Tag Archives: Norilsk Nickel

Nornickel after operational gains with Polar equipment simulator investment

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Norilsk Nickel’s Polar Division is looking to upskill its mine operator workforce by rolling out a simulator program that will see personnel become familiar with the majority of self-propelled diesel equipment at its underground mines.

The company plans to spend $3.2 million on simulators to train operators of loading and hauling machines, dump trucks, underground self-propelled vehicles, blasthole drills, etc to operate this equipment safely and efficiently.

“Due to the wide breadth of transferable skills put into practice over the course of the modules, personnel trained on simulators will be able to operate almost all types and brands of equipment used in Nornickel’s mines,” the company told IM. “These include several dozen types of machines, among them LHDs, scalers, drill rigs, self-propelled roof-bolters, mining haul trucks, etc from various manufacturers.”

Specifically, the list includes Sandvik LH514s, Caterpillar R1700s, Epiroc ST14s, Sandvik TH540s, Epiroc MT42s, Sandvik DD421/DD321s, Sandvik DD422is, Epiroc L2Ds, Sandvik DL421s, Sandvik DS411s and Epiroc Boltecs.

The existing fleet of simulators at Nornickel’s Corporate University comprises two basic simulators, three replaceable modules and two fixed modules, but, with this training program expansion, the university should receive two basic simulators and seven modules in the December quarter of 2021.

The company explained: “Each new simulator comprises three parts. The first part is a server room responsible for the operation of the simulator. The second is a module containing self-propelled diesel equipment identical to a certain type of equipment in use in our mines. The replaceable module gives a student the opportunity to practice in 7D mode (the combination of 3D images with other dimensional interactions); module replacement takes 15 minutes. The third part houses the instructor’s workplace.”

According to experts, the use of simulators and related teaching methods enable mining equipment operators to reduce errors by up to 70%, Nornickel said. These tools also reduce the duration of unplanned downtime associated with the incorrect use of equipment by up to 30%, increase the lifespan of equipment by up to 25% due to reduced wear, and decrease the frequency of equipment replacement and repair by up to 25%, it added.

“It is important to us to provide our personnel with the means to improve their skills and fluency in operating specialised equipment,” the company said. “An additional advantage of the new simulators is that they can help personnel improve their problem-solving skills by presenting opportunities to work out complex technological operations and other difficult situations without compromising production.”

Nornickel targets safety boost at Bystrinsky GOK with collision avoidance tech

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Norilsk Nickel’s Bystrinsky GOK operation in the Trans-Baikal Territory of Russia has been testing a collision avoidance system from V2-Group with the aim of improving safety and avoiding haul road accidents at the open-pit gold-iron-copper mine.

Bystrinsky GOK, which consists of a mining operation and processing plant, is home to the Bystrinsky gold-iron-copper deposit. This deposit contained some 343 Mt of reserves when the mine started up in 2017.

Collision avoidance sensors from V2-Group have been installed on one Komatsu PC4000 excavator and two Caterpillar 789D mining trucks at the open-pit operation, Nornickel confirmed. The company has also employed a V2-Group dispatch system at the mine.

A Nornickel spokesperson said testing of the system started in November 2020, with the company currently looking at trialling collision avoidance equipment from other vendors as part of its due diligence process.

“A collision avoidance system should be operational around-the-clock without fail even in the most difficult weather conditions,” the spokesperson said. “It should have the capacity to adjust its parameters depending on the dimensions of various equipment and situations encountered in the pit, on the dump, and while moving between mines.”

The testing represents a step towards helping the company meet one of its key priorities in the operation of the “largest mining and processing plant in the Trans-Baikal Territory – that of ensuring safety, especially when working with mining equipment”, the spokesperson added.

The mining operation has already implemented a range of measures, including IT projects, to ensure safety of personnel, industrial safety and road safety. Last year, it tested a fatigue detection system, which quickly detects everything from episodes of driver microsleep to distractions on the road, as well as an intelligent control system.

Should testing of the collision avoidance systems prove successful, Nornickel expects to rollout the equipment on all mining and auxiliary vehicles, the spokesperson concluded.

Nornickel backs responsible sourcing and production practices with blockchain agreement

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Norilsk Nickel says it is joining the Responsible Sourcing Blockchain Network (RSBN), an industry collaboration among members across the minerals supply chain using blockchain technology to support responsible sourcing and production practices from mine to market.

The move to join RSBN comes after Nornickel announced a broad strategy to use sophisticated digital technologies to create a customer-centric supply chain, which would include metal-backed tokens on the global Atomyze platform, a tokenisation platform that represents physical assets in digital form. Both the Atomyze and RSBN platforms were developed by leveraging Hyperledger technology, with IBM’s participation, the PGM and base metal miner said.

With Nornickel joining the RSBN, a series of its supply chains will be audited annually against key responsible sourcing requirements by RCS Global. The audits cover each stage of the company’s vertically integrated operations from mines in Russia to refineries in Finland and Russia.

Once audited against responsible sourcing requirements, each supply chain will be brought on to the RSBN and an “immutable audit data” trail will be captured on the platform, proving responsible nickel and cobalt production, its maintenance and its ethical provenance.

“Integration with RSBN is yet another step for Nornickel towards achieving greater business sustainability by creating a permanent record of minerals on the blockchain,” the company said.

At a later development stage, data such as upstream carbon intensity and other ESG attributes will be tracked, it added.

Built on IBM Blockchain technology and powered by the Linux Foundation’s Hyperledger Fabric, the RSBN platform helps improve transparency in the mineral supply chain by providing a highly secure and immutable record that can be shared with specified members of the network, Nornickel says. Additionally, RCS Global Group assesses each participating entity both initially and annually against responsible sourcing requirements set by the Organization for Economic Cooperation and Development and those enshrined by key industry bodies, including the Responsible Minerals Initiative.

Anton Berlin, Nornickel’s Vice President, Sales and Distribution, said: “As one of the largest industry groups globally and the producer of the minerals essential for the transition to a carbon-free world, Nornickel is well aware of its responsibility to make the metals supply chains sustainable and highly transparent. We believe that the digital technologies of RSBN and Atomyze will create the path for Nornickel and its partners to participate in a circular value chain, tracing commodity flows in near real time as well as replacing cumbersome paperwork.”

RCS Global CEO, Dr Nicholas Garrett, added: “The RSBN has proven that responsible sourcing can be traced and documented using blockchain technology. Assuring Nornickel’s supply chains is another milestone engagement for RCS Global and Nornickel’s commitment to the RSBN and demonstrates momentum for blockchain backed responsible sourcing platform in the metals sector.”

Manish Chawla, Global Managing Director, Chemicals, Petroleum & Industrial Products, IBM, said: “Norilsk Nickel is an important addition to the Responsible Sourcing Blockchain Network and we look forward to their contributions to help advance the assurance for responsible sourcing and the group’s sustainability goals that have a direct impact on successful and accountable development for entire industries.”

RSBN is designed to be adopted across industries by original equipment manufacturers in automotive, electronics, aerospace and defence as well as their supply chain partners such as mining companies and battery manufacturers.

Metso Outotec to help modernise Nornickel’s Talnakh processing plant

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Metso Outotec says it has signed an agreement to deliver its “industry-leading comminution equipment” to Norilsk Nickel’s refurbishment project at the Talnakh processing plant in Norilsk, Russia.

The contract includes delivery of one SAG mill and two ball mills with a total installed power of 36 MW, as well as two HP series pebble crushers. Metso Outotec will also supply spare parts and consumables, including metallic mill liners, and will supervise the installation of the equipment. The delivery is scheduled for 2022.

While the order value was not disclosed, Metso Outotec said the order has been booked in its December quarter 2020 orders received.

Sergey Dubovitsky, Senior Vice President, Strategy, Strategic Projects, Logistics & Procurement at Norilsk Nickel, said: “The modernisation of the Talnakh processing plant is one of the priority projects for Norilsk Nickel. Its implementation will significantly increase the volume and efficiency of production. To achieve this, we utilise the most modern technologies from Metso Outotec.”

Stephan Kirsch, President, Minerals business area, Metso Outotec, added: “We are pleased to continue our partnership with Norilsk Nickel. The supply of leading-edge equipment from Metso Outotec for the reconstruction of the comminution section at the Talnakh concentrator will enable an increase in the amount of ore processed. Our company has taken part in several projects with Norilsk Nickel to boost throughput rates of the processing facilities, and we are grateful for having been again selected to provide reliable solutions for a project as significant as Talnakh.”

Metso Outotec to modernise Norilsk Nickel’s Nadezhda smelting line

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Metso Outotec has been awarded a landmark contract by PJSC MMC Norilsk Nickel to modernise one of the company’s two existing smelting lines at their Nadezhda Metallurgical Plant in Norilsk, Russia.

The contract value is approximately €90 million ($110 million), and the order has been booked in Metso Outotec’s December quarter 2020 order intake.

Metso Outotec’s contract includes engineering and delivery of a nickel flash smelting furnace and a heat recovery boiler with related automation and advanced digital products.

Replacing the existing smelting line with the latest process technology and furnace structures will significantly increase the line’s capacity and availability, reduce metal losses and ease maintenance, according to the mining OEM. The new line will also allow for the easy connection and efficient operation with potential future sulphuric acid production and neutralisation projects. The delivery of the equipment will take place during the first half of 2022.

Sergey Dubovitsky, Senior Vice President, Strategy, Strategic Projects, Logistics & Procurement at Norilsk Nickel, said: “Metso Outotec is a long-term partner of Norilsk Nickel, supplying state-of-the-art equipment and technologies. Our cooperation allows us to solve the most important production and technological issues, such as increasing the reliability and efficiency of production.”

Jari Ålgars, President of Metso Outotec’s Metals business area, added: “Norilsk Nickel operates the world’s largest nickel and palladium deposit in Russia. We are very committed to our long partnership with Norilsk Nickel, and we are pleased to have been awarded the contract to modernise their smelting line at Nadezhda. Our unique process expertise and sustainable technologies enable the design and delivery of a world-class smelting process that meets today’s and future production requirements.”

Metso Outotec is a leading supplier of smelting technology, with about 40 operational smelting lines around the world. The company claims its Flash Smelting Process is the cleanest smelting method available, giving high recovery of metals with low investment and operating costs.

Nornickel bolsters modernisation and automation efforts with new equipment, solutions

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MMC Norilsk Nickel says its Polar Division has received a new batch of equipment to improve the efficiency of operations as part of a group-wide program aimed at the modernisation and automation of its production facilities in Russia.

In addition to the new equipment deliveries at the Polar Division, autonomous vehicle devices have reached the second stage of testing at the Severny mine at Kola MMC, the company noted.

Under the equipment renovation program, the Polar Division received 25 units of mobile equipment for various purposes in 2020. The total value of the equipment delivered to the Polar Division amounts to around $8 million.

“This year, we received two Sandvik TH545 dump trucks, and they went into operation at the end of October,” Alexander Chistyakov, Deputy Director of the Severny Mine, said. “The third vehicle is under customs clearance and will soon be at the disposal of the miners.”

In addition, the company is also planning to purchase 20 55-t payload BELAZ 7555B mining trucks, plus seven Liebherr PR 764 dozers and two Caterpillar 990 Series II wheel loaders.

In all, Norilsk Nickel plans to spend about $20 million on the purchase of the equipment, with over 90% of the specified equipment to be transferred to the Taimyr region by the end of November.

Chistyakov added: “At the heart of the program for replacing self-propelled diesel equipment is an increase in the volume of cargo transportation, which is solved by increasing the volume of the cargo area. The new dump truck is distinguished by its structure and dimensions. The main advantage is the increased carrying capacity, which is 45 t.”

The fleet of self-propelled diesel equipment at the Severny mine is being replenished with various new types of machinery. Two Epiroc Boomer S2 face drilling rigs and an Epiroc Simba rotary drilling rig are expected to arrive by the beginning of 2021.

The total cost of the mining equipment expected to arrive by the end of 2020 at Severny is estimated at more than $6.5 million.

Meanwhile, the second stage of tests of autonomous vehicle devices has been launched at the Severny mine in the Kola region, Nornickel said.

The Nornickel Digital Laboratory is in the process of developing an advanced autonomous vehicle platform for deployment in the company’s mines. The project is being carried out within the framework of the company’s strategic goals, aimed at maximising automation and digitalisation of production processes, and ultimately achieving unstaffed mining operations.

Kola MMC has been closely cooperating with the Digital Laboratory since 2018. A joint pilot project – ‘Monitoring Compliance with Personal Protective Equipment’ – was launched as part of the cooperation effort. Further plans include the implementation of the ‘Remote control of self-propelled equipment at the mine’ project, Nornickel said.

Epiroc surprises with positive Q3 financials and automation, electrification advances

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It is fair to say Epiroc’s September quarter results surprised on the upside.

Amid the COVID-19 pandemic, orders received held up, dropping just 2% to SEK9.37 billion ($1.07 billion) compared with orders in the September quarter of 2019. In fact, on an “organic basis”, orders received were up 10% year-on-year.

At the same time, operating profit remained stable, only decreasing by a little over 5% year-on-year to SEK1.82 billion.

The Epiroc management team took the view that this performance was no exception, issuing a plan to propose a second dividend of SEK1.20/share at the Extraordinary General Meeting on November 27.

Investors viewed these numbers positively: its Stockholm-listed shares closed 8% higher.

While the revenue numbers were dominated by the company’s aftermarket business, which generated 69% of the SEK8.7 billion, it was on the equipment side where some very interesting developments were observed.

The company recorded a 25% year-on-year organic increase in equipment orders in the period, reinforced by a few large orders such as those from Norilsk Nickel. The majority of orders were small- to medium-sized contracts of, say, one or two pieces of equipment, according to Helena Hedblom, President and CEO.

“More customers have taken the decision to invest,” she told IM, adding that this development followed two quarters where mining companies were hesitant to commit.

Within these new orders were several automation agreements, the company said, alongside new battery-electric equipment and digital bookings.

Epiroc has continually committed to advancing technology related to digitalisation, automation and electrification, and it appears the fallout from COVID-19 and the sector’s sustainability drive are strengthening demand for these products.

“I see clearly the interest and demand for automation and tele-remote solutions is increasing in light of the pandemic,” Hedblom said of how COVID-19 had impacted the company’s product focus.

“The key to success for us is we have built up these regional application centres that have given us the capability to deploy automation and teleremote systems without international travel.”

Still on the topic of automation, Epiroc revealed even more today.

The first snippet of news, which Hedblom snuck in during the webcast, was that the company had secured an order for an autonomous fleet of surface drill rigs from an unnamed customer in southern Africa.

The second, which she teed up in the official results release, built on in the webcast, and expanded on for IM, was the successful deployment of “unique solutions” for OEM-mixed fleet automation.

In surface mining, the company, in tandem with ASI Mining, has retrofitted automation on Caterpillar haul trucks running at Ferrexpo’s Yeristovo iron ore mine, in Ukraine. The market had already been told about this.

Solutions for OEM-mixed fleet automation underground was very much representative of ‘news’.

“For underground, we have deployed very advance traffic management solutions for mixed fleet automation where we have automated our loaders and then machines from another OEM,” she said. “That is a breakthrough.”

While Hedblom was not able to say too much more about the project, she did acknowledge the solution was a few years in the making and had been advanced with an existing customer.

“The traffic management solution is based on the partnership we have with Combitech,” she explained. “It is a traffic management system being used in airports and subways in the big cities of the world, so is a highly advanced solution.”

Such a partnership dates back to 2017 when Atlas Copco (the Epiroc predecessor) signed an agreement with the Saab subsidiary to advance its digitalisation and automation initiatives.

There was also some news on the battery-electric front, too.

Back in November 2018 at the company’s Power Change Days event in Örebro, Sweden, Erik Svedlund, Global Marketing Manager – Electrification, mentioned the potential for retrofitting battery-electric technology on Epiroc diesel equipment. He said there was also the potential for such a solution being employed on other OEMs’ machines.

IM asked Hedblom about this.

“We have developed the first retrofit kit for a ST1030,” she replied, explaining that the company was “coming close” to releasing such a solution to the market.

While the company has electrified its Scooptram ST7 and its Scooptram ST14, the 10 t payload LHD has been, to this point, only available in diesel-powered form.

She added: “We have also partnered up with a couple of other OEMs that will use our battery system.”

This could be similar to how Railcare, a Swedish manufacturer of machines that keep railways safe and clean, will use Epiroc’s modular and scalable battery-electric technology platform (including batteries supplied by Northvolt) to power its Multi-Purpose Vehicle for rail maintenance applications.

“It goes very much hand-in-hand with the OEM-agnostic approach that we strongly believe in,” Hedblom said.

Those words are backed up by some substantial actions.

Epiroc reinforces order book with Norilsk Nickel contract

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Epiroc has won an order from Norilsk Nickel for underground mining equipment that, the OEM says, will strengthen safety at three of its mines in Russia while ensuring highly efficient mine development.

Norilsk Nickel, one of the world’s largest producers of nickel, palladium, platinum and copper, has been investing in automation and digitalisation for the past several years. This has seen it introduce advanced digital technology in mine engineering, as well as in planning and operational control of mining activities, through its Technology Breakthrough program.

As part of this order, the miner has secured Epiroc’s Boltec M (pictured with with pumpable resin option) and Cabletec M rigs for use in the Oktyabrskiy, Mayak and Komsomolskiy mines to reinforce the underground rock in the safest and most productive manner, Epiroc says.

Quality and productivity are key features of these machines, Epiroc says. “For example, several of the Boltec machines will be equipped with the new automated pumpable resin system, a key component in Epiroc’s automated bolting development. The pumpable resin system, when combined with self-drilling anchors, is particularly effective in difficult and unstable ground conditions.”

One of the more difficult rock reinforcement tasks in underground mining and tunnelling operations is how to install long-term rock bolts in poor rock conditions, Epiroc says. As a result of this difficulty, rock bolting traditionally has often been the bottleneck within the drill and blast cycle.

“To resolve this, Epiroc in 2019, launched a pumpable resin system for underground rock bolting, allowing for a faster, more reliable and cost-effective bolting alternative for long-term rock reinforcement in difficult ground conditions,” the company said.

The Norilsk Nickel order exceeds SEK100 million ($11 million) in value and was booked in the September quarter of 2020. The equipment will be delivered from the company’s Sweden operations in the December quarter, Epiroc said.

“Norilsk Nickel has been an Epiroc customer for many years,” Helena Hedblom, Epiroc’s President and CEO, said. “We are proud to play a key role as this forward-looking mining company now takes the next step in its commitment to safety and productivity with our latest technology.”

Robit drilling consumables in transit to Norilsk Nickel

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Robit says it has signed a contract to supply drilling tools to Norilsk Nickel, in Norilsk, Russia, with the deliveries expected to take place during April and May.

Norilsk is in Krasnoyarsk Krai, Russia, and located above the Arctic Circle. Since there are no roadway or railway connections, all freight is delivered by cargo ship via the Arctic Ocean to the Port of Dudinka, in Murmansk, or by air. The Robit drilling consumables are to be delivered by sea, Robit said.

Norilsk Nickel is one of Russia’s leading metals and mining company, a manufacturer of palladium and refined nickel, and one of the biggest platinum and copper producers in the world. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, and sulphur.

Robit, meanwhile, provides drilling consumables for applications in mining, construction and contracting, tunnelling, and well drilling. It has two product and service ranges: top hammer and down-the-hole.

Last month, the company signed a two-year contract to supply drilling tools to Al Masane Al Kobra Mining Co, in Saudi Arabia, for underground jumbo rigs at its Al Masane copper-zinc mine. The tools are to be supplied by Robit’s distributor, Bin Harkhil.

In February, Robit delivered its first consignment of rods for underground drilling to Ma’aden’s Al Amar underground gold-copper-zinc mine, in Saudi Arabia.

Nornickel reveals ambitious technology – as well as production – plans

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Technology looks like playing a pivotal role in Norilsk Nickel’s ambitious growth plan to boost its mined ore volumes at the renowned Taimyr operation, in Russia.

After revealing a target to up production to 30 Mt/y by 2030, from 17 Mt/y in 2017, at its Capital Markets Day in London this week, IM spoke with First Vice-President and Chief Operating Officer, Sergey Dyachenko, to find out how technology was helping the company achieve this target.

Dyachenko listed off several impressive feats the company has achieved in the past 18-24 months that would pave the way for this growth.

First off, Norilsk has digitised nearly all of its operations as part of its Technological Breakthrough program – aimed at designing, planning and operational controls of its mining activities.

It has shifted its mine planning from a shift-based system to an hourly scheduling program, is carrying out dynamic simulations of mining activities on an as-needed basis to visualise the effects of mine plan changes, has installed proximity detection and collision avoidance systems (with a 50 m personnel detection range) at all of its underground mines, and has commissioned a real-time dispatch system to optimise its operations.

With digital centres built or being built in all of its major mining hubs, and Wi-Fi rolled out across its underground operations, all of its processes are now very much ‘connected’.

Dyachenko said these initiatives were already paying off, with a 7% increase in nickel-equivalent production between 2017 and 2019, partly attributable to the digitisation and automation programs. He could also point to a productivity increase – the output of nickel equivalent per employee rising 15% over this same timeframe.

While the company has come a long way since it started its Technology Breakthrough program in 2014, it is ready to leverage more technology over the next five years (and beyond).

Dyachenko spoke of transitioning from dynamic 3D mine models to the use of digital twins for mine plan optimisation at all of its mines and, excitingly, plans for a “fully autonomous smart digital mine” at its Skalisty nickel-copper-PGM underground project at the Polar Division, Norilsk’s key production asset on the Taimyr Peninsula.

Skalisty, at more than 2,000 m below ground, will be the company – and one of Russia’s – deepest underground mines. This fact is making Norilsk reconsider its normal mine development and operation route.

The company is currently engaged on a prefeasibility study at Skalisty, however it has already carried out 966 m of shaft sinking to bring the #10 ventilation shaft down to 2,056 m, and plans to start horizontal development at the project next month. Completion of the main shaft is scheduled for 2021.

“We have a task to make our Skalisty underground mine an autonomous mine,” Dyachenko said, explaining that the depth and accompanying temperature that comes with it made it a difficult environment to operate in.

Added to this, Dyachenko said the “demographics” of the future workforce and the need to provide an “interesting environment” at Skalisty made it a necessity to at least relocate machine operators to a control room on surface.

Norilsk will not be working on this ‘task’ alone. In addition to using consultants for the prefeasibility study, it is has also engaged an OEM with experience of automating underground operations in Mali and Sudbury (Canada) at this stage.

“We want to have a very clear concept…and find out the economic impact and best configuration for the mine,” Dyachenko explained.

The Norilsk COO said engaging such an OEM at this point in the mine development process also provided the manufacturer with the required time to “customise” a solution that fitted the Skalisty orebody and infrastructure.

“Not all of this will be off-the-shelf,” he commented on the equipment and infrastructure required for Skalisty, adding that battery-electric vehicles could also come into the mining equation.

Speaking of time, Dyachenko said the company expected to recover the first ore from development at the deep mine in 2023, followed by first “production” ore in 2024.

The new Skalisty mine is expected to eventually ramp up to production of ~2.5 Mt/y.