Tag Archives: copper

Rio Tinto and Mongolian Government ‘open’ Oyu Tolgoi Underground mine

The Prime Minister of Mongolia, Luvsannamsrain Oyun-Erdene, today joined Rio Tinto Chief Executive, Jakob Stausholm, 1.3 km underground to celebrate the commencement of underground production from the Oyu Tolgoi copper mine in the Gobi Desert.

This was followed by a ceremony with Oyu Tolgoi employees and leaders, Government of Mongolia representatives, Oyu Tolgoi Board members and local suppliers to mark this milestone towards Oyu Tolgoi ramping up to become one of the world’s leading copper suppliers.

Since the agreement between the Government of Mongolia and Rio Tinto in January 2022 to reset the relationship and move the Oyu Tolgoi underground project forward, 30 drawbells have been blasted and copper is now being produced from the underground mine. Oyu Tolgoi is expected to become the fourth-largest copper mine in the world by 2030, operating in the first quartile of the copper equivalent cost curve, Rio Tinto says. Ore is currently being processed from Panel Zero in Hugo North Lift 1 and production will ramp up over the coming years.

A partnership between Rio Tinto and Mongolia, the Oyu Tolgoi open pit and concentrator have been succesfully operating for over a decade. The total workforce of Oyu Tolgoi is currently around 20,000 people, of which 97% are Mongolian. Oyu Tolgoi works with more than 500 national suppliers and has spent around $15 billion in Mongolia since 2010, including $4 billion of taxes, fees and other payments to the state budget, according to the mining company.

Developing the underground mine is an investment of over $7 billion, unlocking the most valuable part of the copper resource for the benefit of all stakeholders. Oyu Tolgoi is expected to produce around 500,000 t/y of copper on average from 2028 to 2036 from the open pit and underground, enough to produce around 6 million electric vehicles annually, and an average of around 290,000 t over the reserve life of around 30 years.

Oyun-Erdene said: “I am proud to celebrate this major milestone with our partner Rio Tinto as we look towards Mongolia becoming one of the world’s key copper producers. The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia’s ‘New Recovery Policy’ and Vision 2050 economic diversification strategy. Mongolia stands ready to work actively and mutually beneficially with global investors and partners.”

Stausholm said: “We would like to thank the Government of Mongolia for their commitment as our partner in achieving this remarkable milestone. We are starting underground production 1.3 km beneath the remote Gobi desert from an orebody that will be critical for global copper production and Mongolia’s ongoing economic development. The copper produced in this truly world class, high technology mine will help deliver the electrification needed for a net zero future and grow Rio Tinto’s copper business.”

Rio Tinto now has a 66% interest in Oyu Tolgoi LLC, the mine operating company, following its successful completion of the acquisition of Turquoise Hill Resources Ltd; with the Government of Mongolia retaining 34%.

First Quantum and Panama Government agree on draft contract for Cobre Panama

First Quantum Minerals Ltd and its Panamanian subsidiary, Minera Panamá, S.A. (MPSA), have agreed and finalised the draft of a concession contract with the Government of Panamá related to continuing operations at the Cobre Panamá copper-gold mine.

The Proposed Concession Contract meets the objectives outlined by the Panamanian Government in January 2022 related to government revenues, environmental protections and labour standards, according to FQM. It also provides legal protections necessary to both parties to ensure durability and stability.

The contract is subject to a 30-day public consultation process and approvals by the Panamanian Cabinet, Comptroller General of the Republic and the National Assembly. The Proposed Concession Contract will have an initial 20-year term, with a 20-year extension option and additional extensions for the life of mine.

Additionally, the Panamá Maritime Authority has confirmed it will issue a resolution today for MPSA to resume concentrate loading operations at the Punta Rincón port. Loading operations were halted back in January with FQM saying the reason was tied to allegations its scale was improperly calibrated. Soon after this, First Quantum halted ore processing operations, saying the action was a result of the Panamá Maritime Authority’s refusal to permit copper concentrate loading operations at the mine’s port, Punta Rincón, in accordance. Ore processing is expected to resume and restore the mine to full production levels over the next several days.

The two companies have been engaged in a long-running contract dispute that hinges on disagreements over tax rates and royalties at the Cobre Panama mine.

The proposed contract will include the following principal economic terms once it takes effect:

  • Payment by MPSA of $375 million plus an additional $20 million to cover taxes and royalties up to the year-end 2022
  • Payment by MPSA starting in 2023 of an annual minimum contribution of $375 million in government income, comprised of corporate taxes, withholding taxes and a profit-based mineral royalty of 12 to 16 percent, with downside protections;
  • Downside protections to the annual minimum contribution under the following conditions:
    • Until the end of 2025, copper price below $3.25 per pound; and
    • From 2026 and beyond, a total tax contribution for that year of less than $300 million.
  • Applicable royalty rate (the operating margin and the effective royalty rate) at various operating margins as shown below:
    • 0-20% – 12%
    • >20-30% – 13%
    • >30-40% – 14%
    • >40-50% – 15%
    • > 50 – 16%
  • Application of the general regime of income tax, including deductions for depletion, and withholding taxes in Panamá.

Tristan Pascall, Chief Executive Officer, said: “After a lengthy and arduous negotiation process, the finalised Proposed Concession Contract outlines the basis for the future of Cobre Panamá for all stakeholders, including the government, our investors and the country of Panamá. I am pleased that we now have a pathway to continuing our ongoing substantial investments in the country. I wish to thank our Panamanian and international employees and their families and our suppliers for their patience and resilience during this time. We now await formal approval of the Proposed Concession Contract and look forward to a long and constructive partnership with the Government of Panamá for many years to come.”

Vale partners with MIRARCO on bioleaching, bioremediation processing project

Vale Energy Transition Metals, a leading global supplier of nickel, copper, cobalt and platinum group metals, says it is moving to accelerate commercial recovery of critical minerals from mine waste in partnership with the Mining Innovation, Rehabilitation, and Applied Research
Corporation (MIRARCO) at Laurentian University, in Canada.

As part of efforts to reduce mine waste and capture additional value from mined material, Vale has committed C$875,000 ($635,769) over five years to MIRARCO to support a new industrial research chair program in biomining and bioremediation. The announcement was made during the Prospectors & Developers Association of Canada 2023 Convention, in Toronto, Canada.

The industrial research chair program, led by Dr Nadia Mykytczuk (pictured in the centre), will develop, pilot and work towards commercialising bioleaching and bioremediation processes including efforts to recover nickel and cobalt from low-grade pyrrhotite tailings and other waste.

Luke Mahony, Chief Technical Officer at Vale Energy Transition Metals (pictured second from left), said: “This builds on our extensive R&D history and proven track record of lab-to-plant process development and represents a significant opportunity for waste-stream reprocessing here in Ontario. We see this as a triple-win, with potential to reduce liabilities, accelerate commercial recovery of critical minerals and capture additional value from mined material.”

The Government of Ontario will also contribute C$750,000 through the Northern Ontario Heritage Fund Corp. to support this industrial research chair program.

Greg Rickford, Minister of Northern Development (pictured second from right), said: “The new and improved Northern Ontario Heritage Fund Corporation is supporting innovative solutions in the resource extraction sector that will change the way we see mining traditionally. By partnering with Vale and Laurentian University, we are committing to Made in Ontario solutions that will reduce mine waste and enhance value for materials already involved in the mining process.”

Dr Mykytczuk, President and CEO of MIRARCO, said: “This funding and collaboration will accelerate the development of new tools to help us extract value from wastes, producing the metals we need in an environmentally sustainable way.”

Vale Energy Transition Metals is one of the world’s largest producers of high-quality nickel and an important producer of copper and responsibly sourced cobalt. With headquarters in Toronto, Canada, and operations in Newfoundland & Labrador, Ontario, Manitoba, Indonesia and Brazil, the business delivers critical building blocks for a cleaner, greener future.

MIRARCO Mining Innovation is in its 25th year and has been a leader in the development of innovative solutions in response to the needs of the mining industry. Located in Sudbury, Ontario, MIRARCO works collaboratively with industry, private sector, government, academia, and community stakeholders, building fit for purpose teams to effectively deploy knowledge, technology, and sustainable practices across the mining life cycle.

NextOre’s in-pit sorting advances continue with development of mining truck sensor

NextOre and its magnetic resonance (MR) technology have made another advance in the ore sorting and material classification game with the development of a new “open geometry” sensor that could enable mines to scan mining truck loads.

The company, in the last year, has surpassed previous throughput highs using its on-conveyor belt solutions, accelerated the decision-making process associated with material sorting viability with its mobile bulk sorter and made strides to branch out into the in-pit sorting space via the development of these open geometry sensors.

NextOre’s MR technology is the culmination of decades of research and development by the Commonwealth Scientific and Industrial Research Organisation (CSIRO), with the division spun out from the organisation in 2017. Since then, NextOre has gone on to demonstrate the technology’s viability across the globe.

NextOre’s MR analysers were first fitted on conveyor belts, yet interest in solutions for in-pit equipment predates the company’s inception.

“A significant portion of the time when CSIRO would show people the technology, they were working on for fitting on a conveyor belt, many would ask: ‘could you possibly put it around a truck somehow?’,” Chris Beal, CEO of NextOre, told IM.

After workshopping many ideas and developing increasingly large prototypes – commencing at the start with an antenna made up from a copper loop and a couple of capacitors – two in-pit solutions leveraging CSIRO’s open-geometry sensor have come to the fore.

The first – a 3-m-wide sensor – underwent static and dynamic tests using chalcopyrite copper ore grade samples in a material feeder setup in 2022, in Australia.

This test work, observed by several major mining companies, laid the groundwork for a bigger installation – a 7-m-wide ruggedised antenna that weighs about 5 t. This can be positioned over a haul truck and manoeuvred using a crane supplied by Eilbeck and guidance systems developed for NextOre by CSIRO and the University of Technology Sydney.

The advantage of MR in a truck load scanning scenario, just as with a conveyor, is the ability to make accurate, whole-of-sample grade measurements at high speeds. Yet, to operate effectively, this system requires significant amounts of power.

“The truck system we are building is between 120 kW and 200 kW,” Beal said. “For people in the radio frequency space, power of that magnitude is hard to comprehend; they’re used to dealing with solutions to power mobile phones.”

For reference, a NextOre on-conveyor system rated up to 5,000 t/h has around 30 kW of installed power. And conveyor systems above 5,000 t/h have 60 kW of installed power.

The idea is that this new MR truck sensor station would be positioned at an ex-pit scanning station to the side of the main haul road at a site and trucks will be directed to ore or waste as a result. The test rig constructed in NextOre’s facility has been built to suit the truck class of the initial customer, which is a major copper mine using 180-t-class and 140-t-class haul trucks.

The first prototype has now been built (as can be seen by the photo) and is awaiting of shipment to the mine where a one-year trial is set to commence.

While pursuing this development, NextOre has also been increasing the scale of its conveyor-based installations.

Around nine months ago, IM reported on a 2,800 t/h MR ore sorting installation at First Quantum Minerals’ Kansanshi copper mine in Zambia, which had just shifted from sensing to sorting with the commissioning of diversion hardware.

Now the company has an ore sensing installation up and running in Chile that has a capacity of 6,500 t/h – a little over 50% higher than the highest sensing rate (4,300 t/h) previously demonstrated by the company at Newcrest’s Cadia East mine in New South Wales, Australia.

Beal said the unit has been up and running since December, with the copper-focused client very happy with the results.

For those companies looking to test the waters of ore sorting and sensing, another big development coming out of NextOre in recent years has been the construction of a mobile bulk sorter.

Able to sort 100-400 t/h of material on a 900-mm-width conveyor belt while running at 0.3-1 m/s, these units – one of which has been operated in Australia – is able to compress the timeline normally associated with making a business case for ore sorting.

“As people can now hire such a machine, they are finding it either resolves a gap in proving out the technology or it can be used to solve urgent issues by providing an alternative source of process feed from historical dumps,” Beal said. “They want to bring a unit to site and, after an initial configuration period, get immediate results at what is a significant scale.”

Such testing has already taken place at Aeris Resources’ Tritton copper operations in New South Wales, where the unit took material on the first surface stockpile taken from an underground mine.

While this initial trial did not deliver the rejection rate anticipated by Aeris – due largely to rehandling of the material and, therefore, a reduction in ore heterogeneity ahead of feeding the conveyor – Aeris remains enthusiastic about the technology and Beal is expecting this unit to be redeployed shortly.

“We now know thanks to results from Kansanshi, Carmen Copper Corp/CD Processing, this new Chilean site and Cozamin (owned by Capstone Copper) that this in-situ grade variability can be preserved, and that mixing impacts directly on sorting performance,” Beal said. “Even so, we have seen really good heterogeneity persist in spite of the unavoidable levels of mixing inherent in mining.”

He concluded: “People want this type of equipment not in a year’s time, but next month. Capitalising the business to put more mobile units out in the world is a priority.”

Anglo Asian bolsters Azerbaijan mining fleet with Epiroc, Cat, Paus and Tunelmak equipment

Anglo Asian Mining says it has placed orders for the major items of equipment required for production from its new Zafar and Gilar mines in Azerbaijan, with a fleet made up of Epiroc drills, Caterpillar loaders and auxiliary machines from the likes of Paus and Tunelmak.

The company has also made progress with the upgrades to its Gedabek flotation plant, it noted.

The equipment for Zafar and Gilar includes an underground fleet from Caterpillar and drilling machinery from Epiroc. The total equipment cost is approximately $10 million, approximately 40% of which will be met from the company’s existing cash reserves with the remaining being funded through vendor financing. The equipment is a significant investment for the company, underpinning its confidence to achieve its stated ambition to transition to mid-tier copper production status, it said.

A day before this announcement, Anglo Asian said it had completed a scoping study for the Zafar underground mine, based on ore production of 700,000 t/y and a 0.5% copper equivalent cutoff grade. Development work and the construction of two portals has also started.

Included in the drilling fleet is an Epiroc Boomer S1 D, three Epiroc T1D jumbos, one Epiroc Simba S7 D and one Epiroc H1354. The Caterpillar machinery includes three 15-t payload R1700 LHDs and two UMA 980 wheel loaders.

Auxiliary units that will complement this fleet include a Paus TSL853 Central articulated steering telescopic swivel loader, two Tunelmak ADROIT 520-2 AH 4×4 hydrostatic basket platforms and one Tunelmak ADROIT 420AH 4×4 articulated hydrostatic shotcrete pump.

Anglo Asian produced 57,618 oz of gold equivalent for the year ended December 31, 2022, but, with the addition of Zafar and Gilar, it has an ambition to become a mid-tier miner producing over 100,000 oz/y of gold equivalent.

An expansion of the flotation plant at Gedabek, the company’s flagship opeation, is underway together with adding a further line to produce zinc concentrate, it said. The total cost of the expansion, which will see it add three new rougher/scavenger cells and four cleaner cells from Maelgwyn Mineral Services, is currently estimated at $3 million which will be paid from the company’s existing cash resources. Contractors have been appointed to supply materials for the new flotation line. Additional contractors will be commissioned to modify the existing building and provide electrical services and control equipment, it added.

The modifications to the flotation plant to increase its capacity have now been broadly completed. The installation of the new flotation line using hydraulic flotation cells will be completed by the end of the year.

Stephen Westhead, Vice President of Anglo Asian, said: “The new equipment will be used to expand the company’s mining and processing operations with the development of two new underground mines this year. The expansion of our flotation plant has been broadly completed, doubling capacity and creating additional processing flexibility. This represents an important step in our medium-term growth ambition to become a mid-tier production miner, and significantly increases our capabilities within copper.”

Jetti Resources to deploy catalytic leaching tech at Freeport-operated El Abra

Jetti Resources has reached an agreement with Sociedad Contractual Minera El Abra and Freeport-McMoRan to deploy Jetti’s leaching technology at the El Abra copper mine in Chile, majority-owned and operated by Freeport.

The use of Jetti’s technology will enable El Abra to produce more copper while taking advantage of existing infrastructure and will generate strong financial returns, according to Jetti.

This is not the first Freeport installation for Jetti, with a spokesperson for the mining company recently confirming to IM it was trialling the technology through “a commercial installation” at its Bagdad mine in Arizona, USA.

Jetti’s catalytic technology will be deployed on the existing leach stockpiles at El Abra and will target over 20 MIb/y (9,072 t/y) of incremental copper cathode production after an initial ramp-up period. The project will leverage existing El Abra infrastructure including excess tankhouse capacity sufficient to process all production from Jetti’s leaching technology. Engineering work for the establishment of Jetti’s on-site catalyst facility is already well advanced, with construction expected to commence in the first half of 2023 and commissioning expected in the second half of the year, Jetti said.

El Abra is an open-pit copper mining complex with a large sulphide resource as well as an established leaching operation. In 2022, El Abra produced approximately 200 MIb of copper.

Mike Outwin, CEO and Co-Founder of Jetti Resources, said: “El Abra is Jetti’s first deployment in Chile, and we are delighted to extend our partnership with Freeport to a second site. Real momentum is building behind the deployment of Jetti’s technology as its unique technological, commercial and environmental benefits become increasingly clear. We look forward to working with Freeport to successfully unlock profitable new pounds of copper with a low carbon footprint and with reduced water consumption.”

Macmahon and PT Amman Mineral Nusa Tenggara close in on Batu Hijau Phase 8 contract

A subsidiary of Macmahon Holdings has entered into final agreements to carry out the Phase 8 scope of work at PT Amman Mineral Nusa Tenggara’s Batu Hijau copper-gold mine in Indonesia.

PT Macmahon Indonesia and PT Amman Mineral Nusa Tenggara (AMNT) currently have an alliance-style mining and leasing services agreement in place for Batu Hijau, a large open-pit, porphyry copper gold deposit on Sumbawa Island in Indonesia. This is a cornerstone project that underpins Macmahon’s long-term outlook, the contractor says.

Given the success of the Batu Hijau mining contract to date and AMNT’s expected outlook for copper and gold prices, AMNT has made the decision to expand the Batu Hijau mine by undertaking a further cutback of the pit, known as Phase 8. Under the revised Batu Hijau Mine Plan, it is expected to extend in-pit mining to approximately June 2028.

In keeping with the life-of-mine nature of the existing contract between AMNT and Macmahon Indonesia, AMNT intends to maintain the engagement of Macmahon Indonesia as Head Mining Services Contractor for the Phase 8 expansion. Accordingly, AMNT and Macmahon Indonesia have entered into a new Mining and Leasing Services Contract under which (subject to Macmahon shareholder approval) Macmahon Indonesia will carry out the Phase 8 scope of work and continue with Phase 8 works currently underway, on updated commercial terms.

Macmahon explained: “Factors relating to the Phase 8 expansion made it difficult to apply the current commercial framework under the existing mining and leasing services contract (executed in 2017 and amended in 2018) to the additional Phase 8 works. In particular, the original $145 million of equipment on site at Batu Hijau acquired in 2017 has been depreciated to nil over a five-year term.”

The written-down value of all Macmahon-owned equipment on site is an important driver of return for Macmahon given that Macmahon receives part of its remuneration as a return on capital employed.

Under the new arrangements, Macmahon Indonesia will acquire from AMNT certain Caterpillar equipment (including dozers and trucks) with an independently-assessed market value of not more than $35 million, for use in performing the Phase 8 works and as security for the third-party financier. Macmahon Indonesia will also have the right (but not the obligation) to fund certain budgeted rebuilds or refurbishments of, and new components for, some of AMNT’s plant and equipment, along with other capital expenditure (which may include new trucks or other new plant and equipment).

Macmahon Indonesia will recover its capital investment on the assets acquired from AMNT and the amounts funded on rebuilds, refurbishments and new equipment through monthly depreciation charges paid by AMNT over the expected useful life of each item (with the asset to be transferred back to AMNT once Macmahon Indonesia has recovered its full capital investment). Macmahon Indonesia will also earn a monthly return on capital fee equivalent to a 15% return on the average written down value of its capital investment.

In addition, Macmahon Indonesia will have the opportunity to earn key performance indicator (KPI) fees (of up to $5.1 million per six-month period) based on overall project performance against project KPIs (although there is no certainty that any such KPI fees will become payable to Macmahon Indonesia).

Macmahon Indonesia also intends to implement third-party funding arrangements under which Macmahon Indonesia would recover a portion of its capital expenditure immediately from a financier, and would then repay the financier via monthly repayments that approximate the monthly depreciation charges recovered from AMNT. The financier would, of course, charge a fee for this arrangement, but Macmahon Indonesia would only seek to obtain finance where the costs of the financing are significantly less than the return on capital fee payable to Macmahon Indonesia in respect of the financed equipment.

Replacing the existing mining and leasing services contract will result in the current Macmahon Indonesia mining fleet (which has now been fully repaid by AMNT and depreciated to nil) being transferred to AMNT in accordance with the termination provisions of the existing contract. Because AMNT is a substantial shareholder in Macmahon, these transfers, and some of the other arrangements noted above, require Macmahon shareholder approval.

A notice of meeting setting out further details in relation to the new arrangements and seeking shareholder approval will be released to the ASX following this announcement.

The new commercial framework will, once approved, deliver a number of benefits to Macmahon, it say, including:

  • Confirmation of increased tenure at Batu Hijau given the Phase 8 expansion and resultant extension of mine life;
  • Furthering the relationship with AMNT, enhancing Macmahon’s ability to pursue opportunities at Elang and other growth opportunities; and
  • An ability for Macmahon Indonesia to provide a sustainable investment in equipment and/or major rebuilds at Batu Hijau which will permit Macmahon Indonesia to generate a return on capital fee.

Macmahon’s Managing Director and CEO, Michael Finnegan, said: ”AMNT has a world-class asset and our relationship with them at Batu Hijau is highly valued. Phase 8 is an important opportunity to continue our relationship. Pleasingly, with the support of AMNT, we have been able to simplify the contract to remove zero margin revenue which will enhance operating margin, reduce working capital investment and improve our return on capital during the expected 5.5-year life extension.

“During the term of the contract, we also have flexibility to discuss how much capital to invest and with the agreed return of 15% on capital invested, this determines how much earnings are generated. This extension will generate improved project earnings, cash flows and financial returns that support our capital allocation and investment when compared to the existing contract.

“We look forward to continuing our relationship with AMNT at their highly productive, world-class Batu Hijau operation and with a partner who values technology and ESG. I would also like to thank our team, in particular our Chief Financial Officer, Ursula Lummis, for their efforts in positioning Macmahon to win the Phase 8 expansion work.”

Krajete looks to test out NOx recovery tech in Chile’s copper space

Krajete GmbH’s nitrogen oxide emission recovery technology is now being tested for use in copper extraction in Chile’s Atacama Desert, the Austria-based company says.

The technology, developed by Krajete and perfected in collaboration with Audi AG, was recently discovered by technology scouts from one of the world’s largest mining groups, it says. The group focuses on the recovery of nitrogen oxides (NOx) produced during copper mining and the further use for valuable materials.

Krajete’s zeolite-based process offers the optimal solution here and will now be tested in a first test plant, the company said.

The extraction of copper from mineral ores is accompanied by the emission of large quantities of NOx, but Krajete believes it can turn these gases into valuable raw materials.

The company, which specialises in the development of sustainable solutions for gas extraction and purification, optimises natural processes for use in industry. For example, it succeeded in developing a zeolite-based way to remove NOx from emission gases. Together with Germany-based Audi AG, this technology has been optimised for use on internal combustion engines in recent years.

Dr Alexander Krajete, CEO and Founder of Krajete GmbH, said: “In fact, our process is so flexible to use that we can adapt it to other – even large-scale industrial – requirements with little effort.”

Krajete continued: “Our process…not only allows NOx to be filtered out of gas emissions, but even the recovery and concentration of these raw materials, which can then serve as a starting point for other valuable materials such as nitric acid.”

The principle of the Krajete technology is the physical binding of NOx to a specially prepared zeolite matrix. From this, the gases filtered out can then be recovered cheaply and easily in concentrated form.

“And the best thing about it is that the zeolite survives this process completely undamaged and can be used again,” Krajete says. “It’s a sustainable principle that turns waste gases into valuable materials.”

The mining company’s technology scouts looked at a significant number of companies for solutions for sustainable recovery of the NOx emitted during copper extraction, according to Krajete, before settling on the solution the Austria-based company is pioneering.

If the process proves successful in this setting, large plants are already being discussed for NOx recovery in copper production. Structures measuring 14 sq.km could be erected that would serve solely to recover the NOx.

Nevada Copper drafts in Dumas Mining as part of Pumpkin Hollow restart plan

Nevada Copper, in providing an update on restart and operational activities for its Pumpkin Hollow underground copper mine in Nevada, USA, has confirmed the appointment of Dumas Mining as its Capital Projects Construction contractor.

The company is currently targeting a mill restart in the September quarter with a quick ramp up to nameplate capacity by the end of 2023.

Back in June 2022, an unidentified weak rock structure was encountered in the main ramp to the East South Zone at the undeground mine. This, Nevada Copper says, restricted access to the company’s planned East South stoping zones. In response to this event, the company took steps to curtail operating activities while developing plans to address this issue.

In the latest update, Nevada Copper said it had a clear line of sight to full-scale production with a “simple and low-risk pathway to full-scale production” established.

Randy Buffington, President & CEO of Nevada Copper, stated: “Our Pumpkin Hollow team is focused on advancing the restart project quickly and safely. We are building on the momentum of the recent achievements by the underground crews as they have progressed through the dike structure and are advancing into the EN Zone in anticipation of the underground development contractor arriving on site and commencing development. The technical and leadership teams are in place and committed to executing this restart plan. We are targeting a mill restart in the third (September) quarter with a quick ramp up to nameplate capacity by the end of 2023.”

Development into the EN Zone has demonstrated that rock quality is consistent with its geotechnical model, which predicted competent ground within the EN Zone, and development is progressing at full round lengths and standard ground support, Nevada Copper says.

The company has awarded a contract for completion of capital projects to debottleneck restart of development and underground operations. This is where Dumas is involved with Nevada Copper signing a $12 million construction contract to complete critical capital projects including the coarse ore bin and installation of an underground jaw crusher, permanent dewatering system, vent shaft stripping and surface fans. Dumas, part of Stracon, is a full-service underground mining contractor providing mine construction, development, production mining, mine services and engineering early-stage projects through well-established operating mines throughout the Americas.

Nevada Copper says its operations team, meanwhile, continues to make rapid progress on all underground activities including mine development, hoisting, stope preparation and underground projects. It has completed the bid process for the development mining contractor and is in the final stages of negotiations for a unit rate contract with an “internationally recognised major mining services contractor”, it said.

Key components of the development contract include 72,000 ft (21,946 m) of lateral capital development over a 24-month contract period; delivery of full development stopes by the September quarter of 2023 to provide sufficient faces and stopes to restart and maintain nameplate milling operations (approximately 5,000 t/d); and Nevada Copper’s operating team will perform all stope mining starting in the September quarter.

OZ Minerals navigating Carrapateena mine traffic issues with Mobilaris solutions

OZ Minerals, through the implementation of Mobilaris Situational Awareness and Mobilaris Onboard, has improved traffic flows at its Carrapateena copper-gold mine in South Australia, according to a recent case study.

Having implemented the solutions from Mobilaris, owned by Epiroc, the mining company gained a better understanding of where machines and people were physically located underground – and operations became safer.

Since commencing production in December 2019, the Carrapateena mine has become, over the past decade, one of the biggest mining projects in the state. The ore must be hauled from the production levels to the crusher level via a short decline with limited passing areas, which poses challenges.

To optimise haulage flows, OZ Minerals deployed Epiroc’s Mobilaris Mining Intelligence decision support system to digitise the mine.

Daniel Bruce, Superintendent, OZ Minerals Carrapateena, said: “We saw potential to remove some of the constraints we have underground. You can’t see around corners, and you can’t see through rock, so understanding where things are – where people and machines are – is a lot more difficult than in a typical workplace on the surface.”

OZ Minerals rolled out the first feature in 2019: Mobilaris Situational Awareness, a solution for surface control room operators. Mobilaris Onboard, a solution for underground operators in vehicles, followed in 2021. Thanks to real-time 3D visualisation, anybody with access to a tablet or a PC can quickly understand where machines are operating, according to Epiroc.

“Mobilaris Situational Awareness allows you to see, live, at any point in time, where all the equipment and people are in the mine,” Bruce said. “It also allows you to navigate to locations, equipment and refuge chambers.”

OZ Minerals had initially installed Wi-Fi tags on all its vehicles, which provided accuracy to around 150 m. With Mobilaris Onboard, it can achieve location accuracy of 5-10 m without any extra infrastructure, and all that is needed are basic OBD2 adapters or a Doppler radar, Epiroc says. Implementation started with trucks and loaders, and now the entire underground fleet has been equipped.

This has significantly improved real-time position information, according to Amelia Schmidt, Senior Technician in the site operations team at Carrapateena.

“Everyone at the site operations centre – dispatchers, mine controllers and haulage control – is now using Mobilaris Situational Awareness,” she said. “Previously, it could take quite a bit of time to search for a piece of equipment, but it only takes seconds now to see its last location.”

The system also helps OZ Minerals with its fleet management – to determine where trucks are, for instance – thus becoming a tool in the decision-making process.

Schmidt said: “For those who are perhaps new to the mine, we’ve been able to insert points of interest on the map, for example where it is best to hold. Cycle times are well managed, despite underground operations becoming a lot busier.”

OZ Minerals then implemented a second Mobilaris feature: Mobilaris Onboard, a tablet in a vehicle that acts just like a car navigator but without any need for a dedicated tracking infrastructure. This provided everyone underground with a tool that enabled them to easily understand how equipment was positioned around them.

Bruce added: “This is another piece of information that the operator can use to make a decision – and all of these minute decisions add up to a more productive and safer workplace.”

For Carrapateena Truck Captain, Joel Dodd, everyday work has become easier thanks to Mobilaris Onboard.

“One of the main benefits is that we’re able to travel down and get to our locations a lot better,” he said.

OZ Minerals now has around 200 tablets in vehicles underground – in trucks, LHDs, face drill rigs and light vehicles – and the feedback has been very positive.

“When people can see more clearly where other people are, it helps them avoid unwanted interaction,” Bruce said.

This is an edited version of an Epiroc Customer story published here