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Bell B40E

CPI, Sibelco, Bell and xtonomy launch UK-first autonomous ADT pilot project

Sibelco’s china-clay Cornwood quarry in Devon, UK, has, today, played host to the launch of an autonomous ADT designed to help future proof the effectiveness and competitiveness of extractive operations such as mining within the minerals and aggregates industry.

The development of autonomous driving capability opens the door to a range of operational efficiency, safety, environmental and employee benefits to underpin the sector going forward, according to the compaies involved.

The UK-first project was initially conceptualised by Chepstow Plant International (CPI) and Bell Equipment following long-term trials between Bell Equipment and technology platform specialist, xtonomy.

CPI identified Sibelco, a long-term valued strategic customer, as the ideal partner to bring the project to reality in a live-working quarry environment. Collectively, the four stakeholders have collaborated to develop and launch a quarry transportation proposition that has its eyes on the future.

The launch event for the venture today saw key industry guests invited to witness a full demonstration of the new autonomous solution within a working quarry setting. Presentations highlighted the on-board hardware and software technologies, including radar sensors from indurad, high-precision GPS, multi-channel communication systems and on-board processing hardware. They have been incorporated by xtonomy into a standard B40E dump truck to create an Autonomous-Ready drive by wire B40E solution.

As a result, the combination offers true and safe autonomy with a resilient navigation system that dynamically plans ADT paths and predictively controls the vehicle around the entire quarry site, the companies say.

Among the key objectives with this pilot scheme will be to demonstrate the potential to reduce vehicular incidents and subsequent accidents as well as upskilling then the existing workforce to further support the future of quarry operations.

Operational efficiencies will be enhanced as the autonomous ADTs are able to operate for longer periods during the working day, deliver highly accurate tipping results and ensure that the existing quarry shift patterns can be tailored to improve productivity. Further benefits will be available thanks to improved component life and reduced wear and tear on the Bell B40E dump truck, leading to improved asset availability for the quarry, they say.

On-board hardware and software technologies, including radar sensors from indurad, high-precision GPS, multi-channel communication systems and on-board processing hardware have been incorporated by xtonomy into a standard B40E dump truck to create an Autonomous-Ready drive by wire B40E solution

Environmental advantages will also be leveraged through the AI-enabled transformation. With enhanced driving accuracy and efficiency across the quarry, less fuel will be consumed, helping to ensure reductions in carbon emissions from a a quarry’s daily activities.

To further enhance the autonomous ADTs impact on the environment, the Bell B40E uses HVO instead of diesel.

John Corcoran, Managing Director, at CPI, said: “CPI is delighted to be involved in this exciting and UK-first collaboration; one that is focused on a next generation adventure to ensure UK quarries continue to maximise operational efficiencies and remain competitive. It is important that stakeholders come together in this way to drive advancements and support the industry’s future prospects, whilst continually remain committed to our safety standards and net-zero commitments.

“We are sure that this pilot project will deliver both progress, as well as further challenges. Both of which will provide the pathway towards the ultimate goal.”

Ben Uphill, Director Operations – Kingsteignton Cluster at quarry-owner, Sibelco, says: “We envisage many benefits from having access to this sector-first autonomous ADT solution. The minerals & aggregates sector must embrace technology as a way of continually delivering improvements across our daily operations and cost base. At Sibelco we strive for continuous improvement, with a focus on safety, and the environment through energy efficiency and CO2 reduction. Automation is used in many parts of our operations and business to maximise efficiency and to also manage areas of skills shortage. This has been a fantastic example of collaborative ethos from all partners and has resulted in a safe and productive autonomous driving setup for a key part of our operations.”

Nic Grout, Managing Director at Bell Equipment, said: “Bell Equipment is a leading supplier in the ADT market and as such is proud to be part of this exciting project. Its success can help transform the future of the quarrying sector and we are pleased that our evolutionary E-series and the B40E dump truck sits at the heart of this innovative project. The ability to transform our market leading vehicle through added technology functionality into a safe, robust, effective, and autonomous quarrying asset is welcome and sets the standard for future developments across our vehicle range.”

Christian Riedel, CEO at xtonomy, says: “Supporting the quarrying sector through the appliance of result-orientated automation platform solutions is a key commitment for the business. Expectations and needs are changing as the industry looks to transition to a future where improved efficiency, better safety and targeted environmental considerations are key priorities. Our AI technology incorporated onto the already successful Bell B40E dump truck evolves it to a next generation payload transportation blueprint.”

Intramotev to put rail back in mining material movement competition

St Louis-based Intramotev is looking to rekindle the mining and rail relationship that made US operations viable in some of the country’s most remote places by using a modular battery-electric propulsion system and an autonomous-ready operating platform that can provide shipment certainty, safety and sustainability.

Founded by Tim Luchini, Alex Peiffer and Corey Vasel, Intramotev has come to the table in the last four years with a portfolio focused on autonomous, zero-emission rail solutions.

The company has brought together a team from the rail, aerospace and automotive sectors to revolutionise and revamp the rail sector, looking to provide the “speed and flexibility of trucks with all the advantages of rail”, Luchini, also CEO, told IM.

“Through our solutions, we can offer the rail industry 20% to 100% reductions in their emissions footprint, while lowering their all-in costs by 30-80%,” he says.

Such metrics, which could encourage mine site expansions as well as new greenfield operations to start up, will be achieved by deploying one of the two solutions Intramotev has in its portfolio:

  • TugVolt, a proprietary kit that can retrofit/upfit existing rail cars to become battery-electric; and
  • ReVolt, capturing waste energy in traditional trains via regenerative braking, and automated safety systems including gates and hatches.

TugVolt can decouple to independently service first- and last-mile legs, providing the type of flexibility that, Luchini says, will allow the system to more readily compete with trucking. ReVolt, meanwhile, stays in the consist to capture energy via regenerative braking and reduce the overall diesel consumption of locomotives.

Both solutions leverage battery-electric technology – with Luchini saying the rule of thumb would see a 100 kW battery on board a rail car able to transport a 100 t payload for 100 miles (160 km).

“This compares very favourably with the massive batteries companies are having to put into rail locomotives to provide hybrid consists,” he said. “We’re offering something much more scalable to allow operators transporting large volumes of materials via rail an opportunity to electrify their fleet and reduce their costs.”

The first mining company to publicly commit to such a solution is Iron Senergy, which is set to receive three ReVolt rail cars for its 17 mile private rail line that transports coal produced by its Cumberland longwall coal mine, in Waynesburg, Pennsylvania, to its Alicia Harbor Facility on the Monongahela River, in western Pennsylvania.

This will be the world’s first deployment of self-propelled battery-electric rail cars in a traditional freight train when it starts up by the end of the year, according to Intramotev, using regenerative braking and battery technology to reduce diesel consumption from locomotives, resulting in lower costs for rail operators and reducing emissions impact from rail operations.

Tim Luchini, co-Founder and CEO of Intramotev

This might be the first, but there are plenty more in the works, according to Luchini.

“We have a pipeline of 168 rail cars today which are at different levels of commitment,” he said, adding that, of this total, there was a roughly even split between enquiries for TugVolt and ReVolt.

“We’re expecting payback periods on projects to be as little as six months, so there is a real economic case to employ these solutions, as well as the ability to reduce your emissions,” he said.

The US represents a massive market for the company to aim for – close to a million freight rail cars sit idle in switching yards, awaiting locomotives to bring them to their destination, according to the company – but Luchini also sees opportunities in Canada and South America where North American rail standards are already present.

“Then there is a region like Australia to consider, which obviously has a rich history of mining with remote operations in need of affordable and low-emission transport infrastructure,” he added.

The ability to add spur and extensions onto existing lines and run smaller units of battery-electric rail cars – like the company thinks can be achieved in the likes of Arizona, Nevada and Minnesota – could provide serious competition to the trucking sector there.

Luchini concluded: “If you are a mine site today, you have an obvious tension when it comes to material movement.

“Conveyors are great material movers but can cause huge issues when they fail; trucks are fast and flexible but come with excess emissions by today’s standards; rail is low cost, fast and environmentally responsible but in its current form is not very flexible.

“We’re looking to change this dynamic, going back to the rail sector’s heritage as a mine operation facilitator.”

Centamin to reestablish Sukari as tier one asset with new life of mine plan

A new life of mine plan for the Sukari gold mine in Egypt will deliver long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions, according to owner Centamin.

The company announced the new plan today, flagging average gold production from Sukari of 506,000 oz/y for the next nine years (2024-2032); and 475,000 oz/y for life of mine (2024–2034), reflecting a 5% increase in life of mine gold production compared to 2022 (441,000 oz).

The main contributors to this increase was an improved open-pit schedule, which included a 40% improvement to the life of mine strip ratio (6.5 times) compared to full year 2022 (10.8 times); an increased underground schedule, including a 75% increase in average life of mine ore mining rates (1.4 Mt/y) compared to FY22 (800,000 t); and the integration of a gold gravity circuit to the processing plant, driving a 2% increase in life of mine gold recoveries (89.8%) compared to FY22 (88.2%).

When it comes to the cost and emissions outlook, Centamin flagged connection to the Egyptian national grid, which would deliver an estimated $41 million of annual cost savings based on current diesel prices. The company also flagged the potential for increasing the capacity of its existing solar power plant, going from the existing 30 MW to 45-50 MW.

The optimisation of the open pit involves several parts – the aforementioned strip ratio changes, deferred processing of stockpiles and an optimised fleet strategy. The latter will see Centamin purchase an additional five trucks in 2024 to support the life of mine plan, at an approximate cost of $13 million taking the Sukari fleet capacity from some 90 Mt/y to 110 Mt/y.

The gold gravity circuit, meanwhile, will be added to the processing facility to improve the recovery of the coarse gold found in the higher grade ore from both the underground and open pit. Construction of this is expected to be completed in the first half of 2025 for an estimated capital cost of up to $20 million.

Centamin also mentioned further upside opportunities to this life of mine plan, including an expansion of dump leach operations, further open pit and plant optimisation, and resource and reserve growth.

Martin Horgan, CEO, said: “Today’s new life of mine plan firmly reestablishes Sukari as a global tier one gold asset, with long-term production above 500,000 oz per annum at all-in sustaining costs below $1,000/oz, underscoring our dedication to maximising free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement.

“This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”

CFNW to connect Osisko Mining’s Windfall site to hydro power

Osisko Mining Inc has signed a binding term sheet with Miyuukaa Corp, a wholly-owned corporation of the Cree First Nation of Waswanipi (CFNW), with respect to the construction of proposed transmission facilities and the transport of hydroelectric power to the Windfall project, in the Abitibi greenstone belt of Québec, Canada.

The agreement will see Miyuukaa finance, build, own and operate a 69 kV dedicated transmission line that will transport hydroelectricity to the Windfall project. The power line from the Waswanipi substation to Windfall minimises the environmental footprint and is located 100% on CFNW traditional lands covered by the James Bay Northern Québec Agreement, according to Osisko.

As an end user, Osisko will pay service fees to Miyuukaa. The binding term sheet outlines the general and financial terms of the agreement between Osisko and Miyuukaa, which is for the purpose of ensuring delivery of hydroelectricity over the life of the planned Windfall mill as required. Terms will be further outlined in a definitive agreement to be entered into between Osisko and Miyuukaa, which is expected to be completed in the coming month.

Last month, Osisko released a definitive feasibility study on Windfall that outlined a 3,400 t/d milling operation able to produce an average of 294,234 oz/y of gold over the life of mine.

This agreement wutg CFNW solidifies the collaborative approach between Osisko and the CFNW to sustainably develop energy infrastructure, which will create robust employment opportunities for members of the CFNW, Osisko said. Using hydroelectric power through the final stages of exploration and throughout the planned construction and operations phases will reduce greenhouse gas emissions and the Windfall project’s dependency on fossil fuels.

Work is expected to commence in January on existing access roads, in preparation for brush clearing and construction of the transmission line, while awaiting permitting. The work is projected to take 12 months to complete, with the hook-up date anticipated in the first half of 2024.

Osisko’s Chief Executive Officer and Chairman, John Burzynski, said: “We are proud to announce today’s landmark agreement with Miyuukaa, and to begin preparations for work on the line which will deliver hydroelectricity to Windfall. The advent of power at Windfall will allow us to move away from diesel-generated electricity for our exploration activities. Hydroelectric power availability for the anticipated construction of the Windfall Mine will make a significant difference in both the cost and environmental impact of our future planned activities.”

Irene Neeposh, Chief of the Cree First Nation of Waswanipi, said: “The Cree First Nation of Waswanipi will always prioritise the protection of its territory and of the traditional way of life of its
members but this does not prevent us from also participating in the economic development of our land. Cree ownership of this transmission line is a great example of what can be achieved when resource development companies engage honourably and meaningfully with Indigenous nations and the concerns of all parties are addressed upstream and conciliated. By owning and operating this key infrastructure for the region, with Osisko as a partner, the Cree First Nation of Waswanipi continues on its path to controlling the development of its traditional territory.”

John Kitchen, President and Chief Executive Officer of Miyuukaa, said: “Today’s agreement with Osisko highlights the benefits of what can be achieved when First Nations are involved in the decision making. The electrification of the Windfall project in collaboration with the Cree First Nation of Waswanipi is part of the vision behind the Grande Alliance agreement signed in February 2020 between the Grand Council of the Crees, the Cree Nation Government and the Government of Québec. A vision that calls for a collaborative, long-term, balanced socio-economic development in a spirit of respect for Cree values in the Eeyou Istchee James Bay Territory. The Kuikuhaacheu Transmission Line, to be built by Miyuukaa, is a generational asset that will provide for training, employment and business opportunities for decades while respecting our Cree way of life. Emotions are hard to contain when thinking about the positive impact this will have on the CFNW youth, the core of our members.”

Metso Outotec launches Ferroflame LowNOx burner for pelletising plants

Metso Outotec has launched the Ferroflame™ LowNOx burner for travelling grate pelletising plants to enable pellet plant operators to, it says, achieve the stringent nitrogen oxide emission targets with ease.

The new burner is part of the company’s Planet Positive offering focused on environmentally-efficient technologies.

The Ferroflame LowNOx burner uses high-speed dilution, which is an effective way to improve the combustion process and reduce NOx emissions. It works seamlessly with natural gas, and tests demonstrate that can also be used with diesel and coke oven gas, according to Metso Outotec.

“We are very excited about the Ferroflame LowNOx burner, our emission- and cost-efficient alternative to minimise NOx emissions from the combustion process,” Dr Andreas Munko, Senior Product Manager, Ferrous and Heat Transfer at Metso Outotec, said. “Its functionality and performance with natural gas have been proven on site. The burners have been operating successfully at a client site since 2019.”

Metso Outotec says its Ferroflame LowNOx burner offers an up to 80% reduction of NOx emissions, an expected thermal penalty on natural gas circa-10% and an increased pellet homogeneity and quality.

Fresnillo completes conversion of Herradura haul truck fleet to Cat dual-fuel system

In its recently released 2021 financial results, Fresnillo confirmed it had completed the conversion of its haul truck fleet at the Herradura gold mine in Mexico to a dual-fuel system leveraging both diesel and liquefied natural gas (LNG).

The company started its dual-fuel journey all the way back in 2016 when, together with Caterpillar, it trialled/piloted the mining OEM’s Dynamic Gas Blending™ (DGB) dual-fuel technology on two prototype trucks as part of a strategy at Herradura to reduce both its carbon footprint and costs.

Caterpillar’s dual-fuel DGB technology works by blending lower cost LNG with diesel fuel, with the resultant improvements in fuel, emissions and maintenance adding up to millions of dollars each year in cost savings, the mining OEM says.

Following some good initial results from Herradura, the company made plans to roll out this technology across its fleet, converting its haulage fleet’s diesel engines to a dual-fuel system, which optimises consumption by automatically switching between diesel and LNG depending on the terrain.

The Herradura fleet consists of Cat 785C and 793D haul trucks, among others.

A Fresnillo spokesperson told IM: “The 785C series consume approximately a 40:60 diesel-LNG mix, while the 793D has a 65:35 ratio, thus achieving, in 2021, a reduced energy factor of 20.97% and 18.68%, respectively.

“To date, we’ve recovered 35% of our investment through fuel savings, which considers both the LNG conversion kits and the biomodal supply station.”

The company has now converted 31 of its 785Cs to run on this mix, along with 10 793Ds. It has also invested in infrastructure to ensure it has the appropriate LNG storage capacity at Herradura.

Gold Fields to trial Caterpillar dual-fuel solution on haul trucks at Tarkwa mine

Gold Fields plans to test the use of LNG to power haul trucks in a trial at its Tarkwa open-pit gold mine in Ghana, CEO Nick Holland told attendees of the IMARC Online event this week.

Speaking on a panel reviewing progress of the Innovation for Cleaner, Safer Vehicles (ICSV) initiative – a supply chain collaboration between the International Council on Mining and Metals (ICMM) and original equipment manufacturers (OEMs) – Holland said the trial would involve a mix of LNG and diesel fuel at the operation, and four trucks would initially be tested with the fuel combination in 2021.

Gold Fields later confirmed to IM that the trial would take place in the second half of 2021 and involve the use of Caterpillar’s dual-fuel LNG Dynamic Gas Blending (DGB) retrofit system on four of the mine’s Cat 785C 146 t payload dump trucks.

The DGB conversion kits, available on Cat 785C and 793D haul trucks, are a dual-fuel technology that enables miners to substitute diesel fuel with LNG, according to Cat. The use of LNG has been proven to reduce emissions by up to 30%, as well as lower costs by up to 30%, Cat says.

DGB vaporises liquid fuel into natural gas, then replaces diesel fuel with LNG when possible. On average, DGB replaces about 60-65% of diesel with LNG, according to Cat.

Tarkwa, which is 90% owned by Gold Fields, produced 519,000 oz of gold in 2019, 1% lower than the 525,000 oz produced in 2018. It employs Engineers & Planners Co Ltd as mining contractor.

While this trial will potentially lower the company’s carbon emissions – as will Gold Fields’ plan to fit “diesel filters” on all its machines underground in the next 12-18 months – Holland pointed to a much loftier long-term goal during the ICSV panel.

“The challenge to our teams and OEMs is to move away from diesel completely,” he said.

Such a move could see the company employ both battery-powered and hydrogen-powered solutions at its underground mines, he added.

Bis’ UGM backs up growth plans with new Morisset facility

Australia-based underground services provider, UGM, has opened the doors on its new purpose-built diesel and electrical workshop facility in Morisset, New South Wales.

UGM, which forms part of the Bis group, said the location for the new facility was strategically selected for its proximity to the region’s key mining operators, providing enhanced services for customers.

Building on UGM’s existing underground repair, overhaul, field service and spare parts services, the western Lake Macquarie facility was also designed to support UGM in delivering new services to a broader customer set.

Bis Underground Services General Manager, Mark Doyle, said the move will bolster UGM’s diesel and electrical capacity and provide faster expert service for its underground mining and civil customers.

“The Morisset location provides proximity to local mining operations and the opportunity to design a space with a much larger footprint, to support our growth plans.

“The new facility is three times larger, enabling UGM to offer a broader range of niche customer solutions. One of these is growing our tunnelling infrastructure capabilities, including our licensed Mitsui roadheader operations, which services major civil underground projects throughout the Eastern seaboard.”

Zenith Energy and Independence celebrate solar start up at Nova

Operations at Independence Group’s Nova nickel-copper-cobalt operation in the Fraser Range of Australia are now being powered by a mix of diesel and solar energy after the on-site hybrid solar PV-diesel facility started up.

Zenith Energy’s wholly owned subsidiary, Zenith Pacific, built the plant. The ASX-listed power company also owns and operates the facility, which, it said, is already exceeding performance targets for power output and energy efficiency.

The two signed a contract back in 2018, amending an existing power purchase agreement.

Within the 26.6 MW facility is 5.5 MW of state-of-the-art photovoltaic (PV) modules, single axis tracking, inverters and communications and control system technology, according to Zenith Energy’s Managing Director, Hamish Moffat. The system also features high-efficiency diesel-fuelled generators that combine with this control system to optimise solar and diesel power delivery.

Moffat said: “The proprietary hybrid system developed by the company is able to seamlessly manage the fluctuations in solar PV energy production to provide smooth, reliable power, without the need for batteries to stabilise energy delivery to Nova.”

He explained that batteries have their place in energy systems but are still expensive to deploy for these applications.

“Our unique, locally developed hybrid system eliminates the need for batteries and represents a major step forward in the capital cost optimisation, operating efficiency and environmental performance of solar PV hybrid energy systems in remote locations,” he added.

According to Moffat, the system is saving Nova in the order of 6,500 litres of diesel a day, and it is the first hybrid solar PV-diesel installation to have been funded on a commercial, standalone basis – without any government subsidies.

IGO’s Chief Operating Officer, Matt Dusci, said: “At IGO we are striving to reduce our carbon footprint. The implementation of new technologies with the construction of a hybrid‐solar system at Nova will enable IGO to reduce our CO2-equivalent emissions by approximately 6,500 t per annum. The solar facility will also decrease our cost structure through reductions in our diesel fuel usage.”

As part of an agreement between the two companies, Zenith will supply power from the solar PV‐diesel hybrid system for an initial six‐year period, with an option for Independence to extend for a further two years.

Nova is expected to produce 6,750-7,500 t of nickel concentrate in the year ending June 30, 2020, alongside 2,750-3,125 t of copper concentrate and 213-238 t of cobalt concentrate, according to the miner’s September quarter results.

Pure Gold makes its electric investment case

Newmont Goldcorp’s Borden development may have stolen the mine electrification limelight in the last 12-24 months in Ontario, Canada, but with this all-electric mine close to starting up, another project in the province is laying the groundwork to follow in its footsteps.

The Madsen project is a former-operating underground gold mine situated in the renowned Red Lake region. Since acquisition, Pure Gold Mining has been adding ounces to the 43-101 reserve and resource categories, while rehabilitating the old workings to generate a viable plan to re-start mining.

The February feasibility study outlined an economically sound project, costing C$95 million ($72 million) in upfront capital and returning an after-tax net present value (5% discount) of C$247 million using a gold price of $1,275/oz. This study included details of a mining and development fleet made up of a combination of diesel and battery-powered load and haul equipment.

With mine electrification still high on IM’s agenda following the inaugural Electric Mine conference in April, in Toronto, Dan Gleeson spoke with Pure Gold President and CEO, Darin Labrenz, to find out more about the company’s electric equipment plans.

IM: You recently raised C$47.5 million to continue development work and carry out further exploration at Madsen. Can you breakdown how much will go towards exploration/development?

DL: We’ve closed two raisings this year. The one earlier in the year was a C$5.2 million flowthrough raise designated for exploration. Those funds will go towards a drilling program in the order of 12,000 m directed towards those resources and discoveries that lie outside of the feasibility study mine plan…with the goal of being able to bring them into a future mine plan.

The C$47.5 million is what I would call the ‘equity component’ of a project financing package. Some of it may ultimately go into exploration.

Then, in August, we announced the $90 million project financing package with Sprott Resource Lending Corp comprised of a credit facility for $65 million, and a $25 million callable gold stream. This allows us even more flexibility on how we want to explore the exciting tenement as well as other opportunities.

IM: What type of development work is going on at Madsen currently?

DL: Last year, we conducted some trial mining, which involved extending the ramp a short distance; lateral development underneath the base of two stoping areas (as well as a couple of raises into those areas); and rehabilitation of the historical Number 2 level back to the existing shaft to provide secondary egress to the mine. We also initiated dewatering last year and have brought the water level down; right now, we’re holding it constant at about 250 m below surface. We’ve also done a lot of surface work to clean up and prepare the site for future activities.

With the debt financing now complete and a decision to construct by the board, detailed engineering in advance of site development work will commence immediately. We expect surface works and underground development to commence in Q4 (December quarter) of 2019.

IM: Based on current progress, when do you expect to produce first gold at Madsen?

DL: With access to the capital provided by the recently announced financing, the construction of the Madsen Red Lake mine is now fully funded. Combined with the equity financing, this secured approximately C$90 million of immediate funding enabling us to initiate construction and put us on track for first gold pour by late 2020.

IM: What factors came into play when deciding on the use of battery-electric equipment at Madsen?

DL: The key drivers for us were operating costs, environmental benefits and improved working conditions.

The use of electric equipment underground really eliminates a large component of the operational greenhouse gases that would be emitted from the mining operation, but also key is the reduction in ventilation requirements: the use of an electric fleet is going to require about 50% less ventilation. When you look at the life of mine at Madsen – with the combination of power and propane that would be used – you’re looking at savings of around C$41 million by going down the electrification route.

The ventilation benefits really increase with depth as you continue to push the mine down. Electrification allows the mine to push ramps down more efficiently, while reducing operating costs at the same time.

From a social, community and regulatory perspective, the move to a more environmentally friendly operating environment is also being well received.

IM: How did the company balance the capex issues with the opex benefits when choosing battery-electric haulage equipment over conventional diesel?

DL: The capex is higher for electric fleets – these costs are reducing, and I would expect to see them to continue to reduce into the future as that technology advances. Saying that, the increases in capital over diesel equipment are more than covered by the operating cost improvements that come with the reduced ventilation and heating requirements.

In an earlier study we completed we had a more pronounced combination of diesel and electric equipment. One of the things that has allowed us to further electrify this operation is the use of the existing shaft on the property. With this existing shaft, we will be transitioning to an operation that hoists ore and waste up the shaft, which reduces the haulage distance for the electric equipment. From an operational standpoint, in terms of the battery capacity and the need to recharge/replace batteries, it really advances our potential use of electric equipment.

One of the limiting factors in ramp-supported operations is ventilation. As you go deeper and deeper in a mine, you need to drive more and more air down to these depths. Ultimately, you get to a point with deepening a mine where you just cannot push enough air to clean out the diesel from the operating environment. With an electrified fleet, you can have narrower openings and you can push those ramps much deeper as the ventilation requirements are reduced.

IM: Have any investors raised concerns about this planned mine electrification?

DL: While we haven’t received any specific concerns, we have been asked about the technology’s availability and reliability. We can now point to several operations in Canada that are transitioning to electrical equipment. Many of the major equipment suppliers are also transitioning and starting to provide electrified versions of existing diesel equipment. That technology has been rapidly advancing and will continue to do so.

For us, looking to go into operations in the near-term, initially starting with the diesel equipment and transitioning into the electrical equipment reduces any risk from an availability and operating perspective.

IM: Is the move to start with diesel and go into electric also predicated on the flexibility required during development/production?

DL: It’s a few things. Primarily, when you look at the early years of mining, we are mining much shallower and the ventilation requirements are that much lower, so you see limited operational cost benefits when using electric equipment. From a capital perspective, initiating operations with diesel equipment allows us to be capital efficient, as well as equipment availability being high.

As we continue to deepen the mine, we transition into electric technology and then see operational cost improvements. This strategy also allows the industry more time to advance the electric technology.

IM: What was the reason behind the plan to use a tethered 6 t LHD close to the loading station and 6 t diesel LHDs elsewhere?

DL: The use of tethered equipment is a function of how much this 6 t LHD has to travel in the mine plan. Its purpose is to transfer muck into the loading pocket shoot, so it has a limited travel path.

On the other large LHDS, obviously we would use electric equipment should it be available at the time we need to procure it.

IM: Are you looking to use any other battery-powered or tethered equipment underground?

DL: We would look at electric equipment wherever it is practical and available. Currently utility vehicles such as man carriers, telehandlers, etc are available and will be utilised.

It will be something we consider at the time of the purchasing. We would look to use electric equipment as much as possible.

IM: Do you envisage other juniors going down a similar mine electrification route in the near-term?

DL: I believe so.

My perspective on this is that electrification of underground equipment is one of the great innovations in underground mining technology over the last decade. It has a very pronounced impact on operating costs, it obviously improves working conditions underground without the occurrence of diesel particulate matter and improves the ability to move your mine system deeper. It, importantly, also results in a real reduction in greenhouse gases, which reduces the environmental impact of underground mining.

Electrification is one of those rare cases where we see not only a strong operational reason for a move to that technology, but also a pronounced positive impact on the workforce and surrounding community.