Tag Archives: Dugald River

Solar farm goes live at MMG’s Dugald River zinc-lead mine

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MMG says the new solar farm at its Dugald River operations in Australia has hit the commerical operation milestone, two months after construction was completed.

Reporting in its March quarter results, the company said it expected the solar project to reduce the mine’s carbon footprint and provide immediate energy cost savings, with approximately one-third of gas-fired power used in Dugald River operations expected to be replaced.

Back in late-2021, MMG signed an agreement with APA Group to construct 44 MW of capacity to serve the Dugald River zinc-lead mine in Queensland, with operations expected in the March quarter of 2023.

Dugald River resumed production on March 21 after a suspension of 34 days due to a fatal incident at the mine involving two contractors from Barminco. MMG says the mine continues to ramp-up through April with the focus remaining on safely returning its workforce to the underground environment. Production in 2023 is now expected to be in the range of 135,000 t and 150,000 t of zinc in zinc concentrate, lower than the prior guidance of 170,000 t and 185,000 t.

MMG brings in new Sandvik equipment for owner-operator transition at Dugald River

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MMG Limited has acquired new underground equipment for its Dugald River zinc-lead mine in Queensland, Australia, as it gears up to make the transition from a contract miner-led operation to a run of mine (ROM) owner-operator model in 2023.

Among the purchases are three Sandvik DL421-15C longhole drills that will allow the team to drill holes up to 54 m in length and 115 mm in diameter.

A further seven Sandvik TH663i 63-t-payload underground haul trucks (pictured) have been purchased to support operations.

“These important acquisitions support Dugald River’s new operating model as ROM owner operator into 2023,” the company said.

Dugald River’s mining operations were previously overseen by Perenti-owned Barminco as part of a production and development contract which ends on December 31. Redpath Australia was awarded a new underground mining services contract at the mine, earlier this year.

Redpath awarded underground mining services agreement at MMG’s Dugald River mine

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Redpath Australia says it has been awarded a new underground mining services contract at MMG Limited’s Dugald River mine in northwest Queensland.

Dugald River is one of the world’s top 10 zinc producers, located some 65 km northwest of Cloncurry. It produced 41,655 t of zinc concentrate and 4,740 t of lead concentrate in the June quarter.

The contract involves all underground development activities and will require up to 200 personnel in various management, operational and trades roles, with mobilisation commencing in the coming months, Redpath said.

Back in September 2020, Barminco agreed the terms of a variation and extension to its development and production contract at Dugald River, with the variation extending the term of the contract by 18 months to December 31, 2022.

APA Group to deliver solar power to MMG’s Dugald River mine

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Stage one of APA Group’s plan to build an 88 MW solar farm in Mount Isa, Queensland, Australia, has got underway with a Final Investment Decision to construct 44 MW of capacity to serve MMG’s Dugald River zinc-lead mine in the state.

The investment of more than A$80 million ($60 million) will see APA Group provide solar power to the mine as part of a 15-year offtake agreement.

APA also entered into a 32-year lease agreement with the Queensland Government to locate the solar farm on a site near APA’s Diamantina Power Station Complex. The first stage of the solar farm is expected to be operational by the March quarter of 2023, while APA says it is in advanced discussions with a number of customers to commit to the development of stage two, reaching 88 MW.

APA CEO and Managing Director, Rob Wheals, said the Mica Creek Solar Farm will deliver lower emissions power underpinned by the reliability of APA’s gas-fired power, while reducing the average cost and emissions of power across Mount Isa.

MMG, meanwhile, said the solar agreement will supply Dugald River with renewable energy to reduce its carbon footprint and provide immediate energy cost savings once operational in early 2023.

“The new agreement further supports MMG’s commitment to supporting the global transition to a low carbon economy with the company’s key products, copper and zinc, playing a critical role in the development of sustainable technologies such as solar panels, wind turbines, electric vehicles and batteries,” it added.

Mine cooling solution set for 2022 start up at MMG’s Dugald River zinc mine

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MMG’s Dugald River mine, in Queensland, Australia, is designing, supplying and installing a A$20 million ($14.7 million) cooling solution that, it says, will bring 9.5 MW of bulk air underground to facilitate ongoing zinc extraction.

MMG Dugald River General Manager, Tim Akroyd, said consistent temperature control is critical for the safety of the mine’s employees and contractors working in northwest Queensland’s hot climate.

“MMG has sourced a long-term refrigeration plant and ventilation system designed to deliver a safe work environment for our teams,” he said.

“To sustain mine production at a depth of 500 m below ground, cooling is essential and dramatically improves air quality. Mine ventilation firm, BBE Consulting, helped to scope options that are now spearheading MMG’s cooling works that are well underway, planned for completion by early 2022. The cooling system will be operational for the life of the mine, a period of up to 20-plus years.”

The scope of work covers the installation of 9.5 MW bulk air-cooling capacity, with a centralised refrigerative plant with distributing water circuits to the south and north mine. Water-cooled custom mine chillers, bulk air coolers, cooling towers and ancillary equipment are being deployed.

Water-cooled refrigeration machines have a lower capital project cost and use less power over a 20-year project life, when compared with air-cooled refrigeration machines, MMG said.

Suppliers and local contractors include CivilPlus Constructions, GNH Engineering, Bell Rural Contracting and Total Generators in Cloncurry to name just a few.

Barminco wins 18-month, A$140 million contract extension at MMG’s Dugald River mine

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Barminco has agreed the terms of a variation and extension to its development and production contract at MMG’s Dugald River zinc-lead mine, in north Queensland, Australia.

In addition to several amended contract conditions, the variation extends the term of the contract by 18 months to December 31, 2022, with two, one-year options to extend further. The value of the 18-month extension for Perenti’s hard-rock underground miner is approximately A$140 million ($103 million).

Barminco has been operating at Dugald River since 2012. IM recently reported MMG and Barminco were trialling an automated Sandvik LHD at the mine to further boost production.

Barminco’s Chief Executive Officer, Paul Muller, said: “We are excited to continue our relationship with MMG, which began in 2001 at the Rosebery mine in Tasmania. Dugald River has been a significant project for Barminco since commencement during 2012, and this extension will take our valued relationship with MMG to over 20 years.”

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said Perenti had a “robust” tender pipeline of A$8.8 billion and its Underground Industry Sector Group had secured more the A$540 million in contract extensions this financial year.

MMG, Barminco trialling Sandvik autonomous LHD at Dugald River

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MMG and Barminco are trialling an automated LHD at the Dugald River mine, in Queensland, Australia, as both miner and contractor look to further boost production at the zinc-lead operation.

While still early days, Barminco (part of the Perenti Group) has a fully autonomous Sandvik LH621i LHD running at the mine, having introduced the loader to increase output.

Sandvik says the AutoMine®-ready LH621i is an intelligent 21 t loader designed for rapid mine development and large scale underground mine production.

“With superior hydraulic power for fast bucket filling and drivetrain power for high ramp speed, the Sandvik LH621i is designed to quickly clear tunnel headings for rapid advance rates,” the OEM added.

MMG’s Dugald River produced 35,505 t of zinc concentrate and 4,277 t of lead concentrate during the March quarter of 2020. While both numbers were lower than the same period of 2019 and the December quarter that preceded it due to lower grades, mining and milling volumes of 462,570 t and 443,378 t, respectively, were both in line with plan.

In this same results release, MMG said of the Dugald River operations: “After an aggressive and successful ramp up during 2019, work in 2020 will continue to focus on opening up new operating areas, to ensure a steady feed of ore to the mill.

“The optimisation of recoveries will be a major area of focus in the processing plant. This work will be key in ensuring Dugald River remains on track to deliver annual mine capacity of 2 Mt and targeted zinc-equivalent production in excess of 200,000 t per annum, by 2022.”

The mine, which achieved commercial production in May 2018, is expected to produce 170,000-180,000 t/y of zinc concentrate in 2020.