Tag Archives: Peru

Hudbay secures renewable energy supply for Constancia with ENGIE agreement

Mine operation news, Power supply for mines, Sustainable mining, , , ,

Hudbay Minerals Inc says it has signed a new 10-year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable energy supply to Hudbay’s Constancia operations in Peru.

Following the end of the current power supply agreement in Peru, energy will be supplied by ENGIE Energía Perú starting on January 1, 2026, with a 10-year term. The new agreement ensures a consistent and guaranteed supply of renewable energy sufficient for Hudbay’s Constancia operation, the company says.

Hudbay said: “The new contract provides improved flexibility in power supply levels and lower contracted costs as compared to the existing power supply contract. The contract functions on a consumption basis, ensuring the company’s costs are variable based on actual usage, with no minimum spend or penalty for usage below the contracted rate.”

In alignment with Hudbay’s greenhouse gas (GHG) emissions reduction initiatives, the new contract includes the granting of Renewable Energy Certificates (RECs) to Hudbay as an assurance of the supply of renewable energy dedicated to Constancia’s electricity consumption. These RECs will be applied to Hudbay’s energy consumption to enable the company to have a 100% carbon-neutral energy supply at its Constancia operations, it said. As a result of the application of these RECs, total Scope 1 and Scope 2 GHG emissions company-wide at Hudbay’s current operations are expected to decline by 40% during the life of the contract, positioning the company well to achieve its 2030 climate change target of a 50% reduction in Scope 1 and Scope 2 GHG emissions.

Peter Kukielski, Hudbay’s President and Chief Executive Officer, said: “Last December, Hudbay committed to reducing its 2030 GHG emissions by 50% and achieving net zero by 2050. The signing of this 10-year power purchase agreement marks a major milestone for achieving Hudbay’s greenhouse gas reduction goals. We are proud of this achievement as it places Hudbay firmly in reach of achieving a 50% emissions reduction by 2030 and on track for net zero by 2050. Additionally, Hudbay’s low carbon footprint production will continue to produce the metals needed for the global transition to a low-carbon future.”

Hexagon’s Mining newly refurbished Lima facility re-opens

Automation, Communications in mining, IoT, Mining equipment, Mining services, Mining software, , ,

Hexagon’s Mining division has announced the grand reopening of its Lima office, following several months of renovations to modernise the facility.

The office at Centro Empresarial Polo Hunt, Av. La Encalada 1388, Oficinas 501 – 502. Santiago de Surco, Lima, Perú, was reopened on March 3, 2023.

The facility has been completely modernised to provide a comfortable and productive workspace for employees and clients. The renovations included a complete overhaul of the interior design, an expanded monitoring centre and a newly created hardware maintenance and repair space.

“Our goal was to create a space that is both aesthetically pleasing and functional, and we believe we have achieved this with the new design,” Jorge Garrido, General Manager – Andean Region of Hexagon’s Mining division, said.

Local clients and business partners were invited to join the office for a special open house event on March 3 with the opportunity to tour the new facility, meet with team members and hear technology presentations.

“This reopening marks a new chapter for our business in Peru and we are excited to continue serving our clients from our newly renovated office,” Garrido said. “We believe this investment will have a positive impact on our work environment, productivity and overall satisfaction of our employees and clients.”

Robit wins ‘groundbreaking’ DTH drilling contract at Shougang Hierro Perú

Explosives and blasting, Mine operation news, Mining consumables, Mining equipment, Mining services, Steel and iron ore, , , , , , , , ,

Shougang Hierro Perú has recently added Robit drilling consumables to its drilling arsenal, following a string of tests comparing down-the-hole (DTH) tools, the Finland-based company says.

A large share of the drilling and earthmoving operations at Shougang Hierro Perú is conducted by Cosapi Mineria, a subsidiary of Cosapi S.A., one of Peru’s biggest construction and engineering companies and the company that Robit had to impress.

An open-pit operation typically makes extensive use of DTH tools for pre-split and buffer drilling. That’s why Shougang Hierro Perú, an iron ore miner, was an attractive target for Robit SAC to approach with its offering.

José Luis Cisneros, General Manager of Robit SAC, said: “The iron deposit at Shougang Hierro Perú consists of very hard and abrasive materials. You can find competent soils with compressive strengths of 250 to 300 MPa. We contacted Cosapi Mineria and carried out the first test in early 2020 with 7-in (178 mm) bits and a D65 hammer. Since then, we have been working ever more closely with Cosapi, providing them with material innovations to increase performance.”

He added: “In recent months we have been working together with Cosapi in a testing process of the main DTH providers in the market. Thanks to the constant monitoring by our Assistance Engineer, Kevin Salas, and the development of the right products through our DTH Sales Manager, Martín Rodríguez, we have been able to generate new ways of improving the operation and proposing drilling targets with higher standards.”

The open pit operation requires a lot of double bench pre-splitting, performed with D45 HD hammers and 5-in bits, ballistic buttons and a convex face. The bits have obtained an average duration of 1,400 m, and an average speed of 32 m/h.

Recently, Cosapi signed an extension contract for its operations in two of the open pits at Shougang Hierro Perú. Impressed by the tests conducted with Robit, it granted a consignment agreement, trusting Robit with 60% of the consumption of drilling tools over the competition, Robit says.

Cisneros said: “This is the first contract of consumption for DTH tools in Latin America where we will provide assistance and stock for the client’s operation, including technical service, maintenance of hammers and management of drill bits. We hope to show Cosapi Mineria and the market that Robit SAC has the necessary resources to keep exceeding the expectations of our strategic partners.”

Bradken expands mining wear solutions offering and Americas presence with Linings buy

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Bradken has confirmed its growth aspirations in the mining wear solutions space with the acquisition of Linings, a Peru-based leader in composite mill liners.

Bradken says its expansion into the manufacturing of rubber composite mill liners and other products confirms its focus on serving the mining sector with innovative wear solutions and the importance of South America to Bradken.

“Over our 100-year history, Bradken’s customer focus has always shaped our innovation and growth,” Bradken CEO, Sean Winstone, said. “This acquisition is a perfect example of us listening to our mining customers and seeing immense value in broadening our range of solutions to fuel our growth.

He added: “We are proud to lead the market in steel mill liners and, as mining operations develop, so will we. It’s great to expand our product offering into rubber composites and leverage the expertise and innovation of the Linings team to continue solving the challenges our customers face.”

Bradken, a subsidiary of Hitachi Construction Machinery, began as an Australian foundry organisation and has grown to be a global entity focused on the mining sector and backed by an extensive manufacturing capability. Outside of wear solutions for mineral processing, mining fixed plant and mobile plant applications, Bradken delivers engineered bespoke castings for a range of industries in North America and supports the Australian sugar industry. This is the first manufacturing facility Bradken will have in South America.

Linings CEO, Manuel Marquez, said: “Joining Bradken is an excellent opportunity to combine the innovative composite products we have developed over the past 11 years with the depth of Bradken’s centenary of foundry experience, innovation and customer focus.

“This will allow us to have world-class tools and systems to provide our customers with outstanding pre- and post-sales service, as well as continuing to strengthen our supplier partnerships.”

Rio’s Nuton venture eyes up leaching opportunities at Regulus’ AntaKori project

Base metals, Environmental, Metallurgy, Mineral project development, Mining services, Mining techniques, Sustainable mining, , , , , , , , ,

Regulus Resources Inc has announced a $15 million non-brokered private placement by Nuton, which will see the Rio Tinto Venture take an approximate 16.5% interest in the company and jointly undertake copper sulphide leach testing using Nuton’s copper sulphide leach technologies with samples from the AntaKori project in Peru.

The Nuton™ technologies, Rio says, have the potential to process arsenic-bearing copper sulphides with less impact on the environment and water resources than traditional concentrator processing.

Regulus has granted exclusivity to Nuton in the area of novel, patented or trade secret leaching technologies, for a period of one year after the delivery of metallurgical samples from AntaKori to Nuton for testing.

Rio, through its Nuton venture, has tabled a solution to treat primary copper sulphides such as chalcopyrite. At its centre is a portfolio of proprietary copper leach related technologies and capability that, Nuton says, offer the potential to economically unlock known low-grade copper sulphide resources, copper bearing waste and tailings, and achieve higher copper recoveries on oxide and transitional material. This allows for a significantly increased copper production outcome, according to the company.

Regulus Resources has outlined a 250 Mt at 0.48% Cu, 0.29 g/t Au and 7.5 g/t Ag indicated resource at AntaKori, in addition to a 267 Mt at 0.41% Cu, 0.26 g/t Au and 7.8 g/t Ag inferred resource.

John Black, Chief Executive Officer of Regulus, said: “The investment by Rio Tinto, one of the largest miners in the world, is another strong endorsement for the AntaKori project. Through Nuton, Rio Tinto has developed sulphide leach processing technologies that could allow for the processing of high arsenic ores without the need for additional on-site treatment or paying heavy penalties to a smelter. Utilising the Nuton sulphide leach technologies could truly be a gamechanger for the AntaKori deposit. The private placement will significantly bolster our financial position and enhance our ability to optimise the value of the existing resources in the project area.”

Rio Tinto’s Chief Executive, Copper, Bold Baatar, added: “This agreement will allow us to evaluate the potential to commercially deploy Rio Tinto’s innovative Nuton technologies for copper leaching at Regulus’ AntaKori project. Our Nuton technologies have the capacity to increase copper production for Rio Tinto and our partners, with a lower carbon footprint and leading environmental performance. Unlocking value from high-arsenic copper sulphides is a particularly exciting prospect for Nuton.”

BEUMER Group and FAM ‘the right project partner for all challenges’, Hotz says

Bulk handling, Equipment maintenance, Mineral processing, Mining equipment, Mining mergers and acquisitions, Mining safety, Mining services, Water management, , , , , , , , , , , , , , ,

In June, BEUMER Group completed the acquisition of the FAM Group of Magdeburg, Germany, in the process, increasing its conveyor system and loading technology offering and becoming a significant player in the in-pit crushing and conveying (IPCC) space.

Close to six months after closing, IM put some questions to Stefan Hotz, Director Sales FAM Group, to find out how the integration of the two companies is going and how the transaction should strengthen the enlarged company’s market position in the minerals and mining sectors.

IM: Where – regionally – do you see the most opportunities in the mining sector for the integrated company to gain market share? South America has been a particularly strong market for FAM in the past; do you see this as a big opportunity for the integrated group?

SH: FAM – member of BEUMER Group – is one of the world’s leading full-range suppliers of bulk handling and processing systems. The customers come from more than 80 countries and the solutions are successfully in use everywhere. With BEUMER’s acquisition of the FAM Group, we were able to expand our portfolio to include bulk material handling, crushing technology as well as conveyor technology. Customers receive solutions from a single source with which they can work efficiently. In addition to engineering and project execution competences, FAM also brings the complete value chain, including after-sales service, to the BEUMER Group. This makes us a sought-after partner worldwide.

Of course, South America is a strong market, especially countries with iron ore and copper resources such as Brazil, Chile and Peru. For example, in Peru, the mining companies are transporting iron ore to the stockyards, which are often located at distances of several kilometres from the port. Callao Port, for example, is home to the most modern and largest ship loading terminal in the country. A reliable and safe connection for material transport is required, which at the same time ideally prevents the emission of particles into the atmosphere. Conveyors are the preferred solution here that can be individually adapted to the respective environmental and technical requirements and to the topography, as well as protect the environment from dust emissions.

IM: Are you expecting to increase your manufacturing capacity or acquire new premises to fulfil this demand, or do you have enough capacity to serve these growing markets in the near-to-medium term?

SH: The FAM Group has subsidiaries in Brazil, Chile, China, Canada and India. In addition, there are the numerous subsidiaries and agencies of the BEUMER Group. This means that we are very well positioned worldwide and can optimally serve these growing markets in the short to medium term. In our project business it’s a must to be, on the one hand, close to our customers but, on the other hand, using our global resource network and know-how to balance workloads. But, of course, we expand the network of our subsidiaries if we notice that we cannot serve certain regions with the desired reliability.

IM: Is the company already pursuing mining projects that involve the solutions/expertise of FAM and BEUMER Group? Can you elaborate on what type of projects these are and what solutions they involve (ie overland conveyors, bucketwheel excavators, spreaders, etc)?

SH: Yes, we are already in the process to support our mining clients from one hand, integrating FAM and BEUMER solutions. For example, we are working on one large project for gold extraction, where BEUMER is providing the long-distance overland conveyor and FAM supports the client with spreader technology to dump overburden. We have combined this with an attractive digitalisation and service package to ensure optimisation of the client’s total cost of ownership.

IM: With this transaction the company has effectively become a major player in the IPCC space. Do you see this as a major growth area for BEUMER Group going forward?

SH: In general, with this new setup, we expand our product portfolio and we are significantly strengthening our market position worldwide, especially in the field of large-scale mining equipment. But the most important thing is that we can provide our customers with even more comprehensive support over the whole value chain from pit to port, including digitalisation and service for our projects. Due to our many years of experience, we also support our clients in complex upgrade, lifetime extension and refurbishment jobs for existing machines. This means we avoid interfaces and customers now have only one contact.

IM: Do you see your ability to offer not only the solutions but also the engineering and design expertise underpinning these solutions as differentiating your offering from your competitors in the IPCC market? What other differentiators will serve you well in winning business in this market?

SH: I don’t want to say much about our market competitors, but I am sure that together with FAM we stand out positively from the market, specifically for continuous soft rock and overburden IPCC applications. Furthermore, we have long-term partners with whom we are serving the needs of our clients in terms of mine planning and pre-engineering. This ensures that we are defining  a solution for the client with a focus on CAPEX and OPEX optimisation. Specifically for IPCC applications, we are convinced of adding value during the first months of operation by providing integrated training and service packages to ensure successful implementation of continuous mining systems after commissioning. In doing so, the specialism is characterised in particular by distinctive engineering at a high level.

IM: What other areas of your business do you see growing with the need for mining companies to move away from their reliance on diesel-powered mobile mining equipment for material transport? Are you seeing more interest in your overland conveyor portfolio, for instance?

SH: Our belt conveyor systems are used successfully all over the world. They solve complex transport problems for any bulk material and are suitable in many cases as an economic alternative to truck transport. While the basic task – to transport bulk materials from the mine to the final discharge point – appears very comparable, no two systems are alike. The range of potential materials to be conveyed, alone, requires individual consideration of the components to be used in terms of wear resistance or the maximum permissible gradients of a conveyor. In addition, above all, the mass flow to be transported and the height to be overcome determine the dimensioning of the drive unit of an overland conveyor. Plants at high altitudes pose a further challenge. At altitudes above 4,000 m, as is often the case in the Andes for example, it must be taken into account that the air pressure and, thus, the density of the air decreases with increasing altitude. This reduces both the cooling effect and the insulating capacity of the air. We are the right project partner for all these challenges.

Metso Outotec bolsters mining pump capability in South America

Base metals, Mining equipment, Mining services, Water management, ,

Metso Outotec has opened a new pump assembly plant in Lima, Peru, responding to the increasing market demand for large pumps used in mining applications in South America, and, at the same time, reducing delivery times to its customers in the region.

Once fully operational, the plant will be able to deliver standard Metso Outotec pumps with competitive lead times to regional customers, the OEM says.

Freddy Carrion, Pump Operations Manager at the new plant, said: “Pumps are critical parts in the mining process and used in various applications, from grinding to tailings. The new state-of-the-art assembly plant in Peru is specifically customised for the production of large Planet Positive MD Series pumps, which are typically used in demanding grinding circuit applications.”

Kalle Sipilä, Vice President, Pumps at Metso Outotec, added: “We selected Lima in Peru as the location for the assembly plant to reduce lead times and transport-related CO2 emissions. The plant is conveniently located close to the harbour and airport, enabling fast logistics to our end customers. Good availability and lead times are further enabled by a local supplier network, and we ensure high quality by having our own organisation carry out inspections. The new plant also has an expert proposal and engineering team to serve our customers.”

Metso Outotec has high sustainability targets for CO2 for its own operations and the supply chain. The target is net-zero CO2 emissions from the company’s own operations by 2030 and a 20% reduction in CO2 emissions from logistics by 2025.

Anglo American kicks off commercial ops at Quellaveco copper mine

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Anglo American has announced the start of commercial copper operations at its Quellaveco project in Peru, following the successful testing of operations and final regulatory clearance.

Quellaveco is expected to produce 300,000 t/y of copper-equivalent volume on average over its first ten years.

The milestone follows unloading of first ore to the primary crusher in June and the production of first copper in July.

Duncan Wanblad, Chief Executive of Anglo American, said: “Our delivery of Quellaveco, a major new world-class copper mine, is testament to the incredible efforts of our workforce and our commitment to our stakeholders in Peru over many years. Quellaveco, alone, is expected to lift our total global output by 10% in copper-equivalent terms and take our total copper production close to 1 Mt/y. At a highly competitive operating cost, Quellaveco exemplifies the asset and return profile that is central to our portfolio quality and our ability to provide customers with a reliable and sustainable supply of future-enabling metals.”

Ruben Fernandes, CEO of Anglo American’s Base Metals business, added: “We designed Quellaveco as one of Anglo American’s and South America’s most technologically advanced mines, incorporating autonomous drilling and haulage fleets – a first in Peru – a remote operations centre, as well as a number of Anglo American’s digital and advanced processing technologies. Drawing its electricity supply entirely from renewables, Quellaveco is setting an example of a low emission mine producing a critical metal for decarbonising the global economy – copper. In Quellaveco, we can see FutureSmart Mining™ in action.”

Anglo American expects that Quellaveco will ramp up fully over the next 9-12 months. Following a thorough commissioning and testing period, and receipt of final regulatory clearance, production guidance for Quellaveco in 2022 is revised to 80,000-100,000 t of copper (previously 100,000-150,000 t) at a C1 unit cost of $1.50/lb, previously $1.35/Ib. Production guidance for Quellaveco in 2023 and 2024 is unchanged at 320,000-370,000 t of copper.

Bedeschi stacker, conveyor being commissioned at Shougang Hierro iron ore ops

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Close to eight months after announcing the contract award, Italy-based Bedeschi S.p.a. has delivered a stacker and conveyor to Peru-based iron ore miner, Shougang Hierro Peru SAS.

The STK33/1000 stacker and conveyor have been designed to operate at a 1,800 t/h rate, and are being used as part of an expansion project. They have been installed in the San Nicolas beneficiation area where the mineral is processed and stocked before being dispatched.

Both pieces of equipment are in the commissioning phase ready to be handed over to the mine operators, Bedeschi said.

Back in December, the company announced the order from Shougang Hierro, saying it would be responsible for engineering, manufacturing and delivery of one conveyor (width 1,000 mm and total length of 710 m) and one stacker STK33/1000 designed for a nominal stacking rate of 1,500 t/h of iron ore.

It was also supporting Shougang Hierro in the optimisation of existing equipment, implementing DEM analysis and optimised design on interfaces with the new supplied equipment.

Shougang Hierro’s open-pit mine uses Chinese TYHI WK12 rope shovels loading Komatsu HD1500-7 and Caterpillar 785C trucks to transport ore to primary crushers, from where ore is conveyed to San Nicolas via a belt approximately 15.3 km long and with a capacity of 2,000 t/h.

The secondary crushing plant at San Nicolas sees the iron ore reduced in size by approximately 95% then fed to a magnetic separation plant for mill grinding and concentration via cyclones, magnetic separation and flotation, separated into two types of products, high-grade iron concentrate for sintering and the other used to feed the pelletising plant, after going through a filtration process. In the filter plant, thickening, homogenisation and filtering of the pulp received from the magnetic plant are carried out, leaving the ore ready to be made into pellets.

Anglo American produces first copper concentrate from Quellaveco

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Anglo American plc has announced first production of copper concentrate from its Quellaveco project in Peru – a major milestone as Quellaveco nears completion ahead of receiving final regulatory clearance for commercial operations to begin.

Tom McCulley, who has led Anglo American’s development of Quellaveco, said: “First copper production at Quellaveco is a key milestone in our delivery of this world-class asset, on time and on budget. The fact that we are today producing copper less than four years after project approval, including through two years of considerable pandemic-related disruption, is testament to the strength of our commitment to our workforce, local communities, the Moquegua region and government stakeholders in Peru. This first production of copper concentrate marks the beginning of the normal period of testing the processing plant with ore and the ramping up of mining activities to demonstrate readiness for operations.”

Adolfo Heeren, CEO of Anglo American in Peru, added: “Quellaveco is a project for all of Peru and especially for the Moquegua region. Once in full operation, Quellaveco alone will increase Peru’s copper production by around 10%, and deliver sustainable benefits for decades to come, including 2,500 direct jobs, the incorporation of local suppliers into our supply chain, the increase of water sources for human consumption and irrigation, digital connectivity, the expansion of agricultural areas and tax revenues. By working together in partnership, we will deliver enduring positive outcomes for all our stakeholders.”

Quellaveco is an open-pit copper mine located in the Moquegua region in the south of Peru. Construction started in 2018, with estimated total capex of $5.5 billion, which includes the $600 million additional cost of managing the impacts of the COVID-19 pandemic since 2020. In 2021, Anglo American also approved the construction of a Coarse Particle Recovery plant to allow retreatment of coarse particles from flotation tailings to further enhance copper recovery rates. Other technology innovations include the use of autonomous haulage operations – with a fleet of Caterpillar 794 ACs – and autonomous drilling operations – with Epiroc Pit Viper 351s. These are being overseen by an Integrated Operations Centre which recently started up.

Quellaveco is expected to produce 300,000 t/y of copper-equivalent on average over the first 10 years of operation, at a highly competitive C1 unit cost of circa $0.95/lb over the first five years once the operation reaches full production capacity.

Quellaveco has an estimated 1,700 Mt of reserves, 8.9 Mt of contained copper at 0.53% TCu, and a 36-year reserve life, with potential for further expansion given its estimated additional resources at 1,600 Mt, containing 6.1 Mt copper (at 0.38% TCu).

Anglo American expects that Quellaveco will reach design production capacity in 12 months. Production guidance for 2022 is 100,000–150,000 t of copper at a C1 unit cost of circa $1.35/lb. Production guidance for 2023 and 2024 is 320,000–370,000 t.

Quellaveco is owned 60:40 between Anglo American and Mitsubishi Corporation.