Tag Archives: coal

BUMA secures $7.8 billion contract extension from Bayan Resources subsidiary

Coal technology, Mining services, , , , , , ,

PT Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of PT Delta Dunia Makmur Tbk (Delta Dunia Group), has secured a long-term contract extension with PT Indonesia Pratama (IPR), a subsidiary of PT Bayan Resources Tbk (Bayan Group).

The contract extension period spans 11 years, from 2024 to 2035, and will significantly contribute to BUMA’s revenue, amounting to approximately $7.8 billion.

The agreement includes a substantial increase in overburden removal, reaching 1.827 billion bank cubice metres, and an increase in coal production to 465 Mt over the contract period.

Ronald Sutardja, President Director of Delta Dunia Group, said: “We are proud of our long-standing relationship with Bayan Group, one of the leading coal producers in Indonesia. This contract extension reflects BUMA’s track record in delivering safe, efficient and reliable mining services to Bayan Group. It also reaffirms Delta Dunia Group and BUMA’s commitment to continue strengthening our presence and growing our core business in Indonesia while deepening our long-term relationships with all of our partners.”

Indra Kanoena, President Director of BUMA, stated, “This amendment agreement reflects Bayan Group’s trust and long-term commitment to strengthening our strategic and sustainable relationship, which has grown strong for over 17 years. It also underscores BUMA’s dedication to always prioritising mutual success with our clients. With this amendment agreement, we are committed to continuously enhancing our operational excellence and supporting sustainable growth for BUMA and Bayan Group.

“At BUMA, we are committed to consistently creating optimal value for all stakeholders while generating a positive impact on the communities and environment. We hope to sustain this positive momentum, seizing growth opportunities for both our company and our stakeholders.”

BUMA Australia wins contract extension at Meandu coal mine

Coal technology, Mine operation news, Mining services, ,

PT Delta Dunia Makmur Tbk (Delta Dunia Group) announced that its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA), through its wholly owned Australian subsidiary, BUMA Australia Pty Ltd (BUMA Australia) has been selected by TEC Coal Pty Ltd, a subsidiary of Stanwell Corporation, to continue providing mining services at the Meandu mine in Queensland, Australia.

The contract extension will last through June 2026, valued at approximately A$200 million ($138 million) per year. Under the renewed contract, BUMA Australia will maintain its current operational scale, with annual production of approximately 35 million bank cubic meters (bcm) and coal volumes of around 7 Mt.

Dian Andyasuri, Director at Delta Dunia Group, said, “We are delighted to continue BUMA Australia’s successful partnership with Stanwell Corporation. This contract renewal reflects BUMA Australia’s valuable contributions to our clients’ success and our commitment to building long-term partnerships. Delta Dunia Group is proud of BUMA Australia’s dedication to providing exceptional and reliable mining services, fostering strong community relationships, and practicing environmental responsibility as we move forward with the Meandu Mine project, setting new standards for excellence and sustainability in the industry.”

BUMA Australia has been operating the Meandu mine project since 2021 and will continue to oversee all aspects of the mine. This includes Site Senior Executive (SSE) responsibilities, mine planning, drilling, blasting, overburden removal, coal mining, and the management of coal handling and processing plants. Additionally, BUMA will oversee rehabilitation activities, civil works, and the maintenance of both mobile and fixed plant equipment.

BUMA Australia is committed to creating jobs and community development initiatives for the South Burnett region where the Meandu mine is located. Programs such as local skills training, cooperation with regional firms, and sponsorship of local sporting teams and events have greatly strengthened community bonds and boosted local economic growth.

“The new contract extension not only highlights BUMA Australia’s expertise in providing comprehensive mining services but also showcases our commitment to growing alongside the local economy and empowering the community. We are dedicated to recruiting locally and creating a diverse and inclusive workplace. Our focus on diversity and indigenous involvement ensures that all employees feel valued and supported. By investing in local talent and supporting diversity, we help to drive economic growth and social well-being in the South Burnett region,” said Colin Gilligan, CEO BUMA Australia.

In line with its commitment to environmental sustainability, BUMA Australia ensures that high-quality progressive restoration goals are consistently accomplished. In 2023, BUMA Australia reached an important milestone by completing the rehabilitation of 39.4 ha of native vegetation at Meandu mine. This initiative, which includes modern techniques for recovering local ecosystems, demonstrates BUMA Australia’s commitment to environmental responsibility.
BUMA Australia’s focus on compliance with the Coal Mining Safety and Health Act and Regulations has won industry recognition.

The extension contract with Stanwell Corporation at the Meandu mine marks an important milestone for Delta Dunia Group as it continues to strengthen BUMA’s presence in the global mining industry, particularly in the Australian market. More importantly, it allows BUMA Australia to continue its commitment to fostering local economic growth and sustainability.

Kestrel Coal Resources receives funding for coal mine waste gas power station project

Coal technology, Environmental, Mine operation news, Power supply for mines, , ,

Kestrel Coal Resources has announced that it has partnered with the Queensland Government, through the Treasury’s Low Emissions Investment Partnerships (LEIP) program, for the funding of a 30 MW coal mine waste gas power station project.

The project will allow the company to expand its gas drainage system to capture more gas, preventing it from being released into the atmosphere and repurposing it for power generation.

The 30 MW power station will generate enough electricity to power up to 40,000 homes and increase the reliability of the electricity grid in the region.

This LEIP funding initative is a significant step forward in delivering Kestrel’s emissions reduction targets as it continues to sustainably supply the steelmaking industry, Kestrel says.

Chute Technology reduces coal mine downtime with self-cleaning solution

Coal technology, Mining equipment, ,

An Australian coal mining operation is benefitting from a new coal chute with self-cleaning flow surfaces to radically reduce downtime from approximately 700 minutes per month to just 10.

Material flow experts, Chute Technology, were called in to an Australian coal mine where a chute had large impact angles at high speeds, causing unnecessary blockages and spillage, and contributing to downtime while these are cleared, the company said.

“These blockages amounted to 1,415 minutes of downtime over a two-month period,” Chute Technology Materials Handling Engineer, Gian Naldi, said.

“This site has highly cohesive coal, due to high clay content. Blockages were forming too easily in areas within the chute with large impact angles,” he said.

Chute Technology estimates that the 1,415 minutes of downtime would equate to approximately 48,000 t of lost production of coal, while blockages were being cleared.

“In an operation that produces more than 11 Mt per annum, reducing this lost production makes a significant difference,” Naldi said.

Chute Technology worked with the coal mining company to design a modular coal chute solution that would fit within the existing structural boundaries, to minimise disruption to operations.

“Our solution involved a continuous flow path, without free fall of material, or areas of significant impact,” Naldi said. “This created a ‘self-cleaning’ flow surface that didn’t block, even with the cohesive coal.”

With the chute installed, Chute Technology measured downtime over the next two months, and recorded approximately 20 minutes, a sizeable reduction from the 1,415 minutes in the prior two months.

“This is an outstanding result and will begin to pay for itself as throughput increases significantly without the blockages and spillage,” Naldi said.

“One of the contributing factors to the success of the chute is that installation was considered during the design phase. We worked closely with the fabricators and installers, where we all contributed to finding an optimum solution.”

For a chute handling highly sticky coal, Chute Technology considered impact angles, flow speeds and momentum throughout the materials handling process.

“Designing these characteristics in the optimum way created a self-sweeping action within the chute, meaning that buildup was minimised,” Naldi said. “We used asymmetric shapes to steer the material through the building’s existing structural elements to load the conveyors effectively, without the need for re-engineering.

“And because of the preparation and collaborative approach to design and installation, the chute was able to be fully assembled ahead of the scheduled time.”

Chute Technology utilises Discrete Element Modelling and Finite Element Analysis as part of the design process cycle to simulate real-world conditions and modify designs to achieve the best and most cost-effective outcomes.

“This customer project is an ideal example of Chute Technology’s problem-solving expertise helping with material flow issues, delivering economic benefits and increasing productivity for the customer,” Naldi said.

BEUMER Group to design and supply overland conveyor for Warrior Met Coal’s Blue Creek mine

Bulk handling, Coal technology, Mining equipment, Mining services, Steel and iron ore, , , , , , , ,

BEUMER Group has been selected by Warrior Met Coal to support the expansion of Blue Creek mine, a new state-of-the-art underground longwall mine producing steelmaking coal.

The extracted coal is to be processed on surface in a coal preparation plant before being moved over 14 km to a train loadout station.

The BEUMER Group recently secured the order from Warrior to design and supply a single-flight curved overland conveyor for this 1,500 short ton per hour transport system.

Daniel Schmillenkamp, CEO of BEUMER Group Canada, said: “In cooperation with Warrior, we addressed the project-specific challenges. The design and implementation are a testament to our commitment to innovation and customer-centric solutions.”

The project presented some challenges due to the difficult and hilly terrain of the proposed transport corridor, BEUMER says. To find the most efficient solution, Warrior explored various transportation methods, including rail, troughed and pipe conveyor systems. Over the past 12 months, BEUMER Group worked closely with Warrior to identify the most economical and technically feasible transport method and optimal route, resulting in a single conventionally troughed conveyor with 18 horizontal curves.

Philip Saunders, Senior VP Engineering at Warrior, said: “BEUMER’s holistic approach and our very close working relationship allowed us to expedite the design and procurement phase to move toward the completion of this time-sensitive project at a pace rarely seen in the coal or mining industries.”

BEUMER is responsible for engineering and procurement of all structural and mechanical components and multiple E-Houses with VFDs, MCCs and PLC control systems. The conveyor system will use nine load-sharing drives to limit the overall belt tension.

BEUMER’s Director of Sales, Peter Sehl, said this project uses innovative and proprietary conveyor engineering and design tools to support the fast construction schedule. “With over 5,000 tons of steel for ground modules and elevated sections, 47% of the conveyor flight will be elevated to avoid natural features and minimise earthworks,” he said.

The overland conveyor is expected to be operational by the end of 2025.

With the addition of Blue Creek, Warrior expects to increase its annual High Vol A production by 4.8 million short tons; enhance its already advantageous position on the global cost curve; drive its cash costs further into the first quartile globally; improve its profitability and cash flow generation; and cement its position as a leading pure play steelmaking coal producer, the coal producer says.

Anglo American introduces teleremote dozing at Capcoal Complex

Automation, Coal technology, Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , , , ,

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.”

NRW’s Golding to take contract mining reins at Stanmore’s South Walker Creek mine

Explosives and blasting, Mine operation news, Mining services, Steel and iron ore, , , , , , , ,

NRW Holdings Limited’s wholly owned subsidiary, Golding Contractors Pty Ltd, has executed an agreement to acquire the mining services contract, associated fleet and transfer of the employees that HSE Mining Pty Ltd has deployed to Stanmore Resources Limited’s South Walker Creek (SWC) mine site, in Queensland, Australia.

The transaction value of A$85 million ($56 million) less assumed employee liabilities of approximately A$15.3 million, will be funded via NRW’s asset finance facilities.

The transaction will see Golding employ approximately 550 HSE personnel and operate the heavy mining equipment presently deployed at SWC. The mining services contract to be novated to Golding as part of the acquisition is expected to generate annual revenue of approximately A$250 million, and unless further extended by agreement between Golding and Stanmore, expires in August 2025.

South Walker Creek is an open-cut mine 35 km west of Nebo in Queensland’s Bowen Basin. The mine has been operating since 1996 and adopts a multi-bench, open-cut mining method uising a dragline, and truck and hydraulic excavators. With a mine life of 25-plus years, South Walker Creek produced 4.9 Mt of high-quality low volatile PCI coal in the 2021 financial year. Stanmore Resources acquired BHP’s 80% interest in BMC in May 2022, becoming the operator of South Walker Creek.

Jules Pemberton, Managing Director and CEO, said: “I am delighted that NRW has been successful in acquiring the HSE Mining assets and inventory and securing the novation of the mining services contract with Stanmore at South Walker Creek. NRW, through our Golding and Action Drill & Blast businesses, has had a long association with Stanmore and I look forward to our teams continuing to deliver industry leading services. I also look forward to welcoming the HSE personnel into the Golding and broader NRW team.”

HSE and Golding are working through the transition arrangements, with financial close to occur at the end of July 2024.

Australian Pacific Coal puts in equipment orders for Dartbrook restart

Coal technology, Mine operation news, Mineral project development, Mining equipment, Steel and iron ore, , , , , ,

Australian Pacific Coal Limited (AQC) has commenced drawdown of its debt facility, and is now embarking on a plan to re-start mining at the Dartbrook coal operation, in New South Wales, Australia, with an aim of producing first coal in the middle of 2024.

The company recently executed a three-year $60 million debt facility with Vitol Asia Pte Ltd to fund this redevelopment.

This has allowed Australian Pacific Coal, as the Dartbrook operator, to place firm orders for critical equipment and long lead items, including the remaining sections of the underground conveyor system and materials for the refurbishment of the above ground coal handling and preparation plant and train load out.

Crews have been recruited and will initially complete the construction works and subsequently resource the first two production panels. Production equipment has been secured for the first panel and equipment for the second panel is now on site.

AQC and its partners are currently evaluating a range of options to accelerate the restart work program and ramp-up period within forecast expenditure limits. The acceleration strategy that AQC will pursue with its partners is based on optimising the mine plan to allow for an additional continuous miner to operate in a second panel earlier than originally planned. The modifications are expected to result in increased production in year one.

Encouraged by earlier studies, AQC will also further examine the potential of Dartbrook mine to produce commercial quantities of semi-soft coking coal under the current mine plan, noting the substantial premium metallurgical coal is currently trading at when compared with thermal coal.

Australian Pacific Coal’s Interim CEO, Ayten Saridas, said: “This is an exciting period for AQC and the Dartbrook mine which is a high quality asset that has been in care and maintenance since 2006. Since we announced the completion of the Dartbrook restart funding package in January, we have focused on moving the project forward on multiple fronts. With the funds now fully available for the development, orders have been placed for critical equipment and long lead items, and we have begun recruiting additional key personnel.

“Our primary focus will be to bring forward certain ramp-up activities to allow us to commence mining operations in a second panel much earlier than originally planned. We remain confident that this will translate into an increase in production volumes in the project overall.”

AQC operates the Dartbrook coal mine, in the Hunter Valley, within the Dartbrook Joint Venture company, which comprises Australian Pacific Coal Limited (80%, via subsidiaries) and Tetra Resources Pty Ltd (20%, via subsidiaries).

The Dartbrook site has access to world-class infrastructure, a skilled workforce and support industries used by major mining companies in the region, AQC says. Dartbrook produces a high-quality thermal coal (Newcastle specification) that is typical of the Hunter Valley with the potential to produce some semi-soft metallurgical coal.

Golding Contractors extends stay at CS Energy-owned Kogan Creek mine

Coal technology, Mine operation news, Mining services, , , , ,

NRW Holdings wholly owned subsidiary, Golding Contractors Pty Ltd, has signed a four-year extension to the existing Contract Mining Agreement (CMA) it has in place with Aberdare Collieries Pty Ltd, a subsidiary of CS Energy Pty Ltd.

Under the terms of the CMA the term is extended until June 30, 2030, with an option for CS Energy to extend the contract up to a further two years.

The value of the four-year extension including mine plan scope changes is approximately A$245 million ($162 million).

Golding will supply all major equipment under the CMA with the extension requiring new capital spend of approximately A$10M in its 2025 financial year. It will also continue to employ up to 100 people at the project, most of which live in the local Chinchilla or broader southeast Queensland regions.

Aberdare Collieries owns the Kogan Creek open-cut mine in the Surat Basin of southern Queensland. The mine supplies their adjacent Kogan Creek Power Station with approximately 2.5 Mt/y of coal.

Golding undertook civil works for the initial construction of the mine before becoming the mine operator in 2006.

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.