An exploration program undertaken by BHP at its Oak Dam copper deposit has identified high-grades of copper deep beneath the Olympic Dam ore body, with some grades equalling more than two per cent.
The Oak Dam deposit is located 65km south-east of the Olympic Dam mine in South Australia, one of the world’s most significant deposits of copper, gold, and uranium.
Once its acquisition of OZ Minerals was finalised last May, BHP established an integrated copper province in SA’s far north by combining the Prominent Hill and Carrapateena mines with the Olympic Dam mine, smelter and refinery, and Oak Dam deposit.
“BHP has created an integrated copper province that we hope will bring the scale required to economically and sustainably produce and process more copper here in SA and deliver it to global customers,” BHP asset president copper South Australia Anna Wiley said.
“Our South Australian operations are performing well and we’ve had further exploration success.
“The Oak Dam exploration project is progressing with 12 rigs currently on site, 150 kilometres of drilling completed, a core processing facility on-site and 150-person accommodation camp nearly complete.
“We’re also exploring in an area below the known Olympic Dam deposit, known as Olympic Dam Deeps.”
Alongside further exploration, BHP is also assessing options for a new two-stage smelter at Olympic Dam that would potentially double its capacity from 0.5 million tonnes (Mt) to 1–1.7Mt and lift its copper production to about 500,000 tonnes per annum.
The South Australian Government, which approved the Oak Dam exploration program last year, welcomed the Oak Dam discovery.
“Copper is a key component in our State Prosperity Plan,” SA Premier Peter Malinauskas said.
“BHP hope to more than double the size of their smelter – which means more jobs, opportunity and greater prosperity for our state.
“There are enormous amounts of copper in our state’s north, but to extract and refine it, we need something in short supply – water.
“That’s exactly (the SA) Government is partnering with industry to progress plans for the Northern Water project, which has the potential to deliver an additional five billion dollars in economic activity to our state each year.”
BHP chief executive officer Mike Henry took to the stage at the BMO Global Metals, Mining and Critical Minerals Conference yesterday, where he revealed that the potential two-stage smelter at Oak Dam is expected to reach a final investment decision sometime between the 2025–26 and 2026–27 financial years.
Coal has emerged as the standout commodity from Glencore’s 2023 full year production report.
While copper, cobalt, zinc and nickel production all experienced a downturn, Glencore’s coal production was three per cent higher than 2022 at 3.6 million tonnes (t).
The number was a reflection of higher productivity in South Africa and a year over year easing in external factors that constrain capacity, such as wet weather and blockades.
Nickel production fell by nine per cent to 97,600t, primarily due to the planned shutdown of Glencore’s Murrin Murrin site in WA for routine maintenance.
Cobalt production was six per cent lower than 2022 at 41,300t and copper production was 48,000t lower than 2022.
Despite the slight donwturn, Glencore chief executive officer Gary Nagle remains positive.
“Overall 2023 production was in line with our earlier revised guidance, with stronger second half volumes delivered across our key commodities, including copper, zinc, nickel and coal,” he said.
“Compared to 2022, the moderately lower year-on-year copper and zinc department managed production volumes, primarily reflect disposals of the Cobar copper mine and various South American zinc operations.”
Looking ahead, Nagle said production is looking steady.
“Coal production is forecast to be steady at the guidance range mid-point of 110 million tonnes, excluding any incremental volumes from the recently announced acquisition of a 77 per cent interest in Teck’s steelmaking coal business, currently going through its various approval processes,” he said.
AusCrush commenced a 12-month contract to operate Kleemann machinery at Peculiar Knob in November 2023. Image: AusCrush
AusCrush has deployed Kleemann machines at the Peculiar Knob iron ore mine in South Australia, leading to exceptional results.
AusCrush first commenced crushing and screening iron ore at Peak Iron Mines’ Peculiar Knob operation in South Australia in November 2021.
And the mobile crushing and screening services provider isn’t slowing down.
In November 2023, AusCrush commenced a 12-month contract to operate Kleemann machinery at Peculiar Knob, a high-grade hematite iron ore deposit that has some residual magnetite.
AusCrush’s set-up comprises a Kleemann MC120PRO jaw crusher, MSS802EVO mobile reclaimer, MC0110PRO cone crusher (secondary), MSC953EVO classifying screen, MC090EVO2 cone crusher (tertiary) and a MSC953EVO classifying screen (secondary), as well as a stockpile conveyor that feeds back to the MC0110PRO for all oversize. This creates a closed-circuit loop to maximise throughput.
“We are currently producing two direct shipping iron ore products: a -32mm+13.2mm lump and a -13.2mm+0mm fines product,” AusCrush general manager Morgan Taylor told Australian Mining.
Once the ore is crushed by AusCrush, it is transported to the Whyalla Port, where it is exported for steel manufacturing.
AusCrush understood that because the feed material, the hematite ore, is a high-grade, abrasive product, it would need to be proactive about its maintenance measures.
“The feed is relatively easy for crushing but it’s very abrasive, so maintenance is of the upmost importance,” Taylor said.
“If you don’t get that right, the rock can wear a hole in the side of the hopper within hours.
“We made up four modular wear packages for all our hoppers … and we have two full-time boilermakers and two full-time heavy-duty diesel mechanics working each shift.
“We also have Wirtgen Australia on speed dial for any machinery queries or concerns.”
AusCrush has been proactive about its maintenance measures to avoid equipment breakdowns. Image: AusCrush
Maintenance personnel are set daily tasks to monitor machine components such as skirts, screens, wear plates, belt repairs, jaw and cone liners. After 12 hours of crushing throughout the day, maintenance is completed on night shift to ensure machines are ready to go for another 12-hour shift the following day. With AusCrush producing about 1.68 million tonnes of DSO product per annum, there is no time for downtime.
“We do our maintenance at night and processing during the day to ensure that if something goes wrong, we’ve got open communication with Wirtgen Australia and our suppliers to fix any issues,” Taylor said. “If we crush during the night and have a breakdown, it adds additional challenges, hence the reason for scheduling maintenance. This provides us reliable maintenance free up time during daylight hours.”
AusCrush also schedules monthly shutdowns at Peculiar Knob so machines can be overhauled and start fresh to meet the following month’s targets.
As per Wirtgen Australia advice, the company is also running 24 per cent manganese and higher chrome percentage liner sets in its jaw crushers, which has further limited equipment breakdowns by extending liner life and reducing change-out requirements.
This is improving crushing outputs to approximately 7000 tonnes per day.
The primary machine in the train, the Kleemann MC120PRO jaw crusher, supports a maximum feed size of up to 680mm, boosting production and decreasing day-works.
The MC120PRO feeds the MSS802EVO mobile screener, which has been perfect for the job given its ability to scalp two separate products: the -32mm+13.2mm lump product to one side of the conveyor and the -13.2mm+0mm fines product to the other.
This provides the MCO110PRO cone crusher with oversize feed only, providing optimised crushing conditions for the cone.
Through an inspired maintenance strategy and with the right Kleemann gear to boot, AusCrush is able to consistently produce 500 tonnes per hour, exceeding the expectations of all stakeholders involved.
After conducting a review into its Cosmos nickel mine in WA, IGO has made the decision to transition the site into care and maintenance.
The closure is expected to be concluded by the end of May this year, with IGO assessing the value of continuing work on select exploration programs in the area.
The news comes after IGO advised the company would see through the current slump in lithium prices but would reduce production at its Greenbushes lithium joint venture in WA.
“This is not the outcome anyone at IGO wanted, however we cannot ignore the operational and financial risks involved in continuing to develop Cosmos in the current environment,” IGO managing director and chief executive officer Ivan Vella said.
“We still believe there is value in Cosmos, however in this nickel environment we need to be disciplined with our allocation of capital, while retaining our optionality to restart if market conditions improve.”
IGO also released its December 2023 quarterly, reporting that both net cash and group nickel production had been reduced.
“Our industry is facing some significant challenges and uncertainty with both nickel and lithium experiencing a downturn in the cycle,” Vella said.
It is expected that there will be redundancies owing to the closure, but Vella said IGO is committed to working with its people.
“I’d like to thank the team on site who have done an outstanding job to work through the challenges, and to progress the project to where it is today,” he said.
“Prioritising and minimising the impact on our team through this process is our absolute focus and we will provide every support we can to those people affected.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
The Mount Keith operation is part of BHP’s Nickel West business. Image: BHP.
Following Wyloo’s decision to place the Cassini, Long and Durkin nickel mines under care and maintenance, BHP has announced that it will pause part of its Kambalda processing operations in Western Australia.
Wyloo is a major supplier to BHP’s nickel concentrator in Kambalda, following its $760 million acquisition of Mincor Resources last year.
Wyloo’s decision to cease mining in Kambalda means that BHP can no longer operate parts of its Kambalda concentrator.
“The decision by Wyloo to suspend its operations means it will no longer be viable to continue operating parts of the Kambalda concentrator from mid-year,” BHP Nickel West asset president Jessica Farrell told the ABC.
“BHP will transition the Kambalda concentrator’s crushing, milling and flotation circuits into care and maintenance from June 2024.”
BHP’s decision is said to result in about half of the concentrator’s workforce losing their jobs by the middle of this year.
“We will work closely with our people to support them,” Farrell said.
The Sydney Morning Herald reported that the processing plant will continue to dry concentrate from other miners.
Farrell described Nickel West as a “complex business” that combines underground mining operations, third party supply, on-site smelting, downstream refining and a multi-stage supply.
“We are looking at a range of options to remain globally competitive in a very tough operating environment,” she said.
“Costs have risen sharply and continue to go up while prices have fallen as new supply comes into the market.”
BHP revealed in its latest operational review that it was evaluating options to “mitigate the impacts of the sharp fall in nickel prices”.
“The nickel industry is undergoing a number of structural changes and is at a cyclical low in realised pricing. Nickel West is not immune to these challenges,” the company said.
“Operations are being actively optimised, and options are being evaluated to mitigate the impacts of the sharp fall in nickel prices. Given the market conditions, a carrying value assessment of the group’s nickel assets is ongoing.”
BHP is not the only miner operating in Australia to make major changes in light of recent nickel price slumps.
Chalice Mining announced yesterday that it would reduce expenditure by 40 per cent, with its managing director and chief executive officer (CEO) Alex Dorsch saying the changes will provide “flexibility to navigate” current market conditions.
First Quantum Minerals has also scaled back operations at its Ravensthorpe nickel mine in WA.
Last month, Panoramic Resources and its subsidiaries PAN Transport and Savannah Nickel Mines entered voluntary administration, with its directors appointing administrators as a result of a continuous decline in nickel prices.
Around the same time, IGO paused construction of the mechanised materials handling system at its Cosmos nickel operation.
Despite nickel headwinds currently affecting Australian miners, not all appears to be dour.
Nickel is now one of six minerals on Australia’s new strategic materials list. The list identifies commodities that are essential for the energy transition but aren’t vulnerable enough to meet the critical minerals list criteria.
Less than a month after the release of the strategic minerals list, Federal Resources Minister Madeleine King voiced support 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 ‘dirty’ nickel produced in countries such as Indonesia.
The pricing structure has been backed by Andrew Forrest and Wyloo CEO Luca Giacovazzi.
With all the recent shake-ups, the future of Australian nickel is yet to be seen.
First Quantum Minerals (FQM) will scale back its operations at its Ravensthorpe nickel mine in Western Australia.
The company said the decision is a result of the significant downturn in nickel prices experienced during 2023, combined with the currently high operating costs in WA.
Approximately 30 per cent of the 420-person workforce will be let go, with contractors to be redeployed by their employers.
FQM said it will lean on ore stockpiles to continue producing nickel, which are expected to be processed over the next 18 months.
Mining is set to resume at the Hale Bopp and Halley’s ore bodies when prices recover as part of the company’s three-year plan.
“Transitioning to a new operating model will allow us to continue to produce and export our nickel product, which is a critical mineral and has a lower carbon footprint than other suppliers,” Ravensthorpe nickel operation general manager Scott Whitehead said.
“The operational changes will ensure Ravensthorpe remains viable longer term and we will retain most of our residential and FIFO workforce, thereby supporting the communities of Hopetoun and Ravensthorpe and providing income for the region and Western Australia.
“It’s important we position ourselves to respond in a timely manner to future improvements in the nickel price by being able to reactivate our mining activities at the preferred time.”
FQM expects Ravensthorpe will produce approximately 16,000 contained tonnes of nickel per annum over the next three years.
BHP has signed a deal with one of the world’s largest steelmakers for a major decarbonisation collaboration.
Together, BHP and China’s HBIS Group will trial direct reduced iron (DRI) production aimed at lowering blast furnace carbon emissions.
The companies will use BHP iron ores in blends at HBIS’s newly commissioned DRI plant and then evaluate the performance of the DRI in downstream steelmaking steps.
The DRI plant uses hydrogen-rich gas by-products in the steelworks to convert ore into a metallic iron product that is further refined for steel.
“HBIS Group is a key partner to BHP and an industry leader in assessing and demonstrating a range of potential pathways to reduce GHG in steelmaking,” BHP chief executive officer Mike Henry said.
“Our work with customers like HBIS Group, together with our own actions, aims to accelerate progress in reducing greenhouse gas emissions right along the value chain.”
An enhanced lump second stage trial will commence focusing on the existing blast furnace steelmaking route.
This stage aims to reducing carbon emissions by increasing the use of direct-charge lump and reducing the need for agglomerated feed which requires fossil fuel energy.
As the latest collaboration agreement between BHP and HBIS, the project will tap into the investment of up to $US15 million over three years proposed by BHP and HBIS in an earlier memorandum of understanding signed in 2021.
“HBIS and BHP are aligned in their aims to help develop greener, low-carbon solutions that can reduce emissions in steelmaking, leveraging on our long-standing and trusted relationship that we have forged over several years,” HBIS chair Yu Yong said.
“The agreement signed today is another landmark following our substantive cooperation in areas such as CCUS, and highlights HBIS’s efforts to build a low-carbon raw material supply chain.”
Kayasand-manufactured sand uses up to 20 per cent less cement than natural sand to create concrete of the same strength.
Kayasand believes quarries are critical to the construction industry’s goal of achieving net-zero carbon emissions by 2050.
The United Nations warning of a global sand shortage was described by United Nations Environment Programme’s Pascal Peduzzi as the “elephant in the room” for the 21st century.
The world’s second most consumed material is used to make roads, bridges and houses. Given the world’s reliance on natural sand in concrete creation, the “elephant in the room” left many searching for sustainable alternatives.
Manufactured sand is often used as a substitute for natural sand in concrete, especially in areas where accessible natural sand sources are scarce or of poor quality. This is also true in countries where heavy government regulation limits companies mining natural sand for construction.
Manufactured sand used to be solely about repurposing surplus quarry materials, like crusher dust. It was often labelled unequal to natural sand in concrete production, especially in developed construction industries. However, it has come a long way since it first entered the market.
Kayasand believes with the innovative technology available today, it’s more consistent in quality and performance and can be precisely engineered for specific construction applications.
When processed well, this ‘engineered’ sand has many advantages over traditionally manufactured sands: precise shape, good particle size distribution, no contamination, and regular consistency. In fact, it produces stronger concrete than many natural sands with less cement.
Kayasand trials show that concrete made with Kayasand-manufactured sand uses up to 20 per cent less cement than natural sand to create concrete of the same strength.
While most countries support the future of manufactured sand, not all of them have embraced its potential. New Zealand Green Investment Finance delivered $3.5 million earlier this year to support Kayasand’s first V7 high-technology manufacturing demonstration plant in the Waikato region of New Zealand.
Global bodies, including the United Nations, have warned about the shortage of natural sand and the need to reduce carbon emissions, so manufactured sand is set to become an increasingly critical construction material.
A United Nations Environment Programme report suggests that 50 billion tons of sand and gravel are used yearly. This makes it the second most used resource after water.
In an interview with Quarry, Kayasand’s national sales manager, Frank Grech, said the opportunity for quarries selling manufactured sand is better than ever.
Kayasand-manufactured sand uses up to 20 per cent less cement than natural sand to create concrete of the same strength.
The process
Innovative technology, like Kayasand’s Kemco quad-deck air screens and V7 sand plants, makes the process dust-free, low-noise and uses no water for washing. This means quarries no longer need sediment ponds or water tailings and there are no hidden costs for water management.
Kayasand’s unique design combines the accuracy of mesh screens with the high throughput of air classification system. Their equipment specialises in screening materials that have high fines content. The fully enclosed nature of the V7 plant limits dust exposure, while its negative pressure from the built-in dust extractor keeps dust contained and away from operators.
Waste glass can be recycled into concrete sand. Cement substitutes can be created from limestone filler and waste slag using Kayasand’s V7 plant.
Grech says this versatility allows quarries to reduce their environmental impact while increasing revenue opportunities and enabling a circular economy
Researchers are exploring ways to enhance the properties of manufactured sand for use in sustainable concrete mixes.
By incorporating manufactured sand in innovative concrete formulations (such as carbon-sequestering concrete or high-performance, sustainable concrete), the construction industry can reduce its carbon footprint per unit of construction material.
Grech said engineering sand to have highly consistent properties, allows for more precise and optimised concrete mix designs.
This can lead to reduced material wastage during construction, which, in turn, facilitates a project’s overall carbon footprint.
ENVIRONMENTAL BENEFITS
Using manufactured sand enables the construction industry to minimise waste generation and maximise resource utilisation to align with sustainable development principles and carbon reduction reporting requirements.
It helps to conserve natural resources by reducing the riverbed and coastal sand demand. Preserving these ecosystems can help mitigate carbon emissions associated with habitat destruction.
Manufactured sand produced in quarries is often closer to construction sites, reducing the need for long-distance transportation. Producing sand locally allows quarries to help reduce transportation emissions.
Grech said transporting natural sand over significant distances can result in higher emissions due to fuel consumption.
Given this and companies are trying to
find ways to lower costs, it makes sense to
embrace sustainable materials, like high
quality, ‘engineered’ sand, and move
towards a circular economy.
Peduzzi, who coordinated the United Nations Environment Programme’s report on the sand shortage, has supported the push for such an economy.
“If we can get a grip on how to manage the most extracted solid material in the world, we can avert a crisis and move toward a circular economy,” he said.
“To achieve sustainable development, we need to drastically change the way we produce, build and consume products, infrastructures and service.”
The environmental benefits, lower carbon footprint, repeatable design quality, and circular economic potential make manufactured sand a viable and scalable solution.
By embracing manufactured sand, the construction industry across the value chain can build a more sustainable future.
As the construction industry sets its sights on achieving net-zero emissions by 2050, quarries that sell quality manufactured sand are essential to the vision. •
Newcrest Mining disappears from the ASX, having been officially swallowed-up by gold giant Newmont.
The takeover creates a veritable gold behemoth in control of over half of the world’s Tier-1 gold assets. The enlarged Newmont, which sees foreign ownership of Australian gold assets rise above 50 per cent, will oversee 10 “large, long-life, low-cost Tier-1” operations across the world.
Newmont already owned the Boddington and Tanami gold operations in Australia and will now add Cadia and Telfer to the fold. This puts Newmont in control of four out of six of Australia’s largest gold mines.
Other additions include the Brucejack and Red Chris operations in Canada, which are located nearby Newmont’s Saddle North project. Newmont president and chief executive officer Tom Palmer called this combination of gold assets a “golden triangle”.
The Lihir operation in Papua New Guinea will also fall under Newmont’s control.
Newmont expects to generate pre-tax synergies of $500 million, and at least $2 billion in cash improvements, in the first two years after closing the deal as it optimises its portfolio of assets.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” Palmer said.
“Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”
Newcrest Mining disappears from the ASX, having been officially swallowed-up by gold giant Newmont.
The takeover creates a veritable gold behemoth in control of over half of the world’s Tier-1 gold assets. The enlarged Newmont, which sees foreign ownership of Australian gold assets rise above 50 per cent, will oversee 10 “large, long-life, low-cost Tier-1” operations across the world.
Newmont already owned the Boddington and Tanami gold operations in Australia and will now add Cadia and Telfer to the fold. This puts Newmont in control of four out of six of Australia’s largest gold mines.
Other additions include the Brucejack and Red Chris operations in Canada, which are located nearby Newmont’s Saddle North project. Newmont president and chief executive officer Tom Palmer called this combination of gold assets a “golden triangle”.
The Lihir operation in Papua New Guinea will also fall under Newmont’s control.
Newmont expects to generate pre-tax synergies of $500 million, and at least $2 billion in cash improvements, in the first two years after closing the deal as it optimises its portfolio of assets.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” Palmer said.
“Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”
As the ink dries on Whitehaven Coal’s $US4.1 billion ($6.5 billion) acquisition of two of BHP’s Queensland coal assets, movement on the ASX shows that stakeholders are mulling over the broader significance of the deal.
Following the announcement of the deal on Wednesday, Whitehaven opened on the ASX with a bang at $7.79 per share (up from $6.69 on Tuesday), its highest share price since the coal boom at the beginning of the year.
The purchase of BHP’s Daunia and Blackwater coal mines comes with a price tag of $US2.1 billion in cash up front, $US1.1 billion in cash over three years after completion and the potential for up to $US0.9 billion in a price-linked earnout payable over three years. This comprises a total sale price of around $6.48 billion, with completion of the deal expected in the June 2024 quarter.
Whitehaven chief executive officer and managing director Paul Flynn called the acquisition of the two metallurgical coal assets ‘transformative’ for the company.
Metallurgical and thermal coal differ in quality and carbon content. Thermal coal is traditionally burned to generate electricity, but as Australia and the world transition to cleaner energy, thermal coal is heavily regulated and arguably falling from relevance. Metallurgical coal, on the other hand, is a higher quality coal used in steelmaking with strong global demand.
The deal will mean 70 per cent of Whitehaven’s coal production will be metallurgical, giving the miner some much needed longevity in the heavily regulated realm of coal mining.
“Daunia and Blackwater produce metallurgical coal that is in high demand across Asia… where population growth and economic development is expected to drive strong demand for steel production and metallurgical coal through to at least 2050,” Flynn said.
The two mines also expand Whitehaven’s coal assets outside of NSW, where the company currently operates four mines in the Gunnedah Basin.
But BHP seems to feel differently when it comes to the longevity of Daunia and Blackwater – at least under its own capital investment model. The mining giant first flagged the two Queensland mines for sale so it could focus on producing higher quality metallurgical coal, a move it views as more sustainable.
“A key route for steelmakers to be able to reduce their carbon intensity will be through more efficient blast furnace operations. That requires the highest of quality coking (metallurgical) coal. And that’s what we have in assets like Peak Downs, Goonyella, Saraji and Broadmedow,” BHP said.
“And so those assets we see as having both sides through the energy transition. What we’re doing here is further concentrating our portfolio on the best of the best assets.”
