Tag Archives: Mount Isa Mines

Glencore’s Mount Isa ops set for renewable power injection from APA Group

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APA Group has reached a Final Investment Decision (FID) to build stage two of the Mica Creek Solar Farm in Mount Isa, Queensland, a decision that has brought with it an agreement to supply Glencore’s Mount Isa Mines copper-lead-zinc-silver operations in the state with renewable electricity.

The stage two investment is underpinned by a variation to the existing offtake agreement with APA customer Mount Isa Mines Limited (MIM), a Glencore company, according to APA. The variation adds a new service for the supply of electricity from the Mica Creek Solar Farm for 15 years, requiring additional capital expenditure by APA of around A$70 million ($49.8 million).

FID on stage two, which comprises 44 MW of additional solar power generation, follows APA’s announcement on November 1 that APA had reached FID on stage one of the Mica Creek Solar Farm and entered into an offtake agreement with MMG’s Dugald River operation to supply an initial 44 MW of renewable electricity to the miner. APA’s total investment for both stages of the works is estimated to be around A$150 million.

The second stage of the solar farm is to be co-located on the same site as stage one, near APA’s Diamantina Power Station Complex, on land which is leased from the Queensland Government. The solar farm is expected to be operational by mid-2023.

APA’s solar offtake agreement has been negotiated at a commercially competitive tariff, consistent with utility solar pricing, and will reduce the average delivered cost of power for MIM, APA said.

“This A$150 million investment will support APA’s vision for a world-leading hybrid energy grid in Mount Isa and our aspiration to support the further increases of renewable energy penetration for the region,” APA CEO and Managing Director, Rob Wheals, said.

“The support for the 88 MW Mica Creek Solar Farm demonstrates the enthusiasm of customers in the Mount Isa region for integrated energy solutions that can both meet their energy needs and help reduce their operational emissions.

“With continued strong interest from customers, APA is investigating a potential expansion for a third stage.”

Wagners to haul McArthur River zinc-lead concentrate for Glencore

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Following the completion of a competitive tender process, Wagners says it has secured a new haulage services contract with McArthur River Mining Pty Ltd (MRM), a subsidiary of Glencore, for the haulage of zinc and lead concentrate from McArthur River Mine, in Queensland, Australia, to the Bing Bong Loading Facility and the Mount Isa Mines metal processing facility.

Glencore owns and operates combined surface mining, underground mining, processing and smelting operations in Queensland and Northern Territory for the production of zinc, lead and copper concentrate. This includes the mine which is operated by MRM.

Wagners’ scope of works will include the loading of the zinc and lead concentrate at the mine and its haulage to both the Bing Bong Loading Facility and the processing facility in Mount Isa. The haulage services will operate 24 hours a day, seven days a week throughout the term with haulage services planned to commence in December 2021.

Based on forecast haulage requirements, the contribution to the company’s revenue over the contract term is expected to be in the vicinity of A$33 million ($24 million), Wagners said. This will remain subject to the mine’s production and ability to make the required volume of material available to meet the haulage tonnage forecast.

Wagners’ Chief Executive Officer, Cameron Coleman, said: “Wagners has a long-standing relationship with Glencore and is very grateful to be provided with the opportunity to service the McArthur River Mine operations in the delivery of these haulage services, which is a new project for us. This project will provide many employment opportunities throughout both the Northern Territory and Queensland and will require substantial capital investment to increase our haulage fleet, demonstrating Wagners’ commitment to this area of our business and the resources sector.”

Orica to deliver tech and blasting services to Glencore’s Australia copper, zinc ops

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Orica says it has been awarded a five-year explosives technology and services contract for Glencore’s Australia copper and zinc operations, effective January 2021.

Glencore, one of the world’s largest globally diversified natural resource companies, produces and markets a diverse range of metals and minerals, with its Australia copper and zinc operations including McArthur River Mine (Northern Territory), Lady Loretta Mine (Queensland), Mount Isa Mines (Queensland), Ernest Henry Mine (Queensland) and CSA Mine (New South Wales). Orica has an existing supply agreement with Glencore’s nickel and cobalt operations at Murrin Murrin, in Western Australia.

As part of the contract, Orica will deliver the full suite of explosives technology and blasting services across the Glencore copper and zinc operations in Australia, including supply of the fully wireless initiating system, WebGen™, BlastIQ™ digital blast optimisation suite of products and smart explosives delivery system, Bulkmaster™ 7.

This partnership further strengthens and expands Orica’s longstanding relationship with Glencore, the manufacturer of commercial explosives and innovative blasting systems said.

Orica Chief Executive, Alberto Calderon, said: “Glencore is a key global diversified customer, and we are delighted to be partnering with them across their Australian copper and zinc operations, integrating our most advanced technologies and solutions to solve their more complex operational needs.

“Glencore’s Ernest Henry mine in northwest Queensland was the first site in the world to trial and adopt our wireless explosives technology, WebGen. This deal shows Glencore’s confidence in our technology roadmap as well as aligning with their strategic vision for technology to deliver added value to their operations.”

Orica will work closely with Glencore to ensure uninterrupted supply to each operation, during the rapid mobilisation and transition period, it said.