Tag Archives: Contract Mining Division

Perenti’s Barminco to carry out development works at Evolution Mining’s Ernest Henry mine

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Australia-based Perenti has provided an operational update and an upgrade to its financial year 2023 guidance to end-June 2023, which includes confirmation of a new contract for Barminco at Evolution Mining’s Ernest Henry mine in Queensland and a variation to expand its work scope at Regis Resources’ Garden Well mine in Western Australia.

The positive momentum noted in the operational update released on November 14 has continued as Perenti heads toward the end of the calendar year, with this momentum expected to continue into 2023, it noted.

“Since the release of the most recent operational update Perenti has secured improvements to commercial conditions across several Australian and African projects, including retrospective rate adjustments in relation to work that has previously been completed,” it said.

“These rate adjustments are the key catalyst in providing a further guidance upgrade one month after our previous upgrade.”

The contract at Ernest Henry (pictured) is for development work at the underground gold and copper mine. As Barminco transitions out of MMG’s Dugald River mine – where it has been carrying out development and production works – early next year, employees and capital resources from Dugald River will be mobilised to the new contract at Ernest Henry, it said. Underground development work at Dugald River, meanwhile, is to be taken on by Redpath Australia.

The Garden Well extension follows the commencement of underground mine development at the deposit in 2021.

On November 14, Perenti updated its FY23 guidance to forecast FY23 revenue of between $2.6-$2.7 billion ($1.7-1.8 billion). With the announcement of improved commercial conditions, and in consideration of securing work at Ernest Henry and scope growth at Garden Well, Perenti now forecasts that the company’s FY23 revenue will be between $2.7-$2.9 billion.

Mark Norwell, Managing Director and CEO of Perenti, said: “In addition to generating greater returns in FY23, we are focused on continuing to pursue business and project optimisation initiatives which will facilitate the delivering our 2025 strategy. Our strategy is designed to drive positive momentum in shareholder value well into the future. Perenti’s outlook is underpinned by our world-class Contract Mining Division, and the continued development of our Mining Services and idoba divisions. Our focus on generating enduring value for our people, clients and communities, will ensure we continue to deliver sustainable returns for our shareholders.”

PT Kaltim Prima Coal feels the effects of AECI IntelliShot electronic blasting initiation system

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Having previously relied on conventional non-electric initiation systems, Indonesia-based PT Kaltim Prima Coal (KPC) has turned to AECI Mining Explosives’ IntelliShot® electronic blasting initiation system to improve the safety and efficiency of its operations.

Located close to Sangatta and Bengalon, East Kalimantan, Indonesia, KPC operates one of the largest open-pit mines in the world with coal resources of 9,275 Mt. The mine employs load and haul operations within its numerous pits, which are managed by two mining divisions: Mining Operation Division (MOD) and Contract Mining Division (CMD).

KPC commenced with coal production in 1992 and today moves approximately 500 million bank cubic metres of overburden per year, which allows the production of 60 Mt of coal. About 80% of the overburden requires drilling and blasting to enable efficient excavation, AECI says.

The mine has traditionally used conventional non-electric initiation within its CMD area, where AECI Mining Explosives Indonesia (AECI Indonesia) is contracted as the blasting services provider. This method required a lead-in-line to be run from the blast location to the firing position. In 2017, this method of initiation consumed approximately 650 m of lead-in-line per blast location, according to AECI.

High daily production targets set by KPC require multiple locations from where blasts could be initiated safely.

“Whilst this is possible within the strict safety parameters set by the mine, it sometimes requires some clever footwork, especially related to moving expensive capital equipment out of harm’s way,” AECI says. “This cumbersome method isn’t always the most efficient and often result in a loss of production time.”

AECI Indonesia, as the incumbent blasting services provider for KPC CMD since 2009, suggested IntelliShot, the company’s advanced electronic blasting initiation system.

IntelliShot has the capability to initiate one or more initiating systems wirelessly, known as remote firing. This application has the ability to generate much needed efficiencies by only using a short length of harness wire as opposed to the cost of a full lead-in-line when non-electric blast initiation is applied in the same application, the company says.

“Any new application of technology at the mine requires careful planning and demonstration of the ability to safely maintain improvement of these parameters,” it says. “The AECI Indonesia team embarked on a carefully controlled trial to test the applicability of the system and to ensure that KPC gets the full benefits.”

In addition to saving on costly lead-in lines, remote firing through the IntelliShot system offers additional safety benefits such as an advanced security system, the possibility to easily initiate the blast at larger and safer distances, allowance for the blaster to fire from locations that give greater visual security of the blast area during firing, and eliminating potential slap, snap and shoot that is possible with shock tube.

The introduction of remote firing at KPC was performed as a project and carried out in stages in the CMD area of KPC. Focused key performance indicator (KPI) targets agreed by the project team were carefully monitored on a daily basis to ensure the best possible outcome.

The project was conducted in the three CMD contractor pit areas at Sangatta and Bengalon under the management of KPC drill and blast department. AECI Indonesia successfully delivered multiple events of remote firing blasting in all areas. The team also complied with all safety and efficiency KPIs, AECI says.

The average usage of harness wire per remote firing event was around 100 m, compared with 650 m per blast of lead-in-line used in conventional blast initiation and has reduced the cost of blast initiation in KPC CMD by over 50%, AECI claims.

Yuli Prihartono, KPC Drill & Blast Manager, says: “Throughout the trial project of remote firing at CMD pits, AECI Mining Explosives has demonstrated its capability to deliver safe and efficient project to world class operations. Remote firing has successfully delivered quantifiable cost benefits for KPC. We expect AECI Mining Explosives to expand this initiative by introducing remote firing to all blast locations at CMD KPC.”