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Australian manufacturing’s ongoing industrial evolution focus for NMW

National Manufacturing Week (NMW), held at the Melbourne Convention and Exhibition Centre from May 14-17, will highlight the continuous growth and change the industry is experiencing.

NMW will feature a theme of ‘Industrial Evolution’ throughout the four days of the conference program and exhibition with a specific focus on driving further innovation in local manufacturing, continuing the evolution of the industry advanced technology solutions, sharing insights to stay ahead of the game, while celebrating Australian manufacturing’s resurgence.

NMW exhibition director Robby Clark said this year’s event promises to support the continuing high-tech and highly integrated evolution of the industry.

“There’s been a resurgence of late in Australian manufacturing, which is being generated by the industry’s collective realisation, active progression and evolution to being technologically advanced, highly integrated, automation and high-level engineering.

“Equally, we’ve also seen Industry 4.0 or the Internet of Things become a reality from technological forecast, which for manufacturing has manifested in operations – for example in smart factories where sensors are providing actionable intelligence or underpinning greater automation.

“Knowledge gathering and solution sourcing are critical steps for manufacturing professionals looking to navigate this industrial evolution that is currently underway. The exhibitors for this year’s event will provide manufacturers with the latest range of products and solutions designed to improve operations and operational performance, increase efficiency and resolve challenges, while the content within the conference program will offer specific advice and visibility into how industry leaders are managing change,” said Clark.

At National Manufacturing Week 2019, the exhibition floor will feature more than 200 leading industrial suppliers of game-changing solutions, new technology, advanced manufacturing products and operational services.

Visitors will be able to take advantage of six designated product zones to navigate through the exhibition floor, which segment the extensive range of products and solutions into key operational categories. The six product zones for 2019’s event are automation and robotics, engineering, Industrial Internet of Things, safety, welding technology, and manufacturing solutions.

Key exhibitors across these six product zones include:

Automation and Robotics – Pilz, Universal Robots, Wago; Engineering – Faro, Prytec, BE;

Manufacturing Solutions – Flow Power, Combilift, Intelli Particle;

Industrial Internet of Things – Epicor, ECi Solutions, Cadgroup; Safety – Vanguard Wireless, Atom, Axelent;

Welding Technology – BOC, Lincoln Electric and Supagas.

There will also be an extensive conference programme that will feature a line-up of more than 70 industry speakers and panellists, who will share their exclusive insights about current industry challenges and recommendations for operational success. With the program’s sessions segmented across two streams, each with their own dedicated theatre, of “Industry 4.0” and “Connected Manufacturing”.

“This year’s conference program will be our most extensive and in-depth to date, with delegates offered unprecedented access to industry leaders with the expertise, knowledge and understanding to develop the strategies and practices for generating further growth,” said Clark.

Must-see theatre programs

The Industry 4.0 Theatre program will offer attendees the latest opinions, developments and research about the impact of Industry 4.0 on businesses and operations. A key highlight of this program will be the opening keynote, which will be delivered by Australia’s chief scientist, Dr Alan Finkel, followed by an innovation and collaboration stories series run by the Advanced Manufacturing Growth Centre (AMGC).

Across days 2-4 of this stream’s conference sessions, other noteworthy speakers include Swinburne University director of Factory of the Future Dr Nico Adams, CSIRO Data61 principal research consultant Dr Elliot Duff, Innovative Manufacturing CRC CEO David Chuter, Siemens head of digital enterprise Christopher Vains, and AMCG managing director Dr Jens Goennemann.

The Connected Manufacturing Theatre program offers expert advice about business management, design and industrial challenges.

Conference sessions within this stream will focus on industry topics, including environment and energy policies, process improvement and optimisation, safety innovation, safety policies, safety management and culture, mental health and well-being, marketing and sales, additive manufacturing and design, and government grants and tariffs.

Industry leaders who will feature in some of these sessions, include Efic Business Development Director Philip Smith, Australian Packaging Covenant Organisation CEO Brooke Donnelly, and Fonterra Cooperative Group HR Systems Owner Toni Kennington.

Clark said this year is NMW’s most extensive program ever, in both speaker volume and industry experience. “We are really looking forward to seeing the best game-changing, innovative and high-tech solutions that our industry-leading exhibitors are planning to demonstrate and display.”

Industry support is key

Strategic partners and industry associations supporting NMW in 2019 include Weld Australia, AMGC, Innovative Manufacturing CRC and Engineers Australia. These respective partnerships strengthen NMW’s depth and relevance of insight sharing and cement the event’s status as a key hub for the manufacturing community to come together.

As a strategic partner of this year’s event, Weld Australia will have an interactive presence on the exhibition floor offering visitors deeper insight into the latest welding skills training available. Weld Australia marketing and communications manager Donna South said Weld Australia will have an advanced welder training hub on the exhibition floor. “[This] will showcase the augmented and virtual reality technology that is revolutionising welder training here in Australia, and around the world.

“Attendees will have the chance to see and try a range of different welding simulators, which are making welder training and upskilling safer, more cost-efficient and engaging for new and experienced welders,” said South.

Improving business by understanding challenges

With NMW featuring a variety of Industry 4.0 applications that are helping lead the way for a strong future for the manufacturing industry, Clark said implementing smart solutions is a must.

“Manufacturing is no different from any other industry, in terms of needing to understand the change and challenges ahead, develop strategies and acquire the knowledge or capabilities to manage these changes or evolutions, while ensuring their customer service and productivity are not detrimentally impacted during this management of change.

“IoT is understandably forcing rapid change across the industry from operational practices and execution, to higher integration, reconsideration of approaches to production or task completion and the requirement to plan for future change, which are typified by the increasing level of ‘smart factories’ or factories with smart solutions.

“Therefore, we know businesses within the industry are actively considering and working to improve their operational practices and refine their approach or strategy for continued success. Because improving a business isn’t a process where ticking a box or achieving that next milestone is the measurement of success.”

To stay ahead of the game, Clark said manufacturers should acquire the latest insights, and collaborate and engage with industry peers.

“Whether your objective is to improve efficiency, productivity or increase quality, it’s crucial to take advantage of opportunities like NMW that support your business in its pursuit of future growth, by providing a forum to engage with industry leading solutions and operational experts.” said Clark.

Registration is now open for the 20th edition of National Manufacturing Week (14-17 May 2019), with free registration available at: www.nationalmanufacturingweek.com.au.

Lincom Group and McLanahan announce partnership

Original equipment manufacturers (OEM) Lincom Group and McLanahan Corporation have signed a contract that will see the former become the official Australian distributor of McLanahan’s sand and aggregates processing range.

This includes the distribution of McLanahan machinery designed for washing and classifying, tailings and water management and dewatering that will benefit both parties.

The collaboration will increase Lincom’s product offering while offering new distribution channels for McLanahan.

Lincom and McLanahan are both family-owned companies with extensive experience in the materials handling and material processing fields in the mining indudstry.

The partnership would bring more McLanahan products and installations in the market, according to Lincom chief executive Stephen Watterson.

“As a leading provider of material processing equipment, we are always looking into the best quality equipment for our customers and to machine plant that complement the range we already successfully provide,” Watterson said.

“McLanahan Corporation is a global provider with a reputation of top quality, with the highest standards for engineering and manufacturing, which is of huge importance to us.”

Fortescue approves $3.7bn Iron Bridge stage two expansion

Fortescue Metals Group subsidiary FMG Magnetite and joint venture partner Formosa Steel have agreed to the development of stage two of the Iron Bridge magnetite project in the Pilbara, Western Australia.

The $US2.6 billion ($3.7 billion) development includes a 22 million wet metric tonnes-per-year ore processing facility (OPF), an airstrip and expanded village, a 195-kilometre Canning Basin water pipeline and a 135-kilometre concentrate pipeline to Fortescue’s Herb Elliot port facility in Port Hedland.

The project will employ around 3000 people during construction and 900 full time positions once operations commence.

The development follows Fortescue’s $US500 million ($703 million) stage one construction of large scale pilot and demonstration plants, which have validated key equipment and magnetite production processes for the full-scale stage two OPF.

“The Iron Bridge project holds Australia’s largest JORC-compliant magnetite resource supporting a long mine life,” Fortescue chief executive Elizabeth Gaines said.

“The project is well progressed and ready for detailed design and execution with the majority of key approvals already in place. The innovative design, including the use of a dry crushing and grinding circuit, will deliver an industry-leading energy efficient operation with globally competitive capital intensity and operating costs.

“Our focus has been to create the most energy and cost-efficient ore processing facility, tailored to the specific ore we will mine.”

The Iron Bridge project is targeted to produce 22 million wet metric tonnes per year once full operational capacity is achieved.

First ore will be delivered in the first half of 2022, with ramp up to full production within 12 months at an all-in sustaining cost of $US45–55 per dry metric tonne.

This project will also deliver a premium product with iron content of 67 per cent, further enhancing the range of products available to Fortescue’s customers, according to Gaines.

When combined with the Eliwana development, the Iron Bridge expansion will increase Fortescue’s average product grade and provide the ability to deliver the majority of the company’s products at greater than 60 per cent iron, consistent with Fortescue’s long-term goal.

Coincidental to news of the approval, Fortescue has also updated the Iron Bridge’s magnetite mineral resource estimate, with ore reserves climbing up to 716 million tonnes on June 2018’s 705 million tonnes.

“This update supports the development of stage two of our Iron Bridge magnetite project announced today which holds Australia’s largest JORC compliant magnetite resource,” Gaines said.

“We are confident in the long-term demand for this premium product, supported by market fundamentals, including global supply conditions, investment in higher efficiency steel-making capacity, as well as the competitive advantage of proximity of the Pilbara to key markets in China and the region.

“We are ready to build this plant and develop this mine, and are confident that our early work will support rapid progress to full production.”

FMG Magnetite is a subsidiary of FMG IB, a Hong Kong registered company owned by Fortescue (88 per cent) and a subsidiary of Baosteel Resources International Company (12 per cent).

Clean coal demand drives Yancoal growth aspirations

Yancoal Australia is aggressively targeting organic growth opportunities to build on a rapid turnaround in company performance that led to a record 2018.

The company has highlighted a continuation of demand for its high efficiency thermal coal after posting several production records last year.

Yancoal stated that the power industry’s ongoing focus on improving thermal efficiency in generators would drive demand for the high-quality, low ash thermal coal product in which the company specialises.

Key Asian coal markets such as China and Japan have made a push towards high-efficiency, low emissions (HELE) thermal coal in order to help meet environmental targets.

Yancoal chief executive officer Reinhold Schmidt said the company would invest in new fleets and operational efficiencies across its open cut mines, while progressing a pipeline of Australian brownfield projects, with focus on the Mount Thorley Warkworth and Moolarben operations in New South Wales.

“With three of the most successful low-cost, high-quality producing Tier 1 assets in Australia, we are aggressively pursuing new organic growth opportunities to sustain the profitable return of Yancoal,” Schmidt said.

“Coal remains a critical part of global baseload energy supply and we are well positioned to maximise returns from current market conditions by meeting increasing needs for high quality coal supply.”

Chinese customs reforms this month have resulted in a fall in Australian coal prices, however. Customs clearing times at some Chinese ports have doubled to at least 40 days, according to a report from Reuters.

An official at Dalian Port Group told the news agency that the port was capping coal imports at 12 million tonnes for 2019. Five harbours within Dalian are no longer clearing Australian coal through customs, though coal from Russia and Indonesia is still allowed, the official said.

Despite this market volatility, Yancoal has raised its saleable production guidance for 2019 to 35 million tonnes, 2.1 million tonnes higher than its 2018 record.

The company’s attributable production in 2018 was 32.9 million tonnes, 27.7 million tonnes of which was thermal coal. This figure was nearly 78 per cent higher than the 18.5 million tonnes recorded in 2017.

Correspondingly, the company also achieved a record for its operating earnings before interest, tax, depreciation and amortisation (EBITDA) at $2.18 billion, a 121 per cent year-on-year increase. Yancoal secured a hat-trick third record, net profit after tax, which stood at $852 million (compared to $229 million in 2017).

Yancoal also announced a $377 million final dividend for shareholders (28.5 cents per share), another record for the company.

National Group and BHP pair up for Peak Downs excavator delivery

The National Group (
Headoffice: Level 3, 68 Marine Parade, Southport BC, QLD 4215 ) has closed out a record breaking 2018 and started 2019 off with a bang by delivering a pair of brand new excavators into Queensland’s Bowen Basin.

The first of these excavators, a Hitachi EX5600, was added to BHP Billiton Mitsubishi Alliance’s (BMA) Peak Downs site where the National Group handed over five Liebherr ultra-class T 282C trucks in September 2018.

The second excavator, a Liebherr R 996B, was delivered to its sister mine Poitrel, part of BHP’s other Queensland joint venture, BHP Mitsui Coal (BMC).

The excavator is the first piece of equipment that National Group has at the coal mine. Founder and managing director of the National Group, Mark Ackroyd, was there in person to hand over the keys at both locations and was very pleased to further contribute to its already strong relationship established with BHP.

“We have been working with BHP for some time now, especially at Peak Downs, so to be adding more equipment there is a testament to the machines we currently have operating for them and speaks volumes of our team onsite who do a great job with maintenance when needed,” he says.

“[At] Poitrel on the other hand, we are very excited to be adding our first piece of equipment there and for it to be the ever-reliable Liebherr 996 digger. We’re confident they are going to love this machine and hope it is just the beginning of things to come,” says Ackroyd.

Bringing such big equipment down under is a very complex process and one that requires a lot of aspects to go right, which is where National Group differentiates itself from most. It has the capabilities to handle all transport, assembly and delivery, giving their customers peace of mind when securing these long-term rentals.

“We know how difficult it can be to get the bigger gear to Australia first of all, let alone having to worry about everything else once it arrives here. That is why we have worked very hard to build brands that complement each other in the entire journey of port-to-pit,” Ackroyd explains.

National Group is coming off one of its best years to date. However, it shows no signs of slowing down in 2019 with future plans already to invest in technology and enter the automation space.

“The mining industry is now following the technology trend around the world and automation is at the forefront of this, says Ackroyd. “It is all about finding different ways to help your customers succeed and embracing innovation to get that edge over competitors.”

Barrick launches $25bn bid for Newmont

Barrick Gold has officially unveiled an offer to merge with Newmont Mining after several days of anticipation it would make a tilt for the gold rival.

The $US17.8 billion ($24.8 billion) all-share transaction would create the world’s largest gold company, with three Australian assets – the Super Pit and Boddington in Western Australia, and Tanami in the Northern Territory.

Barrick’s offer, however, represents a negative premium based on Newmont’s closing price on February 22. It also has the potential to derail Newmont’s $US10 billion plans to merge with Goldcorp, a deal the United States-based company believes offers better value than the Barrick tie-up.

Barrick chief executive officer Mark Bristow said the proposed merger with Newmont would unlock more than $7 billion of real synergies.

“The combination of Barrick and Newmont will create what is clearly the world’s best gold company, with the largest portfolio of Tier 1 gold assets and the highest level of free cash flow to drive future growth and support sustainable shareholder returns, run by a management team with an unparalleled record of delivering growth,” Bristow said.

A major portion of the synergies between the companies would be in Nevada, United States, where the deal would combine Barrick’s mineral endowments with Newmont’s processing plants and infrastructure.

Bristow said the proposed merger would secure Nevada’s position as the world’s most prospective gold region.

“Most important, it will enable us to consider our Nevada assets as one complex, which will result in better mine planning and fully realise the state’s enormous geological potential for all stakeholders,” Bristow said.

“Considered globally, the merger represents a radical and long-overdue restructuring of the gold industry, and a transformative shift from short-term survival tactics to the long-term creation of sustainable value.”

The Canadian company confirmed last Friday that it was reviewing the opportunity to make a takeover bid for Newmont following media speculation about a potential deal.

Barrick also completed a $US6.5 billion acquisition of Randgold Resources in January.

Newmont responded to the Barrick offer by stating it had a long history of evaluating potential transactions, and undertakes robust analysis and diligence on a continuous basis of acquisition opportunities.

“Newmont has previously reviewed and rejected potential combinations with each of Barrick and Randgold Resources, prior to their merger,” Newmont stated.

“Newmont’s proposed combination with Goldcorp represents the best opportunity to create optimal value for Newmont’s shareholders and other stakeholders.”

The company plans to fully evaluate the Barrick proposal and respond in due course.

Getting to Mining 2020 Today: Capturing the Industry 4.0 Payoff

Today we live in constantly evolving and technology-driven world. For mining operations specifically, adoption of digitalization is crucial for industry impact and success. Often overlooked by mining organizations because of its focus on smart products and engineering-driven manufacturing, Industry 4.0’s principles have much to offer the mining sector regarding:

Interoperability
Information transparency
Decentralized decision making
Technical augmentation

Among asset-intensive companies, better operational performance is the top reason for investments. The mining industry is no different mining companies must turn to Industry 4.0 and asset performance management implementation to improve safety, financial performance, and increase overall agility.

Read the E-book to learn how you can enhance your operations by capturing the Industry 4.0 payoff.

Liebherr loads productivity into latest excavators

Liebherr is ready to strengthen the reputation of the R 9100/R 9150 excavators when its B versions of the machines arrive at Australian mines this year.

As the R 9100 has proved to be a worthy successor to the R 984 C excavators over the past seven years, Liebherr is convinced the B versions will add further benefits.

Liebherr delivered widespread improvements on the R 984 C with the R 9100 and R 9150, and set similar expectations during development of the new models.

The original versions have, however, provided a strong foundation for Liebherr to build on.

Liebherr launched the R 9100 in 2010 and the R 9150 two years later. Since 2012, the OEM has sold machines for operation in 21 countries over six continents.

The excavators have operated for more than one million hours at the mines, with a third of the machines recording more than 15,000 hours each.

They are used across operations for numerous commodities, including gold, coal, iron ore, copper, nickel and manganese.

Australian miners and contractors are amongst the users of the machines, including Blue Cap Mining, which operates two R 9150 excavators at gold sites in Western Australia and Queensland.

Blue Cap general manager Paul Allen says the R 9150 has many notable qualities that have made it suitable for the small hard rock operations where they are in use.

“We have seen both excavators perform well at different sites with different challenges,” Allen tells Australian Mining.

“Part of the reason we went for the 9150 was the specification and capacity of the machine, its hydraulic system and the additional power you are pulling in that unit – it has 565kW.”

Blue Cap pairs the excavators with haul trucks in the 100-tonne class, a match that been a strong fit for the designs of the pits at the gold sites.

Another key factor that helped the R 9150 stand out for Blue Cap was the technology Liebherr included on the machines, Allen continues.

“It was (at the time) more about some of the newer technology that Liebherr embedded around productivity and fuel efficiency,” he says.

“We are seeing around 15-20 per cent more efficiency out of this digger compared to some competition.”

With the success of Blue Cap’s R 9150 excavators, Allen has taken a keen interest in the updates incorporated on Liebherr’s updated models.

The B-version excavators were launched in January and the first machine in Australia will be received this month.

Liebherr senior product manager – mining excavators George Barturen backs the new excavators to drive productivity at mining operations, whatever the environment.

“Such systems are robustly designed and will be very well suited to the Australian mining environment from our extensive experience over the last five decades,” Barturen says.

“The B series machines, as was the R 9100 are suited to all mining and quarrying operators as the machine brings a competitive advantage regardless of the mined commodity with a reduced cost per tonne.”

Blue Cap’s R 9150 at the Red Dog site. image: Blue Cap Mining.

Stepping up operations

Liebherr’s updated hydraulic excavators have been developed to provide a step forward in performance and reliability, while lowering the cost per tonne.

Both models have received upgrades across the machine, including the latest generation of Liebherr’s D9512 engine, which offers an increased lifetime target of 15,000 hours, and other features that support maintenance efficiency.

The B versions include the exclusive EVO Bucket Solution, maximising loading capacity and ensuring optimal penetration efficiency.

With contoured sidewalls and augmented depth, the EVO Bucket has a 7.5m³ capacity on the R 9100 B and 8.8m³ and 9.6m³ on the R 9150 B, the latter being available on machines configured with a shorter boom.

The buckets match the excavators with the Liebherr T 236 truck, as well as other articulated and rigid trucks in the 50–100-tonne class.

Liebherr has positioned the R 9150 B directly between the 100-tonne and 200-tonne class machines with its bucket capacities. The R 9150 B begins to challenge the productivity of larger machines in the 200-tonne class with 12m³ buckets.

Barturen says incorporating the patented EVO Bucket design to the new machines is the most significant advance that increases productivity.

“This has brought about an increase in bucket payload with a reduction in bucket weight, whilst maintaining the same fast cycle time,” Barturen says.

“Additionally, the EVO Bucket for backhoe machines Liebherr is introducing several patented innovations together with machine functional control systems to provide the operator with semi-automatic functions increasing the overall efficiency and productivity of both machines.”

Barturen, a Liebherr employee since 1991, has worked closely with the company’s mining excavator team on the development of the B versions.

Alongside fellow Liebherr product manager Michel Runser, Barturen has guided the excavators through their final stages of development before launch.

“The main drivers in the development process were to improve the machine as a whole, enhancing machine safety, improving reliability and productivity KPIs and introduce operator comfort options, both active and passive.” Barturen says.

“The Australian mining industry drives continuous improvement of the machines through the different standards, guidelines and mining industry associations.

“Additionally, Liebherr has an internal global reporting system, which brings feedback directly into the factory from the field, speeding up the implementation and introduction of suggested improvements to suit the market, which is continuously driving improvement.”

Updated Liebherr engine

This series of Liebherr excavator was the first to introduce the OEM’s own diesel engines, a milestone reflected in the B versions. The R 9100 B and R 9150 B are equipped with Liebherr’s latest D9512 V12 diesel engine, which exists in Tier 2 and USA/EPA Tier 4 final version.

Liebherr Australia executive general manager, customer service, Tony Johnstone says the company’s service team has updated its skillset to support the new engine since its introduction.

Johnstone believes this has led to a new approach for the team, which has previously serviced and maintained engines from other OEMs.

“For us the challenge has been the development of our service technicians to be ready to work on the machines, understand the systems and be able to provide the best services that are required for customers,” Johnstone says.

“We’ve also had the challenge of upskilling our technical trainers so that we could train all of our service technicians in the Liebherr engine.”

Liebherr’s Australian-based technicians completed training on the engines in the company’s Switzerland engine factory certified training centre, with focus on control systems, maintenance and diagnostics.

In addition, customer training will be provided by Liebherr certified trainers at the new technical training centre at the Para Hills West facility in Adelaide.

The company has also ensured it has widespread availability of the unique service and maintenance parts for the engine.

“We had to stock appropriately for parts and for the future which we are working on now; we are enabling our remanufacturing centre to rebuild and run the D95 series engine,” Johnstone says.

“It has been a ground up approach because it was the first Liebherr engine in a Liebherr mining excavator.”

Liebherr’s preparation for the change of engine has the services team well placed to support the B versions once they arrive in Australia.

The R 9150 B will also be available in electric drive.

The updated features of the B version machines. Image: Liebherr.

Comfort and safety first

The B-version machines feature an upper structure that is accessible via a robust fixed ladder or 45-degree access stair in option. It integrates one large central platform equipped with slip resistant surfaces.

Liebherr has designed the new arrangement with wide catwalks to facilitate maintenance and to ensure comfort during operations.

“Included in the upgrade was the integration of hard safety systems – an improved catwalk on the left side of the machine, together with a handrail installation on the counterweight for added safety during machine and engine maintenance tasks,” Barturen says.

“Integration of HEPA filtration of the operator cabin is available should the requirement be needed.”

The cab, updated with improved ergonomics and operator attenuation, provides the ideal working platform and optimal comfort for operators.

Liebherr’s resiliently mounted cabin on ISO mounts reduces vibration, while a new cabin interior liner provides a two decibel decrease in noise levels in the cabin for the operator.

Technology advances

Liebherr has shown its awareness of modern connectivity needs, equipping the B version machines with GSM data transmission, together with the ability to transmit on customer site networks to provide operating parameters, error codes and machine faults.

Machine end users can access the data through the Liebherr Mining Data (LMD) platform, and generate custom reports to track and analyse machine data.

Barturen says the excavator product team focused on Liebherr’s six pillars of mining: safety and environment, productivity, efficiency, reliability, customer service, safety, and environment when enhancing the machines with technology.

“Improvements to the machines’ operating systems provides enhanced machine operational efficiency. Together with the integration of machine data management and analytics, the B series will enable customers to increase the effective utilisation of the machine in lowering the cost per tonne,” Barturen says.

“Customer service is enhanced by on board systems for the management of the machines’ maintenance and reliability interfacing with the Liebherr developed Troubleshoot Advisor.”

The data collected by the connectivity kit is recorded in a worldwide database for processing and assessment by Liebherr.

NRW grows business after finalising RCR acquisitions

NRW Holdings head Jules Pemberton says the company has received “positive engagements” from clients following its acquisition of two RCR Tomlinson companies.

The contractor, which today reported it had finalised the deal, announced last month that it was purchasing RCR Mining and RCR Heat Treatment for $10 million as part of RCR Tomlinson’s ongoing selloff after entering administration last year.

Despite RCR’s financial failure, Pemberton noted that its purchase had received a positive response from NRW’s clients due to RCR Mining’s reputation as a “leading original equipment manufacturer.”

“This acquisition delivers a complementary business to NRW and aligns with NRW’s strategy to broaden the service offering to Tier 1 clients at a time of improving market sentiment,” Pemberton said.

“[Our clients] recognise the quality of the RCR Mining Technologies business and its people, together with the benefits the combination with NRW brings to their project objectives.”

RCR’s mining and heat treatment businesses’ locations in Welshpool and Bunbury, Western Australia, in addition to a facility in Victoria, have all been kept in the buyout, and around 300 staff have received employment offers with NRW.

Other administrative sales of RCR Tomlinson businesses so far include EGL’s purchase of the company’s energy division for $3 million and John Holland’s purchase of RCR O’Donnell Griffin’s rail business for an undetermined price.

BHP seeks 75% copper growth project at Olympic Dam

BHP’s growth aspirations to significantly increase copper output at Olympic Dam have been recognised by the South Australian Government with major development status.

The miner hopes to expand Olympic Dam’s copper production by 75 per cent, from 200,000 tonnes per annum to 350,000 tonnes per annum.

BHP is progressing its growth studies for the expansion and will seek board approval for a capital project in mid-to-late 2020.

The South Australian declaration is, however, an important milestone for BHP as it considers an investment potentially as high as $3 billion for the project.

It is the first step in a state and federal process that includes assessment of potential social, economic and environmental impacts associated with an increase in mining and production at the site.

Olympic Dam asset president Laura Tyler said BHP was aiming to achieve stable operations and sustainable growth at the mine through a staged and capital-efficient approach over the long term.

“Olympic Dam is a world-class resource with the potential to deliver value to BHP and South Australia for many decades to come, especially given our positive outlook for global copper demand,” Tyler said.

“We are pleased the South Australian Government has declared Olympic Dam’s growth plans a major development, recognising our significance to the state.

“Our team continues to refine the scope for targeted underground development in the Southern Mine Area, strategic investment surface processing facilities, new technology and supporting infrastructure.”

The proposed expansion of Olympic Dam would be the latest in a series of projects for BHP at the site in recent years.

BHP invested more than $600 million into the copper operations during the 2018 financial year, with focus on underground infrastructure and above ground processing operations.

In December 2018, BHP launched the operation of an underground ramp that has improved access to high-grade copper in the Southern Mine Area.

South Australian Minister for Energy and Mining Dan van Holst Pellekaan said the latest $3 billion expansion proposal could potentially create up to 1800 construction jobs with an additional 600 ongoing positions in operational roles.

“Olympic Dam is already the state’s largest mining operation, providing jobs, investment and royalties for South Australia,” he said.

BHP produced 65,000 tonnes of copper at Olympic Dam in the December half year, a 20 per cent increase on the previous period when a smelter maintenance campaign took place.