Tag Archives: Western Australia

Draslovka’s glycine leaching tech to be tested on gold, nickel tailings at Windarra

Draslovka a.s. subsidiary Encore Minerals, a company established with the specific aim of progressing waste to value opportunities, has entered into an agreement with Poseidon Nickel to retreat and monetise gold and nickel tailings in Western Australia.

Draslovka’s proprietary Glycine Leaching Technology (GLT), comprising the GlyCat™ process for precious metals and GlyLeach™ process for base metals, will be an enabler for the extraction of
realisable value from Poseidon’s gold and nickel tailings at its Windarra property and potentially from a third-party tailings resource at nearby Lancefield (the Windarra Tailings project), Draslovka says.

Previous metallurgical test work for the Windarra Tailings project had shown potential improvement in recoveries and costs for the site’s gold resources. The test work also established the potential for a technical, economically viable and low-intensity process for recovery of nickel from nickel tailings. A previous feasibility study for the gold resource using conventional cyanidation showed net operating cash flow of A$30.6 million ($19.9 million), a net present value (8% discount) of A$21.7 million and an internal rate of return of 50.6%, assuming a gold price of A$2,500/oz.

The next step is to undertake a technical program to optimise the project with both the gold and nickel resources, which will lead to an updated feasibility study and a final investment decision. If
successful, the project will lead to the construction of the first GLT processing plant for tailings.

Ivor Bryan, Chief Technology Officer of Draslovka Mining Process Solutions, said: “We are excited to play an integral role in enabling the retreatment of the gold and nickel tailings at the Windarra Tailings project by supplying GLT, which has been developed to extract precious and base metals.

“GLT is revolutionary for the mining industry. It has the potential to save mining companies billions of dollars by significantly reducing processing costs, enhancing a mine’s sustainability profile, extending mine life by lowering the cut-off grade and unlocking value hidden in a mine’s tailings. I believe the results at Windarra will be a powerful example of how GLT is a simple yet very effective means to retreat and monetise tailings.”

Barminco to drive underground exploration plan at Spartan’s Dalgaranga gold project

Perenti Limited says its Barminco business has been awarded a new development contract with Spartan Resources Ltd and extensions to four existing projects.

The scope of the Spartan Resources contract includes the construction of an underground exploration drill drive at the Dalgaranga gold project in the Murchison region of Western Australia. The drive has been designed to run in parallel and adjacent to the mineralised gold zones of Never Never, Pepper, Four Pillars and West Winds, to facilitate underground exploration and subsequently support future production plans.

Construction of the drive is due to start in the current quarter and is expected to take 10 months to complete. It will use a combination of existing capital equipment and an additional A$5 million ($3.3 million) of new growth capital.

The Dalgaranga project includes a fully-developed gold mining operation (currently on care and maintenance) and an extensive exploration landholding with outstanding opportunities for new discoveries, Spartan says. The open-pit mine was initially commissioned in 2018 and comprises a fully established gold mine, circa-2.5 Mt/y carbon-in-leach processing facility, modern camp accommodation and air strip. Dalgaranga produced 71,153 oz of gold for the 2022 financial year before being placed on care and maintenance in November 2022 to facilitate the implementation of a new strategic operating plan and a financial restructure. It was previously mined by NRW Holdings under an arrangement with mine owner Gascoyne Resources.

In February 2022, Spartan announced the details of a new 18-month exploration and strategic plan, underpinned by the Never Never gold deposit, targeting:

  • A -plus-300,000 oz reserve at a grade exceeding 4 g/t at Never Never;
  • A plus-600,000 oz resource at a grade exceeding 5 g/t at Never Never; and
  • The development of a five-year mine plan aimed at delivering 130-150,000 oz/y.

In addition to the Dalgaranga project, Perenti says extensions to contracts have also been signed for the following project:

  •  Siou and Wona underground at the Mana gold mine for Endeavour Mining plc in Burkina Faso;
  • An existing copper and gold underground mining project in Canada;
  • Spotted Quoll nickel mine for IGO Ltd in Australia;
  • Mt Colin copper mine for Aeris Resources Ltd in Australia.

In combination, these projects are expected to contribute approximately A$160 million of revenue to FY25. The project extensions do not require new growth capital, Perenti says.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said “The greenfield underground at Dalgaranga project is an exciting opportunity. The resource has the potential to grow into a high-grade gold mine
and we look forward to supporting Spartan Resources to achieve their targets during the months ahead.

“In addition, the four contract extensions are another example of the 90%+-plus success rate the Contract Mining division has in extending and renewing contracts. Maintaining client relationships is critical to our long-term success, so we always strive to find ways to deliver value to our clients when possible.”

Gabrielle Iwanow, President of Contract Mining at Perenti, said: “We are pleased to be working with Spartan Resources on the new underground Dalgaranga gold project in Western Australia. Barminco has a long history of working with Western Australian gold producers and we look forward to building an excellent relationship with their team as they advance towards production.

IGO and Perenti herald ‘drop-in’ battery-electric, autonomous drilling solution at Nova

The confluence of automation and electrification in underground mining was spoken of many times at The Electric Mine 2024 event, in Perth, Western Australia, last month, with a whole themed session dedicated to it.

One of the best examples of the two trends converging was observed in a talk titled, ‘Electrification and Automation at IGO’s Nova Mine: Implementation of the Sandvik DL422iE Production Drill.’

In this joint presentation, Brandon Cooper, Senior Mining Engineer of Projects at IGO Limited, and Paul Linabury, Manager of Electrification at Perenti Contract Mining, outlined how this new electric and automated longhole drill could provide the entry point underground miners require to understand the practicalities associated with incorporating such new technology.

“This isn’t the heavy hitter for greenhouse gas or DPM (diesel particulate matter), but what it does is allow us to operate a battery underground and get familiar with it,” Cooper said of the Australia-first DL422iE deployment at Nova.

The Sandvik DL422iE is a fully-automated, battery-powered top hammer longhole drill designed for underground mass mining in 4 x 4 m or larger production drifts, Sandvik says. It can drill vertical and inclined fans and single or parallel Ø89-127 mm longholes up to 54 m in depth using ST58 and ST68 tube rods.

The drill’s electric driveline includes a battery package and electric motor to allow for zero emissions while tramming and also reduced thermal load. The DL422iE also features Sandvik’s patented Charging While Drilling technology; an innovation for reduced battery charging time without the need for additional infrastructure.

Barminco, part of Perenti, purchased the Sandvik DL422iE, which was commissioned and put to work at Nova in July 2023 as part of Barminco’s existing services contract, with the surface drilling remote capacities operationalised in February of this year.

Nova, itself, is a remote operation in the Fraser Range of Western Australia that has traditionally relied on large diesel generators for power. The company has progressively transitioned to renewable generation, which has been reinforced by a 10 MWh lithium-ion battery. These two, alongside the site’s synchronous condensers, allow Nova to produce enough renewable energy to power the production plant and underground mine when the sun is shining, according to Cooper.

This is important for the context of introducing an electric drill to the fleet that is powered off a 75 kWh sodium nickel chloride battery when tramming and the mine grid – via cable – when drilling.

While the electric drill introduction represented an Australia first, Nova has been trialling and deploying battery-electric equipment for several years. It has three Zed 70 Ti light utility vehicles (battery-electric conversions of Toyota Landcruisers) in its fleet from Zero Automotive, has trialled the Bortana EV – another electric light vehicle – has one BME ITC L120H battery-electric integrated tool carrier to its name and is expecting to add another machine to its fleet by the end of the year – a Normet Charmec MC 605 V(E) SD battery-electric emulsion charge rig.

This breadth and depth of experience allowed Cooper to look across the industry’s underground mine electrification equipment offering and draw some parallels at the event.

“Introducing a battery-electric drill has, at this stage, a lot more chance of being seamless and successful with far less operational changes needed to be made compared with a truck or a loader,” he said.

The proof of this statement was in the presentation, and some of the specific operational highlights he and Linabury outlined.

From initial deployment in July 2023 to the middle of May 2024, IGO had drilled 50,750 m with this rig, with Cooper saying the site typically drills longholes to 45 m lengths. When compared with the diesel-powered DL421 rig the operation was previously using, the DL422iE was 20% more productive than the DL421 rig’s 12-month average drilling rate of 5,000 m/mth.

Looking at the automated elements on board the Sandvik rig – the first battery-electric vehicle equipped with Sandvik AutoMine® for surface remote drilling and automation – Cooper highlighted higher metres drilled, reduced hole setup times and increased flexibility.

He provided some colour here: “Auto fan drilling enables the drill and blast engineer to put a drill design on a USB stick and give it to the operator, where the operator plugs it into the rig’s USB port to view a digital map of what they’re drilling. The rig itself will automatically test each planned collar location and alert the operator if a hole needs to move; allowing them to shift the collar and leave the toe in place, or shift and drill a parallel hole.” These amendments to the original plan are recorded, with the engineer able to analyse the information on the updated file later.

Following this process, the rig can be setup to drill an entire fan without any operator input.

The second automation advance Cooper highlighted was the ability to carry out drilling from the surface in a cab. The company has been using this facility to drill during shift change or during re-entry. “That feature is netting us 770 m on top of what we have been getting every month,” Cooper said. “And I don’t think we are taking full advantage of it just yet; I think there are more gains to be had.”

While the machine is meant for battery-electric tramming, Cooper said there had been glimpses of the rig’s ability to also drill off battery, relaying one occasion where an electrician was able to repair a “jumbo box” at the same time as the operator carried out a 25 m long hole using battery power.

The battery-electric rig has also required some changes to the way operators work, with Cooper noting that the 75 kWh sodium nickel chloride battery did not provide enough power for the machine to tram 3.3 km (on a 1:7 incline) from the bottom of the ramp to the top. Nova operators had got around this issue by carrying out an opportunity charge 850 m from surface by the rod-storage cuddy, allowing the operator to offload drill rods at the same time.

“These BEVs require changes to the way we work,” he said. “If we can integrate those changes into our existing work practices to minimise the changes to the operators, we will get a better result.”

Linabury, meanwhile, highlighted how the services provider was identifying the new risks and opportunities that were emerging from battery electrification during deployments such as this.

Examples included recognising the increased number of electrical isolation points on a battery-electric drill and creating a live line indicator to identify when current is running through these, charging the battery to below full capacity to make the most of downhill regeneration and more closely interrogating classifications given by systems such as the battery management interface.

In the Q&A session at the end of the presentation, Cooper summed up the IGO rationale for bringing this new battery-electric and automation-enabled machine into the Nova fleet: “As we have shown with the DL422iE, you can essentially drop this in and change very little about the way you operate normally, but at the same time you get a chance to play around with: ‘What does my emergency response look like for this new drill? How do my supply chains have to change for parts? How do my skillsets need to change for people? What do the operators need to be made aware of?’

“You can solve all of those problems, and a lot of those learnings are then directly transferable for when you start tackling the bigger problems of heavy machines.”

Such learnings would allow the company to have a much clearer picture of what it would take to fully electrify an underground mine in the future, he concluded.

ABB on the final piece of the electrification puzzle

Every train, industrial, or transportation vehicle needs a unique traction powertrain for operation, with ABB, through its Traction division, holding a complete and flexible product portfolio that, it says, allows it to build the perfect electrification solution for operators to transition businesses to more sustainable and lower cost operations.

Each of these solutions can be tailored to customer requirements and the operating conditions of each vehicle that it powers, enabling maximum energy efficiency, zero carbon emissions and high reliability.

The company is able to leverage high-tech e-mobility and rail system traction converters, energy storage systems and electric vehicle charging solutions as part of its offering, complementing this with enhanced expertise to help accelerate the transition to all-electric operations.

One project where its impact has been felt is at Nuh Cement in Turkey where ABB is working jointly with the company to convert 10 mainly Euclid/Hitachi dump trucks with an average 160 ton capacity, which have completed their 30-year service life, from diesel engine power to electric.

This is one of the first mining truck battery conversion projects of its kind in the world and will be discussed in more detail during a presentation at The Electric Mine 2024.

Ahead of the event, taking place at the Crown Perth Complex, on May 21-23, we spoke with Fabiana Cavalcante, Head of Mobile e-Power at ABB, to find out more about the offering.

IM: ABB’s Traction division is working within a very competitive landscape when it comes to e-mobility in mining. What would you say are your unique selling points to the industry?

FC: We bring over 130 years of experience in mining electrification, combined with extensive expertise in electrification and charging infrastructure for cars, buses and trucks. This allows us to extend our capabilities to the final piece of the puzzle: electrifying mobile equipment.

Fabiana Cavalcante, Head of Mobile e-Power at ABB

Our journey began by utilising our unique knowledge in rail propulsion systems and adapting it to the harsh environment of mining. Our roots in electrifying the Swiss railway network over a century ago have established us as leaders in sustainable transportation solutions. We have translated this experience to increase energy efficiency, reliability and reduce emissions across rail networks, electric buses and other heavy vehicles. The building blocks of the technology are similar, making for a smooth transition.

Besides this, what truly sets us apart is our capacity to execute customised customer projects. Battery-electric propulsion requires more personalisation compared to diesel, and our history as an independent supplier has equipped us with the skills, mindset and a perfect portfolio of proven base components to adapt quickly and in larger quantities than any other company.

IM: You work with multiple OEMs and solution providers across the globe looking to electrify their operations. Are most of these companies looking to electrify their offerings during a similar timeframe?

FC: Many mining operators have ambitious sustainability targets, aiming to reduce their Scope 1 and 2 emissions by at least 30% by 2030. By 2050, many operators aim to achieve net-zero emissions, and the only path to that is by electrifying their mining vehicle fleets. If every truck in every mine were electrified, we could remove 198,000 tons of CO2 from the atmosphere each day. Mining operators and OEMs recognise the potential to minimise their carbon footprint, and while this transition won’t happen overnight, we’re excited to partner with them and guide them on their electric journey.

IM: How often are you interacting directly with the operators during these types of projects? At this stage, is it often a collaboration between ABB, the OEM and the client?

FC: The level of interaction varies from project to project. In some cases, we have limited direct engagement with the mine operator, while in others, we are heavily involved. A recent example is our collaboration with Boliden and Epiroc, where we worked together to create the first battery-electric trolley truck system for underground mining. This close partnership was crucial to bringing this innovative project to life.

IM: In this regard, how does your work with Nuh Cement on converting its diesel powered fleet to electric power stand out from the work you normally carry out? Why is Nuh Cement able to collaborate directly with ABB on such a project?

FC: Nuh Cement approached us with the goal of converting their existing mining fleet of Euclid/Hitachi dump trucks to electric power and we officially began the project in 2022. We have vast experience in retrofitting vehicles for the rail business and we followed the same approach and procedures for the haul trucks.

The steep ramps with up to 20% gradient required us to pay close attention to ensure that the electric trucks could meet the expected performance and efficiency levels. This involved intense collaboration between both parties to translate simulations into practical, real-world solutions. Working closely with Nuh Cement, we tailored our solutions to fit their specific operational requirements and made sure our technologies aligned with their vision for a sustainable future. We hope many more mine operators will soon start to electrify their fleet and we’re excited to closely partner with them throughout their journey.

IM: Are you able to provide a sneak preview of what you will present at The Electric Mine 2024 in Perth about the Nuh Cement project? How has this project advanced since it was announced back in 2022?

FC: I’m excited to share the results of our groundbreaking collaboration with Nuh Cement at the event. Our partnership led to the successful electrification of a haul truck, demonstrating ABB’s ability to retrofit diesel-powered vehicles into fully electric ones – a milestone with significant implications for the mining industry. This transformation of a 30-year-old vehicle into a net-zero haul truck sets a new standard for sustainable mining practices worldwide.

Additionally, attendees will hear from Nuh Cement’s CEO, Kamil Gökhan Bozkurt, who will provide insights into this key project.

IM: In addition to what you have already discussed above, what can attendees of The Electric Mine 2024 look forward to hearing about next month?

FC: I encourage everyone to visit our team at booth 58 during the conference. Attendees will have the chance to explore our latest technology and innovations, including a preview of our new energy storage system, which offers exceptional lifespan, power and safety. We look forward to seeing you all there!

ABB is a Gold Sponsor of The Electric Mine 2024, with the company having a major indoor display in the exhibition hall. Fabiana Cavalcante will be on stage at the event presenting, ‘Powering progress: ABB and Nuh Cement’s zero emission dump truck’ during Day 1 of the event. Find out more about The Electric Mine 2024 by going to www.theelectricmine.com

Rio Tinto to partner with Founders Factory on commercialising breakthrough mining tech

Rio Tinto is teaming up with a leading global venture studio and start-up investor to back the development and commercialisation of breakthrough technologies in the mining industry, supporting the company’s efforts to find better ways to provide the materials the world needs.

The company will partner with Founders Factory and invest A$14.4 million ($9.5 million) in global pre-seed and seed stage start-ups over the next three years. The focus will be on technologies in the fields of safe mine operations, decarbonisation, exploration processing and automation.

Each start-up will receive a cash investment and participate in a four-month accelerator program run by Founders Factory to support product development and commercialisation.

The Western Australian Government has also partnered with Founders Factory to invest in nature-tech start-ups that preserve and restore nature and biodiversity.

The partnerships with Rio Tinto and the Western Australian Government will support the first Australian hub of Founders Factory in Perth, Western Australia, boosting the state’s innovation credentials. Founders Factory successfully operates in London, Johannesburg, Milan, Berlin, Bratislava, New York and Singapore.

Rio Tinto Iron Ore Chief Executive, Simon Trott, said, “Technology has always been at the forefront of our industry and Western Australia can be the Silicon Valley of the global mining industry.

“Our iron ore operations in the Pilbara are among the most technologically advanced in the world. This exciting new partnership gives us the opportunity to build on our innovative legacy to unlock new technologies and help our business find better ways to provide the materials the world needs.

“With the backing of industry and the State Government, local and international start-ups will receive investment opportunities and access to real-world testing and scaling support, helping Western Australia’s innovation economy to grow.”

Western Australian Premier, Roger Cook, said, “Securing the internationally renowned Founders Factory for Perth is a major coup for our state.

“This is the first time the tech accelerator has operated in Australia, providing a springboard for innovative local businesses to reach an international audience and maximise their chances of success.

“My government is committed to decarbonising our economy by 2050 and it’s vital that we support local startups developing the technology to reach this goal.

“This three-year partnership will further cement WA’s position as a global leader in research and the development, helping to diversify the economy and create the jobs of the future.”

Founders Factory CEO, Henry Lane, said: “We are excited to be partnering with Rio Tinto and launching operations in Western Australia. Startups can drive further productivity, safety and automation in the mining sector, whilst accelerating the industry’s transition to net zero.

“This program can help international and local founders test their technologies with the global leader in the sector and find pathways to commercial scale and impact.”

MMS to carry out load and haul services at Silverlake Mount Monger

In what it says is a significant win, MMS has secured a A$200 million ($130 million) load and haul contract with gold producer Silver Lake Resources, in Western Australia.

The contract marks a significant milestone for both parties, signalling the next stage of expansion in the Silverlake Mount Monger operation, southeast of Kalgoorlie-Boulder, MMS says.

The 49-month contract is scheduled to commence on April 1, 2024, with MMS operating alongside Silver Lake Resources and Dynamic Drill and Blast in the Santa open pit and Flora Dora deposit.

MMS has already commenced mobilising its fleet onto the site, with early works and site establishment in progress, it says. The fleet consists of new and low-hour heavy machinery, including 120-200-t excavators and 100-t dump trucks. As the operation progresses, it will peak at a workforce of 106 employees and 48 heavy machines operating on site.

Lynas Rare Earths to switch to continuous mining mode at Mt Weld with help of Carey Group

Lynas Rare Earths Ltd has awarded Western Australia-based company Carey Group Holdings a five-year contract for mining services at Lynas’ Mt Weld rare earths mine near Laverton.

The contract will draw on Carey’s nearly 30 years of experience as an open-pit mining contractor and leading 100% First Nations-owned business, including as a service provider to neighbouring mines near Laverton.

Carey will commence on site at the high-grade Mt Weld mine in April 2024. On commencement of the contract, Lynas will transition from campaign mining to continuous mining over the five-year period to supply ores to the expanded Mt Weld process plant.

Under the contract, Carey will mobilise a mining fleet comprising production drilling, excavation, hauling and auxiliary equipment. Carey will provide new haul trucks as part of the contract, with a focus on technologies designed to improve efficiency, productivity and precision for extracting ores, Lynas says.

A signing ceremony for the contract with Carey was held in Perth today and Amanda Lacaze, CEO & Managing Director, Lynas Rare Earths (pictured on the left), said: “Lynas is delighted to award the Mt Weld mining contract to Carey. Carey has almost 30 years of experience working with open-pit mine environments and is a leading contractor in its field. Significantly for Lynas, Carey’s founder and Managing Director, Daniel Tucker AM, grew up in the Laverton area. Daniel and his team have a strong connection to country and this is evident in their approach to sustainability and to providing opportunities for First Nations people to build and develop skills and expertise.

“We share Carey’s values and commitment to providing career opportunities and skills development for First Nations people. We look forward to working with Carey as we continue to enhance our operations, safety and sustainability through this contract.”

Tucker (pictured on the right) said: “We are immensely pleased for the opportunity to work with a global leader such as Lynas, and grateful to receive this contract award which continues to build on our history of the delivery of contract mining services in the Goldfields.

“As a leader of First Nations business in Australia, this long-term contract will allow us to deliver value for Lynas, Carey, other First Nations businesses and local supply chain partners. I look forward to a successful
partnership with Lynas.”

Gold Fields to up the renewable ante at St Ives with A$296 million investment

The Board of Gold Fields Limited has approved the go-ahead for a A$296 million ($195 million) renewables project at the St Ives mine, in Western Australia, in a move that could boost the operation’s renewable input to over 70%.

The project will comprise:

  • 42 MW of wind power delivered via seven wind turbines;
  • 35 MW of solar power delivered via 60,000 solar panels;
  • A 33 kV renewable energy hub substation; and
  • A 132 kV transmission line.

The project, the largest in the Gold Fields portfolio to date, will provide 73% of the mines electricity requirements and is planned to commence construction in May 2024 and will be operational by the end of 2025.

While previous renewables projects of this nature were built and managed by independent power producers, the St Ives project will be built by Gold Fields, the company stated.

Six out of Gold Fields’ 10 mines and projects are already powered partially by renewable electricity, and, in addition to the St Ives project, the company is studying additional renewable energy projects to meet the company’s decarbonisation commitments.

In 2023, renewable electricity accounted for 17% of electricity consumption across the Gold Fields business, compared with 13% a year earlier, leading to a 5% decline in carbon emissions during the year, the company said. Renewables provided 50% of electricity consumed at the Agnew mine in Australia and 15% of South Deep’s electricity consumption. The Cerro Corona mine in Peru is fully supplied by hydroelectricity, which is classified as 100% renewable. The Windfall project in Canada (which is a 50:50 joint venture between Gold Fields and Osisko Mining) is also supplied by hydroelectricity.

Once operational, the St Ives project will boost renewable energy in Gold Fields’ electricity mix further to approximately 24% and will contribute markedly to achieving the group’s 2030 target of reducing Scope 1 and 2 emissions by a net 30% against its 2016 baseline. St Ives itself will reduce its Scope 1 and 2 emissions by approximately 50% by 2030. Gold Fields has also committed to Net Zero by 2050.

“The St Ives renewables project is a clear and tangible signal to our stakeholders of our decarbonisation commitments,” Gold Fields CEO, Mike Fraser, said. “Investing in renewables has obvious environmental benefits, but it also provides the business with cheaper electricity and offers an enhanced level of energy supply security.”

The St Ives renewables project will reduce electricity costs to a third of the previously projected costs by 2025.

The project has received the required approvals from Traditional Owners of the land, the Environmental Protection Agency and the Western Australian Department of Energy, Mines, Industry Regulation and Safety.

Gold Fields has also advanced plans on other key renewables projects in its portfolio, which include:

  • A 11 MW expansion to the current 8 MW solar plant at its Granny Smith mine in Australia;
  • A 7.7 MW photovoltaic solar plant at the Salares Norte mine in Chile to be added to the current diesel generator sets about a year after first gold production. The project has already received the required environmental approvals; and
  • Adding up to six wind turbines to provide approximately 40 MW of power to the South Deep mine in South Africa. This project is currently in feasibility phase and awaiting final environmental approval.

Fraser added: “All our operations continue to investigate the possibility of adding further renewable electricity sources where it makes technical and economic sense to do so. We are also exploring the most capital efficient ways to fund these projects as part of our disciplined capital allocation. Gold Fields is committed to playing its part in mitigating the impact climate change is having on the world.”

Red Hawk Mining plots Blacksmith iron ore project haulage path with MGM Bulk

Red Hawk Mining says it has entered into a strategic partnership with MGM Bulk Pty Ltd (MGM Bulk) for the haulage of iron ore from the company’s 100%-owned Blacksmith iron ore project, in Western Australia, to the Utah Point bulk handling facility in Port Hedland.

The haulage agreement enables Red Hawk and MGM Bulk to work collaboratively through the prefeasibility study (PFS) and definitive feasibility study (DFS) phases to develop and optimise the transport and logistics strategy, focusing on maximising productivity and reducing unit operating costs, the company says.

Following completion of the studies, MGM Bulk has the exclusive right to enter into a haulage services agreement on terms equivalent to those contained in the DFS. MGM Bulk will be responsible for providing a fleet of 150 t ultra-quad trucks and drivers plus associated loading and other equipment and infrastructure.

In a February presentation deck, Red Hawk Mining claimed over 200,000 m of drilling has defined the largest direct shipping ore (DSO) resource of any ASX-listed junior iron ore company (excluding magnetite) at Blacksmith with 174 Mt at 60% Fe. It said there was potential for thee project to be a long-term supplier of at least 3 Mt/y of 60.5% Fe DSO for over 20 years.

Red Hawk’s Managing Director, Steven Michael, said: “We are excited to work with the team at MGM Bulk to establish a haulage strategy optimised for the Blacksmith project. MGM Bulk’s operations in the Pilbara, centred around delivering iron ore into the Utah Point, are second to none. Their fleet size, quality, operational performance and safety record are critical factors in ensuring the success of the Blacksmith project.

“Our PFS team is working closely with MGM Bulk’s commercial and operations team to deliver operating and capital cost estimates with a high degree of certainty, which can easily be translated into an operational haulage contract.”

MGM Bulk’s CEO, Michael Giacci, added: “We are immensely proud to be forging a long-term partnership with Red Hawk Mining on the mine-to-port haulage solutions for their Blacksmith iron ore project.”

BME to become ‘first local manufacturer’ of electronic detonators in Western Australia

Having actively built its foundation in the Australian mining market over the past decade, global blasting and explosives specialist BME says it is ramping up its footprint and capability with facilities in the west of the country.

These expansions represent a key aspect of the company’s strategic direction, according to BME Managing Director, Ralf Hennecke. Australia is among the high-potential markets in which BME is further expanding its existing operations, he said, leveraging the country’s status as the fourth largest mining country globally after China, the US and Russia. Australia also boasts high mineral exploration rates, which bode well for the industry’s future.

“Our first decade in Australia has been focused on importing and marketing our premium AXXIS™ electronic initiation system,” he explained. “The next exciting steps, however, go well beyond that into local manufacturing of detonators and other products and equipment in our own certified, state-of-the-art automated facilities. We also have our mobile manufacturing units (MMUs) in the country to fully integrate with our other products.”

The licensing processes have been completed for a site that BME Australia has secured in the Kalgoorlie area of Western Australia, a region strategically positioned to best supply the miners of iron ore, gold, nickel, lithium and other strategic mineral resources. This will allow the company to become the first local manufacturer of electronic detonators in the state, providing significant supply chain security and logistical benefits to mining customers, it says. The plan is to begin production by May 2024.

“Manufacturing in-country removes considerable supply chain risk for the industry, which the COVID-19 pandemic highlighted for every sector,” Hennecke said.

A similar facility has already been established in Canada as part of BME’s globalisation drive. The Western Australia plant will be able to draw on equipment that has been tried and tested in the company’s South African operations, include a semi-automated line from BME’s Losberg plant.

BME has built on its strong relationships with global blue chip mining companies in the planning of its new plant, and has reported a high degree of interest from the sector’s leading players. The AXXIS detonator has been well accepted through its multiple upgrades – and has been successfully deployed across eastern Australia for over a decade. With BME’s expansion into Western Australia, trials have been conducted with AXXIS electronic detonators at various mines in the state, and the results were extremely positive.

Emphasising the market demand, Hennecke noted that there has been a significant shift away from shock tubes and towards electronic detonators in Australia’s mining sector – as mines look to safer, automated solutions to reduce the number of ‘boots on the bench’.

“This aligns importantly with the very strict safety policies and regulations that the country has in place,” he explained. “The technology contributes to industry’s risk mitigation efforts, but also holds performance benefits in terms of facilitating large, accurate and reliable blasts which support mines’ sustainability and productivity.”

He said that BME’s progress in Australia was an expression of the company’s global ambitions, which are now turning from plans to action in the country through its commitment of capital investments and infrastructure.