Tag Archives: Queensland

Whitehaven Coal to acquire BMA’s Daunia and Blackwater mines

Whitehaven Coal has executed definitive sale agreements with BHP Group and Mitsubishi Development Pty Ltd (together, BMA) to acquire 100% of both the Daunia and Blackwater coal mines in Queensland, Australia, for an aggregate consideration of $3.2 billion.

Whitehaven says the transaction delivers significant value upside with attractive growth opportunities in Queensland’s Bowen Basin, including synergies with Whitehaven’s Winchester South development project. It also transforms Whitehaven into a metallurgical coal producer in line with strategy, with pro-forma managed run of mine (ROM) production of around 40 Mt/y annum and pro-forma revenues of around 70% metallurgical coal and 30% thermal coal.

Completion of the acquisition is expected in the June 2024 quarter subject to satisfying conditions precedent including regulatory and merger control approvals.

The Daunia open-cut coal mine is 30 km south-east of Moranbah, and about 170 km southwest of Mackay in Queensland. The mine produces a hard coking coal (HCC) and pulverised coal injection (PCI) metallurgical coal products, and it is expected to produce an average of circa-4.9 Mt/y of saleable coal production over the next five years. It is expected that the remaining LOM production will continue until 2040. Daunia is adjacent to Whitehaven’s Winchester South development project in the Bowen Basin. Following the acquisition, Daunia’s coal products will continue to be exported to customers across Asia through the Dalrymple Bay Terminal near Mackay.

Back in 2020, BMA announced a A$100 million ($64 million) investment and new jobs as part of the introduction of 34 autonomous trucks at the mine.

The Blackwater coal mine is an open-cut mine which lies 73 km south-east of Emerald in Queensland and is expected to produce an average of circa-12.4 Mt/y of saleable coal production over the next five years. It is one of the largest coal mines in Australia, with a strike length of 80 km, and has the largest dragline fleet (7) in the Southern Hemisphere. Both HCC and semi soft coking coal (SSCC) metallurgical coal products are mined at Blackwater. The remaining LOM production is expected to be greater than 50 years. Blackwater’s coal products are exported to customers across Asia through the RG Tanna Terminal north of Gladstone.

Paul Flynn, CEO & Managing Director of Whitehaven, said: “This is a compelling transaction for Whitehaven that accelerates our strategy, transforms our company and delivers substantial value for our shareholders.

“This transformational acquisition will pivot our portfolio towards metallurgical coal, which has been a core pillar of our strategy for many years making this a better balanced business. Our thermal coal business remains strategically important as we continue to provide much-needed coal products to support the global energy transition and as customers seek our high-quality and high-CV products to limit their emissions.

“This is a highly attractive and materially earnings accretive acquisition, with considerable upside potential, which we expect will deliver meaningful returns to our shareholders for many years to come. It strengthens our portfolio of quality, long life assets in attractive locations providing geographic and operational diversification and scale benefits.

“We look forward to completing the transaction and welcoming the teams at Daunia and Blackwater into the Whitehaven business, and working with the local community and other stakeholders who will remain an important part of our operations.”

BHP partners on OTR tyre recycling and repaving project in Queensland

In a Queensland first, crumb rubber created from giant mining tyres has been used in a trial to resurface one of Queensland’s major highways, BHP reports.

The trial was a collaboration between the Queensland Department of Transport and Main Roads (TMR), BHP and the Australian Flexible Pavement Association, with the aim to investigate if a crumb rubber modified binder made from a 100% OTR mining tyre could be used to construct a spray seal for Queensland roads.

Two giant BHP mining tyres, each over 4 m high and weighing 4.2 t, were used in the trial.

Although OTR tyres make up to 25% of ‘end of life’ tyres in Australia each year, OTR tyres are only 4% of the tyre waste rubber that is recovered.

The recycling process started with cutting up the tyres to remove steel and fibres, followed by crushing and crumbing the rubber into crumb of a suitable size. The rubber crumb was then bagged ready for transport to the bitumen binder production site. The crumb was blended into the binder, which was then transported to its final destination for spraying onto the road surfacing.

One giant mining tyre, in this context, provides 3.55 t of crumb rubber, able to seal up to 3.5 km of rural highway, BHP says.

The Peak Downs Highway where the repaving process took place links the towns of Mackay and Clermont and is the main link between Queensland’s Whitsunday Coast and the Central West region of the state near Moranbah.

Acting BMA Asset President, Tim Day, said the collaborative approach provides the mining industry a sustainable way to reuse tyre waste that would otherwise end up in landfill.

“It will have a positive impact on the environment, as more than 6,000 tonnes of tyres can be used to seal roads,” Day said. “This is a great example of how the by-products of mining can be used to positively affect the local communities where we operate, and we look forward to exploring how we can now further expand this trial to other road surfaces around the country.”

Lydia Gentle, Manager – Portfolio Delivery at BHP, was at the forefront of the trial saying she’s proud of the final outcome.

“It was a fantastic collaboration between BHP, TMR and our industry partners, and marks an exciting start to a more sustainable future for our tyre waste,” Gentle said.

Since completion, the highway surfacing has performed very well in Central Queensland summer heat under the intense mining traffic and continues to be monitored, according to BHP.

BHP Mitsubishi Alliance secures half of Central Queensland power requirements with renewables

BHP Mitsubishi Alliance (BMA) has entered into a new renewable power purchase agreement (PPA) with Queensland’s publicly-owned energy generator and retailer CleanCo, which, the company says, is expected to provide half the forecasted electricity demand of BMA’s Central Queensland operations over five years from January 2026.

The new PPA will run to the end of 2030 and effectively extend an existing low carbon emission power agreement between BMA and CleanCo currently running to the end of 2025.

This second PPA will enable BMA to continue to source half of its expected electricity needs from low greenhouse gas emission sources such as solar and wind, as well as pumped hydro.

BHP President Australia, Geraldine Slattery, said: “We are increasing renewable electricity at BMA in line with our decarbonisation commitments to 2030 and beyond, improving the long-term sustainability of our business while at the same time supporting Queensland’s renewable electricity infrastructure build, regional communities and local jobs.

“We expect demand for Queensland’s higher-quality metallurgical coal to remain strong for many years to come, as major steelmakers look to reduce their emissions intensity while delivering the steel needed to support global population growth and decarbonisation infrastructure.”

BHP Chief Commercial Officer, Vandita Pant, said: “Using more renewable electricity at our operated assets across the globe is key to our operational decarbonisation strategy. We are pleased to continue our strong relationship with CleanCo.

“Through a growing number of agreements to supply our mines in Chile, Queensland, Western Australia and South Australia with renewable electricity, we are making good progress on decarbonisation while supporting the development of renewable infrastructure and stimulating regional economies.”

The new PPA will help support four renewable electricity projects across regional Queensland, which combined are expected to generate more than 1,500 local jobs during construction: the Dulacca Wind Farm due for completion in late 2023, the MacIntyre Wind Farm due for completion in 2025, and the Western Downs Green Power Hub and Kaban Wind Farm that currently supply electricity to the grid and are expected to reach full commercial operation later this year.

The PPA is also linked to CleanCo’s new renewable energy storage initiative, which directs excess renewables to the Wivenhoe Pumped Storage Hydroelectric Power Station to support an increase in around-the-clock renewable supply and cost management.

CleanCo CEO, Tom Metcalfe, said: “At CleanCo we are committed to providing tailored, clean energy solutions to help our customers decarbonise.

“It is our role to develop solutions that meet the unique energy needs of these companies so that they can thrive in a net zero future and I am thrilled BMA has entrusted CleanCo to continue to supply reliable, renewable energy for its operations.”

BHP is on track to achieve its medium-term target to reduce operational greenhouse gas emissions by at least 30% by FY2030 (from FY2020 levels). BHP also has a long-term goal to achieve net zero operational greenhouse gas emissions by 2050.

CDE opens new Australian headquarters in Queensland

CDE has announcd the official opening of its new Australian headquarters in Queensland as it commits additional resources to the local market.

Based in Stapylton, near Brisbane and the Gold Coast, the new 2,900 sq.m site, complete with managed stores, is part of the company’s wider growth plans and follows the announcement and commissioning of several new large-scale projects in the Australasian market.

CDE says it has steadily grown its local team to over 20, across business development, project management, installation, commissioning and aftersales support teams with plans for future recruitment underway.

“We have designed and engineered over 60 projects across Australia, New Zealand and Papua New Guinea, including turnkey solutions for Repurpose It – described as “Australia’s most sophisticated resource recovery plant” – and Walker Quarries – one of the newest and most advanced quarry wash plants in New South Wales,” the company said.

In 2022, the company was also awarded the contract to design, supply and install a state-of-the-art washing solution for Rino Recycling for the treatment of construction & demolition (C&D) and commercial & industrial waste materials at their Pinkenba site in Brisbane.

On the mining side, in 2019, Centrex Metals partnered with CDE Meta to deliver a state-of-the-art wet processing plant at the company’s Ardmore site, in Queensland, to produce phosphate concentrate.

Australasian General Manager, Daniel Webber, says: “Our purpose is to create our best world a tonne at a time, and to do this we need to be supporting our customers to realise their purpose and vision. Support means being there when they need us, and that means having CDE boots on the ground.

“We have great confidence in the potential of this market and we’re fully committed to supporting new and existing customers, whose trust in our expertise is key to making this very investment possible.”

To minimise plant downtime, the investment in CDE’s new Australian headquarters includes the development of fully stocked and managed stores to house high-wear, consumable and critical plant components.

Peter Neely, CDE CustomCare Regional Manager for Australasia, says: “For the first time in the local market, we’re able to offer readily-available parts. Responsive on-the-ground support and locally available parts with short lead times means we are better equipped to strengthen our direct relationships with customers, ensuring their plants continue to run material at optimum efficiency to support a fast return on investment.”

The company’s pre-emptive and preventative approach to plant maintenance sees thousands of replacement parts readily available for immediate dispatch to customers throughout Australasia.

Webber adds: “Our approach to aftercare is designed to ensure our customers get the maximum performance from their CDE equipment. Central to this is having a direct relationship with customers and continuing to invest resources in the markets where they are based. Our investment in Australia is but one part of wider plans to invest in and resource our regional teams and offices to provide the best level of care possible to protect our customers’ investments.”

“By growing our regional team we are closer to our clients during the sales process, resulting in better solutions being developed; we are closer during project delivery, leading to safer and more efficient work sites; and, most importantly, we are closer once our customers plants are operational, enabling us help maintain uptime through scheduled maintenance activities and prompt professional breakdown support.”

SRG Global builds out contract book with BHP, Rio Tinto maintenance work

SRG Global says it has secured maintenance contracts in Queensland and an Aboriginal JV contract in Western Australia for clients including BHP and a subsidiary of Rio Tinto.

The contracts, valued at circa-A$65 million ($43 million), bring the company’s new contract wins since the start of the 2023 financial year (which ends on June 30) to A$1.2 billion.

The Queensland maintenance term contracts include contracts with Rio Tinto to provide engineered access services at Yarwun in Gladstone. This contract will start immediately and is expected to continue for a period of five years, including two one-year options to extend.

The Bugarrba Aboriginal JV term contract with BHP is to provide shut down engineered access services in the Pilbara of Western Australia. The contract will start immediately and is expected to continue for a period of five years, including three one-year options to extend.

David Macgeorge, Managing Director, commented: “These contract wins showcase our specialist skillset as a trusted partner to deliver maintenance services for our clients critical infrastructure in the marine, alumina, steel and iron ore sectors.”

Epiroc to acquire key assets of RC drilling products manufacturer Schramm

Epiroc says it has agreed to purchase the key assets of Schramm Australia, a leading manufacturer of products for reverse circulation (RC) drilling.

Since February 2023, Schramm Australia, based in Perth, has been in voluntary administration, and Epiroc will now continue the business. The assets include intellectual property as well as two production facilities near Perth and two service centres in Queensland and South Australia. Schramm Australia’s employees will be offered employment at Epiroc.

“The Schramm products and brand are well known as a global leader in RC technology,” Helena Hedblom, Epiroc’s President and CEO, said. “We look forward to welcoming the strong team at Schramm Australia to the Epiroc Group.”

The asset purchase is expected to be completed in the June quarter of 2023.

Loadscan load volume scanner study highlights OPEX, revenue opportunities at Queensland gold mine

Loadscan says a recently released report focusing on the results from using a Loadscan load volume scanner at an underground gold mine in central Queensland, Australia, has reinforced the economic and environmental value of its solution.

The study, ‘UNDERGROUND MINING; Economic benefits of load volume scanning of underground mining trucks,’ was conducted over a seven-month period at the mine mine by Professor Peter Knights and Maximillian Reuter from the University of Queensland in Brisbane, Australia. The data gathered over that period indicated a significant incidence of carryback, excessive fuel consumption and under-utilisation of equipment, all of which contributed to unnecessary operating costs and considerable lost revenue, Loadscan says.

The Loadscan Load Volume Scanner (LVS) is designed primarily for the civil construction sector and uses eye-safe LiDAR laser scanning technology, combined with proprietary Loadscan software, to measure the exact volume of material in the bin of a truck. Loadscan’s Mine Payload Technologies division has further developed its Mine Payload Scanner (MPS) for mining applications using technology based on its LVS system.

In operation, empty haul trucks are driven below an elevated scan head to create a reference scan in the database and then, when loaded, are scanned during every pass from the mine, with those scans compared with the reference image to accurately measure the volume of the truck’s load.

Because trucks don’t need to come to a complete stop during the scanning process, the MPS system allows for a time saving over the use of traditional weigh bridges, reducing truck cycle times, while installation, operating and maintenance costs of an MPS are also considerably lower than in-situ weighing systems, according to the company.

Trucks are fitted with RFID tags for automatic recognition and tracking, which allows for detailed real-time reporting and data acquisition. The scan information returned can highlight underloading, overloading – negatively effecting revenue – or uneven loading, which can cause unnecessary stress and wear on truck components and substantially increase operating costs.

“One of the most important factors that the MPS can highlight is the incidence of carryback (or haulback), where material isn’t discharged from the bin during unloading and is carried back into the mine portal, reducing effective payload and having a considerable impact on productivity and, ultimately, revenue,” Loadscan says. “By identifying carryback, the material can be accounted for, deducted from shift tallies where necessary, and removed from the bin to ensure accuracy and improved payload capacity.”

Data for the study was gathered from four articulated haul trucks – three Epiroc MT6020 models with a rated capacity of 60 t, and a single Epiroc MT65 with a rated capacity of 65 t. More than 6,600 scanner readings were recorded over the four trucks during the seven-month period. Carryback was identified in more than 60% of the trucks’ haulage cycles and accounted for more than 980 cu.m of payload over the duration of the study, with an estimated revenue loss of A$370,000 ($243,969), according to Loadscan. In addition, figures were as high as almost 3,500 litres of additional fuel used hauling carryback over the study period, adding almost A$7,000 in estimated additional operating costs.

Loadscan Managing Director, Carey West, said: “Mining across the world is coming under a more intense focus to meet increased best practice requirements such as efficient use of equipment, reduced operating costs and a wide range of environmental issues, which is why metrics such as carryback, fuel consumption and loading efficiencies are so important.”

MPS data showed the average load volume for the 60 t-rated MT6020 trucks was just under 26.53 cu.m, which returned an average payload weight of slightly more than 48 t (based on an estimated bulk density of 1.82 t/cu.m). Isolated scans of the MT65 however, showed average volumes of less than 30 cu.m, equivalent to a payload of just under 54 t – considerably below its rated capacity of 65 t.

Conclusions from the report showed that the capacity of the MT65 could be considerably better used by increasing the average load. Estimations show an increase of just 10% in the average load would be valued at slightly under A$1 million per year, Loadscan said.

West added: “Inefficient loading cycles can have a huge impact on profitability. The MPS provides real-time data of every load with an accuracy of +/- 1% and, by identifying underloading, equipment can be better utilised and operators can be trained in more efficient loading practices.”

Overloading of trucks increases both cycle times and fuel consumption, reducing efficiencies and adding increased stress to machinery components, especially if trucks are loaded unevenly.

Potentially due to the presence of carryback in the bin, just over 9% of the trucks recorded during the survey period showed load volumes that could be categorised as overloading, with load volumes skewed to the right-hand side of the haul truck (potentially due to the location of the carryback material).

Uneven loading can create excessive tyre wear, add unnecessary load to suspension components and create stress through the driveline, Loadscan said.

The MPS allows operators to monitor off-centre loading by scanning the truck bin in four quadrants and generating visual warning indicators, according to the company.

West concluded: “Volumetric load scanning is an extremely valuable tool that can be utilised effectively to reduce mining operating costs and increase effective and efficient use of equipment.

“This report, which has been compiled on the back of collecting comprehensive amounts of data, indicates very clearly that the Loadscan system provides vital and useful information for operators, allowing them to work far more efficiently, generating better bottom-line returns and reducing operating costs.”

Solar farm goes live at MMG’s Dugald River zinc-lead mine

MMG says the new solar farm at its Dugald River operations in Australia has hit the commerical operation milestone, two months after construction was completed.

Reporting in its March quarter results, the company said it expected the solar project to reduce the mine’s carbon footprint and provide immediate energy cost savings, with approximately one-third of gas-fired power used in Dugald River operations expected to be replaced.

Back in late-2021, MMG signed an agreement with APA Group to construct 44 MW of capacity to serve the Dugald River zinc-lead mine in Queensland, with operations expected in the March quarter of 2023.

Dugald River resumed production on March 21 after a suspension of 34 days due to a fatal incident at the mine involving two contractors from Barminco. MMG says the mine continues to ramp-up through April with the focus remaining on safely returning its workforce to the underground environment. Production in 2023 is now expected to be in the range of 135,000 t and 150,000 t of zinc in zinc concentrate, lower than the prior guidance of 170,000 t and 185,000 t.

Austin Engineering delivers Indonesia-made truck trays into Pilbara region

Austin Engineering Limited has completed the first shipment of fully built and assembled truck trays from its Indonesia facility in Batam, which have been delivered directly into Western Australia’s Pilbara mining region.

The delivery comprised four truck trays that were shipped from Indonesia via Singapore into Port Hedland and then onto the customer site.

Austin recently completed a major expansion and upgrade of its Indonesian facility, which has doubled its manufacturing capacity to address increased demand.

The larger Indonesian facility is allowing Austin, it says, to mitigate the impact of ongoing supply constraints in Western Australia, particularly for skilled fabrication labour, which has been a limiting factor for production.

Alleviating these supply constraints has enabled the company’s local Western Australian facility to maintain more even operational output in line with local labour availability while ensuring Austin’s customers continue to have access to products, it said.

A return of freight costs to pre-pandemic levels has also enabled Austin to augment the shipping of sub-assemblies into Perth for final build (which has been standard practice for some time) with the delivery of full truck trays direct to the Pilbara.

Austin said: “The ability to ship directly from Indonesia to Port Hedland has the added benefit of removing the need for road haulage from Perth to client mine sites in the Pilbara. A reduction in overall transport and logistic requirements has safety, environmental and cost benefits. Specifically, a reduction in road haulage is favourable from a road safety and emissions reduction perspective.”

Further direct deliveries into the Pilbara are being planned with customers to augment Austin’s Australia-based supply, it said.

Austin CEO and Managing Director, David Singleton, said: “We are extremely pleased to see our design and manufacturing strategy starting to work in sync in the Asia Pacific region. The expanded facilities in Perth and Indonesia are allowing more flexibility from a manufacturing and delivery point of view. We have previously shipped truck trays, buckets and other mining equipment directly into Queensland, but it is the first shipment we’ve completed direct to the major mining centre of the Pilbara, and we expect this supply route to become a regular feature of our integrated supply chain.

“We remain committed to Australia as a manufacturing location, exemplified by our two factory units in Kewdale, Perth along with our two operating sites in Queensland. In addition, the majority of the steel we used in Australia and Indonesia is sourced from Australia.“

South32 and Emesent collaborate on LiDAR-equipped Spot trials at Cannington

South32’s Cannington Mine, in Queensland, Australia, says it is supporting Emesent in its pursuit of developing and testing light detection and ranging (LiDAR) scanning and automation technologies in real underground mining environments.

The team from Emesent were recently on site at Cannington with Spot the Robot Dog, trialling Spot’s autonomy development and capabilities in the underground silver-lead mine.

While the technology is still in its research and development phase, it has the potential to guarantee safer outcomes and ultimately transform the way Cannington operates, South32 says. Mining work safety and productivity can be improved by deploying the autonomous capabilities of Spot in various potential scenarios with different data capturing tools, including scanning, video recording and heat sensing, it added.

The focus on site was testing Spot’s capability in ‘post blast re-entry’ scenarios and emergency response. Spot, with an integrated LiDAR scanner, autonomously navigated sections of the mine, travelling through uneven and wet ground without operator intervention and exploring unlit areas. It was able to produce a 3D Point Cloud map of the underground mine in the process, South32 said.

The Cannington team has previously worked with Emesent to help develop industry-leading technologies including its Hovermap System for underground scanning, which is now used in mines all over the world.