Tag Archives: South32

SRG Global banks four mining contracts as part of A$700m in wins

Equipment maintenance, Mining services, , , , , , , ,

SRG Global Ltd says it has been awarded multiple contracts with existing clients across Asia Pacific, four of which are related to mining.

The value of the new works secured is A$700 million ($457 million), which includes:

  • A five-year term contract for maintenance services associated with the continuous enhancement of Bauxite Residue Disposal Area embankments as well as other civil services with South32 at the Worsley Alumina bauxite and alumina refinery operations in the south-
    west region of Western Australia (WA). The contract will commence immediately;
  • A five-year term contract for asset integrity services with Glencore at its Murrin Murrin mining operations in the Goldfields region of WA. The contract has now commenced;
  • Mine site infrastructure contract for earthworks and civil construction at the Roy Hill mining operations with HanRoy in Western Australia. The contract commences in November 2024 and is expected to be completed mid-2025; and
  • Infrastructure contract for the construction of a tailings dam at the Pilgangoora mining operation with Pilbara Minerals in Western Australia. The contract commences in November 2024 and is expected to be completed mid-2025.

David Macgeorge, SRG Global Managing Director, commented: “We are pleased to continue to secure a diverse range of contract awards across Australia and New Zealand in a broad range of sectors with key repeat clients. These contract awards are a further demonstration of our transformation to a truly diversified infrastructure services company.”

EML369 Multi-Load

An evolution in ‘hands free’ exploration drilling

Automation, Mining equipment, Mining services, , , , , , , , , , , , , , ,

Evolution Drill Rigs out of Queensland, Australia, believes it has come up with a cost-effective and time saving solution to one of the most labour-intensive parts of the exploration drilling operation: handling drill rods.

Its Evolution EVO Multi-Load drill rod handling system is a true “hands free” diamond drill rod & casing handling and storage system, according to General Manager, John Slattery, explaining that it has been designed to work with most current exploration drill rigs, including the Evolution FH2000 & FH3000 and Sandvik DE840 & DE880 drills.

Evolution is not the first to come onto the market with a hands free rod handling system – readers may be thinking of Boart Longyear, Epiroc, Major Drilling, MEDATech Engineering’s Borterra division and others here – but Slattery is convinced the EVO Multi-Load system has the potential to make the biggest market impact.

“By choosing to design a system to work in conjunction with existing rig designs, the drilling contractors are able to utilise existing equipment with a few small changes,” he told IM. “Rather than invest in completely new drill rigs and handling systems, they can save significant capital outlay by investing in the EVO Multi-Load system.”

The other benefit of working with the existing rigs is the increased efficiency of rod tripping operations by using the existing rig main winch, he explained. “The ability to trip rods in 9-m lengths on deep holes during bit changes and ‘Navi-runs’ is a significant time saving method when compared to tripping rods in either 3-m or 6-m lengths as some other rod handling systems are limited to,” Slattery added.

The company already has one company speaking to these benefits too, with South32 recently running a 12-month trial of the EVO Multi-Load prototype at the Jessica and Cararra exploration projects in the Northern Territory of Australia. The company conducted this trial with its contract partner DDH1 Drilling, owned by Perenti, and said it was a “success” with plans to deploy the system on other South32 exploration projects in its 2025 financial year. South32 also provided funding to support Evolution’s prototype field trial and ensure the equipment was suited for ongoing use.

Slattery said the company’s ongoing testing of the prototype rig – in the workshop and the field – had led to an ongoing improvement plan ahead of commercialisation.

“Our engineering staff have worked closely with our customer DDH1 Drilling during the EVO Multi-Load development and our workshop team continued this during the testing phase and field trials,” he said. “We identified some areas for improvement during the workshop testing, which were incorporated into the rod loader prior to the field test: the sequencing of adding and removing rods from the loader has simplified the operation and helped with productivity.

“We have a few more updates in the pipeline to streamline the tripping process and increase overall productivity.”

This process has been aided by collaboration with DDH1 Drilling, according to Slattery, allowing the company to understand the contractor’s methods and requirements for handling rods during deep coring and directional drilling. “This allowed us to further develop our concept into a working prototype,” he said.

DDH1 Drilling’s experience with the use of several other types of drill rod handling system has allowed Evolution to benchmark operational cycle times against competitor products and confirm the productivity of the EVO Multi-Load system, he added.

Outside of the top head drive multi-purpose drills the Evolution system has already been designed to work on, there is the prospect of expanding this list further with a few small tweaks.

“In regions outside of our native Australia, such as Africa and South America, there is a large existing fleet of multi-purpose drills that could most likely use the system,” Slattery said.

This speaks to the faith Slattery has in the global potential of the system.

“We believe the majority of the drilling contractors and mining companies are interested in improving the operational safety around drilling projects in general, and drill rod handling is a big part of that,” he explained. “The EVO Multi-Load drill rod handling system has been designed around the needs of deeper core and directionally drilled holes, large volumes of drill rods, as well as the need to deal with different pipe and casing sizes. These more complex drilling programs are normally undertaken by the larger mining companies that have been calling for reduced human involvement in the drill rod handling process for some time.”

He concluded: “Our system has been designed to work with a range of rod and casing sizes and is flexible enough to be used on any brownfields exploration drilling program that involves the need to drill deep holes.”

Metso to deliver grinding plant equipment to South32’s Hermosa project

Base metals, Comminution of minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, , , , , , ,

Metso has been awarded orders for the delivery of grinding plant equipment for South32’s greenfield Hermosa project in the Patagonia Mountains in southern Arizona.

The order is booked in the Minerals segment’s 2024 June-quarter orders received, the OEM says.

Metso’s scope of delivery includes a Premier™ Primary Autogenous Grinding (AG) Mill and a Vertimill® VTM-4500 Secondary Grinding Mill with the potential to supply other comminution and beneficiation process equipment technologies.

Christoph Hoetzel, Senior Vice President, Grinding at Metso, said: “Metso’s broad grinding technology portfolio offers the best tool for the job. In this case, primary grinding utilising an AG Mill eliminates steel media usage and the Vertimill in secondary grinding and regrinding improves energy efficiency and reduces steel media consumption. This is a truly Planet Positive combination.”

Tim Robinson, Vice President, Minerals Sales in North and Central America (NCA) at Metso, said: “We are very pleased to be supporting South32 in their development focus to supply critical minerals like zinc and manganese in the USA. We are committed to supporting South32 in this endeavor with our Planet Positive offering and our large service group in Arizona.”

Earlier this year, South32’s Board of Directors gave final investment approval to develop the Taylor Deposit, part of the wider Hermosa project, as part of a $2.16 billion development involving a circa-4.3 Mt/y operation with average payable zinc-equivalent output of circa-253,000 t/y over a 28-year mine life.

BluVein, South32, Northern Star speakers to take to The Electric Mine 2024 stage

Automation, Environmental, Mining equipment, Mining events, Power supply for mines, Sustainable mining, , , , ,

BluVein, an innovator in dynamic charging solutions for the mining industry, has announced its participation at the upcoming The Electric Mine 2024 conference, in Perth, Western Australia.

The event, set to take place at Crown Perth, from May 21-23, will feature a key presentation from BluVein highlighting the potential and progress of its ground-breaking technology in underground mining electrification.

BluVein’s presentation, ‘Advanced dynamic charging − The missing jigsaw piece in underground mining electrification,’ will delve into the transformative potential of dynamic charging technology. This innovative approach to transferring power to battery-electric vehicles, regardless of its source, via a safe slotted rail and OEM-agnostic onboard power transfer aims to eliminate miner’s reliance on diesel underground, reduce operational costs, and significantly improve the sustainability and productivity of underground mining operations, BluVein says.

In a talk on May 23 at 3:05 pm, James Oliver, CEO of BluVein, Gavin Mann, Principal Mining Technology at South32, and David Trembath, Group Mining Engineer – Underground at Northern Star Resources Limited, will come together on stage.

Oliver is set to provide an overview of the strategic vision and technological advancements behind BluVein’s dynamic charging solutions for underground mines. Mann will discuss the practical applications and anticipated benefits of electrification and dynamic energy transfer in underground mining operations, focusing on capital costs and planning associated with implementing dynamic charging. Trembath, will share insights into diesel particulate exposure for workers underground and key factors safety regulators will likely consider when assessing technology such as dynamic charging and electrification in underground mining.

Key highlights of the presentation include:

  • BluVein’s development progress: An update on the development of BluVein’s technology, including real-world trials currently underway at the BluVein Proving Ground;
  • Economic and environmental benefits: Analysis of how BluVein’s dynamic charging systems can lead to cost savings, enhanced productivity and a reduced carbon footprint;
  • Innovative features: Exploration of the safety, flexibility and efficiency of BluVein’s OEM-agnostic technology, designed to integrate seamlessly with existing mining equipment and renewable energy sources; and
  • Future prospects: Insights into ongoing negotiations for TRL7 pilot studies in underground mines across Australia, aimed at advancing BluVein technology towards full-scale deployment.

For more information on the event, head to www.theelectricmine.com

Hermosa

South32 selects Nogales location for Hermosa ROC

Automation, IoT, Mineral project development, Mining software, Precious metals, , , , , , ,

South32’s Hermosa project has announced that it would construct its remote operations centre (ROC) in Nogales, Arizona, USA, with the facility set to be named Centro.

Hermosa is, South32 says, currently the only advanced mining project in the US capable of producing two federally designated critical minerals – zinc and manganese.

The ROC location decision follows two years of extensive analysis and careful consideration of Hermosa’s county-wide planning and employment goals to retain the economic benefits of the project in the Santa Cruz County area, it says.

As part of the location announcement, the Hermosa project is also debuting a new name for the ROC: Centro, a name chosen by the community in an online vote that took place earlier this year.

Hermosa Project President, Pat Risner, said: “Locating Centro in Nogales enables us to help transform the Santa Cruz County economy, by creating and training local residents without prior mining experience to fill high-skilled, good-paying jobs so the next generation has more opportunities right here at home.”

The selected location, just off Interstate 19 near the Mariposa Industrial Park, is approximately 70 miles (113 km) south of Tucson and approximately 28 miles to the Hermosa mine site. The building location will reduce commuter traffic to and from the mine site, as well as help build out local roads and infrastructure in the surrounding area, South32 explained.

Designed as a commercial building with an office-like setting, Centro will accommodate employees and the automation technology needed to remotely monitor and operate some of the underground and surface equipment located at the mine site. Centro will host around 200 full-time employees over several shifts in a 24-hour period.

Centro will be part of a 9 acre (3.6 ha) complex that will also include an employee parking lot, a park & ride service area to take employees and contractors to our other sites, and a garden. Construction will begin by the end of 2024.

In addition to Centro in Nogales, the Hermosa project is assessing the potential to site additional buildings, operational and/or job training infrastructure throughout Santa Cruz County.

As the first mining project added to the federal government’s FAST-41 permitting process, the Hermosa project aims to put southern Arizona in the driver’s seat of the clean energy race, supplying two critical minerals needed for the expansion of clean energy technologies and associated infrastructure.

Back in February, South32’s board gave final investment approval to develop the Taylor deposit, part of the Hermosa project, saying it would cost some $2.16 billion based on feasibility study results.

It is a project that is set to apply ‘next generation mine’ design principles using automation and technology to drive efficiencies and lower operational greenhouse gas emissions. This includes a plan to incorporate battery-electric LHDs, drilling and ancillary fleets. This strategy, included in the feasibility study, results in improved efficiency, reduced diesel consumption and greenhouse emissions compared with the prefeasibility study on the project.

DMC Mining to construct Clark exploration decline at South32 Hermosa

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

DMC Mining Services says it will construct the Clark exploration decline at the South32-owned Hermosa site in Arizona, USA, as part of a recent contract award.

In an announcement last month, South32 said the board had provided the final investment approval to develop the Taylor deposit, part of the wider Hermosa project, with funding of $2.16 billion. This followed the release of a feasibility study outlining a circa-4.3 Mt/y operation with average payable zinc-equivalent output of circa-253,000 t/y over a 28-year mine life.

Beyond Taylor, however, South32 has been working on its Clark development option, currently the only advanced project in the USA with a clear pathway to produce battery-grade manganese from locally sourced ore, according to the company.

In May 2023, South32 released the results of a selection phase pre-feasibility study (PFS-S) for the Clark deposit, which confirmed the potential for an underground mine integrated with Taylor, and a separate process plant, capable of supplying battery-grade manganese. Study work has progressed to a definition phase pre-feasibility study, with South32 confirming the commencement of construction of an exploration decline, due to be completed in late 2025, to enable access to ore for demonstration-scale production. This is where DMC Mining comes in.

In announcing this contract award, DMC Mining said: “Throughout the meticulous planning phase, South32 and DMC have been united by a shared vision and unwavering values, setting the stage for unparalleled success. Together, we’re not just setting the bar, we’re raising it, ready to redefine industry standards!

“This project not only underscores our commitment to delivering superior project solutions, but also signifies a significant stride in our dedication to serving our clients in the US market.”

South32 sells Illawarra Metallurgical Coal to entity owned by GEAR and M Resources

Coal technology, Mining mergers and acquisitions, Steel and iron ore, , , , , , ,

South32 has entered into a binding agreement to sell Illawarra Metallurgical Coal to an entity owned by Golden Energy and Resources Pte Ltd (GEAR) and M Resources Pty Ltd for upfront and deferred cash consideration of $1.3 billion plus contingent price-linked consideration of up to $350 million.

The sale is expected to complete in the first half of South32’s 2025 financial year, subject to the satisfaction of certain conditions.

“This transaction will realise significant value for our shareholders and is consistent with our strategy to reshape our portfolio toward commodities critical in the transition to a low-carbon future,” Graham Kerr, South32 Chief Executive Officer, said. “It will streamline our portfolio, strengthen our balance sheet and unlock capital to invest in our high-quality development projects in copper and zinc. The transaction will also simplify our business and reduce our capital intensity.”

Illawarra Metallurgical Coal produces high-quality metallurgical coal, a key ingredient in the in the production of steel, which will be required in the steelmaking process until low-carbon steel becomes economically viable on a commercial scale.

Illawarra Metallurgical Coal has underground mines at Appin and Dendrobium, which produce premium-quality, hard coking coal for steelmaking. In South32’s 2023 financial year, it produced almost 5.5 Mt of this product.

GEAR and M Resources are established participants in the Australian metallurgical coal industry, with a strong commitment to environmental and safety standards, who are well positioned to continue Illawarra Metallurgical Coal’s contribution to the local steel industry and the Illawarra and Macarthur regions, according to South32.

“Our focus remains the safe and reliable operation of Illawarra Metallurgical Coal,” Kerr said. “Over the coming months we will work with the buyer, our workforce, the local community, government, customers and suppliers to support a successful transition of ownership.”

DIG CT to bring MinEx CRC’s RoXplorer coiled tubing drilling tech to the market

Environmental, Mineral exploration, Mining equipment, Mining services, , , , , , , , , , , ,

MinEx CRC says has struck a commercialisation deal with DIG CT, a niche Australia-based drilling company set to bring MinEx CRC’s RoXplorer® coiled tubing (CT) drilling technology to market.

The CT drilling platform enables mineral exploration companies to significantly improve their environmental footprint and productivity by meeting the challenges of exploring in deep cover frontier provinces, barely touched in decades of previous exploration, according to MinEx CRC.

Developed in collaboration with industry partners Anglo American, BHP, Epiroc, LKAB Wassara, South32 and the Minerals Research Institute of Western Australia (MRIWA), the CT platform can drill through unconsolidated cover and hard-rock formations to depths of 500 m, delivering safety, efficiency, productivity and high-quality sampling with minimal infrastructure and streamlined operating processes.

“The key feature of RoXplorer CT drill rig is the patented mast design and over-the-hole positioning of the coil reel,” MinEx CRC CEO, Andrew Bailey, said.

“This enables increased coil life, seamless transition between CT and conventional top-drive drilling, rapid loading and unloading of tooling and drill string incorporated on the rig for ease of set up, pack down and transport.”

DIG CT Founder and Director, and Global Drilling Specialist, Craig Lavrick, said: “I’m proud to have been involved with the CT rig platform’s development since its inception, for over a decade. I consider coil tubing technology a ‘game changer’ and necessary next generation equipment to elevate exploration drilling to a safer, greener and more productive industry.”

Since August 2021, the CT platform has safely completed over 14,000 m of drilling in collaboration with Geological Survey of South Australia, Geological Survey of Western Australia, Geoscience Australia, Anglo American and EnviroCopper. Drilling trials demonstrate the system’s success and application to real-world, deep cover exploration scenarios while providing cost, productivity, safety and environmental benefits when compared with conventional drilling platforms.

The commercialisation deal between MinEx CRC and DIG CT will see the RoXplorer CT drilling platform offered as a drilling service for hire, with one initial drill rig in operation, with the intent to grow the fleet as mineral explorers recognise the value and utility of the novel CT technology, MinEx CRC says.

In February 2023 MinEx CRC announced a manufacturing deal with rig manufacturer, Schramm – now a subsidiary of the Epiroc group – who are ready to build the new fleet of CT drill rigs as demand increases, according to the organisation.

South32 signs off on ‘next generation’ Taylor mine development plan at Hermosa

Automation, Base metals, Environmental, Mineral project development, Mining equipment, Mining services, Power supply for mines, Sustainable mining, , , , ,

The feasibility study for the Taylor deposit, part of South32’s Hermosa project in Arizona, USA, has lived up to the mining company’s expectations, with final investment approval to develop this resource granted to the tune of $2.16 billion.

Hermosa was the first mining project added to the US Government’s FAST-41 process and is currently the only advanced project in the USA, which could supply two federally designated critical minerals, according to South32.

It is a project that is also set to apply ‘next generation mine’ design principles using automation and technology to drive efficiencies and lower operational greenhouse gas emissions. This includes a plan to incorporate battery-electric LHDs, drilling and ancillary fleets. This strategy, included in the feasibility study, results in improved efficiency, reduced diesel consumption and greenhouse emissions compared with the prefeasibility study on the project.

As well as this, the company plans to develop an integrated remote operations centre (iROC) in Santa Cruz County. The iROC will monitor and control mining, processing, maintenance and engineering to ensure the integration of activities and to optimise the entire value chain. Dry-stack tailings are also included in this development plan.

The feasibilty study highlighted a circa-4.3 Mt/y operation with average payable zinc-equivalent output of circa-253,000 t/y over a 28-year mine life. First production could occur in South32’s 2027 financial year.

The mine design for Taylor is a dual shaft underground mine, employing longhole open stoping with paste backfill. The mine development schedule has been aligned to a federal permitting process under FAST-41, which enables earlier access to multiple mining areas and an efficient ramp up to nameplate processing capacity of 4.3 Mt/y, it says. Shaft sinking is on-track to commence in the first quarter of South32’s 2025 financial year.

South32 Chief Executive Officer, Graham Kerr, said: “Final investment approval to develop Taylor is a major milestone aligned with our strategy to reshape our portfolio toward commodities that are critical for a low-carbon future.

“Taylor is expected to deliver attractive returns over multiple decades, with the feasibility study confirming the potential for a long-life, low-cost, low-carbon operation, with an initial operating life of circa-28 years, an average EBITDA margin of circa-50% and an internal rate of return of circa-12%.”

Kerr added: “As the first phase of a regional scale opportunity at Hermosa, Taylor’s infrastructure including dewatering, power, roads and site facilities, will unlock value for future growth options. These include Clark, our battery-grade manganese deposit, and potential discoveries in our highly prospective regional land package, which has already returned high-grade copper and zinc results from Peake and Flux.”

South32 eyes teleremote loading, dry stacking, ore sorting for Hermosa

Base metals, Environmental, Mineral processing, Mineral project development, Precious metals, Sustainable mining, , , , , , ,

South32’s Hermosa project in Arizona, USA, continues to make progress, and recently provided updates on the latest developments in construction, efforts to support local workforce development and benchmarking community health metrics to support future sustainability and safety initiatives.

The feasibility study and an independent peer review for Hermosa’s Taylor deposit is on track for completion by the end of the month, with a final investment decision in the March 2024 quarter.

In May, the Hermosa team began initial excavation for the main exploration shaft and the ventilation shaft to provide underground access to the zinc resource.

Pre-sink activities for both shafts remain on track, with 50 ft (15 m) excavated for the main exploration shaft and 115 ft excavated for a ventilation shaft. This construction will allow the creation of infrastructure needed for safe passage of people and vehicles underground, while total depth of the shafts will be approximately 2,900 ft (884 m).

Taylor will use tele-remote semi-autonomous mucking for production stopes, including for development prior to production mining, South32 says. This will enable operation from the remote operating centre and would ‘engineer out’ vehicle and pedestrian interactions in the production mining area.

The project is also looking to make use of other advanced mining methods such as dry stack tailings, advanced process control, and the use of ore sensing and ore sorting, the company added.

Hermosa Vice President Project Delivery, Andy Thompson, said: “This advanced, underground mining method enables reduced surface impact and the amount of tailings resulting in a more sustainable mine.”

The South32 Hermosa Workforce Development Taskforce has been formed to identify the skills needed and local facilities available to help train, develop and expand the region’s workforce. The taskforce enables the Hermosa team to work with local education experts to develop a clear pathway for training local residents to fill skilled jobs at Hermosa, South32 says.

Skylie Estep, Human Resources Director North America, said “The first step in helping transform the local economy is partnering with community members whose expertise and understanding of our region’s educational needs can help create opportunities, so that the next generation can stay in Santa Cruz County.”

South32 says the Hermosa team has engaged Ramboll, a global consulting firm, to guide a baseline community health assessment and outreach to local public health institutions.

“Protecting the health of our workforce and the local community is our priority, and partnering with third-party public health organisations to regularly monitor and report findings ensures transparency and accountability on this critical metric,” the company said.

A baseline assessment will help Hermosa team to understand what levels of manganese and other minerals already exist in the community and environment, it said. By conducting this assessment before operations begin, the company says it can make sure health and safety controls are in place, better understand any changes over time, and ensure controls remain effective throughout the life of the project.