AI to unlock exploration frontiers

Contributor

AI exploration

Mineral exploration methods are evolving with the advent of new technologies. Image: SRK Consulting

Machine learning has proven a successful tool in expanding the exploration search space into new frontiers and refining areas for follow-up exploration.

Artificial intelligence (AI) could transform mining exploration this decade, enabling companies to analyse larger datasets and develop new geological insights.

That’s the view of Ben Jupp and Stephen Johnson, respectively principal and senior geologists at SRK Consulting, an international resources consultancy.

They believe machine learning in mineral exploration, while still an emerging technology, will become more widespread as miners and explorers use algorithms to test and refine geological concepts currently applied to exploration.

One key area in particular is the application of AI in prospectivity analysis, an area which SRK has recently seen success.

“I’m an absolute convert to using AI in mineral exploration,” Johnson said. “I’ve seen the benefits of using machine learning first-hand through a number of recent projects. The results have been incredibly powerful.”

For Jupp, the key is integrating AI with existing knowledge-driven exploration approaches.

“Essentially, AI allows us to integrate deep technical knowledge about a particular terrain and mineral system into a set of critical inputs to provide a machine learning algorithm,” Jupp said.

An advantage of using AI in prospectivity analysis is the rapid integration and analysis of large datasets by machine learning.

“Using training data such as known mines, machine learning can identify patterns and relationships in the data that geologists might overlook with traditional approaches,” Jupp said.

“Often, exploration companies will pay a highly knowledgeable expert to assist with their exploration targeting and narrow down their exploration efforts. With AI, we can use that knowledge, insight and human expertise to map out critical targeting elements and feed this into the machine learning to analyse and make predictions.”

AI is especially powerful for small and mid-sized mining companies that need to analyse large volumes of data cost effectively.

“For junior explorers with a package of tenements and limited capital, the ability to narrow exploration targeting is crucial,” Johnson said. “AI can help do that and potentially find new value in tenements that have been overlooked or are a lower priority.”

AI also removes human biases and assumptions in exploration targeting.

“A consistent theme in exploration projects is people being drawn to certain areas based on existing data and preconceived ideas,” Johnson said. “With AI targeting, you’re feeding the available data and geological layers into a model to develop a holistic view of the prospectivity of a tenement package.

“There’s no bias or subjectivity about where you should be exploring beyond what the data is suggesting.”

A group of 10 SRK Consulting geologists are using AI to develop prospectivity models for a mining project in the Middle East. Image: SRK Consulting

AI projects underway

SRK’s interest in AI emerged around 2019. Jupp and Johnson were part of a team of Australian and Canadian SRK Consulting experts who competed in OZ Minerals’ Explorer Challenge, a prominent competition that attracted more than 1000 participants from 62 countries.

The SRK Consulting team won the Fusion Prize after reinterpreting and adding value to existing datasets by applying data-driven machine learning to guide a set of knowledge-driven, mineral-system-informed fuzzy inference solutions. The result was three highly ranked iron-oxide copper gold (IOCG) targets and seven secondary targets.

In 2021, SRK began applying these and other machine-learning techniques to help companies reduce their exploration targeting at brownfield and greenfield sites.

SRK has a global partnership with DeepIQ, a leading US developer of generative AI in the oil and gas, utilities and mining sectors. SRK experts have integrated DeepIQ algorithms into their mineral prospectivity analysis at some projects.

SRK has also recently applied machine learning to exploration projects in several regional project areas, including Australia, South America and Europe, with good results.

“There’s a lot of work underway at SRK globally to test and apply AI methodology for mineral exploration,” Jupp said.

Data inputs from left to right, used to inform a machine learning generated prospectivity map. Image: SRK Consulting

Knowledge-driven targeting

SRK’s work with machine learning builds on its work in prospectivity analysis using more traditional knowledge-driven approaches for developing prospectivity maps. Methods such as fuzzy logic in mineral prospectivity analysis aim to quantify intricate relationships between geological attributes to define mineralisation potential.

“The main aim of the prospectivity analysis process is to assist our clients to narrow the focus area for exploration prior to field-based exploration, ideally as specific as the prospect area and even drill target areas,” Jupp said. “One of the key benefits of this method is you’re not reliant on the availability of training data when compared to machine learning methods.”

SRK recently applied fuzzy logic targeting on a project for Astute Metals, an ASX-listed resource company. Astute holds an 80 per cent interest in the Georgina Basin IOCG project in the highly prospective east Tennant province of the Northern Territory.

“We were successful in identifying several promising target areas in the undercover extents of east Tennant Creek,” Jupp said. “Recent drilling by the client at one of these targets intercepted strong indications for IOCG-style mineralisation that will be followed up with additional drilling to be completed later this year.”

In the Middle East, Johnson has used fuzzy logic processes for exploration targeting.

“Through our fuzzy logic approach, we developed a prospectivity model that we followed up with systematic fieldwork to validate,” Johnson said. “The outcome was fantastic because the fuzzy logic results were able to be tested and refined during follow-up phases of field work, with some really encouraging results.”

A machine learning predicted prospectivity map (left) and a structural feature input layer (right). Image: SRK Consulting

Bright future for AI

Jupp and Johnson believe industry hesitance towards using AI in exploration will fade as more results are proven.

“Some explorers have resisted the technology due to concerns that AI could overlook critical steps in the discovery process, but that will change as the industry sees meaningful exploration results from AI,” Johnson said.

“We’ve been getting a lot more enquiries on AI in exploration as interest in this area builds.”

Longer term, Johnson likes AI’s potential to challenge exploration “dogmas”.

“The mining industry has traditionally been influenced by certain dogmas about how and where exploration should be undertaken,” he said.

“Then occasionally someone makes a significant discovery that challenges this dogma and there is a rush to embrace new thinking. That will be true of AI this decade as it contributes to significant new mineral discoveries, and some early adopters are big winners from the AI revolution.”

Key considerations for AI and exploration targeting

Stay abreast of latest trends: AI technology in mineral exploration targeting is moving rapidly. New algorithms are being developed and tested, and more projects overseas are implementing the technology.

Be open minded: Because it challenges traditional approaches to exploration targeting, AI has been met with some resistance, despite the technology’s successful use in the oil and gas sector. View AI as another tool to complement and add to existing geological processes, not replace them.

Access to AI resources: There is only a small group of experts globally who are skilled in mining geology and implementing and interpreting AI-driven data models. Ensure your organisation has access to internal or external resources with knowledge of the latest AI technologies for exploration.

Understand how AI can be used: A mineral explorer could use AI to understand the critical elements that control the location of a nearby mining operation and map out areas in their tenement holding that display similar characteristics.

Focus on data: Like all data-driven models, AI is only as good as the data it analyses. Ensure data being fed into AI models is high quality and based on a clear understanding of the mineral system under investigation.

Use an iterative approach: For some companies, the value of AI is to test data collected from drilling or other exploration, and used to refine and test prospectivity models in an interactive fashion. In this way, AI is a tool to validate existing geological work by providing another layer of analysis.

Communication: Consider how the organisation will communicate the use of AI to internal and external stakeholders. Reporting of AI-generated exploration results could become a bigger issue for listed mining companies over time.

SRK Consulting is a leading, independent international consultancy that advises clients mainly in the earth and water resource industries. Its mining services range from exploration to mine closure. SRK experts are leaders in fields such as due diligence, technical studies, mine waste and water management, permitting, and mine rehabilitation. To learn more about SRK Consulting, visit www.srk.com

Weir launches new range

ALEXANDRA EASTWOOD

Image: Weir

Weir has launched the new ENDURON Orbital range of vibrating screens, engineered for sand and aggregate, construction, and small tonnage mining operations.

The screens feature an all-bolted construction, significantly improving reliability by eliminating welding in high-stress areas and removing the leading mode of failure in vibrating screens.

Locking bolts ensure structural integrity and durability, facilitating easy maintenance with quick replacement of individual components without the need for extensive downtime.

The ENDURON Orbital range is available in two screen types: the E series (elliptical motion horizontal screens) and the C series (circular motion inclined screens). Both screen types are designed with a commitment to innovation and quality.

“We at Weir are excited to bring this revolutionary new screening technology to the market,” Weir global product manager for vibrating screens Corné Kleyn said.

“The team has worked hard for the past two years to bring our customers a product that is reliable with the lowest total cost of ownership.

“Our first screen has been successfully installed and commissioned at a large global customer and we are gaining momentum with more units planned for both the European and North-America markets.”

The modular screen construction of the new range ensures that individual components can be easily replaced. Common interchangeable screen parts reduce inventory overflow and simplify maintenance.

A wide operating window provides flexibility to adjust screen settings in line with changing applications or feed conditions, without compromising the equipment’s structural integrity and minimising the risk of structural failure related to harmonic resonance.

All ENDURON products are fully supported by the Weir service network, offering service, support, and local expertise across the globe.

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Terex confirm ‘incredibly exciting’ ESG acquisition

Adam Daunt

Terex has announced a new acquisition. Image: Alexey Rezvykh/stock.adobe.com

Terex has confirmed the latest details around its acquisition of Environmental Solutions Group (ESG) from Dover Corporation in a $2-billion-dollar deal.  

The agreement establishes Terex within the waste/recycling market in North America. ESG made its name refuse collection vehicles, waste compaction machinery, balers and aftermarket equipment and digital solutions.  

“This acquisition announcement of ESG marks an incredibly exciting milestone in our multi-year transformation and aligns with our goal of strengthening our portfolio and leveraging our operating system to drive sustainable, accelerated long-term growth,” Terex president and chief executive officer Simon Meester said.  

“ESG will add a non-cyclical, financially accretive, and market-leading business to Terex’s portfolio with tangible synergies in the fast-growing waste and recycling end market.  

“In addition, ESG is led by a world-class management team and has a strong track record of operational excellence.”  

The deal is subject to close in the second half of 2024 subject to approvals and closing conditions. After the deal closes, Terex will create the new Environmental Solutions segment that includes ESG as well as Terex’s existing utilities business.  

It marks a new chapter for Terex which also recently launched a new brand, MAGNA, for the quarrying and aggregates sector earlier this year.  

Metso strengthens slurry solutions

ALEXANDRA EASTWOOD

Metso Zinnwald

Image: Metso

Metso has acquired Jindex, an Australian company that specialises in valves and process flow control, as part of its efforts to boost its slurry-handling abilities.

The agreement is designed to enhance Metso’s offerings by integrating its existing slurry-handling, hydrocyclones and mineral processing equipment with Jindex’s specialised valve solutions.

Metso believes the integration will strengthen its ability to provide comprehensive slurry solutions to the mining industry, enhancing productivity and efficiency in mineral processing plants.

Head of Metso’s pumps business line Tiago Oliveira outlined the significance of the acquisition.

“This acquisition is yet another important step in the development of Metso’s pumps business line offering to bring us closer to being our customers’ lifecycle partner of choice,” he said.

“Flow and isolation control play a vital role in ensuring smooth slurry handling to maximise the productivity and efficiency of minerals processing plants.

“In the past, we have collaborated with Jindex on many customer projects and are now glad to welcome the Jindex experts to the Metso team.”

Jindex managing director Stephen Fowler is excited about the acquisition

“This is a great development and an exciting next step,” he said.

“The Jindex product offering and our technical expertise in valves are an excellent addition to Metso’s pumps business and will enable Metso to provide more extensive flow control solutions to the mining industry.

“We look forward to contributing our unique knowledge and experience as part of the Metso team and providing enhanced outcomes to all our collective customers.”

Slurry handling equipment is referred to in the industry as the “heart of a plant”, as it ensures smooth flow of the process. It is vital in maximising the minerals processing plant’s efficiency and productivity.

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Gears – Australian-made manufacturing

KELSIE TIBBEN

Hardman Bros manufacturing

Hardman bros builds strong relationships with like-minded companies such as Eilbeck Heavy Machining. Image: Eilbeck Heavy Machinery

Hardman Bros is expanding its business by collaborating with like-minded Australian manufacturing companies. 

According to the Reserve Bank of Australia, the manufacturing industry contributed 5.7 per cent to Australia’s gross domestic product during the 2023–24 financial year, cementing its place as a significant contributor to the country’s economy. By manufacturing products and goods in locally, more jobs will be created to further fuel the economy and keep industries performing optimally.

A company that understands this is Hardman Bros, a renowned supplier of gears and gear boxes suited to several Australian industries, with mining key among them.

“The Hardman group of companies is a distinguished Australian-owned enterprise that stands as a premier provider of precision machining and gear-cutting services for leading original equipment manufacturers,” Hardman Bros Group of Companies chief executive officer Simon Bell told Australian Mining.

“Boasting a rich legacy spanning over 70 years since its inception in 1953 by the visionary brothers David and Ronald Hardman, the company now thrives in its third generation of operation.”

Alongside its wide range of gears and gear boxes, Hardman Bros specialises in numerous manufacturing capabilities, including gear manufacturing, computer numerical control (CNC) machining, and general engineering.

“In a strategic collaboration, Hardman Bros and R&I Instrument & Gear have united to amplify the scope and excellence of customer services, extending our expertise from precision gear cutting to CNC machining and general engineering,” Bell said.

Hardman Bros can gear cut up to 1.5m and gear grind up to 850mm in diameter. The company can also carry out CNC simultaneous five-axis milling and CNC machining, with CNC lathes up to 1.15m in height and 950mm in diameter.

“We possess the capability to fulfil any additional needs for machining, fabricating, and industrial mechanical assembly,” Bell said. “We are also specialists in general engineering techniques such as turning, milling, grinding, honing, slotting and keyseating. We do it all.”

Hardman Bros has significantly grown since its early days and now operates with an extensive capacity, boasting over 140 machines.

The company has a robust capital expenditure plan that will see new machines introduced over the next five years, increasing capacity and capability to ensure Hardman Bros remains at the forefront of the industry.

“Hardman Bros has built a strong reputation through the dedication and expertise of its skilled personnel,” Bell said. “The company consistently reinvests in quality plant and equipment, ensuring that our manufacturing capabilities remain at the forefront of industry standards.”

Hardman Bros also credits its growth to building strong relationships with other like-minded companies, such as Eilbeck Heavy Machining.

With an Australia-wide presence, Eilbeck Heavy Machining is a fourth-generation family-owned manufacturing and engineering company that specialises in CNC machining, gear cutting, fabrication, painting, refurbishment and reverse engineering, assembly and turn-key solutions.

Eilbeck has a gearing capacity of 500mm to 5000mm. Hardman Bros recognised the strength of Eilbeck Heavy Machining’s offerings and reached out to work with the company in February.

“Hardman Bros and Eilbeck Heavy Machining share parallel visions as to what they want to do and achieve within the Australian manufacturing space,” Eilbeck Heavy Machining head Charlie Eilbeck told Australian Mining.

“Both companies sell Australian-made products for a wide range of industries and possess similar capabilities and turn-key solutions.”

While the companies share many similarities, they also complete each other’s knowledge and skill gaps.

“Hardman Bros has some capabilities that we don’t have, and vice versa, so by collaborating we can fulfil the needs of larger projects together,” Eilbeck said.

Both companies also believe in adopting a modernised, high-end approach to manufacturing.

“Hardman Bros’ main objective is to expand our high-value offering to like-minded partners and developing growth for the industry as a whole,” Bell said.

“The company is investing heavily in new equipment geared towards expanding capability, quality and speed to market. This is opening new doors across the mining, rail and energy sectors, where we can use our scale to penetrate and build our presence.”

This feature appeared in the July 2024 issue of Australian Mining.

Kinder Australia: Settling the dust for cleaner operations

WILLIAM ARNOTT

Image: Kinder Australia

Kinder Australia offers the option for customised solutions as well as its DustScrape range to settle the dust for cleaner operations.

In enclosed transfer points, the accumulation of pressure can result in the build-up of dust.

This dust is problematic for conveyor componentry function, operational site cleanliness, as well as environmental and personnel health and safety.

Kinder Australia’s DustScrape has been developed by engineers to effectively resolve and mitigate dust formation, transforming the way industries handle dust-related challenges.

DustScrape does this by incorporating a specialised filter cloth. This cloth captures fine dust particles produced during bulk material transfers.

Its intelligent design allows for air permeability, accommodating the resulting overpressure. By reducing the pressure while containing the dust, DustScrape facilitates the settling of bulk material, ensuring a cleaner and more efficient conveyor system.

Key features and benefits:

1. Quality stainless steel: DustScrape is available in a stainless steel option, ensuring durability and resilience in various environmental conditions and material applications.

2. Installation simplicity: Operators can integrate DustScrape into their existing conveyor systems.

3. Versatility in application: DustScrape is adaptable to conveyor belt widths of varying belt widths.

4. Maintenance free: DustScrape operates without direct contact and requires minimal maintenance.

5. Self-cleaning efficiency: The unique self-cleaning feature of DustScrape enhances its overall effectiveness and longevity.

6. Reduces Dust Up-Drift: DustScrape actively suppresses dust up-drift, for an efficient and reliable containment.

7. Compatibility with Extraction Systems: DustScrape may work together with dust extraction systems if required.

8. Synergy with AirScrape: When paired with AirScrape, the patented sidewall seal (not included) forms an exceptionally effective system that combats dust generation.

Get in touch with Kinder’s field application specialists and engineers to discuss how DustScrape can benefit an operation at conveyorsolutions@kinder.com.au or 03 8587 9111.

New Victorian sand quarry approval keeps sector ‘booming’

ADAM DAUNT

A new sand quarry has been approved in Melbourne. Image: Anoo/stock.adobe.com

The approval for a new sand quarry in Lang Lang has been hailed as a significant step for the Victorian quarrying sector.  

Lang Lang Sands, part of the Aurora Construction Materials Group which produces higher quality concrete.  

The site is estimated to have reserves of more than 13 million tonnes of sand and will directly create 30 jobs. 

“Bringing high quality sand to market will deliver important benefits to our infrastructure builds and is crucial to keep prices for construction materials down,” Resources and Energy Minister Lily D’Ambrosio said. 

The materials from the Lang Lang quarry are expected to help projects in Victoria’s Big Build and residential construction projects. Quarry materials are crucial to new housing, infrastructure and renewable energy projects. 

It follows several quarry approvals within Victoria, which began in 2023, as a result of the Resources Victoria Approvals Coordination (RVAC). The RVAC helped the Lang Lang site gain planning permission through the Victorian Government’s Development Facilitation Program.  

“We’re making sure Victoria’s booming quarry sector can keep delivering the raw materials needed to build the projects we need – from affordable housing to new hospitals and renewable energy projects,” D’Ambrosio said. 

Alcoa looking strong for year ahead

ALEXANDRA EASTWOOD

Alcoa

Alcoa’s Portland aluminium smelter in Victoria. Image: Alcoa

Closing its acquisition of Alumina Limited in August will be a key metric for Alcoa as it looks to finish off the remaining half of 2024.

The Australian Foreign Investment board approved Aloca’s acquisition of Alumina Limited (ASX: AWC) on June 13. The major is expecting the transaction to be completed on August 1, subject to shareholder approval.

Other highlights from the quarter included a net income of $5–$25 million, an increase driver by the non-recurrence of a charge of $197 million recorded in the first quarter of the year.

Alcoa’s cash balance is expected to approximately $1.4 billion at June 30, a number consistent with the prior quarter.

While Alcoa experienced a five per cent decrease in alumina production and shipments, Alcoa president and chief executive officer William Oplinger is remaining optimistic.

“We had strong preliminary results for the second quarter of 2024 which reflect market improvements,” Oplinger said. “We are looking forward to closing the acquisition of Alumina Limited on or about August 1, 2024.”

Revenue is also expected to increase for the second quarter, ranging from $2.8–$2.9 million. Alcoa is attributing this increase to higher average realised third-party prices for alumina and aluminium.

The increases follow Alcoa’s strong first quarter results, when the company produced 542,000 tonnes of aluminium, in line with its strong results from the fourth quarter of 2023.

“In the first quarter of 2024, we finalised the terms of our acquisition of Alumina Limited, which will bring strategic, operational, and financial flexibility,” Oplinger said at the time.

“Raw material prices and markets are improving, and we are implementing near-term improvements to further strengthen Alcoa for the future.”

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What suspending BHP’s WA nickel operations means for the industry

OLIVIA THOMSON

The Australian Government’s Resources and Energy Quarterly: September 2022 underlined the central role critical minerals will play in the future.

The Mount Keith operation is part of BHP’s Nickel West business. Image: BHP.

BHP has decided to temporarily suspend its Nickel West operations and the West Musgrave project in Western Australia amid the global nickel downturn.

What does the suspension mean for the Australian nickel industry? Australian Mining investigates.

Operations will be suspended in October and handover activities for the temporary suspension will be completed by December.

The transition period has commenced and will see BHP suspend mining and processing operations at the Kwinana nickel refinery, Kalgoorlie nickel smelter and Mount Keith and Leinster operations, as well as suspend development of the West Musgrave project.

The company will also implement a care and maintenance program of work to ensure the ongoing safety and integrity of its mines and related infrastructure. BHP will also continue investing in exploration to extend the resource life of Western Australia Nickel to preserve optionality.

“We understand this is a challenging period for the Western Australia Nickel team and surrounding communities,” BHP president Australia Geraldine Slattery said.

“Since BHP announced a review of Western Australia Nickel in February, we have explored options to stem losses in the short-term and identify a viable path forward for the business.

“Like others in the Australian nickel sector, we have not been able to overcome the substantial economic challenges driven by a global oversupply of nickel. We have made the difficult but necessary decision to temporarily suspend the Nickel West operation and West Musgrave project.”

As a result, 1600 Western Australian Nickel frontline employees will be redeployed or offered redundancies.

BHP has pledged to support its workforce and local communities during the suspension. The company will establish a $20 million community fund to support local communities and will invest around $450 million per annum once the transition period to support a potential restart of Western Australia Nickel is completed.

“Western Australia remains an important investment destination for BHP globally, with investment in the state expected to be greater than $12 billion over the next five years and we will continue to work with all of our Western Australian partners to advance the economic prosperity of the state,” Slattery said.

BHP intends to review the decision to temporarily suspend its Western Australia Nickel business by February 2027.

The Nichel West operations suspension follows BHP pausing part of its Kambalda processing operations, which took effect from June. At the time, the major miner was also weighing putting its Nickel West operations into care and maintenance.

The review resulted in BHP making about a quarter of its West Musgrave workforce redundant and decreasing the number of contractors who were working at its Kalgoorlie nickel smelter.

Government response

In January, Federal Resources Minister Madeleine King and WA Mines Minister David Michael met with nickel producers to discuss ways they could support the industry during the downturn.

Following the roundtable, King and Michael said they would work together to accelerate discussions on incentivising investment while urgently progressing discussions with State and Territory Governments on common user infrastructure for critical minerals.

A month later, King placed nickel on the critical minerals list, which outlines minerals that are essential to low-emission technology, the economy and national security, and whose supply chains are vulnerable to disruption.

Now, King has described BHP’s decision as a reflection on “the extreme volatility in global nickel markets”.

“Our immediate concern is for the workers and communities impacted,” King said.

“We welcome the commitments made by BHP to redeploy workers who wish to continue to work for the company and we welcome BHP’s undertaking to continue to invest in Nickel West throughout the temporary suspension to enable a re-start when global nickel markets stabilise and improve.

“We also welcome BHP’s commitments to continue to support local supply chains and pay royalties to First Nations communities through the temporary suspension and work with the WA Government to continue to support skills and resource investment in future projects.”

WA Premier Roger Cook echoed similar sentiments.

“This is a disappointing decision and our thoughts are with the thousands of workers and their families affected by the suspension,” Cook said.

“My government will do whatever it takes to support those workers and our regional communities through this difficult time.”

The WA Government previously announced a 50 per cent royalty relief program to kick in if the average price of nickel concentrate dips below $US20,000 per tonne. The rebate is repayable by companies in equal quarterly instalments over the following 24 months.

BHP will now allocate funding towards the WA Government’s proposed $200 million critical minerals advanced processing common user facility, which will be co-funded by the Commonwealth.

The company will also pursue an electricity smelting furnace in Kwinana with its project partners, making its refinery resources and expertise available for critical minerals research in partnership with Curtin University, and will donate $5 million to support apprenticeships under the WA Government’s group training organisation wage subsidy program.

Industry response

Following the nickel roundtable in late January, King and Michael committed to engaging in further discussions with the Chamber of Minerals and Energy WA about the future of the nickel industry and the role of royalties.

CME CEO Rebecca Tomkinson described BHP’s nickel suspension as “responsible”.

“This is a challenging time for our critical minerals sector and we’re committed to working closely with State and Federal Governments to ensure our policy settings remain competitive, enabling the industry’s viability across all time horizons – short, medium and longer-term,” Tomkinson said.

“BHP is a significant employer in WA with strong ties to the local communities of Leinster, Leonora, Kalgoorlie and Kambalda. I know this decision comes after months of operational review and careful consideration of options. It has not been made lightly.

“We are fortunate right now that the WA minerals sector remains vibrant, so workers impacted by this decision are in a good position to secure work elsewhere in resources.”

Tomkinson said the industry cannot become complacent during difficult times.

“We must continue to keep WA mining strong by having a robust and efficient legislative framework in place that fosters future development,” she said.

Possible solutions

BHP has welcomed the proposed production tax credit (PTC) for critical minerals, which will allow eligible entities to claim 10 per cent of expenditure for processing and refining any of Australia’s 31 critical minerals.

The PTC was inspired by a similar US Government scheme introduced through the Inflation Reduction Act, which considered to be the largest climate investment in US history.

The Association of Mining and Exploration Companies (AMEC) engaged Mandala Partners in 2023 to economically model the introduction of an IRA-style PTC into Australia.

In February, AMEC led a delegation of mining and energy companies that included IGO, Wyloo, Australian Vanadium, QEM, Pilbara Minerals, and Tesla to progress discussions surrounding PTC with the Federal Government. Consultation on a potential PTC commenced in June.

Alongside a PTC, Wyloo CEO Luca Giacovazzi has advocated for a ‘green nickel price premium’, which would differentiate between the Australian-produced nickel that follows strong environmental, social and governance (ESG) standards and the low-quality nickel produced in countries such as Indonesia.

Nickel pricing reform also has the support of Minister King and Andrew Forrest.

In January, Henry predicted that the nickel downturn would extend to the end of the decade, adding that nickel is BHP’s smallest business.

“Yes, it’s been one of the three areas of production growth that we’ve called out for BHP … but having said that, it’s always been the smallest … business within the BHP portfolio, and in terms of the growth outlook for the company,” Henry said.

“But there’s 17 million Australians who depend upon BHP, either directly as shareholders, or indirectly through superannuation funds, for a successful and high-performing BHP.

“That creates a real sense of accountability on our part, to ensure that we’re taking the right decision, taking into account a range of considerations, both shareholder and other stakeholders, and we’re in that process as we speak.”

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MinRes executes Indigenous land use agreement for Onslow Iron

OLIVIA THOMSON

MinRes’ transhipper delivering Onslow Iron’s first ore to bulk carrier off the Pilbara coast. Image: MinRes

Mineral Resources (MinRes) has signed an Indigenous land use agreement with Buurabalayji Thalanyji Aboriginal Corporation (BTAC) for the Onslow Iron project in Western Australia.

BTAC is the prescribed body corporate for the Thalanyji People that hold native title over 11,120 square kilometres of land in the west Pilbara, where Onslow Iron is located.

Under the Indigenous land use agreement, MinRes and BTAC will collaborate for the next 30-plus years to create opportunities for the Thalanyji People.

This includes creating employment opportunities for future generations of Thalanyji People, including apprenticeships and traineeships every year at Onslow Iron.

The signage of the agreement follows more than two years of collaboration between MinRes and BTAC.

“This agreement is the start of a positive relationship between the Thalanyji People and MinRes,” BTAC chair Frances Hayes said.

“This agreement will help the Thalanyji community through employment, training and business opportunities with hopes of making Thalanyji People prosperous for decades to come.

“I want to thank MinRes for working alongside BTAC throughout the co-design process to support the vision of a bright future that we have for our people and their children.”

BTAC conducted cultural heritage surveys prior to the construction of Onslow Iron’s dedicated haul road that links the Ken’s Bore mine site to the Port of Ashburton. It will now continue providing monitoring services to ensure cultural heritage protection.

“I am grateful to the Thalanyji people for entrusting MinRes with the responsibility of implementing this agreement,” MinRes managing director Chris Ellison said. “I am excited by the future successes we will share at Onslow Iron.

“As the first agreement of its kind signed by MinRes, this is a proud moment for the company and signifies our ongoing commitment to partner with Traditional Owners on whose land we operate.”

Onslow Iron is one of the largest iron ore projects currently being developed in Australia, with a forecasted annual capacity of 35 million tonnes and a mine life of more than 30 years.

The project is being developed by MinRes and its Red Hill Iron joint venture (RHIJV) partners China Baowu Steel Group, AMCI and POSCO. MinRes designed, constructed and operates Onslow Iron, with the project delivering its first iron ore shipment in May. 

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