Tag Archives: Anglo American

Anglo American captures BAMIN Pedra de Ferro iron ore offtake

BAMIN, the wholly-owned Brazil-based subsidiary of Eurasian Resources Group, has signed an agreement with Anglo American that guarantees the acquisition of the full export volumes of BAMIN’s Pedra de Ferro mine for 2023.

The Pedra de Ferro open-pit iron ore mine, in the city of Caetite, State of Bahia, has been in production since late 2020, supplying both domestic and export markets with direct shipping ore. In 2022, this averaged 65.5-66% Fe direct shipping ore fines. Pedra de Ferro has a current production capacity of up to 1 Mt/y.

With this latest agreement with Anglo American, the miner will exclusively purchase all of BAMIN’s export iron ore for the year of 2023.

Benedikt Sobotka, CEO of Eurasian Resources Group, said: “The signing of this contract builds on previous sales agreements between Anglo American and BAMIN for standalone exports and once again demonstrates BAMIN’s position as a high-quality supplier of iron ore. We look forward to having a successful relationship with Anglo American.”

Anglo American assembles Queensland’s first ever all-female Mines Rescue Team

Queensland’s first ever all-female Mines Rescue Team has been formed at Anglo American’s Capcoal Open Cut Mine, near Middlemount, and is set to join the state’s competitive Mines Rescue Open Cut Circuit.

Known as the Women of Steel, the team is made up of seven women who are now in training for the QMRS Mines Rescue Challenge later this year.

Team captain and Capcoal Open Cut’s Emergency Response Team Coordinator, Kiri Blanch, says she has been looking to put together an all-female team for some time.

“Our team is a dedicated group of women who really gel together, and we’re proud to be the first Anglo American and Queensland-based all-women team in the Queensland competition,” she said. “Everyone has been very supportive, especially our male counterparts. It’s a reflection of the culture at our site that continues to both support mines rescue and empower the women we work with.

“This has inspired our team to commit to the challenge, improve our health and fitness and achieve the best results possible whilst representing women in mining. We will train closely with the Capcoal Open Cut men’s team and support each other during competitions.”

CEO of Anglo American in Australia, Dan van der Westhuizen, said the team had the backing of all their colleagues across the company.

“We’re so pleased to support this outstanding group of women as they get set to make a real mark on Queensland’s mines rescue circuit,” van der Westhuizen said. “Although we still have further to go, it’s a strong example of how our industry and our operations are moving towards achieving equal representation and equality.

“At Anglo American, we have a strong history of supporting our highly competitive mines rescue teams across both our open cut and underground operations, so it’s particularly pleasing that that our Women of Steel are now Queensland’s first all-female team. Our mines rescue teams play a critical role in any incident response or rescue, and these competitions help ensure their skills are well honed, if called upon to undertake a rescue.”

Anglo American operates five steelmaking coal mines in Queensland’s Bowen Basin, and has additional joint venture interests in steel-making coal and manganese, as well as copper exploration projects underway in Queensland and Western Australia.

Anglo American increases Woodsmith polyhalite scale as shaft sinking progresses

Anglo American is upping the ante at its Woodsmith polyhalite project in the UK, increasing its planned spend while expanding its production scope following detailed design reviews and non-critical path studies.

In the company’s 2022 results release today, it said these reviews and studies had led to a number of areas being modified to align with Anglo American’s standards and its aim to optimise value for the long term.

The outcome is an enhanced project configuration to ensure the company delivers maximum commercial returns from Woodsmith over the expected multi-decade asset life, Anglo said. Included within this is an increase in the capacity of the shafts and other infrastructure to accommodate higher production volumes and more efficient and scalable mining methods over time.

More specifically, this has seen the company plan for a circa-13 Mt/y operation instead of the previous 10 Mt/y operation it had endorsed, subject to studies and approval.

“In light of these changes, Anglo now expects first product to market in 2027, with an annual capital investment of around $1 billion,” the company said.

Spending of $800 million is approved for 2023, with the bulk of initial spend on the shaft sinking and tunnel boring activities. As usual in developing underground mines, the schedule will largely be determined by the ground conditions encountered as sinking activities progress.

The Woodsmith project is located on the North Yorkshire coast, just south of Whitby, where polyhalite ore will be extracted via 1.6-km-deep mine shafts and transported to Teesside via an underground conveyor belt in a 37 km tunnel, thereby minimising any environmental impact on the surface. It will then be granulated at a materials handling facility to produce a low carbon fertiliser – known as POLY4 – that will then be exported from its port facility, where it has priority access, to a network of customers around the world.

During 2022, as part of the mentioned construction review, contracts were awarded for the shaft sinking operations, program management services and construction management to ensure the project can be executed in line with Anglo American’s stringent requirements. These contracts were awarded to Redpath (shaft sinking) and Worley (program management services and construction management).

With the award of these contracts and other infrastructure improvements, activities at the deep shafts have progressed. The service shaft is now more than 360 m deep, while shaft sinking began 120 m below the surface for the production shaft in January 2023, as planned. Both of these shafts are being sunk using Herrenknecht’s Shaft Boring Roadheader technology.

Three intermediate shafts will provide both ventilation and additional access to the mineral transport system (MTS) tunnel. The Lockwood Beck intermediate access shaft was successfully completed in 2022 and is fully lined and connected to the tunnel. Work on the MTS shaft at the mine head progressed through 2022 and is 85% complete, and the excavation at the final intermediate access shaft at the Ladycross site commenced in early 2023.

Following a planned maintenance pause in mid-2022 to refurbish the tunnel boring machine and allow the connection with the Lockwood Beck shaft, the MTS tunnel is now past the 21-km point and is more than 56% complete, progressing at rates not seen since the start of the tunnelling activities, Anglo said.

Anglo American concluded: “We believe that the changes we have made to the project have had a materially positive impact on the project’s long-term attractiveness and prospects. However, for accounting purposes at this early stage of the project’s development, we have recognised an impairment of $1.7 billion to the carrying value of the asset within special items and remeasurements, reflecting the extension of the development schedule and capital budget.”

FLANDERS completes ARDVARC conversion of fourth Sandvik DR410i for Anglo’s Mogalakwena

A fourth Sandvik DR410i rotary blasthole drill set for Anglo American Platinum’s Mogalakwena mine, in South Africa, has now been converted to an ARDVARC drill control system at FLANDERS’ Middelburg facility, in South Africa, ready to be shipped to the mine for commissioning, FLANDERS says.

The ARDVARC solution improves drill productivity by up to 30%, FLANDERS claims, and provides a significantly safer working environment for workers operating in complex or hazardous conditions. With its autonomous operating technology, FLANDERS helps its customers proactively optimise drilling and increase plant availability, it added.

Anglo’s Mogalakwena mine is, according to FLANDERS, the first to standardise its drill fleet, and is about to receive its fourth Sandvik 410i drill.

The FLANDERS team is working with Anglo to plan the conversion of its existing fleet, with the ongoing partnership helping accelerate Anglo’s adoption of drilling automation technologies.

FLANDERS previously signed a deal with Anglo to incorporate ARDVARC on all new and existing drills at the Mogalakwena mine, including the recently purchased Sandvik DR410i blasthole drills.

Anglo American loads first LNG dual-fuelled vessel in chartered fleet with Kumba iron ore

Anglo American says its newly launched LNG dual-fuelled Capesize+ vessel, the Ubuntu Harmony, has loaded its first cargo of iron ore from its Kumba iron ore operations in South Africa.

The vessel is the first of 10 LNG dual-fuelled new-build ships that Anglo American will introduce to its chartered fleet during the course of 2023 and 2024, delivering an estimated 35% reduction in CO2 emissions compared with ships fuelled by conventional marine oil fuel, the company said. The use of LNG will also lead to a significant reduction of nitrogen oxides and particulate matter from vessel exhausts, while new technology also eliminates the release of unburnt methane.

The Ubuntu fleet is a key component of Anglo American’s ambition to achieve carbon neutrality for its controlled ocean freight by 2040 – with an interim target to reduce emissions from these activities by 30% by 2030 – all part of Anglo American’s wider ambition to halve Scope 3 emissions by 2040.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “We are proud to see the Ubuntu Harmony begin its voyage transporting future-enabling products from our mines to our customers around the world. This milestone cements our vision to be a leader in low carbon shipping, a natural extension of our commitment to achieve carbon neutrality across our operations by 2040.”

Nolitha Fakude, Group Director of Anglo American for South Africa, said: “The metals and minerals we provide play an important role in helping key industries decarbonise. Transporting them in a sustainable way is a key part of this effort and the introduction of the Ubuntu fleet – named after the Zulu word meaning ‘humanity to others’ – helps us accelerate our transition to sustainable ocean freight.”

Anglo American has established a framework of initiatives for the decarbonisation of its maritime activities, including energy-saving devices fitted to existing vessels, the use of voyage optimisation software, and a focus on exploring, trialling and adopting alternative, sustainable fuel options – such as LNG, sustainable biofuel, green methanol and ammonia, and – further down the line – hydrogen.

Anglo American joins K2fly’s resource governance and disclosure club

K2fly Limited says it will roll out its Resource Disclosure mineral resource governance solution across all Anglo American commodities and operating regions as part of a three-year agreement set to generate a total contract value of A$1.44 million ($974,779).

K2fly Resource Disclosure, a mineral inventory data and reporting solution, is an off-the-shelf cloud-based platform that allows companies to accurately adhere to mine-to-mill reporting
requirements for all stock exchanges, according to K2fly.

The solution enables clients to capture the raw resource and reserve data and report to multiple stock exchanges (including the ASX, NYSE, LSX, TSX and JSE) and reporting codes (JORC, NI-43 101, SK-1300, SAMREC, etc) to remain compliant, according to the ASX-listed company.

Nic Pollock, CEO of K2fly, said: “This is our first major contract with Anglo American. We are pleased to collaborate with Anglo American to deliver our next generation cloud-first resource governance platform.

“Anglo American join a distinguished group of 18 global clients, including Rio Tinto, Newmont and South32, that have moved to the world’s only commercial off-the-shelf solution for mineral resource governance and disclosure.”

Anglo American continues SBR-led shaft sinking progress at Woodsmith

While Anglo American continues with its detailed technical review of the Woodsmith polyhalite project in the UK, shaft sinking activities at the asset continue to progress, the company confirmed in an investor update today.

The project was acquired by Anglo American in 2020 with the purchase of Sirius Minerals. Since then, Anglo American has been working on refining the development pathway and overall production potential of the asset.

In an investor presentation today, the company outlined physical progress on the site, explaining that shaft sinking for the circa-1.6-km deep service shaft had progressed to the circa-265-m level. It also said the mineral transport shaft, which it is working on with Redpath Group as sinking contractor, had reached the circa-230-m level of a planned 321-m depth.

Regarding horizontal development, it added that the 37-km mineral transport tunnel – which will connect to the mineral transport shaft – had reached the 20-km development mark with tunnel boring machine technology.

The Woodsmith project overview includes the sinking of production and service shafts with 6.75-m diameters – having depths of 1,594 m and 1,565 m, respectively – and the 37-km-long concrete-lined tunnel containing a conveyor belt, which transports the polyhalite ore from Woodsmith mine, near Whitby, to the Mineral Handling Facility, on Teesside, for processing and shipping.

Both the service shaft and production shaft at Woodsmith are being sunk using Herrenknecht’s Shaft Boring Roadheader technology, which has previously featured on the Jansen potash project in Saskatchewan, Canada, where it excavated two 8-11 m diameter blind shafts down to circa-1,000-m-depth and the Slavkaliy-owned Nezhinsky potash project, where it ended up breaking shaft sinking records under the guidance of contractor Redpath Deilmann on a project to sink two 8-m diameter shafts (one to 750-m depth and one to 697-m depth).

The first cut for the service shaft was made in July 2021, with Anglo American and Redpath Deilmann – which is now leading the sinking project as shaft sinking contractor – restarting sinking activities on this shaft earlier this year.

In the same investor presentation issued today, Anglo American said it planned to start sinking in the production shaft in the March quarter of 2023.

While the ongoing review takes place, Anglo American confirmed it had approved $800 million of capital expenditure for Woodsmith next year, focused on shaft sinking and other critical infrastructure as part of its phased approach to the asset.

Stephen Pearce, Finance Director of Anglo American, said on Woodsmith: “As we have said for some time, we are improving the project’s configuration to ensure we realise the full commercial value over the expected multi-decade asset life. This will extend the development schedule and the capital budget, compared to what was anticipated prior to our ownership, and so potentially impact our carrying value of Woodsmith for accounting purposes at the year end.

“Looking ahead, we are even more positive today about the prospects for Woodsmith and its potential to become a high margin, major contributor to our diversified product portfolio given the outstanding nature of the resource and the premium pricing upside we expect to realise for Poly4 – the highly effective, low carbon fertiliser we will produce.”

Anglo American invests $200 million into new nuGen-focused First Mode vehicle

Anglo American’s ambitious plans to roll-out its nuGen™ Zero Emissions Haulage Solution (ZEHS) have been given a boost with the announcement that it has signed a binding agreement with First Mode Holding to combine to the two entities.

Such a deal was mooted back in June when Anglo American confirmed it was in exclusive negotiations with First Mode – and had agreed non-binding terms – to combine the nuGen ZEHS with the specialist engineering technology company.

The two companies’ collaborative efforts led to the launch of the prototype nuGen ZEHS hydrogen-powered mine haul truck at Anglo American’s Mogalakwena PGMs mine in South Africa on May 6, 2022. This month the truck reached a significant milestone when it completed initial commissioning and was introduced into the mine’s commercial fleet operations, including pit and crusher activities, according to First Mode.

The latest agreement will see the mining company invest $200 million into a combined business to help fund the ongoing development of ZEHS which, upon completion of the transaction, values the business in the order of $1.5 billion and results in Anglo American owning a majority shareholding in First Mode.

Upon closing of the transaction, expected in January 2023, Anglo American will enter into a supply agreement with First Mode to decarbonise its global fleet of ultra-class mine haul trucks, of which approximately 400 are currently in operation, in support of Anglo American achieving its 2040 target for carbon-neutral operations.

The roll-out across Anglo American’s haul truck fleet over the next circa-15 years is subject to the completion of agreed and committed studies across seven mine sites, certain performance and cost criteria, and relevant regulatory, corporate and shareholder approvals, the mining company said. The supply agreement also includes the appropriate provision of critical supporting infrastructure such as refuelling, recharging and facilitation of hydrogen production.

Anglo American says it also recognises its role in supporting broader decarbonisation objectives outside its own business and that the technologies and capabilities it develops as part of the nuGen project present opportunities in other industries that rely on heavy duty forms of transport, such as rail.

In addition to accelerating the development and commercialisation of the ZEHS technology, the new combined business will allow strategic third parties to co-invest alongside Anglo American and First Mode, offering the opportunity to accelerate their own decarbonisation and participate in the potential offered by the clean ZEHS technology, the company added.

“The new combined business retains the First Mode name and will prioritise developing nuGen ZEHS, building on three years of extensive development by Anglo American and First Mode,” the company concluded.

In a separate press release from First Mode, it mentioned that current First Mode President and CEO, Chris Voorhees, will transition to the role of Chief Product & Technology Officer, overseeing the company’s global product and technology development out of Seattle. Julian Soles, Anglo American’s head of Technology Development, will take over as First Mode CEO and be based in First Mode’s new headquarters in London.

Voorhees said: “First Mode was founded in 2018 with the goal of building the barely possible. We have done just that and our mission is now to rapidly decarbonize heavy industry by dramatically reducing our customers’ greenhouse gas emissions. I can’t imagine a team better suited to this urgent challenge.”

Soles added: “The First Mode mission is much bigger than a single haul truck. Mining is how the world obtains the materials needed for the clean energy transition, and it is where the carbon footprint starts. This is where the First Mode solution begins; starting at the source, in mining, to replace diesel and accelerate the clean energy transition.”

Anglo American and Aurubis to develop sustainable ‘future-enabling’ copper metals plan

Anglo American says it has signed a memorandum of understanding with Aurubis AG, a provider of non-ferrous metals and one of the world’s largest copper recyclers, to develop a copper product offering that responds to increasing expectations for future-enabling metals that are sustainably sourced and supplied.

The objective of the collaboration is to provide assurance around the way copper is mined, processed, transported and brought to market, according to Anglo American.

Applying their combined expertise, Anglo American and Aurubis will also explore the opportunity for technology-driven traceability solutions to bring greater transparency to the entire production cycle, as well as areas of common interest in technology development, the partners said.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Copper plays such a pivotal role in addressing the challenges of climate change and raising living standards for the world’s growing population. Rightly, it needs to be produced sustainably and as part of a customer- centric supply chain.

“Together with Aurubis, and in line with our Sustainable Mining Plan goal to establish ethical value chains, we are engaging with industry participants to optimise the value that responsible supply can provide. The value chain starts from our portfolio of high-quality and long-life resource assets, now including our new world-class Quellaveco mine in Peru, and we are now working to establish a more comprehensive and integrated approach along the entirety of what is a fragmented mine-to-customer journey.”

Roland Harings, CEO of Aurubis, said: “This collaboration with Anglo American is yet another example of how we intend to develop and enhance the transparency of the entire supply chain. Anglo American’s Sustainable Mining Plan aligns with the pillars of the Aurubis sustainability label “Tomorrow Metals”, launched in 2021 which promises to our business partners to stay best in class in all sustainability challenges of today and the future by using our metals.”

Anglo American and Aurubis have also committed to be assessed against the Copper Mark Chain of Custody Standard.

Anglo American’s managed copper operations in Chile – the Los Bronces and El Soldado mining operations and the Chagres smelter – were awarded the Copper Mark, the assurance standard for responsible production practices, in March 2022.

Anglo American to fill almost half of Los Bronces mine water requirements with desalinated resource

Anglo American, following the signing of an agreement with Aguas Pacífico, a Chile-based water desalination and solutions provider, says it has secured desalinated water supply for its Los Bronces copper mine in Chile from 2025.

This pact will meet almost half of the mine’s water requirements, Anglo American says.

In this first phase, Anglo American will be supplied with desalinated water from a plant that is being built in the Valparaiso region by Aguas Pacífico. The water will be transported via pipeline
to the Las Tortolas plant from where it will be pumped up to the Los Bronces mine. Anglo American will also provide desalinated water to supply the nearby communities of Colina and Til
Til, benefiting approximately 20,000 people.

Ruben Fernandes, CEO of Anglo American’s Base Metals business, said: “Anglo American has set an ambition of reducing fresh water abstraction in water scarce regions by 50% by 2030. This agreement – which is the first phase of a larger and longer term integrated water project to eliminate our use of fresh water at our Los Bronces operation – is an important step towards
achieving that goal.

“The Central zone of Chile, where Los Bronces is located, has been impacted by a decade-long severe drought and this desalinated water will supply more than 45% of Los Bronces’ needs while also providing clean water to approximately 20,000 people in communities local to the operation.”

Anik Michaud, Group Director of Corporate Relations and Sustainable Impact at Anglo American, said: “Beyond this first phase, we are also planning an innovative swap scheme to provide desalinated water for human consumption in exchange for treated wastewater that will supply our operation. This would allow us to stop drawing any fresh water for Los Bronces – our ultimate goal.

“This innovative approach not only secures industrial water supply for our Los Bronces operation to sustain copper production, but also benefits local communities with the provision of clean water.”