds to Stage 2, it will make a US$5 million payment to Excelsior for the use of existing infrastructure at the Johnson Camp mine for the Stage 2 work program. Nuton will also be responsible for funding all of Excelsior’s costs associated with Stage 2. The full Stage 2 work program is anticipated to take up to five years but will proceed based on milestones related to engineering and mobilisation, infrastructure and construction, mining, leaching, copper production and post-leach rinsing. Mining is expected to commence in year one. The completion of all milestones would result in full scale commercial production over several years at Johnson Camp utilising Nuton™ Technologies. Revenue from operations will first be used to pay back Stage 2 costs to Nuton and will then be credited to Excelsior’s account.

After the completion of Stage 2, Nuton will have the right to form a joint venture on Johnson Camp per mutually agreeable terms whereby Nuton will hold an initial 49% and Excelsior an initial 51%. The purpose of the joint venture is to continue the development of the Johnson Camp Mine using Nuton™ Technologies. Should Nuton not exercise their joint venture rights, Nuton and Excelsior will discuss in good faith Excelsior’s continued use of the Nuton Technologies at the Johnson Camp Mine subject to certain licensing terms and conditions. The infrastructure arrangement at Johnson Camp under this Agreement are non-exclusive. During Stages 1 and 2, Excelsior may continue to use the Johnson Camp infrastructure for processing Gunnison solutions and other copper sources not related to the Stage 2 work program so long as capacity requirements for the Stage 2 work program are met.

Anglo American says green hydrogen studies highlight its potential as an energy of the future

Base metals, Environmental, Mining consumables, Mining equipment, Power supply for mines, Sustainable mining

The findings of studies led by Anglo American in Chile and Peru it says have identified the top locations for green hydrogen development.

In Chile, the study, which began in April of this year, was carried out in collaboration with the Hydrogen Technologies Unit of the Catholic University of Chile. Its findings suggest that the development of a green hydrogen valley or H2V in eight areas in the central zone of Chile could result in initial investment of at least US$3.5 billion and generate ~10,000 jobs. The study also estimated that the introduction of green hydrogen on a large scale in the central zone would displace around 3,000 ktons of CO2 per year, equivalent to taking 850,000 cars out of circulation.

Juan Pablo Schaeffer, Vice President of Corporate Affairs and Sustainability for Anglo American in Chile, commented: “Green hydrogen will play an important role in helping us to decarbonise Chile. So, we’re very pleased that we’ve been able to share this study that shows that the development of a green hydrogen valley in Chile is feasible and has the potential to be hugely beneficial, for our communities, the environment, and wider society.”

María José Reveco, Head of Fuels and New Energies Division at Chile’s Ministry of Energy, added: “Collaboration between different industries in the development of green hydrogen will not only move us closer to achieving our decarbonisation goals, it also has the potential to improve our energy security and independence, a benefit that is sometimes overlooked.”

Moquegua Crece, Anglo’s Collaborative Regional Development socio-economic development programme in Peru, in partnership with H2 Peru, the Peruvian Hydrogen Association, has also been looking into the potential for green hydrogen. Together they recently published a summary of the first regional study to assess the potential of the country’s southern region as a green hydrogen valley.

The study identified opportunities for a local as well as an export market for green hydrogen in the potential ‘Southern Hydrogen Valley,’ which includes Moquegua where our Quellaveco copper mine is based. The proposed Valley has the potential to host up to six green hydrogen hubs, catering for both local and international demand.

The findings projected that, in the long term, a new hydrogen economy could generate between 3,400 and 74,000 direct jobs and an additional minimum GDP of US$ 800 to 4,000 million in the region.

Says Sergio Ignacio González Nuñez, Socio-Economic Development Principal, with Anglo American in Peru: “One of the most important things that we had to consider was to make the research relevant for the whole region of the south of Peru, and especially in Moquegua…by having a more focused and detailed study, we’ll be able to shape the conversations at a regional and national level, and hopefully leverage the discussions on the national hydrogen roadmap and further opportunities. The study also opened other opportunities to understand the potential of other resources in the context of the green hydrogen economy, such as water.”

Green hydrogen is generated through a chemical process known as electrolysis during which an electrical current separates the hydrogen from the oxygen in water. If the electricity is obtained from renewable sources, a possibility in areas rich in solar and wind power, energy can be produced without emitting any carbon dioxide into the atmosphere­­­­.

In what was a first in Chile, two years ago Anglo American set up a green hydrogen station at its Las Tórtolas plant to power a forklift. Using two solar plants and recycled water to create the green hydrogen, it reduces emissions equivalent to 24 t of CO2 per year.

In Peru, the availability of solar power, combined with declining electricity prices, means there is great potential to market green hydrogen competitively, both at home and abroad, with on-site production in countries such as Germany, Japan and the US being costly.

Anglo adds: “We are a company committed to maintaining a healthy environment – one of the three pillars of our Sustainable Mining Plan – and to tackling climate change, one of the defining challenges of our time. We’re working to decarbonise our industry, and create a greener, cleaner, and more sustainable world. So, developing the hydrogen economy, a sector which can play a significant role in the transition to a low-carbon world, is a priority for us.”

The recent studies in Chile and Peru follow on from the work Anglo has done in recent years in South Africa. “Thanks to its world-leading solar and wind resources, and access to the platinum group metals (PGMs) needed for converting hydrogen into energy, the country is poised to capitalise on hydrogen, as a consumer and a producer, and become an important centre for green hydrogen production.”

In 2021, the miner worked with South Africa’s Department of Science and Innovation, Engie, and Bambili Energy, to carry out a feasibility study that looked at the possibility of setting up a hydrogen valley in the Bushveld geological area. The study revealed that the project could add more than $3.9 billion to the country’s GDP by 2050 and create more than 14,000 jobs per year.

“And we know that hydrogen can also help us to decarbonise our own operations – in May last year we unveiled First Mode’s nuGenTM hydrogen-powered ultra-class mine haul truck at our PGMs mine in Mogalakwena. Once we convert our entire fleet of ~400 diesel-powered trucks to green hydrogen, we will remove up to 80% of diesel emissions at our open pit mines and move closer to our 2040 carbon neutrality goals.”

Landmark agreement signed to aid decarbonisation in the Pilbara

Environmental, Mining consumables, Power supply for mines, Sustainable mining

As part of its commitment to net zero emissions by 2050, the Western Australian Government led by Premier Roger Cook has announced that members of the ‘Pilbara Industry Roundtable’ (PIR) have all agreed on common use electricity infrastructure in the Pilbara. The agreement recognises the importance of supporting increased use of renewable energy in the Pilbara.

Members of the PIR include the Minister for Energy Bill Johnston and representatives from Rio Tinto, BHP, Fortescue, Roy Hill, Woodside Energy, Horizon Power, Alinta Energy, bp, TransAlta, Pilbara Independent System Operator Company, and the Chamber of Minerals and Energy of Western Australia.

The PIR met four times in the past year to oversee a works program modelling future electricity demand scenarios. It assessed the current regulatory framework, examined land tenure arrangements, and explored social licence with a focus on empowering local Aboriginal people. The PIR agreement “recognises the challenges and opportunities that decarbonisation presents for industry and the region.” The Minister for Energy will use the findings of the Roundtable to design the next phase.

In more detail, the consensus among participants is that:

  • A new common use electricity infrastructure has an important role to play in supporting increased levels of renewable energy and decarbonisation in the Pilbara, and future modelling, on an annual basis if there are material changes, should inform its development;
  • There is support for the Pilbara electricity regulatory regime to evolve to support the energy transition and agreement to participate in the consultation process which will support the implementation of further reforms as required;
  • As a priority first step, key Government agencies will work together to update existing land tenure guidance for common use electricity infrastructure and renewable energy development;
  • Any electricity infrastructure development should support rights to self-determination and empower Aboriginal people to realise opportunities from the clean energy transformation.

Johnston stated: “This agreement is a historic accord between Government and key industry players in the Pilbara, recognising that to reach our ambitious decarbonisation goals common use electrical infrastructure is key. This is a landmark agreement for our clean energy future and the economic development of the Pilbara and our State. The agreement recognises that electrical infrastructure development should empower local Aboriginal groups.”

Climate Action Minister Reece Whitby added: “This is a significant step towards a clean energy future. It’s important we work together with major resources companies to reach our ambitious decarbonisation targets. Our vision is for Western Australia to become a world leader in renewable energy. Our Government is committed to achieving net zero greenhouse gas emissions by 2050. Decarbonising WA’s economy to protect our environment for future generations is essential to the growth and diversification of our State.”

SafeAI Autonomous Framework (SAF) achieves highest safety level ASIL D certification

Automation, IoT, Mining equipment, Mining safety

SafeAI, a global leader in autonomous solutions for heavy equipment, has announced what it says is a significant achievement for its SafeAI Autonomous Framework (SAF), which it also states is “the first operating system purpose-built for heavy industry.” SAF has been awarded the ASIL D certification, the highest safety integrity level in the industry.

SAF is described as a highly portable and reliable operating system for heavy industry, designed to simplify and accelerate the development and deployment of autonomous applications in embedded and real-time environments. “SAF gives mining and construction companies access to SafeAI’s certified and production-ready infrastructure to help them fast track their autonomous deployments and reap the benefits of self-driving equipment faster.”

Bibhrajit Halder, SafeAI Founder & CEO: “We are incredibly proud of this achievement, but we’re not stopping here. We will continue to push the boundaries of what’s possible, driving efficiency, safety, and productivity in heavy industry operations. I want to extend my personal gratitude to our dedicated team, our partners, and our customers for their unwavering support and trust in SafeAI. This milestone is a testament to our collective efforts, and I’m excited about the transformative impact SAF will have on the heavy industry sector.”

The certification further reinforces SafeAI’s rigorous commitment to safety. ASIL, or Automotive Safety Integrity Level, is a risk classification scheme defined by the ISO 26262 standard for the functional safety of automotive equipment. ASIL D is the highest level of this classification, indicating the most stringent safety measures to mitigate risks.

“SAF supports all safety-critical applications, ensuring the highest level of safety and reliability in SafeAI’s operations and those of its customers. The software API was developed in compliance with ISO 26262, IEC 61508, ISO 13849, and ISO 19014-4 as a software component and a Safety Element out of Context.”

The ASIL D certification of SAF “is further testament to SafeAI’s unwavering commitment to safety. This goes hand in hand with the company’s ‘Safety Above All’ value, and validates SafeAI’s efforts to create a highly reliable and safe operating system for heavy industry applications. This certification is not just an achievement for SafeAI, but a significant milestone for the entire heavy industry sector. It sets a new standard for safety and reliability, paving the way for broader adoption of autonomous technologies in heavy industry.”

HBT acquires coal mining equipment specialist Waratah Engineering from Questas

Bulk handling, Coal technology, Equipment maintenance, Mining equipment, Mining services

HBT GmbH has advised that as of July 20, it entered into a Share Purchase Agreement to procure Australia-based coal equipment company Waratah Engineering from Questas Group. Waratah is well known for remanufacturing of longwall roof supports, plus overhauls of continuous miners and roadheaders, as well as producing its own equipment such as the WaraCar shuttle car and WaraBolter. The company’s facilities are in Argenton near Newcastle, NSW.

Waratah is a historic company and was founded as far back as 1923. Looking at its recent history, it was saved from bankruptcy in 2009 when it was bought by Polish coal mining equipment major Kopex and renamed Kopex Waratah, with Kopex going on to become part of Famur in 2017. In 2016 Waratah had been acquired from Kopex by Swanson Industries Australia (formerly Jarvie Engineering founded in 1952 which was acquired by Swanson in 2014), which became part of Questas Group in 2020.

Questas stated: “HBT Group are specialists in underground mining and recently bought Caterpillar’s underground coal longwall business. HBT Group were purposefully chosen with the intention that the natural ownership of Waratah continues. They are supportive of the vision to continue to create value and drive results, whilst maintaining the current strong position Waratah Engineering holds in the market.”

It adds that Questas leaves the Waratah Engineering business with a record order book, in part driven by the development of the WaraBolter – Waratah Engineering’s own underground MultiBolter. “The MultiBolter is a feat of engineering, custom designed by Waratah to be ergonomically advanced and with operator comfort in mind – it’s the epitome of speed, efficiency, and ease-of-use in a well-thought-out package.”

HBT stated: “This acquisition marks a significant milestone as we continue to build and develop our distribution capabilities, whilst enhancing our product portfolio, further enabling us to diversify and expand into other markets. As recognised by Questas, HBT are specialists in underground mining and were purposefully chosen with the intention that the natural ownership and growth of Waratah Engineering continues. HBT recognise and share in this vision and will continue to create value and drive results, whilst maintaining the strong position Waratah Engineering holds in the market.” HBT says the Waratah Engineering portfolio complements its existing product offerings and will further strengthen its global capability as a single solution provider.

Ore pass rehab technology advances to keep mines producing

Mine shafts and equipment, Mine ventilation, Mineral project development, Mining safety, Mining services

If the lifeblood of underground mines is the ore that must find its way to surface, then you could describe the ore passes as the mines’ arteries – and the innovative tube-and-fill method of rehabilitating ore passes from Murray & Roberts Cementation it says is proving safer and more durable.

When the ground condition of an ore pass deteriorates and prevents ore from moving smoothly, production invariably comes to a halt, explains Pieter Oosthuysen, Senior Project Manager Mining Services at Murray & Roberts Cementation. Ore flow within a typical underground mine is managed through an extensive system of passes, which allows ore to drop to the bottom of the mine – from where it can be transported to the surface and processed. Over time, these passes deteriorate through a combination of normal wear and tear, abrasive wear due to rock flow, changes in the stresses upon them and the quality of surrounding geology.

“Current rehabilitation methods used in the market have variable levels of effectiveness and application, but the ultimate goal is to remove people from these hazardous environments and find more innovative ways of rehabilitating these excavations,” he says.

Murray & Roberts Cementation has been doing this vital rehabilitation work for decades, all the while developing better and safer technologies. Among its most exciting innovations has been its tube-and-fill method, first applied about seven years ago at an underground platinum mine in South Africa. The early installations have proved so successful that they are expected to outlast the normal five to 10 year lifespan of an ore pass rehabilitated in the traditional way with shotcrete.

“With a well-established legacy as an underground mining contractor, we rehabilitate a wide range of underground mining infrastructure – and ore pass rehabilitation is an essential aspect of this,” says Oosthuysen. “The work is not only challenging but can be hazardous, so we approach this work with stringent safety systems in place, while also continuously looking for ways to avoid people having to be in potentially dangerous environments in the first place.”

In the tube-and-fill method of rehabilitation, a fibreglass tube is lowered down the ore pass once the pass is drained and cleared of all obstructions. A specialised mix of self-levelling concrete is then poured in from the top. This concrete – which is high strength and resistant to shear wear – fills the outside area between the tube and sidewall, creating a new lining of the ore pass system.

“The tube is essentially a sacrificial shutter that can be lowered down the ore pass,” he explains. “This can be done without anyone having to climb down the ore pass, so using this methodology has a significant safety advantage.”

This is an important advance on the traditional method which requires people and material to enter the system every day – leading to relatively high exposure to hazardous areas. In addition to being labour intensive, it also requires a rock engineer to inspect regularly and frequently – to give recommendations and approve the installed support.

At the heart of the tube-and-fill method are reinforced rings of special fibreglass, with varying diameters up to a maximum of 3.5 m. The use of relatively light fibreglass – instead of much heavier material like steel – makes it possible to easily transport the tube segments and to assemble them underground. With a tube segment weighing just 80 kg, this means that a tube for a 60 m ore pass will weigh only around 5 t.

At the same time, the reinforced design enables the fibreglass to withstand considerable hydrostatic pressure from the concrete being pumped on the outside. The concrete mix – designed in collaboration with concrete and admixture producers – is able to achieve final UCS strengths of up to 70 MPa.

“When replacing the original rock into which an ore pass has been created, we attempt to get our linings as close as possible to that rock strength,” he says. “This specialised concrete mix design allows us to achieve close to 50% of the original rock strength.” He notes that the mass fill product also creates a more abrasive lining when compared to the shotcrete sprayed lining.

Fanie van Emmenes, Project Manager Mining Services at Murray & Roberts Cementation highlights that the early tube-and-fill installations are proving more durable than the traditional shotcreting approach. This, points out Van Emmenes, also demonstrates that it is more cost effective over the life of the mine.

Murray & Roberts Cementation considers a range of options for customers when proposing solutions for underground rehabilitation. Another method that is used for ore pass rehabilitation is to lower a specialised robotic shotcrete unit into the ore pass, where it applies the concrete to the sidewall without the need for personnel to enter this hazardous zone. One of the limitations, however, is that the level of scaling cannot be too advanced, and this method is used for preconditioning of the ore passes immediately after being developed.

The mass fill and redrilling of the ore pass is yet another option. Here, the whole ore pass is filled with low-strength concrete, and a raisebore machine redrills through the mass fill to create a new ore pass system. Irrespective of the method, he says, safety remains the priority – with Murray & Roberts Cementation’s comprehensive and proven protocols earning the company an enviable safety record.

“This includes proper ventilation systems, monitoring for hazardous gases, personal protective equipment (PPE), and emergency response plans,” he says. “We also ensure adequate training and supervision, which are essential to mitigate safety risks.”

Oosthuysen concludes that the success of the tube-and-fill method would make it the company’s first choice for most applications. He argues that this approach is likely to see increased uptake as the durability of the initial installations become well known.

Ma’aden makes major investment in Vale Base Metals through Manara Minerals

Base metals, Mineral commodities, Mining mergers and acquisitions

Vale last week signed a binding agreement with Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, under which Manara Minerals will invest in Vale Base Metals Ltd (VBM), the holding entity for Vale’s energy transition metals business, at an implied enterprise value of US$26 billion.

Concurrently, Vale and investment firm Engine No. 1 entered into a binding agreement pursuant to which Engine No. 1 will invest in VBM under the same economic terms. The total consideration to be paid to VBM under both agreements is $3.4 billion, for a 13% equity interest. This strategic partnership will fast-track VBM’s expected $25-30 billion capital program over the next decade and help drive a significant potential increase in VBM’s production from about 350,000 t/y to 900,000 t/y in copper and from roughly 175,o00 t/y to more than 300,000 t/y in nickel. This program will generate jobs, economic growth, procurement and supplier opportunities as well as socioeconomic benefits in communities across the key critical mineral jurisdictions where VBM operates in Brazil, Canada and Indonesia. The total consideration of $3.4 billion will be paid in cash to VBM at closing of the transaction, subject to customary adjustments. Manara Minerals will own 10% of VBM, while Engine No. 1 will hold a 3% stake. The closing is expected to occur by Q1 2024, subject to conditions precedent, including the approval of the relevant regulatory authorities. “We see these strategic investments as a major milestone in our path to accelerate accretive growth in our Energy Transition Metals business platform, creating significant long-term value to all of our stakeholders,” said Eduardo Bartolomeo, Vale’s CEO. “With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition, while remaining committed to strong social and environmental practices and sustainable mining.”Robert Wilt, Executive Director of Manara Minerals and CEO of Ma’aden, said: “Manara Minerals’ investment into Vale Base Metals marks our first major investment into the global mining sector. This strategic investment signifies our confidence in Vale’s strategic minerals business and will facilitate growth in VBM’s world class asset portfolio across all of the countries it operates in. Manara Minerals brings long-term capital, mining experience, and deep sector knowledge, and will act as a key strategic partner in global supply chain resilience and energy transition efforts.” Chris James, Founder of Engine No. 1, said: “We are proud to support the Vale Base Metals team in driving the next stage of growth for these critical assets. Vale Base Metals is best positioned to supply the responsibly sourced raw materials needed to build the infrastructure of the future.”

Erik Belz, Engine No. 1’s Head of Private Capital, added: “Our private capital mission is to partner with companies to create value by operating assets in a responsible and sustainable way while delivering critical materials. We look forward to building this important platform with Vale Base Metals.”Over the last 18 months, Vale has taken a series of strategic actions to position its energy transition metals business as a critical mineral supplier of choice. This includes creation of VBM to drive operational efficiency and leverage a distinct future-facing commodities platform, supported by a new governance structure and dedicated board of directors with deep industry expertise, chaired by Mark Cutifani.

VBM is uniquely placed as North America’s largest integrated nickel producer and among the largest copper businesses globally with the scale, resources and capital to deliver critical minerals essential for the global decarbonisation and electrification megatrends. The company has secured agreements to supply low carbon and high purity nickel to major automakers and is strategically focused on expanding mine life and development of growth projects across the portfolio. In nickel these include the Onça Puma 2nd furnace in Brazil, the Pomalaa and Morowali projects in Indonesia, and the Voisey’s Bay Mine Expansion in Canada. VBM is a top 10 copper producer in the Americas with an operating base concentrated in Brazil that includes the country’s largest copper deposit at Salobo with 40-plus years of remaining life, complemented by a strong pipeline of development and growth projects from Alemão, Cristalino and Bacaba in Brazil to the large- scale Hu’u project in Indonesia.

India’s Power Mech bags MOO contract from SAIL for Tasra coking coal mine

Bulk handling, Coal technology, Mining services, Steel and iron ore

Power Mech Projects Ltd (PMPL), one of the leading industrial services and construction companies providing versatile and comprehensive services in India’s power and infrastructure sector, has been awarded a huge Mine Development & Operation (MOO) contract for the Tasra open cast coking coal project located in the Jharia Coal Fields in Ohanbad, Jharkhand state. The contract was awarded by the Steel Authority of India Ltd for an estimated value of INR30,438 crores over the contract period which equates to over US$3.7 billion.

The MOO contract will primarily comprise mine infrastructure development, removal of overburden and extraction of coking coal, plus its crushing and transportation, setting up a coal washery of 3.5 Mt/y capacity, supply of steel grade coking coal to SAIL, carrying out R&R activities and other activities incidental to mining as per the project document.

The project has total coal extraction reserves of 96.78 Mt with an annual capacity of 4 Mt/y and overburden removal during the project period is over 535.29 MBCM. The concession period of the mine is 28 years including two years of development.

The project has been awarded to a consortium of Power Mech Projects and PCPatel Infra, wherein PMPL is the consortium leader with a 74% equity stake and PCPatel Infra with a 26% stake. A Special Purpose Vehicle (SPV) will be formed to undertake the project. PC Patel has been in the mining sector for over 20 years and has a lot of experience in handling different kinds of mining contracts.

Commenting on the project award, Sajja Kishore Babu, Chairman and Managing Director of PMPL said:
“This project will further strengthen our robust order book and enable the Company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments. This mine has all statutory approvals in place and it is a ready to mine project. The revenue booking can be started from FY24 onwards. This project can add peak turnover of around INR1,200 crores plus escalation annually. With the revenue coming in from both the MOO projects along with the existing operation & maintenance (O&M) business, we expect to witness sustainable growth both in top and bottom lines in the future for a longer period.”

India is very dependent on costly imports for meeting its coking coal requirements and Tasra is another important step for SAIL and the country to meet the growing demand of coking coal. The KBP and Tasra MOOs together will generate 9 Mt/y when the peak capacities of the respective mines are achieved.

This project is a strategic step in forward integration in PMPL’s activities, utilising its technical know-how along with project implementation capability. PC Patel’s technical expertise will combine with PMPL’s core capabilities in the field of EPC contracts, plant installation, civil & structural works, material handling, infrastructure construction and project management coupled with operation & maintenance expertise. PMPL has already established substantial in-house capability in executing large capacity material handling contracts and this experience will greatly help in the overall development of the project.

Rössing Uranium looks ahead with Phase 4 set to start up in 2027

Bulk handling, Comminution of minerals, Energy minerals, Equipment maintenance, Explosives and blasting, Mineral processing, Mineral project development, Mining equipment, Mining maintenance, Mining safety, Mining services, Power supply for mines, Sustainable mining, Water management

Rössing Uranium in June 2023 released its 2022 Sustainability and Performance Report. Managing Director Johan Coetzee said the year was a busy one, with a major focus being on finalising the Life-of-Mine Extension (LoME) feasibility study which led to a positive investment decision in February 2023. Phase 4 of the Rössing Uranium mine near Swakopmund in Namibia will be fully operational in 2027 following a 13-year contract mining agreement signed in May this year with Beifang Mining Technology Services.

During 2022, Rӧssing had been operating on an approved LoM plan to 2026, but completed a bankable feasibility study for a Life of Mine extension to 2036. This will be achieved with a further pushback of the existing SJ Pit (Phase 4), fully utilising the 15-year mining licence granted by the Ministry of Mines and Energy in 2021. The objective of the LoME Feasibility Study was to evaluate and document the technical, practical, and economic feasibility to extend the LoM beyond 2026 and issue a Feasibility Study Report to inform the positive investment decision by the Rössing Board of Directors. The plan is the lowest cost extension option available and will benefit from leveraging off the existing processing and infrastructure facilities.

The project requires deeper mining of the same SJ ore-body through a north-eastern extension of the current pit (Phase 4 pushback) to supply the existing process plant with sufficient ore until the end of 2036 at current throughput rates of 9.2 Mt/y. There is a need to proceed with this pre-strip as soon as possible (2024) to gain access to the ore in Phase 4 before the current ore supply from Phase 2/3 is depleted. An extension of the tailings storage facility footprint is also required to accommodate the additional 92 Mt of tailings, which must be dewatered to a higher density (thickened tailings). In terms of the mine layout, haul road 19 ramp was decommissioned in the early part of 2022. This was a landmark change that shows that the open pit is transitioning into the bottom benches. All open pit ramps are now on the north side of the pit, which reaches about 390 m depth.

The operation was Namibia’s first commercial uranium mine started production in 1976. Despite a formal Life of Mine of 2025, the previous majority shareholder, Rio Tinto, was considering early closure in January 2020. The 2019 sale of Rio Tinto’s majority shareholding to China National Uranium Corporation (CNUC), created a limited duration preferential offtake agreement at subsidised prices and at a premium to production cost, assuring a positive cash flow and continued operation.

Looking again at last year, a highlight for Rössing in 2022 was the commissioning of the mine’s new water reservoirs at a cost of N$100 million. These reservoirs provide an additional 60,000 cubic metres of storage capacity, enabling it to continue operating during periods of high sulphur bloom in the Atlantic ocean, resulting in fresh water supply interruptions due to the stoppage of the Orano desalination plant during these periods.

The mine’s production in 2022 was lower when compared to 2021. A total of 16.6 Mt was mined, compared to 20.7 Mt in 2021, with waste and low-grade ore totalling 7.4 Mt. The lower mining volume was due to the stripping ratio of waste to ore reducing as operations move deeper into the pit. 9 Mt of ore was milled, compared to 9.6 Mt milled in 2021. A total of 2,659 t uranium oxide was produced, compared to 2,882 t in 2021.

The mine currently uses a fleet of Komatsu 730E 180 t class trucks which run under trolley assist for the part of the main haul road. Benches are 15 m but in some areas double benching ie 30 m is possible. The mine employs two Cat 994 wheel loaders (FE15 and FE16) which supplement the main loading fleet of four Komatsu PC5500 face shovels and are primarily used to re-handle ore from the ROM stockpiles to feed the two primary gyratory crushers with sufficient material of the correct blend. Two loading units are required to achieve the re-handle tonnes and at times of poor FEL availability, one of the face shovels is moved to the ROM stockpiles to secure the feed to the crushers which reduce the material to – 165 mm. Recently a new Komatsu WA1200-6 wheel loader has been procured, being delivered to site at the end of December 2022 and has just entered service. In fleet management, the mine has just upgraded its Modular Mining DISPATCH FMS to the latest version.

Rössing Uranium’s new Komatsu WA1200-6

The operation also hails ongoing success from its GroundProbe SSR radar monitoring system with four potentially catastrophic falls of ground properly managed in 2022 without risking people or equipment. The geotechnical team was head-on with guidance and was able to forewarn the operations teams about the impending rockfalls so they could block access to and carefully stabilise the affected areas. Rössing has two units – and acquired SSR114 in 2010 and SSR226 in 2014. The two radars have operated beyond the seven-year lifespan of radar units. These radars are part of the series 1 generation technology of the supplier as compared to the series 3 GroundProbe has recently released. This meant the SSRs the company was using had aged and the relevant software has gone beyond the support of these radars. Some of the critical spare parts on the radar units have become obsolete and unavailable in the market, which made it economically challenging.

Mining Operations, supported by the Projects department, embarked on a project to replace the outdated SSRs to ensure undisrupted monitoring of the south slope and ensure that there is redundancy monitoring to the critical areas (south slope) should one radar become faulty. In addition, the replacement was necessary to ensure adequate management of slope stabilities around the pit. SSR114 was fully replaced and commissioned in July 2022 and this was just before the grace period of software support for this specific radar unit could expire, on 30 August 2022. The SSR226’s support was set to expire on August 30 2023, and this radar has now also been replaced.

Also notable for 2022 was the introduction of electronic blasting technology for pit-limit blasting. This change allows the mine to decrease the amount of energy going into the final pit walls, which helps maintain the long-term stability of the open pit. The technology has since been adopted for all limit blasting at Rössing Uranium.

Rössing contributed approximately 4.4% to world primary production during 2022, with Namibia now being the 3rd largest primary producer of U3O8 globally, after Kazakhstan, (which continues to dominate the market from a supply side), and Canada. No fatalities, permanent disability injuries or significant process safety incidents were recorded in 2022. The All Injury Frequency Rate (AIFR) of 0.43 was lower than the target of 0.48, underlining a commitment to achieving zero harm. The report states: “We were able to achieve this performance safely and efficiently through the commitment and hard work of our own employees, as well as the support from the contractors that are delivering services to us.”

Glencore positions itself to produce over 550,000 t/y of copper in Argentina

Base metals, Mineral commodities, Mineral project development, Mining project news

Glencore International AG and Pan American Silver Corp have reached an agreement for Glencore to acquire the 56.25% stake in the MARA project from Pan American. Under the terms of the agreement, Glencore will pay $475 million in cash upon closing and grant Pan American a copper Net Smelter Return (NSR) royalty of 0.75%.

The project was first formed through the integration of the Minera Alumbrera plant and mining infrastructure and Agua Rica project in a joint venture between Yamana Gold, Glencore and Newmont in December 2020. Glencore acquired Newmont’s 18.75% stake in October 2022, bringing its shareholding to 43.75%. Pan American acquired Yamana Gold’s 56.25% stake as part of its acquisition of Yamana Gold Inc in March 2023.

MARA, located in the Catamarca province of Argentina, has proven and probable mineral reserves of 5.4 Mt of copper and 7.4 Moz of gold contained in 1.105 billion tonnes of ore. It has a 27-year mine life based on mineral reserves supported by more than 86 km of drilling.

The brownfield MARA project ranks as one of the lowest capital-intensive copper projects in the world today, owing to the existing well maintained Alumbrera processing plant and associated infrastructure. MARA is expected to be in the top 25 global copper producers when operational, with an expected average copper production over the first 10 full years exceeding 200,000 t per annum (with further material by-product credits).

Glencore says it has extensive institutional knowledge of the asset and the jurisdiction, based on its successful history of running the Alumbrera operations prior to the integration with Agua Rica in 2020. The closing of the transaction is subject to customary conditions and regulatory filings. Glencore expects the transaction to be completed in Q3 2023. Upon completion of the transaction, Glencore will become the sole owner and operator of MARA.

Glencore’s other main copper play in Argentina is El Pachon, currently undergoing a full feasibility study. It is a copper and molybdenum project located in the province of San Juan, in Argentina. Located between 3,600 and 4,200 m above sea level, it is approximately 5 km from the international border with Chile. El Pachon is 100% owned and is expected to have a 25-year mine life, producing about 350,000 t of copper per annum.