Sandvik divest mining materials handling division

Sandvik has announced it will divest its Mining Systems division to private equity firm CoBe Capital.

The group first announced its intention to divest the business late last year.

“Divesting the Mining Systems is an important step in consolidating Sandvik to its core operations, which for Sandvik Mining and Rock Technology is high technology mining equipment and aftermarket offerings,” Björn Rosengren, Sandvik’s CEO, said.

According to a Sandvik spokesperson the only Australian operations to be affected is the Bayswater facility, in Perth, which produces conveyor pulleys, rollers, and frames for mining.

The sale valuation has not been disclosed, however it is understood Sandvik will incur a capital loss of 800 million Krona ($123 million) in the third quarter of 2016.

This loss includes a negative cash flow position of 600 million Krona ($92.5 million) from the removal of the division.

The Mining Systems division designs, engineers, and supplies materials handling systems or the resources industry, and employed 1100 workers globally, and had sales of 5 billion Krona ($771 million), accounting for six per cent of Sandvik’s revenues.

Bids begin for Glencore coal rail assets

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Initial bids for Glencore’s Hunter Valley rolling stock and haulage assets are rolling in.

Three major logistics companies – Aurizon, Pacific National, and Genesee Wyoming – are understood to have begun placing bids for the assets earlier this week, according to the AFR.

While a price is yet to be fixed for the sale, it is believed the assets – generated approximately $100 million EBITDA last year, and over the last few years has had revenues around $160 million annually – are valued in the one billion dollar range.

Glencore’s asset sale is part of the miner’s wider plan to pay down billions in debt.

According to the miner, the potential sale of the assets (GRail) “is in response to a strong global demand for high quality infrastructure assets and forms part of Glencore’s wider global debt reduction program”.

Glencore initially set up GRail in 2010 in response to what it believed were high levels of access and cost from existing coal haulage operators in the Hunter Valley.

Since that time it has reportedly grown to become the third largest coal haulage business in Australia, hauling around 51 million tonnes last year.

According to a source close to the matter, Glencore’s coal will likely be hauled by the new owner of the rail assets, although it is understood the details of the coal movement will be discussed in the new agreements.

While the locomotives, wagons, and support equipment are understood to be part of the potential deal, Glencore’s refuelling stations – located on its mines – will not be part of the sale.

China continues coal crackdown

China’s ongoing five year plan to cut coal and steel production and address pollution will see it punish regional governments for failing to close coal mines and steel mills.

Earlier this year China announced its intention to institute a reduction in thermal coal consumption within the next five years in order to cut pollution levels, with the National People’s Congress (NPC) outlining plans to reduce thermal coal consumption by 160 million tonne.

China’s ongoing pollution and smog issues were the main focus of the NPC, with Chinese president Xi Jinping stating that the government will be increasing focus on the nation’s environmental standards and regulations.

“We are going to punish, with an iron hand, any violators who destroy ecology or the environment,” Xi stated at the time.

As part of this plan the country also announced it would lay-off close to two million workers in its coal and steel industry to help cut market oversupply.

An official at China’s human resources and social security ministry said the nation’s industries expect to cut around 1.8 million workers as it seeks to reduce capacity, and address the growing stockpiles in the country.

Provincial governments have been ordered to set capacity reduction targets this week, and submit phase-out plans by the end of this month, chair of the National Development and Reform Commission Xu Shaoshi said, according to Bloomberg.

Those that miss their targets will be “seriously punished,” Xu said.

The country is also predicted to ban new coal fired power stations, according to the AFR.

In its upcoming 13th Five Year Plan for the resources sector, China is forecast to ‘suspend’ construction of any new thermal coal power plants until 2018, after which the suspension will be reviewed, however it is unlikely to be lifted.

However the growing power demand is unlikely to be filled by renewable resources, with the Economic Information Daily stating there will a slowdown in wind and photovoltaic solar power support; instead the country will focus on hydropower and nuclear energy, stating their will be a moderate increase in the scale of operations.

Making mine mapping easier

As more mining become automated, surveyors are taking to the skies to make more out of machinery.

The rise of drone technology has seen miners, and surveyors in particular, utilise the technology to map out their mines in a faster, safer manner.

Both BHP and Rio Tinto have integrated drones on to their sites.

The Goonyella coal mine has used them for around a year to better understand their mine’s progress and monitor safety compliance.

In the past year Rio Tinto has planned and tested the use of drones for environmental and heritage surveys, inspections of equipment such as conveyors, pit wall inspections, gathering aerial imagery, thermal imaging, and geotechnical inspections.

Technology and Innovation Executive Greg Lilleyman said the company saw immense potential for drones to help extend the advantage Rio Tinto holds through the innovative use of technology, which can help to improve the safety and productivity of their operations.

An Australian partnership has been formed aimed at taking this mapping technology to the next level.

West Australian drone manufacturer ScientificAerospace has partnered with South Australian mapping company Dronemetrex to develop a new drone specially designed to aid surveyors.

Dubbed the TopoDrone-4Scight combines a number of technologies ScientificAerospace chairman Richard Pace said will make the drone a market leader for the survey industry.

The vertical take-off and landing drone uses ducted, which creates a more stable drone housed in 3D printed nylon that is safe to use around people because it has no exposed blades. It can also be used in spark free safety conscious applications, due to its non-conductive airframe and brushless motors.

It uses photogrammetric mapping technology developed by DroneMetrex, enabling accurate mapping without the need for a surveyor to establish data points.

The multi rotor accurate mapping drone is affordable and easy to use without complicated setup, and requires minimal training is easy to transport and can be used safely in urban areas.

Its on-board PPK Direct Georeferencing Solution software developed by Dronemetrex provides mapping with no ground control providing accurate mapping, reduced processing time and quality photogrammetric mapping, comparable to the best in the world.

“By combining our software and mapping expertise to Scientific Aerospace’s drone technology, we’ve created something that is unique, enabling accurate photogrammetric mapping to be far easier to access and far more affordable” Pace said.

A manufacturing plant is to be set up in Perth to supply the world with expected sales of $20 million in the first year.

Breaking down Big Data

Breaking down Big Data

The premises, processes and personnel of Xstrata Copper's Mount Isa Mine, Western Queensland, Australia

Mining is an industry that runs the technological divide.

Whilst it is leading the way in terms of remote operations and automated systems that allow a miner to operate a mining truck from thousands of kilometres away, at the other end of the scale enormous processing and metallurgical operations are monitored, controlled, and planned using Excel sheets despite the fact that mountains of precise technical data is already being collected.

With the rise of Big Data, and the ability to monitor – often in real time – flow data from tanks and pipes, as well as metal and acid content, and compare it with historical data engineers are often overwhelmed with information.

Nearly every aspect of the mining industry, from minute processes through to massive haul truck payloads and warehousing and maintenance activities are now measured, tracked, and stored, and these machines and data sets can now compare and create a predictive picture for future production in a way the industry never could before.

“We see a significant number of mines that have data locked away in individual systems but now want to federate that data together, instigate new processes, involving their people in new ways to achieve better outcomes. Mining generates Big Data because the number of sensors are growing rapidly and systems involved are becoming more intelligent, so the challenge ahead is to federate that data,” Cisco Systems engineer Michael Boland said.

Rio Tinto has embraced this innovation path, and opened its ‘Big Data’, Analytics Excellence Centre early last year to help it deal with these reams of data from disparate sources.

Put simply, the humble –and easily amendable with no tracking oversight – Excel sheet will no longer cut it in the current environment.

This need for a greater data control, oversight, and comprehension is compounded by the recent changes to the ASX governance rules. Publically listed companies will now need to disclose their exposure to economic, environmental and social sustainability risks for the first time. This means miners need to present accurate, relevant corporate data, e.g. their operating data and compliance frameworks, to a level that was previously not required.

With this growing need to utilise the full capabilities of Big Data analytics to comply with ASX rules and lift efficiency, combined with clarity of data – as well as the capability for preventative maintenance – Metallurgical Systems has developed a program designed to tick these boxes, and which has already been roadtested at a number of copper and polymetallic operations globally.

The program, Metallurgical Intelligence, is a whole-of-plant management software that utilises thousands of data points to provide clean, accurate data, combined with automated intuitive reporting that integrates with existing systems, software, and processes, and can be tailored to individual sites.

Speaking to Metallurgical Systems managing director, John Vagenas, he explained the program was developed as there was a gap in the industry, and many mines were missing an opportunity to evolve their operations through the use of Big Data analytics.

The need for this system is being even more prevalent as the higher level engineers get closer to retirement age, and take not only their skills but also their knowledge of plant operations and what are often proprietary data systems with them, leaving a large knowledge gap.

Metallurgical Systems began life as an offshoot of Elemental Engineering, a process simulation and process development company focused on mineral and metallurgical processing. Elemental is already well known for its work on OZ Minerals’ hydromet demonstration processing plant.It parlayed this knowledge from Elemental to spin out the new company focused on its plant information system, Metallurgical Intelligence.

Using Tableau, Metallurgical Systems has allowed for data integration and drill down capabilities for engineers, operators, managers, and stakeholders in a user friendly environment, providing a total overview of every aspect of plant operations without the need for lengthy training programs or a background in IT.

amjuly16soft3“Once the system has enough information gathered from all the monitoring devices throughout the process, it can run a dynamic simulation of the entire process system down to individual tank level, building it from each node – and keep in mind that a plant may have 2000 to 3000 nodes,” Vagenas told Australian Mining. “This is a system that can examine and monitor information minute by minute, and be used to conduct detailed investigations and resolve issues.”

The program can also combine this information with data gathered from historical sources and the lab to calculate plant chemistry and throughput, and combine this with data collected from the mining process, as well as power generation and distribution data, to give a never before seen level of interconnectedness and oversight over an operation.

“This program can query any places that data is being stored, gather it together, filter it for quality and then organise it in a common structure where you can use it effectively,” Vagenas said.

The ability to get right down to an almost ridiculously granular level makes the program a stand out.

“This program can break down how different parts of the plant are performing, across any given shift or across a period of time, and how inventory is changing through the site,” he said.

It also performs rapid calculations

“It validates what’s in the refinery at any given time, down to the equivalent item level, and what’s in each tank,” Vagenas said, “it helps you understand what’s in your plant, what’s changing, and how it is changing.”

“You can get the details on how much acid is being consumed by each element, and how much material is leaching is in each tank, and the tank profiles.”

With this understanding, greater efficiencies in ore blending, use of consumables, and power usage can be gained. This data can then easily be shared amongst the company.

Vagenas gave the example of how it can delineate information, using one client’s experience on how it collects and presents data in a meaningful and accessible way.

This major miner powered its plant using a number of different electricity suppliers; it used the program to figure out the percentage each supplier provided per hour, and the costs, and then used this information to renegotiate contracts.

The program also allows for operating prediction, as it can overlay information which can then be used to compare relationships between aspects such as throughput, plant chemistry, acid usage, and recovery over certain periods of time or different shifts, and the use that data to predict future performance.

It can also be used for maintenance purposes. As it allows for a drill down to individual instruments and sensors, the program can be used to see which sensors are gathering data and where they reside in the plant, and if not those individual nodes can be investigated to find out why.

This system is also explicitly transparent, Vagenas said, as it uses individual log-ins and tracking to show what changes were made, and who made them.

It brings companies up to par in terms of the new ASX changes by making them compliant with the new codes, and makes their data easily externally auditable, and allows the company full access to their own data to make better, more incisive business decision.

Vagenas demonstrated its ease of use, highlighting its simple drag and drop system, stating that by using the Tableau interface for reporting it makes the process a lot more intuitive, and helps cuts tasks that previously took hours down to minutes.

He added that Metallurgical Systems is also adding new user interfaces to the program in November, as “we think we can make this even better”.

“This program is breaking down Big Data, and letting engineers get back to their job of analysing information and actually running the plant.”

SA state budget released: major focus on resource sector

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The South Australian Chamber of Mines and Energy (SACOME) has welcomed the South Australian state budget’s major priority on the resources sector.

Treasurer and mines minister Tom Koutsantonis reiterated the importance of the resources sector in SA as the 2014/15 figures showed the minerals and petroleum sector contributed $6.38 billion to the state.

SACOME chief executive Jason Kuchel said, “It is important to remember the value of our resources sector and what it does for not only our cities, but the regional hubs of our state. Regional towns near mining operations rely on those projects to stimulate life into their economies.”

SACOME welcomed the government’s decision to pay the co-produced levy on water to the state’s Arid Lands Board without seeking remuneration of the contribution from the resources sector.

“Our position is that this levy should be abolished all together, as it is water that would not ordinarily be used by other industries or private users, and no other jurisdiction globally charges for co-produced water,” Kuchel said.

Before the budget announcement, $50 million had also been promised to Whyalla Steelworks over two years for technologies or upgrades.

“These steps are critical for the regional economy and employment in the town. Thousands of people will, and already are, affected by this, so it is good to see the state government being proactive,” Kuchel added.

The budget allocated $3.6 million to collaborate with the community and develop an informed response to the Final Report of the Nuclear Fuel Cycle Royal Commission.

A further $500,000 was given for a detailed assessment of the increased electricity connections between South Australia and the National Electricity Market (NEM) which Kuchel said was “critical to ensuring security and reliability of supply to businesses in SA”.

SACOME was also provided $400,000 over two years for the employment of an industry connections manager – to enable a closer relationship between industry and service providers; sponsorship of the South Australian Mines Emergency Response Competition; a safety summit to be conducted in 2016/17; and for the ongoing creation of an annual innovation summit to take place on September 23, 2016.

Other initiatives provided by the state budget include extending the tax rebate on small business payroll for four more years; the implementation of a Magnetite Strategy which aims to identify initiatives to increase the economic benefits of SA’s magnetite deposits; and amendments to be considered for the Petroleum and Geothermal Energy Act.

In other states, the NSW budget saw a drop in coal royalties’ contribution, due to weak coal prices and slow growth in exports; this came after the QLD budget committed not to increase royalties yet neglected supporting initiatives for exploration.

澳洲政府预测铁矿石价格

Australian Government predicts lower iron ore prices

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The Australian Government has revised its initial 2016 budget forecasts for iron ore, dropping them by a fifth as market volatility continues.

Iron ore has seen a major rally over the last six months, rising from below US$40 per tonne to reach just over US$70 per tonne in April, before sinking to more stable levels of around US$55 per tonne.

In March, prior to the rallies, the Australian Government forecast iron ore prices of US$55 per tonne, a massive increase from its former US$39 per tonne price point.

However continued volatile prices, off the back of the Brexit concerns, have forced a reforecast.

Now the Federal Department of Industry, Innovation, and Science’s latest Resources & Energy Quarterlyreport has dramatically slashed the Treasury’s initial predictions.

It  predicts a price point of US$44.80 per tonne, down nearly 20 per cent from earlier Treasury forecasts.

io pricesThe Department also predicted a similar price point for the rest of this year, at around US$44.20 per tonne, down from its earlier estimates of US$45.

“The revision is based on the assumption that loss-making operations may continue to produce for longer than previously expected,” the Department of Industry, Innovation and Science report said.

“It also factors in increased supply from India and additional cost savings reported by iron ore producers.

“Despite the large movements in prices, the market fundamentals are broadly unchanged — demand growth is slow and the market remains well-supplied.”

In terms of 2017 iron ore movements, the report stated “prices are expected to recover more slowly than previously forecast”.

Market analysts have also become more bearish on iron ore.

Analysts at Morgan Stanley believe a steep decline is still on the cards for the metal after releasing its latest forecasts, although it is still an increase from its original lower price point prediction.

According to Bloomberg, the group has lifted its 2016 forecast to US$46 per tonne, and its 2017 outlook to US$42 per tonne – an increase of 13 per cent from previous estimates – however it has forecast a price of US$35 per tonne for the last three months of the year, expecting additional tonnages coming online from Roy Hill and Vale to drive down value

Miners need to focus on balance sheets to survive, EY says

Mining companies need to focus on strengthening their balance sheets and generating cash if they are to survive current market instability, EY states in its latest report.

In its latest report, Navigating Volatility: Do you change your business or the way your business works, EY predicts the current period of market instability to remain for some time, stating “the longer-term economic outlook is volatile, leading to the possibility of substantial revisions to long-term metal price forecasts and making it hard for mining and metals companies to plan for the future”.

The study lists six key areas resources companies can focus upon to manage this current period of instability, mainly cost reduction; working capital; productivity; capital effectiveness; portfolio strategy; and financing.

Commenting on the report, EY Global Mining & Metals advisory leader Paul Mitchell stated, “Volatility will be a challenge for the mining and metals sector for the foreseeable future and BREXIT has brought additional uncertainty to this, with questions on how it may impact an already slow growth global economy. Locally, the Australian Federal election has potentially provided further uncertainty.”

“Our analysis is clear that mining companies need a different mindset in this environment if they want to maintain a strong balance sheet and develop plans for long-term profitability,” Mitchell said.

“Too many companies have viewed cost reduction measures and productivity initiatives as a once-off, when what they need to be doing is embedding continuous improvement in their DNA.”

He called on miners to reconfigure the way they approach their existing productivity, and turn to other industries to learn from their innovations.

This was echoed by Dassault Systemes Asia Pacific South region leader for Natural Resources business transformation, Adrian Hale.

“By looking to other industries, the mining industry can incorporate new applications into existing technology for improved productivity. More advanced simulation and 3D technology, as well as big data and the interoperability of systems, must be used at each stage of the mining cycle to improve productivity and output levels. Bold moves are needed to propel the industry forward,” he said.

“To understand where mining can look for innovation, it is useful to examine what has led to successful transformations in other industries; take, for example, Toyota – it became the world’s largest and most successful producer of automobiles by becoming an agile business – one that rapidly adjusts itself in light of changing demand and economic conditions.”

For a long time industry heads have said mining could learn more about productivity and efficiency by studying the manufacturing industry.

Unsurprisingly, BHP chairman Jac Nasser – a former president of automotive manufacturer Ford – advocates mining study the manufacturing industry for efficiency measures.

“Although there are as many differences between the automotive and mining sectors as there are similarities, forward thinking mining can likely make unanticipated productivity gains by taking lessons from this example – including reforming industrial relations, co-opting suppliers into the cost equation in an effort to extract efficiency, and shifting from traditional command-and-control hierarchies into a world of matrix or networked structures where human ingenuity is not overly hampered by rigid processes,” Deloitte said.

Even Rio Tinto’s former head of technology and innovation Greg Lilleyman said, “There may well be technologies from manufacturing, food processing, oil and gas or aerospace which are ripe for application [in the mining industry].”

Mitchell went on to say miners have remiss in not using these other industries as an example for improving their own productivity.

“Mining companies have generally been too slow to consider how they can apply best practice processes from other sectors. Consumer products companies have historically had lower margins so capital and cost efficiency has always been a focus – there are examples of some companies who have embedded process improvements that have enabled year-on-year savings of US$1.2b over the past three years,” he said.

“Miners can no longer rely on conventional wisdom and expertise from within the sector; they must cast the net wider and seek outsiders’ experience to get that next productivity and efficiency boost.”

The EY report also states the existing supply chain is ripe for innovation, and an area where both cost and productivity gains can be made.

The NIEIR’s executive director, Dr Peter Brain, has previously told Australian Mining of the importance of supply chain control, and the repositioning of this segment of the sector.

“What the leaders will do is invest heavily in new technology to integrate the front, middle and back office; much more remote control from remote operations, and looking across the entire supply chain, integrating not just simply pit-to-port, but pit-to-customer.”

Mitchell added that the current implementation of Big Data across the industry will also drive change.

Simulation equipment to train truckless system operators

 

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Vale’s S11D iron ore project in Canaã dos Carajás, Pará, Brazil is a truckless mine due to start production this year. S11D will be one of the biggest mines in the world and this new production method requires an advanced solution for operator training. Immersive will provide high-tech simulators for mining equipment and customized virtual training environments for loading machine operators, enabling the incorporation of new procedures to ensure a safe and productive operation.

So, unlike traditional mines, S11D will be a truckless operation that will use Immersive Technologies simulators to train operators in a more productive and safely way in a unique environment.

“This simulation tool is extremely powerful, because besides empowering people in the equipment operation with high performance and low cost, it also provides training in situations of high risk of accident which would be inadvisable in a real operation,” said José Carlos Ramos – Mining Operations Specialist, Vale Ferrous.

The truckless system represents a significant change in the role and expertise of the loading equipment operators. This required a custom Immersive Technologies training solution, the company reports. “In conventional mining operations, the trucks are positioned carefully to suit the loading equipment, but when operating with mobile crushers it requires auxiliary equipment to move the crushers, which remain static during the loading operation. Through advanced training methods using the latest technology simulators, operators will be prepared for the new challenges of productivity and safety.”

“Truckless mining is definitely something the industry is paying attention to and just like any new method the training element is a large consideration of the deployment. We’ve worked closely with customers and the leading OEM’s for 20+ years building our capability to be in a position to deliver the best solutions. This is a unique development and we are pleased to partner with VALE to prepare the safest and most productive operators at S11D,” says César Guerra, Regional Vice President – Latin America, Immersive Technologies.

With customized scenarios, simulators used by Vale facilitate the development and implementation of correct procedures for truckless system excavators loading, adequate positioning and effective management, where through the capture and data analysis it will be possible to develop and optimize new operator skills and competence.

PEPPERTREE QUARRY A ‘GENERATIONAL INVESTMENT’

Eight storage silos for the base materials are fed by a complex 3D maze of conveyors from multiple crushing and screening plants.

Eight storage silos for the base materials are fed by a complex 3D maze of conveyors from multiple crushing and screening plants.

PEPPERTREE QUARRY A ‘GENERATIONAL INVESTMENT’

In 2014 Boral commissioned an advanced processing plant for Peppertree Quarry, south of Sydney. This facility – featuring crushers, screens, conveyors and processing systems – has set new benchmarks in environmental management, safety, production and quality.

As you approach Boral’s Peppertree Quarry, a two-hour drive from Sydney, it’s immediately obvious this is no ordinary quarry operation.

There are no stockpiles of different products, no loaders and dump trucks moving material around, no lines of tip trucks collecting material for delivery to building and construction sites back in Sydney – and very little noise.

Instead, eight gleaming stainless steel towers soar into the sky – storage silos for the base materials that combine to make up the numerous different product mixes the site can produce.

These silos are fed by a complex 3D maze of conveyors from the multiple crushing and screening plants housed in an array of structures – which in turn are fed from a single, massive stockpile bringing in the raw crushed material from the quarry pit itself.

The quarry’s entire output leaves the site by train – four trainloads a day, every day – with multiple product mixes in every trainload. Not a single kilogram of product leaves the site by road.

And yet a single person can control this entire processing operation.

The whole site has just 30 people running it across a 24/7 operation; compare this with equivalent output conventional quarry operations, which typically require more personnel than that, along with multiple items of mobile equipment.

‘Generational investment’

So what was behind Boral’s decision to go far beyond anything that had been done in Australia previously and build a world’s best practice operation?

A unique combination of history, geography, geology and environment – along with some equally unique challenges – has resulted in the company’s new Peppertree processing plant.

David Bolton, Boral Construction Materials’ general manager of quarries for New South Wales and the Australian Capital Territory, said for many years the company had known it would need to replace its Penrith Lakes Scheme quarry, on the western outskirts of Sydney.

“Penrith Lakes supplied Sydney with construction materials for over 100 years but was exhausted by 2015,” he said.

Quarrying at Penrith Lakes officially ceased in July 2016 after almost 130 years of extraction.

Boral needed a replacement quarry close enough to Sydney to economically transport product to the metropolitan region and to the demanding standards of its customers – from homeowners, small tradespeople and builders to multinational civil and building contractors and their clients.

While 30 personnel run the whole site, a single person can control the entire processing operation.

While 30 personnel run the whole site, a single person can control the entire processing operation.

“We identified a large deposit of granodiorite adjacent to our existing limestone quarry near Marulan, south of Sydney,” Bolton said.

Granodiorite is a very hard and durable rock, making it ideal for concrete and asphalt applications.

“Our Peppertree Quarry is a generational investment, and will secure Boral and the Sydney construction materials market for many, many years to come,” Bolton said.

“We were granted consent to extract and process 3.5 million tonnes a year. This consent is for an initial period of 30 years, but the resource at Peppertree will last significantly longer than that.”

One issue Boral faced in the move from Penrith Lakes to Peppertree was the fact the new site had no sand resources.

Accordingly, the company decided to develop its own manufactured sand products, combining granodiorite from the new Peppertree Quarry mixed with product from its adjacent limestone quarry.

In fact, 40 per cent of the output from Peppertree is manufactured sand – and it has proven to be a product of such outstanding characteristics that demand for it is growing.

Transport by rail

Bolton said another major challenge for Boral was getting its product to Australia’s largest city, almost 200km away. The quarry’s target output would have meant a steady stream of trucks travelling up and down the Hume Highway, and into an already very congested city road network.

“The need to ensure that all aggregates were railed from the site rather than truck presented a number of challenges to Boral and to Sandvik in developing the systems and infrastructure to accommodate such large volumes of diverse products by rail,” he said. “The rail loading infrastructure that was developed by Boral and Sandvik for this project, I believe, is one of a kind in this industry.

“It combines the ability to load multiple products, doing this at high capacity, similar to large scale mining operations.

“However, in large scale mining operations you are dealing with just a single product that’s going onto a train, whereas the system we have developed in conjunction with Sandvik allows us to deal with multiple products at very high rates, thus maximising our rail utilisation.”

To maximise the plant’s efficiency and productivity, minimise ongoing operating costs and ensure a high degreeof flexibility to meet changing market demands well into the future, Boral adapted the principles of “lean manufacturing” at its Peppertree operations.

The exterior of one of the crushing stations at Peppertree Quarry.

The exterior of one of the crushing stations at Peppertree Quarry.
Boral project manager Kai Kane (left) with Sandvik Construction’s Glenn Cooper.

Boral project manager Kai Kane (left) with Sandvik Construction’s Glenn Cooper.

“The entire design of Peppertree incorporates a number of lean manufacturing initiatives to reduce material transport requirements and material movements, as well as excess stocks of materials on-site,” Bolton said. “Products from Peppertree and the way that these products were delivered to our markets drove us to design a plant based on what our customers truly valued.“From these customer requirements, the original project specification was developed, and Sandvik and Boral then designed and built the plant and equipment to meet those needs.”

Fully integrated plant

From the earliest specification and design stage, Boral worked closely with Sandvik Construction to develop a fully integrated processing plant that met the highest standards of production reliability, product quality and safety.

Once the raw quarried material leaves the pit, Sandvik-supplied conveyors, crushers, screens, air classifiers and surge bins, along with sophisticated control and quality monitoring systems, manage every aspect of production until the final product is loaded onto the train.

A key element of this process has been to ensure products out of Peppertree meet specifications, and achieve market acceptance.

According to Peppertree Quarry manager Angus Shedden, the quality of Peppertree products has exceeded all expectations.

“The feedback from our customers has been exceptional, far better than we expected,” he said. “Our secondary crushers, the Sandvik cone crushers, are really delivering fantastic shape.”

Shedden said this shape straight off the cone crushers was of such high quality the operation had been able to reduce the feed going through its quaternary vertical shaft impactor (VSI) crushers.

“We are also getting excellent consistency of our aggregate,” he said. “We are able to produce the same product consistently, first time, all the time. The biggest success here, from my point of view, has been the quality of the aggregates. The quality has just been exceptional.

“Since production out of Peppertree started, we have supplied a number of high profile infrastructure projects in Sydney – including Barangaroo – with customers very happy with the high quality aggregates that we are producing.”

Shedden is proud of the high degree of automation at Peppertree, and the benefits it has in terms of safety and efficiency.

“Because of the automation in the plant, not only can we operate the plant with one person, but it also means that we don’t have lots of vehicles, and we don’t have huge numbers of people on site,” he said.

“Our standard operating team per production shift is four people – and I defy anywhere else to have those sorts of numbers to produce the output we are achieving.

“For us, from an occupational health and safety (OHS) point of view, that has huge implications. A lot fewer people around and a lot fewer vehicles takes away a huge amount of risk. And, from an operational cost, we don’t have all that maintenance to carry out on mobile plant and equipment.

There are very few tipper trucks that visit the Peppertree Quarry site.

There are very few tipper trucks that visit the Peppertree Quarry site.

“As well, not having a lot of vehicles moving around the site really helps with our environmental controls.”

EHS solutions

Boral has taken the opportunity in developing a greenfield operation to introduce highly innovative environmental and OHS solutions, as Sharon Makin, stakeholder and environmental manager at Peppertree, explained.

“I had the privilege of actually starting here back when work on the site began in July 2011, and have stayed on to do health, safety and environment through operations,” Makin said.

An important element of the Peppertree site from the start was the “safety and design” concept.

“What that has meant in terms of operation is an OHS management system which ties in with all the physical, mechanical safeguards that we have put in place here,” Makin said.

“Some examples of what came out of this safety and design process is that everything is guarded – and all guarding is bright yellow in colour, so you can pick when something might be missing.

“There are no underground conveyors or underground tunnels; everything is above ground. Access is down the side of each conveyor and confined spaces, as much as possible, have been removed. Ladders have been almost eliminated from the operation, and wherever we can, access is by stairs.”

From an environmental point of view, Makin described the plant as “a dry process”.

“The site doesn’t have a water supply – apart from what falls out of the sky – so Boral and Sandvik also looked at what we needed to do in regard to environmental performance,” she said.

“So, for example, all conveyors are covered, all operations are within buildings, and we have minimal water usage to control dust.”

Because of the restricted water supply at Peppertree, Boral and Sandvik worked closely from the earliest stages of the design process to eliminate all haul trucks from the operation.

“Material comes out of the pit by conveyor, it goes through all the processing operations via conveyor,” Makin said.

“We are also the first quarry in Australia to put our product into silos, so we don’t have on-ground stockpiles that need to be watered and, again, we don’t need the trucks to haul them off-site.

A glimpse inside the main screening building.

A glimpse inside the main screening building.
High speed camera monitors ensure the product passing through the stations meets specifications.

High speed camera monitors ensure the product passing through the stations meets specifications.

“And as Peppertree has 100 per cent of its dispatch by rail, the silos feed the conveyor direct into the wagons, and so we minimise the need for water through that process as well.”

‘Extensive benchmarking’

One of the key people in helping Boral develop its vision of a highly automated, extremely safe site with the highest environmental standards has been Kai Kane, the project manager for Boral’s Sydney Aggregates Project, which covers the Peppertree Quarry, its adjacent limestone manufactured sand plant, rail infrastructure and the Maldon rail terminal that services the site.

“The criterion that we used in developing our concepts for Peppertree was extensive benchmarking of leading international sites,” Kane said. “We spent several months benchmarking various sites by Sandvik, in particular Perrier TP’s Mions Quarry in France, which became the reference point for this particular project.

“These reference plans were then used to consolidate our designs and use them for benchmarking to get world’s best practice in our design process, and then develop our safety and design requirements, as well as Australianising all those European designs.

“The safety and design process between the Boral and Sandvik teams was very iterative and collaborative. Our processes included extensive risk assessments, going through each of the existing designs and then through our new design to make sure that we captured the earnings from the ones that we benchmarked.

“The plant we now have is world standard in terms of safety and quality, and has produced an exceptionally ergonomic and maintainable operation.”

Kane highlighted Peppertree’s train loading system and its “reject stockpile” concept as particularly innovative solutions to significant challenges.

“Our train loader, which was a collaboration between Boral and Sandvik, has resulted in a world class rail loading system, which operates at 2000 tonnes per hour,” Kane said. “It is the most efficient loading system that Boral currently operates.

“It is unique in that it is capable of loading multiple products – in our case, multiple different products and recipes – something that is unique in the quarrying industry.”

The site’s reject stockpile system is what Kane calls an “elegant solution” to the challenge of dealing with out-of-spec products coming from the silos to the train loader.

Product comes out of the silos at 2000tph, and before going to the train loader goes through a sampling station, where a high speed camera monitors to ensure the product passing through the stations meets specifications.

“Any out-of-spec materials are picked up within five seconds as they go past the camera detection systems, then the chute changes direction and diverts the material to a radial stacker and our reject stockpile,” Kane said.

“These materials that come out of our radial stacker are then recirculated by a front-end loader, back into our screening and crushing plants for recovery.

Peppertree Quarry’s entire output leaves the site by train, with multiple product mixes in every trainload.

Peppertree Quarry’s entire output leaves the site by train, with multiple product mixes in every trainload.

“Comparing it with the plants we benchmarked when designing and specifying Peppertree, this is now in a superior state to all of those, particularly from an automation perspective.”

David Bolton said customer acceptance of Boral’s product out of Peppertree, in both concrete and asphalt operations, was even better than the company had hoped. He reiterated the development of Peppertree as “a generational investment” for Boral.

“It’s been a once in a lifetime opportunity to be involved in something of this scale,” he said. “It’s also been a pleasure to work with a great team at Boral Peppertree and a great team at Sandvik.

“What these two teams have been able to achieve working together has really opened our eyes to opportunities for improving our existing operations, as well as learnings we can apply to future greenfield and brownfield developments.”

Source: Sandvik Construction