Tag Archives: copper

Buenaventura and Sierra Metals scale back Peru operations

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Compañia de Minas Buenaventura and Sierra Metals have become the latest companies to scale down activities in Peru following the government’s issuing of a supreme decree and declaration of a national emergency in order to contain the COVID-19 virus outbreak.

These restrictions currently remain in place for a 15-day period, commencing March 16, and have already seen Newmont, Anglo American and Freeport McMoRan scale back operations in the country.

Buenaventura, in accordance with these restrictions and within the framework of the company’s Pandemic Response Plan, as well as local and national health authority requirements and recommendations, says it will limit the activities of its operations to those which ensure functionality of its mine pumping systems, water treatment plants, energy supply, hydroelectric substations, health services as well as safety conditions including backfill and general support, among others.

Sierra Metals, meanwhile, has temporarily ceased mining operations at its Yauricocha mine (pictured), saying it continues to seek further clarity on the declaration and its impact on mining operations in Peru.

Both companies say they are prepared to immediately restart operations once they have received notice from federal and local authorities that it is appropriate to do so.

Buenaventura commented: “All operations and offices have implemented the appropriate travel restrictions, surveillance, monitoring and response plans to reduce the risk of COVID-19 exposure and outbreak, including health screening of contractors, visitors and employees when appropriate.

“In addition, individual operations continually assess the situation as it evolves and have limited external visitors to only those who are considered to be business critical. Each of its operations also continue to monitor and implement business continuity measures to mitigate and minimise any potential impacts of the global outbreak that might emerge on its operations, supply chain, commercial and financial activities.”

Sierra Metals President and CEO, Igor Gonzales, meanwhile, said: “We take the safety of our employees very seriously and have complied with the government’s requests. We have sent 470 staff home from the mine, while an emergency staff of 150 remain at the site.

“Management continues to follow the recommendations provided by the World Health Organization and Peruvian Health Authorities. We continue to monitor and seek clarity on the situation and will update shareholders and the market further as things progress.”

While Buenaventura did not mention its 2020 guidance in the release, it did say there had been no material impact to production or shipment of concentrate from any of the company’s operations to date as a result of COVID-19.

“Additionally, there has been no significant disruption to the supply chain of the company’s operations. Buenaventura’s central headquarters is in frequent contact with all individual operations and associated mine managers to ensure timely updates on the situation and provide any necessary logistical support,” the company said.

Sierra Metals said its guidance remains unchanged at this time, given Yauricocha had been running ahead of budget since the beginning of the year, and the company is ahead on 2020 production tonnage to date.

“Additionally, the mine has approximately 37,000 t of ore stockpiled at its processing mill, which represents more than two thirds of the ore needed by the mill during the disruption period and it can recommence production very quickly.

“Furthermore, the company has the operating flexibility to temporarily run the ore processing mill above the 3,150 t/d capacity, which should help Yauricocha recover lost ore tonnages from this stoppage.”

In addition to Buenaventura and Sierra Metals, Teck Resources announced that Compania Minera Antamina, in which Teck has a 22.5% interest, continues to operate the Antamina mine under an exemption from recently announced government restrictions.

it said critical operations will be maintained by a reduced workforce throughout the 15-day national emergency quarantine period, with appropriate precautions being taken by Antamina to protect its workforce during this “challenging period”.

The company clarified that there had been no confirmed cases of COVID-19 at the mine site and, assuming no further adverse developments in connection with COVID-19, any temporary reduction in production was expected to be recovered in line with existing 2020 guidance.

NRW Holdings to upgrade Olympic Dam airport

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NRW Holdings’ wholly-owned subsidiary, NRW Contracting, has been awarded an airport upgrade contract with BHP at its Olympic Dam copper-gold-uranium project, in South Australia.

The scope of works includes two separable portions:

  • Airside works – includes bulk earthworks, pavement construction and drainage works for the construction of a new 1,860 m long runway and refurbishment of the existing taxiway and extension of the apron areas; and
  • Landside works – includes reinforced concrete works, structural steel and modular structures and all services for the upgrade of the existing terminal building and the surrounding infrastructure.

The new contract value is circa-A$48 million ($28 million) and is expected to have a duration of around 37 weeks with works commencing in late March.

The project will have an expected peak workforce of around 140 (including subcontractors), according to the company.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is delighted to be awarded this contract at Olympic Dam following the successful acquisition of the BGC Contracting business.

“NRW has a long history with BHP in their iron ore, coal and nickel divisions but this contract marks the first project for the copper operations. I look forward to the safe and successful execution of the works.”

Vale to ramp down Voisey’s Bay nickel mine for a month

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Vale has become the latest miner to react to the COVID-19 virus outbreak, saying it has taken the decision to ramp down its Voisey’s Bay nickel mining operation, in Canada, and place it on care and maintenance for a period of four weeks.

The move is a precaution to help protect the health and wellbeing of Nunatsiavut and Innu indigenous communities in Labrador in the face of the COVID-19 pandemic, the company said. This is all part of the company’s plans to safeguard its employees, businesses and communities surrounding its operations from the threats posed by the outbreak.

Other miners such as Newmont, Anglo American and Rio Tinto have also reacted to the virus outbreak by either slowing down development projects (Oyu Tolgoi Underground and Quellaveco) or ramping down existing mines (Yanacocha).

Vale said: “Although none of our employees has tested positive for coronavirus at any of Vale’s global operations, Vale has taken this preventive action because of the unique remoteness of that area, with fly-in and fly-out operations, with higher exposure to travel.”

The company said it will work together with the communities and authorities to ensure its operations do not act as a “catalyst to inadvertently introduce the virus in these communities”.

Operations at Vale’s open-pit mine and concentrator at Voisey’s Bay in Labrador began in 2005. This 6,000 t/d facility produces two types of concentrate: nickel-cobalt-copper concentrate and copper concentrate. Nickel concentrate produced at Voisey’s Bay is currently processed at the hydrometallurgical processing facility in Long Harbour, Newfoundland.

While the mining operation will shut down, the Long Harbour Processing Plant (LHPP) will continue to operate, Vale said. Nickel and cobalt production should not be affected given the availability of stockpiled concentrates to feed the LHPP well past the four-week care and maintenance period, but copper concentrate production at site will be reduced proportionally in line with the period of the mine stoppage (Voisey’s Bay produced 25,000 t of copper concentrate in 2019), it said. The decision also impacts on the Voisey’s Bay Mine Expansion project, which is currently underway to transition to underground operations.

Vale also said that, due to travel and equipment transportation restrictions as a result of the COVID-19 outbreak, it is revisiting its plans for the Mozambique coal processing plants stoppage. The halting of operations was previously expected to start in the June quarter of this year, with a new date under evaluation. This could ultimately affect coal production guidance for 2020, it said.

Due to the outbreak, the great majority of Vale’s and third-party employees based in its corporate offices are, from today, working from home. “The measure aims to safeguard our employees, reducing the number of people in the same workspace and the exposure to public spaces, such as buses, subways and elevators,” it said.

COSOL to expand SAP, ERP offering to Ok Tedi Mining

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COSOL is to expand the work it is currently providing Ok Tedi Mining, in Papua New Guinea, with the ASX-listed company set to enhance and optimise the exploitation and efficiencies of its core SAP ERP business systems for the copper-gold miner.

The company is currently providing the miner with special projects work as part of a digital transformation program and support services.

The expanded engagement is valued at approximately A$2.2 million ($1.4 million)/y over two years.

COSOL said: “The expanded engagement builds on the existing support arrangement provided by COSOL for Ok Tedi Mining’s SAP, Ariba, SuccessFactors, core HR and payroll systems.

“In addition to the continued core systems support, COSOL is driving the expanded digital transformation program focusing on digital workspace collaboration and business intelligence.”

A key component of the program will be the sustainment and modernisation of the copper and gold miner’s underlying IT infrastructure to underpin the move to a hybrid cloud platform, COSOL said.

COSOL CEO, Scott McGowan, said: “This expansion of services reinforces COSOL’s engagement approach in being more than simply a technology services provider. While our extensive capability in enterprise asset management generally, and SAP specifically, underpins our operations, it is our understanding of our clients’ business drivers, priorities and the underlying data that supports our clients’ digital transformation.

“Flexibility to adjust to, and provide value in, the dynamic business environments our clients operate continues to be a hallmark of COSOL’s growth and success – both domestically and internationally.”

Black & Veatch helps the water balance at Escondida

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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.

Metso keeps Sierra Gorda analysers on stream

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Metso says it is continuing to deliver a significant performance solutions contract at KGHM’s majority-owned Sierra Gorda copper-molybdenum mine, in Chile.

The services provided include preventive maintenance and calibration of Sierra Gorda’s eight on-stream analysers. The particle size analysers and chemical composition analysers, which are a core portion of the mine’s flotation process, play a vital role in controlling and optimising process performance, according to Metso.

As part of this agreement, Metso’s responsibilities include performing maintenance of the sample handling system, as well as the maintenance and calibration of the analysers. The two-year contract, which commenced in February 2019, includes daily, weekly and monthly tasks as well as stringent key performance indicators, it said. In this performance contract, Metso is evaluated on the ability to increase uptime and measurement accuracy.

Sierra Gorda is a joint venture project currently controlled by KGHM Polska Miedź SA (55%), Sumitomo Metal Mining (31.5%) and Sumitomo Corp (13.5%). Mining processes include ore blasting, loading and transport by haul trucks to a processing plant with an average throughout of 110,000 t/d of ore, where it is subjected to crushing and grinding processes. A plant with molybdenum concentrate separation is used for ore flotation.

Edgardo Chiappa, Plant Manager, Sierra Gorda SCM, KGHM Polska Miedz & Sumitomo Joint Venture, said: “The service provided by the Metso team demonstrates true professionalism, collaboration and teamwork. They have delivered high availability and accuracy of our on-stream analysers, consisting of Courier and PSI technology (both Outotec products). This has allowed for more timely operational decisions, aiding us in maximising process performance.

“We are really satisfied with the work Metso has delivered and look forward to our continued partnership.”

Giuseppe Campanelli, President, Minerals Services, Metso, said the company was proud to have had the opportunity to not only continue, but deepen, its partnership with Sierra Gorda.

“We greatly value this relationship as well as the confidence that they have shown in our ability to service such a key piece of their process,” he said.

Metso has been systematically expanding its service offering in the Chile and Pacific Rim mining markets, with the service organisation’s ability to deliver and sustain performance improvements within the mining industry based on this additional focus on maintenance, technology and process expertise.

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

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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.”

Rio, Turquoise Hill put forward coal power plant option for Oyu Tolgoi

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Rio Tinto says it is continuing to progress options to secure domestically sourced power for its majority-owned Oyu Tolgoi copper mine in Mongolia.

The mining major’s domestic search for energy is part of an obligation to source power by June 30, 2023 under the 2009 Investment Agreement between Turquoise Hill Resources (which owns 66% of Oyu Tolgoi), the Government of Mongolia and Rio Tinto, and the subsequent Power Sector Framework Agreement signed in 2018.

In compliance with these agreements, Oyu Tolgoi LLC has submitted to the Government of Mongolia a feasibility study for the Tavan Tolgoi Power Plant (TTPP) project, which involves building a 300 MW coal power plant. This plant, to be located in Tsogttsetsii soum of Umnugovi province, comes with a total project cost estimate of up to $924 million, pending consideration of certain amounts yet to be finalised, Turquoise Hill said. Rio says this amount is already included in the group capital expenditure guidance of $7 billion in 2020 and $6.5 billion each in 2021 and 2022.

In parallel with the TTPP project, and in consultation with the Government of Mongolia, Rio Tinto is also progressing alternative options to source domestic power, including a renewable power component, Rio said.

Oyu Tolgoi is currently sourcing power from China’s Inner Mongolian Western Grid via overhead power lines, via a back-to-back power purchase agreement with National Power Transmission Grid JSC, the power importing entity, and the Inner Mongolian Power Company, according to Turquoise Hill.

Rio Tinto Copper & Diamonds Chief Executive, Arnaud Soirat, said: “Rio Tinto, Turquoise Hill and the Government of Mongolia are all committed to securing a reliable and long-term domestic power source for the Oyu Tolgoi mine and are working together to achieve this.”

Teck renews carbon reduction goals with help of AES

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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.

OK Tedi boosts operator safety with new Immersive Technologies collaboration

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Immersive Technologies and OK Tedi have established the first fully-integrated Operator Performance Analytics (OPA) system as part of the Papua New Guinea miner’s focus on operator safety, Immersive says.

Following the successful delivery of continuous improvement projects and managed services by Immersive, OK Tedi opted to establish an OPA installation on-site with the dual goals of improving safety and machine care among their operators, Immersive, which is now part of Komatsu Ltd, said.

Using the OPA electronic operator scorecard, OK Tedi was able to drill down to individual operator performance indicators. These indicators can be used to see how an operator compares with their peers or are trending over time. “Ranking of all operators additionally provides a unique opportunity to motivate personal ownership of safety statistics and performance, while providing management an effective tool to identify training needs to improve overall mine site productivity,” Immersive said.

OPA data can also be filtered specific to machine errors, performance on different machines, performance over time and training history to locate the root cause of a performance trend. An initial dataset was analysed using six months of machine operational data from the field and simulator data, with this data used to identify outlier operators in terms of risk rating or performance against key metrics (such as spot time, average speed loaded and average tonnes per km/h).

Masket Siune, Superintendent Mine Business Improvement & Training OK Tedi, said: “OPA has enabled quicker analysis of mine operator performance to identify trends or patterns to mitigate risk relating to equipment reliability and operator productivity metrics.

“We now have a reliable operator data platform that gives real comprehensive data view to approach our operators and discuss training development needs or for reward and recognition for the outstanding performance based on both risk and productivity criteria.”

With multiple operational data sources integrated within OPA, OK Tedi easily identified a high incidence of high peak frame bias events, therefore prioritising simulator training for those operators contributing the highest error counts, Immersive said. Once underperforming operator groups or individuals are identified, these can be selected and assigned to a training needs analysis report.

Simulator training can then be conducted and training data automatically sent back to OPA —without manual intervention. Typical training scenarios for errors could require operators to navigate loaded trucks over rough road conditions or load and dump using the correct procedure. In turn, this can be used for assessment of training retention and impact.

Alex Da Silva, Global Professional Services Manager at Immersive Technologies, said: “At OK Tedi, analysis that previously took days or weeks, now takes minutes, integrating disparate data systems with simulator generated data provides a single, powerful platform for workforce development planning.”

OK Tedi, which mines copper, gold and silver in the Western province of PNG, plans to extend the use of OPA to additional machines types to further support its operations, according to Immersive.