Author: yinghui

Rio Tinto to offload Hunter Valley coal assets to China’s Yancoal

Rio Tinto plans to sell subsidiary Coal & Allied Industries to China’s Yancoal for up to $US2.45 billion ($3.23 billion).

Coal & Allied is Rio Tinto’s thermal coal division in the Hunter Valley region of New South Wales. Its assets include majority shares in the Hunter Valley Operations mine, the Mount Thorley mine and the Warkworth mine. The three operations produced 25.9 million tonnes (Mt) of thermal and semi-soft coking coal in 2016, of which 17.1Mt were Rio Tinto’s share.

The proposed deal with Yancoal involves a $US1.95 billion upfront payment and the potential for a further $US500 over five years. Once the deal is completed, Rio Tinto will also be entitled to potential royalties.

Rio Tinto chief executive Jean-Sebastien Jacques said the proposed sale was consistent with the company’s strategy of reshaping its portfolio to ensure the most effective use of capital.

“We are confident that Coal & Allied will continue to contribute to the NSW economy and the communities of the Hunter Valley under a new owner,” Jacques said.

Rio Tinto has announced or completed at least $US7.7 billion of divestments since 2013, it said in a statement. The company also restructured the ownership of the Coal & Allied assets with joint venture partner Mitsubishi Development in 2016.

Yancoal, which is 78 per cent owned by China’s Yanzhou Coal Mining, would expand an Australian portfolio that already includes seven sites across Queensland and NSW with the transaction.

The ASX-listed Chinese company intends to fund the transaction through a capital raising and entitlement offer of its shares.

Yancoal chairman Xiyong Li said the Coal & Allied deal would be a transformative acquisition for the company and form the basis of its future growth in Australia.

“Via the acquisition of Coal & Allied’s high quality asset portfolio, we will be delivering substantial cash flows to the company, quality coal products and long-term relationships with end-users in key global markets,” he said.

The transaction must still be approved by the Australian Government, NSW Government and Chinese regulatory agencies.

Hexagon Mining snaps up Perth-based tech company MiPlan

Hexagon Mining has acquired Perth-based technology company MiPlan, a developer of mobile mine software applications for field data collection, fleet management, production management and reporting.

Hélio Samora, president of Arizona-based Hexagon, believes MiPlan’s solutions suite will be a formidable addition to the company’s technology portfolio.

“Safer, more productive mines depend on making sense of their data,” said Samora. “MiPlan’s range of apps represents a scalable, real-time mobile production management solution.”

Samora said MiPlan’s MiiNT platform would be particularly significant for Hexagon as it supports the data management, analysis and reporting needs of any sized operation.

The solution streamlines data flows between traditionally disparate systems and departments, simplifies on-demand data interrogation, trend analysis and reporting over live operational data.

Samora added that blast engineers would welcome the addition of MiPlan’s MiD&B application, which provides immediate enhancements to Hexagon Mining’s blast design solution.

“This will close the loop on design, field data capture, reconciliation and reporting,” said Samora.

The MiFleet solution will enhance Hexagon’s operational offerings and appeal to a wider variety of mining operations. It will deliver lightweight fleet management capability with near real-time infield feedback.

“Applied to our unparalleled suite of technologies for planning, operations, and safety, these solutions will empower our customers to act – not react – on real-time data at any stage of the mining value chain, no matter their location,” Samora said.

MiPlan managing director Robert Daw said the range, experience and calibre of the Hexagon group would contribute to the continued improvement of its existing offerings and provide a great platform for the next generation of solutions that mining businesses need to stay competitive.

“An acquisition by Hexagon held great appeal from the beginning due to our complementary solutions delivering immediate benefit to the market. It is also a big leap forward in our vision of aligned mines,” Daw said.

Atlas Copco plans to spin-off mining division

Swedish equipment manufacturer Atlas Copco plans to split into two companies next year, with its mining and construction tools division shaping as the basis of a new entity.

NewCo, the working name for the spin-off company, will focus on mining and civil engineering customers and include the mining and rock excavation technique business area and the constriction tools division, according to Atlas Copco.

The business has about 12,000 employees and annual revenues of 28 billion krona ($4.2 billion). Atlas Copco will propose the split at its 2018 annual general meeting.

If a split does occur, the remaining Atlas Copco business would focus on industrial customers and include the compressor technique, vacuum technique and industrial technique business area, plus the portable energy division and speciality rental division.

Atlas Copco president and chief executive officer Ronnie Leten said the two businesses have different demand drivers and demand characteristics.

“A split will increase their respective abilities to add value to customers, grow the business and attract talent,” Leten said.

If approved by shareholders, the split would take place through a share distribution, whereby Atlas Copco shareholders receive shares in NewCo in proportion to their existing stake.

Meanwhile, Atlas Copco has appointed Mats Rahmström as its new president and CEO, effective April 27. Rahmström will replace Leten, who has resigned after eight years in the position.

RCR Tomlinson secures EPC contract at Pilbara lithium project

Lithium developer Pilbara Minerals has awarded an engineering, procurement and construction (EPC) contract at the Pilgangoora project in Western Australia to RCR Tomlinson.

The contract, 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.

Pilgangoora’s processing plant is scheduled to start production in first quarter 2018.

The contract has a maximum value of about $148 million with an incentivised target price of $138 million. It has been awarded in two stages, with the first stage being a two-month FEED (front-end engineering and design) program, which will determine the final scope of work, timeline and target price. Pilbara Minerals has committed about $10.3 million to stage one.

Stage two of the contract is dependent on Pilbara Minerals making its final investment decision (FID) for the project, which is expected by March 2017.

The Pilgangoora contract win adds to RCR’s recent activity in the Pilbara region, including the delivery of two processing plants for Fortescue Metals Group at the Solomon iron ore operations. RCR also won a $120 million contract to provide materials handling systems at Rio Tinto’s Silvergrass iron ore mine in August last year.

RCR managing director and chief executive Paul Dalgleish said the Pilgangoora contract win, when added to recent awards, firmly placed the company as a leader in the EPC of processing plants in the mining sector.

“It will also increase RCR’s order book to a new record high of approximately $1.1 billion,” Dalgleish said.

RCR has selected sub-contractors, Primero and Minnovo, to provide it with technical and engineering support at Pilgangoora.

Pilbara Minerals managing director Ken Brinsden said the combination of the three contractors made for a “very compelling offering.”

“Primero’s experience in building and operating lithium plants, Minnovo’s design experience, and the construction capability of RCR ensures Pilbara will be well served,” Brinsden said.

“With project funding discussions well advanced and final environmental approvals now under way, Pilbara looks forward to starting the major construction works by the end of this quarter.”

Meanwhile, Pilbara Minerals has awarded the first stage of a 300-room camp relocation package and reestablishment works contract worth $4.8 million to OTOC Australia.

Terex closes manufacturing facility in China

Terex Cranes will close its crane manufacturing facility in Jinan, China, according to the president of Terex Cranes, Steve Filipov.
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Steve Filipov

In an exclusive interview with American Cranes & Transport, Filipov told the magazine that the plant closure falls in line with Terex Cranes’ recent restructuring, which has involved reducing its worldwide footprint as part of a strategy to allow new product development and accommodate lower demand.

Filipov also said that his team was evaluating the launch of the LC line of crawler cranes, which had been planned to be produced at the Jinan plant. Three prototypes of the first LC crawler, the 330 US ton (300 metric ton) capacity LC 330US / LC 300, have been produced so far.

“I’ve decided not to show the 330 on ConExpo,” said Filipov adding that he doesn’t feel the crane is 100% ready to be on show.

“Right now, the analysis is obviously focused around Oklahoma City where we have a lot of our product. But we have to go through that analysis, and we’ve got some work to do with that product. It was a tough decision to make, but in my mind it’s the right message to the market, that Terex Cranes is going to show a product that’s ready for prime time.”

– See more at: http://www.insideconstruction.com.au/site/news/1050897/terex-closes-manufacturing-facility-china#sthash.mYQJ5q9r.dpuf

Endeavour, Acacia Mining in talks over possible merger

Mining’s mergers and acquisitions (M&A) marketplace may be on the verge of heating up with West African-focussed gold companies Endeavour Mining and Acacia Mining considering a merger.

If the merger goes ahead, it could see one of the largest precious metal companies established in Africa, according to Bloomberg.

Both Endeavour and Acacia have confirmed that they are in “preliminary discussions” with each other and that this “may or may not result in agreement of a transaction”.

Endeavour said that while it often evaluated business development opportunities, its main focus was the “organic prospects in its existing asset portfolio”.

Acacia, a spin off of Canadian-based Barrick Gold, primarily operates in Tanzania, and is the country’s largest gold producers, with plans to extend its reach in West Africa.

Endeavour Mining operates mainly in West Africa, with sites in Ghana, the Ivory Coast, Mali and Burkina Farso.

Together, both companies have approximately $3.8 billion in combined market value, and would rank in the top five African gold mining companies by both market value and ounces produced.

There is speculation that the merger could be a reverse takeover, with Acacia purchasing Endeavour. Sources told Bloomberg that the merger could allow Barrick to reduce its 64 per cent stake in Acacia to around 30 per cent, potentially sending that stake to another buyer.

Alcoa inks major bauxite export deal

Alcoa World Alumina and Chemicals (AWAC) has secured its first major third party contract to supply around 400,000 bone dry metric tonnes (bdmt) of bauxite from its Huntly mine in Western Australia.

This comes after the company’s first trial bauxite shipment from WA to China in mid 2016, introducing their WA product to the global market.

The agreement is part of the company’s strategy to grow its third party bauxite business. It also follows the WA state government’s approval for Alcoa to export up to 2.5 million metric tonnes per annum of bauxite for five years to third party customers.

“Bauxite exports have the potential to generate greater value from our WA mineral lease, creating additional revenue streams for Alcoa and the state of Western Australia, while maintaining supply to our three WA refineries,” Garret Dixon, president of Alcoa Bauxite said.

The WA contract is one of three bauxite agreements the company recently signed worth $US126 million, to deliver approximately 2.2 million bdmt of bauxite from its two mines in Brazil – Juruti and Mineração Rio do Norte.

The contracts increase the total value of Alcoa’s 2016 and 2017 third-party bauxite supply agreements to nearly $US600 million.

Alcoa is the world’s largest bauxite miner with 45.3 million bdmt of production in 2015.

It predicts the third-party bauxite demand will double between 2015 and 2024, with China as the biggest importer.

Queensland Government invests in the future of Mount Isa Mines smelter

The Queensland Government has made a $15 million offer of support for rebricking of Glencore’s Mount Isa Mines copper smelter.

Acting Premier Curtis Pitt said the joint-funding proposal was a way of underpinning the north-west region’s economy to keep local workers on the tools.

“The offer of a $15 million grant is about working with a crucial copper and zinc business in Mount Isa which employs 4000 people and indirectly supports thousands more jobs in the regional economy,” Pitt said.

“It will also provide significant stimulus to the local economy. This support is designed to incentivise Mount Isa Mines’ further investments in the North West region.”

The grant depends on Mount Isa Mines’ commitment to maintain third-party access to the smelter and will be paid through the state’s $170 million jobs and regional growth fund, which was unveiled earlier this month, Pitt added.

Rebricking of the smelter will extend its useful life by re-lining critical components including the anode and rotary holding furnaces.

Several other local businesses are also expected to benefit from the extension of the smelter’s operating life, including Incitec Pivot’s Phosphate Hill operation, which relies partially on the sulphuric acid produced as a by-product from the smelter.

BHP Billiton locks in technology partnership with Hatch

BHP Billiton and technology company Hatch have entered into a collaborative development partnership, which will aim to accelerate the development and deployment of technological advances in mining and mineral processing.

According to Hatch, a collaborative approach like this is the future of technology development in the mining industry.

Damien Harding, Hatch’s performance innovation director, said the partnership’s intent was the future of technology development in the mining industry.

“Our two companies are working together to accelerate the realisation of benefits from potential innovations. BHP Billiton will have access to Hatch’s proven technology-commercialisation experience and deep mining-domain expertise in business process design, operational performance, engineering, and digital systems,” Harding said.

He added that Hatch developed a healthy ecosystem of expert practitioners and collaborating global partners to support the partnership.

“Our essential differentiator goes beyond having the depth and breadth of skills to innovate. It’s also the knowledge and expertise to integrate all the elements we need to rapidly develop and implement holistic solutions that will have a significant impact on the mining industry,” Harding said.

Rio Tinto awards iron ore contract to Decmil

Perth-based mining contractor Decmil has secured a new contract at Rio Tinto’s iron ore operations in the Pilbara region of Western Australia.

The $40 million contract will see Decmil design, construct and commission new facilities at the Nammuldi and Silvergrass mines. The project scope also includes modifications and extensions to existing facilities at the Nammuldi mine.

In an ASX announcement, Decmil said the project would start immediately and was expected to be completed in late 2017.

Rio Tinto announced in August that it would invest $338 million to complete development of the Silvergrass mine, which is adjacent to the Nammuldi mine.

After making this decision Rio Tinto awarded RCR Tomlinson a $120 million contract to provide materials handling systems at the Silvergrass mine.

The contract included the engineering, procurement and construction of a new primary crusher, nine kilometres of overland conveyors and associated power lines.