Tag Archives: South Australia

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.”

Raising Australia achieves Rotary Vertical Drilling System record at Wira Shaft

Base metals, Mine shafts and equipment, Mineral project development, Mining techniques, Precious metals, , , , , , ,

Byrnecut Group’s specialist raise drilling company, Raising Australia, has announced a new Rotary Vertical Drilling System (RVDS) record at the BHP-owned Prominent Hill operation in South Australia.

A total of 702.6 m of development over 324.19 hours makes the pilot hole at the Wira Shaft the longest single unit pass, top to bottom using a MICON RVDS, Raising Australia says.

The previous record set in 2013 was surpassed late last month as part of the shaft sinking project at Wira.

Byrnecut was awarded the Wira shaft work when the mine was under ownership of OZ Minerals – which recently became part of BHP.

BHP noted in its full year results to end-June 2023 that the Wira shaft mine expansion project was under construction. The hoisting shaft is expected to extend the mine life to at least 2036 and may provide access to potential mineralisation outside the current mine plan, it added.

The RVDS is a pre-programmable, self-steering device for drilling vertical holes. It consists of two modules integrated in the lower part of the bottom hole assembly between the drill bit and the first string stabiliser. A read-out unit consisting of a pressure transducer, an interface unit and a computer in the driller cabin complete the system.

In more than 450 projects around the world the RVDS has proven its reliability and accuracy, according to MICON, with, on average, the RVDS pilot holes deflecting less than 0.1% over the drilling distance.

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.

Epiroc to acquire key assets of RC drilling products manufacturer Schramm

Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

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.

OZ Minerals navigating Carrapateena mine traffic issues with Mobilaris solutions

Automation, Base metals, Communications in mining, IoT, Mining equipment, Mining services, Mining software, Precious metals, , , , , , , , , , ,

OZ Minerals, through the implementation of Mobilaris Situational Awareness and Mobilaris Onboard, has improved traffic flows at its Carrapateena copper-gold mine in South Australia, according to a recent case study.

Having implemented the solutions from Mobilaris, owned by Epiroc, the mining company gained a better understanding of where machines and people were physically located underground – and operations became safer.

Since commencing production in December 2019, the Carrapateena mine has become, over the past decade, one of the biggest mining projects in the state. The ore must be hauled from the production levels to the crusher level via a short decline with limited passing areas, which poses challenges.

To optimise haulage flows, OZ Minerals deployed Epiroc’s Mobilaris Mining Intelligence decision support system to digitise the mine.

Daniel Bruce, Superintendent, OZ Minerals Carrapateena, said: “We saw potential to remove some of the constraints we have underground. You can’t see around corners, and you can’t see through rock, so understanding where things are – where people and machines are – is a lot more difficult than in a typical workplace on the surface.”

OZ Minerals rolled out the first feature in 2019: Mobilaris Situational Awareness, a solution for surface control room operators. Mobilaris Onboard, a solution for underground operators in vehicles, followed in 2021. Thanks to real-time 3D visualisation, anybody with access to a tablet or a PC can quickly understand where machines are operating, according to Epiroc.

“Mobilaris Situational Awareness allows you to see, live, at any point in time, where all the equipment and people are in the mine,” Bruce said. “It also allows you to navigate to locations, equipment and refuge chambers.”

OZ Minerals had initially installed Wi-Fi tags on all its vehicles, which provided accuracy to around 150 m. With Mobilaris Onboard, it can achieve location accuracy of 5-10 m without any extra infrastructure, and all that is needed are basic OBD2 adapters or a Doppler radar, Epiroc says. Implementation started with trucks and loaders, and now the entire underground fleet has been equipped.

This has significantly improved real-time position information, according to Amelia Schmidt, Senior Technician in the site operations team at Carrapateena.

“Everyone at the site operations centre – dispatchers, mine controllers and haulage control – is now using Mobilaris Situational Awareness,” she said. “Previously, it could take quite a bit of time to search for a piece of equipment, but it only takes seconds now to see its last location.”

The system also helps OZ Minerals with its fleet management – to determine where trucks are, for instance – thus becoming a tool in the decision-making process.

Schmidt said: “For those who are perhaps new to the mine, we’ve been able to insert points of interest on the map, for example where it is best to hold. Cycle times are well managed, despite underground operations becoming a lot busier.”

OZ Minerals then implemented a second Mobilaris feature: Mobilaris Onboard, a tablet in a vehicle that acts just like a car navigator but without any need for a dedicated tracking infrastructure. This provided everyone underground with a tool that enabled them to easily understand how equipment was positioned around them.

Bruce added: “This is another piece of information that the operator can use to make a decision – and all of these minute decisions add up to a more productive and safer workplace.”

For Carrapateena Truck Captain, Joel Dodd, everyday work has become easier thanks to Mobilaris Onboard.

“One of the main benefits is that we’re able to travel down and get to our locations a lot better,” he said.

OZ Minerals now has around 200 tablets in vehicles underground – in trucks, LHDs, face drill rigs and light vehicles – and the feedback has been very positive.

“When people can see more clearly where other people are, it helps them avoid unwanted interaction,” Bruce said.

This is an edited version of an Epiroc Customer story published here

Swift Access to entertain and engage OZ Minerals Carrapateena FIFO workers

Base metals, Mine operation news, Mining services, Precious metals, , , , ,

Swift says it has secured an installation agreement and a new three-year subscription agreement with OZ Minerals Limited to service its Carrapateena mine site, in South Australia, with Swift Access.

The total contract value of both agreements is A$1.4 million ($954,680) over the three-year subscription term and includes associated installation revenue, with installation expected to be completed in the first half of the 2023 calendar year.

Swift said this contract represents ongoing subscription revenue for Swift Access: Swift’s premium entertainment and engagement solution powered by proprietary technology developed specifically to enable a reliable service within low bandwidth environments, Swift’s local 24-hour support and other additional channels.

Swift Access will allow OZ Minerals staff to cast their favourite streaming apps from their mobile device straight to their room’s TV, all while maintaining user privacy and offering smart device setup and allows management to improve efficiencies for facility staff.

As part of the agreement, Swift Access will provide OZ Minerals staff with Swift’s full content library including first-release movies and sector-specific mental health and indigenous education resources. Swift Access also allows facility managers to easily upload and distribute site information such as inductions, health and safety messages and more, directly to TVs across the site.

The entire Swift Access experience is managed by Swift’s unique bandwidth management platform and includes support services over the three-year term.

Swift CEO, Brian Mangano, says: “This new contract continues the roll out of Swift Access to the mining industry and is another significant step in our goal to be the product of choice. We are excited to work together with OZ Minerals and look forward to creating new, innovative solutions to address the challenges of the FIFO (fly-in fly-out) lifestyle.”

OZ Minerals breaks through at Carrapateena sub-level cave

Base metals, Mine operation news, Mineral project development, Precious metals, , , , ,

OZ Minerals has announced that the Carrapateena cave safely propagated to surface on December 29, 2022, marking the transition from development to production planning at the operation in South Australia.

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “The Carrapateena cave safely breaking through to surface marks a significant milestone for the mine and an important de-risking event for ongoing operations. With the cave now through to surface it enables mine planning to be optimised for production rather than prioritising the safe development of the cave, which has been the primary focus over the first two years of the mine’s life.

“I’d like to take this opportunity to congratulate the Carrapateena team for their dedication and focus to deliver a safe working environment and successfully managing the cave propagation to surface.”

Close to a year ago, the Crusher 2 level for the sub-level cave mine at Carrapateena was reached, enabling commencement of the Block Cave Expansion declines and an increase in sub-level cave production rates to from circa 4.7 to 5.0 Mt/y from 2023.

The expansion, which will involve converting the lower part of the current sub-level cave into a series of block caves, is expected to prolong operations at the copper-gold mine, while boosting production to 12 Mt/y. This will see average copper production come in at 110,000-120,000 t/y and gold output average 110,000-120,000 oz/y from 2026, compared with production of 55,262 t and 89,778 oz, respectively, in 2021.

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.”

Hawsons Iron and Flinders Ports engage in greenfield port option talks in South Australia

Mineral project development, Mining services, Steel and iron ore, , , , , , , , , ,

Hawsons Iron Ltd says it has signed a legally binding agreement with Flinders Ports Pty Ltd to co-operate on the potential development and operation of a greenfield port at Myponie Point Port on South Australia’s eastern Spencer Gulf.

The scope of the agreement, formalising the terms of an earlier non-binding Memorandum of Understanding, has been expanded to include evaluation of lower tonnage options using existing rail
and port infrastructure and possibly scaling production and export options over time.

Hawsons Managing Director, Bryan Granzien, said the terms of the agreement reflected the board’s decision to slow the pace of work on the 20 Mt/y bankable feasibility study (BFS).

“Importantly, this agreement will enable us to collaboratively assess and agree on the optimum achievable port to support a revised BFS, if required, including consideration of potential short- and long-term solutions for our preferred site at Myponie Point,” he said.

“Flinders Ports fully understands our decision to consider scaling up the project’s production output and using existing rail and port infrastructure initially to reduce capital costs, and they could not be any more supportive.”

Granzien said options for Myponie Point included using the existing rail network and the construction of initial port infrastructure to support a barging operation during the first stage of the project’s development.

“This approach at Myponie Point could deliver the best of both worlds through a lower output start-up operation at a lower capital cost and a clear pathway forward to expand production to 20 million tonnes per annum using the direct to port underground slurry pipeline,” he said.

Under the terms of the agreement and subject to further agreement in final transaction documents, Flinders Ports would construct, own and operate the proposed Myponie Point Port – reducing the Hawsons Iron project’s capital requirements, while enabling the company to participate in future growth as the port’s ‘cornerstone’ customer.

Granzien said Flinders Ports was equally committed to meeting environmental, social and governance (ESG) standards and embedding ESG considerations in business processes and decision-making wherever possible.

“This milestone agreement with an operator of Flinders Ports’ calibre is an important step to our goal of meeting demand for high-grade products so essential for decarbonising steelmaking,” he
said.

Flinders Port Holdings Chief Executive Officer, Stewart Lammin, said: “This agreement with Hawsons reflects our ongoing commitment to facilitating large-scale export projects from South Australia by leveraging existing infrastructure and exploring the development of new ports where necessary.

“The Hawsons project is an exciting prospect and aligns with our Sustainability Plan and aim to develop sustainable supply chains that meet the growing expectations of the market.”

The Hawsons Iron Project is some 60 km southwest of Broken Hill, New South Wales, Australia, in the emerging Braemar Iron Province. Prefeasibility Study results for the project, which was completed in 2017, showed that it is capable of producing the world’s highest-grade iron product (70% Fe), making it the world’s leading undeveloped high-quality iron ore concentrate and pellet feed project, the company says.