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How BHP looks to prolong an iconic Australian copper mine

Anna Wiley speaking at Copper to the World 2024. Image: Austmine

BHP’s planned expansion of Olympic Dam could be one of the most significant investments in Australian copper infrastructure in decades.

Speaking at the recent Copper to the World conference, BHP asset president copper Anna Wiley discussed the mining giant’s aspirations for the important metal in South Australia.

“To date, we have unlocked synergies of more than $US50 million ($75 million) per year from our newly combined operations in South Australia,” she said.

“At Olympic Dam, we have invested $1.8 billion over the past five years improving the safety, stability and reliability of our surface processing facilities.

“It’s a big operation – and it’s getting bigger.”

Olympic Dam churned out 212,000 tonnes of copper in the 2022–2023 financial year, and BHP is still making discoveries at depth.

“It’s one of the amazing things about Olympic Dam – we haven’t found the bottom of it yet,” Wiley said.

What’s next?
Wiley touched on BHP’s plans for its copper portfolio in South Australia, which includes:

Progress and completion of the Prominent Hill shaft that will haul ore to surface from 1.3 kilometres deep
Transition to a block cave at Carrapateena following the recent commissioning of a second underground crusher this year
Further underground development at Olympic Dam
Ongoing studies into a smelter/refinery expansion at Olympic Dam
A new decline at Oak Dam to complete underground exploration and pave the way for a potential underground mine development.

“In the coming years, we hope to make a final investment decision on an expansion of our existing copper refining facilities at Olympic Dam, to construct a two-stage smelter and associated refinery complex,” Wiley said.

“This has the potential to result in production of greater than 500,000 tonnes per annum of copper – and more than 700,000 tonnes of copper equivalent per annum when you include the by-products of gold, silver and uranium.

“This would constitute one of the most significant investments in copper metal manufacturing infrastructure in Australia for many decades.”

To achieve its copper aspirations, Wiley said it all boils down to partnership and collaboration.

“Investment in skills, training and innovation and a thriving METS (mining equipment, technology and services) sector that builds our collective capability to lead the next generation of technologies and systems will be critically important to South Australia across a range of sectors.”

BHP: Copper is king

KELSIE TIBBEN

BHP asset president copper South Australia Anna Wiley. Image: Austmine

BHP South Australian copper asset president Anna Wiley has laid out a copper-focused future for the Big Australian in her address to the Copper to the World conference in SA.

Wiley said SA is home to 70 per cent of Australia’s copper resources, one of only so many world-class copper resources remaining in the world.

“This places additional importance on ensuring we economically extract as much copper as possible from our current operations,” she told the audience.

Citing BHP’s Chile and South American operations, Wiley added the company’s South Australian foothold to the list of assets part of its plan for a future focused on copper.

It’s a plan that has been in the works for a while, culminating in BHP’s $9.7 billion acquisition of OZ Minerals last year, bringing the SA Carrapateena and West Musgrave copper projects into the BHP fold.

“Today, as BHP we operate three underground copper mines and a nationally significant smelter and refinery complex in South Australia’s far north,” Wiley said.

This includes the heart of BHP’s SA copper province, Olympic Dam, which Wiley said the company is hoping to grow with the help of additional smelting and refining plants.

“It’s a big operation – and it’s getting bigger,” she said.

“This has the potential to result in production of greater than 500 kilotonnes per annum of copper – and more than 700 kilotonnes of copper equivalent per annum when you include the by-products of gold, silver and uranium.

“This would constitute one of the most significant investments in copper metal manufacturing infrastructure in Australia for many decades.”

Wiley said BHP’s plan for growth relies on a range of elements coming together, like skills development, the mining equipment, technology and services (METS) sector, permitting and approvals, enabling infrastructure, underlying stability, and technology.

“But in one way or another they all boil down to one very important theme: partnership and collaboration,” she said.

“In recent memory it was impossible to imagine change of this pace in the mining industry, and it goes to show that amazing things can be achieved with a common ambition.

“Industry, governments, Traditional Owners, technology providers and communities working together will help bring more copper supply to market to meet global demand more quickly and more sustainably.”

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Astec extends MPS fixed plant distribution rights to NSW

OLIVIA THOMSON

Image: Astec Industries

Mineral Processing Solutions (MPS), an OPS Group company, will expand its distribution of Astec’s fixed plant and equipment to include aggregate and mining sectors in New South Wales.

Under the terms of the new agreement, MPS will supply fixed plant crushing and screening equipment to the NSW aggregate and quarry industry.

The move is an extension of a 2021 agreement between both two companies that saw MPS take on distribution of Astec Material Solutions’ products in Western Australia, the Northern Territory and South Australia, as well as the mining sector in Australia’s eastern states.

Astec regional managing director David Smale welcomed the move.

“Astec and MPS have forged a strong partnership over the years – one that has been of real benefit to our customers,” Smale said.

“The MPS team’s extensive local market knowledge and experience in mineral processing – supported by Astec’s innovative technologies and manufacturing capability – has made MPS the perfect partner to deliver outstanding products and service.”

MPS also distributes Astec Telestack mobile bulk materials handling equipment and Astec Breaker Technology International products throughout Australia, demonstrating the company’s strong presence on the east coast.

Local sales and service teams are in place, and new local support facilities in the NSW Hunter region have been stocked with the latest Astec crushing and screening equipment.

“MPS taking our fixed plant into the aggregate industry in NSW is the first step in what we expect to be a continuing expansion, with the company moving into the Queensland and Victorian markets over the next few years,” Smale said.

“For our existing quarrying customers, little will change. Through MPS, they will still have access to the complete range of Astec’s industry-leading crushing and screening equipment, plus the extensive knowledge and experience of the MPS sales and service teams.

“I’m delighted to be making this announcement, and (I) look forward to working alongside MPS as they continue to support our customers in building the infrastructure of Australia.”

Kingston Resources kicks off mining in NSW

TIM BOND

Image: Ronnarong/adobe.stock.com

Kingston Resources has commenced open pit mining at its Mineral Hill gold-copper mine in NSW.

Drilling and blasting kicked off at the Pearse North prospect, along with the delivery of first oxide ore to the run of mill pad.

Mineral Hill ceased hard rock mining in 2016 under previous owners. Since then, Kingston Resources has been working hard to recommence mining, with the object of becoming a regionally significant producer.

The commencement of mining at Mineral Hill comes three weeks after the successful completion of the tailings retreatment project.

The plant refurbishment project is also well-advanced, with the company expecting to be treating pit oxide ore in July.

Kingston continues to focus on employing and purchasing local, ensuring the benefits of Mineral Hill’s success stay within the region. Over the past three weeks, the company has welcomed 15 new employees to the Mineral Hill team within mining, processing and geology sections.

The majority of these new employees are local residents of the Lachlan Shire. The recruitment process is going well with an additional 13 people expected to commence with Kingston during June and July.

“We are delighted to announce the commencement of open pit mining at Pearse North, which signifies a major step forward for the Mineral Hill project,” Kingston Resources managing director and chief executive officer Andrew Corbett said.

“The Pearse North and Pearse South open pits will be the initial stages of our return to hard rock mining at Mineral Hill, and we look forward to continuing to develop this project and delivering value to our shareholders.”

Greenbushes bolstered by increased investment

OLIVIA THOMSON

The Greenbushes lithium mine in WA. Image: Talison Lithium.

An upsizing of the Greenbushes lithium mine’s revolving syndicated loan facility (SLF) has been approved by Windfield Holdings.

Greenbushes is known as the world’s largest hard-rock lithium mine and is located approximately 250km south of Perth in Western Australia. It recorded a profit of about $6.3 billion in 2023.

IGO and Tianqi Lithium currently share a 49 per cent stake in Greenbushes, with Albemarle owning the remaining balance. Talison Lithium, the operator of the site, is a joint venture between the three parties.

According to IGO, the mine has received strong interest from a group of leading commercial banks.

As a result, the Greenbushes SLF has increased from $US1 billion ($1.5 billion) to $US1.55 billion ($2.33 billion) with a five-year term.

The SLF upsizing will fund Greenbushes’ capital commitments, specifically the construction of a third chemical grade plant 3 and a fourth tailings storage facility.

“Given Greenbushes’ enviable position on the lithium cost curve and the significant capital investment program underway to expand production and improve productivity, IGO is supportive of Talison’s capital management initiatives and the increase to the debt facilities available to the team,” IGO managing director and chief executive officer Ivan Vella said.

“The strong appetite from leading commercial banks to support this exciting phase of Greenbushes’ transformation is indicative of the quality of the project and the strong and sustainable cash flows it will generate through the cycle.”

During the March 2024 quarter, Greenbushes saw decreased production and sales due to the management of production and inventory levels in response to the lower offtake requirements by shareholders.

Despite the lower spodumene sales and prices, IGO said Greenbushes is expected to operate at full production for the rest of 2024.

Weir opens $28m Port Hedland service centre

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Weir’s new world class, state-of-the-art facility in Port Hedland. Image: Weir

Global mining technology leader Weir has officially opened its new Port Hedland service centre in Western Australia.

The new facility bolsters Weir’s national network of 16 service centres and will aim to support customers and their operations across the Pilbara region.

The centre is equipped to service Weir’s broader range of products and technologies, provide engineering and maintenance support as well as critical parts storage for faster service times for customers.

Opening ceremony on World Environment Day. Image: Weir Minerals

“The new centre at Port Hedland will support our key customers in the region, providing Weir’s best-in-class service and expertise,” Weir Minerals regional managing director Kristen Walsh said at the facility’s opening.

“The Australian $28 million facility demonstrates our commitment to sustainable mining and with further investment planned, we will continue to support our ambitious growth plans in the Pilbara region of Western Australia.”

This will include Fortescue and Thiess’ Iron Bridge project, which incorporates Weir transformational flow sheets – the world’s first dry comminution circuit without tumbling mills.

Port Hedland serves as a critical hub for the mining and resources industry in Australia, driving economic growth and success for the important iron ore region.

The new service centre will work to deliver innovative engineering solutions and expertise, enhancing operational efficiencies and advancing sustainable progress across the Pilbara’s dynamic mining landscape.

With best-in-class technology and support, the centre features facilities forEnduron high-pressure grinding rolls servicing, including tyre roller assembly and Linatex rubber lining services, helping customers to extend the life of their assets.

Weir employees celebrate the opening. Image: Weir

The next stage of development, set for 2025, will see an expansion of the team and specialisation in the repair and overhaul of various Weir processing equipment including Warman pumps, Cavex hydrocyclones and Isogate valves as well as Enduron crushers and screens.

Building on trust, collaboration and integrity, Weir said it is committed to delivering innovative solutions and working together with its customers to make mining more sustainable.

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Dolphin tungsten volumes exceed expectations

OLIVIA THOMSON

The Dolphin tungsten mine. Image: Group 6 Metals.

Group 6 Metals has uncovered more ore tonnes and metric tonne units of tungsten trioxide from the Dolphin tungsten mine than originally anticipated, alongside a record month of shipments.

The company’s in-pit reconciliation methodology uses in-pit sampling, UV (ultraviolet light) lamping, and production drill hole assaying to compare mining results to the geological model.

When compared to the geological model, recoveries from the Dolphin open pit exceeded expectations up until the end of April.

Dolphin produced about 94 dry tonnes of concentrate in April at an average grade of 57.1 per cent for 5380 metric tonne units of tungsten trioxide. A total of 115.05 dry tonnes of concentrate at 57.38 per cent tungsten trioxide was shipped in April, a record month for Group 6.

“Over the past six months, our geology and mining teams have excelled at maximising ore recovery,” Group 6 managing director and chief executive officer Keith McKnight said.

“This means we’ve collected more valuable tungsten ore than forecast while working the outer areas of the Dolphin open pit. While this has caused a temporary delay in the mining sequence, the extra effort has resulted in a detailed understanding of the mine’s geology, giving us a lot of confidence in our mine forecast.

“Excitingly, the high-grade C-lens (deposit) is now accessible at -30 RL (reduced level) in the main Dolphin pit, and production drill assay results confirm the presence of high-grade ore in the mining blocks (is) scheduled for June.”

Group 6 has also made progress in sustainability. It, along with Climate Capital, has been looking into integrating a 7.5 megawatt solar panel array and a 5.5 megawatt hour battery storage system at the Dolphin mine’s power plant.

Climate Capital has finished power modelling and an extensive site assessment. If implemented, the solar power system would sit adjacent to Group 6’s process plant.

Group 6 and Climate Capital are expected to negotiate a power purchase agreement under a build own operate model to deliver the solar project.

After being closed for three decades, the Dolphin tungsten mine officially re-opened in August 2023. It is located near Grassy, a town on the south-east coast of King Island.

Sandvik Carbide Recycling Program

ALEXANDRA EASTWOOD

Image: Sandvik

The Sandvik Mining and Rock Solutions rock tools team are helping to set the industry standard for circularity of rock tools and their operations.

Currently, Sandvik is one of the only original equipment manufacturers (OEMs) who recycles tungsten carbide across the world through its Carbide Recycling Program to preserve and protect remaining reserves of tungsten, a rapidly declining resource.

So far, the program has supported Sandvik to reduce its own transport CO2 footprint within this area by roughly 93 per cent, and by using recycled materials for new tools, Sandvik uses approximately 70 per cent less energy and reduces this portion of CO2 by approximately 64 per cent.

Watch the video below find out how the program supports Sandvik’s and its customers journeys towards more sustainable mining operations for future generations.

MACA secures iron-clad contract

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Altas Iron’s Sanjiv Ridge iron ore site, nearby Miralga Creek. Supplied: Atlas Iron.

MACA has locked in a major contract at Atlas Iron’s Miralga Creek iron ore project in the Pilbara region of Western Australia.

The mining, civil and mineral processing contractor will provide mining and drill and blast services at the mine, continuing a 15-year partnership between the companies.

The contract announcement was made by Thiess, which has owned MACA since 2022.

“This contract will see the business further embed our presence in the Pilbara’s rich iron ore industry, all while working alongside a client that has played a large role in MACA’s expansion,” Thiess Group executive chair and chief executive officer Michael Wright said.

Miralga Creek becomes MACA’s second active Atlas Iron contract, situated in close proximity to Sanjiv Ridge, a project awarded to MACA in June 2020 providing infrastructure, drill and blast, and load and haul services.

Operating at the project since mid-March under a letter of intent, MACA has since mobilised a fleet of excavators, trucks, drills and associated support equipment, as well as a 45-person workforce to ensure minimal operational downtime.

“Since 2009, we have proudly worked with Atlas Iron, consistently delivering our capability and flexibility to meet production goals.” Thiess Group executive – Australia West David Grieg said.

“Securing the Miralga Creek contract is a strong signal of MACA’s capability in delivering our promise of performance in a range of highly technical applications.

“With over 20 years’ operating in the Western Australian landscape, new contracts with both existing and former clients remain the ultimate testimonial of our performance.”

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International Graphite welcomes US tariffs

OLIVIA THOMSON

Drilling operations at the Springdale graphite project in WA. Image: International Graphite.

International Graphite has welcomed the US’ decision to impose tariffs on a range of Chinese imports, including batteries, battery components and parts, and critical minerals.

Earlier this week, the US Government announced the tariff rate on natural graphite and permanent magnets from China will increase from zero to 25 per cent in 2026, and the tariff rate for other critical minerals will increase from zero to 25 per cent in 2024.

The tariff rate on electric vehicles (EVs) will also increase from 25 per cent to 100 per cent in 2024, meaning EVs that use Chinese graphite for battery components will not be eligible for the Inflation Reduction Act (IRA) tax incentives.

The IRA legislation encourages innovation by giving firms various demand- and supply-side incentives to invest in developing and deploying clean energy technologies, while helping the country transition to net-zero.

“Despite rapid and recent progress in US onshoring, China currently controls over 80 per cent of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining,” the US Government said.

“Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk. In order to improve US and global resiliency in these supply chains, (the US Government) has invested across the US battery supply chain to build a sufficient domestic industrial base.”

International Graphite said graphite from its Springdale project in Western Australia will be free of US tariffs and Springdale customers will be eligible for IRA incentives as per the free trade agreement between Australia and the US.

“The timing of US tariffs coincides with the dates we expect to bring our Springdale mine into production,” International Graphite managing director and chief executive officer Andrew Worland said. “It is also the point at which world markets are expecting graphite demand to exceed supply.

“Our plan for a vertically integrated mine to market graphite business from Western Australia, fits perfectly with the goals of the US to reduce its reliance on China and secure other sources of trusted, reliable graphite.

“We have shown that Springdale has the potential to be a multi-decade, low-cost operation that will produce high quality graphite concentrates specifically for lithium-ion batteries.”

International Graphite also welcomed the Federal Government’s $8.8 billion investment over the next 10 years to strengthen the critical minerals supply chain as part of the A Future Made in Australia plan.

The Springdale graphite project in located in the Ravensthorpe region of WA. Since International Graphite took ownership of the project in 2022, it has grown to become one of the top 15 graphite deposits in the world.