Major miner Rio Tinto is looking to invest more in its Kennecott operation near Salt Lake City, Utah, in a bid to strengthen its copper supply in the US.
To do so, Rio will increase production from underground mining at the site while also improving the health of key assets.
A total of $US498 million in funding has been approved to deliver the increase in production and is expected to commence in 2024.
Rio said the production will ramp up steadily over two years from 2024 in order to deliver 250,000 tonnes of additional mined copper over the next 10 years.
“We are investing to build a world class underground mine at Kennecott and strengthen our processing facilities, to meet the growing demand for copper in the United States, a key material for domestic manufacturing and the energy transition,” Rio Tinto Copper chief operating officer Clayton Walker said.
“This investment will position Kennecott to continue the strong contribution it has made as part of the Salt Lake Valley community for 120 years, injecting about $1.5 billion annually to the local Utah economy.”
Rio will also invest $300 million for a rebuild of the Kennecott smelter, the largest in the history of the site.
The investment is the latest in a series copper investments, signalling the growing importance of the resource.
Mid-tier Australian gold producer Regis Resources has released its annual mineral resource and ore reserve update for the 2022 calendar year.
The company said its mineral resources and ore reserves show progress against its long-term strategy, as well as provides a solid platform to launch the next phase of growth.
Highlights from the report include underground reserves outpaced depletion for the second year in a row as new results highlight underground life extensions at the Duketon gold project and the Tropicana joint venture, which Regis Resources chief executive officer Jim Beyer said was pleasing to see.
“We are extremely pleased that our underground mines at both Duketon and Tropicana have outpaced depletion for the second year in a row. We have spent the last two years investing in these mines and it is very satisfying to deliver reserve growth on these investments over this short time horizon,” Beyer said.
“It is still early days in the maturity of these undergrounds and we look forward to the continuing growth potential as we mine deeper. Our long reserve life of eight years and located wholly within Australia provides a strong platform to deliver on our long-term growth objectives and achieve superior returns for our shareholders.”
Other highlights from the report includes group ore reserves of 3.6 million ounces (Moz) and group mineral resources of 7.0Moz, both as of 31 December 2022.
There was an increase in new ore reserves of 210,000 ounces (koz) and an increase in new mineral resources of 400koz, both offset by the 2022 calendar year depletion.
Long term gold price assumptions for the calculation of reserves and resources were updated but remain at moderate levels at a weighted average of $1800 per ounce for reserves and $2430 per ounce for resources.
Additionally, early results from the Garden Well exploration decline at the Duketon project has reinforced the potential for a new production front and growth in ounces per vertical metre. The underground site also established an exploration target.
The Western Australian (WA) Government has released a new report which details the State’s potential to join the rapidly growing global green steelmaking value chain.
The Minerals Research Institute of Western Australia (MRIWA) said that the State has played a central role in the growth of the global steel industry for over 60 years.
“Steelmaking is a very energy intense process resulting in the global steel industry being one of the largest carbon emitters in the world… it is important to understand the significant challenges steelmakers are facing to reduce emissions in their operations,” the MRIWA said.
As a response to this issue, the MRIWA and the WA Government created the Western Australia’s Green Steel Opportunity report. It maps five ways in which WA iron ore can be used to reduce emissions from steelmaking.
The report considers the size and scale of the capital requirements and infrastructure needed for these pathways, and it identifies the State’s access to natural gas and renewable energy resources as key to supporting emissions reductions in steelmaking.
WA Premier Roger Cook said the report will help position the State as an investment destination for low-emissions steel opportunities.
“Our State’s abundant renewable energy resources alongside our world-leading iron ore industry puts WA front and centre in the global push towards green steel. Moving up the green steel value chain will diversify our economy and create more local jobs right across the State,” Cook said.
Mines and Petroleum Minister Bill Johnston said the State Government has a comprehensive understanding of the challenges facing the steel industry in its decarbonisation efforts and opportunities.
“The transition option of using natural gas has the potential to reduce emissions from iron making by 65 per cent and is technically feasible today. This information can be used to support investment attraction into Western Australia,” Johnston said.
After selling its CSA copper mine in Cobar, New South Wales, to Metals Acquisition Corp (MAC) for $US1.1 billion ($1.64 billion) earlier this month, Glencore and MAC have officially closed the sale.
Under the transaction, Glencore has received $US775 million in cash and $US100 million in shares, along with:
$US75 million deferred payment to be paid within 12 months
$US150 million payment contingent upon future copper prices
1.5 per cent life of mine net smelter return royalty
Glencore will offtake 100 per cent of the copper concentrate produced and MAC will assume ownership and the full operation of the mine.
“The acquisition of CSA represents a strong strategic fit for MAC. Our management team’s operational expertise, understanding of regional operations and relationships with local stakeholders uniquely position us to identify and realise the full potential value of the asset,” MAC chief executive officer Mick McMullen said in 2022.
“We believe that copper has favourable fundamentals that will continue to support an elevated copper price.
“Copper is expected to play a key role in the global energy transition ‘megatrend’, with approximately one million tonnes per annum of new supply required from 2024 onwards in order to meet the surging demand forecast.
“With few new projects globally in the pipeline, increasing permitting issues and jurisdictional risk, and declining copper grades across the industry, we believe that there are significant challenges ahead to close the projected supply deficit.”
Australian near-term copper producer True North Copper will commence trading on the Australian Securities Exchange (ASX) as of today.
The news arrives as Truth North Copper’s (TNC) merger with Duke Exploration was completed June 7 2023, after being first announced February 28 2023.
Prior to its listing, TNC completed an underwritten capital raising, and a priority offer to existing Duke Exploration shareholders, raising a total of approximately $37.3 million (before costs) at $0.25 per share.
TNC is a copper, cobalt and critical minerals mining company based in Queensland, Australia. Its principal assets include the copper-goldCloncurry project and the high-grade copper cobaltMt Oxide project.
The company aims to be Australia’s next copper producer through its Queensland-based portfolio of copper and cobalt assets. TNC managing director Marty Costello described the ASX listing as the latest step towards reaching this goal.
“Our ASX listing is the latest milestone in our transformation into Australia’s next copper producer,” Costello said.
“With funds raised via our offer and our recently completed acquisition of the high-grade Mt Oxide copper-cobalt-silver project, we have all the assets in place to achieve this. This timing is excellent given the current price cycle for copper and expected supply deficit in the next few years.
“We have a large combined indicated, measured and inferred JORC resource base containing 326,000 tonnes of copper as well as significant cobalt, gold and silver and infrastructure including a copper concentrator, solvent extraction plant and copper sulphate crystallisation plant.
“We plan to move into production in the second half of (2023), subject to successful technical studies and further financing if required, while we will continue to explore our projects for opportunities to expand our resource base, with drilling commenced at Mt Oxide’s vero resource underway.”
The benefits of artificial intelligence (AI) are being seen in the mining industry in various forms such as in automated trains, automated drills, and the algorithms that enable predictive maintenance.
With Edge AI – which marries edge computing with AI – AI is feasible at a much larger scale in mining than ever before. This is because the AI is working via machine learning algorithms located and stored locally, as opposed to relying on constant communication with the cloud.
The four benefits of Edge AI include:
1. Speed
Edge AI can help mining companies process large amounts of data at the edge of their networks – closer to where the data is being generated.
Devices make near-instant decisions without having to upload or download data from the cloud or data centre. This reduces latency and enables real-time decision-making, which can improve operational efficiency, productivity, and safety.
2. Savings
As the AI is located on the ‘edge’ the network costs for running AI applications are significantly lower as they require less internet bandwidth. This amplifies other savings that mining companies can see from adopting AI to optimise operations and minimise waste.
For instance, edge AI can be used to enhance the performance of drilling and blasting operations, reducing the amount of energy and resources required. It can also be used to optimise the routing of mining vehicles to reduce fuel consumption and wear and tear on equipment.
3. Smart
The AI gains knowledge by tapping back into the cloud-based network whenever it can’t adequately answer or perform a task, meaning it will keep learning, but only when it needs to. This makes AI for predictive maintenance more viable on a large scale – predictive formulas can be hosted on the edge, but the AI will continue to get smarter.
4. Secure
As Edge AI devices analyse real-world information and store confidential data locally without uploading to the cloud, they offer a mining operation more security and privacy of data.
Additionally, AI can be deployed to detect and prevent cyberattacks or breaches.
Thinking about integrating Edge AI technology? Choosing the right platform is key to performance in a mining environment. The Australian-owned Backplane Technology Systems has been providing Australian mining companies with industrial computing systems for over 30 years. The company is exclusive suppliers of the Neousys Edge AI GPU (Graphics Processing Units) which are designed to function in industrial and extreme conditions.
“Our lineup of Neousys embedded edge AI GPU platforms are powered by NVIDIA GPUs and share common features such as a patented thermal design to ensure wide working temperatures, a patented damping bracket to withstand serious shock and vibration and an adaptive GPU bracket to support various cards in the system,” Backplane chief executive officer Kristy Comb said.
“These embedded GPU systems have been optimised to support complex deep learning computations and ensure efficient and effective AI training. In particular, our Neoysys SEMIL series have certain features that make them ideal for mining environments.”
The Neousys SEMIL series is an Edge AI platform specifically engineered for the rugged environmental conditions experienced in mining sectors.
Key features and benefits of Neousys SEMIL series:
Water, dust, and corrosion proof
Perfect fit for rugged environments where shock, vibration and humidity are experienced.
Fanless GPU computers
MIL-STD-810G and EN 50155 certified
Highly power efficient
Can operate in temperatures that range from -25°C to 70°C
Interested to understand the value that Edge AI can bring to your mining operation in more detail? Download the free white paper ‘Harnessing the benefits of AI in mining’.
Major miner Rio Tinto has joined forces with steelmaker China Baowu to explore ways to decarbonise the steel value chain in China and Australia.
Under a recently signed Memorandum of Understanding (MoU), the two companies will advance specific decarbonisation projects including:
Researching, building and demonstrating a pilot-scale electric melter, enabling low-carbon steel making
Optimising pelletisation technology for low-carbon shaft furnace-based direct reduction
Expanding China Baowu’s HyCROF technology, which can mitigate CO2 emissions
Jointly studying opportunities for the production of low-carbon iron in WA.
The MoU was signed in Shanghai by Rio Tinto chief commercial officer Alf Barrios and China Baowu vice president Hou Angui.
“Rio Tinto and China Baowu are united in a commitment to accelerating the delivery of low-carbon solutions for the entire steel value chain,” Barrios said.
“This MoU aims to address one of the biggest challenges faced by the industry – developing a low-carbon pathway for low-to-medium grade iron ores, which account for the vast majority of global iron ore supply.
“China’s commitment to curbing emissions and promoting high-quality green development is strongly aligned with our own position where climate change and the low-carbon transition are at the heart of our strategy.”
Rio chief executive of iron ore Simon Trott said the company is proud of its 40-year relationship with China Baowu.
“We look forward to progressing this study into the potential of low-carbon iron making in Western Australia as we work to ensure a positive future for Pilbara ores in a green steel world,” Trott said.
China Baowu said the company is committed to working with Rio Tinto now and into the future.
“With the mission of building an industrial ecosystem to promote the progress of human civilisation, China Baowu is committed to working with Rio Tinto to jointly study and provide low-carbon and green comprehensive solutions for the steel value chain, help the low-carbon transformation and upgrade of the steel industry chain, and support the world to address the challenge of climate change with pragmatic actions,” the company said.
Coal miner Glencore will sell its CSA copper mine in Cobar, New South Wales, to Metals Acquisition Corp (MAC) for $US1.1 billion ($1.64 billion).
CSA is an established, high-grade producing, long-life underground copper mine with an estimated current mine life of over 15 years, and MAC has identified opportunities to further extend it, subject to exploration success.
The sale is the latest indicator of copper’s growing importance, after Evolution Mining extended its Ernest Henry mine life to 2040 earlier this week.
Similarly, South32 is looking to grow its portfolio, identifying a copper mine that could be an M&A fit. The copper outlook continues to be supported by the rising decarbonisation narrative, with the commodity a highly efficient conduit for renewable energy systems such as solar, wind, hydro and thermal energy.
The Glencore/MAC deal has been on the table for some time now, with the companies entering into an agreement back in March 2022.
“The acquisition of CSA represents a strong strategic fit for MAC. Our management team’s operational expertise, understanding of regional operations and relationships with local stakeholders uniquely position us to identify and realise the full potential value of the asset,” MAC chief executive officer Mick McMullen said at the time.
“We believe that copper has favourable fundamentals that will continue to support an elevated copper price.
“Copper is expected to play a key role in the global energy transition ‘megatrend’, with approximately one million tonnes per annum of new supply required from 2024 onwards in order to meet the surging demand forecast.
“With few new projects globally in the pipeline, increasing permitting issues and jurisdictional risk, and declining copper grades across the industry, we believe that there are significant challenges ahead to close the projected supply deficit.”
MAC will acquire 100 per cent of the issued share capital of Cobar Management from Glencore. Cobar Management owns and operates the mine.
The company has made arrangement for the copper streams with Osisko Gold Royalties in the US.
“CSA is a high-grade, long-life asset, with significant upside that can be unlocked by the MAC management team,” Osisko president and chief executive officer Sandeep Singh said.
“We are pleased to see this important transaction nearing completion, and look forward to having both the silver and copper streams contribute to our near-term cash flows.”
AspenTech is providing intelligent digital solutions to the mining industry, helping reduce downtime and emissions while maximising asset performance.
Mobile and fixed equipment plant maintenance is one of the costliest parts of a mining operation. This stems from the fact that site operators typically rely on preventive maintenance schedules designed by the original equipment manufacturer.
But this system is too rigid to depend on, and can fail to account for variations in the use of equipment, different working environments and the effects of extreme weather. It’s the equivalent of ignoring the warning light in a car because it’s still got three months until the next service.
There is a better way of doing things, and it’s called prescriptive maintenance. AspenTech’s Aspen Mtell solution offers the mining industry exactly that.
Aspen Mtell is a predictive and prescriptive maintenance solution that uses machine learning to monitor equipment in real-time for imminent and future failures.
“Companies are facing increasing pressure to reduce their carbon footprint and improve operational efficiency in order to meet global climate targets,” senior industry marketing consultant for AspenTech, Brandon Richardson, told Australian Mining. “To deal with these challenges, many companies are turning to digitalisation solutions.
“AspenTech offers advanced digitalisation solutions specifically designed to assist companies in the mining industry to achieve their sustainability goals and improve operational efficiency, while also minimising costly environmental and safety risks.
“AspenTech’s asset performance management solutions provide a comprehensive suite of tools, including Aspen Mtell, to monitor and optimise performance of mining assets.”
By monitoring machine performance round-the-clock, the Mtell software can recognise patterns indicative of degradation and impending failure. These early warnings give site operators the chance to plan maintenance weeks – and sometimes months – ahead, rather than reactively working through equipment failures at the expense of time and money.
“The high costs associated with maintenance, repairs, and downtime can be a significant burden for mining companies,” Richardson said.
“AspenTech helps address these challenges by providing predictive maintenance solutions that can reduce downtime and maintenance costs.”
Aspen Mtell has been tried and tested in the field, and the results speak for themselves.
“A particular mining client was having difficulty predicting when maintenance was required on their trucks, resulting in frequent breakdowns and increased maintenance costs,” Richardson said.
“By implementing Aspen Mtell, the company was able to analyse sensor data from the trucks and develop predictive models called agents that could accurately forecast maintenance needs.
“This allowed the company to proactively schedule maintenance, reducing unplanned downtime and improving overall equipment reliability.”
Aspen Mtell is also making operations safer. In one instance, the software flagged a failure in a customer’s oil heater.
“In those types of industrial machines, a failure would have meant hot oil vaporising cold water, which would have caused a rapid steam explosion,” Richardson said.
“A failure would have had catastrophic safety implications, but thanks to Aspen Mtell, the site operator was able to take pre-emptive action and avoid an accident.”
Aspen Mtell pairs well with another AspenTech solution, known as advanced process control (APC). APC provides real-time control and optimisation of equipment, helping mining companies make their operations run as efficiently as possible.
“APC enables mining companies to optimise their production processes and reduce energy consumption,” Richardson said. “AspenTech APM and APC solutions help mining companies to make data-driven decisions that improve process efficiency, optimise production, and reduce environmental impact.
“The integration of AspenTech APM and APC solutions ensures that mining companies can achieve their sustainability objectives while remaining competitive in an uncertain economic environment.”
Energy efficiency and safety play a huge role in achieving environmental, social and governance (ESG) targets, meaning solutions like Aspen Mtell are vital for staying competitive in an evolving mining market.
And ESG targets are much more than just a peripheral consideration.
There is tangible value for mining companies in maintaining safe and responsible worksites, and in reducing emissions in line with the global push for net-zero.
Social and environmental practices are becoming essential for mining companies to secure a social license to operate. Demonstrating such responsibility helps project approvals go smoother, which directly translates to a faster timeline and profitability.
In this way, intelligent solutions like AspenTech APM and APC not only help keep expenses under control, but add real value for AspenTech’s mining industry clients.
“AspenTech is committed to helping its clients in the mining industry achieve sustainable, cost effective, and optimised operations,” Richardson said.
“The company has a network of experts of who can provide support and guidance throughout the implementation process, ensuring clients get the most out of their investment.”
Greatland Gold has announced that the management of the Juri joint venture (JV) will transfer to Newcrest, its joint venture partner from July 1.
The Juri JV is an unincorporated joint venture between Greatland Gold and Newcrest. Greatland own 49 per cent of the JV and Newcrest own 51 per cent. The JV was formed in November 2020 to accelerate exploration at the Paterson Range East and Black Hills exploration licences.
Under the terms of the farm-in and joint venture agreement which governs the Juri JV, Newcrest could elect to become the joint venture manager at any time following an initial period.
Newcrest has now exercised its right to do so and will assume this responsibility from the beginning of the 2024 financial year. The transfer of management of the Juri JV to Newcrest does not affect any of Greatland’s other rights as a joint venture participant.
Greatland managing director Shaun Day said the company welcomes Newcrest elevating its engagement and interest in the Juri JV.
“Greatland strongly believes in the prospectivity of the Juri Joint Venture tenure and will continue to be an active participant following the upcoming management transition,” Day said.
“The shift of Juri Joint Venture management to Newcrest provides Greatland’s exploration team the opportunity to put greater focus on our 100 per cent owned portfolio of highly prospective tenure together with our responsibilities as the new manager of the farm-in and joint venture arrangement with Rio Tinto on the Paterson South project.”
