Tag Archives: Canada

Elkview

Teck to exit steelmaking coal business with Glencore, Nippon Steel deals

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

Teck Resources has agreed to sell its entire interest in its steelmaking coal business, Elk Valley Resources (EVR), through a sale of a majority stake to Glencore for an implied enterprise value of $9.0 billion, and a sale of a minority stake to Nippon Steel Corporation (NSC).

The sale of Teck’s steelmaking coal business at the implied enterprise value of $9 billion on a 100% basis achieves a simple and complete separation of steelmaking coal from base metals.

Glencore has agreed to acquire 77% of EVR for $6.9 billion in cash, payable to Teck at closing of the Glencore transaction, subject to customary closing adjustments.

NSC has agreed to acquire a 20% interest in EVR in exchange for its current 2.5% interest in Elkview Operations plus $1.3 billion in cash payable to Teck at closing of the NSC transaction and $400 million paid out of cash flows from EVR. NSC will also enter into a long-term steelmaking coal offtake rights arrangement at market terms, continuing NSC’s long-standing commercial arrangement for the purchase of steelmaking coal from the Elk Valley.

POSCO has advised Teck it intends to exchange its current 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture, for a 3% interest in EVR. At closing of the Glencore transaction, Glencore will acquire from Teck any remaining receivable payable to Teck by EVR.

Teck will continue to operate the steelmaking coal business and will retain all cash flows from EVR until closing of the Glencore transaction, estimated to be $1 billion. Following the closing of that transaction, Teck will have no further financial interest in EVR.

Key historical information on EVR, as reported by Teck, is outlined below:

  • Production of steelmaking coal of 21.5 Mt in 2022 and 17.3 Mt year to date to September 30, 2023;
  • EBITDA of C$7.4 billion ($5.4 billion) in 2022 and C$3.7 billion year to date to September 30, 2023;
  • Profit before tax of C$6 billion in 2022 and C$3.1 billion year to date to September 30, 2023; and
  • Gross assets as at September 30, 2023 of C$18.5 billion.

Jonathan Price, President and CEO, Teck, said: “This transaction will be a catalyst to re-focus Teck as a Canadian-based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company. This sale will ensure Teck is well-capitalised and able to realise value from our base metals business and deliver strong returns to our shareholders while maintaining a robust balance sheet. Glencore has made strong commitments that will create new benefits for Canada and the Elk Valley and ensure responsible stewardship of the steelmaking coal operations for the long term.”

Gary Nagle, CEO of Glencore, said: “We are pleased to have reached agreement to acquire Teck’s steelmaking coal operations in the Elk Valley. These world-class assets and the experienced people that operate them are expected to meaningfully complement our existing thermal and steelmaking coal production located in Australia, Colombia and South Africa. Glencore has high regard for the business that has been developed over many decades in British Columbia and looks forward to maintaining and enhancing its operational performance, environmental stewardship and social contribution.

“We are dedicated to working with all governing bodies and stakeholders to ensure that the transaction is of benefit to Canada, which includes a commitment from Glencore regarding employment, engaging in further reclamation efforts and to engage constructively and meaningfully with the Indigenous Nations in the Elk Valley. This transaction also deepens our longstanding commitment to Canada, supporting our position as one of the largest diversified miners and suppliers of critical minerals in Canada, in one of the world’s leading mining jurisdictions.”

Closing of the Glencore transaction is subject to customary conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions, and is expected to occur in the third quarter of 2024. The NSC transaction is also subject to customary conditions, including receipt of certain competition approvals, and is expected to close in the first quarter of 2024. These transactions are not inter-conditional.

Metso to deliver two Vertimill 4500 grinding mills to Canadian iron ore producer

Comminution of minerals, Mineral processing, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , ,

A Canadian iron ore producer has awarded Metso an order for two powerful Vertimill® 4500 grinding mills to be delivered in the September quarter of 2024. The value of the order, which exceeds €10 million ($10.6 million), has been booked in Minerals segment’s 2023 September-quarter orders received.

Graham Davey, Director, Stirred Mills at Metso, said: “We are very pleased to collaborate on projects that support decarbonisation of the steel industry through production of high-grade and high-purity iron ore with sustainable processes. The Vertimill stirred grinding mill technology is globally recognised as a leading solution for energy-efficient grinding. Compared to traditional technology, operators can typically save up to 30-35% of the electrical energy and grinding media consumption. A small footprint and easy installation are also big advantages.”

Vertimill technology is an example of Metso’s Planet Positive offering. It is capable of handling feed sizes of up to 6 mm and grinding to product sizes of 30 microns or less. Vertimills are available in standard mill sizes ranging from 11 kW to 3,352 kW.

Since the introduction of the technology in the 1990s, Metso says it has sold over 540 Vertimill units to nearly all types of minerals.

Metso says it is the only manufacturer worldwide that can offer several stirred mill technologies (Vertimill, HIGmill™ and SMD), enabling it to support customers with the most suitable and efficient mill for their application.

DavidRea-Tucson-ElectricMine2023

Cat R1700 XE battery-electric LHD completes the test at Glencore Nickel Rim South

Automation, Base metals, Environmental, Mining equipment, Mining events, Power supply for mines, Sustainable mining, , , , , , , , , , , , , , , , ,

The first field follow trial of Caterpillar’s R1700 XE battery-electric loader has been deemed a success by one Glencore trial participant, with the machine anticipated to surpass the productivity performance of the equivalent diesel LHD running at Glencore’s Nickel Rim South mine, in Sudbury, Canada.

Speaking in a video, Paul Kant, Glencore’s Maintenance General Foreman at the mine, said the battery-electric loader was likely to outperform the diesel-powered Cat® R1700G it was being benchmarked against at the operation over the trial period.

The mine has been using the machine, a 15-t payload loader, as part of ongoing plans to incorporate new technology at its Sudbury Integrated Nickel Operations. This includes the development of an all-electric equipment fleet at the Onaping Depth project.

The Sudbury Integrated Nickel Operations have played a significant role in the development of the R1700 XE, hosting a proof-of-concept trial of a battery-electric R1300 LHD at one of the mines where the machine ran in trials alongside its diesel equivalent. Caterpillar used the insight gained from this testing to develop the commercial R1700 XE.

The R1700 XE is rated with a 24,190 kg lift and tilt breakout, and, according to Caterpillar, features a battery-electric design that delivers superior productivity in underground applications with the benefits of minimal heat and no engine exhaust emissions. It offers an 18 km/h top speed.

It is designed to work with the Cat MEC500 Mobile Equipment Charger, a 1,656 kg (2,037 kg with optional skid) portable charger that, Caterpillar says, eliminates the need for regular battery handling and swapping, allowing for more efficient charging and production. The MEC500 offers a 500 kW capability at a range of 300-1,000 V and up to 700 Amps. The adjustable output can be used to trickle charge or quickly charge the R1700 XE – with a single unit delivering a full charge to the R1700 XE in less than 30 minutes or two units in parallel achieving this in less than 20 minutes.

The R1700 XE in Sudbury, working alongside either one or two MEC500s, has clocked more than 11,000 machine hours. During initial test operations, the customer indicated a circa-320,000 kg reduction of CO2 emissions and displayed a more than 10% improvement in speed on grade.

According to Glencore, the R1700 XEs Caterpillar has put out in the field to date have also exhibited lower energy consumption compared with the diesel equivalent – more than 10%, in fact

Speaking at The Electric Mine 2023 conference in Tucson, Arizona, in May, David Rea, VP and General Manager, Caterpillar Inc (pictured at the top), said of the machine: “We’re delivering for our customers improvements in safety, cost, productivity and sustainability.”

Machine availability in these field-follow trials has been helped by an up to 150-minute run time between charges and an average 18.5-minute charge rate with the dual chargers.

According to Glencore, the machines Caterpillar has put out in the field to date have also exhibited lower energy consumption compared with the diesel equivalent – more than 10%, in fact. And, while trials to date have all been in manual mode, Rea said the R1700 XE units in the field could be equipped for teleremote operation and were also “factory ready” for Caterpillar’s fully autonomous loading system.

Operations are being facilitated thanks to some “800 channels of machine data” flowing off the machines to those supporting the loaders, Rea said. This has allowed personnel from Caterpillar and Cat dealers to diagnose problems in the field and optimise the machine’s charging and operating strategies.

While Caterpillar continues to clock up the operating machine hours for its R1700 XE, it is also in the process of developing its first battery-electric truck.

“We’re not just stopping at the loader; we also need a truck to go alongside that loader,” Rea said in Tucson, adding that this would be a three-pass match for the R1700 XE – therefore, a truck boasting at least a 45-t payload.

Rea confirmed the new truck would be charged by the MEC500s, but the company was working on both a fast charge and battery swap option for the vehicle.

“Our alliance with Newmont is leading the development of this truck,” Rea said, referencing a strategic alliance Caterpillar and Newmont announced in 2021 to deliver “26 first-of-a-kind battery-electric autonomous vehicles in both an underground and open pit operation by 2027”.

This agreement involves the introduction of these vehicles to Cripple Creek and Victor (open pit) and Tanami (underground) in USA and Australia, respectively.

“The first deployment of this [battery-electric] truck will be at Newmont Tanami,” Rea confirmed at the event.

Wajax bolsters Industrial Parts and Engineered Repair Services divisions with Beta acquisitions

Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , , , ,

Wajax Corporation says it has acquired all of the issued and outstanding shares of Ontario-based Beta Fluid Power Ltd and Beta Industrial Ltd, further expanding its Industrial Parts and Engineered Repair Services offering.

Beta Fluid is a leading regional supplier of hydraulic and pneumatic equipment for use in the industrial, mining and construction sectors. It also offers hydraulic and pneumatic maintenance, repair and replacement services, including mobile services. Beta Industrial provides a wide range of on-site facility repair and maintenance services to local and regional customers. Together Beta Fluid and Beta Industrial employ a team of approximately forty-two full-time employees.

“Since 1997, the Beta team has developed a reputation for dependability and excellent customer service, and we are very pleased to welcome them to the growing Wajax family,” Iggy Domagalski, President and Chief Executive Officer of Wajax, said. “Through acquisitions such as Beta, and our recently completed Polyphase Engineered Controls acquisition in Alberta, we continue to execute our Industrial Parts and Engineered Repair Services growth strategy, adding sought-after technical capabilities and expanding the services we offer to customers across the country. We look forward to further additions to our Industrial Parts and Engineered Repair Services portfolio as we continue to develop our acquisition pipeline.”

Wajax is one of Canada’s longest standing and most diversified industrial products and services providers, operating an integrated distribution system that provides sales, parts and services to a broad range of Canadian customers in sectors such as mining.

Autonomous equipment commissioning ramps up at Côté gold project

Automation, Mineral project development, Mining equipment, Mining project news, Mining safety, Mining services, Precious metals, , , , , , , , , , , , , , ,

IAMGOLD has released its latest quarterly results, highlighting the significant progress it has made on its majority-owned Côté gold project in northeastern Ontario, Canada.

The company is the majority owner and operator of Côté, with the next biggest stake owned by Sumitomo Metal Mining. Côté has a mine life of 18 years, and will produce an average of 365,000 oz/y over this term. Some 236 Mt of ore will be mined, along with 568 Mt of waste, with an average processed grade of 0.96 g/t Au.

In the latest results, IAMGOLD said the project was estimated to be 85.7% complete as of the end of June. Since commencement of construction, $2.23 billion ($1.56 billion at the 70% held by IAMGOLD) of the planned $2.965 billion ($2.08 billion at 70%) of project expenditure has been incurred.

Autonomous operations have been incorporated into the Côté mine design with a focus on early operations readiness. The Autonomous Control Room equipped for Caterpillar Command for hauling was completed in mid-September and the project achieved a major milestone in January with the initial deployment of the autonomous 231 t Cat 793F CMD haul trucks working with Toromont Cat. On January 22, the mine saw the safe operation of a full load, haul, and dump cycle using autonomous dump trucks.

During the June quarter 2023, up to seven Cat 793F haul trucks have begun operating in autonomous mode and a total of 14 haul trucks have been commissioned. Autonomous drilling with two Epiroc Pit Vipers began in this quarter, with a third nearing commissioning completion. In total, the company is expected to operate six autonomous Epiroc Pit Viper 231 blasthole drill rigs, complemented by two Epiroc D65 SmartROC crawler rigs, which will be remote operation ready.

In addition it will deploy electric Caterpillar hydraulic shovels – namely two 6060FS units, AC-powered via tethered cable.

The company said owner mining has progressed well with nearly 1.1 Mt mined in the June quarter. The stockpile has approximately 2 Mt of material on track to the target build-up of 5 Mt by the end of the year. The IAMGOLD mine operations team started operating 24/7 effectively in July.

The project timeline remains in place, with production expected to commence in early 2024.

Vale hits ICMM’s GISTM target for tailings storage facilities

Base metals, Environmental, Mining policy, Steel and iron ore, Sustainable mining, Water management, , , , , , , ,

Vale says it has implemented the Global Industry Standard for Tailings Management (GISTM) in 48 of its 50 tailings storage facilities (TSFs), with plans to bring the two remaining TSFs into conformance by August 2025.

The GISTM was developed after the tragic failure of a tailings facility at Brumadinho, Brazil, in 2019, through an independent process convened by ICMM, the United Nations Environment Programme and Principles for Responsible Investment.

The standard sets a high bar and contains 77 requirements integrating social, environmental, local economic and technical considerations which strive to achieve the goal of zero harm to people and the environment, according to ICMM.

Vale says of the 48 TSFs now in conformance with the GISTM, 35 are in the Iron Solutions business unit in Brazil and 13 in the Energy Transition Metals business unit (11 in Canada and 2 in Brazil).

“The two remaining Iron Solutions TSFs in Brazil have a lower consequence classification and will be in conformance with the standard by August 2025, following the criteria of the Conformance Protocols defined by ICMM,” Vale said.

The 48 TSFs in conformance meet the GISTM requirements, and some of them have action plans in place according to the Conformance Protocols, according to the company. In addition to meeting the 77 standard requirements, a TSF in conformance with the GISTM means that the oversight, monitoring and transparency of information have been and will continue to be improved, according to Vale. The focus is on the safety of people and the environment throughout the entire TSFs life cycle.

When the GISTM was published in August 2020, ICMM members committed to conform with the standard for tailings facilities classified as ‘extreme’ or ‘very high’ consequences by August 2023, and all other facilities by August 2025. Members are due to publish their progress towards conformance with the GISTM by August 5, 2023, for tailings facilities with the highest potential consequences in the event of a failure.

The ICMM said earlier this week that it anticipated some companies will not achieve full conformance with the standard’s requirements.

Implementing GISTM for Vale’s TSFs represents only one part of the company’s efforts to become safer and more sustainable, the miner says. Vale has been improving the management of its mining dams by conducting an in-depth technical analysis of the historical, current condition and performance of each structure. The preventive, corrective and monitoring actions have also been intensified, being increasingly integrated with social movements and updated according to legislation.

Vale also continues to progress de-characterisating its upstream tailings dam structures in Brazil. As of 2019, out of the 30 dams of this kind included in the program, 12 have already been de-characterised, representing 40% of the total. The program is expected to be completed in 2035. The de-characterisation of upstream facilities in Brazil is Vale’s commitment, in addition to being part of the current Brazilian federal and state legislation on dam safety.

Avalon Advanced Materials and Metso sign MoU on lithium hydroxide production plan

Energy minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, Sustainable mining, , , , , , , , , , ,

Avalon Advanced Materials Inc has signed a memorandum of understanding to create a strategic partnership with Metso aimed at establishing terms to develop a lithium hydroxide production facility to process lithium mineral concentrates that are essential for the North American electric vehicle (EV) battery value chain.

Avalon intends to deploy Metso’s technology to construct and operationalise a full-service lithium processing facility at the company’s recently acquired Thunder Bay, Ontario industrial site.

Upon completion of the project, Avalon says it will be the first vertically integrated lithium producer in Ontario, while ensuring Canada’s EV battery manufacturing base has a stable, proximate and long-term supply of this resource.

“Metso’s platform and technological solutions perfectly complement Avalon’s vision to complete an integrated lithium value chain in Ontario, predicated on innovative process solutions,” Zeeshan Syed, President of Avalon, said. “We view Metso as an integral part of this rapidly growing sector, and a foundational partner in developing internationally best-in-class processing capabilities that are environmentally sustainable, allowing Avalon to meet the soaring demand for battery-grade lithium.”

The non-binding MoU stipulates:
• The pursuit of a definitive agreement to establish a lithium hydroxide processing facility in Thunder Bay;
• Avalon to license Metso technology and solutions to produce lithium hydroxide cathode materials to serve the EV market;
• Allow Metso to conduct testing and engineering work across Avalon’s portfolio of critical-mineral projects, including the company’s flagship deposit at Separation Rapids near Kenora, Ontario; and
• The parties anticipate reaching a definitive agreement on or before September 1, 2023.

Metso’s sustainable next-generation production and processing technologies are being deployed internationally by governments and clean-energy producers in order to address and deliver the necessary supply required by the emerging EV battery industry, Avalon says.

Avalon’s strategic partnership with Metso is a first in Canada, and is a significant step towards helping the company execute on its vertically-integrated business strategy – and, in turn, entrench Ontario’s position as an advanced manufacturing hub serving not only North America, but the world.

Mikko Rantaharju, Head of Hydrometallurgy at Metso, said: “Metso is looking forward to partnering with Avalon and be part of its long-term vision to be a mid-stream supplier in the lithium hydroxide space. We are aligned with Avalon’s vision of the future and proud to play a key role in technology supply and advancement into clean energy solutions.

”We are also extremely excited to be partnering with the first Ontario conversion facility with Metso’s technology. The innovation advantages of the alkaline process allow for elimination of the use of potentially harmful chemicals such as sulfuric acid and comparatively reduces overall solid waste and emissions, making it environmentally friendlier and overall, safer for workers and local surrounding communities.”

Avalon is a Canadian mineral development company focused on vertically integrating the Ontario lithium value chain. The company is currently developing its Separation Rapids lithium deposit near Kenora, while continuing to advance other projects in its portfolio, including its 100%-owned Lilypad spodumene-cesium-tantalum project near Fort Hope, Ontario.

In additional to extraction activities, Avalon is executing on its key strategic objective of developing Ontario’s first midstream lithium hydroxide processing facility, a vital link bridging the gap between upstream lithium production and downstream EV battery manufacturing.

For battery minerals, Metso provides sustainable technology and equipment for the entire production chain, from the mine to battery materials and black mass recycling with project scopes ranging from equipment packages to plant deliveries.

New Gold achieves 15% fuel saving at Rainy River thanks to Cascadia Scientific solution

Environmental, Mine operation news, Mining services, Mining software, Precious metals, Sustainable mining, , , , , , , ,

New Gold has been leveraging Cascadia Scientific’s Terrain solution at its Rainy River operation in gold-silver mine in Ontario, Canada, as part of its plan to optimise operations at the open-pit operations.

In the company’s just released ESG report, New Gold highlighted that the Heat Mapping module of Terrain, designed to avoid excessive fuel burn, improve operator safety, and reduce equipment maintenance costs and greenhouse gas emissions, has proven itself when used on 13 of its haul trucks.

“In August 2022, Rainy River installed the Cascadia heat mapping system in 13 of its haul trucks,” the company said. “This technology, which identifies ‘hot spots’ along the haul route, allows Rainy River to identify the areas of inefficiency and rectify them.”

Between August and December, the program supported an average fuel savings of 15%, equivalent to just over 2.7 million tonnes of CO2e, New Gold said.

Terrain is made up of tools to visualise haul roads to target interventions that reduce fuel use, GHG emissions and accelerated equipment wear. Cascadia Scientific combines high-accuracy fuel consumption data with measurements of road grade, vehicle speed, position, motion and altitude to construct visual representations of haul road networks. This helps the company continuously supports clients in identifying and correcting hot spots to maximise efficient and productive operation, it said.

Eldorado’s Lamaque mine receives first Sandvik TH550B battery-electric truck

Environmental, Mine operation news, Mining equipment, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , ,

Eldorado Gold Quebec, which operates the Lamaque underground mine in Val-d’Or, says it has become the first mining company in Quebec to integrate a Sandvik TH550B battery-electric truck into its fleet.

This truck, with a maximum capacity of 50 t, will play a key role in improving production efficiency, protecting the health and safety of workers, but above all in mitigating our gas emissions, the mining company said.

Back in March, IM reported that Eldorado was expecting to receive its first battery-electric truck in June for use at Lamaque, with the operator confirming a second truck was scheduled to arrive by the end of the year.

The introduction of these electric trucks is part of the strategy of progressive electrification of the equipment fleet at Lamaque, and also supports efforts to electrify transportation in the Sigma-Lamaque underground ramp, the company said. As the first mining company in Canada to adopt this technology, Eldorado Gold Québec has worked closely with Sandvik to develop these trucks.

Sylvain Lehoux, Vice-President, Canada, said: “We are pleased to be able to begin the electrification of our underground operations thanks to the arrival of this electric truck, which will bring us several benefits, particularly in terms of mitigating our GHG emissions, but also for improving certain aspects of the health and safety of our employees. Over the next few weeks, our employees will be trained and this equipment will be in the testing phase in our operations. We are all looking forward to seeing this technology in action and actively pursuing our efforts to decarbonise our operations.”

Although the Lamaque mine is already recognised as one of the lowest GHG-emitting gold mines in the world, thanks in large part to access to hydroelectricity and the implementation of energy efficiency projects, it is expected that the use of these electric trucks will, once fully functional, reduce GHG emissions estimated at 1,700 tCO2 per year, the company says. This reduction is explained by the absence of diesel consumption and the 100% use of renewable electricity supplied by Hydro-Québec.

Foran Mining and Sandvik reveal first battery-electric DD422iE jumbo at CIM 2023

Environmental, Mineral project development, Mining equipment, Mining events, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , ,

Foran Mining and Sandvik have unveiled the first Sandvik battery-electric jumbo drill, a DD422iE, to be used at its McIlvenna Bay project in Saskatchewan, Canada, at the CIM 2023 conference in Montreal.

The DD422iE is part of a 20-strong battery-electric vehicle fleet for the project and comes with drilling and bolting capabilities.

When Sandvik announced the fleet order with Foran Mining last year – its largest BEV order at the time. It was to include seven Sandvik 18-t-payload LH518B loaders, six Sandvik 50-t-payload TH550B trucks, four Sandvik DD422iE jumbo drill rigs, two Sandvik DL422iE longhole drills and one Sandvik DS412iE mechanical bolter. Delivery of the equipment was scheduled to begin this year and continue into 2025, Sandvik said.

In the post announcing the milestone BEV drill, Foran said: “The innovative electric DD422IE, with drilling & bolting capabilities, reinforces our commitment to delivering carbon-neutral critical mineral production. As a company, we remain dedicated to developing and implementing eco-friendly solutions that will have a lasting positive impact on the environment and the communities we serve.”

The 2022 feasibility study on McIlvenna Bay outlined a 4,200 t/d operation over an 18.4-year mine life, able to produce an average annual production of 33,000 t of copper-equivalent output over the first 15 years of mine life. By individual metal this equates to 17,600 t of copper, 28,900 t of zinc, 20,000 oz of gold and 486,000 oz of silver.