Tag Archives: Capcoal

Anglo American to sell Queensland steelmaking coal assets to Peabody Energy

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.

Anglo American Australia workers herald new frontline safety program

Anglo American has leveraged the experience of its coal mine workers to devise its new frontline safety program, the Fatal Risk Management (FRM) program.

Through a bottom-up approach, frontline workers have been empowered to shape FRM, a program that, the company says, is easy to use and doesn’t add another layer of red tape.

Anglo American Australia CEO, Dan van der Westhuizen, said embedding frontline workers in the project team was crucial in designing the simplified and standardised tools as they understood the risks better than anyone else. He said the team included a mix of operators, coordinators, supervisors, superintendents and contractors across its Bowen Basin operations.

“Fatal Risk is not a new concept for the mining industry and learnings from our people, peers and industry experts have informed our approach,” he said. “Our point of difference has been cultivating FRM from the operator level to leverage the insights and experiences of our frontline workers to ensure we have the best chance of getting it right.”

The FRM program comprises 14 Fatal Risks and 50 crucial Fatal Controls that sit underneath risks and these must be in place to help prevent a fatality from occurring at the frontline. Every job. Every time.

“These 14 Fatal Risks are sobering because they represent circumstances where a teammate in our business or industry has lost their life or been seriously injured on the job,” van der Westhuizen said. “It’s not often you get a chance to stop, take a step back and create a new way of working but we knew we had to make a change. Everyone deserves to go home to their families, friends and loved ones at the end of every shift.

“We know change is not easy and a culture doesn’t change overnight, but we know we are moving in the right direction.”

Anglo American was a finalist in the 2024 Prospect Awards for the rollout of its FRM project – created by the frontline, for the frontline.

Capcoal Exploration Supervisor, Will Parfitt, who has been in the mining industry for more than 17 years, said he had been proud to represent his colleagues as a member of the Fatal Risk frontline team.

“There is nothing more important than the safety of my colleagues across Anglo American and this is one of the most important things I’ve done,” he said. “I’m really proud to be involved. We now have one universal Take 5 book and Job Risk Assessment template across all operating divisions – among the last lines of defence when it comes to identifying and managing risk at the frontline.

“Five different variations existed before which was extremely confusing and painful for our workers and contractors who work across multiple sites. It wasn’t an easy process – we each brought our own views, perspectives and things we thought our individual sites wanted and needed. We recognised early on that we wouldn’t be able to please everyone or achieve perfection. We wanted to design the best tool that met the needs of the majority.

“When coupled with the other tools in our FRM system, our Take 5 provides the prompts to change our frontline’s perception and tolerance to risk.”

Moranbah North Mine Underground Coal Mine Worker, Lil Shanley, who has just returned from the International Mines Rescue Competition in Colombia, was also a key member of the FRM development team.

“When someone doesn’t return home, the impact is significant on the families, friends, colleagues, community and the industry. The ripple effect is devastating,” she said. “Ultimately, we’re all here for the same reason – nothing is more important than safety. I’ve worked across almost the whole Bowen Basin and the simple tools are the ones that work best.

“If it’s too complex, people don’t understand it and they won’t complete it properly for fear of getting it wrong. There is nothing confusing about these new tools and the people using them are the ones who have come up with them. I am proud of being able to make the decisions that are going to become a legacy.”

Capcoal Dozer Operator, Emily Page, also involved in the FRM team, said she loved mining and could never go back to a normal nine-to-five job but being on site for a fatality was “the worst thing in the world”.

“If we can make sure everyone goes home every day, that’s the most important thing,” she said. “The most important thing to come out of the mine is the miner. I just don’t want anyone to lose their life, not just in Anglo American but in the industry; it’s got to stop.”

Anglo American defines Fatal Risk as something that has the potential to immediately kill a worker on the frontline during a task. Sadly, these Fatal Risks represent a circumstance where someone in the business or in our industry has tragically lost their life in the past. Under each Fatal Risk are 3-5 Fatal Controls which are the crucial few controls that need to be in place to help prevent a fatality on the frontline. Importantly to meet the criteria of being a ‘Fatal Control’, any worker must have the ability to implement and check that the control is operating as intended– with the power truly being in a frontline worker’s hands.

Shaun Dando, Safety Leadership Practices Coach at Grosvenor, says: “If you asked me until recent times, I would have struggled to identify the Fatal Controls most relevant to me – we have over 1,000 critical controls on file. With FRM, we have narrowed that down and now the controls relate specifically to the Fatal 14, which is so practical and user-friendly.

“I look at that list of 14 and can put faces and names to those risks. I have lost workmates to a number of them, so there is a real reason to have them; it is so we all go home safely – every day,” he said.

Anglo American introduces teleremote dozing at Capcoal Complex

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.”

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.

Bis to provide tailored equipment solution for Anglo American Capcoal contract

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

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

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

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

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

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

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

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

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

Mastermyne’s Aquila coking coal contract extended by Anglo

Anglo American has extended the stay of Mastermyne Group at its Aquila coking coal project in Queensland, Australia, with the ASX-listed contractor set to continue development of the underground mine for at least the next 12 months.

Mastermyne has been engaged since August 2019 to undertake roadway development in the mains and gate roads, and all outbye related services for the establishment of the new longwall operation at Aquila.

The contract variation will extend the current contract to March 2022 and includes the operation of an additional roadway development unit.

Mastermyne currently employs 178 full-time personnel under the contract, with a further increase of around 60 full-time personnel required for the operation of the additional roadway development unit. Up to half of the personnel for this third development unit at Aquila mine will be relocated from Anglo’s Moranbah North coal mine (currently suspended), following the completion of planned activities. Mobilisation of the additional workforce at Aquila will be completed by March 2021.

The contractor says it continues to supply development equipment from its fleet, including a continuous miner and ancillary development equipment for the project.

Total revenue generated from the variation and extension to the mining contract is expected to be approximately A$60 million ($47 million).

Mastermyne CEO, Tony Caruso, said “We have been working to deliver major underground infrastructure and roadways safely and efficiently, and we look forward to continuing our work with Anglo American to deliver their new longwall project, producing premium high-quality hard coking coal.”

Anglo’s 70%-owned Aquila project will extend the life of its existing Capcoal underground operations by six years and continue to use the associated infrastructure at the Capcoal complex as its nearby Grasstree mine approaches end of life, Anglo says. The project is scheduled for first longwall production of coking coal in early 2022.

Water treatment plant starts up at Anglo American’s Aquila met coal project

Anglo American’s Metallurgical Coal business says it is now operating the first of two state-of-the art reverse osmosis (RO) water treatment plants at its Aquila project in the Bowen Basin, Queensland.

The aim of the RO plants is to reduce the use of fresh water in its mining operations.

Chief Executive Officer of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said the A$5 million ($3.9 million) water treatment system was currently treating two megalitres of mine affected water (MAW) a day and supporting construction of the Aquila Mine, near Middlemount in central Queensland.

“A key target in Anglo American’s global Sustainable Mining Plan is to reduce our reliance on fresh water by 50% by 2030 across our mine sites, and I’m pleased to say Aquila is currently sourcing recycled water during construction of the mine,” Mitchelson said.

“A planned second RO plant will to be used to recycle a further 2.4 megalitres of MAW – once Aquila becomes operational in early 2022, more than doubling capacity and helping to reduce the reliance on water from local sources during times of drought.

“Aquila will be one of the world’s most technologically advanced underground mines and will showcase our innovation-led approach to sustainable mining. The project is currently supporting 500 jobs.”

Aquila, owned 70% by Anglo and 30% by Mitsui & Co Ltd, will extend the life of Anglo’s existing Capcoal underground operations by six years and continue to use the associated infrastructure at the Capcoal complex as its nearby Grasstree Mine approaches end of life, Anglo says. The mine will also continue to adopt Anglo American’s FutureSmart Mining™ program, which applies innovative thinking and technological advances to address mining’s major operational and sustainability challenges, the company said. One of the initiatives the company is working on as part of this is remote operation of the longwall; a process the company has trialled at some of its other Bowen Basin coal mines.

Aquila’s Project Director, Tony Willmott, said the A$240 million Aquila Mine was committed to awarding contracts locally.

“Our Aquila project is progressing well, with support from its Queensland-based workforce and contracting partners. More than 90% of our Aquila contracts have been awarded to Queensland-based suppliers,” Willmott said. “Aquila’s integrated network of pipes and pumps is securing the distribution of high-quality water which is necessary in metallurgical coal mining for equipment cooling and coal cutting operations.”

Anglo American commits to Aquila coal development with >A$240 million of contracts

Anglo American has invested more than A$240 million ($175 million) with suppliers for its 70%-owned Aquila metallurgical coal project in Central Queensland, Australia, which, the company says, will be one the world’s most technologically advanced underground mines.

Aquila will extend the life of Anglo American’s existing Capcoal underground operations near Middlemount by six years and continue to use the associated infrastructure at the Capcoal complex as its nearby Grasstree Mine approaches end of life, Anglo says.

Anglo American has awarded nearly A$200 million to six longwall equipment suppliers to deliver a “walk-on, walk-off system” using two complete longwalls, a A$20 million overland conveyor system and more than A$20 million in civil works, it said.

The project, which is scheduled for first longwall production of premium quality hard coking coal in early 2022, includes a A$5 million reverse osmosis water treatment system to increase the use of recycled water and reduce the reliance on fresh water at the mine – a key target in Anglo American’s Sustainable Mining Plan.

Chief Executive Officer of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said: “Our Aquila project is progressing well, with support from its Queensland-based workforce and contracting partners. More than 90% of our Aquila contracts have been awarded to Queensland-based suppliers, and we currently have around 500 people working on the project in engineering, surface construction and underground development.

“Aquila will be a breakthrough project, designed to set a new standard of safety and performance by leveraging technology and focusing on operational improvements. The mine will showcase our innovation-led approach to sustainable mining, with a remote operating centre on the surface of the mine, proximity detection systems underground to alert machine operators to pedestrians, and the continued digitisation of our operations, using new technologies such as our Australian-first intrinsically safe underground electronic tablets.”

In addition to the aforementioned construction contacts, Anglo American awarded a A$95 million mining development contract to Mackay-based mining company, Mastermyne in 2019.

Fenner Dunlop ACE wins overland conveyor contract from Anglo American

Fenner Dunlop ACE has been contracted to deliver an overland conveyor system for Anglo American’s Aquila coal project in Queensland, Australia.

Aquila is an underground hard coking coal mine near Middlemount, which will extend the life of Anglo American’s existing Capcoal underground operations by six years. It comes with an expected capital cost of $226 million (Anglo American share), with first longwall production of premium quality hard coking coal expected in early 2022, according to Anglo.

Tyler Mitchelson, CEO of Anglo American’s Metallurgical Coal business, has previously said Aquila will become one of the most “technologically advanced underground mines in the world”.

Under the new contract award, Fenner Dunlop ACE will undertake the complete design, supply and installation of the ACV002 Overland Conveyor. Works will include the overland structure, belting, electrics and an elevated stacker to load coal onto the site stockpile. Several conveyor components, including mechanical supply, electrical supply and belting, will be manufactured in Australia.

Brendon Harms, Regional Manager ACE QLD, said: “After delivery of the initial underground development works, we are very excited to be working on this project. We believe we have created a culture of delivering on our promises. Completing the design, supply and installation give us a great opportunity to ensure effective conveyor operation for our client.”

Fenner Dunlop ACE will also be responsible for the complete install and commissioning of the overland conveyor, providing even further responsibility and ownership for the project. The overland conveyor project is expected to be commissioned in the second half of 2021.

Anglo American could use ‘green’ hydrogen power at Queensland open-pit coal mines

Anglo American has eyes on producing ‘green’ hydrogen to power the haul fleet at not only its Mogalakwena platinum group metals mine, in South Africa, but also at least one of its open-pit coal mines in Queensland, Australia, IM has learned.

The miner is part of the Macquarie Corporate Holdings Pty Limited shortlisted application for the next stage of the Australian Renewable Energy Agency’s (ARENA) A$70 million ($49 million) hydrogen funding round, a spokesperson confirmed.

BHP is also on this short list, all of which have been invited to submit a full application for ARENA’s funding for renewable hydrogen development projects in Australia.

While it is early days for the Anglo and Macquarie decarbonisation project, the spokesperson said the company’s approach in Queensland could be like the one the miner and ENGIE are developing at Mogalakwena.

The project in South Africa involves the delivery of a new Fuel Cell Electric Vehicle (FCEV), set to be the world’s largest hydrogen powered mine truck, and the ‘green’ hydrogen generation solutions to power it.

The 300 t payload FCEV haul truck will be powered by a hydrogen Fuel Cell Module paired with a Williams Advanced Engineering scalable high-power modular lithium-ion battery system. This arrangement, which replaces the existing vehicle’s diesel engine, is controlled by a high voltage power distribution unit delivering more than 1,000 kWh of energy storage.

Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, is to deliver a 3.5 MW electrolyser to ENGIE as part of the project, while Plug Power Inc is to build a first-of-its-kind full compression, storage, and dispensing system to service the new hydrogen-powered vehicle.

In Queensland, where there is no shortage of solar power to provide this ‘green’ hydrogen, Anglo has two open-pit coal mines – Dawson (pictured) and Capcoal – that could potentially benefit from this solution.

In response to the ARENA shortlisting announcement, Anglo American said: “Anglo American has pioneered the development of hydrogen power solutions for mining operations and we are working on a number of hydrogen projects around the world as part of our pathway to carbon-neutral operations by 2040.

“We welcome ARENA’s potential support and will continue to work on this particular project’s feasibility over the coming months.”

Applicants invited to the full application stage by ARENA will have until January 2021 to prepare their application, with the agency expecting to select the preferred projects by mid-2021. Successful projects are expected to reach financial close by late 2021 and commence construction in 2022.

All applicants may also be considered for financing from the Clean Energy Finance Corp (CEFC) under the CEFC’s A$300 million Advancing Hydrogen Fund.