Tag Archives: coal

Batchfire invests in six new electric drive Komatsu 930E-5 trucks for Callide mine

More than 60% of Batchfire Resources’ pre-strip mining fleet is now made up of electric drive dump trucks, after six new Komatsu 930E-5 ultra-class vehicles arrived at its Callide coal mine operations in Queensland, Australia.

The latest investment in six haul trucks maintains Batchfire’s policy of growing the proportion of electric drive machines within its overall fleet capacity, it said. The two draglines operating at Callide in central Queensland are electric powered.

Passing the 60% electric drive milestone significantly reduces the amount of carbon dioxide generated during pre-strip mining activities, according to the company. The new Komatsu 930E-5 dump trucks come with around 8% less emissions intensity than the older diesel-mechanical models being phased out, it said.

In addition, these new dump trucks will enhance productivity and deliver improved safety outcomes for Batchfire’s team of experienced operators, it said.

“Continuing to reduce the Callide Mine’s environmental impact and carbon footprint is a key priority for Batchfire Resources,” Allan Fidock, CEO of Batchfire, said.

“Batchfire is an agile business which places sustainability at the heart of our operations. We are constantly seeking new opportunities to reduce our overall emissions and this is reflected in our procurement policy.

“The Komatsu 930E-5 provides us with clear advantages in emission control, productivity and safety so investing in this market-leading model is the right solution for our business.

“In addition to these new machines, we expect to add a further three 930E-5s in the coming months, allowing us to phase out some of our older diesel-mechanical drive models.

“Maintaining our fleet’s high standards of reliability and efficiency, while increasing the size and capacity of the machines we operate, will result in productivity gains that benefit our entire business and emissions reductions that benefit the world in which we operate.”

Fidock emphasised that the procurement of diesel-electric drive machines was one aspect of a broader sustainability strategy at Batchfire.

“Our dedicated ESG and Development team is working with the board to strengthen ESG practices and identify opportunities to further reduce our emissions,” he said.

“This includes progressing the renewable energy projects, which are a central pillar of our transitional energy business model.

“We have also reduced fuel consumption across the diesel-mechanical drive and diesel-electric drive pre-strip and coal mining fleets by investing in MaxMine and other smart solutions. This data-driven approach to operations has improved our operations efficiency.”

MaxMine’s sensors and cloud-based processing system (MaxCube) extract and process 10,000 times more data from mining equipment and operator behaviour than incumbent systems, according to the software company, driving efficiencies and productivity.

The coal that Batchfire produces for the domestic and export market is the lowest fugitive emission energy coal mined anywhere in Queensland, according to the company, helping to reduce greenhouse gas emissions in power generation within Australia and overseas.

Bravus reinforces Carmichael local supplier relationship with BCF Concreting contract

Bravus Resources has added BCF Concreting to its list of suppliers at the Carmichael coal mine, in Queensland, Australia.

The 100% Indigenous-owned business has been engaged to supply concrete to the operation, with the contract adding to the more than A$1 billion ($743 million) that has been paid to regional Queensland contractors and businesses since construction on Carmichael began.

Michael Davis, Managing Director of BCF, said the company was prepared to deliver extra concrete at short-notice for the mine.

“We were able to step in and work with Bravus at short notice because our technology enables us to both mobilise quickly and mix the right kind of concrete remotely and with precision,” he said.

“We had a team of six and one of our three volumetric mixing trucks on Bravus’ site within a few days and producing concrete not long after that.

“I have to say the Bravus commercial team was also great to work with, and the smoothness of that contracting process, together with the advantages of our new-to-industry technology, meant we were able to get this job done so efficiently.”

Bravus Mining and Resources CEO, David Boshoff, commended Davis and his Rockhampton-based team on their work.

“The Rockhampton region is a world-class mining service centre, but BCF Concreting blew us away with their professionalism, mobilisation time and technology-focused solutions,” he said.

“Responsiveness and on-time delivery is so important for us as we put the finishing touches on the construction, testing and commissioning phase of the project and move into full operations.”

BCF Concreting has a 30-year history and relocated to Rockhampton in 2019, drawn to the region by the promise of work with major projects.

A Torres Strait Islander, Davis said the company had built strong partnerships with Central Queensland’s Traditional Owner groups but had been waiting for the right opportunity to prove their capabilities on a major construction or civil project.

“We had done some subcontracting work on the Carmichael Project before but to be engaged by Bravus directly is a big step forward,” he said.

“We work with technology that’s new to the concreting industry, so part of what we do is about educating clients that the way it’s been done in the past isn’t necessarily the best way.

“Our volumetric mixers are similar to a mobile batching plant mounted onto a truck – we can get to site and start producing concrete within half an hour.

“We are getting traction, though, and as well as working with Bravus, we recently secured a long-term precast supply contract for a pipeline project in Central Queensland.

“The hope is as we win more major project work we can look at relocating the manufacturing arm of our business to Central Queensland to boost skilled employment for First Nations people even further.”

Carmichael has the capacity to produce 10 Mt/y of coal.

Komatsu releases updated Joy 02ESV battery-power scoop for soft-rock mines

Komatsu has redesigned its Joy 02ESV soft-rock scoops with 240 V of battery power and OptiDrive technology to improve operator comfort and offer a longer operating time between charges.

Coming in three different models – 02ESV36, 02ESV56 and 02ESV60 – the scoops offer bucket capacities of 3-5 cu.m and maximum payloads of 18.2-28.7 t. The smallest scoop, the 02ESV36, is suited to seam heights of 91-160 cm, while the largest scoop, the 02ESV60, has a recommended seam height of 142-211 cm.

The OptiDrive technology can improve reliability, boost operator productivity, improve motor performance and help reduce maintenance costs, according to Komatsu. It is also easier to maintain and troubleshoot because it has fewer cable runs.

Designed to help minimise downtime, these scoops have new electronics that eliminate switches, and the colour display provides real-time operational and fault information to keep operators informed. Additional drive input modules allow the OptiDrive control system to interface with third-party proximity detection systems.

With less heat and noise compared with diesel power, the 240 V battery power contributes to improved working conditions. These Joy scoops also have improved motor efficiency for increased motor life and enhanced tramming, while improved ergonomics help keep operators more comfortable, Komatsu said.

To provide increased power and reduced downtime in the most demanding applications, the scoops are equipped with Dana drive axles configured specifically for the application. For durability and longevity, the centre section has been redesigned and includes heavy-duty pivot bearings and pins. The frame is rigorously engineered for reliability and transporting heavy payloads, according to the company.

Liebherr Indonesia hands over R 9100 excavator to PT Karunia as it cements relationship

Liebherr Indonesia has recently entered its new business relationship with Indonesia-based mining contractor, PT Karunia Armada Indonesia, through the handover of an R 9100 hydraulic excavator at the Tabang mine site in East Borneo.

Another R 9200 mining excavator is set to start operating in April as part of the agreement.

Liebherr Indonesia and PT Karunia Armada Indonesia recently celebrated the symbolic handover of an R 9100 mining excavator, with the ceremony also marking the beginning of a long-term partnership between the two companies.

PT Karunia Armada Indonesia is currently working on a project at the Tabang mine site and aims to increase coal production in line with the mine owner’s requirements.

Danang Wiyana, Project Manager of PT Karunia Armada Indonesia, said he was amazed at how easily and efficiently Liebherr Indonesia’s technicians were able to assemble the machine, with Liebherr saying good cooperation between the two companies’ field teams during assembly strengthened the relationship.

Untung Suhendri, one of Liebherr Indonesia’s technicians, said: “It was an honour to work hand-in-hand with Karunia. We worked together as one team and managed to get the machine up and running within the expected time frame.”

The R 9100 mining excavator that started operating right after the assembly convinced the customer through its performance, according to Liebherr.

Wiyana added: “We are more than satisfied with our first Liebherr mining excavator as we have always met our production targets since it was commissioned.”

The R 9100 succeeded in loading over 100 t more than what was initially expected of the unit, according to Liebherr.

Golding wins four-year extension at Kogan Creek coal mine

Golding Contractors Pty Ltd has signed a contract with Aberdare Collieries Pty Ltd, a subsidiary of CS Energy Pty Ltd (CS Energy), to extend the current Contract Mining Agreement (CMA) at the Kogan Creek Mine in Queensland, Australia, to beyond June 30, 2022.

Under the terms of the CMA, the term is extended four years until 30 June 2026, with an option for CS Energy to extend the contract for up to another four years, the NRW Holdings subsidiary said. The contract value for the initial four-year extension is around A$150 million ($110 million).

The contract extension represents the third mining contract term and life-of-mine to date for Golding and CS Energy at Kogan Creek, with Golding performing the civil works in 2006 before mining commenced in 2007.

Kogan Creek is an open-cut mine located in the Surat Basin of southern Queensland. The mine supplies the 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.

Under this new arrangement all major plant and equipment will be supplied by Golding requiring a total new capital spend of circa-A$11 million in the first year. All the remaining fleet required is currently operating on site and is Golding owned.

Golding will continue to employ some 70 people at the mine, most of which live in the local Chinchilla or broader southeast Queensland regions. The scope of work includes: mine design and planning, drilling and blasting, overburden and parting removal as well as selective coal mining from over 30 different plies to ensure coal meets strict specifications.

NRW CEO & Managing Director, Jules Pemberton, said: “This extended agreement is the longest continuous contract in Golding’s proud history. Golding has now successfully negotiated four contract extensions with four different clients in the last six months demonstrating the business’ goal to work with our clients to deliver sustained value.”

Metarock set to leverage competitive contractor advantage

Mastermyne’s contract mining growth ambitions became very clear in September when it proposed a buyout of contractor PYBAR Mining Services in a deal valuing PYBAR equity at A$47 million ($35 million).

The deal, which has just completed, sees Mastermyne, up until this point a company focused on the Australian coal sector, expand into the domestic hard-rock space through exposure to PYBAR’s gold, copper, zinc and lead-related revenues. In the process, it has been restructured under Metarock Group Limited.

The transaction is expected to create a leading Australia-based diversified mining services business with material scale, Mastermyne said, adding that the combined group will have a A$1.7 billion-plus order book and an active tender pipeline of A$2.7 billion-plus after completion. PYBAR will continue to operate as an independent business unit within the group with the existing management team.

Tony Caruso, Managing Director of Metarock (pictured), said the company had identified some time ago the need to diversify into “adjacent markets” to ensure its business retained “resilient and sustained earnings”.

“To be clear, we are very supportive of the coal industry, and we will continue to grow our coal business,” he told IM. “What we do know from 30 years of experience of operating in this market is it is very cyclic.”

When coal prices are strong, it is a great market to be a contractor, Caruso explained. Yet, when prices come down, contractor workforces or scope reductions often follow as mine owners look to cut their “flex costs”.

A diversified Metarock would be able to better cope with such a market dip.

“The theory (behind the PYBAR acquisition) is that when coal is down, other commodities will be up,” Caruso said.

In addition to increased commodity diversity, there are also a huge number of synergies that could be realised with the combination of the two companies.

PYBAR offers raiseboring services that can be used in coal, while Mastermyne offers ground support services (through its recently acquired Wilson Mining business) that can be used in the hard-rock space.

Both have registered training organisations that could share industry best practice across sectors, too.

What Mastermyne learned in the coal boom when it developed the “clean skin” training program, using a simulated underground coal mine with a bespoke program to train people for working in an underground coal mine, may have relevance in the hard-rock sector given the recent ‘boom’ perceptions, according to Caruso.

There are also more specific technology synergies that could benefit both hard-rock and soft-rock customers.

PYBAR has embraced automation and digitalisation with, for example, teleremote loading operations at the Dargues gold mine in Western Australia (pictured below, credit: PYBAR) and the use of Digital Terrain’s Simbio data entry and processing solution on its mining fleet.

Mastermyne has been running a similar project where real-time data is “taken off” machinery and, through proprietary software, converted into real-time dashboards for the operators to track performance against operational targets. Mastermyne used such a system with great success at the Narrabri underground operation, owned by Whitehaven Coal.

Caruso said on the latter: “We were looking at building out that software into other areas of our business – we used that in our production machines when we were cutting coal, but we were starting to look at bringing that across to a lot of the other support services we provide to customers as well.”

Should PYBAR come on board, Simbio could end up being used on its coal development machines, according to Caruso.

It works the other way round, too, with Mastermyne’s proximity detection expertise in coal having applications in the hard-rock space.

“Not only are these solutions OEM-agnostic; they are sector-agnostic,” Caruso said. “The same technology is applicable for coal and metalliferous markets.”

The benefits of the business combination do not stop here.

Growth in the coal space has mostly been tied to sustaining capital projects – the overall production levels have remained flat, if slightly increased – whereas, in the hard-rock sector, brownfield and greenfield projects have been the order of the day, catalysed by higher prices and projections of increased demand.

This means the pressure dynamics around skilled labour are slightly different between the two.

Mastermyne has, to this point, benefitted from the ongoing trend of majors exiting their thermal coal businesses to deliver on ambitious ESG targets, with smaller companies taking on these assets and outsourcing work to contractors. Mining contracts at Crinum (Sojitz Blue Pty Ltd) and Cook (QCoal) in Queensland are two examples of the company taking advantage of this trend.

This type of sustaining growth capital expenditure in the coal sector is very different to the greenfield growth witnessed in 2010-2012, Caruso said. “The significant volume increase in greenfield expansion, which drove real pressure on labour, is not there,” he said.

In the hard-rock space, the dynamic is much more reminiscent of that boom a decade ago.

“There are a lot of new projects in Western Australia opening up so there is a lot more pressure on resources because the demand is far outstripping the supply in the hard-rock labour pool,” he said.

While there has not, typically, been a transfer of labour between the coal and hard-rock contracting sectors, if Metarock is able to facilitate such a shift, it could gain a competitive advantage over peers scrabbling for talent that are focused wholly on the hard-rock mining space.

“We have a workforce of 2,000-2,500 people at the moment, and we want to have a fluid workforce that can move across sectors,” Caruso said. “This will enable us to send our best people to projects to make sure we replicate good performance at these operations, regardless of where they are, geographically, or what type of work they are doing.”

Not only could this provide Metarock with the ability to shift employees between sectors, but it could also allow them to offer employees long-term security beyond the current Australian coal demand horizon.

Thiess to continue mining at PT Wahana Baratama Mining coal mine in Indonesia

Thiess says it has secured a three-year A$220 million ($164 million) contract renewal to continue providing mining services at PT Wahana Baratama Mining’s coal mine in South Kalimantan, Indonesia.

Having operated at the project since 2007, Thiess will provide full mining services for Wahana, which is owned by Bayan Resources, including mine planning, environmental and water management, drill and blast, and mining and pit hauling services, it said. The contract renewal commences from November 2021.

Thiess CEO and Executive Chairman, Michael Wright, said: “This extension builds on our long-term partnership with Wahana and recognises Thiess’ ability to deliver sustainable and competitive mining solutions tailored to their operational needs.”

Thiess Executive General Manager Asia, Cluny Randell, said: “We’re proud to continue delivering value at Wahana, a unique operation where Thiess has mined two adjoining mines for two different clients. Our team is focused on continuing to optimise resource recovery and extending the mine’s reserves to deliver long-term value for Wahana.

“Alongside this, we’re looking forward to building on our COVID-19 vaccination efforts, extending our employee and family vaccination program into the community next month.”

Bayan Resources says the Wahana Baratama mine currently produces around 1-2 Mt/y of high calorific value bituminous quality coal.

Ben’s Creek to start up met coal mine with highwall miner and contract mining pact

Bens Creek Group Plc, the owner of a namesake met coal mine in North America, is pleased to announce that its wholly owned subsidiary, Ben’s Creek Operations LLC, and Mega Highwall Mining LLC have entered into a contract mining services agreement.

MHW will be responsible for the production of BCO’s metallurgical coal reserves for an initial 12-month period, the London-listed company said.

The contract allows for a minimum production capability of 40,000 tons (36,287 t) of coal per month, which equates to 480,000 tons/y. MHW will deploy a single highwall miner (a Superior Highwall Miner, the company confirmed), which is designed to meet the target sales volumes disclosed in the recently signed offtake agreement between the company and Integrity Coal.

MHW and BCO have agreed a fixed price per ton of coal produced for the duration of the contract period. The contract price negotiated is in line with the company’s working capital projections, despite the uptick in demand for contract mining services and high wall mining equipment in the US, it said.

The contract allows MHW to mobilise its equipment and personnel to commence production in December 2021.

MHW, founded in 2015, is a Kentucky-based company, who operate a range of industry leading specialist highwall mining systems, comprising of ADDCAR, Superior Highwall Miners and Caterpillar.

Adam Wilson, CEO of the company, said: “We are delighted to have secured our first highwall miner to meet our expected production target. The agreement with MHW enables us to commission a second highwall miner to enable the company to further expand its metallurgical coal production output.

“The nature of highwall mining is that the recoverability of metallurgical coal via direct mining into the coal seams is considerable, which allows for production to be targeted to seams which have a higher level of recoverability than traditional mining methods.”

Ben’s Creek is set over 10,000 acres (4,047 ha) in the Central Appalachian Basin of the eastern US and located in the southern part of West Virginia and eastern edge of the Commonwealth of Kentucky.

Historically metallurgical coal has been produced from the property. Ben’s Creek has proven recoverable coal reserves of 2.34 million tons (comprising the coal reserves at the Lower Alma and Pond Creek mines) and has coal resources of 17.2 million in-place tons with a potential of a further 30.9 million tons, it says.

Golding captures more coal contracts at Curragh, Broadlea

Golding Contractors, a subsidiary of NRW Holdings Limited, has continued to add new work to its portfolio, signing an agreement to introduce a seventh fleet at the Curragh coal operations in Queensland, Australia, and re-establish open-pit mining at the Broadlea pit, also in Queensland, for a member of the Fitzroy Australia Resources group of companies.

Back in August, Golding signed a letter of intent with Coronado Curragh, a wholly-owned subsidiary of Coronado Global Resources, to extend the current six fleet mining services contract beyond September 30, 2021. Negotiations to seal a binding agreement related to this LoI are ongoing.

The contractor has now signed a Letter of Direction with Coronado that would increase the mining plant at the Curragh Main Mine through the introduction of a seventh fleet for a 12-month period, commencing February 1, 2022. This is in addition to the current mining operations provided by Golding under the existing mining services contract.

Meanwhile, Golding has also signed a contract with a member of the Fitzroy Australia Resources group of companies to re-establish open-pit mining in the Broadlea pit for a period of six months, with work commencing in early November.

Fitzroy says of Broadlea on its website: “Broadlea is an open-cut mine located circa-7 km north of Carborough Downs, sharing key surface infrastructure including the coal handling and preparation plant and train load out facilities. Fitzroy has periodically operated Broadlea as a satellite operation during periods of favourable market conditions. The operation is currently on care and maintenance and Fitzroy continues to assess opportunities to restart production from the mine.”

Combined, this work is valued at approximately A$60 million ($45 million), employs 130 people and will be performed using existing Golding assets and hired fleets, the company said.

Komatsu to help PIMS Group with Millennium and Mavis Downs underground transition

A new agreement between Komatsu and PIMS Group, a north Queensland-based mining services operator, could help set a benchmark for extending the life of multiple Queensland coal mines, the pair say.

PIMS Group was recently awarded a five-year contract to convert the idled open-pit Millennium and Mavis Downs coal mines, west of Mackay, Queensland, to underground operations, which could ultimately result in an estimated 1.2 Mt/y of incremental coal extraction. Komatsu will sell PIMS Group new mining equipment for the project, and will provide a comprehensive maintenance, parts, rebuild and engineering support service to ensure the companies’ joint objectives are effectively supported, it said.

Komatsu will provide a full-time preventative maintenance team at the mine sites to help maximise the operation of the eight pieces of equipment now on order, including two 12CM27 continuous miners, four 10SC32 shuttle cars, one feeder breaker and one multibolter. Delivery of the Komatsu machines is due in mid-2022 to coincide with PIMS Group’s conversion of the Mavis Downs site to underground operation, which will be followed soon after by conversion of the Millennium site.

Millennium and Mavis Downs are owned by MetRes, a 50:50 joint venture between Stanmore Resources and M Resources. M Mining, a subsidiary of M Resources, is the joint venture manager and operator.

Rob Rogers, Vice President of Underground Soft Rock for Komatsu in Australasia, said the success of the three-way venture with PIMS Group and MetRes depended on total confidence of each partner to reliably deliver in its area of expertise. Rogers said the arrangement aligns well with Komatsu’s focus on ‘creating value together’, an initiative intended to secure long-term customer solutions, particularly to the benefit of society and communities.

The MetRes rejuvenation alone has the potential to create up to 100 mine construction jobs and result in more than 125 direct full-time mining jobs, according to the companies.

MetRes Chairperson, Matt Latimore, says a partnership and risk-sharing approach, together with the potential for substantial local employment opportunities, had been paramount in PIMS Group winning its bid to operate the infrastructure of both mines.

MetRes has initially worked to reopen the mines using auger and open-pit methods, with production of first coal already achieved in September 2021. According to MetRes, underground expansion will be economically achieved through the mines’ existing highwalls, yielding low-ash, high-quality metallurgical coal used in the production of steel globally.

Rehabilitation of the open-pit sites will coincide with the switch to underground operations. With underground activity, Millennium and Mavis Downs share a current predicted additional mine life of 12 years, producing 13.9 Mt of metallurgical coal.

PIMS’ contract with the mines’ owners is the largest undertaken by the north Queensland group.