Tag Archives: Tom McCulley

Sakatti-FutureSmart Mining

Anglo American highlights next FutureSmart Mining advances at Woodsmith, Sakatti

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Anglo American has provided its latest sustainability performance update, highlighting a number of technological advancements the company is looking to take at its in-development Woodsmith polyhalite mine in the UK and its exploration asset, Sakatti, in Finland.

Anglo American says it has an integrated approach to sustainability in project development, helping secure its ability to deliver responsible long-term growth in future-enabling metals and minerals.

The company is moving towards its goal of carbon neutral operations by 2040, evolving its pathways as it progresses, learns and as technologies develop.

At the end of 2022, its Scope 1 and 2 emissions were 21% below the peak levels of 2019 – a significant reduction that, Anglo American says, reflects its transition to 100% renewable electricity supply across its South America operations, with Australia to follow in 2025.

In southern Africa, it is working in partnership with EDF Renewables to build a 3-5 GW renewable energy ecosystem of wind and solar generation capacity, designed to tackle its largest remaining source of Scope 2 emissions and support energy reliability and grid resilience while catalysing broad socio-economic opportunities.

While Scope 3 emissions reduction is largely dependent on the decarbonisation of Anglo American’s value chains and the steel industry, in particular, it is progressing towards its ambition to halve these emissions by 2040.

Tom McCulley, CEO of Anglo American’s Crop Nutrients business, provided several references to Quellaveco, Anglo American’s most technologically-advanced mine that uses automation, a remote operations centre and high levels of digitalisation, when looking at its FutureSmart Mining™ plans at Woodsmith, a 5 Mt/y operation that could ramp up to 13 Mt/y.

McCulley, who also led development of Quellaveco, said Woodsmith will be developed as a benchmark for sustainable mining. This includes plans for the mine to be a low carbon, low water and low waste operation, with no tailings generation and with a minimum impact design.

“We hope this can show a way of how mining can be done in the future,” McCulley said of this approach at Woodsmith.

When it comes to Sakatti, Alison Atkinson, Projects & Development Director, said the development could end up being “our next greenfield project”.

The project is a rich multi-metal deposit with not only copper, nickel and cobalt resources, but also platinum, palladium, gold and silver.

“High concentrations of metal combined with consistency of the mineralisation between the boreholes make Sakatti a unique deposit,” Anglo American says of the project. Its resources are estimated to be sufficient for mining operations to last more than 20 years.

Atkinson said Sakatti is being designed as the next generation of FutureSmart Mining, building on what it has learned from Quellaveco and Woodsmith, particularly when it comes to ensuring there is minimal surface footprint and “using technology and innovations to deliver even better sustainability outcomes”.

She added: “Sakatti is set to be a remotely operated, low carbon-underground mine with an electric mining fleet using technology and mining methods that will create zero waste and enable high degrees of water recycling, contributing to a sustainable supply of critical minerals.”

The company also sees the potential to use sorting technologies for coarse particle rejection and material recovery opportunities.

Woodsmith-MTS-Anglo

Anglo American lays out 5 Mt/y Woodsmith polyhalite plan ahead of full design review

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This week, Anglo American hosted an investor and analyst day at its in-development Woodsmith project, in the UK, with several key technology takeaways cropping up from an in-depth presentation from Tom McCulley, CEO, Crop Nutrients.

In reviewing progress and the past, McCulley stated that Anglo has decided to start Woodsmith as a 5 Mt/y operation, with a staged ramp-up planned to the 13 Mt/y rate. The plan to sink 1,600 m production and service shafts, establish a mechanised mine, construct the 37-km-long underground tunnel and build a materials handling facility with priority access export facilities remain part of this. The potential to phase ventilation & production level development within the underground mine, potential to phase conveyor upgrades in the underground tunnel and the potential to carry out a phased expansion as required for the export facilities are all options for the 13 Mt/y blueprint.

This change has required some of the scope to go back to study phase – hence the reason why Anglo has been mooting detailed design reviews and non-critical path studies – looking at how to optimise investment and modularise the construction to get maximum value from each phase, McCulley said.

“I feel far more comfortable today about how we are setting up the project for the long-term success but managing in a capital efficient way,” McCulley said during his presentation.

Some of the elements keen observers have been watching at Woodsmith are related to mechanised underground development – both vertical (via shaft sinking) and horizontally (via tunnel boring machines (TBMs) for the 37-km-long tunnel).

TBM-led tunnel transformation

In terms of the latter, Anglo American is soon expecting to set a World Record for the longest TBM tunnel developed by a single TBM. This is currently set at 25.8 km, with the Woodsmith team having already reached the 25-km (25.3 km) mark.

“Beyond this we will pass our next intermediate shaft at Ladycross, where we will take a 3-4 month maintenance pause as we set up the TBM for the final push to 37 km, and we expect to reach the Woodsmith mine in late 2026,” McCulley said.

The machine used at Woodsmith is a Herrenknecht hard-rock TBM that, McCulley says, works similarly to the Shaft Boring Roadheaders (SBRs) being used for shaft sinking (more on that soon) in that it cuts the soils, without blasting, and the material is transported through the machine and out of the tunnel via a conveyor that is part of the TBM.

“In addition to excavating the material, the TBM also simultaneously lines the tunnel via pre-cast concrete segments (six segments make up a ring around the circumference of the tunnel); these concrete segments are fabricated at the Teesside port by a project dedicated facility,” McCulley said.

He said in every measure the tunnelling on the project to date has been an amazing success, aided by a solid team performance. This team is made up of contractors from Strabag, Herrenknecht and Anglo’s in-house personnel.

Progress has been aided by consistent ground conditions across the tunnel within what is called Mudstone strata, McCulley said.

“These conditions are very predictable and cutting is easy for the machine which minimises the bearing wear, which is a key risk area for the TBM,” he said. “This consistent strata has allowed us to switch our strategy from three TBMs to one TBM for the entire 37 km, which means we will not only pass the World Record, but we will also smash it when we reach Woodsmith in late 2026. This reduction in TBMs had a knock-on impact of saving significant capital over what was originally planned.”

Anglo is consistently seeing average rates increase to over 20 m/d and trending closer to 25 m/d, which compares favourably with about 16-17 m/d in late 2021.

Tom McCulley-Anglo American
Tom McCulley, CEO, Crop Nutrients

SBRs on the up

Mine development via TBMs is relatively proven when compared with the use of Herrenknecht SBRs for shaft sinking in mining, with Woodsmith representing only the third deployment of the technology in mining following Jansen (BHP) and Nezhinsky (Slavkaliy).

Anglo has two SBRs on site at Woodsmith, sinking the production and service shafts at the project. Redpath, which carried out the shaft sinking work at Nezhinsky, is steering developments at these two shafts, in addition to the material transport system shaft. Only the much deeper production and service shafts are being sunk via mechanised means with the SBRs.

Overseeing this and all developments at the operation is Worley as an engineering, procurement and construction management contractor.

Sinking of the service shaft began in September-October 2022, followed some six months later with activities at the production shaft. McCulley said these two were now around 550-m deep and 340-m deep, respectively.

“We typically see more daily meters from the production shaft due to the service shaft lessons being applied to the production shaft, so I’m excited as I think we may have a race to polyhalite!” he said. “We are very pleased with the progress made on both shafts since Redpath started sinking in 2022.”

On the advantages associated with using SBRs, McCulley said: “Some of the primary benefits of these machines is they are inherently safer than traditional sinking. They also eliminate the need for explosives, which is a huge benefit to us with the community as we don’t encounter noise complaints experienced in other mines. I expect these machines to be the future of shaft sinking. They are just safer, quicker and more predictable.”

The SBR is generally working in autonomous mode for most of the time following a program with pre-set parameters for cutting, according to McCulley, who said the company is expecting an average rate of 1 m/d in each shaft over the full 1,600-m length of the shafts.

“This 1 m/d includes all routine maintenance and what we call non-routine work, like installing water cubbies for pumping water out of the shafts, probe drilling, tubbing and grouting,” he said.

“Ultimately, this is the right machine for the job at Woodsmith and the cutting rates we achieve are 1.5-2 times what we would do with traditional methods.”

Looking at current sinking progress and plans to hit the orebody in 2027 in the service shaft (with the production shaft being six months behind that), McCulley pointed out a 250-m section of sinking in Sherwood Sandstone, which the company expects to reach next year.

“This 250 m of strata will see our rates reduced from our 1 m/d to something between 0.5 m and 0.75 m a day, and this will impact us for most of next year and early 2025,” McCulley said. “Once through that strata, we do not expect any further issues with the ground conditions significantly impacting production.”

The Sherwood Sandstone is characterised as a strata of highly competent rock, about 120 Mpa, according to McCulley, which is at the top end of the SBR rock hardness capacity given by Herrenknecht.

In addition to the hardness, this strata has the potential for some water fissures (ie cracks in the rock with high pressure water), according to McCulley.

“The good news for us is we hit a 2.5-m layer of this material a few weeks ago and we learned from this that we need to make some adjustments to our cutter heads and cutting picks, and now we are far more prepared than we would have been otherwise,” he said. “We are also prepared with alternative plans, including potential use of lasers, plasma blasting and/or microwaves if needed, but we expect our updated cutter head and next generation picks, developed by Element 6 of De Beers, will cut through the rock at the rates I previously mentioned. In addition, to the hard rock, this strata has a risk of high-water flows in small sections of the strata so we will need to seal the shaft via grout from the shaft. This means as we come across water, we will inject chemical grout into the fractures to block water bearing cavities and control water inflow.”

Adding to McCulley’s confidence is the fact that the nearby Boulby mine encountered the same strata some time ago, which that team progressed through via the same exact grouting technique Woodsmith is planning today.

In terms of priorities for 2023, McCulley said the team expected the service shaft to be between 650-700 m at the end of the year, versus the current circa-550 metres today, whereas the production shaft could reach 450 m by this point.

“Both shafts, if they hit the numbers noted will exceed our planned targets for the year,” he said.

“The MTS shaft and Ladycross shafts are both sunk, and we are working to fit them out during the remainder of the year. In the tunnel we have driven 4.3 km this year, we are at 25.3 km and we expect to reach 27 km, which is our stretch target for the year.”

For 2024, while Anglo continues to work through the studies, it doesn’t see any changes to its plans right now and still expects to be around the $1 billon capex number for the next few years.

McCulley added: “Our vision at Woodsmith with regards to technology is to ultimately develop a peopleless underground mine, where operations and maintenance are all controlled from the surface. This is a journey, but many technologies are already out there, we just need to put the system in place and the wherewithal to help the vendors take the next step. This will not happen from the start, but with our vision and with the team we have in place, I have no doubt that in the future this vision will become a reality.”

When at full production, Woodsmith will be a FutureSmart Mine with all the modern technologies, according to McCulley, with these characteristics ensuring the company has a low cost, high volume mine for many years to come. Continuous miners are expected to be used in a room & pillar mining application, combined with mine cars, shuttle cars or conveyors.

“On top of the mining/processing technology, I see some interesting parallels with the farming industry. They are rapidly adopting technologies, and we are very well placed to support this transition in areas like sensing, scanning, AI, etc. I think with our Anglo American Woodsmith project experience in technology we are uniquely positioned to help support this transition in farming and this is something that will have added value to our product for years to come.”

Anglo American produces first copper concentrate from Quellaveco

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

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

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

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

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

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

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

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

Anglo American kicks off commissioning at Quellaveco copper project

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Anglo American has unloaded the first ore to the primary crusher at the Quellaveco copper project in Peru, marking a crucial milestone in commissioning tests prior to the start of operations.

Autonomous truck No. 19 – a Caterpillar 794 AC whose hopper sports the colours of diversity – was chosen to unload the ore at the $5.5 billion operation.

The ore entered Line 1 of the primary crusher where it was reduced to a size of 6.5 in (165.1 mm). Subsequently, it was taken from the mine area through a system of conveyor belts that extend more than 6 km to the coarse ore stockpile in the Papujune concentrator plant. Here, some 30,000 t of crushed ore was deposited. From there, it moved to the grinding area, where commissioning tests for the Line 1 SAG and ball mill began.

Tom McCulley, former CEO of Anglo American in Peru, was present at this important milestone for the upcoming start of operations. “Today, Quellaveco reached its most significant milestone with the shipment of the first ore to the processing plant. I want to thank all the 30,000 Peruvians who were with us during the construction stage.”

The commissioning tests are designed to ensure the optimal operation of the equipment and to verify the proper transfer of the ore from the time it is extracted in the pit to the processing plant, where the copper concentrate will soon be produced.

Quellaveco is in the Moquegua region and, at full capacity, will process 127,500 t/d of material. It will, Anglo American says, be the first 100% digital mine in the country, introducing new technology and processes to the national mining industry, such as autonomous mine haulage, that will improve performance in safety, production and sustainability.

Anglo American signals design changes at Woodsmith polyhalite project

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Anglo American has outlined plans to change elements of the design at its Woodsmith polyhalite project in the UK, which will have a bearing on both the sinking of the two main shafts and development of the underground mining area at the project.

The company has been running a detailed technical review on Woodsmith since mid-2020 to ensure the technical and commercial integrity of the full scope of its design. This followed the acquisition of the asset as part of a takeover of Sirius Minerals earlier that year.

“Now largely complete, the review has confirmed the findings of Anglo American’s due diligence that a number of elements of the project’s design would benefit from modification to bring it up to Anglo American’s safety and operating integrity standards and to optimise the value of the asset for the long term,” the company said.

Anglo is also making a change to the leadership at Woodsmith following its integration into Anglo American and ahead of the full project execution phase. Tom McCulley, who has led the development of the Quellaveco copper project in Peru, will take over from Chris Fraser as CEO of Crop Nutrients. This will see Fraser step aside and take on a strategic projects role for Anglo.

“The Woodsmith team is further developing the engineering to optimise the configuration of the project, recognising the multi-decade life of the mine,” Anglo said.

Particular attention is on the aspects identified at the outset of Anglo American’s ownership – namely, the sinking of the two main shafts, the development of the underground mining area, and the changes required to accommodate both increased production capacity and the more efficient and scalable mining method of using only continuous miners, it said.

The sinking of the two main shafts is due to be carried out using Herrenknecht’s Shaft Boring Roadheader (SBR) technology. DMC Mining, a company familiar with the technology thanks to its work sinking shafts at Jansen in Saskatchewan, Canada, was previously tasked with sinking the production and service shaft, each around 1,500 m deep, and two smaller shafts associated with the materials transport system, each approximately 350 m deep. Its contract was ended in 2020.

These improvements will, the company said, require the installation of additional ventilation earlier in the development of the underground mining area.

“Anglo American expects that these changes to the design of the mine infrastructure – which will result in a different, enhanced configuration and therefore a different construction and production ramp-up schedule – will ensure that its exacting standards are met and the full commercial value of the asset is realised,” the company said.

Mark Cutifani, Chief Executive of Anglo American, said: “We are very happy with the high quality and exciting potential of Woodsmith, with the scale and quality of the polyhalite orebody pointing to a quartile one operating cost position and strong margins. This is a very long-life asset and we are going to take the necessary time to get every aspect of the design right to match our long-term vision and value aspirations.

“We have said from the outset that we expect to make improvements and that we will execute certain elements of the construction differently and with a more conservative schedule. We expect to have completed our design engineering, capital budget and schedule at the end of 2022, with a fully optimised value case that recognises the upside potential we see in Woodsmith, and we will then submit the full project to the board.”

In the meantime, construction of the major critical path elements of the project, principally the two main shafts and the mineral transport tunnel, is progressing, with approximately $700 million of capital expected to be invested in 2022, Anglo said.

The plan at Woodsmith under previous owners Sirius was to extract polyhalite via two mine shafts and transport this outside of the National Park to Teesside on a conveyer belt system in an underground tunnel. It would then be granulated at a materials handling facility, with the majority being exported to overseas markets. The company was previously aiming to achieve first product from the mine by the end of 2021, ramping up to an initial production capacity of 10 Mt/y and then full production of 20 Mt/y.

The changes to McCulley’s and Fraser’s roles are effective January 1, 2022. Anglo American has appointed Adolfo Heeren as CEO of Anglo American in Peru, effective from the same date. Heeren will work together with McCulley during the first half of 2022 to ensure a smooth transition from the construction and commissioning phase of Quellaveco into operations, expecting first copper production in mid-2022.

Anglo American and ENGIE agree on ‘green’ electricity supply for Quellaveco

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Anglo American and ENGIE’s Peru-based subsidiary have signed an agreement to convert the current contracted energy supply for the Quellaveco copper project to 100% renewable sources, in addition to agreeing on another eight years of energy supply for the mine, starting in 2029, from “green energy” inputs.

The agreement will see Quellaveco, a copper project being developed by Anglo and Mitsubishi Corp, become the first mining operation to promote the construction of a non-conventional renewable energy plant, according to ENGIE.

As part of the pact, ENGIE Energía Perú has agreed to convert the total electricity supply for Quellaveco (187 MW) to 100% green energy, with 150 MW of supply over eight years from 2029 also coming from green energy sources.

ENGIE Energía Perú will source the renewable energy from its Punta Lomitas wind power plant, an in-development wind farm with a joint nominal capacity of 260 MW located in Ocucaje-Ica and a 60 km transmission line connecting the plant with the National Interconnected Electric System. The project has been granted a generation and transmission concession by the Ministry of Energy and Mines, and construction is expected to start in the second half of 2021, the company says.

Tom McCulley, CEO of Anglo American in Peru, said: “We are working from different areas to contribute to a healthy environment. Our goal is to transform the very nature of the industry to ensure a safer, cleaner and more sustainable future.

“By resorting to the use of higher precision technologies, such as those that Quellaveco will have, as well as by focusing on consuming less energy and less water, we will reduce our environmental footprint for every kilogram of copper that we produce, starting in 2022.”

Rik De Buyserie, CEO of ENGIE Energía Peru, added: “Thanks to the renewable energy certificates delivered by the Punta Lomitas Power Plant to supply the demand for the Quellaveco project, we are proud and committed to accompany our client Anglo American and mining in Peru, on their path to carbon neutrality.”

Quellaveco, owned 60% by Anglo and 40% by Mitsubishi Corp, comes with a production blueprint of 300,000 t/y of copper over the first 10 years of the mine, with first production expected in 2022.