Tag Archives: Degrussa

Swick Mining working on drilling and technology business demerger

Swick Mining Services says it is working towards a demerger of its drilling and mineral technology businesses following a strategic review.

The announcement came at the same time as the ASX-listed METS firm revealed Drilling Business revenue and EBITDA results of A$149.6 million ($111 million) and A$24.6 million, respectively, for its 2020 financial year. A 9% increase in underground metres drilled saw the company beat its 2019 financial revenue total of A$142.9 million, while the impacts of COVID-19 and ramp-up costs at the Pogo mine contract (Northern Star Resources) saw EBITDA drop from A$28.2 million in the previous financial year.

During this period, the company’s deep exploration division launched new DeepEX rigs, which Swick says are the world’s most powerful underground mobile rigs with capacities to drill exploration holes up to 3,000 m of NQ2 core. Two DeepEX hybrid rigs are currently deployed at client sites, it said.

And the company successfully completed on-site trials of its Orexplore technology, the major technology underpinning its mineral technology business.

These site-based trials were undertaken at Sandfire Resources’ DeGrussa copper-gold mine, in Australia, for a three-month pilot project and at Sweden-based mining and smelting company Boliden for a five-month paid pilot project.

“The first trial at the DeGrussa mine resulted in approximately 9,000 m of core scanned in total, generating 20 TB of 3D data – the largest and most continuous dataset of its kind in the world for a single mine site,” Swick said. “With the trial complete, Orexplore has engaged two world-class subject matter experts to assist Sandfire and other potential clients understand the benefits of a comprehensive Orexplore data set.”

Earlier this month, Swick said Orexplore had been awarded its first in-field commercial agreement with St Barbara Ltd at the Gwalia mine in Leonora, Western Australia.

Despite these wins over the last year-and-a-bit, the company said a strategic review had recommended the company carried out a demerger of the Drilling Business and the Mineral Technology Business.

This could be tied to the fact that, at a group level, Swick reported a net loss after tax of A$6 million in the 2020 financial year, which, it said, reflected the lower Drilling Business earnings and ongoing investment in the company’s Mineral Technology Business, Orexplore.

Swick Managing Director, Kent Swick, said: “Financial year 2020 has presented a unique and challenging set of circumstances with the onset of the COVID-19 pandemic. The business has quickly adapted during this difficult period, ensuring we maintained continuity of operations and protected our people on site both internationally and locally.

“I am pleased with the ability of our Drilling Business to deliver robust earnings in this environment and secure new work with existing clients, including our two largest contracts for Northern Star and BHP, which provide a strong platform for the business as we enter the 2021 financial year.

“Meanwhile, our efforts in the Mineral Technology Business are starting to show value, with successful site-based, paid trials in the year for our Orexplore technology and the award of our first ever in-field commercial agreement earlier this month.

“We have a clear strategy for these two businesses and are now progressing with the outcome of our strategic review to demerge the Drilling Business and the Mineral Technology Business to allow them to pursue their respective strategies and ultimately deliver the greatest value to Swick shareholders.

“Meanwhile, Swick is in a strong financial position, with gearing excluding AASB16 lease liabilities reduced to A10.6 per cent in the year. Swick has A$12.7 million cash and A$18.5 million in undrawn facilities, providing the liquidity that has enabled us to win and deliver on new work, invest in new technologies including DeepEX and Orexplore, and continue providing value for shareholders in these uncertain times through dividends and share buybacks.”

CEEC’s latest workshop to examine new gen energy options for miners

With more and more mining sector interest in energy efficiency and uptake of renewables, the global not-for-profit communication hub for energy efficient mineral processing, CEEC, says it is running a series of workshops to share the latest developments in this field.

The next one-day Mineral Processing and Innovation Workshop on Energy Curves, Productivity and New Gen Energy, will be held at the National Wine Centre in Adelaide on June 19.

This event is due to kick off with a keynote address from OZ Minerals CEO and MD, Andrew Cole, who will share his vision for steering smart energy and productivity for sustainable mining, processing and communities.

Marc Allen, CEEC Director and Technical Director at engeco, said there was a worldwide trend towards new-generation energy options such as solar, battery-electric power and hydrogen – not only in the sector but for global power generation to combat climate change.

“The paradox is that these low carbon technologies are minerals intensive, and metals such as copper, nickel, lithium and cobalt will be required in greater volumes to make this transition possible,” Allen said.

“The shift towards a decarbonised energy future has significant ramifications for the global mining industry, particularly given the energy intensive nature of comminution and mining, coupled with the remoteness of most mineral deposits.”

Allen said renewable energy sources with low carbon energy backup options and/or energy storage were becoming more and more common in mines, with one leading example being the solar project at Degrussa Copper-Gold Mine in Western Australia.

Sandfire Resources’ Degrussa Solar project, commissioned in 2016, is reported to be the world’s largest integrated off-grid solar and battery storage facility. It supplies about 20% of the mine’s annual power requirements and has reduced emissions by close to 12,000 t/y of carbon dioxide, according to CEEC.

“South Australia is also leading the way with adopting new-gen energy. BHP is trialling zero-emission light electric vehicles at its Olympic Dam mine and has plans to progressively replace diesel fuel with lithium-ion batteries,” Allen said.

Canada’s first all-electric mine (Borden) is also on the cards, being constructed by CEEC sponsors Newmont-Goldcorp, Sandvik and MacLean Engineering.

Allen said: “Newmont-Goldcorp’s target is to increase energy efficiency by 15% over five years and source 5% of its energy from renewables. It’s pleasing to see that other major mining companies are fast following suit, introducing bold targets to shrink their carbon and energy footprint.”

Another standout country is Chile, with reports of nine companies, including copper miners Codelco and Antofagasta Minerals, introducing renewable energy such as wind and solar power.

In addition to transitioning to clean energy technologies, mining operations are striving to improve the energy efficiency of comminution. In Australia, alone, copper and gold mines’ comminution processes consume 1.3% of national electricity production, as well as being key constraints to site productivity, value and mining footprint.

Speakers and panellists at the CEEC Mineral Processing and Innovation Workshop in Adelaide on June 19 will share the latest technologies and methodologies being employed to boost energy efficiency, value and productivity in processing plants and mine sites, according to CEEC.

Keynote speaker Cole will be joined by leading mining, METS and research experts from across Australia, including Energy Curve researcher Dr Cathy Evans, Senior Research Fellow, University of Queensland Sustainable Minerals Institute; Professor Stephen Grano, Executive Director, Institute for Mineral and Energy Resources, University of Adelaide; and Professor Bill Skinner, Research Leader, Future Industries Institute, University of South Australia.

With data science and AI also being key drivers for improving operational efficiency and dispatch of electrical energy, workshop participants will hear from PETRA Data Science’s Managing Director, Dr Penny Stewart, and Technical Director, Dr Zeljka Pokrajcic.

Innovative METS leaders, including Greg Lane, Ausenco; Sandy Gray, Gekko Systems; and Bear Rock Solutions’ Dr Ted Bearman and Adjunct Professor Rob Dunne, will present practical advances in comminution technology.

Insights into South Australia mining and mineral processing innovations will be provided by Joe Seppelt, OZ Minerals Processing Manager at the Carrapateena copper-gold project, north of Port Augusta, and Enzo Artone, BHP Area Manager, Mill and Process Minerals, BFX Project, Olympic Dam.

To register or find out more about the workshop, which will be held at the National Wine Centre, click here.