Tag Archives: Anglo American

Anglo American to sell Queensland steelmaking coal assets to Peabody Energy

Coal technology, Mining mergers and acquisitions, Steel and iron ore, , , , , , , , ,

Anglo American has agreed to sell its portfolio of steelmaking coal mines that it operates in Australia to Peabody Energy for a cash consideration of up to $3.78 billion.

Peabody’s agreed cash consideration comprises an upfront cash consideration of $2.05 billion at completion; deferred cash consideration of $725 million; the potential for up to $550 million in a price-linked earnout; and contingent cash consideration of $450 million linked to the reopening of the Grosvenor mine.

The steelmaking coal portfolio under Anglo American consists primarily of an 88% interest in the Moranbah North joint venture; a 70% interest in the Capcoal joint venture; an 86.36% interest in the Roper Creek joint venture; a 51% interest in the Dawson joint venture, Dawson South joint venture, Dawson South Exploration venture.

The acquisition includes four metallurgical coal mines – Moranbah North, Grosvenor, Aquila and Capcoal – in Australia’s Bowen Basin, which is widely recognised for the world’s highest-quality steelmaking coal. Approximately 80% of the mines’ output is hard coking coal. The mines are complementary to Peabody’s existing Australian platform, the company says, including Centurion mine, and are expected to produce approximately 11.3 Mt of primarily hard coking coal in 2026. The acquired mines have an average mine life greater than 20 years with 306 Mt of marketable reserves and an additional 1,700 Mt of coal resources.

The acquisition is expected to transform Peabody’s metallurgical coal segment, increasing metallurgical coal production from an estimated 7.4 million tons in 2024 to an expected 21-22 Mt in 2026.

At the same time as Peabody and Anglo American announced this transaction, PT Delta Dunia Makmur Tbk, through its indirect subsidiary, PT Bukit Makmur Internasional (BUMA International), announced that it had entered into a binding agreement with Peabody subsidiary, Peabody SMC Pty. Ltd., to acquire that 51% interest in the Dawson Complex for $455 million, granting BUMA International a controlling interest in this mine.

Duncan Wanblad, Chief Executive of Anglo American, said: “The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world-class copper, premium iron ore and crop nutrients business. Through focus, asset quality and outstanding growth options, Anglo American will offer a highly differentiated investment proposition supported by strong cash generation and the capabilities and longstanding relationship networks that can deliver our full potential. We are absolutely focused on delivering that strategy and unlocking the associated value as we streamline our cost structures and create a much simpler, more resilient and more agile business that will enable full market value recognition.

“All the transactions to deliver our portfolio transformation are well in train – the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed. We expect De Beers to follow, recognising its unmatched industry and brand position and good progress in working with stakeholders to position the business for long term success as we work toward separation for value. We are well progressed with the delivery of $1 billion of cost savings and have detailed plans in place to deliver at least an additional $800 million in pre-tax recurring cost benefits on a run-rate basis from the end of 2025 as we progress the portfolio transformation.

“In steelmaking coal, through a combination of today’s announced transaction and our previously announced agreement to sell our interest in Jellinbah, we stand to unlock up to $4.9 billion of value, reflecting the high quality of the assets and adding to our balance sheet resilience. Peabody is a long-established and respected operator and we will work together and with our workforce, local communities, government, customers and partners to ensure a successful transition.”

Jim Grech, President and Chief Executive Officer of Peabody, added: “We’re pleased to acquire these world-class assets from Anglo American, a company that shares our strong values of safety, sustainability and social licence to operate. We look forward to integrating these assets, teaming up with their highly skilled workforce, and aligning with our new mine joint venture partners to create long-term value.”

The transaction is subject to a number of conditions, including customary competition and regulatory clearances, and pre-emption arrangements. The upfront cash consideration is subject to normal completion adjustments and completion is expected by the September quarter of 2025. Peabody has agreed to pay a $75 million deposit on signing which Anglo American is entitled to retain if the sale is terminated in certain limited circumstances.

Metso teams up with Anglo American to develop ‘breakthrough hydrocyclone technology’

Comminution of minerals, Mineral processing, Mining equipment, Sustainable mining, , , , ,

Metso says it has launched a “breakthrough hydrocyclone technology” in the form of the MHC Hydrocyclone Curved Bottom (CB), a cyclone designed for superior particle separation with increased unit capacity and coarser cut sizes while minimising the fines bypass.

The MHCTM CB hydrocyclone is ideal for grinding circuit classification – from primary to fine grinding – and for a full range of mineral types, according to Metso. It is highly compatible with dewatering and desliming applications, and relevant to both greenfield and brownfield projects with a design that makes it easy to retrofit into existing hydrocyclone clusters.

Ben Klein, Product Group Manager of Hydrocyclones at Metso, says: “The design of the MHCTM CB is based on the proven MHCTM Hydrocyclone but upgraded with new innovative features, making it a true breakthrough technology for the classification process. Thanks to this unique patented design, the new hydrocyclone offers higher unit capacity compared to standard hydrocyclone technologies. The MHCTM CB is also capable of producing coarser overflow products for a given hydrocyclone size, allowing for greater flexibility in classification and especially beneficial to new coarse particle flotation circuits. Finally, it provides enhanced classification efficiency by minimizing unwanted fines and water in the underflow.”

The solution was developed in partnership with Anglo American, which has worked with Metso since the onset in investigating improvement in hydrocyclone classification, according to Klein.

“Anglo American has provided support with both large-scale laboratory and pilot testing to prove the technology,” he explains. “Imperial College has also provided support in bringing this concept to light and in confirming the validity of this new technology as a third party.”

Metso is promoting this product for a variety of applications including, but not limited to, lithium, gold, aggregates, nickel, magnetite, hematite, limestone, aluminum, zinc, molybdenum and silica.

Thanks to its energy efficiency and reduction in CO2 emissions compared with similar wet classification technologies, the MHCTM CB hydrocyclone has been approved as part of Metso’s Planet Positive offering.

Macmahon Holdings to carry on contracting at Anglo’s Dawson South

Mine operation news, Mining equipment, Mining services, , ,

Macmahon Holdings says it has been reappointed as the mining contractor at the Dawson South project, in Queensland, Australia, three years after initially getting the gig.

The Dawson South project forms part of the Dawson Mine, an open-pit steelmaking coal mine 180 km west of Gladstone, which is owned by Anglo American.

Macmahon is the incumbent mining contractor at the Dawson South project and will continue to provide open cut mining services using the current Macmahon workforce, including load and haul, and equipment maintenance under the new contract.

The contract commences on July 1, 2024, for a period of up to three years, adding approximately A$130 million ($87 million) annually to Macmahon’s secured order book.

The capital expenditure requirements and capital intensity of this project over the new term is significantly lower following the sale of Macmahon’s Dawson South equipment fleet earlier this year, which will continue to be used on the project. Macmahon announced the sale of assets to the market on April 12, 2024, which it said at the time was expected to result in net cash inflows of approximately A$44 million to be collected during its 2024 and 2025 financial years.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to be reappointed as mining contractor for the Dawson South project where we have worked to build an excellent relationship with our client. Macmahon recently sold a substantial portion of the Dawson South equipment fleet which will continue to be used at the mine. I believe the new contract structure benefits our client, is aligned with Macmahon’s capital light strategy, and improves ROACE (return on average capital employed) performance, where we recently increased the target from 15-20%. I would like to thank the Macmahon team that has worked closely with Dawson Mine to deliver this solution.”

ICMM offers up Taskforce on Nature-related Financial Disclosures guidance

Environmental, Mining services, , , , , , ,

ICMM says it welcomes the publication of the Taskforce on Nature-related Financial Disclosures (TNFD) Sector Guidance: Metals and Mining as an important step in catalysing a shift to an economy that supports nature. The guidance will enable mining and metals companies to identify, assess, manage and disclose nature related issues, it says.

ICMM is TNFD’s official piloting partner for the mining and metals sector, and has collaborated with 13 companies and cross-sector partners including NGOs BirdLife International and Fauna & Flora to develop TNFD’s sector guidance and reporting metrics. This sector-specific material supports mining and metals companies implementing TNFD’s wider framework in managing the nuances unique to the sector, as they work on integrating nature-related issues into their governance, strategic planning, risk management and disclosures.

With a recent report from Oxford University suggesting that shocks to the global economy related to biodiversity loss and ecosystem damage could cost upwards of $5 trillion, ICMM says it recognises the imperative of putting nature at the centre of decision making.

In January, ICMM’s 24 members, which represent around one-third of the global sector, committed to taking urgent action on nature, setting out a series of actions across their direct operations, value chains, wider landscapes and creating the conditions required to achieve systems transformation. These commitments are supported by transparent disclosures on performance outcomes, including publishing the results of nature-related impact and dependency assessments, and setting targets to address these. ICMM members are now focused on implementing these commitments.

This includes disclosing material nature-related impacts, dependencies, risks and opportunities for operations in priority locations by 2026 and the most material value chain categories or issues by 2030. TNFD’s new resources launched today will help to support this enhanced level of disclosure, ICMM says. Mining and metals companies have been reporting on their impacts on biodiversity for decades; this guidance goes much further to capture how their interactions with nature impacts businesses, it added.

Rohitesh Dhawan, President and CEO of ICMM, said: “We must acknowledge that mining activities have contributed to nature loss, but ICMM members are demonstrating how responsible mining can play a leading role in creating a nature positive future. I’m really proud that several ICMM member companies were among the early adopters of the TNFD framework, serve on the TNFD Forum and Taskforce, and have been one of the first in any sector to publish a TNFD assessment report.

“ICMM’s January commitments were the first collective sector approach to nature launched so far – one that we hope will provide learnings and guidance for other companies in the sector, and indeed other industries. TNFD’s new sector guidance and metrics can help companies to accelerate their implementation of these commitments, and their wider nature positive efforts.”

Duncan Wanblad, Chief Executive of Anglo American (TNFD Taskforce Member), said: “As a Taskforce Member and early adopter of TNFD, and as a member of ICMM, we were pleased to play an active role in the development of the Sector Guidance for Metals and Mining, representing another important milestone in the progression of TNFD and a significant contribution to the Global Biodiversity Framework’s Target 15. Our sector has an important synergistic association with nature and as a sector we have a great opportunity to be an enabler of positive change bringing together NGO partners, community and regional stakeholders and academic institutions to drive measurable actions on the ground.”

Libby Sandbrook, Director, Business & Nature Programme, Fauna & Flora: “Fauna & Flora is pleased to welcome the launch of the mining and metals guidance by TNFD. It will provide invaluable support to companies in the sector seeking to implement TNFD’s recommendations. We hope it will encourage more companies not only to disclose their nature-related risks and opportunities, but to take a positive approach to bending the curve on nature loss.”

Richard Grimmett, Head of Conservation, BirdLife International: “The new metals and mining guidance is an important further step towards the sector taking science-based action to improve the nature-related impact of the industry. The TNFD LEAP approach and disclosures provide a critical step in moving the industry towards a model which recognises and addresses its impact on nature. At BirdLife International, we look forward to seeing how the insights from the TNFD drive action and financial investment towards outcomes which benefit people and nature.”

Anglo American introduces teleremote dozing at Capcoal Complex

Automation, Coal technology, Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , , , ,

Dozer operators at Anglo American’s Capcoal Complex in Queensland, Australia, are in training to embrace remote control technology to improve operator safety on site, the company says.

The operation, near Middlemount, is trialling a remote-controlled stockpile dozer ahead of plans to retrofit the entire fleet.

Anglo American, which operates five steelmaking coal mines across the Bowen Basin, will reduce in-cab dozer exposure time by 45,000 to 75,000 hours a year once the technology is fully deployed across all sites.

Coal handling and processing plant dozer operators are the first to gain experience operating teleremote dozers as part of a pilot program to reduce exposure to concealed stockpile voids. The pilot includes the retrofit of a stockpile dozer with the latest Wi-Fi-enabled technology to set up connectivity between the machine and operator chair in the control centre.

An Anglo American Australia spokesperson told IM that the company had collaborated with RCT on this trial, leveraging RCT’s OEM-agnostic ControlMaster® solution.

Capcoal General Manager, George Karooz, said it was the first time the remote control dozer technology would be used at Anglo American’s Australian operations.

“Upskilling our workers in this new technology is paramount to its success because their expertise is irreplaceable, even when the work is done remotely,” he said. “In pursuit of safety and efficiency, the mining industry has been a constant driver of innovation for generations.

“Operating our fleet of dozers from a safe distance will reduce the number of hours in the cab and fully remove our operators from the dozer seat in what is another significant advancement in autonomous mining.”

Acting Automation Operations Manager, Matthew Wakeford, said operators were being trained in how to control a dozer from a remote control centre, in a transition that has been nine months in the planning.

“We are re-imagining mining to improve people’s lives. From a business safety perspective, this will remove our coal miners from the hazards of working with voids in our coal stockpiles,” he said. “We are starting with small steps as our workers adjust from the ‘feeling’ of manual operation to remote control with cameras and computer screens.

“We already have microphones in the machine sending the sound back to the operators along with six cameras on the dozer itself – as well as cameras around the stockpile which can all be adjusted remotely.

“Through feedback, we are now looking at whether we can adapt the chair to tilt and provide movement feedback through the joystick the same way our operators would sense the stockpile beneath when manually operating the dozer.

“We’re starting with just one dozer, but the plan is to ramp up and retrofit the entire fleet – that’s 13 in total across our Capcoal and Moranbah operations.”

Anglo American launched the trial in January, with the pilot program involving the setup of a room in a building in close proximity to the stockpile. The spokesperson added: “Once it’s rolled out to further machines across the Australian business, the teleremote dozer operators will be in a dedicated control room.”

First Mode opens new Seattle factory, boosts hybrid electric vehicle retrofit capacity

Environmental, Mining equipment, Mining services, Power supply for mines, Sustainable mining, , , , , , , , ,

First Mode has hosted the grand opening of its factory in the SoDo district of Seattle, significantly boosting its capability to manufacture hybrid electric vehicle (HEV) retrofit kits for the mining sector.

Washington State Governor, Jay Inslee, and Zero Emission Transportation Association Executive Director, Albert Gore, among other key government, industry and union leaders, were there for the offical ribbon cutting, reflecting on the company’s work to decarbonise heavy industry.

The 40,000 sq.ft (3,716 sq.m) factory is now one of the largest clean tech manufacturing facilities in the city, according to First Mode, which is majority owned by Anglo American. Each year, it will produce the components and systems for up to 150 First Mode HEV retrofits. In addition, it is equipped to not only double its annual HEV throughput but rapidly pivot to full battery and hydrogen fuel cell EV retrofits as customer demand also grows for the company’s zero-emissions products, First Mode said.

The $22-million factory will employ up to 30 staff locally and cultivate impact around the world by helping to reduce the emissions of heavy industry, a hard-to-abate sector that is responsible for a quarter of carbon emissions globally, First Mode says.

“In mining, for example, a typical ultra-class haul truck – about the size of a three-story building – burns about one million litres of diesel fuel per year, producing around 2,700 t of carbon dioxide annually,” the company explained. “Across our customer market, over 13,000 haul trucks are in global operation, releasing 35 million t of carbon dioxide annually – the equivalent of nearly eight million gas-fueled passenger cars each year, slightly more than the number of cars in Washington state (USA).”

With no changes to infrastructure required, First Mode’s HEV retrofit keeps the truck’s existing assets intact – safeguarding the mining company’s previous investment in the truck while reducing its fuel usage and carbon emissions by up to 25%.

“But what fully differentiates First Mode’s HEV from the rest is its flexible, interoperable design that readies the truck for the final step on its path to zero emissions,” the company said. “Specifically, the design “feeds forward” into either First Mode’s full battery or next-generation hydrogen fuel cell electric vehicle drivetrains, both of which are diesel-free.”

With an annual expected throughput of up to 150 HEV units, the First Mode factory is poised to generate the equivalent environmental impact of taking 90,000 passenger cars off the road each year.

First Mode CEO, Julian Soles, said: “With our factory, the clean energy future for heavy industry begins here in Seattle. [This is] because greener economies require greener minerals, and greener minerals require greener mines.”

DIG CT to bring MinEx CRC’s RoXplorer coiled tubing drilling tech to the market

Environmental, Mineral exploration, Mining equipment, Mining services, , , , , , , , , , , ,

MinEx CRC says has struck a commercialisation deal with DIG CT, a niche Australia-based drilling company set to bring MinEx CRC’s RoXplorer® coiled tubing (CT) drilling technology to market.

The CT drilling platform enables mineral exploration companies to significantly improve their environmental footprint and productivity by meeting the challenges of exploring in deep cover frontier provinces, barely touched in decades of previous exploration, according to MinEx CRC.

Developed in collaboration with industry partners Anglo American, BHP, Epiroc, LKAB Wassara, South32 and the Minerals Research Institute of Western Australia (MRIWA), the CT platform can drill through unconsolidated cover and hard-rock formations to depths of 500 m, delivering safety, efficiency, productivity and high-quality sampling with minimal infrastructure and streamlined operating processes.

“The key feature of RoXplorer CT drill rig is the patented mast design and over-the-hole positioning of the coil reel,” MinEx CRC CEO, Andrew Bailey, said.

“This enables increased coil life, seamless transition between CT and conventional top-drive drilling, rapid loading and unloading of tooling and drill string incorporated on the rig for ease of set up, pack down and transport.”

DIG CT Founder and Director, and Global Drilling Specialist, Craig Lavrick, said: “I’m proud to have been involved with the CT rig platform’s development since its inception, for over a decade. I consider coil tubing technology a ‘game changer’ and necessary next generation equipment to elevate exploration drilling to a safer, greener and more productive industry.”

Since August 2021, the CT platform has safely completed over 14,000 m of drilling in collaboration with Geological Survey of South Australia, Geological Survey of Western Australia, Geoscience Australia, Anglo American and EnviroCopper. Drilling trials demonstrate the system’s success and application to real-world, deep cover exploration scenarios while providing cost, productivity, safety and environmental benefits when compared with conventional drilling platforms.

The commercialisation deal between MinEx CRC and DIG CT will see the RoXplorer CT drilling platform offered as a drilling service for hire, with one initial drill rig in operation, with the intent to grow the fleet as mineral explorers recognise the value and utility of the novel CT technology, MinEx CRC says.

In February 2023 MinEx CRC announced a manufacturing deal with rig manufacturer, Schramm – now a subsidiary of the Epiroc group – who are ready to build the new fleet of CT drill rigs as demand increases, according to the organisation.

Anglo American and Finnish Minerals Group look to progress Finland’s battery strategy

Base metals, Energy minerals, Environmental, Mineral project development, Precious metals, , , , , , , , , , , ,

Anglo American and Finnish Minerals Group have signed a memorandum of understanding (MoU) to work together to explore opportunities to, they say, further support Finland’s battery strategy.

Finnish Minerals Group is a holding and development company that manages the Finnish Government’s mining industry shareholdings and supports the development of the Finnish battery value chain. Among other assets, it holds the Terrafame nickel heap leach mine.

Alison Atkinson, Projects & Development Director at Anglo American, said: “Finland is a highly attractive investment destination and has a strong heritage in both mining and innovation. We look forward to working with Finnish Minerals Group, whose mission is to responsibly maximise the value of Finnish minerals, to explore the wealth of opportunities that our agreement could offer.

“This agreement further strengthens our commitment to Finland as well as to our Sakatti project, a true polymetallic orebody very much aligned to Finland’s and the EU’s critical minerals priorities. Sakatti is designed as the next generation of FutureSmart Mining™, building on what we have learned in terms of minimal surface footprint and using technology and innovation to deliver ever better environmental and social outcomes, whilst producing essential raw materials needed to transition to a greener, low carbon energy future.”

Atkinson said last year during a sustainability performance update that Sakatti was set to be “a remotely operated, low carbon-underground mine with an electric mining fleet using technology and mining methods that will create zero waste and enable high degrees of water recycling, contributing to a sustainable supply of critical minerals”. The company also sees the potential to use sorting technologies for coarse particle rejection and material recovery opportunities at the project.

Jani Kiuru, Senior Vice President, Raw Materials at Finnish Minerals Group, said: “Exploring joint opportunities with Anglo American is a natural choice for us as they already know the Finnish operational environment. In addition, the company has a long history in mining and is a forerunner in sustainability. We believe this collaboration reinforces both parties by combining local and global knowhow in sustainability and technological development, thus maximising the value of Finnish minerals responsibly. We see there is a mutual understanding on the vast possibilities and importance of Finnish minerals for the green transition.”

As a Finnish state-owned company with a mandate to foster the Finnish mining and battery industry, Finnish Minerals Group is a natural potential partner for Anglo American in Finland, Anglo American says. The company’s main assets are: Terrafame, a subsidiary that produces nickel and cobalt sulphates; project Sokli, a phosphate and rare earths deposit; and a 20% interest in Keliber, a battery-grade lithium project aiming to start production in 2025. Additionally, Finnish Minerals Group is advancing several greenfield investments further downstream in the battery value chain.

Anglo American partners with GEM on resource-efficient battery material use R&D

Base metals, Energy minerals, Environmental, Mineral processing, Sustainable mining, , , ,

Anglo American has launched a research and development project in collaboration with GEM, one of China’s largest battery and battery material recyclers, to explore new and more efficient technologies for the use of existing and alternative raw materials to be used in batteries for electric vehicles (EVs).

Paul Ward, Executive Head of Base Metals Marketing for Anglo American, said: “Our diversified portfolio includes a range of products critical to the long-term decarbonisation of transport – a sector estimated to account for over 15% of global emissions. We are collaborating with leaders in the sector to explore new technologies that build on the physical qualities of our portfolio of products to help tackle some of the key challenges facing the industry and contribute to the
sustainable scale-up of EV travel.

“Our work in this space is part of our commitment to supply our customers with products tailored to their specific needs and that capitalise on the opportunities offered by ongoing technological innovation.”

The project will focus on jointly developing metal dissolving technologies, using metals such as nickel, cobalt and manganese, to facilitate a more efficient use of battery materials, from either mined or recycled routes, with the intention of improving existing processes as well as exploring the use of new materials not currently employed in the battery value chain.

China is the world’s largest EV market, with an expected eight million vehicles sold in 2023. GEM is a leading global battery material producer, with pioneering technology and capability to recycle batteries through the extraction of the minerals they contain, Anglo American says.

Professor Xu Kaihua, founder and Chairman of GEM, said: “We have over two decades of experience in recycling batteries and electronics and have invested heavily in understanding the processes needed to recover raw materials essential for the energy transition. This collaboration marks an important step for us, as we seek to drive synergies with industry leaders such as Anglo American that participate in the critical raw materials value chain and share our commitment to advancing technological development to shape a more sustainable future for the transport sector.”

BHP, Anglo American, Antofagasta, Codelco, Collahuasi team up to tackle cybersecurity

IoT, Mining safety, , , , , , , , , ,

BHP, together with the mining companies Anglo American, Antofagasta Minerals, Codelco and Collahuasi, have launched the Mining Cybersecurity Corporation in an effort to tackle rising cybersecurity risks in Chile.

More than 4 billion cyber-attacks took place in Chile during the first half of 2023, positioning it as the fifth country in Latin America with the most incidents, according to BHP. The unprecedented technological progress in recent years brings important benefits, but also involves several cybersecurity risks.

Studies indicates that, by 2025, cyber attacks will cost companies approximately $10.5 billion.

Aware of the risks to the industry, these companies have come together in what BHP says is an unprecedented initiative led by Corporación Alta Ley and supported by the Chilean Ministry of Mining. The aim of the partnership is to generate and share cyber-intelligence information for early warning and response, and to promote a culture of cybersecurity in mining operations.

Ezequiel Fagetti, Cybersecurity Manager BHP Minerals Americas, said: “As BHP we are enthusiastic about this initiative and, therefore, we want to contribute with our experience in the protection of assets and systems. Cybersecurity is vital for the proper functioning of the different production systems and, ultimately, for us to continue contributing to the country. If we strengthen this aspect, we strengthen the mining industry as a whole, its value chain, and safeguard the benefits for everyone.”