Joy Global to be renamed Komatsu Mining

Japanese based industrial machinery provider Komatsu has completed its acquisition of Joy Global, expanding its global mining services business.

Under the approximately $3.7 billion acquisition, Joy Global will be renamed Komatsu Mining Corp and will keep its headquarters in Milwaukee in the United States.

The company will operate as a subsidiary of Komatsu and will continue to invest in the P&H, Joy and Montabert brands in addition to Komatsu’s mining products, services and technologies.

Komatsu president and CEO Tetsuji Ohashi, said, “The combination of our Komatsu-brand surface mining equipment with the P&H, Joy and Montabert brands of surface and underground products will allow us to offer a complete range of mining solutions for our customers.”

“We plan to build on the strength of our shared cultures, including our unwavering belief in safety first and our passion for providing innovative solutions, to become an unrivalled mining solutions and services provider.”

The acquisition adds more than 100,000 people to Komatsu’s team bringing the company’s total to more than 57,000 employees.

Komatsu Mining will be headed by former leader of Komatsu Latin America, Jeffrey Dawes.

Joy Global will no longer be publicly traded, with its shares delisted from the New York Stock Exchange.

Komatsu’s Australian subsidiary recently acquired Queensland-based mining equipment solutions MineWare to enhance its mining technology.

Komatsu acquires Queensland based mine solutions provider MineWare

Komatsu’s Australian subsidiary has acquired MineWare, a mining equipment solutions provider based in Queensland.

MineWare provides systems for loading equipment such as draglines as well as rope and hydraulic shovels in mines, enhancing their payloads and visualising excavating positions.

It also has an advanced technology portfolio to improve the loading process, which boosts productivity on mining operations.

Komatsu automates mining equipment using Information and Communication Technology (ICT) and enhances worker safety and productivity through connecting jobsite data on open platforms.

With the acquisition, Komatsu can implement MineWare’s solutions into its equipment to help operators optimise their mining operations.

MineWare CEO Andrew Jessett said, “With several potential partnership opportunities in the last year, what appealed about Komatsu was the ability for MineWare to remain a highly independent entity.”

“Komatsu is the right partner to support MineWare’s next level of growth, giving us the ability to expand our global footprint quickly into new markets.”

Peabody arises from bankruptcy

Peabody Energy has come out of Chapter 11 bankruptcy and will begin trading in the New York Stock Exchange under the ticket symbol BTU.

The company filed bankruptcy last year to reduce its debt amid the weakened coal market.

At the time, it highlighted “industry pressures in recent years including a dramatic drop in the price of metallurgical coal, weakness in the Chinese economy, overproduction of domestic shale gas and ongoing regulatory challenges” as key reasons for filing.

Peabody president and CEO, Glenn Kellow, said the ‘The New BTU’ will create value for both shareholders and stakeholders over time.

Peabody is the only global pure-play coal investment, and we have the scale, quality of assets and people, and diversity of geography and products to be highly competitive,” he said

“We also have taken significant steps to create a capital structure to succeed through all cycles.

“Our financial focus will now be on reducing debt, targeting high-return investments and returning cash to shareholders over time.”

Peabody has reduced its debt by more than $5 billion over the past year. During that time, it has also accelerated its coal mine restoration, achieved record safety and strengthened its Australian arms.

“We thank our 6,700 employees and all stakeholders for their widespread support for the company and our plan of reorganisation,” Kellow added.

“We look forward to this next phase in our company’s history.”

AUTONOMOUS VEHICLES ON THE LOAD/HAUL ROUTE

 

Through early stages of the development process, the driver remained in the truck cab but was hands free during the driving.

Through early stages of the development process, the driver remained in the truck cab but was hands free during the driving.

AUTONOMOUS VEHICLES ON THE LOAD/HAUL ROUTE

Two US companies – an aggregate operation and a robotics group – have been developing an aftermarket technology solution that could soon take the driver out of the haul truck. Therese Dunphy reports.

It’s no secret that equipment manufacturers have been working on autonomous trucks for many years. Typically, these large trucks operate as part of a fleet management and optimisation program at large mines. While intriguing, the technology has not yet been scaled for use in aggregates applications.

Now, Luck Stone, based in Richmond, Virginia, USA, with quarrying operations across three states, and Jaybridge Robotics, based in Cambridge, Massachusetts, have collaborated on a system that fits the unique needs of the quarrying market. This year they expect to have the prototype unit of a lead driver concept in place. This would allow a fleet of autonomous haul trucks to follow a single operator-driven truck throughout the load/haul/dump/return route. Eventually, they expect to see the driver out of the truck altogether.

Exploring options

Luck Stone has been on a roll with innovations over the past several years, including pioneering a remote control wheel loader that enhances safe operations at the quarry face and gives it access to a greater amount of reserves.

“As a business, we’re trying to make strides around the idea of being really intentional about innovation and creativity,” Luck Stone’s senior director of engineering and operational support Travis Chewning said.

“In fact, the company created an innovation process to develop ideas. We have a process, forum, and resources available so that when folks in the organisation have an idea, there is a place for them to go.”

When Luck Stone put a remote control loader into its first operation, Chewning said the company began to think about other opportunities.

“We were amazed at how quickly we were able to move and the success of that project. It got us asking, if we could remotely control a 988 loader, could we automate the loader? Could we take the next step? We didn’t have the ability to take that anywhere, but we were very curious about it.”

At the same time, Jaybridge Robotics was fresh from its success with autonomous agricultural equipment and was exploring other markets where automation made sense – including the aggregates industry.

“The mining industry is familiar with the concept and is starting to become familiar with the benefits,” Jaybridge Robotics president and CEO Jeremy Brown said. “And the equipment price is high, so the cost of autonomy equipment is a relatively small capital cost compared to the trucks.”

Brown met with an aggregates producer at MINExpo 2012 and spent much of 2013 visiting quarries around the United States to learn more about the needs of the market. “We became convinced that the opportunity was real and that the technology had just about gotten to the point where what an aggregates operation needs from an autonomous system was becoming cost-effective,” he said.

A mix of off-the-shelf hardware, along with proprietary software, comprises the control system that is being installed onto the haul truck.

A mix of off-the-shelf hardware, along with proprietary software, comprises the control system that is being installed onto the haul truck.

By using commodity, off-the-shelf parts, Jaybridge can take advantage of the rapid pace of development in technology and keep the parts cost down.

“Every high-end car now has lidar and radar and all the sensing technology you need,” Chewning said. “There are companies producing those by the hundreds of thousands, so the unit cost is just dropping amazingly fast. Jaybridge really sees an opportunity to leverage that.”

Determining the value proposition

One of the challenges is determining the trade-off between functionality and price. Chewning said Luck Stone was in conversations with Jaybridge for nearly a year, vetting capability and cost issues. They considered the following questions:

  • What kind of functionality would create value?
  • What price point would be considered feasible?
  • What are the performance requirements?
  • What are the safety requirements?
  • What equipment factors need to be considered?

“Within Luck Stone, the real motivation is that, when we looked at the future, there is no doubt this is coming.” Chewning said. “If you read any article about where autonomous cars are going, this is going to be part of how the world functions. We’d much rather be on the front end of that than the back end.”

Another consideration came from a lesson Luck Stone learned when it began automating plants in the early 1980s: automation improves consistency.

“We learned that it helps a plant operate in a more consistent process,” Chewning said. “It’s less expensive to operate, and it gives us the best product for the customer.”

Automated truck operations may well lead to lower maintenance costs, as their behaviour is modelled after an operation’s best truck operator, and driving technique impacts transmission shifts, brake wear, suspension life and tyre life, among other factors.

Chewning posed the question: “What would your performance be in an operation if every truck was functioning like your best operator? We definitely see there to be an efficiency gain.”

He said the deeper they went into the conversation, the more opportunities presented themselves.

Shown here is the driver’s wheel and dashboard in the prototype truck.

Shown here is the driver’s wheel and dashboard in the prototype truck.

For example, one discussion focused on night-time operations. Typically, reduced visibility leads operators to lower their speed, and productivity drops. Visibility concerns aren’t an issue for an automated truck, so it creates an opportunity for increased productivity.

While automation is not intended to replace people at Luck Stone operations, it does allow operators to focus on plant maintenance and efficiency.

“Our associates are our most valuable asset,” Chewning said. “We learned that, by automating our plants, we provided time for our operators to do other, more valuable, things.”

Although Luck Stone isn’t looking to downsize its workforce, automated trucks may help offset workforce challenges facing operators around the nation.

“It is progressively harder and harder to find operators,” Brown said. “The workforce across the country is urbanising, so it’s more challenging to get people to drive out of the city to operate quarrying equipment.”

Finding trained and reliable operators is a significant concern for some aggregates companies, he says.

Developing a prototype

Once they defined the various parameters, the two companies began to collaborate on prototypes. Prior to presenting the concept at an AGG1 presentation in 2015, the project had reached the point that a driver could drive the experimental truck from its cab. The driver used a joystick to control the technology installed on the haul truck.

Since then, Luck Stone and Jaybridge Robotics have been able to get the operator’s hands off the wheel, allowing the vehicle to drive autonomously and with repeatable performance along a pre-planned path. The operator was able to ‘land’ the truck accurately at designated locations. “We’ve taken the next step,” Brown said.

Chewning added: “Every time they come down, we incrementally experiment one step further. We’re taking baby steps, really just trying to get experiences under our belt. The steps now are to just keep building on that – building knowledge, experiences and confidence with the system so we can keep stretching it more and more.”

Future steps include working through issues such as having the truck operate at higher speeds and in reverse. Brown said they needed to work through the initial autonomous workflow, as well as user interfaces with the loader, crusher and lead driver.

Lidar technology, shown on this prototype, uses a laser beam to detect objects in the truck’s path.

Lidar technology, shown on this prototype, uses a laser beam to detect objects in the truck’s path.

“We hope to be doing lead driver, in the experimental context, where you still have an operator sitting in each of the autonomous trucks and serving as the safety system, keeping eyes on the road, eyes on the mirrors, and working out the workflow elements,” Brown said.Additional factors, such as integration of obstacle detection, will be necessary before taking the operator out of the cab.

Brown says they have to work through scenarios in which the truck must detect obstacles and ensure the sensors do so accurately.

“You have to put in place all of the safety protocols needed to operate not just self-driving, but actually unpopulated trucks in an area,” he said. “After we’ve been operating for a while, we should be able to characterise how quickly conditions on the ground change and how the lead driver changes the way they are driving.”

As they can identify how quickly those changes happen, they will learn the tempo of the route and gauge how long a driver can safely leave the vehicle.

“It’s going to be a journey of discovery to figure out how to get the driver out of the cab at all, and to figure out how frequently they have to get back in – and once there isn’t a lead driver, who monitors a remote console, so that if the truck sees an obstacle and stops for some reason, it can flag a human operator to address the situation.”

Once the lead driver comes out of the truck, operations will still need a person to work in a supervisory fashion, he says.

“The final step,” Brown said, “would be to give that remote human the ability to command the truck where to go on a map or some kind of computer interface rather than instructing the truck by driving the truck first.”

Looking to the future

To date, Jaybridge Robotics has worked exclusively with Luck Stone on the prototype.

Brown says that will continue until they work through the basic workflow process.

“It’s high cost and low return until it’s actually working,” he said of the development process.

“As soon as the first one is working at one quarry site, we’re going to want to install more at some other sites and make sure we can solve problems at more than one place.”

One of the challenges is to imagine all the variables. “We can only experience so many scenarios in so many months per year,” Chewning said. “The more experiences we have, the more Jaybridge can adapt and grow the system.

“They have been able to move forward so much faster than we would have ever expected. We have no reason to think that in the next year to 18 months we won’t have a prototype running unmanned in one of our quarries. That’s just awesome.”

The lead driver approach will likely be the first saleable model, Brown predicts. Once they have several out in the field, they can grow their experience and address variables from site to site, including how factors such as GPS and cellular coverage impact the system.

While Luck Stone’s involvement has been vital to the early phases of development, Chewning said the partners would welcome other operators to join the project and help to refine the technology. “The more industry engagement there is, the more it helps advance the thinking,” he said.

Article courtesy of Aggregates Manager. Visit: AggMan.com

More than a mobile phone

One of the first things often associated with Motorola is mobile phones, especially looking back not quite so long ago, when flip phones like the Motorola Razr dominated the market.

With an 85-year history, the company has always focused on communication – particularly radio communication – and has serviced a whole range of sectors from emergency departments, retail, hospitality and mining.

“One of the beauties of our business is not a lot of people actually see us day to day,” Martin Chappell, general manager Australia and New Zealand commercial channels, minerals and energy at Motorola Solutions, told Australian Mining.

“You don’t see our products and services out there but it’s probably touched your life today already and you’re not even aware of it.”

The company employs around 20,000 people, with its head office in Chicago and regional head offices in Melbourne and Singapore. It has been operating in Australia for more than 40 years.

While Motorola specialises in radio communications, Chappell said it aimed to extend into applications on various devices; expanding from pure hand-held or mobile radio devices and digitising its products to run on different platforms that are both consumer and industrial grade.

Communications challenges on site

Chappell said the biggest communications challenge for mine sites was continuity of service; getting enough coverage so management can talk to or locate their employees.

“In the last several years, applications through digitisation of radio products has allowed us to be able to locate people,” he said.

“I can use a specific example of a mine just out of Emerald in Queensland where they do blasting nearly every day. Obviously they need to know where their staff are before they go and blast.

“In the old days it was via voice, now it’s via voice as well as GPS tracking.”

As miners constantly look for ways to reduce downtime on site, being able to easily locate workers and equipment falls within that category. Proper communications services are also a key part of improving worker safety, which remains a top priority as companies continue to ensure every worker goes home safely after every shift.

The remoteness of mines presents another challenge for communications technology, particularly as miners continue to go further and further in search of mineral resources.

Chappell spoke about the company’s radio network – which he referred to as a ‘campus device’ – that could be placed on a required mine site, providing extended coverage.

“What it’s doing now is it’s also linking back to head offices,” Chappell said.

“So if we look at the IROC (Integrated Remote Operations Centre) system in WA, which is through BHP (Billiton), what that does is have a multitude of mines which all talk back to a central command system based in Perth. So they might be talking from the Pilbara or wherever back to Perth.”

The IROC system controls all BHP’s Pilbara operations, including its rail, stockyards and port facilities. The system also facilitates the growing shift toward automation in the mining industry.

“From that centralised position in Perth, they’ve got autonomous trucks going now, so there’s a lot of automation that’s coming from these centralised command centres,” Chappell said.

To further overcome the communications difficulties at remote sites, Chappell added that the company had devices that could switch to public networks to provide better coverage.

“Now you can have devices that can roam off of those campus sites or your mine sites right and onto public networks where you haven’t got coverage from your dedicated network,” he said.

“When you leave or go into town and you’re a manager, you still need to be in touch with the mine, which could be 200km away. You can roam onto the public network and use it as a radio [and] log back securely into your private system.”

Although Apple and Samsung currently rule the commercial consumer market, Chappell reinforced the inability of their phones to handle conditions on site. He mentioned the Motorola Lex L10, a hybrid mobile phone radio device that is more suitable, as it is rugged and longer-lasting.

“That’s a device you pick up and think it’s a smartphone,” he said. “Sure it’s a little bit thicker and a little bit more rugged but to the untrained eye, that’s not a big big difference. What that is, is essentially a product that has two-way radio on site and when you get to town, it’s your smart phone.”

Chappell added that the device is LTE (4G) capable and can use two sim cards.

“When you’re on your mine site you can use it to be on your lock down radio network or LTE network. When you’re in town you roam on to Vodaphone, Optus, Telstra, whatever it is and use the application to get back into your dedicated system on site.”

“It works in water and is dust proof,” he said, “you can drop it from three levels and it won’t break.

“Those are the sort of devices that we’re pushing down into the market in terms of mining.”

Communications across Australia

Chappell believes Australia is at the forefront globally when it comes to implementing wireless communications on site.

“This goes back 30-40 years for analog radio systems that were rolled out through lots of mines across Australia,” he said.

“Most of them now have been upgraded to digital for various reasons, mainly to get greater coverage, better voice quality and to bring on a suite of applications, and those applications deliver a multitude of benefits to the mining companies.

“So I think Australia has been early adopters in terms of heading down that digital road on two-way radio and enjoying the benefits that you get from that.”

In terms of the future of mining communications, Chappell considered more progress would happen through applications.

“I think it’s probably more around the application side, so the benefits that they’re getting out of apps in terms of worker safety, in terms of journey management – being able to track the workers from point A to point B – doing that autonomously so it’s automatic,” he said.

He also spoke of blast tones on site to aid workers.

“They can send out blast tones over the network [so] that people are warned that there’s actually blasting that’s taking place in certain areas,” he added.

“That’s where it’s all heading, and I think it’s heading towards workers being focused on their particular job at that point in time as opposed to having to muck around with technology to make sure it’s working. So there’s a lot of applications around that, in terms of keeping the safety of workers at the forefront.”

Motorola’s communications platforms

Chappell explained that Motorola has three different communications platforms; the P25, which is predominantly in the public safety arena; the Tetra, which is a European standard; and digital mobile radio (DMR).

While Motorola has a mining focus, it also has offerings for the oil and gas industry, such as the Tetra ATEX MTP8000EX portable radio, which has a higher standard to stop any chance of it sparking or igniting a fire.

Although it invests in all three of its communications platforms, one of its main focuses is its DMRs.

“There’s a big emphasis on digital mobile radios, and then from an LTE perspective, Motorola’s doing a lot of work around LTE in terms of infrastructure, to deliver that higher bandwidth data across mine sites or indeed across public safety.”

In terms of delivering the right communications on site, Chappell emphasised selecting platforms that are standards based and companies that have been in the business for a long time.

“Another way that they can ensure it is by working with the vendor and the vendors’ partner community who have been in the business for a long long time,” he added.

“You would also be looking towards a company and a partner who can not only deliver the products and the system from the outset, but support it through its lifespan, whether that be 10, 15 or 20 years.”

A glimpse ahead

While the company looks ahead at further developing its DMR range, it also has big plans for its software capabilities, especially in analytics and predicting events to increase worker safety.

“Motorola talks a lot about that in terms of its public safety business and how we are now analysing and predicting for crimes going to take place in a particular area. That is also starting to play into the mining space where we can predict a potential accident happening or collisions of vehicles,” Chappell said.

“So lots and lots of emphasis over the next year to 24 months around what those pretty significant software suites can do in predicting as well as getting a return on investment, journey management, route management, all those type of stuff that mining businesses are acutely aware of these days as they continue to further drive costs down and improve their ROI.”

The company has already seen a lot of success in its public safety business over the past year in the mining sector, securing contracts with BHP Billiton Mitsubishi Alliance (BHP BMA) in Queensland’s Bowen Basin, BHP’s rail business in WA’s Pilbara, Wesfarmers and a yet to be identified major international oil and gas producer.

With technology constantly evolving and upgrading, who knows what will be next for radio communications.

MODULAR WASH PLANT VARIANTS

McCloskey Washing Systems – one of the world’s largest independent manufacturers of screening, crushing, washing and classifying plant and equipment – unveiled its SandStorm modular wash plants last month at CONEXPO-CONAGG 2017.

The Sandstorm 516, 620 and 824 variants incorporate feeding, screening, aggregate and sand washing on a single, compact modular chassis.

Able to efficiently process feeds of up to 550 tonnes per hour, the modular chassis-mounted scalping unit offers quarry operators a cost-effective and durable machine in an all-electric format.

WATCH VIDEO

 

Mining sector accounts for 15 per cent of Australia’s economy: Deloitte

A new Deloitte report has found the mining and mining equipment, technology and services (METS) sector has accounted for 15 per cent of Australia’s gross domestic product (GDP), highlighting its significant contribution to Australia’s economy.

The report, which was commissioned by the Minerals Council of Australia, found the mining and METS sector contributed $236.8 billion in 2015-16.

Both sectors support 1.1 million jobs nationwide – around 10 per cent of overall employment.

Although the sector makes a major contribution nationwide, there are particular regions where this is more significant, particularly in Western Australia.

The mining and METS sector accounted for a $37.8 billion economic contribution to WA’s Pilbara region – 88 per cent of total regional economic activity. It also accounted for nearly 94,000 jobs both directly and indirectly in the area.

This is followed by Queensland’s Bowen and Surat region, where the sectors made a $18.6 billion economic contribution (63 per cent of the region’s economic activity) and supported 99,700 jobs.

The sector also made a significant contribution to New South Wales’ Hunter region, accounting for $15.2 billion (34 per cent of total regional economic activity) and supporting 93,600 jobs.

The report also highlighted that a key feature of the mining sector was in its high exports.

During 1969, agriculture dominated Australia’s exports, with minerals and fuel making up 17 per cent. However, this has increased significantly, with minerals and energy exports accounting for 64 per cent of Australia’s exports in 2015-16 due to growing demand in Asia.

The report also focused on METS innovations such as semi-autonomous equipment, drones, data analytics software that have helped increase productivity, safety and yields on mine sites.

It indicated that Australia’s advantage in the mining and METS sector relies not only on innovation, but also on policies that reinforce competition, support skills growth and capital, and for companies to adapt to changing market conditions.

In order to sustain the mining and METS sector in the future, the report highlighted the need for the government to implement a range of initiatives including flexible workplaces, being open to foreign investment, a fair and competitive taxation system and continued support for collaboration between the sector and research groups.

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Lithium electrifies the Pilbara

Lithium has undoubtedly been one of the hottest commodities in the world for some time now.

Demand from countries like China has grown significantly in the past two years as manufacturers look to increase output of lithium-related technology, such as li-ion batteries, in addition to its more traditional use for production of ceramics or glass.

Prices for lithium carbonate have skyrocketed as demand has risen, with its value around triple what was recorded in 2015.

The mineral has enjoyed a strong presence in Western Australia for more than 25 years. In the state’s south-west, the Greenbushes mine produces about a third of the world’s output.

Now, lithium is emerging as a hot prospect with potential of diversifying the mining industry in the Pilbara, with exploration continuing to show the region has the high-grade material to accommodate global demand.

Several prospects are being evaluated in the region with development in sight, including Pilbara Minerals’ Pilgangoora project, which is on track to start producing in the fourth quarter of 2017.

While the Pilbara’s lithium sector is obviously not on the same scale as its iron ore industry, it’s hard to ignore the parallels between the two commodities and how they are emerging in the region.

Pilbara Minerals chief executive officer Ken Brinsden believes the region is well positioned to play an important role in the development of lithium as a key commodity in Australia, as it did with iron ore.

“Of course, the Pilbara is very famous for its iron ore mining. I am convinced that it is soon to be famous for its lithium ore material supply because there are some amazing resources up there,” Brinsden told Australian Mining.

“Pilgangoora sits right at the heart of it. You couldn’t ask for a better place to be constructing a mine. It is so close to key infrastructure – the port of Port Hedland, power supply and the road networks.”

Energising China

Another parallel between lithium and iron ore in the Pilbara is the role of China, which is currently demanding lithium raw materials in record quantities in the same way it pursued iron ore.

Brinsden said while some sceptics may still view this surge in demand as a ‘flash-in-the-pan’, he believes this opinion could not be further from reality.

“It’s really phenomenal what is going on, especially in China. The speed with which they are building out their lithium ion supply chain and at the higher quality end is phenomenal,” Brinsden said.

“The evidence is not just in the growth of battery-making capacity but it is also the price they are paying for the raw material. The reason they are paying the high prices is because there is a fundamental shortage.

Brinsden added: “The phenomenon about the resources industry is that when it is put under pressure to grow, the supply will introduce new tonnes which are at higher costs than what was developed historically. As a result, the cost base shifts which means the price must also shift.”

Project progress

In 2016, Pilbara Minerals focused on de-risking the Pilgangoora project by securing several key milestones, including the native title agreement and mining lease.

These milestones led to another important achievement in January when it awarded the engineering, procurement and construction (EPC) contract to Australian services company, RCR Tomlinson.

The contract, which is worth a maximum $148 million, involves the EPC of Pilgangoora’s two million tonnes per annum lithium-tantalum processing plant, including wet-and-dry circuit with concentrator, associated plant and commissioning of the mine.

RCR selected sub-contractors – Primero and Minnovo – to provide it with technical and engineering support during the contract. Both subcontractors have previous experience in the lithium sector.

“We were very lucky, we had a competitive tender process and some tough decisions to make in how we would do it. The consortiums that were put together were very capable and cost effective…it was an embarrassment of riches really,” Brinsden said.

“The RCR consortium (of companies) are very capable operators and have a proven track record, even to the point where they are already operating in the lithium industry, which is very rare in WA.”

Brinsden said the company was working towards awarding additional services contracts for the development of Pilgangoora and beyond.

“That is all happening in parallel. There will be lots of minor contracts that relate to the balance of the construction on site – things like installation, road construction, road upgrades and rail crossings,” Brinsden said.

“Then, in addition, the one we have to work through is for the actual mining enterprise, including the mining contract.”

Post-boom Pilbara

Pilbara Minerals is also finding cost-friendly opportunities in the aftermath of the mining investment boom in the region.

Brinsden said Pilgangoora’s development process was being aided by the remnants of the wide-spread construction of mines during the past decade.

“It translates into some good opportunities for Pilbara in terms of pricing, the availability of the resources and even out-of-the-box opportunities like buying things second hand,” Brinsden explained.

“There are lots of things that are now available or redundant to previous activities that we are able to pick up very cheaply. We have bought a 300-man camp from the Roy Hill project and we have done that very cost effectively in comparison with buying new.”

Brinsden described the past decade in the Pilbara as an ‘extreme scenario’, which had left many redundant camps, building shed and even processing plants behind.

“Some of those things are a big advantage to the likes of Pilbara (Minerals) who are constructing. Having said that I think it is true that the whole industry has turned the corner and things are getting busier again,” he said.

“You would have to expect then that things will get a little bit more competitive, but perhaps nothing like that hyperinflation environment that existed in the Pilbara as recently as four years ago.”

Balla Balla project a step closer with Chinese construction partnership

BBI Group (BBIG) has signed a memorandum of understanding (MoU) to partner with China State Construction Engineering Corporation (CSCEC) for the construction of the Balla Balla Infrastructure (BBI) iron ore project in Western Australia.

The nearly $6 billion BBI project and a foundation customer mine is set to be developed in WA’s Pilbara region and will need 3300 workers during construction. It is also expected to provide 900 permanent jobs once operations begin.

CSCEC is one of China’s largest companies and one of the largest construction companies in the world.

The MoU was signed by both companies in Canberra, at a ceremony that was attended by prime minister Malcolm Turnbull and Chinese premier Li Kequiang.

Under the agreement, both companies will work together to ensure the project is contructed and operated by suitably qualified, Pilbara experienced contractors, confirming BBIG’s commitment to increasing work opportunities for local and regional businesses and employees.

It comes after the WA Government signed a state agreement for the project and a 162km railway linking it to iron ore deposits in the region, in January this year.

BBIG chair Jon Young said the partnership was another major milestone for the project and a step closer to company receiving a final investment decision and beginning construction in 2018.”

“To have signed such an important MoU for our project in the presence of the Australian prime minister and the Chinese premier confirms the strength and international significance of the BBI Project,” Young said.

“We are pleased to have secured the confidence and support of China State Construction Engineering Corporation, an internationally significant construction partner who possesses world class experience in the delivery of large scale infrastructure projects, including port and rail infrastructure.

“The MOU between BBIG and CSCEC recognises the critical importance of a Pilbara experienced workforce to the successful delivery of the project.”

Global logistics market worth $16 bn by 2022

The global logistics market is forecasted to reach US$12,256 billion ($16,063 billion) by 2022, according to a new report published by Allied Market Research.

‘Logistics – Global Opportunity Analysis and Industry Forecast, 2014 – 2022’ projects a CAGR of 3.48% from 2016 to 2022, with Asia-Pacific dominating the global market in terms of revenue – accounting for more than a 34 per cent share of the global market. China accounts for about a 59 per cent share in the Asia-Pacific logistics market.

In 2014, the roadway segment dominated the global logistics market in terms of revenue, and it is projected to grow at a CAGR of 3.33 per cent during the forecast period. The manufacturing segment dominated the global logistics market, accounting for about 26 per cent share in 2014.

The major players profiled in the report include Deutsche Post DHL, Kuehne+Nagel, The Maersk Group, DB Schenker Logistics, C.H.Robinson, Dsv Global Transports and Logistics, Panalpina, United Parcel Service (UPS), Supply Chain Solutions and Geodis.

“Global logistics market holds a vital scope for growth globally,” said Sheetanshu Upadhyay, Research Analyst – Freight and Logistics at Allied Market Research. “Increasing applications of logistics market in the various modes and end-user industry is expected to fuel growth in the coming years.

“Roadways are one of the key components of modes of transportation and multimodal transport. It accounts for nearly 47.29 per cent of the overall mode of transportation used in the world logistics market. The segment contributed highest share in total logistics market owing to its speed transportations and flexibility.”