Australian dollar goes under US 80 cents for first time since 2009

Australian-dollar-goes-under-US-80-cents-for-first-time-since-2009-659065-lThe Australian dollar went under US 80 cents this morning for the first time in five-and-a-half years.
AAP reports that the dollar fell as low as US 79.96 cents this morning and was trading at US 80.05 cents at 8:30 am, following the announcement of a 60 billion Euro per month stimulus package announced by the European Central Bank.
The dollar had weakened on Wednesday from US 82.13 to 80.81, reported Fairfax, following a surprise cut in the Canadian interest rate by the Bank of Canada and a drop in that country’s currency.
“The BoC decision has relevant parallels to Australia – namely, a commodity-centric economy with growth slightly below-trend and an inflation pulse that is providing space for some additional easing,” Daniel Been, senior currency strategist at ANZ Bank, told Fairfax at the time.
There were predictions the Australian dollar would head under US 80 cents following the announcement of quantitative easing by the European Central Bank to deal with the region’s weak economy.
European growth is under one per cent and unemployment is at 11.5 per cent.
The bond buying program was worth 60 billion Euro a month until the end of September next year, the ECB’s president Mario Draghi said. This was slightly larger than the 50 billion Euro a month predicted ahead of Draghi’s announcement, according to AAP.

Read more at http://www.ferret.com.au/articles/news/australian-dollar-goes-under-us-80-cents-for-first-time-since-2009-n2520321#557UJMIVihz13RRP.99

Technologies to transform the world over next five years

The Internet of Everything, cloud computing/big data and 3-D printing are the three technologies most likely to transform the world during the next five years, according to IHS Technology.

“We know that technology has the capability to change the world: from the Gutenberg printing press to the steam engine to the microchip,” said Ian Weightman, vice president, research & operations, IHS Technology.
“But how can we determine which technologies are likely to have the greatest potential to transform the future of the human race?
What is the process to distinguish among the innovations that will have limited impact and those that will be remembered as milestones on the path of progress? How can you tell the difference between the VHS and Betamax of tomorrow’s technologies?”

“To answer these questions, IHS Technology gathered its leading experts representing the technology supply chain from electronic components to finished products across applications markets ranging from consumer, media, and telecom; to industrial, medical, and power. These experts were asked to nominate and vote for their top 10 most impactful technologies over the next five years.”

The top three technologies were: 3-D printing in third place; cloud computing/big data at No. 2; and the Internet of Everything coming out on top.

Manufacturing moves to next dimension with 3-D printing

Also called additive manufacturing, 3-D printing encourages design innovation by facilitating the creation of new structures and shapes, and allows limitless product complexity without additional production costs. It also greatly speeds up time to market by making the idea-to-prototype cycle much shorter.

Total revenue for the 3-D printing industry is forecast to grow by nearly 40 percent annually through 2020, when the aggregated market size is expected to exceed $35.0 billion, up from $5.6 billion in 2014.

Cloud computing/big data brings metamorphosis to computing and consumer markets

The cloud has become a ubiquitous description for on-demand provisioning of data, storage, computing power and services that are touching nearly every consumer and enterprise across the globe.
Together with data analytics and mobile broadband, the cloud and big data are poised to reshape almost every facet of the consumer digital lifestyle experience and dramatically impact enterprise information technology (IT) strategies, while creating new opportunities and challenges for the various nodes in the entire information, communications and technology (ICT) value chain.

The cloud is transformational in the business landscape, changing the way enterprises interact with their suppliers, customers and developers.

The big data and data analytics segment is a separate but related transformational technology that harnesses the power of the cloud to analyze data for disparate sources to uncover hidden patterns, enable predictive analysis and achieve huge efficiencies in performance.

IHS forecasts that global enterprise IT spending on cloud-based architectures will double to approximately $230 billion in 2017, up from about $115 billion in 2012.

The Internet of Things becomes the Internet of Everything

The world is in the early stages of the Internet of Things (IoT)—a technological evolution that is based on the way that Internet-connected devices can be used to enhance communication, automate complex industrial processes and generate a wealth of information.
To provide some context on the magnitude of this evolution, more than 80 billion Internet-connected devices are projected to be in use in 2024, up from less than 20 billion in 2014, as presented in the attached figure.

While the IoT concept is still relatively new, it is already transforming into a broader model: the Internet of Everything (IoE). The metamorphosis covers not just the number of devices but envisages a complete departure from the way these devices have used the Internet in the past.

Most of the connected devices in place today largely require direct human interaction and are used for the consumption of content and entertainment. The majority of the more than 80 billion future connections will be employed to monitor and control systems, machines and objects—including lights, thermostats, window locks and under-the-hood automotive electronics.

Other transformative technologies identified by IHS Technology analysts were:
Artificial intelligence
Biometrics
Flexible displays
Sensors
Advanced user interfaces
Graphene
Energy storage and advanced battery technologies

Send me an email if your need a complimentary copy of an IHS white paper.

Hughes Drilling wins Mt Arthur coal contract

Hughes Drilling has won a contract for overburden drilling services at BHP’s Mt Arthur coal mine.

The contract is only a short term agreement.

It will run C-750 REICHdrill rigs on site.

This win comes just a day after Hughes won a similar contract for overburden removal at Glencore’s Collinsville coal mine.

CITIC’s Sino Iron mine to post $1.8 bn writedown

Citic has been forced to writedown the value of its Sino Iron project in the Pilbara by $1.8 billion due the falling price of iron ore.

The Chinese company said it expected its February financial results to include an after-tax asset impairment of between $US1.4 billion to $US1.8 billion.

It said the decision was made after considering the current and predicted price of iron ore.

“A key component for consideration is the current and forecasted price of iron ore,” Citic said.

Citic only has two production lines out of six up and running at the $10 billion mine.

The company said two more units would start work later this year, with the rest set for commissioning in 2016.

The mine has been in production for just over a year, and has exported 2.4 million tonnes of iron ore.

It is the first time a Chinese-owned mining company has shipped iron ore products from WA to China.

The project ran into a spate of delays and cost blow-outs during the commissioning phase.

Legal disputes with billionaire Clive Palmer over royalty payments have also hampered the development and driven up costs.

The value of iron ore has nearly halved since this time last year, and analysts predict there is more pain to come as the three majors – BHP Billiton, Rio Tinto, and Vale- ramp up production that will push more supply into the market.

Last week Macquarie Group joined the list of major banks that have their iron ore price forecasts.

The bank said it expects iron ore prices to average $US68 a tonne in 2015 and $US65 a tonne in 2016.

BRICK SUPPLIER JOINT VENTURE TO PROCEED

A joint venture between Australia’s two largest brick suppliers will proceed after getting the green light from the consumer watchdog.

Boral and CSR’s proposal to combine their east coast brick operations in a joint venture was first announced in April 2014. The joint venture will be 60 per cent owned by CSR and 40 per cent owned by Boral and aims to address the “sustained structural downward trend” that the Australian brick manufacturers have been experiencing over the past three decades.

In October, the Australian Competition and Consumer Commission (ACCC) released a statement of issues listing a number of competition concerns that could potentially arise from the creation of the joint venture. However, the consumer watchdog has now announced it will not oppose the transaction.

“Critical to the ACCC’s decision was the assessment that Boral would be unlikely to remain in clay brick manufacturing in eastern Australia if the joint venture does not proceed,” ACCC chairman Rod Sims explained. “Without this conclusion, the proposal raised considerable competition concerns.”

Although initially sceptical, Sims said further extensive inquiries and reviews of the companies’ business records had led the ACCC to conclude that there was “sufficient evidence to support the claims that Boral would exit brick manufacturing on the east coast and that, on balance, the ACCC should not oppose the joint venture”.

Boral CEO and managing director Mike Kane said the decision was good news for customers, employees and shareholders. “With Australian brick manufacturing being challenged as a result of a reduction in brick usage and high input costs, the joint venture will allow us to drive efficiencies across the combined network of operations, creating a more sustainable business,” he stated.

“This joint venture is about retaining manufacturing in Australia and maintaining clay bricks as a choice for consumers,” CSR CEO and managing director Rob Sindel added. “It will strengthen opportunities for employees and ensure that customers benefit from a strong supplier in the highly competitive cladding market in Australia.”

The formation of the joint venture is expected to result in a combined revenue of $230 million and initial overhead savings of $7 million to $10 million per annum. The integration of the businesses is expected to reach completion within the first half of 2015.

Boral sells landfill business, relocates quarry operation

In other Boral news, the building materials supplier has entered into an agreement to sell its Western Landfill business in Melbourne to Transpacific Industries for an upfront payment of $150 million as well as an additional $15 million for site preparation work. Boral will also receive earnings from Transpacific in the form of fixed payments and volume-based royalties for the life of the landfill.

The recently sold landfill business is co-located with Boral’s asphalt, concrete and related operations and its Deer Park Quarry at a 1150ha site in Ravenhall, Melbourne. After operating Deer Park Quarry for 50 years in the southern section of the Ravenhall site since the quarry’s inception in 1965, Boral is now preparing to shift the operation into the northern section of the site.

Deer Park Quarry has an expected life of between 40 to 50 years and provides between two and three million tonnes of aggregate per year. According to Boral, moving the quarrying operation into the new section will ensure its ability to continue supplying hard rock aggregate for Melbourne’s building and construction industries into the next decade.

The preparation work will involve the replacement of the existing processing plant, with construction expected to begin in 2016 and operations to commence in the following year.

New dragline rope extends operation

New-dragline-rope-extends-operation-658910-lPowerMax PLUS drag rope

WireCo WorldGroup has launched a new range of dragline ropes designed for increased service life in tough mining operations.
WireCo’s new PowerMax PLUS wire rope can increase service life by up to 110%, helping to minimise interruptions and downtime, which can otherwise be costly to any mining operation. The increased service life of the drag ropes translates into a lower overall cost of ownership.
The new PowerMax PLUS increases time intervals between resockets and end-for-ends, which are typical preventative maintenance procedures for draglines.
Designed by WireCo’s research and development engineers, PowerMax PLUS features new wire technology for increased wire toughness that improves abrasion resistance as well as plastic enhancement that protects the rope core from material intrusion and fatigue.
The PowerMax PLUS has been tested extensively in field trials at coal mines in Wyoming, Texas and South Africa, with results showing the drag rope has lasted more than twice as long as previous drag ropes, helping to increase the time between rope replacements.
PowerMax PLUS is part of Union’s PowerMax PLUS family of drag ropes, which also includes PowerMax PFV PLUS, and PowerMax MD PLUS.

In retrospect: The top 100 companies of 2014

In a two-part retrospective, we look back the mining sector in 2014. First we start with the fate of the top 100 miners – some ugly stuff here – but then turn to some more positive and perhaps underappreciated developments.

It wasn’t a good year to be a big miner. Ranking the top 100 mining companies by market cap near year end and tabulating their 52-week share price performance tells the ugly tale (see below). BHP Billiton, still the world’s largest company, shed an astounding $31 billion or 27% of its market cap.

The next seven names at the top were all losers. Rio Tinto and Glencore’s share prices were off by about eight percent; Vale’s dropped 41%; Anglo American’s was down 10%; Norilsk’s was down seven percent; Freeport’s shareprice slumped 37%; and Southern Copper ended close to, but not quite, the even mark.

In looking back on 2014, it’s not hard to account for the share price pain of the top miners. Last year was abysmal for iron ore, oil and coal prices – chief commodities for many of the diversifieds. Meantime, investor sentiment toward the miners and their prospects seemed to reach new lows. In the past couple years, there was a great deal of shuffling in mining management reflecting shareholder unhappiness with business plans, share price returns, thin cash flow and capital expenditure blow outs.

The cratering iron ore price, especially, caught many in the market off guard. Though a decline in iron ore was bound to come, BMO mining analyst Tony Robson notes in an email, “most of us were thinking late 2014 or 2015, not early/mid 2014.”

And he, as others, expected a “steady decline not a savage collapse”. An unprecedented gulf between supply (growing) and demand (slowing) emerged in 2014, one that is by many accounts here to stay.

Some analysts and mining management lambaste the diversifieds for angling to maintain market share through mine expansion. Ivan Glasenberg – chief executive of Glencore – has cut into BHP Billiton and Rio Tinto for their strategy to grow amid an iron ore glut as being ill conceived and bad for business. Likewise, analyst John Tumazos, of John Tumazos Very Independent Research, derides the business strategy.“The iron ore companies are uniquely delusional,” Tumazos says.

He points to clear signs that Chinese steel demand, which dominates iron ore use, is set to be lacklustre relative to supply growth for years to come. But “the guys that own 400 tonne trucks just don’t want to admit it”.Looking beyond iron ore, it was equally tough for some other mining sectors. The major gold miners are well off over the year, especially Barrick. The top gold miner, by production, shed some 30% over the year. Goldcorp, the top gold miner by market cap, was also in negative territory – just. And it was a similar fate for many of the other large gold miners. Newmont was down near 15%. Polyus lost five percent. And so on. If the price of gold wasn’t obliterated in 2014 as in 2013, it muddled along for much of the year. This, combined with investors sceptical of growth plans by the major gold miners, undercut the gold miners.

In uranium – where prices were weak until a recent bump up – it was much the same. Cameco, the leading uranium miner was down 15%.

The legacy of the Fukushima disaster in Japan lingers. As David Talbot, a Dundee Capital Markets analyst, notes, it will likely take a return of Japan reactors to turn the market around. “Japanese restarts will likely be largest issue,” he says.

“Getting Japan back into operation is likely to be a strongly psychological driver – if not necessarily about real demand.”

3D scanning and the future of mining maintenance Part I

article image
Machinery and equipment scanning is providing a whole new aspect on mine site maintenance.

3D laser scanning has been slow to make an appearance in the mining industry.

While it has seen some use in surveying stockpiles autonomously, there had been little uptake.

However, over recent years the use of this technology at mine sites and plants has increased due to the distinct advantages it offers compared with traditional survey methods.

Point cloud data uses a 3D set of vertices represented by X, Y and Z coordinates that is gathered via 3D laser scanners.

Vast numbers of points are collated from a given surface to produce a high point density representation of an area or object.

This becomes particularly relevant to the mining industry in its ability to tackle vast, complex and even underground sites with far greater simplicity and convenience than conventional surveying.

Accuracy, time, and cost efficiency are just some of the benefits laser scanning has to offer.

From a detail d​esign perspective
Point cloud technology, from a detail design point of view, not only makes the job in hand that much easier, but minimises the potential for human error to almost zero.

The captured data provides an ‘as built’ status, giving a real-time snapshot of the site as it currently is and the subsequent data processing that follows has a fast turnaround.

This negates the risk of changes at site affecting plans, drawings and tenders.

The accuracy and coverage of the gathered data eliminates incorrect measurements or the need to make estimations.

In conjunction with CAD technology, specific measurements can be extrapolated to provide exact calculations.

For quality assurance purposes, using the point cloud data against prepared drawings is an excellent tool to clearly identify incompatibilities.

The data also has a multitude of other uses, such as clash detection of existing infrastructure and determining what aspects need to be removed, modified and in which order.

New designs can be reviewed internally and externally with client and maintenance teams, prior to fabrication and installation to identify potential problems and amend accordingly.

Additionally, the 3D point cloud data can be scanned to suit the plant coordinates or even a real-time satellite position.

This allows the new area being modelled to be positioned into Google Earth or any other real-time satellite imagery, allowing site a true aerial preview of the new construction.

Simplicity and ​convenience
The generation of a 3D replica of a physical object, regardless of size, layout or density can generally be performed while the plant is in production.
Site personnel can continue with site activities as their presence does not interfere with data collection.

This presents huge opportunities as the majority of the site can be surveyed during production without the need to schedule downtime and reduce productivity.

Where interior survey of, for example, a grinding mill is concerned, a short amount of downtime is necessary.

However, by using a laser scanning service such as MillMapper (Scanalyse, now part of Outotec), it’s possible to scan mills in as little as 15 minutes and this can be scheduled to coincide with a planned inspection shutdown.

Both MillMapper and CrusherMapper (used for gyratory crusher analysis) use patented, proprietary software to process laser scanning data, providing 3D files and reports on liner thickness wear and cross-sectional / longitudinal profiles.

Service life projections are given at the average and fastest wearing points.

Localised critical areas of breakage, cracks and uneven wear are highlighted, resulting in significantly improved liner assessment being provided as the total surface is mapped, not just accessible areas.

In terms of safety, both internal and external scanning reduce the need to work at heights or in confined spaces as laser scanners can be placed strategically in vantage points for remote scanning.

While a miner may potentially expect higher up-front costs due to production and manipulation of the data, the net results from minimised downtime alone will offset this cost.

This, coupled with the convenience of the survey, quick procedure and turn-around, along with clear, highly accurate and informative imagery, more than compensate over the course of the entire project.

The fabrication stage also benefits from the inherent precision in plans and drawings which will potentially reduce commissioning time.

A complete plant can be scanned within a day and the data files compiled into one or several 3D models and available to the design team within a short time frame.

High density imaging
The data produced from the millions of points captured in a 3D environment is generally processed via a CAD program.

These high density CAD images offer numerous advantages including versatility.

Sections of an image can be isolated or cut and viewed from any angle in the same way as a 3D CAD model.

The extensive data also provides the same detailed information of surrounding areas.

Exact calculations of space and measurement allow construction, access and craneage around existing infrastructure to be planned well in advance, without the need to revisit the site.

When processed, point cloud data images provide the basis for digital manipulation, giving an accurate, impressive and true representation of the project.

Whether rendered, false or true-coloured, the images are highly detailed.

Every fine point is captured which by any other method may have been missed, including non-documented assets such as cable trays, service piping and on-site modifications.

With so much information readily available in the digital files, time spent sorting through and analysing multiple drawings and site sketches is greatly reduced.

The future of office video conferencing: Microsoft Lync to be combined with Skype

Microsoft is preparing to combine its business-focused Lync video conferencing and instant messaging app with Skype to create a new package called Skype for Business.

The package, set to be released in the first half of 2015, will see the creation of a new Skype-like client app, an upgrade of the Lync server software and updates to the service in Office 365.

While Lync already offers instant messaging and audio calling with Skype users, Skype for Business users will also be able to make video calls to Skype users, as well as access to its user directory.

The Skype for Business app will add a number of key interface elements from Skype, including the icons it uses for calling, adding video and ending a call.

At the same time, Skype for Business will retain the Lync content sharing features many businesses rely on but are not present in Skype.

Businesses running Lync Server 2013 will be able to upgrade to Skype for Business Server without needing any new hardware, while the upgrades will be automatic for businesses subscribing to Lync through Office 365.

The ‘Big Data’ evolution

In the future, people will look back at the last decade of the 20th century and the first decade of the 21st as being the genesis of ‘big data’. With the birth of the Internet, wireless networking, and the ever-decreasing cost of digital storage, capturing and storing huge amounts of data has become the rule rather than the exception. Along with the development of the Internet, IP networking has made even more data possible as devices never even dreamt of years ago can now be easily connected.

Who would have thought 20 years ago there would be a time where we could go for a run and instantly know how far we’ve gone, where we’ve gone on a map, the calories burnt and altitude gained, all read from a crystal clear screen on a mobile phone not much bigger than your average wallet.

There has been a similar explosion of ‘big data’ in mining, albeit slightly behind that of the Internet revolution, but nonetheless, the amount of data now available from mining equipment is staggering. In fact, there is so much data available people often don’t know which way to turn.

Information overload is not a new term, but its use in the past decade has increased dramatically as the amount of data that fills digital storage grows. Collecting data is one thing; displaying it meaningfully is another. Several large mining companies have attempted to quell the information overload problem through the use of remote operationscentres (ROC) where relevant information from operations thousands of kilometres away is displayed for management review. For other companies where an ROC is not on the agenda, the challenge of disseminating and displaying vital information remains.

In order to show the challenge of ‘big data’, let’s take a specific example and break it down. In open pit mining, seconds are paramount. Whilst seconds may not play a large part in drill and blast (its generally all about metres), in the load and haul cycle a matter of seconds can make or break a production target.

Before my current role I was more familiar with underground mining where metres were king. ‘Metres advanced’ is the metric used in underground development. I never really gave much thought to how much emphasis is given to seconds above the ground but it soon becomes obvious when you break it down. Haul cycles are made up of simple segments: travelling, spotting, loading and hauling (there are other segments like waiting and tipping that can be added but we’ll keep it simple for now).

One haul cycle is the total of these activities in minutes and seconds. Each of these activities can be timed individually using a variety of methods. For most operations, a fleet management system that can detect when each of these activities ends and the next starts can provide this information. For example, when a haul truck is moving along a haul road without a load, it is travelling. When full on the same road, it is hauling. The system knows this based on the GPS position of the truck and if it has a load or not. For spotting, the GPS position is used but it also correlates this with the proximity of a load unit and the selection of reverse gear. If all these are true, then the truck must be spotting. Now that we have a way of breaking the activities down, we also have a way of determining the total cycle time. Likewise, as the activities can be captured individually, we can now also display these individually in a variety of formats such as static reports or dynamic dashboards.

So where do the seconds count? Let’s say a haul cycle is 20 minutes in total and consists of the following breakdown:

Travelling – 5 mins
Spotting – 30 seconds
Loading – 2 minutes
Hauling – 12.5 minutes
Now we have a baseline that we can compare all other data in order to answer questions such as:

Is 20 minutes good?
Can it be improved?
How does this operator compare to the others?
What happens if the haul route changes?
There are many answers to these questions, but they all have one thing in common: only data can provide objective answers. Let’s tackle the first and third questions – by measuring all operators it will soon become apparent whether 20 minutes is good and where the operator sits in the scale of things. Once you have the answer to those questions you can then answer question number two. If the average is in fact 18 minutes, this operator is well below. Why? Again data can provide the answer, or at least point you in the right direction.

And this is where data can also lead you on a wild goose chase.

Having only one source of data may not tell you the full story. What if the reason this haul was 20 minutes was because a shower of rain caused a portion of the haul road to become slippery.

This would only be apparent on one or two hauls as the road would soon drain and dry out, creating a temporary increase in the overall total time. The moral of this example is don’t get too wrapped up in the data you fail to see the ‘truth’.

Let’s go back to question two, as this is where we can really show the power of data. Once the data has been verified, we can focus on the cost savings to be had from reducing the cycle time.

This is where engineering and technology can come together to show the potential benefits of ‘big data’. Let’s target a one minute improvement on the cycle time to keep things simple. As the current cycle time is 20 minutes, three cycles are possible in one hour, therefore there is a three minute saving every hour. In a 12-hour shift there is usually 10 effective hours on average, so therefore with one truck across one shift there is 30 minutes extra – more than enough time for an extra load. Now lets extrapolate that across a fleet of 50 trucks for the year – 1 extra load x 50 trucks x 2 shifts x 365 days = 36,500 extra loads for the year.

Now let’s work out the potential value of these extra loads. We’ll use best case, round figures to make it easy, but you’ll soon see what a one minute saving each load can add up to.

We’ll use a CAT 793F haul truck with a gold grade of 1 gramtonne. A CAT 793F averages 220 tonnes per load, therefore there is potentially 220 grams of gold in each load. 220 x 36,500 = 8.03 million grams which is just over 258,000 troy ounces. At a gold price of Aus$1350ounce that equals Aus$348.3 million. At Aus$200 per ounce profit, that’s a tidy Aus$51.6 million extra profit, all from reducing cycle times by one minute

I did say this was best case – this certainly wouldn’t be the case in the real world as each load isn’t always a premium grade load as there is waste that needs to be moved. There’s a whole host of other factors that would affect the above equation, but it shows the potential of what can be achieved by using ‘big data’.

Now that we’ve seen what ‘big data’ can do for us, the challenge is sharing this information with those decision makers that value the data.

For a production engineer, giving him an extra load per hour is like having another truck in the fleet – something that can’t be physically achieved with spending many millions of dollars. But give it to him for free and he’ll be your next best friend.

And this precisely is the future challenge facing many – how to capture, interpret and display big data in this age of information overload. That sounds like a great topic for another article.

Jason Nitz is a fleet management and dispatch superintendent at Newmont Mining.

This article originally appeared in full at Austmine.