Tag Archives: Anglo American

Anglo American and Salzgitter to explore iron ore’s role in low-carbon steelmaking

Anglo American has signed a memorandum of understanding (MoU) with Salzgitter Flachstahl to collaborate on the decarbonisation of the steelmaking industry by exploring ways to reduce carbon emissions.

Salzgitter Flachstahl manufactures a range of steel products optimised for their particular application and is the largest steel subsidiary in the Salzgitter Group, Anglo explained.

The two companies intend to conduct research into feed materials, including iron ore pellets and lump iron ores, suitable for use in direct reduction (DR) steelmaking based on natural gas and hydrogen, a significantly less carbon intensive production method than the conventionally used blast furnace process. The collaboration may also explore developing broader hydrogen technologies.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “We have set ambitious targets to help address climate change by reducing our greenhouse gas emissions, including achieving carbon neutrality across Anglo American’s operations by 2040.

“While steel is a critical building block of our modern lives, and itself a critically needed material for the energy transition, the steel industry is a significant producer of carbon dioxide. That’s why we are committed to collaborating with industry-leading players like Salzgitter Flachstahl to develop strategies that capitalise on the premium quality properties of our products to help drive emissions reduction across the entire steelmaking sector.”

The MoU reinforces Anglo American’s existing commitments to the steelmaking industry, ensuring it continues to provide high-quality iron ore products that help drive efficiency and minimise emissions while new technologies are developed to achieve lower carbon steelmaking, the company said.

It also builds on the long-standing relationship between the two companies and provides a platform to explore opportunities for emissions abatement in the context of the sustainable energy transition.

Salzgitter, as part of the European steel industry, has been developing new steelmaking technologies to reduce its carbon footprint under its SALCOS® (Salzgitter Low CO2 Steelmaking) project. The project is targeting a switch from the use of blast furnace production based on coal to wholly DR steelmaking.

Ulrich Grethe, Chairman of the Management Board of Salzgitter Flachstahl GmbH and member of the Group Management Board of Salzgitter AG, said: “With this project we continue to progress important milestones on the way to low CO2 steel production. In driving our SALCOS technology concept forward, we aim to decarbonise steel production as efficiently and quickly as possible. We are delighted to be partnering with Anglo American, our long-standing major supplier of high-grade ores, for joint reflection and potential projects.”

DR steelmaking depends on high-quality iron ore feedstock, or further beneficiated feedstock from the same locations.

Anglo moves Los Bronces Pit Viper drilling operations to remote operations centre

Anglo American has launched the first Epiroc Pit Vipers operating at its Los Bronces copper mine in Chile to be remotely controlled from its Integrated Remote Operation Center (IROC) in Santiago.

These five drills are the first in Chile and Latin America to be operated from outside the designated mine site, with the company planning to have all five blasthole drills running by fully-autonomous means by 2022, Anglo American Chile said.

All five drills have automatic drilling systems, such as AutoDrill and self-levelling. These features allow the controller to set the target depth of a hole, with the machine automatically drilling, while the self-levelling function results in the machine automatically altering the hydraulics to level the equipment. The rigs are also fitted with a high-precision GPS system with automatic navigation system, which enables the drilling sequences to be carried out after the controller issues the relevant instructions.

The sensors and advanced control systems of this equipment allows the continuation of work routines with minimal human intervention, translating into increasingly safer operations, Anglo American Chile said.

These five rigs in question were previously operated from the Operational Management Room in the Los Bronces mine offices.

The automation initiative is part of a plan for the development and implementation of new technologies for mining at the Anglo American group level, all guided by the overarching FutureSmart Mining™ approach.

“With these innovations, the operation will become autonomous in its drilling cycles, without the intervention of an operator, manually or remotely, turning the operator into a system controller, and making this task much more efficient,” the company said (translated from Spanish).

Anglo has a 50.1% interest in the Los Bronces mine, which it manages and operates.

Delta Drone to run UAV surveying, mapping at Anglo’s Mogalakwena

Australia-based drones-as-a-service provider, Delta Drone International Ltd, is expanding its enterprise mining operations after being appointed by Rustenberg Platinum Mines Limited, a subsidiary of Anglo American Platinum, to provide surveying and mapping services at the Mogalakwena PGM mine in South Africa’s Bushveld Complex.

The contract, secured via Delta Drone’s Rocketmine brand, will see it manage end-to-end mine surveying and mapping services at the mine, including blast monitoring and inspection services. The 2021 contract is expected to generate some A$120,000 ($87,919) in revenue.

Mogalakwena’s PGM production increased by 11% year-on-year to 308,400 oz in the June quarter, owing to higher concentrator throughput, and no COVID-19 impact on production, Anglo American Platinum reported today.

Bis to provide tailored equipment solution for Anglo American Capcoal contract

Australia-based Bis has secured a new multi-year contract for Anglo American’s Capcoal operations near Middlemount, in the Bowen Basin of Queensland.

The off-road haulage, materials handling and site services contract is the latest in an ongoing relationship between Anglo and Bis that spans more than 20 years.

The contract will see Bis supply a tailored high payload equipment solution for the operation’s rejects haulage. Additionally, the company will deliver site services including road maintenance, dust mitigation and run of mine equipment feed, as well as haulage of topsoil, rock and run of mine coal as required.

Bis Chief Executive Officer, Brad Rogers, said the company’s ability to provide a tailored haulage and logistics solution, specific to this operation, was a key factor in securing the new contract.

“We have a long history of integrating customisable OEM innovations and existing solutions to deliver against specific customer objectives. This competency continues to drive operational efficiencies and reduce costs for our customers. It’s a formula that works.

“For instance, the specific higher payload capacity solution put forward for this project delivers significant advantages for Anglo American. It means a reduction in the total equipment required, vehicle movements and fuel consumption; all three of which directly contribute towards improved safety, sustainability and productivity outcomes for the customer.”

The range of tailored equipment incorporated to deliver the project includes double trailer configuration haulers, wheel loaders, graders, water trucks and a compaction roller.

The fleet is fitted with the latest Bis safety and productivity management systems, including Trifecta, which is a new in-cabin artificial intelligence driver and vehicle monitoring software developed with EDGE3 Technologies. The system collects and analyses data in real time to improve both safety and productivity. The system collects, analyses and reports driver behaviours such as drowsiness, mobile phone use, smartwatch use, smoking, seatbelt and other violations. Trifecta then ‘learns’ over time to pre-empt high risk incidents in real-time through alerts to drivers and supervisors. Bis says it has exclusive rights to use and sell the system across a range of markets.

On site mobilisation for this new contract is expected to commence from August.

Anglo American tests out sustainable biofuel in shipping operations

Anglo American says it has successfully trialled the use of sustainable biofuel to power a chartered capesize ship during a voyage from Singapore to South Africa.

The biodiesel blend, produced by converting waste cooking oil from Singapore’s food and beverage industry, reduces carbon dioxide emissions compared with using 100% conventional marine fuel.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Low emission ocean freight is crucial in driving the long-term sustainability of the maritime industry. Shaping an effective transition requires a comprehensive framework of complementary solutions, in which alternative marine fuels have an important role to play.

“We are partnering with like-minded industry players to improve our understanding of factors likely to impact the future scalability of this solution. The success of this trial marks an important step forward in establishing biofuel as a viable option, aligned with circular economic principles. These efforts also reinforce our commitment as an organisation to reduce emissions across the entire value chain, as we work towards carbon neutrality across our operations by 2040.”

The trial conducted onboard the ‘Frontier Jacaranda’, a capesize bulk carrier owned by Japanese shipping company NYK Line, was instrumental in verifying the stability of the biofuel in storage and its performance as a fuel, Anglo said.

Data gathered is providing new insights into wider efforts to introduce biofuel to the maritime sector, paving the way to improving its cost-effectiveness and using higher percentage blends in future trials, the company added. The conversion of waste cooking oil into fuel for transportation aligns with the principles of the circular economy, by providing a fresh and environmentally beneficial use for what would otherwise be disposed of.

Toyota Tsusho Petroleum supplied the biodiesel blend, consisting of 7% biofuel and 93% regular fuel. This combination reduces carbon dioxide emissions by around 5%, is compliant with the International Standard Organisation’s requirement for marine fuels and requires no substantial engine modifications, according to the company.

Anglo American partnered with Singapore firm Alpha Biofuels, which converts waste cooking oil into biofuel, to blend this sustainable biodiesel via shore tanks in Singapore.

Anglo is investigating several ways through which to reduce carbon intensity in its ocean freight operations, including the use of ammonia as an alternative marine fuel, as well as adding capesize+ vessels into its chartered fleet fuelled by LNG which reduces CO2 emissions by approximately 35%.

Anglo set to complete thermal coal exit with Glencore Cerrejón transaction

Anglo American looks set to complete its exit from thermal coal, having agreed to sell its 33.3% interest in the Cerrejón joint venture, in Colombia, to Glencore for around $294 million.

Glencore and BHP currently each also hold a 33.3% interest in Cerrejón, with Glencore intending to acquire both Anglo American’s and BHP’s interests for $588 million in total, thereby assuming full ownership of the asset upon completion.

Cerrejón is one of the largest surface mining operations in the world and mines high-quality thermal coal for the export market. It moves 550 Mt/y by 100% truck and shovel equipment, using more than 300 trucks.

Anglo, earlier in the year, agreed to demerge its thermal coal operations in South Africa to a new holding company called Thungela Resources Limited, with the latest agreement on Cerrejón marking the completion of its thermal coal exposure.

Mark Cutifani, Chief Executive of Anglo American, said: “Today’s agreement marks the last stage of our transition from thermal coal operations. During that transition, we have sought to balance the expectations of our wide range of different stakeholders as we have divested our portfolio of thermal coal operations, in each case choosing the exit option most appropriate for the asset and its distinct local and broader circumstances.”

Both transactions are subject to a number of competition authority and other regulatory approvals, with completing expected in the first half of 2022.

Glencore said on the transactions: “Based on our long-term relationship with Cerrejón and knowledge of the asset, we strongly believe that acquiring full ownership is the right decision and the progressive expiry of the current mining concessions by 2034 is in line with our commitment to a responsible managed decline of our coal portfolio. Production volumes are expected to decline materially from 2030.”

Emapper shoots for the skies after concluding successful METS Ignited backed project

METS Ignited Collaborative Project Funds recipient Emapper has recently brought together industry partners, customers, service providers and supporters to celebrate the completion of its environmental site monitoring project in Australia.

Emapper and collaborative partners developed a multi-scale and multi-source environmental data platform to monitor, manage and reduce mining’s footprint and extend the global capability of mine site rehabilitation technology, according to METS Ignited.

METS Ignited’s industry-matched investment enabled this world-first technology to be rapidly developed and proven with strong support and engagement from customers Roy Hill and Anglo American, it said.

Emapper is an ecological restoration platform that uses UAVs, satellites, mobile field data and IoT sensors to monitor, guide and improve environmental performance. Users can identify and visualise environmental impacts and outcomes using on-demand analysis tools, selecting, procuring and deploying a variety of data sources to suit the sites, activities and requirements of the user. This allows users to produce customised compliance and management summary reports for all restoration and rehabilitation areas to plan, compare and share progress.

Across the life of the METS Ignited-backed project, Emapper has expanded its workforce from three to 10 full-time staff and increased its revenue more than 10-fold at the end of the project (September 2020), with significant growth anticipated in the next five years, METS Ignited says.

Emapper CEO, Julian Kruger, says the project funding has been foundational in bringing its ground-breaking technology to commercialisation, leading to better environmental outcomes and confirming Australia’s position as a global leader in mine rehabilitation.

“The funding helped us to reach our goal of creating a spatial analytics platform enabling faster, cheaper, safer environmental rehabilitation, by providing more data, improved results and better reporting to meet regulatory needs,” he said. “This project would not be possible without our collaborative partners Roy Hill Iron Ore Pty Ltd, Anglo American Metallurgical Coal Pty Ltd, Mount Gibson Iron Ltd, eagle.io Pty Ltd, Astron Environmental Services Pty Ltd and Solais Geoinformatics Pty Ltd.

“We are now focused on continuing to grow our Australian footprint, as well as expanding the service to international markets – everything we have learned from rolling out the platform to clients across all mining jurisdictions throughout Australia can be now applied to our international expansion.”

METS Ignited Industry Engagement Manager, Peter Clarke, says the remote capabilities of the Emapper platform continue to be advantageous to the company’s expansion.

“The great thing about Emapper is that it lets environmental managers and mine operators get amazing insights on their environmental performance whilst remaining remote,” he said. “Julian and the team have found that a number of their local clients who also operate internationally are now picking up on that opportunity.”

Anglo American pursues 3D printing of spare parts with CSIR and Ivaldi Group

Anglo American has partnered with the South African Council for Scientific and Industrial Research (CSIR) and US-based technology company, Ivaldi Group, to explore opportunities to digitally distribute spare parts for mining and processing equipment to be manufactured locally using 3D printing.

The project includes an analysis of Anglo American’s inventory of spare parts, such as impellers for pumps, shaft sleeves, gasket bonnet valves, and mining rock drill bits, exploring the impact of adopting a digitally distributed supply chain, and then digitising, locally producing and testing these parts at Anglo American’s operations in South Africa, Anglo said.

This partnership is the latest manifestation of Anglo American’s Collaborative Regional Development (CRD) approach to helping create “thriving communities”, as part of the company’s Sustainable Mining Plan commitments.

“Through strategic partnerships, CRD aims to create long-term economic prosperity within Anglo American’s host communities and regions beyond the expected life of a mine,” the company said. “To that end, Anglo American launched the Impact Catalyst in 2019 together with its partners the CSIR, Exxaro, Zutari, World Vision SA and the provincial government of Limpopo.”

Matthew Chadwick, Head of Socio-Economic Development and Partnerships at Anglo American, said: “Our FutureSmart Mining™ approach to sustainable mining is presenting us with new and innovative opportunities to build thriving and resilient communities, now and into the future. Through partnerships like this one with CSIR and Ivaldi, we are re-imagining long-established norms to help deliver enduring value to society.

“The ability to send files – not physical spare parts – will reduce our carbon footprint, delivery lead times and logistics costs. Importantly, this has the clear potential to create industrial and service jobs for host communities and surrounding regions through on-demand manufacturing systems to produce spare parts locally.”

Espen Sivertsen, CEO of Ivaldi, said: “We believe that digital distribution of physical goods is a natural next step for the global spare parts supply chain. It is part of the fourth industrial revolution. Working with world-leading organisations like Anglo American and the CSIR, we are now practically demonstrating that there are significant savings for businesses and a net positive impact for the environment and associated communities.”

Charl Harding, CSIR’s Business Development Manager, added: “When we first explored this opportunity to develop sustainable local on-demand manufacturing solutions we saw an immediate fit with our additive manufacturing and materials expertise. The 3D printing of parts along with the application of additive manufacturing technologies to refurbish worn parts offers the potential to create local jobs, promote innovation for the inclusive and sustainable advancement of industry and society whilst responding critical issue of climate change.”

Thungela to acquire Anglo American’s South African thermal coal operations

Anglo American has agreed to demerge its thermal coal operations in South Africa to a new holding company called Thungela Resources Limited.

The separation deal, which is subject to the approval of Anglo American’s shareholders on May 5, 2021, will be implemented through the transfer of Anglo’s South Africa thermal coal operations to Thungela, the demerger of the Thungela shares to Anglo American shareholders and the primary listing of Thungela’s shares on the Johannesburg Stock Exchange (JSE) and standard listing on the London Stock Exchange (LSE).

Thungela had 16.5 Mt of attributable export production to its name in 2020, with its operations close to an established rail network with secure access to export markets via the Richards Bay Coal Terminal. It has 137 Mt of reserves and 756 Mt of resources, along with seven operations (four open-pit and three underground).

Anglo’s operations, meanwhile, are derived from three wholly owned and operated mines – Goedehoop, Greenside and Khwezela; Zibulo (73% owned, pictured); as well as from Mafube colliery, a 50:50 joint operation. It supplies around 19 Mt/y of export thermal coal from these mines.

Mark Cutifani, Chief Executive of Anglo American, said: “Anglo American has been pursuing a responsible transition away from thermal coal for a number of years now. As the world transitions towards a low carbon economy, we must continue to act responsibly – bringing our employees, shareholders, host communities, host governments and customers along with us. Our proposed demerger of what are precious natural resources for South Africa allows us to do exactly that.”

He added: “We are confident that Thungela will be a responsible steward of our thermal coal assets in South Africa, benefiting from an experienced and diverse management team and board. While representing just a small proportion of Anglo American today, we are laying the foundation for South Africa’s leading coal business, setting it up for success to deliver value for all its stakeholders. Looking forward, we believe the prospects for long-term value delivery are greatest as two standalone businesses, each with their own strategy and access to capital.”

July Ndlovu, CEO of Thungela, said: “Thungela is a leading South African producer of high quality, low cost export thermal coal, well positioned to benefit from improved market conditions, and providing a reliable and affordable energy source to our customers mainly in developing economies. We have significantly repositioned and upgraded our portfolio in recent years into a highly competitive producer of export product, with established access to world-class export infrastructure.

“As an independent business we will continue to contribute significantly to our host communities and South Africa’s development objectives. As part of our commitment to creating an enduring positive legacy, we are establishing an employee partnership plan and a community partnership plan, with each holding a 5% interest in the Thungela thermal coal operations in South Africa, thereby enabling employees and communities to share in the financial value that we generate.”

The proposed demerger recognises the diverse range of views held by Anglo American’s shareholders in relation to thermal coal and therefore provides Anglo American’s shareholders, including those with specified investment criteria, with the choice to act on such views and, following the implementation of the proposed demerger, to either retain, increase or decrease their interests in Thungela, Anglo explained. The proposal also allows Thungela to attract new shareholders and to access new sources of capital as an independent company offering direct exposure to thermal coal.

Anglo American says it is committed to setting up Thungela as a sustainable standalone business, including by providing an initial cash injection of ZAR2.5 billion (~$170 million) and further contingent capital support until the end of 2022 in the event of thermal coal prices in South African rand falling below a certain threshold.

Following the implementation of the proposed demerger, and in line with Anglo American’s responsible approach, Anglo American’s marketing business will continue to support Thungela in the sale and marketing of its products for a three-year period with an additional six-month transitional period thereafter, the company said.

“This transitionary arrangement ensures that customers receive a consistent service and supply of thermal coal while Thungela concentrates on enhancing the performance of its operations while continuing to receive optimal value for its products in the market,” Anglo said. “The three-year term, and the additional six-month roll-off period, also provide time for Thungela to build its own global marketing capabilities should it choose to do so.”

For the proposed demerger to be implemented, Anglo American shareholder approval will be sought at a general meeting and court meeting, both expected to be held on May 5 following Anglo American’s Annual General Meeting. If it is approved, it is expected the demerger would be effective on June 4, 2021, with Thungela’s shares being listed and admitted to trading on the JSE and LSE on June 7, 2021.

Following completion of the proposed demerger, 100% of the issued share capital of Thungela will be held by Anglo American shareholders who will each receive one Thungela share for every 10 Anglo American shares they hold. Each Anglo American shareholder will also retain their existing shareholding in Anglo American. Thungela will hold 90% of the thermal coal operations in South Africa with the remaining 10% held collectively by the employee partnership plan and the community partnership plan.

Anglo American and ENGIE agree on ‘green’ electricity supply for Quellaveco

Anglo American and ENGIE’s Peru-based subsidiary have signed an agreement to convert the current contracted energy supply for the Quellaveco copper project to 100% renewable sources, in addition to agreeing on another eight years of energy supply for the mine, starting in 2029, from “green energy” inputs.

The agreement will see Quellaveco, a copper project being developed by Anglo and Mitsubishi Corp, become the first mining operation to promote the construction of a non-conventional renewable energy plant, according to ENGIE.

As part of the pact, ENGIE Energía Perú has agreed to convert the total electricity supply for Quellaveco (187 MW) to 100% green energy, with 150 MW of supply over eight years from 2029 also coming from green energy sources.

ENGIE Energía Perú will source the renewable energy from its Punta Lomitas wind power plant, an in-development wind farm with a joint nominal capacity of 260 MW located in Ocucaje-Ica and a 60 km transmission line connecting the plant with the National Interconnected Electric System. The project has been granted a generation and transmission concession by the Ministry of Energy and Mines, and construction is expected to start in the second half of 2021, the company says.

Tom McCulley, CEO of Anglo American in Peru, said: “We are working from different areas to contribute to a healthy environment. Our goal is to transform the very nature of the industry to ensure a safer, cleaner and more sustainable future.

“By resorting to the use of higher precision technologies, such as those that Quellaveco will have, as well as by focusing on consuming less energy and less water, we will reduce our environmental footprint for every kilogram of copper that we produce, starting in 2022.”

Rik De Buyserie, CEO of ENGIE Energía Peru, added: “Thanks to the renewable energy certificates delivered by the Punta Lomitas Power Plant to supply the demand for the Quellaveco project, we are proud and committed to accompany our client Anglo American and mining in Peru, on their path to carbon neutrality.”

Quellaveco, owned 60% by Anglo and 40% by Mitsubishi Corp, comes with a production blueprint of 300,000 t/y of copper over the first 10 years of the mine, with first production expected in 2022.