Tag Archives: Jonathan Price

Teck-ICMM-NaturePositive

ICMM mining members make commitments to support a nature positive future

Environmental, Sustainable mining, , , ,

Leading global mining and metals companies have today committed to take urgent action to support a nature positive future by 2030 that promotes the health, diversity and resilience of species, ecosystems and natural processes. With responsibly produced minerals and metals playing a critical role in advancing global sustainable development goals, ICMM members, representing a third of the global industry, have pledged that meeting this demand for critical materials must not be at the expense of nature.

Shaped by experts and leaders from a range of disciplines from across ICMM company and association members, as well as from civil society, academia, Indigenous representatives, and investor and disclosure bodies, ICMM’s new commitments set out a five-point plan for nature:

  • Protect and conserve pristine areas of our natural environment: no mining or exploration in World Heritage Sites and respect all legally designated protected areas;
  • Halt biodiversity loss at our operations: achieve at least no net loss of biodiversity at all mine sites by closure against a 2020 baseline;
  • Collaborate across value chains: develop initiatives and partnerships that halt and reverse nature loss throughout supply and distribution chains;
  • Restore and enhance landscapes: around operations through local partnerships, including with Indigenous Peoples, land-connected peoples and local communities; and
  • Catalyse wider change: acting to change the fundamental systems that contribute to nature loss and fostering opportunities for nature’s recovery.

These commitments apply to activities across all four realms of nature – land, freshwater, oceans and atmosphere – leveraging companies’ areas of influence – from their direct operations, value chains and wider landscapes, through to creating the conditions required to achieve systems transformation. They are supported by transparent disclosures on performance outcomes, including publishing the results of nature-related impact and dependency assessments, and setting targets to address these, ICMM says.

Rohitesh Dhawan, President and CEO, ICMM, announced the nature commitments at a Nature Positive Initiative event in Davos today, commenting: “The mining industry owes its very existence to nature. At a time when the health of our natural world is in peril yet the demand for critical minerals is set to soar, we have committed to significant collective action to help create a nature positive future. These commitments build on the significant individual goals and actions of ICMM members over several decades, including habitat conservation, species protection, and landscape restoration.

“There is no escaping that the act of mining directly affects nature, which is why the cornerstone of our commitments is to ensure at least no net loss of biodiversity at all mine sites by closure against a 2020 baseline. In addition, we have committed to take steps in our value chains, landscapes, and the wider systems in which we operate so that the total impact of our actions contribute to a nature positive future. These will be taken with the critical participation of Indigenous and land-connected peoples, and local communities, whose rights, values, and knowledge will be central to our actions.”

ICMM members have already implemented a number of initiatives focused on conservation and restoration, for example, strengthening protection for areas of high biodiversity value, developing innovative technologies for improved seed performance during landscape revegetation, and defending important habitats from invasive species. ICMM’s new commitments will enhance these to drive performance across the industry, it says.

Jonathan Price, President and CEO, Teck Resources Limited, and Chair of ICMM’s Council Nature Advisory Group, said: “Collaboration across all sectors is essential to help stop and reverse nature loss and ICMM’s nature commitments will help companies to scale up their existing efforts and drive local and regional partnerships to better protect and restore our landscapes and ecosystems for the benefit of all.

“At Teck, we’re taking action to conserve and restore nature while we also provide the critical minerals the world needs to decarbonize. For us, that means implementing initiatives including conserving and reclaiming at least three hectares for every one hectare we affect through mining.”

Marco Lambertini, Convenor of the Nature Positive Initiative, said: “Today’s commitment from the mining sector to contribute to a nature-positive future is welcome. Sector-wide coordination is key to halting and reversing today’s accelerating loss of biodiversity. To help secure a nature-positive world, it will now be critical that ICMM’s members translate this commitment into truly nature-positive outcomes. This means both safeguarding areas with high biodiversity value and contributing in their operations to measurable gains in the health, abundance, diversity and resilience of species, ecosystems and natural processes.”

The commitments on direct operations, value chain and governance and transparency apply to all members, and individual members will select at least one of three commitment options relating to wider landscapes and systems transformation, in order to maximise their positive contribution.

These commitments were published as part of a Position Statement setting out ICMM members’ approach to contributing to a nature positive future guided by the Kunming-Montreal Global Biodiversity Framework and ICMM’s existing commitments in relation to protected areas, Indigenous Peoples, water and respecting human rights as per the United Nations Guiding Principles on Business and Human Rights. Action on nature is an integral part of ICMM’s Mining Principles, representing our member companies’ comprehensive commitment to a responsible mining and metals industry.

Elkview

Teck to exit steelmaking coal business with Glencore, Nippon Steel deals

Coal technology, Mining mergers and acquisitions, Steel and iron ore, , , , , , , , ,

Teck Resources has agreed to sell its entire interest in its steelmaking coal business, Elk Valley Resources (EVR), through a sale of a majority stake to Glencore for an implied enterprise value of $9.0 billion, and a sale of a minority stake to Nippon Steel Corporation (NSC).

The sale of Teck’s steelmaking coal business at the implied enterprise value of $9 billion on a 100% basis achieves a simple and complete separation of steelmaking coal from base metals.

Glencore has agreed to acquire 77% of EVR for $6.9 billion in cash, payable to Teck at closing of the Glencore transaction, subject to customary closing adjustments.

NSC has agreed to acquire a 20% interest in EVR in exchange for its current 2.5% interest in Elkview Operations plus $1.3 billion in cash payable to Teck at closing of the NSC transaction and $400 million paid out of cash flows from EVR. NSC will also enter into a long-term steelmaking coal offtake rights arrangement at market terms, continuing NSC’s long-standing commercial arrangement for the purchase of steelmaking coal from the Elk Valley.

POSCO has advised Teck it intends to exchange its current 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture, for a 3% interest in EVR. At closing of the Glencore transaction, Glencore will acquire from Teck any remaining receivable payable to Teck by EVR.

Teck will continue to operate the steelmaking coal business and will retain all cash flows from EVR until closing of the Glencore transaction, estimated to be $1 billion. Following the closing of that transaction, Teck will have no further financial interest in EVR.

Key historical information on EVR, as reported by Teck, is outlined below:

  • Production of steelmaking coal of 21.5 Mt in 2022 and 17.3 Mt year to date to September 30, 2023;
  • EBITDA of C$7.4 billion ($5.4 billion) in 2022 and C$3.7 billion year to date to September 30, 2023;
  • Profit before tax of C$6 billion in 2022 and C$3.1 billion year to date to September 30, 2023; and
  • Gross assets as at September 30, 2023 of C$18.5 billion.

Jonathan Price, President and CEO, Teck, said: “This transaction will be a catalyst to re-focus Teck as a Canadian-based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company. This sale will ensure Teck is well-capitalised and able to realise value from our base metals business and deliver strong returns to our shareholders while maintaining a robust balance sheet. Glencore has made strong commitments that will create new benefits for Canada and the Elk Valley and ensure responsible stewardship of the steelmaking coal operations for the long term.”

Gary Nagle, CEO of Glencore, said: “We are pleased to have reached agreement to acquire Teck’s steelmaking coal operations in the Elk Valley. These world-class assets and the experienced people that operate them are expected to meaningfully complement our existing thermal and steelmaking coal production located in Australia, Colombia and South Africa. Glencore has high regard for the business that has been developed over many decades in British Columbia and looks forward to maintaining and enhancing its operational performance, environmental stewardship and social contribution.

“We are dedicated to working with all governing bodies and stakeholders to ensure that the transaction is of benefit to Canada, which includes a commitment from Glencore regarding employment, engaging in further reclamation efforts and to engage constructively and meaningfully with the Indigenous Nations in the Elk Valley. This transaction also deepens our longstanding commitment to Canada, supporting our position as one of the largest diversified miners and suppliers of critical minerals in Canada, in one of the world’s leading mining jurisdictions.”

Closing of the Glencore transaction is subject to customary conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions, and is expected to occur in the third quarter of 2024. The NSC transaction is also subject to customary conditions, including receipt of certain competition approvals, and is expected to close in the first quarter of 2024. These transactions are not inter-conditional.

Teck to deploy first electric tug boats in Canada at Neptune Terminal

Environmental, Mine operation news, Mining services, Sustainable mining, , , , , , , , , , ,

Teck Resources has announced an agreement to deploy two electric tug boats at the Neptune Terminal in Vancouver, British Columbia, in support of Teck’s climate goals.

This marks the first electric tugs operating in Canada as a full tugboat package for harbour assist and tug services, according to Teck.

Under the agreement, SAAM will furnish two ElectRA 2300 SX tugs commencing operation during the second half of 2023, which are expected to eliminate over 2,400 t/y of greenhouse gas emissions. In addition to emissions reductions, using electric tugs will also reduce underwater noise, benefitting marine life in the harbour.

“Working with SAAM Towage to further reduce the greenhouse gas emissions associated with transportation of our products is another step forward in achieving our climate goals and contributing to global climate action,” Jonathan Price, CEO of Teck, said. “Collaborating with transportation providers to develop green transportation corridors is part of our climate action strategy and supports our goal of net zero emissions by 2050.”

Sander Bikkers, President, SAAM Towage Canada, added: “With Teck and Neptune Terminals, SAAM Towage has found value aligned partners who want to drive sustainable environmental change through innovation. This partnership is based on a shared commitment to do our part to address the global challenge of climate change by reducing our carbon footprint.”

The ElectRA Tugs are designed by Vancouver-based Robert Allan Ltd and will be built at Sanmar Shipyards in Turkey.

Neptune is owned by Canpotex Bulk Terminals Limited, a Canpotex affiliate, and Teck Coal Partnership, a subsidiary of Teck Resources.

This announcement builds on Teck’s progress to work with partners to reduce emissions across its supply chain and achieve a 40% reduction in shipping emission intensity by 2030.

Teck previously announced an agreement with Oldendorff Carriers to employ energy-efficient bulk carriers for shipments of Teck steelmaking coal from the Port of Vancouver, reducing 45,000 t/y of CO2, equivalent to removing nearly 10,000 passenger vehicles from the road, according to the company.

Teck has also announced a pilot of a fully electric on-highway transport truck to haul copper concentrate between Teck’s Highland Valley Copper Operations in south-central BC and a rail loading facility in Ashcroft, BC.

Teck’s climate action strategy also includes goals to reduce carbon intensity across operations by 33% by 2030 and be a net-zero operator by 2050.

BHP to rollout light electric vehicle trials to iron ore, nickel in WA

Base metals, Environmental, Equipment maintenance, Mine operation news, Mining equipment, Mining services, Power supply for mines, Sustainable mining, , , , , , , ,

Speaking at the Resources Technology Showcase, in Perth, Western Australia (WA), this week, BHP’s Chief Transformation Officer, Jonathan Price, said from the trial of light electric vehicles at its Olympic Dam mine, in South Australia, had come back with positive results and it would soon expand testing to its iron ore and nickel businesses in WA.

“The Olympic Dam trial is providing us with valuable data and information to understand how we may continue to electrify different forms of transportation, and material movement in our operations,” he told delegates.

“Early results indicate significantly reduced maintenance time, and very positive operator feedback on the vehicle – not only are they smooth to drive, they’re quiet – and with no diesel exhaust and dramatically reduced greenhouse gas emissions.”

BHP worked with Adelaide-based Voltra on the light electric vehicle trial at Olympic Dam, with the technology company developing a 100% electric drive LandCruiser 79 Series (pictured) to be put through its paces in full underground fleet operation.

Still on the theme of decarbonisation, last month, BHP announced four new renewable power agreements at its Escondida and Spence operations, in Chile. The contracts will displace 3 Mt/y of CO2 from 2022, compared with the fossil fuel based contracts they are replacing, according to Price.

He said the company was also “exploring options to do something similar” in Australia.

Price added: “BHP is currently in the market for innovative power solutions for our Eastern Australia Mineral Assets. We have received a positive response from the market, consulting over 40 different parties.”

He said the company expected to make a decision on this in the first half of 2020.

And, on the subject of Integrated Remote Operations Centres (IROC), which BHP has used to expand its use of automation and digitalisation, Price said the company is looking to expand its reach again.

“We launched our very first IROC here in Western Australia back in 2013,” he said. “Three years later we took the lessons learnt from this and built an IROC in Brisbane, overseeing our east coast coal operations.

“Now we have a centre operational in Santiago and have one planned in South Australia,” he said.