Mount Isa Mines levels up renewables

OLIVIA THOMSON

APA solar farm at Mount Isa, Queensland. Image: Glencore.

Glencore’s Mount Isa Mines operation is set to source 20 per cent of its long-term electricity needs from APA Group’s new solar farm in Mica Creek, Queensland.

Under a 15-year agreement, Mount Isa Mines can use up to 50 per cent of the solar electricity produced each year at the Mica Creek solar farm (also known as the Dugald River solar farm).

The agreement was first announced in December 2023, where Glencore zinc assets Australia chief operating officer Sam Strohmayr said the partnership will help Glencore reduce its emissions footprint.

“The partnership helps reduce our high-power costs which is one of the elements that make it difficult to compete with our international rivals,” Strohmayr said.

The 88-megawatt farm at the basis of the agreement was officially opened yesterday and is poised to boast 180,000 solar panels across 200 hectares of land. The official opening was attended by Strohmayr.

“APA has been working with us for many years providing reliable electricity for our Mount Isa Mines operations,” Strohmayr said. “We welcomed the opportunity to partner with APA on a renewables project and in the process contribute to a collective effort to reduce greenhouse gas emissions.

“There are several benefits from this agreement ­– not only for us but also for the community. Mount Isa Mines is reducing its carbon footprint, and in the process using renewable energy to help produce energy transition metals, such as zinc and copper, that are needed globally for a low carbon future.”

In October 2023, Glencore announced plans to close the Mount Isa Mines underground copper operations – Enterprise, X41 and Black Rock – and its copper concentrator by the end of 2025. The company cited low ore grades as the cause.

Glencore’s Lady Loretta zinc mine, which was a finite orebody with a seven-year mine life, will also close in 2025.

In response to the Mount Isa closures, the Queensland Government created the $50 million Mount Isa Transition Fund, which aims to boost projects that can commence quickly, create jobs, and build on the region’s reputation as a great place to live and work.

With $20 million going towards shovel-ready mining projects, $30 million will be used to accelerate resources projects in the Northwest Minerals Province. The initiative will be led by the Queensland Treasury and Department of Resources.

Other Mount Isa operations such as the copper smelter, the George Fisher mine, the zinc-lead concentrator, the lead smelter, and the copper refinery in Townsville remain operating.

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Metso opens the doors in Karratha

ALEXANDRA EASTWOOD

The new Karratha service centre. Image: Metso

Metso’s largest service centre has now officially opened in Karratha, Western Australia, supporting the growing demand of customer needs in the region.

The centre serves mining and aggregates customers with maintenance and repair solutions and spans a 35,000m² area, including a workshop covering 5000m².

“The opening of the new center is an important milestone and further proof of our commitment to accelerate strategic investments in serving customers from pit to port,” Metso president, services business area Sami Takaluoma said.

“Strengthening our presence to offer increased productivity, shorter lead times, and environmental advantages will allow us to take service capabilities and customer experience to the next level.”

The centre has been equipped with advanced amenities including high-capacity cranes, CNC machines, a heat treatment furnace, welding facilities and assembly stations.

“This is a long-term and significant commitment to the Pilbara region and the communities here,” Metso president Asia Pacific Stuart Sneyd said. “We are extremely pleased that our local customers are already expressing considerable interest and confidence in our services.

“Metso has a significant installed base of equipment and a strong reputation in Asia Pacific; every day over 900 processing plants rely on Metso’s technology.

“By utilising Metso’s service know-how and expertise, genuine parts, exact materials, and OEM specifications, customers will achieve significant business and sustainability benefits.”

The centre will also provide a dedicated training facility to enhance the technical expertise of mining professionals.

An apprenticeship training program is planned for the centre at a later date.

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Cosmos nickel mine to close

ALEXANDRA EASTWOOD

GR, igo, cosmos, nickel

Cosmos open-pit. Image: Western Areas

After conducting a review into its Cosmos nickel mine in WA, IGO has made the decision to transition the site into care and maintenance.

The closure is expected to be concluded by the end of May this year, with IGO assessing the value of continuing work on select exploration programs in the area.

The news comes after IGO advised the company would see through the current slump in lithium prices but would reduce production at its Greenbushes lithium joint venture in WA.

“This is not the outcome anyone at IGO wanted, however we cannot ignore the operational and financial risks involved in continuing to develop Cosmos in the current environment,” IGO managing director and chief executive officer Ivan Vella said.

“We still believe there is value in Cosmos, however in this nickel environment we need to be disciplined with our allocation of capital, while retaining our optionality to restart if market conditions improve.”

IGO also released its December 2023 quarterly, reporting that both net cash and group nickel production had been reduced.

“Our industry is facing some significant challenges and uncertainty with both nickel and lithium experiencing a downturn in the cycle,” Vella said.

It is expected that there will be redundancies owing to the closure, but Vella said IGO is committed to working with its people.

“I’d like to thank the team on site who have done an outstanding job to work through the challenges, and to progress the project to where it is today,” he said.

“Prioritising and minimising the impact on our team through this process is our absolute focus and we will provide every support we can to those people affected.”

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Australia’s new largest gold miner

TIM BOND

Newcrest

The Cadia gold operation in New South Wales.

Newcrest Mining disappears from the ASX, having been officially swallowed-up by gold giant Newmont.

The takeover creates a veritable gold behemoth in control of over half of the world’s Tier-1 gold assets. The enlarged Newmont, which sees foreign ownership of Australian gold assets rise above 50 per cent, will oversee 10 “large, long-life, low-cost Tier-1” operations across the world.

Newmont already owned the Boddington and Tanami gold operations in Australia and will now add Cadia and Telfer to the fold. This puts Newmont in control of four out of six of Australia’s largest gold mines.

Other additions include the Brucejack and Red Chris operations in Canada, which are located nearby Newmont’s Saddle North project. Newmont president and chief executive officer Tom Palmer called this combination of gold assets a “golden triangle”.

The Lihir operation in Papua New Guinea will also fall under Newmont’s control.

Newmont expects to generate pre-tax synergies of $500 million, and at least $2 billion in cash improvements, in the first two years after closing the deal as it optimises its portfolio of assets.

“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” Palmer said.

“Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”

Australia’s new largest gold miner

TIM BOND2 days ago

Newcrest

The Cadia gold operation in New South Wales.

Newcrest Mining disappears from the ASX, having been officially swallowed-up by gold giant Newmont.

The takeover creates a veritable gold behemoth in control of over half of the world’s Tier-1 gold assets. The enlarged Newmont, which sees foreign ownership of Australian gold assets rise above 50 per cent, will oversee 10 “large, long-life, low-cost Tier-1” operations across the world.

Newmont already owned the Boddington and Tanami gold operations in Australia and will now add Cadia and Telfer to the fold. This puts Newmont in control of four out of six of Australia’s largest gold mines.

Other additions include the Brucejack and Red Chris operations in Canada, which are located nearby Newmont’s Saddle North project. Newmont president and chief executive officer Tom Palmer called this combination of gold assets a “golden triangle”.

The Lihir operation in Papua New Guinea will also fall under Newmont’s control.

Newmont expects to generate pre-tax synergies of $500 million, and at least $2 billion in cash improvements, in the first two years after closing the deal as it optimises its portfolio of assets.

“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” Palmer said.

“Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”

Revealed: Kinder Australia unveil new chief executive officer

ADAM DAUNT

Charles Pratt

Charles Pratt is the new CEO of Kinder Australia. Picture: Kinder Australia

Kinder Australia has announced a major step for the company by unveiling a new chief executive officer.

The Australian company has appointed long-time employee Charles Pratt to take the top job after starting his journey with Kinder more than two decades ago.  

Kinder Australia founders Neil and Christine Kinder have transitioned into managerial roles on the company’s advisory board. Neil will maintain his role as a managing director.  

In a statement, Kinder welcomed the promotion of Pratt as the company prepares to celebrate its 39th anniversary in the bulk handling industry next year.  

“Charles Pratt is characterised by his unwavering diligence and diplomatic approach to achieve the best possible outcomes and practical solutions,” they said. 

“He encourages a culture of inclusiveness and upskilling – qualities that have played a pivotal role in his rapid rise within the company. 

“His hands-on experience and profound understanding of heavy process industries make him a remarkable problem solver, not only for Kinder but also for the company’s valued customers.  

“Charles has an uncanny ability to dive deep and uncover issues, often identifying challenges that even the most discerning customer might overlook.” 

Pratt previously served Kinder as the operations manager and is remaining as a company shareholder. 

Whitehaven coal swoop a matter of longevity

TIM BOND

queensland, coal, whitehaven

As the ink dries on Whitehaven Coal’s $US4.1 billion ($6.5 billion) acquisition of two of BHP’s Queensland coal assets, movement on the ASX shows that stakeholders are mulling over the broader significance of the deal.

Following the announcement of the deal on Wednesday, Whitehaven opened on the ASX with a bang at $7.79 per share (up from $6.69 on Tuesday), its highest share price since the coal boom at the beginning of the year.

The purchase of BHP’s Daunia and Blackwater coal mines comes with a price tag of $US2.1 billion in cash up front, $US1.1 billion in cash over three years after completion and the potential for up to $US0.9 billion in a price-linked earnout payable over three years. This comprises a total sale price of around $6.48 billion, with completion of the deal expected in the June 2024 quarter.

Whitehaven chief executive officer and managing director Paul Flynn called the acquisition of the two metallurgical coal assets ‘transformative’ for the company.

Metallurgical and thermal coal differ in quality and carbon content. Thermal coal is traditionally burned to generate electricity, but as Australia and the world transition to cleaner energy, thermal coal is heavily regulated and arguably falling from relevance. Metallurgical coal, on the other hand, is a higher quality coal used in steelmaking with strong global demand.

The deal will mean 70 per cent of Whitehaven’s coal production will be metallurgical, giving the miner some much needed longevity in the heavily regulated realm of coal mining.

“Daunia and Blackwater produce metallurgical coal that is in high demand across Asia… where population growth and economic development is expected to drive strong demand for steel production and metallurgical coal through to at least 2050,” Flynn said.

The two mines also expand Whitehaven’s coal assets outside of NSW, where the company currently operates four mines in the Gunnedah Basin.

But BHP seems to feel differently when it comes to the longevity of Daunia and Blackwater – at least under its own capital investment model. The mining giant first flagged the two Queensland mines for sale so it could focus on producing higher quality metallurgical coal, a move it views as more sustainable.

“A key route for steelmakers to be able to reduce their carbon intensity will be through more efficient blast furnace operations. That requires the highest of quality coking (metallurgical) coal. And that’s what we have in assets like Peak Downs, Goonyella, Saraji and Broadmedow,” BHP said.

“And so those assets we see as having both sides through the energy transition. What we’re doing here is further concentrating our portfolio on the best of the best assets.”

Glencore to close Mount Isa

KELSIE HARFORD

Glencore Mount Isa

Glencore has announced plans to close its Mount Isa copper operations in Queensland by the end of 2025, but said it will keep its other metal assets open.

Operating for over 60 years, the company’s copper mine life has already been extended six years past its original life expectancy.

All three copper mines at the Mount Isa operation – Enterprise, X41 and Black Rock – are set to close, as well as the company’s copper concentrator.

Other Mount Isa mines and operations will remain open, including the copper smelter, the George Fisher mine, the zinc-lead concentrator, the lead smelter in Mount Isa, as well as the copper refinery in Townsville.

Glencore said it has conducted a range of studies and reviews seeking to further extend the life of the underground copper mines, but the end of mine life has been confirmed.

Glencore’s Lady Loretta zinc mine, located 140km north-west of Mount Isa, which was a finite orebody with a seven-year mine life, will also close in 2025.

“We know this decision will be disappointing for our people, our suppliers, and the Mount Isa community,” Glencore Australia zinc asset chief operating officer Sam Strohmayr said.

“The reality of mining is that mines have a beginning, middle and end. And unfortunately, after 60 years of operation, Mount Isa’s underground copper operations have now reached that end.

“We want to give our people as much time as possible to consider the best options for them and their families, which is why we are notifying our workers and the community almost two years before these mines close.

“Our focus over the coming months will be to work closely with our people and contractors, our suppliers, and the Mount Isa community to provide support as we move towards closure of these assets.”

Glencore’s Mount Isa underground copper mines, copper concentrator and supporting services currently employ around 1200 people.

BHP scales new copper heights

TOM PARKER

Copper South Australia

BHP’s acquisition of OZ Minerals is paying dividends, with operational records falling across its new copper district in South Australia.

The Carrapateena mine, located 100km south-east of BHP’s Olympic Dam operation, achieved record development metres in September, producing 14,100 tonnes of copper in the September quarter. This is a 21 per cent increase on the previous three months (11,700 tonnes).

Olympic Dam, which BHP owned before the OZ Minerals acquisition, mined 2.64 million tonnes (Mt) of material during the September quarter – its highest mark since the 2014–15 financial year (FY15).

This equated to record gold production of 53,028 ounces, the second time Olympic Dam has achieved this in three quarters.

Combined with a 48 per cent increase in copper production at Prominent Hill, BHP produced 71,700 tonnes from its South Australia copper operations – a 44 per cent uplift from the same quarter last year (bearing in mind it only owned Olympic Dam at this point).

BHP achieved a 11 per cent group copper production uplift from the third quarter of 2022, with the Escondida and Pampa Norte operations in Chile also delivering strong performances.

Iron ore production fell three per cent from the same quarter last year, which the major miner attributed to “tie-in activity for the Rail Technology Programme (RTP), the ongoing ramp up and maintenance at the Central Pilbara hub (South Flank and Mining Area C), and the timing of track renewal maintenance”.

BHP said South Flank remains on track to ramp up to full production capacity of 80 million tonnes per annum by the end of FY24.

The miner’s quarterly was released on the same day as the divestment of BMA’s Daunia and Blackwater coal mines was revealed, with Whitehaven buying the mines for $US3.2 ($5.02) billion.

BMA is a joint venture between BHP and Mitsubishi Development.

First Quantum Minerals’ Honeymoon continues

OLIVIA THOMSON

Boss Energy Honeymoon uranium project.

Canadian-based First Quantum Minerals has commenced a maiden diamond drilling program along the Yarramba Palaeovalley on the tenements of Boss Energy’s Honeymoon uranium project in South Australia.

Boss Energy first entered into an exploration earn-in agreement with First Quantum Minerals in February 2022. The agreement covers the base metals rights of five tenements at the Honeymoon project, which commenced mining operations last week.

“With a proven track record in discovering and developing deposits, Boss considers First Quantum Minerals an ideal partner in the exploration and potential development of any base or precious metal discoveries at Honeymoon,” Boss Energy said of the agreement.

The new drilling program will target basement-hosted base metal mineralisation below the Yarramba Palaeovalley and will cover three high-priority targets identified from extensive analysis and modelling of geophysical and geochemical datasets.

It will consist of at least five diamond core holes for a minimum of 1800m drilling. Global drilling company DDH1 – which was acquired by Perenti last week – will complete the 4–6 week-long drilling program.

The geochemical assay results are expected to return within 1–2 months after the program’s completion.

“This agreement is an outstanding opportunity for Boss and our shareholders,” Boss Energy managing director Duncan Craib said.

“We have a global leader in First Quantum Minerals funding base metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us while we focus on our goal of becoming Australia’s next uranium producer.”

After the drilling program’s completion, First Quantum Minerals may choose to earn a 51 per cent interest in its agreement with Boss by spending $6 million on exploration within five years, as well as maintaining minimum annual expenditure on the project of $500,000.

If First Quantum Minerals follows this path, it will enter into a joint venture agreement with Boss Energy.

Metso reveals India expansion

Metso has chartered a new path in India after announcing plans to extend its manufacturing capacity of mobile track-mounted crushing and screening equipment.  

The company will expand its manufacturing operations in Alwar in India. The Alwar facility will be 35 per cent bigger at 340,000 square metres.  

The Alwar facility is one of Metso’s biggest manufacturing facilities. The site employees 1300 people with a production ramp up expected to continue into the next year.  

The factory, which originally opened in 2008, was showcased on September 19 with the new expansion. Key features, according to Metso, include automated warehousing, automated assembly lines, modern painting lines and 13,000 solar panels installed to enable increased energy production. After the extension, solar energy covers 85 per cent of Alwar’s total power generation, which is the maximum permitted as per state government guidelines. 

President of the Aggregates business area of Metso Markku Simula said the expansion was key for Metso.  

”With the increased manufacturing capacity, Alwar becomes the major Metso site for increased domestic business in India and exports to Metso’s customers globally. Additionally, significant investment has been made in engineering and R&D resources, making it one of our key global engineering hubs,” he said. 

The increased capacity in India will be used for the manufacturing of mobile McCloskey and Tesab equipment. At the same site, Metso is also producing wear parts and pumps for the aggregates and mining industries