Tag Archives: Alberto Calderon

Gold Fields and AngloGold Ashanti agree on deal to create Africa’s largest gold mine

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Gold Fields and AngloGold Ashanti have agreed the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa (pictured above) and AngloGold Ashanti’s neighbouring Iduapriem mines to create what they say will be the largest gold mine in Africa and one of the largest in the world.

The Tarkwa mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem mine is currently 100% owned by AngloGold Ashanti. Both mines are located near the town of Tarkwa in the country’s Western Region.

The parties have agreed in principle on the key terms of the proposed jv and have commenced with preliminary, high-level and constructive engagements with senior government officials in Ghana and will continue engaging with the GoG, relevant regulators and other key stakeholders, with a view to implementing the proposed jv as soon as practically possible. They have also agreed to mutual exclusivity during this engagement.

It is intended that the jv will be an incorporated joint venture, constituted within Gold Fields Ghana and operated by Gold Fields. AngloGold Ashanti will contribute its 100% interest in Iduapriem to Gold Fields Ghana in return for a shareholding in that company.

The companies do not anticipate that any material, additional capital injection will be required by either company to establish the proposed jv, and is expected to materially improve its capital intensity once operational.

Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%, or two-thirds, and AngloGold Ashanti will have an interest of 33.3%, or one-third, in the jv.

The Iduapriem mine is currently 100% owned by AngloGold Ashanti

The companies said: “The proposed jv would create the largest gold mine in Africa and one of the largest in the world. It will be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades.”

Operational synergies will be achieved by optimising mining of the combined orebodies and consolidating the infrastructure of the immediately adjacent mines for the long-term benefit of all shareholders and stakeholders, the companies said.

Martin Preece, Interim CEO of Gold Fields, said: “The proposed jv is an exciting opportunity to combine mining operations that are essentially part of the same mineral deposit and is something that Gold Fields and AngloGold Ashanti have discussed many times before over the years. The ability to optimise mining and the use of shared infrastructure across the combined operation will result in significant flexibility in mine planning, materially enhancing the economics of the mine and ensuring quality and scale of operation that will be world class. That unlocked value will underpin the proposed jv’s continued contribution to our host communities and Ghana for decades to come. For Gold Fields, it will also significantly enhance the overall quality of our portfolio.”

Alberto Calderon, CEO AngloGold Ashanti: “This combination puts together two parts of the same world-class orebody, allowing us to share skills and infrastructure to significantly enhance every aspect of this mining operation, from exploration and planning, to mining and processing. By creating one of the world’s largest open-pit gold operations, in a pre-eminent mining jurisdiction, we will create longer-term value not only for AngloGold Ashanti and Gold Fields, but for the combined stakeholders in our local host communities and for all of Ghana.”

The combined operation comes with an estimated life of at least 18 years, which could increase through an extension and optimisation plan to be considered under the proposed jv over the next three years, and which could also enhance envisaged production and cost parameters.

It would come with estimated average annual production (100% basis) of almost 900,000 oz over the first five years and average annual production in excess of 600,000 oz over the estimated life of operation. All-in sustaining costs (in 2023 terms) were expected to be less than $1,000/oz over the first five years and less than $1,200/oz over the estimated life of operation.

AngloGold investigating use of battery-electric vehicles at Cuiaba mine in Brazil

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AngloGold Ashanti says it is weighing up the potential introduction of battery-electric vehicles at its Cuiaba mine in Brazil as a small part of a wider initiative to achieve a 30% absolute reduction in its Scope 1 and 2 Greenhouse Gas (GHG) emissions by 2030.

The company says this carbon emission reduction target could be met through a combination of renewable energy projects, fleet electrification and lower-emission power sources. The company has already reduced its absolute GHG emissions by more than two thirds since 2007, and remains committed to achieving net zero emissions by 2050.

The targeted reduction announced today, from a 2021 baseline of 1.4 Mt of carbon dioxide equivalent (CO2e), aims to see emissions from the company’s activities diminish to about 1 Mt by the end of the decade. When growth projects are factored in, including those in Nevada and Colombia, AngloGold Ashanti is targeting a 46% reduction in emissions by the end of the decade.

The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1 billion, of which $350 million will be funded over that period by AngloGold Ashanti and the remaining $750 million through third-party funding, including from providers of renewable energy infrastructure. The company plans in the coming weeks to initiate a process to secure a green funding facility of $250-300 million to finance its portion of these decarbonisation initiatives across its business.

“We have a clear pathway to achieve our target by 2030, when we expect to have lowered our overall emissions by almost a third,” AngloGold Ashanti Chief Executive Officer, Alberto Calderon, said. “This ensures we continue to do our part in reducing our carbon footprint, while also improving the value of our business.”

The targeted reductions announced today incorporate initiatives at each business unit including the introduction of renewable energy, cleaner grid power and partial fleet electrification.

Approximately 60% of the planned emissions reductions will come from large renewable energy projects including wind and solar projects at the company’s Australian operations and solar-power plants at both Siguiri in Guinea and the Iduapriem and Obuasi operations in Ghana, AngloGold said. In addition, a prefeasibility study has commenced at the Cuiaba mine in Brazil to confirm the benefits of replacing some mobile fleet with battery-electric vehicles. AngloGold will also be working with Sandvik to trial underground mining’s largest-capacity BEV truck, the 65-t payload TH665B at Sunrise Dam.

The Cuiabá complex includes the Cuiabá and Lamego underground mines and the Cuiabá and Queiroz plants. Ore from the Cuiabá and Lamego mines is processed at the Cuiabá gold plant. The concentrate produced is transported by aerial ropeway to the Queiroz plant for processing and refining. Total annual capacity of the complete Cuiabá circuit is 1.75 Mt.

The viability of a wind farm at Cerro Vanguardia in Argentina is also being investigated. The vast majority of these projects are expected to be NPV-positive adding value to the business by reducing energy costs and improving energy security, the company said.

Two “clean grid” initiatives are already close to completion – a switch from diesel generation at the Geita mine site in Tanzania to the country’s national power grid, which has a high proportion of power sourced from gas and renewables, and the transition to full hydro-grid power in Brazil.

Orica to deliver tech and blasting services to Glencore’s Australia copper, zinc ops

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Orica says it has been awarded a five-year explosives technology and services contract for Glencore’s Australia copper and zinc operations, effective January 2021.

Glencore, one of the world’s largest globally diversified natural resource companies, produces and markets a diverse range of metals and minerals, with its Australia copper and zinc operations including McArthur River Mine (Northern Territory), Lady Loretta Mine (Queensland), Mount Isa Mines (Queensland), Ernest Henry Mine (Queensland) and CSA Mine (New South Wales). Orica has an existing supply agreement with Glencore’s nickel and cobalt operations at Murrin Murrin, in Western Australia.

As part of the contract, Orica will deliver the full suite of explosives technology and blasting services across the Glencore copper and zinc operations in Australia, including supply of the fully wireless initiating system, WebGen™, BlastIQ™ digital blast optimisation suite of products and smart explosives delivery system, Bulkmaster™ 7.

This partnership further strengthens and expands Orica’s longstanding relationship with Glencore, the manufacturer of commercial explosives and innovative blasting systems said.

Orica Chief Executive, Alberto Calderon, said: “Glencore is a key global diversified customer, and we are delighted to be partnering with them across their Australian copper and zinc operations, integrating our most advanced technologies and solutions to solve their more complex operational needs.

“Glencore’s Ernest Henry mine in northwest Queensland was the first site in the world to trial and adopt our wireless explosives technology, WebGen. This deal shows Glencore’s confidence in our technology roadmap as well as aligning with their strategic vision for technology to deliver added value to their operations.”

Orica will work closely with Glencore to ensure uninterrupted supply to each operation, during the rapid mobilisation and transition period, it said.

Orica moves a step closer to Exsa explosives takeover

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Orica says it has completed the acquisition of 83.5% of shares in Peru’s Exsa, moving the Australia-listed firm closer to becoming the number one industrial explosives player in the country, Alberto Calderon says.

First announced in February, the acquisition will create a step-change in Orica’s manufacturing footprint, driving competitive advantage and an enhanced position in the Latin America market, with significant synergies available by combining Orica and Exsa’s operations, the company says.

Calderon, Orica’s Managing Director and CEO, said the company was delighted to welcome Exsa into the Orica family.

“This is a transformational acquisition for our company. It establishes Orica as the number one player in Peru, Latin America’s highest growth market, and transforms our entire initiating system footprint.

“We now look forward bringing our two great businesses together and delivering the many meaningful and tangible synergies that will drive revenue and productivity across the region.”

Orica expects to complete the tender offer process for the remaining shares by the end of the calendar year.

Peru’s number one manufacturer and distributor of industrial explosives, Exsa provides technical assistance and support to the mining (particularly gold and copper) industries. It has a significant share in both Peru underground and open-pit markets, according to Orica, with an efficient supply chain, comprehensive sales distribution network and strategically located ammonium nitrate emulsion assets in north, central and south Peru.

Its initiation systems and packaged explosives capability is market-leading with a new, semi-automated and integrated initiation systems manufacturing facility in Lurin, Peru, according to the company.

Orica’s WebGen and BlastIQ technologies gaining global references

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During Orica’s investor day last week it became apparent that its innovations – namely wireless initiation technology and a digital drilling and blasting platform – are gaining traction across the globe.

Orica has made investments in technologies such as WebGen™ and and BlastIQ™ as part of a shift towards automated drilling and blasting, realising that the days of fully mechanised operations are still some way off.

Alberto Calderon, Managing Director and Chief Executive Officer, set the scene by saying that the world is expected to extract around 3.6 billion tonnes more material in 2023 compared with what was achieved in 2018.

In addition to increased demands being placed on companies involved in mining when it comes to environmental and social responsibility, ore deposits are becoming more difficult to access, he said.

“[They are] often found in remote, difficult to reach parts of our world, and sometimes in the harshest of settings,” he said.

Orica is well equipped to deal with this, having technical expertise, logistics, and experience to allow blasting to continue, he said. He cited Indonesia, and near volcanic earth where the ground is hot and reactive, as an example of the company’s ability to negotiate tricky conditions.

“We can deliver blasted rock to a defined size specification in polar conditions, within the environmentally-sensitive Arctic Circle, and we can ensure miners’ licence to operate is maintained by ensuring that blasting can go ahead as scheduled, without negatively impacting nearby sensitive receptors, like communities.”

The company provided an update on just how successful its WebGen wireless blasting technology has been since launch last year.

The company said there had been growing market interest for this wireless initiation technology, with more than 220 blasts fired globally. This included securing four commercial services contracts and demonstrations underway currently across 11 customers, with another 17 customers in planning. Overall, the company has targeted 20-28 trial sites across all regions by the end of its financial year.

So far, WebGen wireless blasts during these commercial and trial operations had seen a 34% increase in ore recovery, a 20% boost in increased productivity, improved safety and reduced costs, the company said.

In addition, the company has trials in place for expansion into surface applications (gold, coal, iron ore, copper) and Orica is making good progress made on its next generation WebGen200.

When it comes to BlastIQ, Orica said it had, so far, implemented the technologies on 35 sites, with 25 customers. It had three BlastIQ-enabled optimisation service projects to its name, it said.

In terms of customer value, adoption of these technologies had seen a 5% increase in productivity, a 10% reduction in drilling costs and improved safety and regulatory compliance, Orica said.

The company’s regional managers then broke down some of these numbers, as well as mentioned some developments that could lead to higher market uptake.

Darryl Cuzzubo, Group Executive and President for Asia Pacific & Asia, said the underground and open-pit site introduction of WebGen was taking place ahead of plan, with its largest commercial blast and first strata blast taking place in Australia. On top of this, the company had seen licences for the technology approved in Indonesia, with trials to begin in August/September.

Thomas Schutte, Group Executive and President of Europe Middle East and Africa, meanwhile said the company saw potential growth from technology implementation for WebGen, automation and BlastIQ within the mining sectors in Sweden, Finland, Spain and Turkey.

So far, the company had conducted two underground sites of WebGen in the Nordics, while it was planning a large open-pit trial in Europe in the first half of 2020. Africa trials were also on the horizon. In the meantime, the process to gain EU certification and country approvals was underway, he said.

For BlastIQ, Schutte said the company had completed successful trials and commercial sales in the CIS and Africa.

James Bonnor, Group Executive and President of North America, said five sites had, so far, converted to WebGen use across North America (one being Newmont Goldcorp’s Musselwhite mine), while BlastIQ had found its way into over 100 mining and quarry sites in the US, in particular.

Germán Morales, Group Executive and President, Latin America, had 18 site trials of WebGen technology (in progress/planned) to report on, with the company servicing both surface and underground mines.

In terms of BlastIQ takeup, there had been 12 site implementations, eight of these being successfully converted into contracts and four being trials. Overall, the company expected around 20 implementations for the 2019 financial year.

In addition to this, Morales was able to report back on the first worldwide commercial OreTrack™ implementation in Chile and FRAGTrack™ in Colombia. OreTrack provides RFID-based tracking of rock movement from the blast, while FRAGTrack provides blast fragmentation data with auto-analysis capability.

Goldcorp and Orica looking at further WebGen applications at Musselwhite

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Following successful trials of Orica’s WebGen™ 100 at the Musselwhite gold mine, Goldcorp says it is looking at further drill and blast geometries and mining methods using the wireless blasting initiation system at the Ontario mine.

Goldcorp said these blasting tests underground at Musselwhite indicate “a decisive step on the path towards full automation of drill and blast operations in the future”.

In 2016, in collaboration with Orica, Musselwhite began testing WebGen, a system which fires primers through hundreds of metres of solid rock. “The wireless system has been designed to fully integrate with a mine’s existing blasting systems and improves safety by removing people from harm’s way,” Goldcorp said.

The project was recently announced as an award winner, which recognised the development of the temporary rib pillar (TRP) mining method using WebGen.

“The TRP is a revolutionary mining method that uses WebGen technology to extract ore pillars that previously could not be recovered in underground operations,” Goldcorp said. “Using this new method, the main ore of the panel can now be blasted and extracted while the TRP holds back the waste rock backfill. The inaccessible pillars can be blasted, delivering reduced dilution, increased truck fill factors and improved overall productivity.”

The system tested at Musselwhite enables groups of in-hole primers to be wirelessly initiated by a firing command that uses an ultra-low frequency magnetic induction wave to communicate through rock, water and air, according to Goldcorp. “This removes constraints often imposed by the requirement of a physical connection (wires) to each primer in a blast,” the company said.

The magnetic induction wave is transmitted by an antenna at around 1,800 hertz, and received by disposable receivers in each borehole, according to Goldcorp. Each 51 mm-diameter, 320 mm-long disposable receiver has a tri-axis antenna array to receive the signal, supporting any blasthole orientation.

Goldcorp said: “Following the blast plan, each disposable receiver is encoded with the Group ID for its blast, and each detonator with a delay time, just prior to being loaded into the blastholes. A standalone Code Management Computer (CMC) – a tablet wiped of other software – is uploaded with a CSV file from Orica’s blast design software. The CMC assigns the encrypted firing codes and delay timing into a preload blast file. A handheld encoder takes the data from the CMC and encodes each disposable receiver and detonator.”

Three separate codes make up the Group ID, and all three must be received from the transmitter to initiate a blast, according to Goldcorp. First, a wake-up code activates the appropriate disposable receiver from sleep mode. Next, the activated disposable receiver receives an arm code, which calibrates and synchronises the units. Finally, following the mine central blasting protocol, the fire signal is sent, firing each detonator according to its programmed delay time. Other disposable receivers, having not received their wake-up code, remain dormant in their blastholes, ready for subsequent blasts.

Following these tests, further drill and blast geometries and mining methods using WebGen are being explored at Musselwhite, Goldcorp said.

Musselwhite’s Chief Engineer, Billy Grace, said: “Since starting the TRP trials with WebGen in late 2016, our level of comfort with the technology has reached a point that discussing possible wireless applications is an integral part of our mine planning process. The entire team is excited by the possibilities that WebGen opened up, and the new opportunities they are allowing for us to increase our productivity and safety.”

At Orica’s 2018 AGM, Alberto Calderon, Managing Director and Chief Executive Officer at Orica, called WebGen “the most exciting development our industry has seen since bulk explosives in the 1960s”.