TABLE OF CONTENTS
ABB Remote Monitoring System Pinpoints Mine Hoist Performance Issues
BHP Commits $2.6 Billion to Canada Potash Project
FL Smidth Awarded 5 Year Maintenance Contract for Caserones Copper/Moly Mine
Peru to Welcome US$15bn in Copper Mining Projects From 2013-2015
Niger Plans Bid For Semafo's Stake in Samira Hill Mine
Anglogold Awards MWS Uranium Plant Resurrection to MDM
South Africa's Sibanye Acquires Gold One Assets
Dupont Safety JV in African Mining Industry
South Africa's Sibanye Acquires Gold One Assets
New Mines, Africa Help Boost Glencore's Copper Output
Barminco Picks Up Big Mt. Lyell Mining Contract
Desalination Contract Awarded by Australia’s Xstrata Coal
Iron Ore Junior Gets Project Approval in Pilbara
Anglogold to Begin Tropicana Production in Q3
Metso Completes Acquisition of Chinese Foundry Business
Southgobi Granted Pre-Mining Agreements in Mongolia
Global power and automation technology group, ABB, has launched a new service product for hoist systems: Hoist Performance Monitoring Service. With this state-of-the-art solution ABB experts can monitor and analyze the hoist system remotely. Furthermore, regular monitoring ensures that possible failures are detected before causing severe problems. This new product delivers a service that is said to be unique in the underground mining market.
A mine hoist system is an extensive investment and an important component in the underground mining process. To get the most out of this investment, hoist systems must operate at the highest level of reliability and safety, as any potential failure can lead to catastrophic results.
ABB’s Hoist Performance Monitoring Service connects customers’ hoist system to experienced ABB experts to monitor and analyze the hoist’s condition and performance. The new service links hardware monitoring with secure remote access options and expert software. It contains two solutions to maintain the hoist performance:
- Hoist service experts provide a scheduled quarterly analysis of collected data against established key performance indicators (KPIs). By utilizing remote sessions with ABB engineers corrective actions can be implemented. After every analysis the customer gets an associated report.
- ABB offers continuous asset monitoring over extended periods of time: If the monitored hoist system shows abnormal conditions, pre-established triggers alert the customer immediately. ABB proactively investigates the source of the alarm and provides recommendations to restore process performance.
Powered by ServicePort™, ABB’s state-of-the-art service delivery platform, Hoist Performance Monitoring Service uses non-stop data collection and analysis to transform raw data into actionable information, quickly pinpointing issues so that the hoist operator can ensure optimal performance of equipment and systems. ServicePort™ enables the retrieval of information from numerous operational points, including the hoist’s motor, hydraulics and brakes and helps to diagnose and identify root cause problems.
BHP Billiton (Melbourne) says it is going ahead with a $2.6-billion investment to finish the excavation and lining of production and service shafts at the company’s previously announced Jansen potash project, in Canada, and to continue installing essential surface infrastructure and utilities. The approval raises the company’s total commitment to the Jansen project to approximately $3.8 billion. The investment will be spread over a number of years, with the completion of both shafts expected during 2016 and the associated works program extending into 2017, BHP says. The Jansen project is 100% owned by BHP and located 140 kilometers from Saskatoon, SK.
BHP’s investment announcement comes despite an expected decline in international potash prices following the recent breakup of the Belarusian Potash Co. (Minsk) potash export cartel. The anticipated fall in prices has led analysts to question the economics of greenfield potash projects, such as BHP’s Jansen investment.
BHP has not announced an estimated start-up date for the Jansen potash mine, however. The mine had originally been scheduled to start operating in 2015, but BHP delayed this plan last year. The excavation and lining of both shafts will substantially reduce development risk and allow BHP to time first production to meet growth in market demand, the company says. Press reports in Australia say that the Jansen mine will start producing in 2020 at the earliest. Reports also say that BHP is seeking a minority investor in the Jansen project and has held initial talks with potential partners.
“Annual investment at Jansen of approximately $800 million will form an important part of the group’s capital and exploration budget, which will decline to approximately $16 billion this year,” says Andrew Mackenzie, CEO of BHP. “Continued development of the shafts reflects our confidence in the quality of our 5.3-billion m.t. measured resource and the compelling long-term fundamentals of the potash industry.”
BHP says that Jansen’s potash resources can support a mine with an annual capacity of 10 million m.t. for more than 50 years. The project will benefit from economies of scale and modern mining techniques.
The long-term outlook for potash is strong, BHP adds. As the world’s population grows and incomes in emerging economies improve, agricultural demand is expected to rise. BHP’s projections assume that the potash price will ultimately reflect the cost of adding new supply, the company adds.
Mineral processing specialists FL Smidth has been awarded its second major maintenance contract for a Chilean mine.
FLSmidth has won a 5-year contract from SCM Minera Lumina Copper for supply of maintenance services to its Caserones copper and molybdenum plant located in the Andes Mountains, approximately 865 km north east of the capital of Santiago, Chile.
The contract includes a mechanical maintenance organisation of some 110 persons which will provide the customer with a reduction in their overall maintenance costs and at the same time increase the production through higher reliability of the equipment while keeping a strong focus on health and safety.
"FLSmidth has many actives in Chile and we experience that our customers in the country generally have a positive and optimistic outlook for the future. With this new maintenance contract FLSmidth is undertaking two large maintenance contracts in Chile, and in combination, these contracts give us a strong foothold in the Chilean mining industry, while also opening up for other opportunities both in Chile and the region in general," Group Executive Vice President Bjarne Moltke Hansen comments.
Peru’s Ministry of Energy and Mines aims to slash the timetable for new exploration permits to less than 200 days, the fastest exploration permitting schedule in Latin America.
Peru’s Minister of Energy and Mines Jorge Merino Tafur said $15 billion in mining project programs are now underway that will raise Peru’s copper production by 1.3 million to 2.8 million tonnes by 2016.
These projects are scheduled to commence operations between 2014 and the first half of 2015, he noted.
Among these projects are Chinalco’s $4.8 billion Toromocho Copper Project in Peru’s Junin region with production scheduled to begin in December; Glencore/Xstrata’s $5.2 billion Las Bambas copper project in the Cusco Region, scheduled to commence production in May or June of 2015; and the $5 billion expansion of Freeport-McMoRan’s Cerro Verde copper mining joint venture, which is slated to start production by 2015.
Merino noted that the country has other great projects like Southern Copper’s Tia Maria, the long-delayed Tambogrande gold project, Anglo American’s Quellaveco and Michiquillay copper projects, Rio Tinto’s La Granja Copper Project and other polymetallic deposits, which he suggested should be exploited to bring more development around the country.
The minister observed that Peru is a very competitive mining country, not only because of its mineral deposits, but because “our energy is four time cheaper than Chile.”
He observed that mining generates about 30% of Peru’s national budget and that nearly 10 million Peruvians are linked directly or indirectly to mining. Merino revealed that Peruvian mining is anticipated to generate another one million jobs over the next three years in the country.
Peru’s Ministry of Energy and Mines is leading an effort to speed up the timetable for issuing new mining exploration permits. “The permits took between 300 and 500 days, but with the rule that were are issuing this period is down to less than 200 days,” said the minister, adding Peru will become the leader among Latin American nations in faster delivering of mining exploration permits.
The state plans to bid for Semafo's 80% stake in the Samira Hill mine and to try to take full control of the project.
Niger plans to bid for gold miner Semafo's 80 percent stake in the Samira Hill mine and to try to take full control of the project, the West African nation's mining assets management company Sopamin said recently after Semafo suspended operations at the mine.
The Canadian miner announced earlier that it had advised authorities in Niger, which owns the remaining 20 percent of the venture, on the suspension. It has also initiated procedures with employees and labour unions regarding termination.
The firm said in July it had entered negotiations with Australia's Middle Island Resources for the sale of its 80 percent interest for a purchase price that includes a cash payment of $1.25 million and a fixed net smelter return royalty of 1.2 percent on gold sold from the mine.
The deal was expected to be concluded by September 30.
Niger's Sopamin said in a statement on the Sahel nation's state radio that it was also interested in buying Semafo's 80-percent stake.
"Following the approval of the government, Sopamin has initiated the process of acquisition of the 80 percent shares held by Semafo so that Niger would have 100 percent control of the company," the statement said.
Sopamin said it was aware it would be competing with Middle Island Resources, adding that it would make final decision on the acquisition by September 10.
MDM Engineering has been awarded the completion and commissioning contract for AngloGold Ashanti's MWS (Mine Waste Solutions) uranium tailings retreatment project at Stilfontein in South Africa. AngloGold finalised the acquisition of MWS from the ailing First Uranium in July last year for a purchase price of US$335 million.
MWS is a gold and uranium tailings recovery operation located approximately 160 km west of Johannesburg centred around the old Stilfontein gold mine. The operation processes multiple tailings dumps in the area through three production modules, the most recent of which was commissioned in 2011. It also includes a modern tailings storage facility approximately 15 km from the gold plant modules where residues from the treatment plants are deposited. The separate uranium recovery facility was stopped and mothballed by First Uranium due to its financial woes at the time. MDM was then the contractor on this project and all work for the current award will be carried out in accordance with the original standards and specifications used by MDM during the original implementation of the uranium plant
MDM has a long history with the MWS project having commenced work on Phase 1B in January 2008, which saw a doubling of the throughput of the project from 650,000 tonnes per month to 1.283 million tonnes per month, treating the reclaimed tailings for the recovery of both gold and uranium. The Phase 2 module was then completed in 2011 and the plant treated an additional 650,000 tonnes per month of gold reclaimed tailings. Phase 2 also included a reclamation station pumping the material 12 km to a carbon in leach and elution plant, as well as all adjoining infrastructure. In total, MDM laid 72 km of pipeline for Phase 1B and Phase 2.
Martin Smith, MDM Chief Executive Officer commented "MDM are pleased to have secured work with another major blue chip mining company. We look forward to building a strong relationship with AngloGold Ashanti in the completion and commissioning of the MWS uranium plant."
When AngloGold purchased MWS from First Uranium, AngloGold’s then CEO, Mark Cutifani, was looking to integrate MWS into its existing Klerksdorp-Stilfontein-Orkney operations and tailings recovery options and thereby increase the company’s uranium production profile, as well as adding some useful additional gold output. At the time Cutifani reckoned on AngloGold producing perhaps 3 million lbs of uranium within two to three years, with the possibility of increasing this to 5 million lbs at a later date. The resurrection of the MWS uranium plant build represents a major step in this direction.
South Africa's Sibanye Gold said recently it had agreed to acquire the West Rand operations of junior miner Gold One International for 150 million new shares.
Sibanye was created earlier this year when Gold Fields spun off the bulk of its South African assets and it had signaled it was looking to expand in South Africa, where the bullion industry has been in decline.
The addition of the underground and surface operations west of Johannesburg will add about 260,000 ounces of gold a year to Sibanye's production over the next five years, it said.
The company has previously targeted production of about 1.3 million ounces a year.
Sibanye did not give a price for the deal, but said the new shares would represent 17 percent of its issued share capital.
The proposed transaction is subject to certain conditions, including approval from shareholders and South Africa's mines ministry, Sibanye said.
Neal Froneman, Sibanye's chief executive, formerly ran Gold One where he oversaw its acquisition by a Chinese consortium that included Baiyin Non-Ferrous Group, a subsidiary of the CITIC Group, China's biggest state-owned investment company, and the China-Africa Development Fund.
DuPont is joining forces with a leader in the phosphate industry to help companies in Africa improve their safety, operations and environmental performance.
The new company will combine DuPont Sustainable Solutions and OCP Group into a joint venture called DuPont OCP Operations Consulting. Each company will own half of the venture.
OCP mines for phosphate in Morocco and is an important player in the international market for products derived from phosphate, like fertilizer. It employs about 23,000 people.
DuPont Sustainable Solutions helps improve workplace safety and operations in industrial settings worldwide, including petroleum refining and mining. DuPont Sustainable Solutions has a presence in Africa now, but the joint venture will expand its reach.
Together, they will offer consulting and training for companies throughout Morocco and other parts of Africa in areas of employee and contractor safety and training, process safety management, energy efficiency and environmental management.
South Africa's Sibanye Gold said on Wednesday it had agreed to acquire the West Rand operations of junior miner Gold One International for 150 million new shares.
Sibanye was created earlier this year when Gold Fields spun off the bulk of its South African assets and it had signaled it was looking to expand in South Africa, where the bullion industry has been in decline.
The addition of the underground and surface operations west of Johannesburg will add about 260,000 ounces of gold a year to Sibanye's production over the next five years, it said.
The company has previously targeted production of about 1.3 million ounces a year.
Sibanye did not give a price for the deal, but said the new shares would represent 17 percent of its issued share capital.
The proposed transaction is subject to certain conditions, including approval from shareholders and South Africa's mines ministry, Sibanye said.
Miner and trader Glencore Xstrata reported copper production increased by a fifth in the first six months of 2013, driven by the ramp-up of mines replacing depleted operations and a stronger performance in Congo.
Glencore, which is due to report full half-year earnings next week, gave no update on its closely-watched trading division, but met market expectations with higher volumes in not only copper, but also coal and agricultural products.
Among the diversified miners, Glencore Xstrata has the biggest exposure to copper.
It produced 673,400 tonnes of the red metal in the first half, broadly in line with forecasts, thanks to an increase in Latin American operations including newly commissioned Antapaccay in Peru, and operational improvements at Collahuasi in Chile, in which it owns a stake.
In the second quarter, group copper production totalled 351,600 tonnes, up just over 22 percent.
African copper production alone, including Zambia as well as the Democratic Republic of Congo, came to 171,500 tonnes in the first six months - up more than 40 percent. Glencore expects Katanga and Mutanda in Congo to hit annualised production capacity of up to 270,00 tonnes and 200,000 tonnes respectively.
"Strong growth in African copper should increase market confidence in Glencore's ability to develop and operate assets," analysts at Liberum, which has a "buy" rating on Glencore.
Zinc output, another key source of revenue for the combined group, dipped 3 percent to 729,500 tonnes, hit by the impact of declines at operations reaching the end of their mine lives.
Total coal production rose 4 percent, as Australian operations and Prodeco in Colombia offset the impact of a strike at Cerrejon, also in Colombia, a venture co-owned with Anglo American and BHP Billiton.
The group will update the market on progress in the integration of miner Xstrata on Sept. 10.
Australian mining contractor, Barminco, has been awarded a 3-year development and production mining contract for copper/gold/silver at the Mt Lyell mine in Tasmania
Underground hard rock mining contractor Barminco has been awarded a three year development and production mining contract at the Mount Lyell copper, gold and silver mine in Tasmania, owned by Copper Mines of Tasmania (CMT). The contract is Barminco’s second largest to date after Sunrise Dam, which was awarded in May 2011. Barminco will commence works on September 1, advancing decline development 3,600 m/y and producing 2.47 Mt/y of ore. The project will have a workforce of 200 personnel.
Barminco CEO, Peter Stokes, said: “We are delighted to be working on this project with CMT. During a time of market volatility where efficiencies are paramount, the award of this contract demonstrates our ability to value-add as a contractor and our capacity to deliver on our growth strategy.”
The Mount Lyell copper mine, located in Queenstown, Tasmania, is the oldest, continually operating mining field in Australia with more than 100 years of operation. CMT is a part of the Vedanta group of companies.
Desalination company Osmoflo has secured an AUS$12 million contract to boost water conditioning and desalination capacity at Xstrata Coal’s Ulan mine in NSW. Adelaidenow reported that the contract will involved the design, manufacture and commissioning of the treatment facility.
Owned by Japan’s Marubeni Corporation, Osmoflo – who has previously supplied technology to the coal company - will install a pre-treatment system that is expected to use an oxidation process.
Managing director Marc Fabig said: “The reputation of Osmoflo as Adelaide's water treatment and desalination specialist supplier to the resources industry is further enhanced through the award of this major contract."
Despite the substantial contract, Xstrata Coal announced in March that it would be consolidating its coal operations in Australia.
Iron Ore Holdings has been given the go-ahead by the WA Department of Mines and Petroleum for its Iron Valley Project mining proposal.
Pilbara iron ore junior Iron Ore Holdings has been given the go-ahead for its Iron Valley Project mining proposal.
The WA Department of Mines and Petroleum approved the proposal on Wednesday for above water table mining in the central Pilbara area, along with the water licence needed for long-term operations at Iron Valley.
The approvals make up IOH’s responsibilities as stipulated in an agreement with Minerals Resources (MIN) in February this year.
IOH announced an upgraded resource of 160 million tonnes at its Valley Project in 2009. This was 80 per cent over the company’s earlier announcement of 88 million tonnes.
IOH managing director Alwyn Vorster said the two approvals are an important step towards the company generating revenue through the mine gate payment structure.
“The Iron Valley approval is the second approval for mining operations, which IOH secured in a relatively short period, with the Phil’s Creek development currently under way by MIN.
“It is further evidence of IOH successfully executing its find, de-risk and monetise strategy at relatively low risk to its shareholders,” Vorster said in a statement.
“With the Iron Valley Project now advancing towards development, the next key focus for IOH will be securing Buckland Project funding solutions with a selected project partner and finalising the Cape Preston East port lease agreements with the Dampier Port Authority.”
IOH signed an agreement with Fortescue Metals Group early last year which allowed Fortescue to expand its Nyidinghu project into IOH tenements.
IOH said the memorandum between the two companies gave Fortescue the choice until March this year to acquire a licence to mine the Iron Valley.
The company also signed a native title deal with the Yaburara Mardudhunera peoples last year to guarantee the future expansion of its projects.
The company said the deal encompassed payments before and after mining and shipping began.
AngloGold Ashanti, South Africa's largest gold producer, said recently its Tropicana project in Australia has been commissioned ahead of schedule and will begin producing gold in the third quarter.
The project, originally forecast to begin production in the fourth quarter, will cost up to A$845 million ($758.35 million) and average annual production in the first three years is expected to be between 470,000 and 490,000 ounces.
Metso’s acquisition of a Chinese steel foundry improves its capabilities for supplying wear parts to its mining and construction industry customers in China and other markets in Asia-Pacific
Finnish headquartered multinational, Metso, has completed the acquisition of a steel foundry in Quzhou City, Zheijang Province some 400 km Southwest of Shanghai, announced in February 2013. The acquired assets of Quzhou Juxin Machinery Co., Ltd and Quzhou Chixin Machinery Co., Ltd and approximately 220 employees will transfer to Metso as of August 8th. The value of the acquisition has not been disclosed.
The reasoning behind the acquisition is to improve Metso’s capabilities to supply wear parts to its mining and construction industry customers in China and other markets in Asia- Pacific. “I am really pleased that we were able to close this important acquisition this fast. It gives us good starting point to develop the Quzhou foundry as part of Metso. We already have the most extensive services center and distribution network in our industry. With this acquisition we will strengthen our manufacturing presence in China and further develop our services business”, says João Ney Colagrossi, President, Services business line, Mining and Construction, Metso.
Metso currently has five foundries and an extensive network of external casting suppliers serving the mining and construction industries. Its foundries are located in Ahmedabad, India; Isithebe, South Africa; Prerov, Czech Republic; Sorocaba, Brazil and Tampere, Finland.
The year 2013 marks Metso’s 80-year anniversary in China. The company’s first contract from China, a paper machine delivery, was signed in 1933. Today, Metso has a strong and well-established presence in China. Metso continues to strengthen its presence in China and has announced an acquisition of Shaorui Heavy Industries Ltd. and a joint venture with LiuGong Group Corp. Ltd. Metso’s 3,200 employees in China address local customer needs in all Metso’s key customer industries, and support the sustainable development of China's industries and infrastructure.
Coal miner SouthGobi Resources Ltd said it was granted three pre-mining agreements by the Mongolian government, about two years after the company applied for them.
The miner said it would withdraw a notice of investment dispute it had filed against Mongolia in 2012 related to the agreements.
The pre-mining agreements bring SouthGobi one step closer to applying for mining licenses.
Mongolia, home to some of the world's biggest unexploited mineral deposits, has become one of the hottest destinations for billions of dollars of mining investment.
"The granting of the (pre-mining agreements) is an important step for SouthGobi, and signals its improving relationship with key stakeholders in Mongolia," the company said in a statement recently.
State-controlled Chinese aluminum giant Chalco's $926 million bid for a majority stake in SouthGobi Resources fell apart last year after stiff political opposition strained the company's relationship with the Mongolian government.
Rio Tinto, which controls SouthGobi Resources through Turquoise Hill Resources Ltd, and the Mongolian government have had a rough relationship over the Oyu Tolgoi copper and gold mine. The mine started exporting copper in July after securing government approval with difficulty.
SouthGobi has been struggling with weak demand in China and withdrew its full-year forecast for steel-making coal last week.
McIlvaine Company
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