Tag Archives: Chile

BHP consolidates digital project offering with new Brisbane facility

BHP, to more effectively ramp up its use of digital technologies, has opened the first of its ‘digital factories’ in Brisbane, Australia.

Instead of having digital projects delivered by multiple parts of its business, the factory will create a unified ‘community of practice’ among technical roles, according to Rag Udd, BHP Acting Chief Technology Officer.

“The new hubs will abandon the traditional hardware-centric approach to innovation and will help us maximise the use of cloud technologies for rapid digital development in an enhanced digital environment,” he said.

An example of that comes from the company’s coal business where it is launching its “first digital factory”.

Udd explained: “The coal mined from Caval Ridge needs to go through a processing plant. Typically, for every 100 t that enters the plant, around 58 ts of sellable product comes out the back-end. In our digital factory trial, we set the team a challenge of improving this yield using just 12 months’ worth of historical data.”

The team quickly created an algorithm that told the company what the optimal setting for the plant was, based on the blend of coal coming from the mine, according to Udd.

“There is more to do, but this will help us improve our yields and increase the utilisation of our processing facility,” he said. “This is the very definition of productivity: a low cost way to markedly improve an output.”

In the future, BHP hopes to see much more of this type of innovation, according to Udd.

“Our sites are expected to benefit from the rapid deployment of reliable solutions that make their lives easier, minimising variability and unplanned outages,” he said. “The factory will focus on projects that can be delivered quickly, where minimal onsite infrastructure is required and where the return on investment is many multiples of the initial outlay.”

While BHP has started in coal in Brisbane, it plans to also launch digital factories in Chile, North America and Western Australia, according to Udd.

“They will partner with our operations to help solve asset-specific problems,” he said. “Struggling with a well performance issue in the Gulf of Mexico? Speak to your local factory and see if machine learning can provide some insight. Conveyor belt reliability issues in Chile? Let’s see if your ‘digital foreman’ can run some advanced analytics over data from the sensors.”

He concluded: “Other industries have shown us that this model works. With the right people and the right operating model set up, I am confident that we can bring an exciting new element to the way we solve operational problems, and in doing so rapidly create real and lasting value for BHP.”

DMC Mining invests in new Sandvik, Herrenknecht equipment for Chile projects

DMC Mining Services says it is ramping up activity in Chile, after being awarded five new contracts at the end of 2019.

One of North America’s premier underground contractors, DMC recently secured work at KGHM’s Franke and Sierra Gorda mines, in the Antofagasta region, in addition to a boxhole boring assignment at Codelco’s El Teniente mine, near Rancagua.

To ensure maximum reliability and performance for its clients, the company has invested in new equipment, it said.

For its drilling project at the open-pit Franke mine, two truck mounted Sandvik DE712 diamond drills have been delivered to site. Two additional units, Sandvik DE881 multi-purpose drills, will follow in order to increase drilling capability for this project and an additional project at Sierra Gorda, a 110,000 t/d of ore open-pit operation, it said.

For the boxhole boring project at Codelco’s El Teniente mine, the biggest underground copper mine in the world, DMC has taken delivery of a Herrenknecht BBM1500 boxhole boring machine. Two additional BBR1500 units are on order, which include back-reaming capability to create larger diameter raises, it said.

DMC said: “We are proud of the progress our Chilean team has accomplished over several short months, and that our clients can always rely on DMC’s dedication, expertise and professionalism on any project, no matter where in the world we work.”

As its Chile team ramps up on these new projects, DMC is establishing a turnkey, comprehensive operation ready to serve not only new Chile clients, but all of the South American mining industry – with raiseboring, shaft sinking, underground mining and engineering capabilities – it said.

Renewable power on its way to Antofagasta’s Centinela mine

Antofagasta has signed a new power purchase agreement (PPA) with ENGIE Energía Chile SA that will see 100% of the power supplied to its Centinela copper operation, in Chile, come from renewable sources.

The contract, from 2022 until 2033, will replace two existing PPAs Antofagasta had in place that expire in 2026 and 2027. It will also see the company sell its indirect 40% interest in the Hornitos thermal power station to ENGIE, resulting in an attributable post-tax write down of some $43 million, it said.

After the write down, this new renewable energy contract will be value accretive as power costs will be significantly reduced in stages from 2020 onwards, Antofagasta noted.

Antofagasta’s CEO, Iván Arriagada, said: “With the completion of this agreement, from 2022, all our mining division’s power will be from renewable sources, and at a lower cost as well. This is an important step in achieving our target to reduce our carbon emissions by 300,000 t by 2022.”

BHP and Vale invest in COVID-19 testing and mitigation measures in Chile, Brazil

BHP and Vale have invested in measures to help mitigate the spread of the COVID-19 virus in Chile and Brazil, respectively.

While BHP has already announced COVID-19-related plans to hire more people and provide preventative measures in Australia, on top of freeing up money for to support local suppliers, it has now tabled its $8 million strategy in Chile aimed at strengthening the country’s public health network in the face of the pandemic.

It has joined with the Medical Faculty of Universidad Católica with the immediate objective of raising the testing capacity and strengthening the Familiar Health Centers of the South East Area of the Metropolitan Region, as well as Antofagasta and Tarapacá – where its majority-owned Escondida and Cerro Colorado copper operations, respectively, reside.

This plan includes:

  • An Early Detection Program through rapid testing, in support of the Primary Attention Centers (this includes 150,000 rapid tests for detecting the virus). This system includes 10 units for sampling, with mobile tents and permanent units, the company said;
  • Expansion of laboratory capacity, including the purchase of new analysis equipment to maximise the speed for processing tests. Results will be delivered to patients in 24 hours, BHP said;
  • Community surveillance for cases that test positive and their contacts, based at Primary Attention Centers and telemedicine; and
  • A 24/7 call centre for identifying potential cases.

Daniel Malchuk, President Operations at Minerals Americas, said: “This plan shows our commitment and our profound belief that we should work together to face the difficult times we are going through.”

In addition, BHP will implement a program to support communities and high-risk vulnerable groups in the regions where the company operates, Antofagasta and Tarapacá. This will allow the delivery of supplies, sanitisation of public areas, areas for the isolation of potential cases and support to the state network to increase medical rounds, supplies and treatment for high-risk people, it said.

BHP previously changed the terms of payment for all providers and collaborators in Chile, with large taxpayers cut to 30 days, small and medium enterprises reduced to 14 days and local companies from the Antofagasta and Tarapacá Regions having their terms cut to seven days.

Vale, meanwhile, said its China subsidiary had recently taken delivery of the first batch of 5 million rapid test kits to diagnose COVID-19.

The tests, which can provide results in just 15 minutes, were purchased from China and will be delivered to the Brazilian government, it said. Produced by the Chinese company Wondfo, the test is registered at the National Health Surveillance Agency (Anvisa, Agência Nacional de Vigilância Sanitária) and was donated by Vale to help the Brazil Government fight the spread of the virus in the country.

Some 500,000 units are currently in transit (by plane) from Guangzhou Baiyun International Airport, in the Chinese province of Guangdong, on their way to the International Airport of Guarulhos (São Paulo). They are expected to arrive in Brazil this evening.

Vale’s CEO, Eduardo Bartolomeo, said: “Vale offers this support to the Brazilian society at this time when the country is united for the health and safety of people. We are using our logistics network from Asia to bring inputs that can make a difference in people’s lives in Brazil.”

The remaining 4.5 million units will be delivered by the supplier in April, Vale said.

The amount of test kits purchased by Vale represents half of the needs estimated by the Brazilian Ministry of Health as of March 22, it explained.

Black & Veatch helps the water balance at Escondida

With BHP recently celebrating the completion of the Escondida Water Supply Expansion (EWSE) project at its majority-owned Minera Escondida mine in Chile, the designer and engineer of record, Black & Veatch, has taken the time to review its work on the more than two year project.

The expansion increases the mine’s desalination capacity to the point where 100% of its needs can be self-supplied with desalinated water, according to the company, helping to protect local groundwater resources while ensuring a more sustainable, resilient and reliable water future.

Black & Veatch served as designer and engineer of record on not only the EWSE project, but also the original Escondida Water Supply (EWS) project, heralded as one of the largest, most complex desalination infrastructure projects in South America, it said.

“Completion of the EWSE project comes amid mining’s growing focus on sustainability and resilience,” it said. “Minera Escondida is in the Antofagasta region in northern Chile, one of the driest regions in the world and water is at a premium. With the Monturaqui Aquifer closing in late 2019, BHP, the mine’s majority owner and operator, realised the need to bolster desalination capabilities.”

The project builds upon Black & Veatch’s history of providing water production, water conveyance and desalination services to BHP. In 2013, the company was selected to lead the engineering design, procurement, field inspection and pre-commissioning for the marine and desalination elements of the EWS project, which was completed in 2017.

When it came time to expand the Escondida desalination facilities, BHP again turned to Black & Veatch, hiring the engineering company to serve as engineer of record for the water production, water conveyance and high-voltage components of the project; providing engineering, procurement, construction management services, pre-commissioning and commissioning services.

The EWSE project involved multiple components to increase desalinated water production capacity by 833 l/s while expanding water conveyance capacity by 1,438 l/s. The project began in June 2017 and was commissioned one week ahead of schedule, on December 25, 2019, according to Black & Veatch.

“The project was executed on a tight timeline, but Black & Veatch was well-positioned to deliver on this work, given our knowledge of the original EWS project and the client,” Jim Spenceley, Senior Vice President of Black & Veatch’s Mining business, said. “This knowledge allowed us to identify efficiencies, reducing the amount of time to construct and commission and allowing us to safely deliver EWSE ahead of schedule.”

The original EWS infrastructure was developed with expansion in mind, and Black & Veatch’s design allowed BHP to adopt an optimised solution that used the existing EWS footprint, helping to lower capital costs, it said. Replicating equipment used in the EWS project also helped standardise and simplify operations and maintenance, according to the company.

Iain Humphreys, Business Line Director and Head of the company’s regional office in Santiago, Chile, said: “Black & Veatch provided the in-depth knowledge and experience to undertake this strategic project on behalf of BHP and to successfully complete EWSE. Having worked on both projects really pays testament to the high skill level and deep experience of all our professionals.”

Between the two projects – the original EWS desalination plant and the EWSE – Black & Veatch worked more than 3 million worker-hours without a recordable safety incident, it said.

To complete the project safely, ahead of schedule and with the highest quality standards, Black & Veatch placed significant resources behind the project. A diverse international team contributed – the core team of local professionals located in Santiago was supported by Black & Veatch professionals from multiple US states, plus the UK, India, Chile, El Salvador, Cuba and Colombia. The project also had a 25% female participation rate, supporting BHP’s corporate goal of gender diversity.

Wenco fleet management solution to monitor, control production at Antofagasta’s Centinela

Thiess has chosen the Wenco Mine Performance Suite to run its operations at Antofagasta’s Centinela copper mine in northern Chile.

Centinela sits 1,350 km north of Santiago in the Antofagasta Region of Chile. Antofagasta Minerals has contracted Thiess, the world’s largest mining contractor, to develop the Encuentro Oxides pit, which will contribute to the mine’s production of 50,000 t/y of copper cathode for a planned lifespan of 15 years.

To monitor and control this production, Thiess is leveraging the Wencomine fleet management system. The system will optimise productivity and efficiency across the pit’s 56 active units, including 12 high-precision loading units and five high-precision drill rigs, according to Wenco.

Wenco’s data solutions are designed to boost productivity, decrease operating costs, extend equipment life, and give mining companies actionable insights into their operations. Its Mine Performance Suite consists of systems for fleet management, high-precision machine guidance, predictive maintenance, collision avoidance, and mining business intelligence.

Unlike other solution providers, Wenco, a Hitachi Group Company since 2009, has designed its systems with an “open systems philosophy” that, it says, “empowers customers to freely integrate systems to support their unique business processes, data requirements, and reporting needs”.

Thiess chose Wenco for its reputation in delivering strong production functionality and a streamlined implementation process with minimal impact on day-to-day mine operations, it said.

Wenco said: “Expanding the business relationship with Thiess in South America is strategically important for Wenco as well. Contractor-operated sites are common throughout the region and they stand as a significant growth market for the company. Likewise, contractor partnerships form a key part of the open and interoperable ecosystem of partners pushed by Wenco and its parent company, Hitachi Construction Machinery.”

Wenco Regional Manager — Latin America, José Eugenio Saravia, said: “We’re very pleased to implement the Wenco Mine Performance Suite at the Encuentro Oxides development.

“Wenco has worked with Thiess at various mining developments around the world and our solutions are ideal for the productivity improvements and ease of deployment they require. We’re looking forward to a long and profitable business together.”

This sale is another boon to Wenco in the region, following recent sales to Chinchillas and Pucamarca mines and a new partnership with Brazil mining solutions provider Tecwise.

“Contractors like Thiess are a major growth area for Wenco and the industry as a whole. We’re seeing a great many more opportunities of this sort throughout Latin America,” Saravia says.

“As well, we’re seeing more and more customers excited to partner with a Hitachi-owned company like Wenco, who can deliver the reliability and support only available from a major OEM and global mining leader.”

Teck renews carbon reduction goals with help of AES

Teck Resources, AES Corp and their respective Chile-based affiliates, Compañía Minera Teck Quebrada Blanca SA and AES Gener SA, have entered into a long-term power purchase agreement for the Quebrada Blanca Phase 2 (QB2) copper project in Chile, which will enable the transition to renewable energy for around half the power required for the operation.

Under this arrangement, CMTQB will source 118 MW for Quebrada Blanca Phase 2 from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy, in addition to the 21 MW of solar power already contracted from AES Gener. Once effective, more than 50% of QB2’s total operating power needs are expected to be from renewable sources, Teck said.

The transition to renewable power will replace QB2’s previous fossil fuel power sources, avoiding some 800,000 t/y of greenhouse gas emissions. “That is equivalent to the emissions of about 170,000 combustion engine passenger vehicles – equal to permanently parking more than half of all the cars in the City of Vancouver, or all the cars in the Tarapacá Region of Chile where QB2 is located,” Teck said.

The renewable power arrangement will come into effect as early as January 2022 and will run through October 2042. CMTQB’s other arrangements with AES Gener, totaling 122 MW of power, are not impacted, Teck said.

Don Lindsay, President and CEO of Teck, said: “Switching to renewable power for QB2 is part of Teck’s ongoing work to reduce emissions, achieve carbon neutrality across our business and support global action on climate change. This agreement secures reliable, long-term power for our major copper growth project at no additional cost, while helping to reduce our environmental footprint.”

Lindsay said the company would continue to explore further opportunities to increase the use of renewable energy as part of Teck’s ongoing focus on decarbonisation.

Andrés Gluski, President and CEO of AES, said: “We are proud to work with our customers in the transition to a low-carbon energy future. We have a long-term relationship with Teck and are happy to support their evolving energy needs.”

Ricardo Manuel Falú, AES Gener’s Chief Executive Officer, said: “At AES Gener, we are contributing to the mining sector’s goal of being more sustainable while supporting the decarbonisation of the Chilean energy matrix. With our Greentegra strategy and our Coal to Green solution, we enable our customers to become greener and more competitive by replacing coal-based energy sources with renewables.”

The $4.74 billion project is expected to produce 316,000 t/y of copper-equivalent for the first five full years at all-in sustaining costs of $1.38/Ib ($3,043/t). The initial mine life of 28 years uses less than 25% of the current reserve and resource, according to Teck and, based on a $3/Ib average copper price over the life of the mine, QB2 is expected to provide a net present value (8% discount) of $2.43 billion.

In addition to renewable power, QB2 will also feature the first large-scale use of desalinated seawater for mining in the Tarapacá Region of Chile, in place of freshwater use.

The QB2 announcement comes at the same time as Teck announced a goal of becoming carbon neutral across its operations and activities by 2050.

“This objective builds on Teck’s progress on climate action to date, including implementing projects and initiatives to reduce GHG emissions at its operations by 289,000 t since 2011 – the equivalent to taking over 88,000 combustion engine cars off the road – and 81% of Teck’s current total electricity consumption is from renewable energy sources.”

AES is also committed to reducing its carbon intensity by 50% by 2022 and 70% by 2030, compared with a 2016 baseline. Aligned with that goal, AES Gener is leading the decarbonisation efforts in Chile, with the largest amount of renewable energy capacity under construction in that country, according to Teck.

ICMM looks to align mining industry on cleaner, safer vehicles

When the International Council on Mining and Metals (ICMM) launched its Innovation for Cleaner, Safer Vehicles (ICSV) program just over a year ago, some industry participants may not have realised how much progress could be made so quickly by taking a collaborative approach.

The ICMM has proven influential across the mining industry since its foundation in 2002 in areas such as corporate and social governance, environmental responsibility, and stakeholder relations, yet it has rarely, until this point, engaged directly as an industry group with original equipment manufacturers (OEMs) and service providers.

Close to 12 months after being established, it’s clear to see the program and the council itself has been successful in bridging a divide.

It has been able to corral a significant portion of the mining and mining OEM market players into a major industry discussion on core focus areas set to dominate the sector for the next two decades.

Now 27 of the world’s leading mining companies and 16 of the best-known truck and mining equipment suppliers are collaborating in a non-competitive space “to accelerate the development of a new generation of mining vehicles that will make vehicles cleaner and safer,” the ICMM says.

The ICSV program was created to address three of the most critical safety, health and environment performance issues in the ICMM’s mission towards zero harm and decarbonisation. Achieving this goal would involve the industry introducing and adopting the next generation of equipment to respond to the challenges.

More specifically, the program aims to:

  • Introduce greenhouse gas emission-free surface mining vehicles by 2040;
  • Minimise the operational impact of diesel exhaust by 2025; and
  • Make collision avoidance technology (capable of eliminating vehicle related collisions) available to mining companies by 2025.

In all three, it seeks to address the industry’s innovation challenge of ‘who motivates who’ or the chicken and egg analogy, according to Sarah Bell, Director, Health, Safety and Product Stewardship for the ICMM.

“You can imagine a mining company saying, ‘we can’t adopt technology that doesn’t yet exist’ or an OEM saying, ‘we can’t invest in development because we’re getting mixed market signals’. This is, of course, why this program has been set up in the way it has,” she told IM. “Bringing both the mining company and OEMs together, they have been able to work through these normal innovation challenges and align on defining the direction of travel and critical complexity to be solved for each of the ambitions set.”

High-level participation

The list of companies the ICMM has been able to involve in this program is impressive.

It is being guided by a CEO advisory group of six; three from the mining community – Andrew Mackenzie (CEO, BHP), Mark Cutifani (CEO, Anglo American) and Nick Holland (CEO, Gold Fields) – and three from the mining equipment supply side – Denise Johnson (Group President of Resource Industries at Caterpillar), Max Moriyama (President of the Mining Business Division at Komatsu) and Henrik Ager (President of Sandvik Mining and Rock Technology).

On the mining company front, ICMM membership makes up around 30% of the total metal market share, with some 46% in copper, 27% in gold and 42% in iron ore. Participating OEMs and third-party technology providers, meanwhile, include the three majors above, plus Cummins, Epiroc, Wabtec Corporation (formerly GE), Hexagon Mining, Hitachi Construction Machinery, Liebherr, MacLean Engineering, MTU, Modular Mining Systems, PBE Group, Nerospec, Future Digital Communication and Miller Technology.

Bell says the high-level participation builds the “widespread confidence” needed to accelerate investment in these three key areas”, while the ICMM’s focus on the leadership side of the technology integration equation and change management has proven “absolutely key”.

She clarified: “This collaboration operates under anti-competition and anti-trust rules. Our role is to convene the parties, motivate action and promote solutions.”

The program offers a “safe space for the OEMs and members to work openly in a non-competitive environment”, she added, explaining that the aim is not to come up with “preferred technologies”, but define the “functional and operational pathways required to meet the ambitions set”.

Vehicle interaction (VI)

Some of the ambitions look easier to achieve than others.

For instance, collision avoidance and proximity detection technology has made huge strides in the last decade, with the ICMM arguing its 2025 target is like a “sprint”, compared with the “10,000 m race” that is minimising DPM underground by 2025 and the longer-term aim to introduce GHG-free surface mining vehicles by 2040.

“There are regulations that require implementation of collision avoidance and proximity detection technology by the end of 2020 in South Africa,” Bell said. This will undoubtedly provide a catalyst for further developments to speed up.

The ICSV program is also leveraging the work of the Earth Moving Equipment Safety Round Table (EMESRT) in its development of fundamental functional/performance requirements for operators and technology providers.

These requirements were updated and released by EMESRT in September and are known as ‘PR5A’.

Credit: Hexagon Mining

Bell delved into some detail about these requirements:

“The EMERST requirements are designed around a nine-level system that seeks to eliminate material unwanted scenarios such as – equipment to person, equipment to equipment, equipment to environment and loss of control,” she said.

“The fundamental change with this newly released set of functional requirements by EMESRT is that the mining industry users have defined the functional needs for levels 7-9 (operator awareness, advisory controls, and intervention controls). That stronger level of collaboration hasn’t necessarily been there.”

EMESRT and its guidelines have been given an expanded global platform through the ICMM’s ICSV, with the program, this year, providing the convening environment for users and technology providers to help finalise these updated requirements, according to Bell.

With all of this already in place, one could be forgiven for thinking the majority of the hard work involved with achieving the 2025 goal is done, but the working group focused on VI knows that while OEMs continue to retrofit third-party vehicle collision and avoidance systems to their machines the job is not complete.

“Let’s think about the seatbelt analogy: you don’t give buyers of vehicles a choice as to whether they want a seatbelt in their car; it just comes with the car,” Bell said.

“At the moment, by design, vehicles don’t always have this collision and avoidance systems built in, therefore there is a big opportunity for collaboration between OEMs and third-party technology providers.”

Underground DPM goals

“The DPM working group have recognised that, in the case of the DPM ambition, ‘the future is already here, it’s just unevenly distributed’,” Bell said.

“Bringing together the OEMs and the mining companies this year through the ICSV program has enabled the group to explore the variety of existing solutions out there today,” she added.

These existing solutions include higher-tier engines, battery-electric equipment, tethered electric machinery, fuel cell-equipped machines for narrow vein mining and solutions to remove DPMs and other emissions from the environment like Johnson Matthey’s CRT system.

And, there are numerous examples from North America – Newmont Goldcorp at Borden, and Glencore and Vale in Sudbury – South America – Codelco at El Teniente Underground – and Europe – Agnico Eagle Mines at Kittilä (Finland, pictured) – to draw from.

Bell also mentioned some examples from Australia where regulatory changes have seen miners apply existing technology and carry out changes in their work plans and maintenance practices to minimise DPM emissions.

Haulage and loading flexibility, battery charging and mine design have all come under the spotlight since these new generation of ‘green’ machines have emerged, so achieving the 2025 goal the ICSV stated is by no means a foregone conclusion.

“There remains more work to do in achieving diesel-free vehicles underground,” Bell said.

The interested parties are aware of this and the program’s DPM maturity framework is helping miners and OEMs plot a course to reaching the target, she explained.

“The DPM maturity framework promotes existing solutions available today that would enable a mining operation to reduce their DPM emissions to a level that would meet the ambition level (shown as Level 4 – transition to zero),” she said.

These frameworks are useful for starting a “change conversation”, Bell said, explaining that mining companies can assess within their organisations where they currently sit on the five-level chart and discuss internally how to move up the levels to meet their goals.

These same frameworks look beyond minimising “the operational impact” of DPM emissions underground, with Bell explaining that Level 5 of the maturity framework involves “non-DPM emitting vehicles”.

GHG-free surface mining vehicles

Even further in the distance is the longer-term target of introducing greenhouse gas emission-free surface mining vehicles by 2040.

This ambition, more than any other, is less clearly defined in terms of technological solutions across the industry.

While battery-electric solutions look like having the goods to reach DPM-free status underground with expected developments in battery technology and charging, the jury is still out on if they can create a GHG-free large-scale open-pit mining environment.

The world’s largest battery-electric haul truck – eMining’s 63-t payload eDumper (pictured) – may have proven its worth at a Ciments Vigier-owned quarry in Switzerland, but the world’s largest open-pit mines require a solution on another scale altogether.

As Bell said: “There is a lot of work to do to develop batteries at scale for surface fleet that suit the different operating conditions.

“That’s a key point because that lends itself to the fact that we don’t want one solution; we will need multiple solutions. We don’t want to stifle innovation; we want to encourage it.”

ICMM member Anglo American has hinted that hydrogen power could be one solution, and the miner is looking to show this next year with the development of its hydrogen-powered 300-t payload haul truck.

There has also been in the last 18-24 months a mini renaissance of trolley assist projects that, ABB’s Gunnar Hammarström told IM recently, could, in the future, work in tandem with battery-powered solutions to provide a GHG-free solution.

The ability for industry to pilot and validate technology options like this “within the boundaries of anti-competition” is crucial for its later adoption in the industry, Bell said.

She said a key enabler of industry decarbonisation is access to cost competitive clean electricity, which would indicate that regions like South America and the Nordic countries could be of interest in the short and medium term for deploying pilot projects.

It is this goal where the industry R&D spend could potentially ramp up; something the ICMM and the ICSV is aware of.

“For the OEMs and mining companies to effectively minimise capital expenditure, optimise R&D expenditure and reduce the change management required by the industry, there needs to be a careful balance of encouraging innovation of solutions, whilst managing the number of plausible outcomes,” Bell said.

In terms of encouraging the development of these outcomes, carbon pricing mechanisms could provide some positive industry momentum. Vale recently acknowledged that it would apply an internal carbon tax/price of $50/t when analysing its future projects, so one would expect other companies to be factoring in such charges to their future mine developments.

Industry-wide GHG emission caps could also provide a catalyst. In countries such as Chile – where up to 80% of emissions can come from haul trucks, according to ICMM Senior Programme Officer, Verónica Martinez – carbon emission reduction legislation could really have an impact on technology developments.

Forward motion

While 2019 was a year when the three working groups – made up of close to 50 representatives in each work stream – outlined known barriers or opportunities that might either slow down or accelerate technology developments, 2020 will be the year that regional workshops convened to “encourage first adopters and fast followers” to move these three ambitions forward take place, Bell said.

A knowledge hub containing the previously spoken of maturity frameworks (delivered for all three groups) will allow the wider industry outside of the ICMM membership to gain a better understanding of how the miner-OEM-service provider collaboration is working.

Bell said the ICMM already has a number of members testing these group frameworks on an informal self-assessment basis to understand “how they are being received at an asset level and feedback insights to the group in an effort to understand how we may portray an industry representative picture of where we are today”.

Such strategies bode well for achieving these goals into the future and, potentially, changing the dynamic that has existed between end users and suppliers in the mining sector for decades.

Bell said: “The feedback that we got from OEMs is that mining companies had completely different objectives, but they have now greater confidence that we are aligned on the direction of travel towards the ambitions set.”

Wood studies Coro Mining’s development options at Marimaca copper project

Coro Mining says it has appointed Wood to advance engineering studies related to the development of its Marimaca copper project, in northern Chile.

The study announcement came at the as Coro announced a resource increase at Marimaca, which, the company said, established Marimaca as one of the largest copper oxide discoveries in northern Chile in over a decade.

The engineering studies are aimed at demonstrating the value to be captured by combining Marimaca’s significantly enlarged resource – now standing at 420,000 t of contained copper in the measured and indicated categories and 224,000 t in the inferred category – with “easy access to excellent infrastructure”, and move Coro from “a ‘cents per pound in the ground’ exploration project to a credible development company to be valued on a net present value basis”, Coro said.

Wood is set to take on a range of engineering studies to demonstrate the economics for a conventional full-scale project at Marimaca; and low capital expenditure (capex) alternatives for staged development at Marimaca, leveraging the nearby Ivan SX-EW plant (100% owned by Coro), according to Coro.

On the latter, Coro said: “The objective of staged development would be to minimise upfront capex and limit equity dilution to Coro’s shareholders.”

The company anticipates that the work from the various studies will be completed during 2020 and news will be released as work progresses.

A June 2018 feasibility study on just the Marimaca 1-23 Claim returned an after-tax internal rate of return of 58.8% and initial capital costs of $22.6 million for the upgrading and start-up of the Ivan plant, at a $3/lb ($6,614/t) copper price.

Pucobre to employ Epiroc 6th Sense solution at UG copper mines

Epiroc says it has signed a collaboration agreement with Sociedad Punta del Cobre SA (Pucobre) in Chile to digitalise the company’s mining operations, in turn, boosting productivity and safety.

The mining OEM is helping Pucobre to enhance its mining operations in the Atacama region of northern Chile, with the collaboration including defining new ways of working and new roles as well as development of an integrated information management system, it said.

Epiroc’s new 6th Sense Mine Management Solution will be included in this solution, combining Pucobre’s existing systems with, for instance, scheduler and other task management and reporting features, Epiroc said.

The new solution is already visible in Pucobre’s newly established Control Tower (pictured).

Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, said the 6th Sense collaboration with Pucobre would help modernise its mine operations and make it safer and more productive. “This represents the future of mining,” she added.

Sebastián Ríos, Pucobre’s CEO, said the company had high expectations for 6th Sense to continue improving the safety and productivity of its underground copper mining operations.

“We have strengthened our relationship with Epiroc, as we both target excellence in mining operations,” he said. “We rely on Epiroc’s strategic approach, its collaborative work and its professional team, which is regularly present at our mine site.”

The 6th Sense system can be connected to the customer’s existing machine fleet regardless of make or model, according to Epiroc.

“6th Sense is Epiroc’s new way to optimise customers’ processes through automation, system integration and information management – enabling a smart, safe and seamless operation,” the company said.

The collaboration extends the partnership between the companies. Pucobre’s Epiroc equipment includes Simba production drill rigs, Boomer face drilling rigs, and Scooptram and Minetruck underground loading and haulage vehicles, Epiroc said. The company also provides Pucobre with consumables and service.