Tag Archives: South Australia

South Australia Government extends Accelerated Discovery Initiative

Mineral exploration, Mining finance, Mining policy, Mining services, , , , ,

The South Australia Government says it will extend its Accelerated Discovery Initiative (ADI) until 2025, committing another A$11.5 million ($8.2 million) to the program.

The ADI provides co-financing to mineral exploration activities to attract greater exploration investment, bringing forward new mineral resource discoveries, jobs, Aboriginal employment opportunities and royalties, according to the government. It also has a focus on supporting innovative technologies, collaboration and new exploration concepts to fast-track mineral exploration across South Australia.

Minister Dan van Holst Pellekaan said the ADI plays an important role in maintaining South Australia’s international leadership in mineral exploration development.

“We expect to receive a high level of interest during round three, with a funding of up to A$3 million reflecting the global significance of ADI and the calibre of proposals,” van Holst Pellekaan said. “ADI is Australia’s most diverse exploration co-funding program, offering support for traditional drilling and geophysics, as well as other non-conventional exploration techniques, frontier logistics support, technology and research innovation.

“With a heavy emphasis on new technologies, scientific endeavour, and upskilling, to boost discovery while reducing risk, ADI reflects the changing drivers in exploration.

“Successful projects will bolster activities and support innovative technologies to generate and test new exploration ideas and increase new data sets to help accelerate data sharing between entities within the exploration sector.

“In additional to innovative exploration programs, ADI initiatives have fostered meaningful employment and upskilling of Aboriginal employees and businesses. So far, during rounds one and two, funding of A$7.4 million was allocated to 36 initiatives.”

Managing Director and Chief Executive Officer of Barton Gold, Alexander Scanlon, said the ADI has allowed Barton to accelerate its innovation-driven exploration approach to the central Gawler Craton region of South Australia.

“ADI facilitated a trial of deep ground penetrating radar (GPR) in the region and early results are compelling,” Scanlon said. “The technique has not only found over 25 shallow new structures, but also their orientation, giving us clear, shallow targets for precise, high-efficiency and low-cost drill testing.

“We are looking at an order of magnitude gain in cost and time to target delineation, acquiring these targets for less than $200,000 over a 1-2 month period, versus A$2-3 million of drilling over a 1-2 year period of time,” he said.

Barton is an ASX-listed gold exploration company with a total attributable circa-1.1 Moz of gold in the resource category (28.74 Mt at 1.2 g/t Au), a pipeline of advanced exploration projects and brownfield mines, and 100% ownership of the only regional gold mill in the central Gawler Craton of South Australia, the company says.

van Holst Pellekaan said Barton’s recent success is another example of the benefits of the ADI not only delivering results for Barton but sharing the results publicly that will help other explorers unlock new discoveries.

“It was pleasing to see round two heavily over-subscribed, with a total of 76 high quality applications received with 22 projects assessed against the project criteria to receive funding,” he said. “We are anticipating a similar amount of interest for round three.”

The extension of the ADI will significantly contribute to increased exploration activity and discovery of new mineral resources to achieve the South Australian Growth State target of A$300 million in annual exploration investment, the government says.

Komatsu MC51 gets cutting at Hillgrove’s Kanmantoo copper project

Base metals, Explosives and blasting, Mine operation news, Mineral project development, Mining equipment, Mining services, Sustainable mining, , , , , , ,

The world’s first portal cut using “transformational continuous mining technology” is now underway with the help of Hillgrove Resources’ team at the Kanmantoo copper mine in South Australia and Komatsu’s MC51 machine, powered by DynaCut tech.

The underground decline at Kanmantoo commenced last Friday, just over a month after Hillgrove announced that the South Australian Government had awarded it a A$2 million ($1.5 million) grant to trial the new underground mining technology.

The continuous mining technology, which is also being tested at Vale’s Garson mine in Ontario, Canada, and has previously been trialled at Newcrest’s Cadia mine, removes the need for blasting, providing the potential to transform the traditional underground development process and result in improved safety and operational performance, Hillgrove said.

On top of this, the Komatsu MC51 technology is 100% electrically powered, providing a mine development option for companies pursuing zero-emission mining.

The Komatsu MC51 will be used to develop a portal and a circa-500 m underground decline at Kanmantoo, a former-operating open-pit mine that is transitioning to underground operations. This transition is permitted and benefits from having all existing infrastructure in place, including an operational 3.6 Mt/y processing facility and tailings storage facility, Hillgrove said.

The continuous cutting trial will focus on demonstrating the commercial viability of the machine and trial new materials handling and ground support processes. Ground support assistance is to be provided by PYBAR Mining Services.

“The underground decline has multiple benefits to Hillgrove, including the development of underground drilling platforms which reduce drilling cost as Hillgrove continues to expand and infill drill the existing Kanmantoo Underground resource,” the company has previously said.

It could also help bring forward potential first copper production and reduce future development costs, Hillgrove added.

Hillgrove CEO and Managing Director, Lachlan Wallace, said the development of the underground decline and establishment of underground drilling platforms was a key milestone in the Kanmantoo Underground development program.

“We are also excited to advance the mine development in a way that leads the industry towards zero-emission mining, which is without question the way of the future,” he said.

On top of the A$2 million grant from the South Australian Government, Hillgrove says it has secured favourable payment terms from Komatsu, which sees no payments until funding for the mine development is secured. The deferred and contingent nature of the agreement and grant funding results in minimal cash outflow to Hillgrove while the company focuses on the drilling program.

Hatch to move forward with process plant DFS for Magnetite Mines’ Razorback iron ore project

Comminution of minerals, Mineral processing, Mineral project development, Mining services, Steel and iron ore, , , , , , ,

Magnetite Mines Ltd says it has appointed Hatch to complete the process plant section of the Definitive Feasibility Study (DFS) on its Razorback iron ore project in South Australia.

This, Magnetite Mines says, is an important contract award for the company and represents the largest component of the DFS expenditure and completes the appointment of major engineering roles.

Hatch’s scope builds upon the process plant design and AACE Class 4 Estimate that was completed as part of the prefeasibility study (PFS). This study supported the declaration of a maiden ore reserve of 473 Mt based on 12.8 Mt/y plant throughput and 2 Mt/y of high-grade concentrate. It also included plans to incorporate ore sorting technology.

Key areas of work for Hatch on the DFS include:

  • Designing a metallurgical test program to confirm comminution and processing properties;
  • Improving and defining the process flow sheet based on metallurgical results and optimisation reviews;
  • Developing the mechanical, piping, electrical, structural, and civil engineering to support an AACE Class 3 Capital Cost estimate; and
  • Providing construction and procurement input to develop the contracting strategy for execution.

At completion of this scope of work, Hatch will provide design deliverables and cost estimate, developed in line with the AACE guidelines for a Class 3 estimate (18R-97) for the process plant, Magnetite Mines says. The deliverables will be to a standard and level of detail that will allow Magnetite Mines to include them in a tender package to obtain proposals for a predominantly fixed price design and construct contract or an engineering, procurement and construction management contract on market terms for procurement of the process plant.

Claude D’Cruz, Director – Metals, Australia-Asia for Hatch, said: “Following the successful delivery of the previous study work, Hatch is very excited to continue our association with Magnetite Mines through to the DFS and to be able to apply our considerable magnetite processing experience to the development of Razorback.”

Magnetite Mines Limited Executive Chairman, Peter Schubert, said: “The PFS confirmed the process plant scope and the attractiveness of producing high-grade iron ore products at a competitive cost from the first stage of development of the company’s extensive iron ore resources. The DFS will undertake more detailed engineering and generate the tender packages for construction, supporting a decision to mine.

“This continues our strategy to carefully and systematically progress the project with the guidance of best-in-class technical consultants. We look forward to working with Hatch, as we develop Razorback into a successful operating iron ore business.”

BHP contracts indigenous-owned Zancott Knight for Olympic Dam refuelling services

Base metals, Mine operation news, Mining industry recognition, Mining services, Steel and iron ore, , , , , , , , ,

In the lead-up to the 20-year rebuild of the flash furnace at BHP’s Olympic Dam mine in South Australia, the miner has awarded a A$1.8 million ($1.3 million) contract for refuelling services to local, indigenous-owned company Zancott Knight.

The flash furnace rebuild is part of the current smelter maintenance campaign, SCM21, at Olympic Dam, with BHP actively seeking out opportunities for local, small and indigenous businesses to be part of the action, Jenny Purdie, Asset President Olympic Dam, told attendees at the Copper to the World Conference in Adelaide, yesterday.

Purdie said Zancott Knight is a local, indigenous-owned company closely connected to the Arabana community. She added that Zancott Knight has brought in a sub-contracting partner, WB Enterprises, who are closely connected to the Kokatha community, to carry out the refuelling services contract.

Both these groups make up two of the Traditional Owner partners Olympic Dam engages with, she said.

BHP’s global operations spend approximately $2 billion with small, local and indigenous businesses each and every year, Purdie added.

OZ Minerals Board gives go ahead for shaft expansion at Prominent Hill

Automation, Base metals, Comminution of minerals, Environmental, Mine operation news, Mine ventilation, Mineral project development, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , , ,

The OZ Minerals Board has approved construction of a hoisting shaft at the Prominent Hill copper-gold mine in South Australia, paving the way for a mine life extension and throughput expansion.

Prominent Hill mine began operation in 2009 as an open pit and is now an underground mine producing 4.5 Mt/y, moving to 4.5-5 Mt/y from 2022 via a trucking operation.

Coming with a pre-production capital expenditure of A$600 million ($436 million), the Wira Shaft expansion project will see the underground production rate increase to 6 Mt/y from 2025. At this point, the average annual copper and gold production is expected to be circa-54,000 t and circa-108,000 oz, respectively, some 23% more than expected in the current trucking operation.

The study leverages close to 100 Mt of mineral resources outside the previous Prominent Hill ore reserves of 38 Mt of underground material.

Sinking of the shaft is expected to commence in the March quarter of 2022. Mining and installation of underground and surface infrastructure is scheduled for completion along with commissioning of the Wira shaft at the end of 2024, with nameplate capacity expected in the first half of 2025.

The shaft design comprises a 1,329-m-deep, concrete-lined shaft with a diameter of 7.5 m. Construction of the shaft will be via conventional strip and line method, with the sinking period approximately two years.

The shaft mine expansion also enables generational province potential with further mine life extensions possible as 67 Mt of resource remains outside the shaft expansion mine plan, OZ Minerals says. Further, an exploration program has also identified that mineralisation remains open at depth beyond the current resource boundary, potentially accessible via the shaft.

Announcing the expansion today, OZ Minerals Chief Executive Officer, Andrew Cole, said: “We are thrilled to see a long and productive future for Prominent Hill with the Wira shaft mine expansion enabling access to areas previously thought uneconomic and opening up potential new prospects.

“Prominent Hill is a quality orebody and remains open at depth. The reliable performance of the operation and its consistent resource to reserve conversion rate were all influential in the decision.”

For the first time, the company has used a carbon price in determining the project valuation, a practice it plans to adopt in other OZ Minerals projects going forward, Cole said.

The company plans to reduce its underground loading fleet to eight vehicles, from nine after the shaft expansion, with its trucking fleet going from circa-14 to five, post-shaft.

Scope 1 emissions intensity per tonne of concentrate are also expected to drop from 0.47 t CO2-e/t to 0.28 t CO2-e/t after the shaft installation.

The pre-production capital of A$600 million, which was an increase on the A$450 million outlined in the November 2020 expansion study, enables transformation of the site in line with the strategic aspirations of OZ Minerals, it said.

Provisions have been included in site capital projections to support this transformation, including progressing underground fleet electrification, upgrading some of the existing infrastructure, remote operation capability and automation.

The company expanded on this: “A battery-powered mining fleet is part of the future vision as OZ Minerals moves towards its zero-carbon emission aspiration. For this study, diesel trucks were assumed. However, installation of enabling infrastructure is included in the Prominent Hill Expansion case to minimise future disruptions when the switch to an electric fleet occurs. This, implemented as part of the asset’s site-wide electrification aspiration, would contribute to a further reduction in Scope 1 emissions.”

A pilot study is also being undertaken to review a low-energy dry grinding option. The Prominent Hill Expansion Study is not directly connected to, nor dependent on this ongoing work, however, the work presents potential future cost reduction and other opportunities, OZ Minerals said.

Australia’s FBI CRC backs Mine Electrification project

Environmental, Mining finance, Mining industry recognition, Mining services, Power supply for mines, Sustainable mining, , , , , , , , , , , , , , , , ,

Experts led by the University of Adelaide are looking to help the mining industry find a pathway to more efficient, green, sustainable and safer mining operations by transitioning to battery-supported electric vehicles (BEVs).

In a new project funded by the Future Battery Industries Cooperative Research Centre (FBI CRC), researchers are providing the Australian mining industry with a suite of decision-making tools and guidelines that will aid their transition towards BEVs and associated stationary machinery in their mining operations, the FBI CRC said.

“About 30-50% of the total mine site energy usage is related to diesel-powered mining vehicles,” Dr Ali Pourmousavi Kani, the University of Adelaide’s, Lecturer, School of Electrical and Electronic Engineering, said. “This represents a significant proportion of current mining operational costs, and the prevalence of diesel fuel usage presents significant health and safety concerns.

“Mining is a critical industry in Australia. It is great to see a growing movement in this industry to reduce their carbon emissions in line with the global transition to renewable energy and electric transportation. Electric vehicles and machinery, combined with partial or standalone renewable energy powered microgrids, will provide a pathway to more efficient, sustainable and safer mining operations.”

Dr Pourmousavi Kani will work on the project, named ‘Assessment, Design and Operation of Battery-Supported Electric Mining Vehicles and Machinery’, or Mine Electrification for short, with Associate Professor, Wen Soong, and Associate Professor, Nesimi Ertugrul, who are also from the School of Electrical and Electronic Engineering.

The project was developed in conjunction with and funded by the FBI CRC and its participants which are: BHP Nickel West, IGO Limited, Energetics Pty Ltd, Galaxy Resources Limited, Multicom Resources Limited, the South Australian Department for Energy and Mining, Queensland’s Department of Energy and Public Works, the Minerals Research Institute of Western Australia and the University of Western Australia.

The project, which has a budget of approximately A$2.76 million ($2.02 million), of which A$1.16 million is in cash and the remainder in-kind support, and lasts for 3.5 years, will, the FBI CRC says, enable the resources sector to:

  • Reduce the costs and improve the reliability of energy;
  • Improve occupational health and safety; and
  • Reduce the carbon footprint of production.

“The project will allow mining companies to understand the benefits and technical risks and costs of implementation,” Dr Pourmousavi Kani said.

“It will also assist equipment, technology and service providers to service mining companies during the transition to BEVs. End users will benefit from a de-risked strategy to transition, reduced production costs, reduced energy costs, reduced emissions and an upskilled work force.

“Overall, this project will help the Australian mining industry to remain competitive globally by greening their production and lowering their operational costs.”

Dr Jacques Eksteen, a Research Director of the FBICRC, said: “This project is highly significant for the FBI CRC as it serves as an important development and demonstration project of the uptake of battery technologies in mining vehicles and mobile equipment.

“This application of battery technology offers significant potential benefits to industry, and we are keen to invest in developing and enhancing capability in the field of mobile mine electrification.”

South Australia’s Minister for Energy and Mining, Dan van Holst Pellekaan, added: “Sustainable mining operations is a focus for South Australia, and the Mine Electrification project demonstrates our leadership and ability to collaborate as we work towards reducing our carbon emissions.”

ZED70 Ti battery-electric vehicle takes trip underground at OZ Minerals’ Carrapateena

Base metals, Environmental, Mining equipment, Power supply for mines, Precious metals, , , , , , , ,

The Zero Automotive ZED70 Ti has become one of the first Australia-made street legal light electric vehicles to enter an underground mine after making a trip into the Tjati Decline at OZ Minerals’ Carrapateena copper-gold operation in South Australia.

The vehicle made the trip in January and, according to OZ Minerals, managed over four complete round trips ‒ from the surface to the bottom of the mine and back ‒ without requiring a plug-in charge.

OZ Minerals said: “A big shout out to Zero Automotive for their hard work in developing such a great vehicle and commissioning it for underground use within two days!”

The Zero Automotive ZED70 Ti uses LTO chemistry and comes equipped with a specially selected battery housing, control systems and charging capability to endure the “hyper saline underground environment” at Carrapateena, OZ Minerals previously said.

OZ Minerals previously tested a Zero Automotive ZED70 battery-electric light vehicle on site at Carrapateena.

In June 2020, it also outlined a prefeasibility study on an expansion of Carrapateena that included a trial of electric light vehicles and establishment of a renewable energy hub.

Byrnecut adds Carrapateena to OZ Minerals underground contract mining portfolio

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

OZ Minerals Ltd has changed underground mining contractor at its Carrapateena copper-gold mine in South Australia following Downer EDI’s move to divest its mining services businesses to MACA.

The company has now signed an agreement with Byrnecut Australia for the delivery of underground mining and associated mining services at Carrapateena. The two companies know each other well, with Byrnecut already carrying out underground mining services at OZ Minerals’ Prominent Hill for the past 10 years.

The five-year alliance-style contract with Byrnecut is valued at circa-A$130 million/y ($101 million/y), OZ Minerals said. Byrnecut has already commenced a seven-week mobilisation to the Carrapateena site and will assume full responsibility for mining services delivery from March 4, 2021.

“OZ Minerals, Byrnecut and Downer will work together during the transition period to ensure continuity of operational performance and development, and employee support and opportunities, with the objective of providing roles for the majority of the incumbent underground workforce,” the company said. “This transition will include the transfer of equipment from Downer to Byrnecut.”

Byrnecut will now provide underground mining services to both the Carrapateena and Prominent Hill mines.

“Byrnecut is a proven top-tier underground mining contractor who has been providing underground mining services to Prominent Hill for the past 10 years, with their Prominent Hill contract having been renewed in 2020,” OZ Minerals said.

The scope of work comprises all underground mining activity for the duration of the contract including production and development mining and associated mining services; and bedding in steady-state operations at nameplate site capacity.

OZ Minerals on the road to electrifying Carrapateena mine

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

OZ Minerals’ electrification transformation at its Carrapateena copper-gold operation in South Australia has kicked into another gear with a Zero Automotive ZED70 battery-electric light vehicle arriving on site.

The company has made its electrification and sustainability aspirations clear to stakeholders, confirming it is working towards emitting zero Scope 1 emissions and striving to systemically reduce Scope 2 & 3 emissions across its value chain. It also wants to consume and produce in a way that generates zero net waste and creates value for its stakeholders.

In June, a prefeasibility study on an expansion of Carrapateena included a trial of electric light vehicles and establishment of a renewable energy hub.

The precursor to the ZED70 Ti electric light vehicle developed in partnership with Zero Automotive, the ZED70 (pictured) is based on a Toyota Landcruiser 79 Series and uses either NCM (Nickel Cobalt Manganese) or LTO (Lithium Titanate Oxide) battery chemistry.

The vehicle comes with continuous power of 75 kW and peak power of 134 kW, plus 358 Nm of continuous torque. Depending on the selected battery chemistry, the battery capacity comes in at 88 kWh (NCM) or 60 kWh (LTO).

The ZED70 Ti electric light vehicle to be delivered to Carrapateena following the trial of the ZED70 will use LTO chemistry and come equipped with a specially selected battery housing, control systems and charging capability to endure the “hyper saline underground environment” at Carrapateena.

“Working in partnership with Zero Automotive, we recently welcomed the first electric light vehicles onto site, and have the ZED70 Ti model in use underground,” Oliver Glockner, the OZ Minerals lead in developing the ZED70 Ti with Zero Automotive, said. “This is has been well received on site as a significant step in our electrification roadmap towards no diesel particulates underground and no scope 1 emissions on site.”

Dan Taylor, Business Development Manager at Zero Automotive, told IM that OZ Minerals has worked closely with the company in finalising the vehicle requirements and the change management process for implementing a battery-electric vehicle at the mine site.

“Some of the things I am talking about here include:

  • “Regular communications with their team on the progress with the project;
  • “Establishing charging points at the mine;
  • “Organising trial test drive bookings with those employees interested, and collecting performance data and feedback from them;
  • “Testing charging of the vehicle from one of their generators;
  • “Reviews by the emergency services and maintenance teams; and
  • “Planning the site acceptance testing when the OZ Minerals vehicle is delivered.”

Taylor said the LTO batteries the ZED70 Ti is fitted with can travel around 3 million km or endure 20,000 recharges before the battery re-charge ability reduces by 20%. This compares favourably with the 475,000 km, or 1,200 charges, it would take for the NCM battery’s re-charging ability to drop by the same amount.

At the same time as this, the LTO battery system will charge to a 95% charge in three hours on 415 V three-phase power, compared with four-and-a-half hours for the NCM equivalent.

“With DC-DC fast charging you will need 30 mins on the LTO (two hrs for NCM),” Taylor added.

Such benefits outweigh the lower energy density and upfront expense that come with using these LTO batteries, according to Taylor.

In October, OZ Minerals became the first miner in Australia to take delivery of a battery-powered Normet Charmec MC 605 VE SmartDrive (SD) at Carrapateena.

PYBAR takes the load off raisebore reamer removal underground

Automation, Base metals, Equipment maintenance, Mine shafts and equipment, Mining equipment, Mining industry recognition, Mining safety, Mining services, , , , , ,

PYBAR, an equipment manufacturer and the team at Carrapateena copper-gold mine in South Australia have developed a safe work methodology to remove large diameter raisebore reamers in an underground environment.

As the contractor says, the removal of raisebore reamers has traditionally been a hazardous, complex, costly and time-consuming process. Because of this, PYBAR saw a need to develop a safe work methodology to remove large diameter reamers in an underground environment.

Working with Carrapateena Mine and an equipment manufacturer, the SL100 Reamer Lifting Gantry system was developed.

The SL100 unit, based on the Enerpac SL100 lift and shift technology, is a track-mounted gantry system with hydraulic lifting units capable of lifting up to 80 t. The unit is operated remotely, removing employees from the shaft area during reamer lifts. When the reamer is lifted out of the shaft, the reamer is trammed away from the open shaft, which is then covered with a hole cover to create a safe working area.

PYBAR’s Raise Bore and Shaft Lining Manager, Phillip Viljoen, said: “PYBAR’s underground raisebore reamer removal system is a safety win for the raisebore industry, and we would be happy to share the methodology with anyone interested in a safer and more efficient way of removing large diameter reamers in an underground environment.”

The PYBAR underground reamer lifting gantry methodology has now been accepted as industry best practice, according to PYBAR, and sets the standard for removing large diameter reamers safely in an underground environment.