Tag Archives: Cosmos

Electric mine study points to the future, says IGO’s Carr

Planned electrification of the Cosmos underground nickel mine in Western Australia had no bearing on owner IGO’s decision earlier this year to shelve redevelopment due to low metal prices and project cost escalation, The Electric Mine 2024 heard this week.

Acting COO of the diversified Australian miner, Chris Carr, said at the conference in Perth a study on the economic feasibility of switching from diesel equipment to battery-electric that ‘presented a compelling case to us’ for electrification highlighted current challenges and opportunities in the industry’s push to transition to new generation mobile equipment.

In parallel with the electrification study by mining contractor Perenti and engineering major ABB, IGO completed a project review that cut Cosmos’ expected mine life and pushed up capital and operating costs. Lower nickel prices have negatively impacted most Western Australian sulphide nickel mines.

IGO put Cosmos into care and maintenance at the start of 2024. “Electrification was not a factor in that decision,” Carr said at the The Electric Mine 2024, hosted by International Mining Events. “But electrification will be considered in any future Cosmos operation.”

A whitepaper summarising the study results was posted this week by IGO. ‘Making electrified underground mining a reality: Lessons from the Cosmos Electrification Study’ concluded replacing diesel underground mining vehicles with a battery-electric fleet was now technically feasible and will increasingly be a key technological enabler for mining companies to achieve their decarbonisation goals.”

Perenti and ABB said a combination of actual and projected battery-electric vehicle cost and performance data indicated BEV fleet available to the Australian market could match the productivity of mature diesel equipment.

They also found estimated costs to electrify Cosmos’ modest underground fleet was not prohibitive over the planned mine life, ‘even based on conservative productivity and cost assumptions.’ IGO wasn’t going to obtain full benefits from optimised ventilation and other infrastructure design due to sunk investment in the mine prior to its acquisition of the asset in 2022, Carr said.

The study identified gaps in available BEV operating and maintenance direct and indirect cost data due to the formative stage of equipment, battery, charging and support system development relative to entrenched diesel models.

It also highlighted significantly longer delivery times for battery-electric equipment than diesel models. “We hope this is not prioritising diesel units to make more money Carr said. “This is slowing adoption.” However, Carr said at the conference none of this would stop the march of EVs into traditional diesel territory.

The improving cost profile of EVs and the market pull created by industry decarbonisation goals were not the only drivers.”In five-to-10 years we’ll all be electric and be wondering what all the fuss was about. The cost differential of an all-electric mine presented a compelling case to us. We also believe the decision to electrify should include the safety case and the harder to quantify but nevertheless real benefits of the ESG case. The decision to electrify should be made on the combined basis of safety, ESG and economics. The economics is the hardest one right now. But safety ought to be enough on its own.”

Stricter standards for airborne diesel particulate matter (DPM) emissions in Australia and elsewhere would ‘push electrification a lot harder,’ Carr said.

MasterMined Innovation CEO, Tony Sprague, told The Electric Mine 2024 DPM, and specifically nano-DPM, was ‘the elephant in the room’ and the ‘real driver of getting diesel out of the underground mine and to achieve the electric mine.’ Sprague, the former Group Manager of Directional Studies and Innovation with gold major Newcrest, said modern underground mine equipment diesel particulate filters regenerated carcinogenic nano-DPM in underground work environments.

“It can’t easily be measured…but we do know it’s more easily absorbed into the human body, through the skin, through the lungs, and it’s recirculated through the body, through the blood, and it impacts the body on a cellular level. Really we’re flying blind when it comes to the hazard of DPM and nano-DPM. There is a new [emission] target that is coming from Safe Work Australia that is not far away. When it’s going to land we’re not too sure, but if it does land it’s going to be very problematic for the industry.”

This story was written by Richard Roberts of InvestMETS, one of The Electric Mine 2024 Supporting Partners

ABB, IGO and Perenti on collaborating for full mine electrification

An industry panel discussion on the potential of electrifying IGO’s Cosmos underground nickel project at IMARC 2023 today highlighted the opportunities, risks and complexities associated with ‘greening’ a brownfield mining project at the moment.

Back in June, Perenti and ABB, in collaboration, were awarded an inaugural contract by IGO to undertake a study for the full underground electrification of the project, in Western Australia.

This study was to see experts from Perenti and ABB work side by side with IGO to provide a pathway for the optimum design of mine electrification at Cosmos. All aspects of electrification were to be considered in the study, including:

  • Mine design optimisation for electric operations;
  • Production and operating philosophy;
  • Fleet selection;
  • Power distribution and electrical infrastructure design;
  • Electrification system and battery management;
  • ESG and safety impact analysis; and
  • Cost modelling of both capital and operating expenditure.

At IMARC today, on the ‘Going All-Electric: Collaborating to Fully Electrify IGO’s Underground Cosmos Nickel Project’ panel discussion, chaired by Emma Jones, Innovation Management Lead, Southern Hemisphere, GHD, all three companies had representatives on stage to flesh out some of these bullet points, with the result being a fascinating discussion on implementing what is still a revolutionary concept.

The Cosmos study is split into three distinct parts with the companies currently half way through the process.

Both Chris Carr, Head of Technical Services at IGO, and Darren Kwok, Head of Mining Electrification and Technology, Perenti, admitted that the task at hand was highly complex.

Carr said the process would be much easier in a greenfield mine, with the potential ventilation and refrigeration cost reductions that would come with introducing electric machines likely to “pay” for the new equipment required.

At the same time, he acknowledged that the networks and communication would need to be improved to effectively run an all-electric mine to allow operators to know what vehicles had what state of charge and deploying these machines in the optimal way.

“This could potentially see whole sites use Wi-Fi or 5G for better data transmission,” he said. “At the same time, we would know where every vehicle is and where every vehicle is going, providing the opportunity for ‘true’ collision avoidance.”

Kwok said there was likely to be a “flow-down effect” when electrifying equipment, which would have an impact on how mines plan, schedule and operate. “We need a holistic view of a mine,” he said, explaining that “just in time” mining would not work in an all-electric operation where energy management is a key concern.

Kwok added: “We also have to link the fleet together with the rest of the operations – that is the secret sauce here.”

Mehrzad Ashnagaran, Global Product Line Manager – Electrification and Composite Plant, ABB, said any mining company looking to fully electrify their mines needed to recognise that they were working with “immature technology” that cannot meet all of their requirements.

“The design of an all-electric mine is different to the vision we originally had,” he said. “This is why we need to break the process down into manageable projects for a phased approach that can allow customers to start decarbonising now.”

This is where the company’s eMine™ approach comes in, providing a roadmap of solutions on the way to longer-term electrification goals.

“In reality, the solution we are offering today may not be the same one we offer companies in five to 10 years’ time,” he added.

There was also an engaging exchange on the risk management associated with embarking on this exercise.

Ashnagaran said, for ABB, the Cosmos study and other all-electric projects the company is working on would see its vendor agnostic and interoperable approach tested and scrutinised.

“The whole eMine philosophy, however, is that no-one can go on such a journey alone; we need to collaborate with partners,” he said.

Kwok said the study allowed the service provider to learn and understand the terms of how electrified mining can practically work.

“We, at Perenti, already understand what ‘good’ looks like [from an operating perspective]…and we also understand what change looks like at a mine site,” he said, adding that the company already has electric machine data to pull into such studies.

Carr said building ‘the electric mine’ is both a risk and an opportunity, with the mining company prepared to financially back most of the expense associated with this as it had, potentially, the most to gain from a successful outcome.

He also added a bit of wider IGO context to reinforce the point.

“At IGO, we invest A$70 million ($44.5 million) a year on exploration, putting drills into the ground,” he said. “Not all of those holes are deemed a success, but they allow us to keep building our knowledge,”

The same is true for this all-electric Cosmos study.

“Regardless of the outcome, we will learn a lot,” he said. “We are driven to be the ‘first to be first’ here; first to be second simply does not work for us.”

Barminco acquires two battery-electric Integrated Tool Carriers from BME

As part of its commitment to investigate opportunities to accelerate decarbonisation, Barminco has invested in two battery-electric Volvo L120H Integrated Tool Carriers from Batt Mobile Equipment (BME), with the mining services provider set to deploy the machines later this month at IGO Ltd’s Nova and Cosmos mine sites in Western Australia.

The machines were provided by New South Wales-based BME, which has developed this battery-electric retrofit platform on the back of the TRITEV project, an initiative developed under Project EVmine with the help of METS Ignited.

The BME220 is a 20 t Integrated Tool Carrier battery-electric retrofit system that replaces diesel components in favour of an electric motor and battery pack. The resulting machine eliminates emissions, handles well, and maintains the same weight and capacity, according to Barminco. New South Wales-based 3ME provides BME with the Electric Vehicle Engine packages for these vehicles.

BME estimates its generation 3 machines will save over 81 t of carbon dioxide equivalent per year, when compared with the diesel equivalent.

The BME220s form part of Barminco’s electric vehicle trials that are taking place in partnership with IGO over the following six months.

GR Engineering bolsters EPC scope at IGO’s Cosmos nickel operations

GR Engineering Services says it has increased the scope of work related to the engineering, procurement and construction contract with Australian Nickel Investments Pty Ltd, a wholly owned subsidiary of IGO Limited, for the upgrade of the existing nickel concentrator at the Cosmos nickel operations, in Western Australia.

The company has been awarded a variation by IGO to further increase the throughput of the nickel concentrator at the project from circa-750,000 t/y to 1.1 Mt/y. This will bring the contract sum to A$76 million ($49 million), it said.

Geoff Jones, GR Engineering Managing Director, said: “GR Engineering has a long history of working with the IGO management team and is pleased to be awarded with this variation. GR Engineering looks forward to safely and successfully completing this important project.”

IGO’s CEO, Matt Dusci, added: “IGO is pleased to be working with GR Engineering on the Cosmos project after the previous successful collaboration on Nova.”

Following the acquisition of Western Areas Limited on June 20, 2022, IGO commenced work toward developing a project optimisation strategy and plan designed to deliver higher production rates for the life of the operation and a more safe and sustainable mine plan at Cosmos. The increased plant throughput strategy was part of this.

IGO is currently developing the Odysseus underground mine at Cosmos, with plans to deliver high quality nickel concentrates into the global market.

GR Engineering to refurb and upgrade Cosmos nickel concentrator

GR Engineering Services Ltd is set to carry out an upgrade of the existing nickel concentrator at the Cosmos Nickel Operations, owned by Western Areas Ltd, after signing an engineering, procurement and construction (EPC) contract with one of the miner’s subsidiaries.

The project is 30 km north of Leinster in Western Australia.

Western Areas says it has plans to refurbish and expand the concentrator to achieve 900,000 t/y throughput. In its most recent quarterly report, it said long lead items for the project had been identified with ordering taking place in the December quarter. Most of the plant refurbishment and upgrade is due to commence in the March quarter of 2022.

The contract sum is A$48 million ($36 million) and GR Engineering has commenced work immediately, the contractor said.

Geoff Jones, Managing Director, said: “GR Engineering has a long history of working with the Western Areas management team and have a strong track record of delivering projects for Western Areas on time and on budget. GR Engineering is excited to work with Western Areas on another important project and we are looking forward to delivering safe and successful outcomes for the project.”

RUC Cementation Mining to carry out shaft work on Western Areas’ Cosmos nickel op

RUC Cementation Mining Contractors is set to carry out the shaft infrastructure design, construction and equipping for the Cosmos nickel operations in Western Australia after signing a contract with mine owner, Western Areas Ltd.

This contract represents the culmination of an engagement that has been ongoing for some six months, not including the excavation works which RUC is completing, having recently successfully holed the top leg of the shaft, RUC said.

“Furthermore, this cements a long-term relationship between both companies that spans over 15 years,” it added.

In Western Areas’ 2021 financial year (to June 30, 2021), capital investment at Cosmos totalled A$84 million ($63 million) for the year as the Odysseus mine construction activity increased, including full mobilisation of the underground mining contractor with over 3 km of underground decline and capital development being completed.

Odysseus mine development reached first ore earlier this month, with the raisebore back reaming having worked through 630 m of development at a diameter of 5.7 m, completing Leg 1 of the shaft hoisting and intake air system.

At the time, Western Areas Managing Director, Dan Lougher, said: “It is an exciting milestone to reach first ore and we now look forward to continuing ore production and construction activities, while also advancing offtake tenders for new nickel sulphide supply into the class 1 nickel market.

“The raisebore breakthrough (pictured) is also a key achievement that further de-risks project delivery and allows completion of the shaft sub-brace concrete works, as well as remaining surface civil works, associated with the shaft. Importantly, the work was completed without a safety incident, for which credit must be given to the site management team and RUC, the raise bore contractor.”

Barminco to take on Odysseus nickel mining gig for Western Areas

Perenti’s hard-rock underground miner Barminco has been awarded a development and production contract at Western Areas’ Odysseus mine, in Western Australia.

The contract at Odysseus, part of the Cosmos nickel operation, is valued at around A$200 million ($146 million) over five years and follows on from the earlier rehabilitation works completed by Barminco at the mine.

Western Areas acquired Cosmos in October 2015 and commenced the redevelopment of Odysseus in January 2019. Once in production, Odysseus is expected to produce 14,000-15,000 t/y of nickel concentrate, becoming Western Areas third nickel mine in Western Australia.

Western Areas Managing Director, Dan Lougher, said today (September 8) that excellent progress had been made on the underground and surface infrastructure works at Odysseus, with minimal COVID-19 impacts.

“We have reached a critical milestone with the firing of the full-face development of the Odysseus decline, which is now heading across to the orebody,” he said. “A significant amount of preparation and support work has been delivered across the site to reach this milestone.

“We now have our eye on the delivery of the first ore tonnes mined from underground in the first quarter of financial year 2022.”

Barminco’s Chief Executive Officer, Paul Muller, said the company was excited to continue its relationship with the Western Areas team, which began in 2005 at the Forrestania mine and has now grown to include the Cosmos nickel operation.

“Odysseus is a significant project to bring on-stream, and the five-year term demonstrates the trust and confidence Western Areas has in Barminco to continuously improve and deliver for them,” he said.