Category: Mines and Quarry

Undersea mining has made a leap forward with the development and testing of a new machine in the UK.

Proactive Investors flagged the announcement from Specialist Machine Developments, a UK company that was acquired last year by a subsidiary of China’s CRRC Zhouzhou Institute.

Land-based testing of the 310 tonne deep sea ore harvester was recently completed in Newcastle.

Details are sketchy, but the new machine was touted as the world’s most powerful to date, boasting two megawatts of power and capacity for underwater oil and gas, trenching and cable laying applications.

The equipment is designed to be used in conjunction with a cutting machine and collecting machine to engage in mining activities.

A new survey is forecasting a growth in equipment related technology by Australian miners in the next two years.

The latest Timetric Mining Intelligence Centre survey predicts a boom in safety, maintenance, and productivity related technology.

“A substantial share of Australian mines have already invested in environmental monitoring, fleet management and predictive maintenance technologies, with tyre monitoring, collision avoidance and remote control/machine automation to be the key areas for future investment,” Timetric stated.

The group surveyed 100 mine managers and other decision makers across operating Australian mines late last year, asking respondents to identify which of 12 different mine site technologies they have invested, and will invest, into.

These technologies included fleet management, environmental monitoring, energy management, and collision avoidance technology, as well as drones and wearable technology.

“The results show the highest share of respondents (88 per cent) have invested in environmental management technologies, followed by an assembly of technologies focused around the vehicles and mobile equipment on a mine site,” Timetric said.

“Five other technologies in which more than 80 per cent of respondents’ have invested are fleet management (85 per cent), predictive maintenance (85 per cent), tyre monitoring (83 per cent), scheduling and shift optimisation (81 per cent) and collision avoidance technologies (80 per cent).”

The respondents also pointed to a greater focus in vehicle technology.

“Over the coming two years, significant shares of those yet to invest are expected to make investments in tyre monitoring (53 per cent of those yet to invest), collision avoidance and proximity detection (50 per cent), and remote control and machine automation technologies with 48 per cent,” Timetric said.

“In total over the next two years, 92 per cent of mines are expected to have tyre monitoring technology implemented, some 90 per cent will have collision avoidance technologies and 77 per cent will have implemented remote control and machine automation on site.”

Commenting on the results, Timetric senior analyst, Nez Guevara, said “the results show the Australian mining industry recognises environmental accountability, social responsibility and commercial success are not inseparable.

“Monitoring the sustainability of a mine operation covers its entire life cycle, from exploration and feasibility, to decommissioning and closure.

“The speed at which companies can adapt to become more efficient is crucial for success in an industry that now maintains a tight grip on capital and operational expenses. This is more of a necessity at present, as low commodity prices affect the industry globally,” he said.

“Improvements in technology can change the way companies view mineral deposits, improve operational safety and manage overall costs.”

Despite the apparent normalisation of low commodity prices, the Federal Government has predicted mining exports earnings to grow by more than 40 per cent by 2019-2020.

The release of the Department of Industry, Innovation and Science Resources and Energy Quarterly report in the December quarter showed the mining sector’s contribution to the GDP over the past decade had increased from six to nine per cent, an upswing of 50 per cent.

The department expects resources and energy earnings of $166 billion in 2015-16, down on the previous year by four per cent due to lower commodity prices.

Chief economist Mark Cully said the low price conditions that characterised 2015 were forecast to persist in the short term, and that any prospect of recovery in that time frame was limited.

“On the home front, Australia’s production of most commodities has continued to increase despite lower prices,” he said.

“The rapid increase in mining output is expected to underpin the production phase of the boom and provide some support to export earnings.

“However, the increase in volumes is unlikely to be sufficient to offset the effect of lower commodity prices across the board.

The completion of LNG projects in Queensland and WA are expected to increase Australian exports by 45 per cent, worth an additional $20 billion this financial year.

Iron ore export volume, contributed to by the newly exporting Roy Hill mine and expanding production at other mines, was forecast to grow by 13 per cent in 2016.

World steel production, despite slowing in 2015 with less demand driving prices lower, is expected to stabilise in 2016 and return to growth, with a projected increase of 0.9 per cent worldwide.

Although China’s demand for steel will continue to slow, this will be offset by increased demand in India (by six per cent), the EU (1.2 per cent) and USA (1.5 per cent).

Australia’s steel consumption in the September quarter was down seven per cent on the previous year, and down 44 per cent of demand ten years earlier, thought to be at the expense of domestic production rather than imports.

The report also identified that Australia exports around 56 per cent of the world trade in iron ore, while projections indicate we will also soon become the world’s largest exporter of coal and LNG.

exploration expenditure faltered in 2015, continuing an ongoing trend of unemployment in the sector, with an overall decline of 32 per cent in the September quarter bringing total expenditure down to $977 million, boding poorly for new greenfields projects in the coming years.

The largest decline in exploration was recorded in South Australia, which was down 57 per cent year-on-year.

In terms of capital expenditure the mining sector slowed spending by 29 per cent in the September quarter year-on-year.

Mining sector employment was estimated at 220,000 people in November 2015, down only two per cent on the previous year.

BHP has marked a new milestone in their coal sector expansion as BMA opened the new third berth at the Hay Point coal export terminal yesterday.

Queensland Premier Annastacia Palaszczuk attended the official opening ceremony with BHP coal president Mike Henry and Mitsubishi Corporation COO for the mineral resources investment division Rick Tanaka.

The premier said coal exports had reached a record 219 million tonnes last financial year thanks to such investments.

“I want to thank BHP Billiton and Mitsubishi for their confidence in the Queensland coal export market and their contribution to the Queensland economy, despite coal prices having declined markedly in recent years,” she said.

Hay Point has been in operation since 1971, and the $US3 billion third berth and ship loader has been under construction since 2011.

At peak construction in 2014 the project employed 1630 people, with more than 12.6 million hours worked.

The new infrastructure has increased the Hay Point Coal Terminal capacity from 44 million to 55 million tonnes per annum.

Mike Henry said the recently completed terminal project reflected BHP Billiton’s confidence in the long-term outlook for metallurgical coal.

“BMA is the world’s largest exporter of seaborne metallurgical coal and employs 9,000 Queenslanders. The opening of the HPX3 project is a significant milestone,” he said.

“Importantly, the increased capacity at HPX3 will enhance our ability to run an even more productive value chain.

“Through its design features, the project has also improved the Port’s ability to withstand significant weather events, improving the resilience of the BMA business and enhancing customer confidence in the reliability of supply from BMA and Queensland.”

Stanmore Coal is edging closer to re-opening the Isaac Plains mine near Moranbah, with 150 job opportunities soon to come for local workers.

With the opening scheduled for February 2016, Stanmore Coal has not specified whether the mine will require FIFO workers.

Isaac Plains was put into care and maintenance by joint owners Vale and Sumitomo in September 2014, when 300 workers lost their jobs.

Isaac Plains will be opened at a reduced capacity of 1.1 million tonnes per annum, compared to the 2014 output of more than 2 million tonnes per annum.

Stanmore bought Isaac Plains for a peppercorn fee of $1 earlier this year, under agreement to take on contractual obligations including $32 million worth of mine rehabilitation.

In 2011 Sumitomo paid $430 million for Aquila’s 50 per cent stake in the mine, in expectation of good returns, however it accepted the loss at the mine’s closure as am $11 million writedown on its other Australian investments.

Isaac Plains will have a three year lifespan, however Stanmore have plans to open a new operation called Isaac Plains East.

Nickel, copper, and zinc have been picked as the metals to watch next year.

A new report by Morgan Stanley analysts have labelled the metals, which saw steady slumps throughout 2015, as the top picks, according to Bloomberg.

We are stubborn nickel bulls in 2016,” the report stated.

They forecast a nickel average of $10,692 per tonne next year, zinc at $1747 a ton and copper at $5236 a ton.

Speaking to ANZ senior commodities strategist, Daniel Hynes, he told Australian Mining the outlook for base metals into next year is positive.

“The outlook is better…the oversupply is not as bad as the bulk markets [such as iron ore],” he said.

“We’ve seen the start of a readjustment in base metal supply, but the market has not been that interested to date.

“They’ve been lost amongst the noise [of coal and iron ore], but the fundamentals are better, and for nickel and zinc we expect a market in deficit next year, but as always the poster price depends on Chinese demand.”

Morgan Stanley stated that it continues “to see only a modest abatement in China-led commodity demand growth, not the capitulation that year-to-date price performances imply”.

“The fact that economic activity everywhere remains buoyant, commodity-trade flows are intact, and that producers are rapidly rebalancing their trades in reply to shock-low prices tells us that downside price risk is limited.”

Credit Suisse has also backed nickel, expecting a dearth of the metal as operators will be cutting supply “given the scale of losses that producers are incurring”.

Cut to Size Plastics presents an internationally proven range of hard-wearing cast polyamide engineering plastics from its Wearlon family, formulated to reduce wear and maintenance and enhance safety in a wide range of machinery and industrial equipment.
LiNNOTAM cast polyamides from international manufacturer and fabricator of engineering plastics Licharz are part of the Wearlon range of engineered plastics suitable for OEM use and metal replacement in applications involving transmission of mechanical force and minimising friction. The Wearlon range of engineered plastics benefits a wide range of applications including cranes and lifting equipment, materials handling machinery such as conveyors as well as fixed and mobile plant extending from mineral processing equipment and power generation technology through to mining draglines, heavy transport, implements, construction equipment, food processing equipment, and primary product processing equipment for timber and paper.
Available in various grades for different purposes, Wearlon LiNNOTAM metal-replacement materials not only offer a long service life but can also be easily machined to custom-fabricated shapes. Cut to Size manufactures components such as sheaves, rollers, gears and wear components for applications across Australasia at its Sydney head office, which is equipped with CNC machining facilities coupled with GibbsCAM and Solidworks software.
Cut to Size NSW Manager Mr Pat Flood explains that steel wire ropes are important and highly stressed machine elements in force transmission and conveying technology with large plants relying on their performance not only for efficiency but also safety. Wearlon can extend their lifespan and enhance safety by reducing maintenance and preserving structural integrity for longer.
Wearlon engineering plastics offer several benefits including rope-conserving elasticity; compression fatigue strength; high wear resistance; toughness also at low temperatures; resistance to lubricants; and high resistance to weathering effects.
According to Mr Flood, wire ropes are stressed by fluctuating forces, wear, corrosion and extreme forces. Ropes that run over sheaves made from metallic materials are subject to high stress due to the surface pressure occurring between the rope and the groove. When the rope rolls over the sheave, only the outer strands lie on the groove, resulting in wear in the form of individual strands breaking or, more serious rope breakage.
However, sheaves made from Wearlon engineered plastics prevent wear on steel wire ropes thanks to their elasticity. The pressure between the rope and the roller in the combination steel rope/polyamide roller is around 1:10 compared to steel rope/steel roller, which can be attributed to the visco-elastic behaviour of polyamide. It is not just the outer strands that lie in the groove, but almost the whole projected strand width, reducing surface pressure between the rope and the roller and considerably extending the life of the rope.
The cast polyamides of the LiNNOTAM members of the Wearlon family can be produced as semi-finished products or near net shape components and are virtually free of internal stress. Cut to Size offers a large selection of shapes, weights and dimensions.

Struggling miner BC Iron has announced a temporary halt to production at the Nullagine Joint Venture (NJV).

Citing the continued decline of the price of iron ore, BC announced to the market last week that it was not in the best interests of the shareholders to for NJV to continue in its current form.

The tough decision will see 25 per cent FMG joint venture suspended progressively over December and January, with exports completed during January.

It has been suggested that BC will sell its unprocessed 11 million wet metric tonne stockpile to FMG under a mine gate sale arrangement, albeit at a reduced rate.

Managing director Morgan Ball said BC was a “price taker” and that despite successful cost reductions by staff and contractors the market had forced this unfortunate decision.

“I would like to thank our joint venture partner, Fortescue, for their strong contribution to the success of the NJV over the last five years of operations and also the West Australian Government for its willingness to work with and support the resources industry,” he said.

“Most importantly, I thank all of our committed employees and contractors who have worked so hard to build the NJV to a 6Mtpa operation and worked even harder again during the last 18 months to maintain BC Iron’s competitive position in a very challenging market.”

Production crews at the Bootu Creek manganese mine have been laid off as the mine is placed into care and maintenance.

Around 45 workers have lost their jobs at the Northern Territory mine, which was staffed by 200 people, mostly FIFO workers.

The redundancies were reported to the ABC by an anonymous worker, who said staff were informed last Friday the mine would be placed into care and maintenance.

It is expected other OM Manganese operations will conclude once stockpiles have been exhausted.

OM Holdings stock prices have dropped from $0.29c in June to the current price of $0.10c.

The company has not announced the closure to the ASX, with the most recent investor presentation given at the International Ferro-alloys Conference in November showing OM Holdings was focussed on the OM Sarawak smelting plant in Malaysia

Earlier in the week the BHP spinoff company South32 announced plans to lay off more than 400 workers from manganese operations in South Africa.

Prices for manganese, a key steel-making ingredient, have continued to slump since the announcement of plans for the South32 demerger in August 2014.

Investors have been left holding the bag by BHP as South32 shares have faltered dramatically since the company launch, trailing from around $2.37 in May down to close at a record low of $1.01 yesterday.

Thiess have been awarded a four year contract extension for work at Energy Resources’ Mongolian Ukhaa Khudag coal mine.

It is understood that it will provide up to $1 billion worth of revenue for the company over the next seven years.

This latest agreement builds upon an existing eight year agreement for work at the site which includes fleet operation and maintenance for overburden stripping, coal mining and blast drilling under an alliance structure, with involvement in mine planning and health, safety and environmental management.

CEO of Thiess parent company CIMIC, Marcelino Fernandez Verdes, said this new extension builds upon the working relationship created over close to a decade.

Thiess managing director Michael Wright said the extension at UHG coal mine is a testament to its performance at the mine since work started in 2008.

“We are delighted to extend our partnership with Energy Resources LLC and to continue our focus on delivering cost efficiencies and innovation at the UHG mine. It is the quality of our people, and their commitment to safety and operational efficiencies that drive value for our client Energy Resources,” Wright said.

This win comes only a few days after Thiess won a $760 million contract to continue to operate Glencore’s Mt Owen coal mine.