Tag Archives: mine electrification

Newmont Goldcorp’s ‘all-electric’ Borden mine reaches new milestone

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Close to a week after cutting the ribbon on its Borden mine, near Chapleau, Ontario, Newmont Goldcorp has achieved commercial production safely, on schedule and within budget at the ‘all-electric’ mine.

The mine features state-of-the-art health and safety controls, digital mining technologies and processes, and low-carbon energy vehicles – the latter provided by the likes of Sandvik and MacLean Engineering.

Tom Palmer, Newmont Goldcorp President and Chief Executive Officer, said: “Consistent project delivery and disciplined operational execution remain cornerstones of our business and are central to creating long-term shareholder value. Borden joins the next generation of Newmont Goldcorp mines and leverages our leading land position to anchor this new gold district in Ontario.”

At 1,000 sq.km, Borden’s land package represents additional exploration upside as the deposit remains open at depth in a favorable mining jurisdiction, according to the miner. Ore from Borden is processed at the existing mill at Porcupine, in Timmins, profitably extending operations at the gold mining complex.

In recognition of Borden’s contribution to the future of safe and sustainable mining, the Canadian and Ontario governments each granted C$5 million ($3.8 million) towards electrification of the mine.

 

Mine electrification is inevitable, Artisan Vehicles’ Kasaba says

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As mining companies around the world seek the best ways to approach their sustainability goals, electrification has emerged as one of the most promising solutions.

With this in mind, Sandvik Mining and Rock Technology recently acquired California-based Artisan Vehicle Systems, a leading manufacturer of battery-electric underground vehicles.

Recent studies show that the electrification of a mine has the potential to reduce energy costs by up to 25% in existing operations, and as much as 50% in new mines. Looking to the future, electric power is set to become even more affordable, with the cost of renewable electricity from solar and wind power technologies projected to fall by as much as 59% by 2025, according to the International Renewable Energy Agency.

Mike Kasaba, Managing Director, Artisan Vehicle Systems, a Sandvik Mining and Rock Technology business unit, says electrification has the potential to disrupt every industry in which mobile equipment is used. Looking across all segments, development efforts are currently under way with virtually every manufacturer of vehicles or other mobile machines. Why is this? Kasaba says it comes down to the simple fact that the customers who use these machines are demanding it.

“Regardless of whether these customers are individuals, construction firms, government fleets, trucking companies, ports or mining and tunnelling organisations, what the vast majority of them have in common is that they are embracing a fundamental shift in technology away from fossil fuels,” Kasaba says.

Reducing diesel emissions to zero makes the underground working environment safer for the miners while ensuring that emissions are not vented into the environment. But, beyond the safety aspect and the obvious environmental benefit to the planet, Kasaba explains that electric mines also deliver advantages in terms of economy, productivity and performance.

“As the cost of this new technology decreases and the range, reliability and performance increase, electric drive systems are starting to outperform fossil fuel systems on overall cost of ownership, competitive advantage, return on investment and driver preference,” he says.

Many of these new mobile machines are being built from the outset with future technological advancements in mind.

“They are ready for remote upgrades, range performance improvements and more,” he says.

When it comes to the all-important economic arguments, a mine site stands to benefit in several ways from electrifying its mobile fleet. The cost of the ventilation systems, one of the most expensive aspects of developing and operating a mine, can be reduced by anywhere from 30-50% when using battery-electric machines that produce zero diesel emissions. Furthermore, less ventilation translates to a net reduction in electricity use and therefore a more energy efficient mine site overall. Meanwhile, the eliminated cost of buying diesel fuel equates to tens of thousands of dollars in savings – per vehicle and per year.

Maintenance costs are also reduced, since electric vehicle propulsion rigs have around 25% fewer parts than diesel propulsion rigs. Battery-electric machines produce one-eighth of the heat produced by a diesel machine, which can make new projects in deep mines, and mines with active geothermal conditions, more viable than they would otherwise be, due to the reduced heat factor.

Last but not least, regulatory bodies are gradually starting to favour mines that commit to an all-electric underground environment, resulting in approvals for permits that would otherwise be denied, along with a faster permitting process, both of which are potentially game-changing for mining companies around the world.

For its size, an electric motor has far more power and torque than a combustion engine. Since total horsepower does not have to be limited to mitigate ventilation system costs, far more power can be packed into a smaller machine. As a result, battery-electric machines can be designed from the ground up to handle more torque and power and therefore increase productivity in any given machine size class.

Although the advantages of electric mining speak for themselves, the industry is taking time to adapt. However, Kasaba says change is in the air.

“There are no obstacles preventing the use of electric,” he says. “The machines are at least as productive as diesel machines, the overall costs are lower, and batteries and electric components are being made in high volumes so production is scalable.” He adds that throughout modern history most technological advancements that have offered greater productivity, environmental, health and other benefits have tended to come with trade-offs such as increased costs, but this is not the case with electrification.

“The view is that, in the case of the electrification, overall costs will be lower,” Kasaba says. “This, coupled with the fact that zero diesel emissions are inherently healthier and safer for mine site workers, makes electrification inevitable.”

As a leading supplier to the mining industry, Sandvik Mining and Rock Technology has been quick to recognise the huge potential benefits of electrification. In February this year, Sandvik completed the acquisition of Artisan Vehicle Systems to secure access to its cutting-edge technologies and solutions, which include proprietary battery packs, electric motors, power electronics, software and control systems for hard-rock underground mining.

Mats Eriksson, President of Sandvik Mining and Rock Technology’s Load and Haul division, says this is a logical step in complementing the market-leading competence and experience that already exists at Sandvik’s state-of-the-art battery-electric vehicle and electrification research centre at the Load and Haul facility in Turku, Finland.

“Artisan is a front-runner in electric vehicle development, and Sandvik’s new R&D foothold in this area will complement the know-how and skills we already have from developing and making world-leading loaders and trucks,” Eriksson says, adding that the acquisition is advantageous to both parties.

While Sandvik will benefit from Artisan’s quick, agile approach to innovation and battery-electric vehicle expertise, Artisan will gain access to the established strength and operational experience of Sandvik, which has been the market leader in tethered electric underground loaders since 1981.

“The acquisition of Artisan battery-electric vehicles places Sandvik in a leadership position in terms of electrification within underground mining, which is clearly the direction in which the industry is heading,” Eriksson concludes.

The full version of this article appeared first as a Sandvik Solid Ground online news story, see following link: https://solidground.sandvik/an-electric-future/

3ME and KESHI sign flameproof electric motor distribution deal

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3ME Technology has signed a 10-year distribution deal with KESHI Group that will see its e-mobility solutions equipped with flameproof electric motors.

The agreement comes as 3ME Technology continues to build its strategic position in the mine electrification sector, including technology offerings for underground hazardous areas (flammable atmospheres) where challenging flameproof equipment certifications exist.

3ME said: “3ME Technology aims to provide superior electro-mobility (e-mobility) solutions to improve safety, performance and sustainability with one of its key target industries being mining. KESHI Group is a full-service provider of hazardous area mining auxiliary transportation equipment, engaged in the development, manufacturing, sales and service of hazardous area mining transportation solutions.”

KESHI Group, through collaboration with UQM Technologies (now Danfoss Editron), developed a flameproof electric motor designed to meet explosion-proof compliance. 3ME, through its strong relationship with UQM Technologies over the last 10 years, was provided with an introduction to KESHI over 12 months ago, which led to this formalised collaboration.

The current flameproof motors include UQM internal components – named a cartridge – combined with a KESHI Group metal housing. This will be incorporated into 3ME Technology’s flameproof system going forward.

“The distribution deal supports 3ME’s exclusive supply of KESHI-UQM explosion-proof motors into the Australian and New Zealand market,” 3ME said.

3ME Technology CEO, Justin Bain (pictured bottom right, signing contract), told IM: “3ME continues to consolidate key supporting technologies that, when combined with our core battery system and vehicle control software, progresses 3ME’s strategic position in both the local and international mining market and in this case for hazardous areas.

“We have successfully used the highly-reliable UQM (Danfoss Editron) e-motors for many years which, combined with the KESHI flameproof enclosure, provides an excellent new product for our vehicle manufacturer partners supporting hazardous area operations.”

Bain added 3ME looks forward to long-term successful collaboration with KESHI Group and “we have already identified other areas for promising collaboration in both the import and export space”.

Following a recent meeting with Bain and 3ME Technology’s CTO, Steven Howell, at AIMEX 2019 in Sydney, Australia, recently, IM understands the company has been very busy in the workshop with developing partners, with corporate and product updates expected soon.

 

India’s first all-electric, heavy-duty truck ready for 2020 launch, reports say

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Infraprime Logistics Technologies (IPLT) says India’s first all-electric, heavy-duty 60-t truck has had its initial commercial run, with a launch for the country’s construction and mining sectors scheduled for next year, according to local reports.

IPLT says its electric truck, the IPLT Rhino 5536, is the first of its kind to be integrated and deployed in India.

Some of its distinguishing features include the transmission based electric drivetrain, proprietary vehicle control software for improved mileage in material logistics and a battery pack “designed for optimal performance in local conditions”.

The latter has an in-built air-conditioned secondary cooling system to maintain the temperature around each cell at below 35° C even when ambient temperature climbs above 50° C, according to the company. IPLT said the 265 kWh battery pack weighs in at more than 2 t, making it one of the largest packs in use in India, and a 160-kW “twin gun fast charging” system is used to recharge it. This system, it says, could also offer a “blueprint for a pan-India network” of charging devices, it said.

Epiroc books battery-electric orders from mines in Finland, Australia and Canada

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Epiroc says it has recently secured orders for its second generation battery-electric machines from miners in Finland, Australia and Canada.

The orders come less than a year since the mining original equipment manufacturer launched the new range at an event in Örebro, Sweden.

In Finland in the September quarter, Agnico Eagle Mines ordered the Boltec E Battery rig for use at its Kittilä mine, Europe’s biggest gold operation.

The company, as part of the EU-led Sustainable Intelligent Mining Systems (SIMS) project where Epiroc is serving as a coordinator, has also been testing Epiroc battery-electric equipment. A Boomer E2 Battery has been operating for some months at the mine and, in August, a Minetruck MT42 Battery (42 t truck) and a Scooptram ST14 Battery (14 t LHD) arrived as part of the project.

Jari Kolehmainen, Production Manager at Agnico Eagle Mines, said the Boomer E2 Battery had been performing well and a diesel engine had not “been missed”.

He continued: “Operator feedback has been positive and we are looking forward to expanding our fleet with more electrical powered equipment in the near future. Therefore we are also very excited to be testing the battery-powered mine truck and loader. These tests are giving us the confidence to be a successful early adopter of this new and exciting technology.”

In addition to the orders and testing at Kittilä, several orders from other companies have been booked in previous quarters for battery-electric versions of the Boltec rock bolting rig, Boomer face drilling rig, Scooptram loader and Minetruck hauler, the company said.

Epiroc, upon launching its second generation machines in November 2018, said it had clocked up more than 60,000 hours of operating time with these electric machines. It is being helped along the way by battery maker Northvolt and ABB. Epiroc has committed to its Batteries-as-a-service offering that sees the mining OEM provide a warranty for the battery and provide both software and hardware updates on an annual basis.

The company launched its first battery-electric machines in 2016, adding, in November 2018, 14 t and 18 t LHDs, a 42 t truck and a mid-sized drilling family including face drilling, production drilling and rock reinforcement rigs. Epiroc aims to be able to offer its complete fleet of underground mining equipment as battery-electric versions by 2025.

The benefits of this technology include improved health and safety, lower total cost of operation and higher productivity. The advantage is especially significant for deepening underground operations where mining companies traditionally must invest heavily in ventilation to air out the diesel fumes.

Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, said: “We see very strong customer interest for our new battery-electric mining machines. The technology is now well established, and more and more mining companies are realising the significant benefits that come with using electric machines instead of diesel. We are proud to spearhead the mining industry’s drive toward a fossil-free future.”

eMining looks to retain battery-powered haul truck lead

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eMining looks to be two-and-a-half years ahead of its competition with the development of its battery-powered haul truck, the eDumper, but many hurdles still lie ahead for the KUHN Schweiz-owned company to convert this market lead into orders.

Seeing it in the flesh last week at the Ciments Vigier SA limestone quarry, near Biel-Bienne, in Switzerland, IM was impressed with the 63 t (payload) machine.

Comparing it with an original Komatsu HD605-7 – one of which was handily on site – there is not much difference apart from the four battery packs that appear to slot in as if they were always there.

As Gernot Beutle, Sales Project Manager for eMining, confirmed the major changes involved switching the diesel engine out for the electric motor, a change in the hydraulics to improve the lifetime of the equipment and a new truck body (a Duratray rubber suspended dump body). The latter was needed to facilitate the smooth runoff of material from the truck body in winter. Without the heat generated from a diesel engine, there was a possibility the material could get stuck when temperatures plummet – a distinct possibility at the limestone quarry, which is more than 1,000 m above sea level and can see temperatures drop as low as minus-20°C, Beutle said.

There was also a redistribution of the haul truck’s weight to the axles in order to cope with the addition of the four battery packs, which can generate up to 700 kWh of energy.

The eDumper has certainly been run through its paces at the limestone quarry, clocking up more than 1,500 hours, coping with inclines of as much as 13% and having its tyres equipped with chains during the height of winter.

While in most conditions the truck only needs an overnight recharge once every three days, Beutle says the addition of tyre chains in winter can run down the battery more on the incline and result in increased regularity of charging.

On the other hand, the 13% inclines are no problem for the battery-electric truck. With a higher torque than the diesel equivalent, it can quietly accelerate up hills at speeds of up to 40 km/h, with the downhill route seeing the battery recharge thanks to the regenerative braking capacity.

From first looks, the team at the limestone quarry treat the eDumper just like the rest of the mixed truck fleet – which also includes Cat 775Fs. The battery-powered machine tracks the same route to the awaiting Cat 990H wheel loader and carries the same tonnage as the other haul trucks. The operators do, however, appreciate the quietness of operation it offers and that increased power.

One would expect Le Lynx (the name of the inaugural eDumper) to be joined by another unit at the limestone quarry in the not too distant future – indeed there was a second charging station set up at the quarry that would indicate its impending arrival – but finding more buyers for this world-record battery electric machine has proven tricky so far.

Talks with other quarries and mining companies are at various stages, Beutle said, with talks conducted this year potentially turning into purchase orders at the beginning of next year.

Other mining companies – a few falling into the ‘major’ category – had been to visit the quarry and the machine to see it in operation.

The problem eMining and Beutle face in finding another perfect partner like Ciments Vigier is the cost, application, battery life and potential returns these green haul trucks offer.

The battery-powered eDumper is currently likely to cost two-and-a-half-to-three-times more than the diesel equivalent (with the battery packs currently taking up 30-40% of the upfront cost) and, in general, it requires an operation time of five-to-10 years to pay back the upfront capital. On the other side of the equation, reduced maintenance costs with the removal of the diesel engine is one operating cost benefit, as is the higher torque, speed and acceleration the truck offers. These aspects have seen the company actively market a total cost of ownership (TCO) model in all its negotiations.

The NMC lithium-ion battery it is fitted with, meanwhile, looks like having 5,000-7,000 cycles in it. This is plenty for this limestone quarry operation, but might not be enough for bigger mining operations.

While the eDumper appears to provide a positive TCO equation for Ciments Vigier, it is not suited to every operation. The reason it works at the limestone quarry in Switzerland is the fact it travels uphill unladen with material and is able to recharge its battery as it makes the descent with a full payload. There are not many mines with such an operating blueprint.

This has seen eMining ask all potential customers to fill out a check list before negotiations progress to ensure it is worth having further conversations. A site visit is normally conducted after this list is analysed and a detailed feasibility study is written up to ensure everything is taken into consideration before an investment decision is finalised.

A larger, 100 t (110 ton) battery-powered truck could swing the eDumpers’ TCO equation in the favour of a positive investment decision and Beutle knows this.

“At this size, we are much, much more efficient than a diesel equivalent going uphill,” he told IM, explaining the diesel burn is that much greater when you add the extra 37 t of payload.

What he is also aware of is the likelihood the company will need a partner to manufacture this larger vehicle.

The company originally obtained some Swiss government funding to build the eDumper over the 18-month period it took to develop. One would hope, given the current greenhouse gas emission clampdown on off-highway vehicles in Europe, it would be able to seek similar ‘green’ funding for a 100 t truck build.

That is without even considering an original equipment manufacturer (OEM) offering financial support as a development partner. Many OEMs already have diesel machines in this payload bracket, so know there is a significant market for this size machine.

Beutle says companies extracting limestone, coal, graphite and other materials have also shown an interest in a 100 t battery-powered unit: more potential partners.

For eMining to retain its lead in the race to produce a battery-powered haul truck for the open-pit mining space, though, it would need to keep its autonomy from any potential partner. The reason the company was able to open such a gap over much bigger rivals is the fact it is structured as a startup. While parent company KUHN may be a Komatsu equipment dealer, Komatsu was not involved with eMining or the eDumper, according to Beutle. This enabled the company to develop the eDumper over that 18-month period. One can’t imagine an OEM being able to replicate such a feat.

In the near-term, eMining’s best chance of proving its battery-power worth outside of Switzerland is selling retrofit kits to companies interested in recreating the eDumper. The company plans to offer component kits and services to clients or sales partners to assemble the vehicles on their own – this could be particularly practical outside of Europe where KUHN’s servicing footprint is not as vast.

What fast became apparent from spending just a few hours in this limestone quarry is that the eDumper works, eMining is the most likely firm to deliver a battery-powered haul truck into the open-pit mining space and that most miners will require a bit more convincing before they buy one.

LiuGong highlights battery-electric vehicles and 5G connected tech at BICES 2019

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LiuGong has used the backdrop of the 15th Beijing International Construction Machinery Exhibition & Seminar (BICES 2019) in China to launch a new range of battery-electric vehicles (BEVs) as well as remote controlled ‘intelligent’ wheel loaders based on 5G technology.

At BICES 2019, LiuGong is showing three BEVs, including two excavators – the 906E-EV and 922F-EV – and the company’s star wheel loader, the 856H-EV (pictured).

While not all these machines will be big enough to have mining applications, LiuGong explained that the units were very much the start of a platform that could see bigger machines manufactured.

Edward Wagner, Executive Director of LiuGong New Technology, said the total operating cost of a battery powered earthmover is, or soon will be, “depending on the exact vehicle design and customer application, lower than that of a diesel-powered machine”.

LiuGong’s new BEVs are designed for the new electric economy, it said, with a state-of- art, but well proven, lithium-ion battery system for energy storage.

“That power is directed into super high efficiency permanent magnet electric motors to create the motion necessary to drive the machines,” it said. “The machine’s mechanical and hydraulic systems have been optimised for high efficiency: a typical BEV will have peak power output that is two times a conventional diesel power machine. This enables the battery electric earthmovers to accelerate faster and perform more coordinated movements.”

These movements will also be more precise given the full electronic vehicle control, according to LiuGong. “More powerful, quicker and more precise all add up to more productivity, which is raised more than 10% compared to that of a diesel machine,” the company said.

These lithium-ion batteries are designed to last the full life of the machine and eliminate the daily maintenance and regular service routine that comes with diesel engines.

The first generation of LiuGong’s BEVs batteries are equipped with fast charging technology and innovative energy-saving technologies, according to the company. This sees them need only one hour to charge the battery to 80% capacity.

Zeng Guang’an, Chairman of LiuGong Group, at the launch ceremony for LiuGong’s BEVs, said: “We are committed to creating more value for our customers. And that is why LiuGong will never stop independent innovation.”

The LiuGong’s 906E-EV excavator is an example of how quickly and easily a diesel machine can be converted to battery electric, the company said. This machine uses most of the diesel excavator’s hydraulic system allowing for a very rapid conversion time. It is equipped with a battery large enough for a full working day, according to the company.

The new 922F-EV excavator is driven purely by electric power, with the battery pack located centrally in the rear for optimum mass balance. The electric motor and hydraulic system have been optimally packaged to maximise operator visibility, LiuGong says. “The result is industry leading operator visibility which will further enhance performance and efficiency.”

A feature of the new 856H-EV wheel loader is a pure electric driveline with regeneration. This improves operating performance and reduces the energy consumption.

LiuGong explained: “The hydraulic system is electrically driven while using proven off the shelf components. Performance is incredible given the 300-plus-kW peak power capability.”

All three machines are designed using a new platform strategy, which means a very high degree of commonality of parts and systems across all LiuGong’s new energy machines. “This simplification of parts will further lower the total cost of ownership,” it said.

LiuGong introduced the company’s first intelligent shovel remote control wheel loader at its 60th anniversary celebration last year and, at BICES, it has presented its new 5G-based remote-control intelligent wheel loader, co-developed and supported by China Telecom and Huawei technology.

According to Cai Dengsheng, Deputy Chief Engineer of LiuGong’s Intelligent Technology Institution, the model can be remotely controlled from over 2,000 km away, compared with 2 km as of last year, realising real-time response and accurate control through the 5G network.

This 5G network is the most advanced network communication technology in the world with only 30 millisecond data transition from Beijing to Liuzhou, according to LiuGong. “Meanwhile, the transmission quality or stability are not influenced by either a complex environment or long transition time,” the company said. “It is the best technical solution for timely, efficient and high-quality transmissions of large amounts of data.”

The company added: “It provides a high-quality network environment and network technology support for LiuGong’s remote control driving research and provides strong support for the combination of edge calculation and cloud computing in intelligent control under remote control conditions.

“As one of the few Chinese construction machinery companies that has mastered the 5G technology, LiuGong is expected to realise remote-control driving from even longer distances under this platform.”

In addition, LiuGong’s intelligent shovelling wheel loader can sense material penetration; has one bottom loading and dumping function, along with auto levelling and controllable placement of the bucket. It also features an intelligent throttle control system, the company said.

Under remote-control driving mode, all operations can be observed from the videos that are sent back by the machines’ cameras. It also applies the intelligent protection technology to realise automatic identification and auto emergency stop.

As a result, the machine can not only be used in its normal applications, but also can be applied in dangerous and unsafe environments such as rescue and disaster relief.

F-Series excavators

In addition to the BEV and 5G releases, LiuGong used the event to launch four new excavators in its F-Series range that have mining applications.

The 922F is a new-generation 22-ton hydraulic excavator. It and the other F-Series vehicles come with a fully electronically controlled hydraulic system and intelligent heat dissipation technology, with the excavator boasting high operating efficiency, low oil consumption and low noise.

It has “unique engine matching technology and new P/S/E mode ensure higher efficiency and low oil consumption”, the company said.

The company also launched the 926F 25-ton hydraulic excavator, the 936F 36-ton excavator with 1.7 cu.m bucket and the 92-ton 990F excavator which comes with a heavy-duty structure and optimised crushing design.

Pure Gold makes its electric investment case

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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.

Mine electrification hinged on reskilling, collaboration and mine design, EY says

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A recent survey of miners and mining original equipment manufacturers (OEMs) has shown that electrification of mines offers a lot more than lower carbon emissions and improved worker benefits.

The survey, commissioned by EY and conducted by the Sustainable Minerals Institute at The University of Queensland (Australia) and The Norman B. Keevil Institute of Mining Engineering at The University of British Columbia (Canada), deduced that reaping the full benefits of an electricity-powered mining future would require “reskilling, reaching out across sectors and rethinking the fundamentals of mine design”, EY said.

Paul Mitchell, EY Global Mining and Metals Leader, said the mining sector was on the verge of an electrification revolution, driven by significant cost reduction potential, lowered carbon emissions and improved worker health benefits.

“This is critically important, given the World Health Organisation has declared that diesel particulates now belong in the same deadly category as asbestos, arsenic and mustard gas,” he said.

Four key themes emerged from the survey, according to EY.

  • Electrified mines improve economics and strengthen licence to operate;
  • Collaboration will unlock better electrification solutions;
  • Mine design needs a rethink to build in optionality for future innovation, and;
  • Electrification needs different skills, and advances technology deployment.

EY explained these four in more detail:

“Demand for carbon reduction in the sector is inevitable, and electrification is one way to achieve it,” the company said. “Diesel engines cannot be replaced with carbon-generating electricity and therefore electrification needs to be accompanied with a move to renewable power.

“The survey finds that electrification reduces not only operational costs, but also up-front capital costs because it reduces the infrastructure needs of ventilation shafts in underground mines. More significantly, the reduction of diesel particulates results in improvement to worker health and safety.”

Partnerships and co-creation of solutions with OEMs, other mining companies and governments are needed to successfully integrate electrification in mines, according to EY.

“The survey finds that, in the case of electrification, miners are clear that they can’t go it alone. This is leading to a more open perspective around the role of suppliers as strategic partners, which expands the possibilities for miners to benefit through innovation, cost reduction and competitive advantage.”

Newmont Goldcorp has taken such an approach at its Borden gold project, in Ontario, Canada – partnering with Sandvik and MacLean Engineering on developing what it says will be the world’s first all-electric underground mine – while Nouveau Monde Graphite has built up a taskforce of its own to progress its plans for an all-electric open-pit graphite mine in Quebec, Canada.

In terms of mine design, decoupling mines from diesel is not an easy task. This is due to the diverse range of technical and financial challenges in mining various deposits.

EY said: “Getting full value out of electrification requires a thorough consideration and understanding of the technology road map, in parallel with the strategic plan for the mine. The survey highlights the need for a phased implementation with a flexible design that provides for technology improvements of the future.”

And, lastly, mine electrification will require different worker skills as it enables other advanced technologies, requiring less maintenance and human intervention, according to EY.

“Analysis of the survey findings reveals there will be increasing demand for data and digital literacy skills across all phases of the mining value chain, as the human-to-machine interface evolves and becomes more prevalent,” the company said. “In developing economies, this means challenging the assumption that a mine provides employment only for people doing physical labour.”

Mitchell added: “It is important to start thinking about building agility into mine design to leverage the potential benefits in asset flexibility, lower ventilation requirements and the human footprint.

“The future of electrification in mines requires a paradigm shift in thinking – from existing known and proven technologies to new emerging technologies. We must realise that the challenges of the sector can be solved faster by collaboration – and a robust strategy, underpinned by gaining the right capabilities and an agile approach, is critical.”

The Electric Mine charges on to Sweden

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Following the success of the inaugural Electric Mine event in Toronto, Canada, in April, International Mining Events has wasted no time in confirming the 2020 follow up; this time in Stockholm, Sweden.

Taking place at the Radisson Blu Waterfront Hotel on March 19-20, 2020, The Electric Mine 2020 will be even bigger, featuring new case studies from miners implementing electrification projects and presentations from the key OEMs and service suppliers shaping these solutions.

A leading hub in Europe for mining equipment and innovation, Sweden was the obvious choice for the 2020 edition of the event. Miners including Boliden and LKAB have already made electric moves above and below ground, and the north of the country is set to host Europe’s first home-grown gigafactory, the Northvolt Ett lithium-ion battery cell facility.

Sweden and Finland also play host to Europe’s major mining OEMs such as Epiroc, Sandvik, Metso and Outotec (soon to possibly be Metso Outotec Corp), and the Nordic region has a rich mining innovation legacy.

Capacity crowd

The announcement of the 2020 Electric Mine edition comes hot on the heels of a hugely successful debut in Toronto.

With the Radisson Admiral, on Toronto Harbourfront, filled out to capacity, the circa-150 attendees were treated to more than 20 world-class papers from miners Vale, Goldcorp (now Newmont Goldcorp), Kirkland Lake Gold, Boliden and Nouveau Monde Graphite; OEMs Epiroc, Sandvik, Caterpillar, Volvo CE and BELAZ; and equipment and service specialists Siemens, ABB, GE Transportation (a Wabtec company). Presentations from Doug Morrison (CEMI), Marcus Thomson (Norcat), David Sanguinetti (Global Mining Guidelines Group), Erik Isokangas (Mining3) and Ali Madiseh (University of British Columbia), meanwhile, provided the R&D angle delegates were after.

The event was a truly global affair, attracting delegates and exhibitors from Africa, Australasia, Europe, North America and South America, all eager to hear about developments across the sector.

Bigger and better

International Mining Events is upping the ante for 2020, increasing the event capacity to 200 delegates and making plans for a possible site visit to witness electric equipment in action.

Talks from several miners, as well as global international companies, will again underpin the 1.5-day conference program, which will also expand to cover the use of renewable/alternative energy within the field.

There will, again, be opportunities for sponsorship and exhibiting, with several companies already in discussions about booking the prime opportunities for the event.

If you would like to know more about The Electric Mine 2020, please feel free to contact Editorial Director, Paul Moore ([email protected]) or Editor, Dan Gleeson ([email protected]).

In the meantime, we look forward to seeing you in Stockholm!