Excavators enhanced

Alexandra Eastwood

Hitachi aims for the EX5600-7 excavator to be fitted with the boom and arm system as standard at the start of 2026. Image: Hitachi Construction Machinery

To further strengthen its EX-7 excavator series, Hitachi Construction Machinery Australia is about to release two new technology solutions.

For over 50 years, Hitachi Construction Machinery has been a pioneer in manufacturing equipment, machinery and parts for a range of industries.

To expand its global footprint, the company founded Hitachi Construction Machinery Australia in 1999.

“We’re a supplier of surface mining and construction equipment to Australian operations within the mining, civil and forestry sectors,” Hitachi Construction Machinery Australia general manager – mining sales Sean Ryan told Australian Mining.

One of Hitachi Australia’s flagship offerings is the Hitachi EX-7 series of excavators, which first hit the global market in April 2019.

The operator assist system has undergone a successful trial on a Hitachi EX3600-7 backhoe excavator operating in the Pilbara region of WA.
Images: Hitachi Construction Machinery

While the series has seen over 120 units sold, Hitachi is all about improving and innovating its range to meet customer feedback.

It was customer consultation that planted the seed for the long-life boom and arm and operator assist systems, both of which Hitachi has developed over the last five years.

“The boom and arm system extended the component’s maintenance life by 1.5 times, improving the durability and serviceability of our ultra-large hydraulic excavators,” Ryan said.

“To bolster durability, we have implemented cast steel technologies in high stress connection points, specifically the connection points of the boom to the arm and the cylinders to the boom. This has improved the strength and quality of those structures.”

Hitachi also placed manhole covers inside the boom to improve serviceability.

“The manhole covers have allowed easy access to the internals of the boom so non-destructive testing inspections can be carried out throughout the life of the component,” Ryan said.

“We haven’t increased the weight of the boom and arm, so we don’t reduce the capabilities or bucket sizing of the equipment.

“We also looked to improve the welding processes by using new design techniques and technologies. This included alleviating high stress areas.”

Further supporting digging and loader operations is Hitachi’s new operator assist system, which aims to reduce burdens such as operator fatigue.

With the help of sensors, a digging assist function helps to automatically improve control of the hydraulic excavator, while the loading assist function helps to avoid collisions by automatically controlling the front attachment when material is loaded onto a dump truck.

“The operator assist system makes it safer at the dig face, increasing productivity by maximising the use of the machine’s capabilities,” Ryan said.

“Rather than having a fully autonomous piece of digging equipment, which is very difficult because of the variabilities of mining conditions at the dig face, we can make part of that process automated, so operators realise the greatest efficiencies of the excavator’s capabilities.”

Ryan said decarbonisation was a key driver behind the creation of its boom and arm and operator assist solutions.

“The operator assist system is about looking at how you can get the most efficiency out of the fuel burn for your operation,” he said. “While the boom and arm seeks to extend the service life of components, therefore extending the overall life cycle.

“With every ultra-class mining piece of equipment that gets scrapped at the end of its life, an estimated 400 tonnes of CO2 (carbon dioxide) is generated. If we can extend serviceability and overall life, it reduces the need for new replacement components and it improves our decarbonisation position.”

Hitachi Construction Machinery Australia was founded in 1999.
Images: Hitachi Construction Machinery

The operator assist system has undergone successful trials that commenced in early 2024. The system was fit to a Hitachi EX3600-7 backhoe excavator operating in the Pilbara region of Western Australia.

As a result of the effective trial, Hitachi is aiming to achieve practical application of the operator assist system in stages from 2025.

“The operator assist system is retrofittable, meaning it can be set up with any EX-7 mining series excavator,” Ryan said.

The boom and arm solution has also seen a successful trial in the Pilbara, trialling on a Hitachi EX5600-7 backhoe excavator for more than 12 months.

Hitachi aims to begin taking orders of the boom and arm system at the end of 2025, with the EX5600-7 excavator being fitted with the product as standard at the start of 2026.

To aid the rollout of the boom and arm and operator assist system over the next few years, Hitachi Australia has 19 mining branches located in regions such as the Pilbara, Townsville, Emerald, Mackay and Brisbane in Queensland, and Muswellbrook in New South Wales.

“With over 1300 employees, more than 900 are electric and mechanical tradesmen who are there to service our customers and their Hitachi products in the field,” Ryan said.

“We also have a division that manages any parts required for equipment across Australia and two remanufacturing centres in Brisbane and Perth where components get repurposed at the end of their lives and are sent back to customers, reducing the amount of raw material and carbon emissions that come with new products.”

Alongside its extensive excavator range, Hitachi Construction Machinery Australia manufactures rigid dump trucks and wheel loaders for a variety of mining applications, among other solutions.

“We provide the whole service for overburden or mineral product removal from a mine site,” Ryan said.

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

This emerging lithium project trumps Bald Hill for size

Staff Writer

Manna lithium

Image: Henri Koskinen/adobe.stock.come

When Global Lithium Resources announced a a 43 per cent resource increase for its Manna lithium deposit in June, it solidified the project as a truly world-class asset.

This took Manna’s mineral resource estimate (MRE) to 51.6 million tonnes (Mt) at one per cent lithium oxide, within arm’s reach of Mineral Resources’ (MinRes) 60.5Mt Mt Marion lithium operation located just down the road.

Manna now well and truly trumps MinRes’ 26.5Mt Bald Hill mine for size, which is an operating lithium asset.

Global Lithium managing director Ron Mitchell used his presentation at Diggers and Dealers this week to speak about how the MRE increase makes Manna the second largest lithium resource in the Kalgoorlie lithium province.

“We did only list in May 2021, it’s been quite a ride,” Mitchell said of the company’s robust financial position with $27 million in the bank as of June’s end. This ensures the project is fully funded through the final investment decision and beyond.

“We are really prudent on our spend given the current market conditions,” he said.

The Manna project, located approximately 100km east of Kalgoorlie, has shown remarkable progress over two-and-a-half years of drilling, with significantly more geological confidence in the asset.

The metallurgical testwork predicts lithium recovery rates between 75 per cent and 78 per cent, confirming the project’s viability.

“In my 14 years in the lithium sector, I’ve come across a lot of lithium projects, and not a lot are spodumene-dominant,” Mitchell said.

“It (Manna) is infrastructure rich, (and) there’s an operating railway line about eight kilometres south of the project site.”

Global Lithium is working with authorities at the Port of Esperance to utilise the railway line, which offers the Manna project significant logistical advantages, reducing transportation costs and emissions.

The company is also focused on community and environmental initiatives, working closely with Traditional Owner group, the Kakarra people, to finalise a native title mining agreement.

The Manna definitive feasibility study (DFS) is nearing completion and expected by the end of the year.

“The next six months are going to be crucial for us,” Mitchell said, highlighting the ongoing metallurgical testwork and upcoming announcements regarding the DFS, mineral reserves and project approvals.

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Evolution Gold Miner

Gold prices will ‘be higher in 2025’: Evolution

Olivia Thomson

Image: Phawat/stock.adobe.com

Amid the Australian gold price reaching $3680 per ounce on August 5, Evolution Mining executive chair Jake Klein predicted that the price will continue to soar.

“Since we emerged from the fog of COVID-19 in 2022 and the associated travel restrictions, I’ve stood at this podium for the last two years telling you that the price of gold would be higher the next time we meet,” Klein said while speaking at the 2024 Diggers & Dealers Mining Forum on August 6.

“And fortunately for me, I’ve been correct this year. I come with the same good news. I’m going for a hat trick: the gold price will again be higher in 2025.

“In an excellent recent research piece, Citigroup forecast a base case gold (price) for 2025 to be between $US2700 and $US3000 an ounce. That’s up between $US200 and $US500 an ounce from current prices.”

The predicted increase comes at a perfect time for Evolution, which has five Australian gold operations: two in New South Wales, two in Queensland and one in Western Australia. Klein shed light on how Evolution has advanced over the years.

“We’ve established an outstanding portfolio of gold and copper assets,” Klein said.

“10 years ago, Evolution had a market capitalisation of around $650 million, which is less than 10 per cent of our market cap today. Average mine life – based on reserves – was about seven years, and (we) were producing 440,000 ounces of relatively high-cost gold.

“Today, we have 33 million ounces of gold and 4.1 million tons of copper in resources. We produce over 700,000 ounces of very low-cost gold, and our average mine life – based only on reserves – is at least 15 years.”

Klein credited Evolution’s growth to its significant exposure to copper.

“We have added 75,000 tons of annual (copper) production. (We also credit) our very long mine lives with high quality ore bodies,” Klein said.

“The lowest cost investment and highest rate of return is always going to be organic growth. We don’t have to go out and buy new resources to grow production or to extend our mine lives. We already own them.”

In December 2023, Evolution acquired China Molybdenum Co’s (CMOC) 80 per cent stake in the Northparkes copper-gold mine in NSW. The purchase was the main driver of Evolution’s mineral resource growth.

“The attractions for us in 2020 were evident and remain the same,” Klein said. “(These include) a 30-year reserve life, an excellent team with deep technical knowledge of caving, great geological upside and immediate cash generation.

“The first seven months of ownership have exceeded our expectations in almost every way. We’ve generated $74 million of net mine cash flow, and there is a lot more to come.”

Evolution is currently implementing a lower capital-intensive sub level cave option at the E48 ore body within Northparkes. It is also currently sourcing ore from Northparkes’ E26 Lift 1 North block cave.

Klein said that Northparkes has “abundant resources” equalling a 70-years mine life, if all the resources are mined.

“Therefore, our focus is on near surface, high-grade mineralisation that can leapfrog its way into the production profile,” Klein said.

“And here, even having only owned the asset for seven months, we’re having great early success. This is undoubtedly an asset that would fit well in any gold or copper company in the world. And we are very, very happy owners.”

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Onetrak delivers ‘excellent’ Anaconda equipment

Onetrak delivers ‘excellent’ Anaconda equipment

Adam Daunt

Oz Pebbles owns two Anaconda machines including a DF410 and SR514. Image: Onetrack

Quarry recently spoke with Oz Pebbles about its experience with Anaconda equipment from Onetrak.

For more than 30 years, Oz Pebbles has been a premium landscaping supplier, wholesaler, and distributor of bulk decorative pebbles, sand, soil, and mulch.

Located in Southeast Queensland, its Gatton yard boasts approximately 25 acres of diverse landscaping pebbles available for collection or delivery.

The company serves customers across the Gympie – Wide Bay – Burnett region of Queensland, from its Kilkivan yard for bulk building stone and rock for retaining walls, cobblestone paving, landscaping, and pool sides.

In early 2023, Oz Pebbles became a part of Brisbane-based Sunstate Sands Group, a 100 per cent Australian-owned and operated company. Quarry spoke to Matt Holloway, operations manager for Oz Pebbles, about the company’s Kilkivan site, which holds a large stockpile of material from an old gold mine. Oz Pebbles’ materials range from 20mm gravel to 400mm rock. With a small team working on-site, the company needed reliable machines. Oz Pebbles currently have two Anaconda machines, a DF410 and SR514 from Onetrak.

The DF410 is designed for optimal screening and stockpiling of materials with one of the longest screen boxes in the compact screening market. Meanwhile, the SR514 is both robust and economical, able to screen and stockpile up to three products, up to 350TPH. It features a 14 x 5 screen box with an optional triple or double deck, a 14ft feed hopper, main conveyor, and either three or four hydraulically folding stockpiling conveyors. Setting up the screen is easy and can be done in just 20 minutes, thanks to hydraulic controls that aid in the configuration of all conveyors, screen-box, and landing legs.

Onetrak is the official dealer for Anaconda equipment in Australia. Image: Onetrack

Holloway shared his thoughts on their decision to purchase Anaconda machinery. Previously, Oz Pebbles had no Anaconda machines in its fleet, but the company’s general manager had a relationship with Onetrak’s Jason MacDonald and had previously worked with Anaconda. This was a significant factor in Oz Pebbles’ decision-making process. Additionally, Anaconda’s excellent reputation and the support of Onetrak’s national dealership, which offers service and technical expertise, just two hours from the site, were key factors.

Holloway said there were several standout features of Anaconda machines. Some of these include excellent fuel economy, easy mobility on tracks using a remote control, and the ability to screen three separate stockpile products from a single feed. Additionally, these machines boast a durable and solid construction along with good engine power.

Oz Pebbles regularly hears from operators who find the machines very user-friendly. Holloway said the units can easily fold up to be transported and are compatible with both front-end loaders and excavators for feeding the hopper.

“These machines have good ground clearance, which makes clean-up easy. Further, the screen can handle different feed sizes with ease, even after warning operators about putting oversized rocks in the hopper. “Adjusting the tail belt height to increase or decrease stockpile height depending on site conditions is also helpful,” he told Quarry.

“I must say, our experience with Onetrak’s service manager Chris Gardham at Caboolture has been nothing short of excellent.

“Whenever we have any issues or need services, Chris is always there to provide timely and fantastic support. When we had to transport the SR514 to Emerald for some work, Chris had no issues organising a crew to get the job done.

“Moreover, their parts supply is also great, and they are equipped to source parts and provide specialist service in case of any issues with the machine. At the beginning of the engagement, Jason did an excellent job commissioning and training on pre-starts and the do’s and don’ts of the machines. Their after-sales service has been top-notch.” •

For more information, visit onetrak.com.au

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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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. 

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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