Tag Archives: Anglo American

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

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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

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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

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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

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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

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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

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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.”

Worley receives PM & EPCM work at Anglo American’s Woodsmith mine

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Engineering firm Worley has been awarded a contract for program management services and engineering, procurement and construction management (EPCM) to support Anglo American’s Woodsmith project in the UK, the mining company has confirmed.

Worley, in tandem with other contractors, is being tasked with delivering a polyhalite mine for its client Anglo American.

The project 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 a 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.

In Anglo American’s half-year results, released earlier this year, the company outlined that major critical path components had continued to progress to its updated plan at Woodsmith.

“[Our] ongoing technical review confirmed there are several improvements to modify design to bring it up to Anglo American’s safety and operating integrity standards and optimise value for the long term,” it said.

The company acquired Woodsmith when it took over Sirius Minerals in 2020.

Anglo American to remove steelmaking coal business Scope 2 emissions with Stanwell Corp pact

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Anglo American says it has sourced the supply of 100% renewable electricity for its operations in Australia from 2025, agreeing terms for a 10-year partnership with Stanwell Corporation, the
Queensland Government-owned provider of electricity and energy solutions.

The deal will effectively remove all Scope 2 emissions from Anglo American’s steelmaking coal business in Australia from 2025, supporting Anglo American’s progress towards carbon-neutral operations by 2040, it said.

Dan van der Westhuizen, CEO of Anglo American in Australia, said: “Sourcing 100% renewables supply from Stanwell Corporation, linked to two major wind and solar projects in Queensland, is
a big step towards our target of carbon-neutral operations in Australia – and globally – by 2040. We are committed to playing our part to help combat climate change, including accelerating a number of technologies to abate our on-site emissions, from electrifying our truck fleet and other mobile equipment to capturing the methane from our steelmaking coal seams.

“I am delighted that we are able to support Stanwell Corporation in its investment in 650 MW of renewables capacity for Queensland. Today’s deal brings significant environmental benefits
and is net present value-positive compared with our current energy mix, while underwriting a large investment in renewable energy generation for Queensland.”

Anik Michaud, Anglo American’s Group Director of Corporate Relations and Sustainable Impact, said: “Combined with the agreements we already have in place for all our South America operations, from 2025 we expect to be drawing 60% of our global electricity requirements from renewable sources, transforming our Scope 2 emissions profile. We are committed to producing the metals and minerals that we need to mitigate the extent of global warming in the most responsible and sustainable way.”

The partnership between Anglo American and Stanwell underwrites investment in the two major Queensland renewable energy projects – Clarke Creek Wind Farm in Central Queensland and
Blue Grass Solar Farm near Chinchilla, Anglo American says.

Anglo American, EDF Renewables establish regional renewable energy ecosystem in South Africa

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Anglo American has joined forces with EDF Renewables to establish a new jointly owned company, Envusa Energy, aimed at developing a regional renewable energy ecosystem (RREE) in South Africa.

In March 2022, the two companies signed a Memorandum of Understanding to explore the ecosystem’s development, designed to meet Anglo American’s operational power requirements in South Africa and support the resilience of the local electricity supply systems and the wider
decarbonisation of energy in the country. The RREE is also expected to catalyse economic activity in South Africa’s renewable energy sector, supporting the country’s broader just energy transition.

As part of the agreement, Envusa Energy is launching a mature pipeline of more than 600 MW of wind and solar projects in South Africa – a major first step towards the development of an ecosystem that is expected to generate 3-5 GW of renewable energy by 2030, Anglo American says. This first phase of Envusa Energy’s renewables projects is expected to be fully funded – including by attracting debt financing that is typical for high quality energy infrastructure projects – and ready for construction to begin in 2023.

Envusa Energy is expected to supply Anglo American with a blend of renewable energy generated on Anglo American’s sites and renewable energy transmitted via the national grid. This energy portfolio approach will aggregate energy from geographically-dispersed renewable generating assets and allocate this energy optimally to meet the load demand for Anglo American’s sites, the company explained.

Nolitha Fakude, Chair of Anglo American’s Management Board in South Africa, said: “I’m delighted to confirm our ground-breaking partnership with EDF Renewables to form Envusa Energy. This is a significant milestone in Anglo American’s global decarbonisation journey and another step forwards for South Africa’s clean energy future. We are making great strides towards our 2040 target of carbon-neutral operations, while contributing to South Africa’s just energy transition through our responsible approach.

“We believe that the energy transition presents a fresh opportunity for South Africa and the rest of the region to build a clean and inclusive energy ecosystem that can create significant new economic opportunities. I am very encouraged by our progress – affirming Anglo American’s commitment to South Africa’s next phase of development towards a low-carbon future.”

Tristan de Drouas, CEO at EDF Renewables in South Africa, said: “We are very pleased to be part of this very innovative venture and look forward to bringing our global expertise in renewable energy infrastructure development, design and delivery to Envusa Energy. This partnership with Anglo American confirms our long-term perspectives in the country: this 600 MW first tranche of projects will be added to the almost 1 GW that EDF Renewables will be building or operating in the country by 2023 – including 420 MW of wind projects in REIPPP Bid Window 5, whose PPAs were signed with Eskom and the DMRE on September 22, 2022.

“Together, these projects further EDF Group’s CAP 2030 strategy, which aims to double our net renewable installed energy capacity worldwide (hydropower included) from 28 GW in 2015 to 60 GW by 2030.”

The roll-out of the RREE will also serve as a clean energy source for the production of green hydrogen for Anglo American’s nuGen™ Zero Emission Haulage Solution (ZEHS) – a planned fleet of hydrogen-powered ultra-class mine haul trucks (the original prototype pictured at Mogalakwena above) – significantly reducing on-site diesel emissions towards a carbon neutral future while also supporting the development of South Africa’s Hydrogen Valley, Anglo American said.

Through the formation of Envusa Energy, Anglo American and EDF Renewables are committed to supporting South Africa’s economic transformation and empowerment goals. The process to identify an appropriate Black Economic Empowerment (BEE) partner for Envusa Energy is expected to begin in the fourth quarter of 2022.

Furthermore, and in line with both companies’ commitment to a just energy transition, Envusa Energy is exploring a range of community partnership models that will enable host communities to share in the benefits created by the development of the RREE, along its value chain, Anglo American said.

Anglo American kicks off commercial ops at Quellaveco copper mine

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Anglo American has announced the start of commercial copper operations at its Quellaveco project in Peru, following the successful testing of operations and final regulatory clearance.

Quellaveco is expected to produce 300,000 t/y of copper-equivalent volume on average over its first ten years.

The milestone follows unloading of first ore to the primary crusher in June and the production of first copper in July.

Duncan Wanblad, Chief Executive of Anglo American, said: “Our delivery of Quellaveco, a major new world-class copper mine, is testament to the incredible efforts of our workforce and our commitment to our stakeholders in Peru over many years. Quellaveco, alone, is expected to lift our total global output by 10% in copper-equivalent terms and take our total copper production close to 1 Mt/y. At a highly competitive operating cost, Quellaveco exemplifies the asset and return profile that is central to our portfolio quality and our ability to provide customers with a reliable and sustainable supply of future-enabling metals.”

Ruben Fernandes, CEO of Anglo American’s Base Metals business, added: “We designed Quellaveco as one of Anglo American’s and South America’s most technologically advanced mines, incorporating autonomous drilling and haulage fleets – a first in Peru – a remote operations centre, as well as a number of Anglo American’s digital and advanced processing technologies. Drawing its electricity supply entirely from renewables, Quellaveco is setting an example of a low emission mine producing a critical metal for decarbonising the global economy – copper. In Quellaveco, we can see FutureSmart Mining™ in action.”

Anglo American expects that Quellaveco will ramp up fully over the next 9-12 months. Following a thorough commissioning and testing period, and receipt of final regulatory clearance, production guidance for Quellaveco in 2022 is revised to 80,000-100,000 t of copper (previously 100,000-150,000 t) at a C1 unit cost of $1.50/lb, previously $1.35/Ib. Production guidance for Quellaveco in 2023 and 2024 is unchanged at 320,000-370,000 t of copper.