Tag Archives: John Welborn

Fenix takes control of road train haulage business to cut Iron Ridge costs

Mine operation news, Mining equipment, Mining mergers and acquisitions, Mining services, Steel and iron ore, , , , , , , , ,

Fenix Resources says it has signed definitive agreements with Newhaul Pty Ltd to acquire Newhaul’s 50% interest in Fenix-Newhaul Pty Ltd, resulting in the consolidation of 100% ownership of the haulage business into Fenix.

Factoring in the upfront consideration of A$7.5 million ($5.2 million) in cash and 30 million Fenix ordinary shares – with contingent consideration of a further 60 million Fenix shares subject to achievement of significant value-based performance milestones – the additional cash flows generated from the consolidation of the company’s haulage operations will result in higher earnings for Fenix and higher dividends available to Fenix shareholders, it said.

Fenix-Newhaul was incorporated in October 2020 as a 50:50 joint venture company to implement the strategic alliance between Fenix and Newhaul. It was established to provide haulage and logistics services to Fenix’s Iron Ridge Project, in the Mid-West region of Western Australia, 490 km from Geraldton Port.

Fenix-Newhaul operates a fleet of 25 quad road trains which provide a daily haulage capacity to Fenix of up to 4,000 t/d. In the last 18 months, Fenix-Newhaul has hauled the equivalent of over 1.72 Mt of high-grade iron ore to Geraldton, completing over 15,000 round trips travelling almost 15 million km.

The Fenix-Newhaul business provides additional logistics support to Fenix’s operating iron ore loading facilities at Iron Ridge.

The business includes a driver change-over facility and a driver accommodation base at Cue, as well as a company-owned 110,000 sq.m depot in Geraldton with 24-hour workshop and administration support.

Fenix said the transaction will deliver lower operating costs for Fenix with additional value expected from operational flexibility advantages, as well as unlocking new growth opportunities that can now be explored for the benefit of Fenix. It quantified the former as cutting FOB costs by circa-A$10/t ($6.9 t), enabling Fenix to target total C1 FOB cash costs of circa-A$70/t (wet).

Rob Brierley, Managing Director of Fenix, said: “Consolidation of Fenix-Newhaul ownership is an important strategic initiative as it immediately reduces our haulage costs. It provides Fenix with a significant advantage over our peers given haulage costs are the largest cost input for Mid-West iron ore miners.”

John Welborn, Chairman of Fenix, said: “Fenix-Newhaul is a highly profitable state-of-the-art logistics business which is an essential component of Fenix’s business success. Consolidating 100% ownership is a smart move which will reduce our costs and provide operational flexibility. These advantages will make our business significantly more resilient and robust to commodity price volatility. The transaction is a key outcome from the board’s recent strategic review and provides Fenix with a vastly improved platform to evaluate and acquire further growth opportunities.”

Austmine 2019 to showcase global mining innovations

Automation, Communications in mining, IoT, Mineral exploration, Mineral processing, Mining equipment, Mining events, Mining services, Mining software, , , , , , , , , , , , , , ,

“Mining Innovation – The Next Horizon” is the tag line for the fast-approaching Austmine conference in Brisbane, Australia.

Taking place at the Brisbane Convention & Exhibition Centre from May 21-23, the program for Austmine 2019 has been developed specifically for those driven by innovation and working within mining companies, mining equipment, technology and services (METS) companies, as well as relevant academia and government, according to the event organisers. Over 800 attendees are expected at the bi-annual event.

“The Next Horizon for the industry will see fundamental shifts in mining technology which will alter the entire value chain, placing an emphasis on current planning decisions to ensure optimal future outcomes,” Austmine’s organisers said.

The three-day program contains over 40 presentations featuring more than 50 experts drawn from six continents, as well as hands-on workshops, panel discussions, and networking opportunities, held in conjunction with the sold-out exhibition, featuring over 90 of the industry’s foremost companies.

Austmine Chief Executive Officer, Christine Gibbs Stewart, said: “This is now the leading mining innovation conference in the world; there are a lot of conferences out there, but nobody is as sharply focussed on innovation as we are.

“We have brought together the premiere thought leaders around innovation, which is quite exciting for us; the fact that we have so many international speakers and attendees is a credit to our previous conferences.

“It demonstrates that overseas miners are interested in what is happening in Australia, and they see Australia leading the way with some of the new innovations and technologies that are entering the market.”

Current confirmed speakers include Rag Udd (Vice President, Global Transformation, BHP), Natascha Viljoen (Global Head of Processing Operations, Anglo American), Marco Orellana (CIO, Codelco), Rob Labbé (Director of Information Security, Teck Resources), Rafael Estrada (CIO & Manager of Information Systems, Telecommunications and Process Control, Antamina Mining), John Welborn (Managing Director & CEO, Resolute Mining), and Frans Knox (Head of Production, BMA Coal, BHP).

The conference themes range from new machinery technology and techniques, including automation and artificial intelligence, as well as the human element of mining, the use of analytics and big data, digital connectivity in mining, and finally sustainability for the industry, encompassing renewable resources and resource management.

The event features the Austmine Industry Leaders’ Dinner and Awards on May 22, which will also celebrate the association’s 30 years of advocacy for the Australian METS sector.

Resolute hits milestone at Syama sublevel cave gold project

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Resolute Mining Limited has commenced sublevel cave ore production at the Syama Underground project in Mali, West Africa.

The extraction of first ore from the southern end of the 1105 level of the Syama sublevel cave marks the anticipated beginning of the main caving operation at Syama and the achievement of a major milestone for the company, Resolute said.

Resolute’s Managing Director and CEO, John Welborn, said: “Syama will be the world’s first, purpose built, fully automated sublevel cave gold mine. It is a world-class, long life, low cost asset that will deliver long term benefits to our shareholders, stakeholders, and local Mali communities for years to come.”

Resolute has partnered with Sandvik to deliver the automation solution at Syama, with the OEM also supplying the underground fleet, which includes automated Sandvik TH663 trucks and LH621, LH517 and LH514E LHDs.

Welborn went on to say Syama would be the most sophisticated and advanced gold mine in Africa.

“Our investment in exploration, infrastructure, technology, power, and innovation at Syama has transformed a world-class orebody into a world-class mine,” he said.

Resolute has an ambition to be a leader in sustainable and responsible economic growth in Africa, according to Welborn. The company recently announced plans to build a new 40 MW Syama Solar Hybrid Power Plant which will deliver an expected 40% savings on power costs and is expected to be the world’s largest mine-based, off-grid fully integrated independent solar hybrid power plant.

In addition to this, the company is working on Project 85, a series of sulphide processing plant upgrades, that will enable the company to achieve improved recoveries from high-grade ore sourced from the new sublevel cave, he said.

“The combination of mine automation, improved recoveries, and lower cost power has the potential to increase Syama site production to 300,000 oz/y of gold and reduce life-of-mine all-in sustaining costs to below $750/oz,” he added.

The initial development of the sublevel cave infrastructure including the twin declines and access to the first four sublevel levels of the cave, the 1130, 1105,1080 and 1055 sub levels, has been established. Approximately 400,000 t of development and long hole stoping ore have been extracted from the underground mine to date. Mining rates will gradually build up over the first half of 2019 and are expected to reach nameplate capacity of 200,000 t/mth by the end of June 2019.