Tag Archives: Olympic Dam

BHP takes next step in smelter, refinery expansion at Copper South Australia

Base metals, Mine operation news, Sustainable mining, , , , , , ,

The South Australian Government has announced the commencement of an application and assessment process for BHP’s planned smelter and refinery expansion at Olympic Dam via a notification in the South Australian Government Gazette.

The notification is a step forward for BHP’s copper growth plans in South Australia and follows an update in the company’s financial year 2024 full-year results last week, which outlined a phased strategy to increase production in South Australia to 500,000 t/y of refined copper cathode by the early 2030s and then potentially up to 650,000 t/y by the mid-2030s – up from circa-322,000 t last financial year.

BHP Asset President Copper South Australia, Anna Wiley, said: “Today’s announcement is an important step for BHP and the South Australian Government as we work together towards our shared ambition to significantly increase copper production in this state.”

“We are already growing BHP’s copper production in South Australia with projects and studies underway at all of our operating sites, and we’re moving at pace to potentially double our current production by the middle of the next decade.”

BHP’s copper province in South Australia comprises the Olympic Dam, Prominent Hill and Carrapateena underground mines, which provide volumes of copper concentrate to a centralised smelter and refinery complex at Olympic Dam that produces refined copper cathode. The company is also progressing the Oak Dam exploration prospect.

BHP, last week, announced an inferred resource at Oak Dam of 1,340 Mt at 0.66% Cu and 0.33 g/t Au, within which is a mineralisation area that contains 220 Mt at 1.96% Cu and 0.68 g/t Au (at a 1% copper cutoff grade).

A final investment decision on phase one of the smelter and refinery expansion is currently scheduled in the first half of financial year 2027.

Australia’s Clean Energy Finance Corp backs new wind farm and battery project for BHP Olympic Dam

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

The Australian Government says it is making the BHP Olympic Dam mine, in South Australia, cleaner and creating jobs by supporting a wind farm and battery project.

The Clean Energy Finance Corporation (CEFC) is investing A$99 million ($64 million) to boost Neoen’s Goyder wind farm – which will provide electricity to BHP’s copper mine in the northern part of the state. This cleaner and cheaper renewable power will be backed up by Neoen’s Blyth Battery, which is located nearby.

Once completed, the wind farm will generate 203 MW of electricity, and the battery will store 477 MWh, enough to help meet half of Olympic Dam mine’s electricity needs with clean power.

The Minister for Climate Change and Energy, Chris Bowen, said the project is important for the South Australian clean energy and resources sectors.

“It’s great to see clean energy powering mining – bringing together key national industrial strengths in renewables and resources, while creating jobs,” he said. “The Albanese Government is excited to support a project that involves three vital things for Australia’s future – wind power, batteries, and strategic materials.”

Blyth Battery is the fifth big battery project financed by the CEFC, bringing their total investment in this technology to over A$390 million.

CEFC CEO, Ian Learmonth, said: “The challenge of reducing emissions across the economy starts with the energy sector. The offtake agreement with BHP demonstrates how reducing energy emissions accelerates decarbonisation across the economy. This innovative solution to provide firmed green energy at Olympic Dam enables a significant energy user to progress its net zero goals while producing a critical mineral like copper more sustainably.”

Neoen CEO, Louis de Sambucy, said: “We are delighted to announce the joint financing of the second tranche of Goyder South Stage 1 alongside Blyth Battery and we sincerely thank the lender group for their trust and commitment. We are looking forward to powering BHP’s Olympic Dam mine with baseload renewable energy.”

Monadelphous wins A$150 million worth of work with Fortescue, BHP and Rio Tinto

Equipment maintenance, Mine operation news, Mining services, , , , , , , , , ,

Engineering company Monadelphous Group Limited says it has secured new contracts and contract extensions across the mining and metals space in Australia totalling approximately A$150 million ($102 million).

The company has been awarded a contract with Fortescue Metals Group for the supply and construction of an overland conveyor and transfer station at the Christmas Creek mine site in the Pilbara region of Western Australia. The scope of work, which includes civil, structural, mechanical, piping, electrical and instrumentation works, commences immediately and is expected to be completed in the first half of 2024.

In addition, Monadelphous has secured a two-year extension to its existing maintenance services contract at BHP’s Olympic Dam operations in South Australia. The scope of work includes mechanical and electrical maintenance, shutdown and project services.

Finally, the company has been awarded a two-year extension to its existing contract with Rio Tinto to continue providing mechanical, electrical and access maintenance services for fixed plant shutdowns at its Gove operations in the Northern Territory.

BHP partners with Aboriginal-owned Cedrent on light vehicle hire

Mine operation news, Mining equipment, Mining services, , ,

Aboriginal-owned car hire company, Cedrent Enterprises (Cedrent), has been awarded a three-year, A$8 million ($5.3 million) contract to provide light vehicle hire services for BHP in South Australia and Western Australia.

The partnership offers BHP employees an alternative for short or long-term vehicle hire at Olympic Dam in South Australia, and across the company’s Newman and Port Hedland operations in the Pilbara, BHP says.

Cedrent General Manager, Dan Walmsley, said the contract was a significant milestone for Cedrent.

“This collaboration with BHP not only underscores our shared commitment to social responsibility and sustainable development but also fuels our efforts to create opportunities within the First Nations business sector,” he said.

“We’re also proud to be providing a portion of our profits to Far West Coast Aboriginal Corporation in SA, or Yindjibarndi Aboriginal Corporation in WA, which are both devoted to giving back to their communities through programs that upskill youth, support local businesses, and create a growing demand for Indigenous goods and services.”

BHP Head of Global Indigenous Procurement, Chris Cowan, said: “BHP is committed to doing more to build sustainable, profitable and enduring partnerships with Traditional Owner and Indigenous businesses across our operations, and we are working hard at all levels to make this happen.”

“By selecting Cedrent’s services when hiring vehicles for work, our people will be supporting a business that creates opportunities for First Nations people, prioritising Indigenous community engagement, job creation and procurement.

“It’s the first time an Indigenous-owned business has been awarded a contract of this type with BHP, and we look forward to working together to help empower more Indigenous businesses and communities across Australia.”

Last month, BHP released its sixth Reconciliation Action Plan, which includes a target of achieving A$1.5 billion of spend for procurement from Aboriginal and Torres Strait Islander and Traditional Owner businesses across all Australian assets by 30 June 2027. Up to May 2023, BHP shared partnerships with 192 Indigenous businesses around the country, including 89 Traditional Owner businesses.

Normet Utimec XL 1100 Agitator ED set for debut at Olympic Dam mine

Environmental, Mine operation news, Mining equipment, Mining services, , , , ,

Normet says its first Utimec XL 1100 Agitator ED has arrived in Australia, with final field tests currently being conducted ahead of deployment at BHP’s Olympic Dam mine.

The Utimec XL 1100 Agitator ED, part of Normet’s recently announced ElectroDynamic® electric driveline platform, has a concrete transportation capacity of 10.5 cu.m. It is designed for concrete transportation in underground mines and tunnels with a minimum tramming height of 3.3 m.

Tailor-made for harsh underground conditions, the vehicle is equipped with a voluminous, wear-resistant and remote-controllable concrete drum and a hydraulically-operated discharging chute, allowing for more versatile vehicle positioning, Normet says. Both mixing and unloading are controlled electrically and can be operated with zero local emissions by plugging the machine into the mine’s power grid. This increases operator comfort by significantly reducing heat output and noise and by eliminating underground emissions, according to the company. The XL 1100 Agitator ED comes with a spectrum of features such as both front and rear support legs to ensure maximum operating stability, a form oil system to prevent concrete from adhering to the vehicle’s surfaces and a high-pressure washer with a 500-litre on-board water tank.

The arrival of the first unit in Australia follows one-year-long extensive tests in Finland, Normet says. It is set to be operated at Olympic Dam by Redpath, which ordered several XL 1100 Agitator EDs for its operations after visiting Normet’s factory in Iisalmi, Finland, last year.

BHP to trial Epiroc Boomer M2 battery-electric jumbo at Olympic Dam mine

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

BHP has unveiled a battery-electric Epiroc Boomer M2 jumbo at its Olympic Dam mine in South Australia to help support the company’s target to reduce operational greenhouse gas (GHG) emissions, including by minimising reliance on diesel.

The 28.7-t, 14.5-m long battery-electric rig will be powered by a 150 kW traction motor and 150 kW battery system, eliminating greenhouse gas emissions from diesel-powered tramming. It will be tested for efficiency, productivity and comfort over the 12-month trial period, BHP said.

Jumbos are used in underground mining development to drill holes, which are then loaded with explosives and open up new areas. Post-blasting, jumbos install large bolts to stabilise mine walls. BHP currently operates 16 Epiroc jumbos at Olympic Dam.

The fully-electric machine will also break new ground in its user experience by reducing noise and vibration, and eliminating heat and the emissions of diesel particulate matter, the miner said.

Andrew Harris, General Manager Olympic Dam Mine, said: “The world is going to need a lot more of South Australia’s high-quality copper, and the team at Olympic Dam is behind our push to produce that copper more sustainably.

“Collaboration with supply partners like Epiroc will be critical to developing the technology required to reduce emissions, while ensuring we continue to improve the safety and productivity of our operations. I can’t wait to see what this new fully-electric jumbo can do.”

BHP’s Group Procurement Officer, James Agar, said: “The fully-electric jumbo is yet another innovation that will support our progress towards achieving our medium-term target of reducing operational greenhouse gas emissions by 30% by financial year 2030.”

Alisa Bennett, Underground Business Manager for Epiroc Australia and Mongolia, said: “Epiroc are excited to partner with BHP in a new era of electrification in Australia. Epiroc’s ambitious sustainability targets like halved carbon emissions by 2030 matches BHP’s sustainability agenda well. The Boomer M2 Battery rig will facilitate a healthier and safer underground working environment for our customers without compromising on productivity.”

BHP has a medium-term target to reduce operational GHG gas emissions by at least 30% by the 2030 fincial year, from a financial year 2020 baseline. Approximately 40% of BHP’s operational emissions in its baseline year came from diesel-powered vehicles.

The trial of the jumbo also supports BHP’s efforts to minimise the operational impact of diesel particulate matter in underground mining operations by 2025, as part of BHP’s participation in the International Council on Mining and Metals’ Innovation for Cleaner, Safer Vehicles initiative.

The fully-electric jumbo trial builds on electric vehicle initiatives at Nickel West in Western Australia, Olympic Dam in South Australia and BMA’s Broadmeadow mine in Queensland. BHP is also collaborating with Caterpillar Inc and Komatsu to develop zero-emissions electrified haul trucks, and battery-electric locomotives with Wabtec Corporation and Progress Rail.

BHP has also signed Power Purchase Agreements to source renewable power for a number of its operations in Chile, Queensland, South Australia (with Iberdrola and Neoen) and Western Australia. BHP also has customer decarbonisation partnerships with steelmakers in China, Japan, Korea, India and Europe, which collectively represent around 17% of reported global steel production capacity.

BHP eyes South Australian copper basin consolidation with latest OZ Minerals offer

Base metals, Energy minerals, Mineral project development, Mining mergers and acquisitions, Precious metals, , , , , , , , , , , ,

BHP has submitted a revised non-binding indicative proposal to the Board of OZ Minerals Limited (OZL) that, subject to a successful four-week due dilligence period, could see the major miner acquire the mid-tier base metal-focused miner.

The offer to acquire 100% of OZ Minerals by way of a scheme of arrangement for a cash price of A$28.25/share ($18.9/share) is a 13% increase on the offer BHP previously put forwad and was rejected by the OZ Minerals Board. It, according to BHP, represents the best and final price the mining major is willing to offer under, in the absence of a competing proposal.

The OZ Minerals Board has confirmed to BHP that it intends to unanimously recommend the revised proposal to OZ Minerals shareholders as being in their best interests in the absence of a superior proposal, subject to the parties entering into a binding scheme implementation agreement (SIA) following completion of BHP’s confirmatory due diligence and an independent expert concluding that the revised proposal is in the best interests of OZ Minerals shareholders, it said.

The proposed transaction, valuing OZ Minerals at an enterprise value of A$9.6 billion, is expected to deliver significant value creation for both BHP and OZ Minerals shareholders, BHP says, explaining that OZ Minerals shareholders would receive an offer price significantly above trading levels and average broker price targets, prior to BHP’s initial proposal on August 5, 2022. At the same time, BHP shareholders would gain increased exposure to future-facing commodities, adding copper and nickel resources that are essential to support the global megatrends of decarbonisation and electrification.

The deal would also create a South Australian copper basin, which, according to BHP, could unlock potential operational synergies due to the proximity of OZ Minerals’ Carrapateena and Prominent Hill operations with BHP’s existing Olympic Dam asset (pictured) and Oak Dam development resource.

The West Musgrave project, meanwhile, will add a large greenfield nickel option to BHP’s Nickel West premier nickel sulphide resource position in Western Australia.

BHP has now entered into a Confidentiality and Exclusivity Deed with OZ Minerals in relation to the revised proposal. This has seen OZ Minerals grant BHP four weeks to undertake exclusive confirmatory due diligence and negotiate a binding SIA reflecting the key terms of the revised proposal. The four-week period is expected to commence on or around November 21, 2022.

BHP CEO, Mike Henry, said: “BHP’s proposal represents a highly compelling offer for OZ Minerals shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

“The combination of BHP and OZ Minerals’ assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.”

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “BHP’s revised proposal is a clear reflection of OZ Minerals’ unique set of highly strategic, quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel
assets in strong demand due to global electrification. We look forward to working with BHP in a collaborative way to progress the revised proposal in the best interests of OZ Minerals’ and its stakeholders.”

Monadelphous banks work with Fortescue Metals and BHP

Equipment maintenance, Mine operation news, Mining services, Steel and iron ore, , , , , ,

Monadelphous has secured new contracts and contract extensions in the resources and energy sectors totalling approximately A$150 million ($96 million), including work with Fortescue Metals Group and BHP.

The company has been engaged to provide construction services at the Iron Bridge Magnetite Project, an unincorporated joint venture between Fortescue subsidiary FMG Iron Bridge and Formosa Steel IB, in the Pilbara of Western Australia. The work, which includes the provision of structural, mechanical and electrical and instrumentation services at the wet process plant, is expected to be completed by the end of 2022.

Monadelphous has also secured the following work with BHP:

  • A contract for the remediation of balance machines at the Finucane Island and Nelson Point ports in Port Hedland in Western Australia, with work expected to be completed by mid-2024;
  • A 12-month extension to its existing contract to provide general maintenance and shutdown services at BHP’s Western Australian iron ore operations;
  • A 12-month extension to its existing maintenance, shutdown and project services contract across BHP’s Nickel West operations in Western Australia; and
  • A two-year contract to provide construction services under the Olympic Dam Construction Panel Framework Agreement at Olympic Dam in South Australia.

BHP partners with Neoen on Olympic Dam renewable power pact

Base metals, Environmental, Mine operation news, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , , , ,

BHP says it has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from its 2026 financial year.

The agreement, which is based on current forecast demand, will allow Olympic Dam to record a net zero emission position for the contracted volume of supply, according to BHP.

The PPA is expected to supply 70 MW of electricity to Olympic Dam and will support Neoen to construct the 203 MW Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained, BHP said. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid.

In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia, to support the PPA, which will also assist in improving the stability of the South Australian electricity grid.

Goyder South Stage 1, consisting of Goyder South 1a and 1b, is the first stage of Neoen’s flagship project known as Goyder Renewables Zone – a hybrid wind, solar and storage project located in mid-north South Australia. Goyder South has development approval for a total of 1,200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity – making it South Australia’s largest renewable project.

BHP Olympic Dam Asset President, Jennifer Purdie, said: “The world needs South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP is focused on producing that copper more sustainably.”

“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid.”

This latest agreement follows commitments BHP has made in recent years, which have seen renewable electricity contribute to powering BHP facilities in Western Australia, South Australia, Queensland and Chile.

This PPA continues the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2 from its operated assets) by at least 30% from adjusted 2020 financial year levels by its 2030 financial year.

BHP’s Chief Commercial Officer, Vandita Pant, said: “BHP is consciously working towards our target of at least a 30% reduction in our operational emissions by FY2030. Renewable energy partnerships, such as this agreement with Neoen, are important steps towards that outcome, and our longer-term 2050 net zero goal.”

Louis de Sambucy, Neoen Australia’s Managing Director, said: “We are delighted to provide BHP with this highly innovative solution. We are convinced that our ability to combine our assets and our energy management capabilities to create bespoke commercial offers will be a key element of success for our future developments.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, added: “We thank BHP for their vote of confidence. Thanks to its storage assets and deep expertise, Neoen is now able to offer 24/7 energy to its customers. This first baseload PPA is a significant step forward for Neoen and will serve as a template for future contracts, opening up new market opportunities in Australia and in the rest of the world.”

Neoen, BHP says, is one of the world’s leading independent producers of exclusively renewable energy, having close to 5.6 GW of solar, wind and storage capacity in operation or under construction across numerous countries.

OZ Minerals turns down BHP’s A$25/share cash offer

Base metals, Mining mergers and acquisitions, Precious metals, Sustainable mining, , , , , , , , , , , ,

OZ Minerals says it has rejected an unsolicited, conditional and non-binding indicative proposal from BHP to acquire all shares in the company for A$25/share ($17.3/share) in cash, valuing the company at an reported A$8.34 billion.

Having assessed this proposal, which represents a 13.1% premium to the volume weighted average price (VWAP) of OZ’s share price for the six months prior, the Board has unanimously determined that the offer significantly undervalues OZ Minerals and, as such, is not in the best interests of shareholders.

For its part, BHP points out in a separate press release that the consideration represents an “attractive premium” of 32.1% to OZ Minerals’ closing price of A$18.92/share on August 5 and 41.4% to OZ Minerals’ 30-day VWAP of A$17.67/share up to and including August 5.

OZ Minerals says the proposal is subject to a number of conditions including:

  • The completion of extensive financial, legal, technical and operational due diligence over a proposed six-week timeframe;
  • Various financial assumptions;
  • A unanimous recommendation of the OZ Minerals Board; and
  • Entry into a scheme implementation agreement subject to a range of conditions including no material adverse change, regulatory, shareholder and court approvals and conduct of business restrictions.

OZ Minerals says the Board has been advised by BHP that it has accumulated an interest in OZ Minerals shares via derivative instruments amounting to an interest of less than 5%.

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life resource and reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.”

In coming to its decision, OZ Minerals says the Board considered that the proposal does not adequately compensate shareholders for:

  • The unique nature of OZ Minerals’ core business which represents a high-quality portfolio of copper and nickel assets, located in a Tier-1 mining jurisdiction with long mine lives, first quartile cost positioning and extensive strategic optionality;
  • The unique investment proposition which OZ Minerals provides as the only primary copper company in the ASX 100;
  • The low carbon intensity of OZ Minerals’ assets relative to its peers with a defined and market- leading plan for further decarbonisation to meet our target of net zero Scope 1 and 2 operational emissions by 2030;
  • The high-quality nature of OZ Minerals’ growth projects which include the West Musgrave project (final investment decision scheduled for H2 2022), the Carrapateena Block Cave and the Prominent Hill Extension which together are expected to generate significant production growth over the next five years;
  • The strong long-term outlook for both the copper and nickel markets underpinned by increasing geological scarcity, global electrification and accelerating decarbonisation, to which OZ Minerals is highly leveraged; and
  • The strong and consistent returns that the OZ Minerals management team has delivered with a total shareholder return of circa-145% over the past five years.

In addition to the above, OZ Minerals would deliver significant synergies and other benefits to BHP which the Board considers are not reflected in the value of BHP’s indicative proposal.

Among there are the operational synergies in both South Australia (between Olympic Dam, Carrapateena and Prominent Hill) and in Western Australia (between Nickel West and West Musgrave).

BHP says the cash offer it has made would deliver immediate value to OZ Minerals shareholders and de-risk any value which may (or may not) eventually be reflected in the company’s share price.

BHP CEO, Mike Henry, said: “Our proposal represents compelling value and certainty for OZ Minerals shareholders in the face of a deteriorating external environment and increased OZ Minerals operational- and growth-related funding challenges.

“We are disappointed that the Board of OZ Minerals has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal.”