BHP has produced the first nickel sulphate crystals from its Kwinana nickel sulphate plant south of Perth in Western Australia.
Nickel sulphate is a key material in the lithium-ion batteries that power electric vehicles (EVs), with more than 85 per cent of BHP’s current production sold to the future-battery supply chain.
The production follows an announcement in July that BHP will supply Tesla with nickel from its Nickel West assets in a collaboration which will aim to make the battery supply chain more sustainable.
According to BHP, the nickel sulphate plant is an Australian-first and will produce 100,000 tonnes of nickel sulphate per year when fully operational.
Nickel from BHP’s mines is processed at the Kalgoorlie nickel smelter, before it is transported to the Kwinana nickel refinery and refined into nickel metal in the form of powder or briquette.
The powder is then processed through the new sulphate plant to make nickel sulphate and will be exported to global battery markets from Fremantle port.
BHP Nickel West asset president Jessica Farrell said the plant is expected to produce enough premium nickel sulphate to make 700,000 EV batteries each year.
“The plant will create 80 new direct jobs and support 400 new indirect jobs, in addition to the 200 construction jobs that were created during the construction phase,” Farrell said,
“High quality and sustainable nickel is essential for our customers, and we expect demand for nickel in batteries will increase by 500 per cent in the next decade.
“Our investment to upgrade the refinery to produce high purity nickel sulphate, along with nickel powder and briquettes, will enhance Nickel West’s position as a supplier of choice for the growing global electric battery market.”
Over half of the plant was fabricated in Western Australia using local skills and suppliers including the steel work, fibreglass leach vessels and stainless steel tanks.
The plant consists of leaching tanks, purification technology, a crystalliser and dryer, and an automated packaging system.
BHP’s Nickel West employs over 2500 people and its operations include a fully integrated mine-to-metal business.
This includes open cut and underground mining operations in Western Australia; concentrators at Mt Keith, Leinster and Kambalda; a smelter at Kalgoorlie that produces nickel-in-matte; and the Kwinana refinery.
BHP has partnered with exploration technology company KoBold Metals in the hunt for Western Australian metals and critical minerals to be used in clean energy technology.
The Silicon Valley-based start-up has been backed by major venture capitalists and entrepreneurs including Bill Gates, Jeff Bezos and Michael Bloomberg.
KoBold chief executive officer Kurt House said the alliance would combine KoBold’s technological expertise with BHP’s extensive knowledge of the Australian landscape.
“BHP has the highest standards for operational excellence and unparalleled troves of data from more than 130 years as a mining industry leader,” House said.
“Combined with our Machine Prospector technology, BHP and KoBold will work to identify new sources of the critical raw materials needed for the electric vehicle and renewable energy revolutions.”
KoBold’s Machine Prospector analyses large datasets which are initially compiled using its TerraShed technology. BHP hopes these innovations can uncover ore resources deeper than previously explored.
BHP Metals Exploration vice president Keenan Jennings said the company was open to all kinds of new technologies if they led to Australia’s next big metals discovery.
“Globally, shallow ore deposits have largely been discovered, and remaining resources are likely deeper underground and harder to see from the surface,” Jennings said.
“We need new approaches to find the next generation of essential minerals, and this alliance will combine historical data, artificial intelligence and geoscience expertise to uncover what has previously been hidden.”
The partnership was inspired out of BHP Ventures, which seeks out up-and-coming businesses like KoBold and taps their true potential in the resources sector.
BHP Ventures head Mark Frayman said KoBold ticked all the boxes as a promising partner for BHP.
“We are excited to partner with KoBold. Their powerful platform combined with our in-house capabilities and datasets could unlock an enduring competitive edge as we grow our options in future-facing commodities like copper and nickel to meet increasing global demand,” Frayman said.
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The Century zinc mine. Image: New Century Resources
New Century Resources will receive seven petajoules (PJ) of natural gas over the next three years from Australian energy company Senex to support the mining company’s zinc production.
The natural gas will be supplied to APA Group’s Diamantina Power Station in Mount Isa, generating the power required to operate the Century mine located approximately 250 kilometres north-west of Mount Isa.
Commencing in January, the three-year agreement will see Senex provide its seven PJs of natural gas at a fixed price, in line with current market levels.
As New Century looks to increase its production levels associated with the potential development of existing deposits at the Century Mine, Senex will further supply around one PJ of additional natural gas at New Century’s request by mid-2022.
Senex managing director and chief executive officer Ian Davies said the company was proud to establish ties with such a strong Queensland customer.
“Century mine generates significant state royalties and export earnings, and is a critical project in the Queensland Government’s strategic blueprint for the North West Minerals Province,” he said.
“Senex looks forward to building another strong, long-term and mutually-beneficial relationship that supports jobs, the economy and helps meet Australia’s energy demand as it transitions to a lower-carbon future.
“Senex also acknowledges APA as an important part of the value chain delivering energy to Mount Isa.”
Employing more than 250 people in the production of zinc concentrates, New Century exports to 12 smelters on three continents.
The agreement continues Senex’s evolution as a natural gas provider. Since 2019, the company has signed 10 major natural gas supply agreements, linking up with the likes of Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.
Dawson coal mine near Moura, Queensland, operated by Anglo American and Mitsui companies. Image: ABB
ABB has launched its ABB Ability eMine, a new portfolio of electrification technologies set to fully facilitate all-electric mines from pit to port.
The zero-carbon mine solution can electrify mining equipment across hauling, hoisting, grinding and material handling, and has been furnished with digital applications to monitor and optimise energy usage.
From 2022, the Ability eMine will be accompanied by ABB’s new Ability eMine FastCharge technology, an innovation further accelerating charging for electric haul trucks with up to 600 kilowatts of power.
Currently in its pilot phase, the Ability eMine FastCharge is being designed to weather the harshest environments, aiming to provide haul trucks charging accessibility anywhere on site.
While charge time depends on a haul truck’s battery capacity and operational profile, the eMine FastCharge has shown it can achieve a suitable state of charge in 15 minutes.
The Ability eMine also comes alongside its own Ability eMine Trolley System, aimed at reducing diesel consumption by up to 90 per cent.
ABB global head of mining Max Luedtke said the Ability eMine forms part of a larger motivation for the company.
“The global mining industry is undergoing one of the most significant and important transformations of our generation – and that is to become zero-carbon,” he said.
“ABB Ability eMine is an exciting milestone to help convert existing mining operations from fossil fuel energy to all-electric. Mines can become ever more energy efficient with vastly reduced levels of carbon dioxide emissions, while at the same time staying competitive and ensuring high productivity.”
ABB Australia head of mining Nik Gresshoff said Australian mining organisations need to start thinking more strategically about their operational sustainability.
“The pressure on Australian mining companies to become more sustainable has intensified,” Gresshoff said.
“Every company is asking the question: how do we get to net zero emissions? We are committed to lead the sustainable decarbonisation within the Australian mining sector through the energy transition while leveraging the ABB Ability eMine solutions.”
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The Western Australian Government has released its mineral and petroleum resources development strategy, prioritising six points including regional areas, exploration and streamlined approvals.
The first strategic priority is to cement the state as a leading global destination for exploration investment.
The report stated this will be achieved through the Government’s Exploration Incentive Scheme (EIS) which has generated $31 million in benefits to the State for every $1 million invested in the scheme.
Minister for Mines and Petroleum Bill Johnston said the Government must tend to several issues to encourage further investment.
“Central to this strategy is promoting our comparative advantages and investment opportunities, catering for current and future skills gaps, facilitating access to infrastructure, and investing in research and development,” Johnston said.
Research and development are discussed in the report’s fourth strategic priority: an evolving industry.
The report acknowledges the industry’s shift towards different commodities and parts of the supply chain, such as precious metals refinery.
The report uses Alcoa and South32’s alumina operations, IGO/Tianqi Lithium’s Kwinana facility, and BHP’s Nickel West battery metal supply as examples of the state’s ability to facilitate future-focussed mining and minerals operations.
“We expect demand for WA’s minerals to continue to grow, driven by the global transition to a low-carbon future and an increasing demand for electric vehicles,” Johnston said.
A major push to effectively regulate the industry was also a feature of the report, with multiple strategic priorities relying on the state doing so.
“The State Government recognises that an efficient and effective regulatory framework is essential for providing industry with the certainty required to make investment decisions, and is committed to support measures to streamline regulation while not compromising on environmental and social standards,” the report stated.
The most recent of the Government’s efforts in this area came in the form of Streamline WA which was launched in 2018 to enable easier business across the state.
The report also gave examples of major operations given the go-ahead in recent years.
“The ability of Western Australia’s regulatory system to allow for the expeditious approval of new mining operations has been demonstrated in recent years through the development of mines including IGO Limited’s Nova nickel-copper-cobalt project and Beacon Minerals Limited’s Jaurdi gold project,” the report stated.
Western Australian Premier Mark McGowan said the opportunities were significant for the State’s resources sector and wider economy.
“The opportunity to continue to grow and diversify our resources sector as a significant contributor to global advancements in the digital age, and the shift to reducing greenhouse gas emissions, are immense, and are expected to continue to provide outstanding economic and social benefits to the community well into the future,” McGowan said.
To read the report and learn more about WA’s resources strategy, click here.
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Mineral Resources has sold its 5.4 per cent stake of Pilbara Minerals in an effort to focus on its hard-rock lithium and iron ore assets.
Mineral Resources has been a shareholder in Pilbara Minerals since October 2016 as part of its offtake rights and a royalty held of the Pilgangoora lithium-tantalum project in Western Australia.
Its 8 per cent stake in Pilbara Minerals at the time was valued at $50 million, with the $328 million divestment representing strong value.
(“Mineral Resources) is delighted with the share price value delivered by Pilbara Minerals’ development of Pilgangoora but believes it is time to redirect this investment into the company’s own growth projects, including in the hard-rock lithium and iron ore sectors,” Mineral Resources stated.
The $328 million divestment was completed through an underwritten accelerated block trade to institutional investors.
Pilbara Minerals share price on the ASX is $2.26 at the time of writing.
The transaction will support Mineral Resources’ $650 million capital expenditure program for the 2021-22 financial year.
Mineral Resources expects costs to increase by 5 to 10 per cent at its Yilgarn Hub in Western Australia, with exports of 10.5 million to 11 million tonnes of iron ore.
This includes the Koolyanobbing iron ore mine and Carina mine, which is currently under care and maintenance.
The company also operates the Utah Point hub, which is expected to ship 10.5 million to 11 million tonnes of iron ore.
Mineral Resources hard-rock lithium projects include the Mt Marion and Wodgina spodumene projects, owning 50 per cent and 40 per cent, respectively.
The company is expecting to ship 450,000 to 475,000 tonnes of spodumene from Mt Marion in the 2022-23 financial year, while Wodgina remains on care and maintenance.
Wodgina is one of the largest hard rock lithium deposits globally, and is operated under a joint venture with Albemarle who owns the remaining 60 per cent interest.
Mineral Resources is also constructing the Kemerton lithium hydrogxide project in Western Australia with Albermarle, owning a 40 per cent interest.
BHP will supply nickel for Tesla’s electric vehicles.
Industry leaders predict critical minerals for battery technologies will lead to significant opportunities for the nation’s growing resources sector.
Australia is expected to be at the forefront of the electric vehicle (EV) boom with key industry figures signalling that a combination of critical minerals for battery production and increased demand for the vehicles will create an enormous opportunity.
BHP Market Analysis Economics vice president Huw McKay, in the company’s first-half economic and commodity outlook, says EVs are expected to constitute around 17 per cent of the light duty vehicle fleet by 2035 and around 41 per cent of annual sales.
“While the collapse in auto sales activity under COVID–19 (from already low levels) also hit EVs, they bounced back hard in the second half of calendar 2020,” McKay says.
“Annual sales passed three million units for the first time, representing 37 per cent growth year on year.
“The 17 per cent fleet share we now project in 2035 translates to 314 million EVs on the road, versus 275 million previously.”
Tesla chair Robyn Denholm, speaking at the Mineral Council Australia’s minerals week event in June, explains that each EV has around $5000 worth of minerals, with Australia capable of supplying almost all of it.
“Australia is the only country in the world with resources in all three of the critical battery metals, as well as other minerals required for the clean energy transition,” Denholm says.
“By 2030, the value of the global lithium-ion battery market is forecast to be $400 billion. That’s eight times the revenue generated by Australia’s coal exports in 2020.”
Federal Minister for Industry, Science and Technology Christian Porter says Australia is well placed to capitalise on growing global demand for battery systems and the critical minerals associated with their production, with the energy storage market expected to be worth almost US$20 billion ($27.2 billion) by 2027.
“Australia’s resource sector is world-class. Through our $1.3 billion Modern Manufacturing Initiative, we are helping to unlock this enormous potential by providing targeted support for projects that will deliver big rewards for our local economy in terms of export earnings and new job opportunities,” Porter says.
“It is also critical that we build our sovereign capability in this sector, with China currently the world leader in critical minerals processing including battery production.
“Whether it’s building large-scale battery systems, adding value to critical minerals exports through new refining techniques, or driving the adoption of battery power in mining vehicles, these projects will increase Australia’s international competitiveness and help position us a future leader in this crucial sector.”
Image credit: BHP.
Australia’s nickel production will be a crucial part of this supply chain and price forecasts are already starting to reflect the metals promising future.
In its June nickel price revision, Fitch Solutions predicts the 2021 average price forecast for nickel will rise from US$15,750 per tonne to US$16,500 per tonne.
According to its Nickel Prices – Upwards Revision Amid Strong Demand report, Fitch Solutions expects nickel prices will trade lower than present levels in the coming months, as demand from steel production stabilises and nickel metal production ramps up.
Prices (at the time of writing) have recovered from a steep price correction in March which occurred after an announcement that Chinese stainless-steel producer Tsingshan plans to bridge the NPI to battery-grade nickel divide by the end of 2021 and substantially increase nickel production for both 2022 and 2023.
Subsequently, nickel prices fell to US$16,450 per tonne. In May, prices reached a four-week low in response to Chinese regulators warning domestic commodities firms to keep the market fair after base metals experienced a strong rally.
Prior to the Tsingshan announcement, nickel prices had progressed to multi-year highs on the back of increased optimism in the market, a weakening dollar and expectations about future nickel supply deficits.
Fitch Solutions also predicts that the EV market will be a source of growing demand as the use of nickel in lithium-ion battery compositions increase.
“China will once again be a key source of demand in this respect, particularly as manufacturers begin to use higher nickel content batteries in their EVs,” Fitch Solutions states.
“We expect this trend to begin taking hold over the coming years as consumers favour EVs with longer driving distance capabilities before recharging, making nickel-based battery compositions the optimal choice for vehicle producers.”
According to Denholm, Australia has a competitive opportunity to enhance its environmental, social and governance (ESG) practices for the future as the global market for electric vehicles grows.
“Tesla is the world’s largest manufacturer of electric vehicles and battery storage systems,” Denholm says.
“At the heart of everything we do in our quest to accelerate the transition to sustainable energy is the lithium-ion battery – one of the most important technologies of the century.
“There is a global transition to sustainable energy underway and this presents a huge opportunity for Australia.”
In July, BHP agreed to supply Tesla with nickel from its Nickel West assets in Western Australia in a collaboration which will aim to make the battery supply chain more sustainable.
Western Australian Mines and Petroleum Minister Bill Johnston says the agreement highlights that the state hosts the best quality raw materials integral to the world’s decarbonisation efforts.
“It also reinforces the level of comfort global brands have in investing in the state knowing that raw materials are responsibly sourced,” Johnston says.
“As investors and the community are increasingly holding mining companies to the highest ESG standards and practices, the supply agreement between BHP and Tesla reflects the regulatory framework in place in Western Australia that ensures the sustainable production of battery materials.”
Denholm believes Australia should prioritise onshore refining of its lithium to save costs and reduce emissions.
“There’s another reason for Australia to prioritise onshore refining; it’s a huge economic opportunity,” she says.
“Tesla estimates that last year, Australia supplied approximately 49 per cent of the world’s lithium ore – spodumene – but zero per cent of the refined product suitable for battery cells. That lithium sold for about $US100 million – but if it was processed onshore in Australia the value would have been more like $US1.7 billion.
“So that’s a $US1.6 billion annual opportunity and growing.”
This story also appears in the August issue of Australian Resources & Investment.
FLSmidth has agreed to purchase thyssenkrupp’s Mining Technologies business (TK Mining) for €325 million ($522.28 million) to create a pit-to-plant technology solution with a sustainable focus.
The deal was highly amenable as both companies had complementary interests in transforming their businesses.
FLSmidth is a Danish company which serves over 60 countries with engineering, equipment and service solutions for minerals, metals, concrete, electronics and more.
FLSmidth chief executive officer Thomas Schulz said the addition of TK Mining’s prowess in mining systems, materials handling and processing would complement his business.
“TK Mining and FLSmidth are a perfect match and I am proud to announce this agreement to join forces,” Schulz said.
“This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool, and one of the world’s largest and strongest suppliers to the mining industry.”
The deal will welcome 3400 TK Mining employees to FLSmidth, once regulatory requirements are completed within the next 12 months.
As a multinational group of industrial and technology businesses, thyssenkrupp saw the deal not as a loss, but a shedding, to allow it to strengthen other business areas, according to the company’s chief executive officer Martina Merz.
“The successful sale of the mining business shows that we are pressing ahead at full speed with the transformation of thyssenkrupp and achieving important results step by step,” Merz said.
“But we have not yet reached our goal. The principle ‘performance first’ continues to apply. We need to return to positive cash flow as quickly as possible. The sale of Mining Technologies makes an important contribution to this,”
Merz added how FLSmidth was the perfect partner, with similar ideals and goals for TK Mining.
“At the same time, I am pleased that we have found a very good new owner in FLSmidth. FLSmidth presented a convincing business strategy and a clear vision for the mining business,” she said.
“It will give our employees attractive prospects. That was extremely important to us when negotiating the sale.
“The merged new company will be able to drive innovation and digitalisation even faster and will increasingly focus on sustainability and ways to reduce environmental footprint.”
FLSmidth saw the deal as an opportunity to advance its MissionZero targets, which look to eliminate company carbon emissions by 2030.
“TK Mining’s extensive active installed base, together with FLSmidth’s strong existing service setup, will provide additional aftermarket opportunities, while the joint R&D (research and development) capabilities and combined portfolio will enable accelerated innovation in digitalisation and MissionZero solutions,” FLSmidth stated.
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The Pilgangoora operation. Image: Pilbara Minerals
Pilbara Minerals is closer to upgrading its Pilgan plant at the Pilgangoora lithium project in Western Australia, with surging sales and shipments supporting the project.
Despite producing almost 700 tonnes less than the March quarter, Pilbara shipped a record 95,972 dry metric tonnes (dmt) of spodumene concentrate and exceeded its target of 75,000 – 90,000dmt.
Pilbara Minerals managing director Ken Brinsden said in the June quarter’s results presentation that the market for spodumene concentrate was developing in ways not seen for several years.
“We think Pilbara Minerals is incredibly well-placed to be able to participate in this next phase of growth that’s going on in the industry,” Brindsen said
“We would like to think we have the right combination of productive plant capacity, skills amongst the team to maximise the performance of those facilities – and that shouldn’t be underestimated because that is very hard-won in the lithium industry.”
The company produced 77,162dmt and sold a record 109,190dmt of spodumene concentrate for the June quarter, some of which was loaded late in the previous quarter.
Pilgangoora has two plants at different stages of operation – the Pilgan plant and the Ngungaju plant.
The former currently operates at around 350,000 tonnes per annum and is set for a 10-15 per cent improvement project during the September quarter.
The latter is set for a stated restart during the December quarter, as Pilbara Minerals targets up to 200,000dmt by mid-2022.
This would see the company producing up to 580,000dmt once everything is up and running at full capacity, while future improvements to the Pilgan plant aim to push Pilgangoora to be a one million tonne per annum operation.
With such promise on the horizon at Pilbara Minerals, Brinsden said an offtake agreement with Korean manufacturer POSCO was progressing.
“We are still optimistic in both the value in that relationship and the skills of the POSCO team,” Brinsden said.
“We have been frustrated by progress…but nonetheless we are optimistic about the progress of that deal and its relevance to the growth of Pilbara Minerals. We expect to see that progress during the course of next month (August).”
POSCO recently signed an offtake agreement with Queensland Pacific Metals for 3000 tonnes of nickel and 300 tonnes of cobalt per year from the Townsville Energy Chemicals Hub (TECH) project.
The Korean company has also signed a memorandum of understanding (MOU) with Rio Tinto to develop low-carbon emission technologies for iron ore mining, further exemplifying its commitment to decarbonisation across a range of commodities.
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