Glencore has announced plans to close its Mount Isa copper operations in Queensland by the end of 2025, but said it will keep its other metal assets open.
Operating for over 60 years, the company’s copper mine life has already been extended six years past its original life expectancy.
All three copper mines at the Mount Isa operation – Enterprise, X41 and Black Rock – are set to close, as well as the company’s copper concentrator.
Other Mount Isa mines and operations will remain open, including the copper smelter, the George Fisher mine, the zinc-lead concentrator, the lead smelter in Mount Isa, as well as the copper refinery in Townsville.
Glencore said it has conducted a range of studies and reviews seeking to further extend the life of the underground copper mines, but the end of mine life has been confirmed.
Glencore’s Lady Loretta zinc mine, located 140km north-west of Mount Isa, which was a finite orebody with a seven-year mine life, will also close in 2025.
“We know this decision will be disappointing for our people, our suppliers, and the Mount Isa community,” Glencore Australia zinc asset chief operating officer Sam Strohmayr said.
“The reality of mining is that mines have a beginning, middle and end. And unfortunately, after 60 years of operation, Mount Isa’s underground copper operations have now reached that end.
“We want to give our people as much time as possible to consider the best options for them and their families, which is why we are notifying our workers and the community almost two years before these mines close.
“Our focus over the coming months will be to work closely with our people and contractors, our suppliers, and the Mount Isa community to provide support as we move towards closure of these assets.”
Glencore’s Mount Isa underground copper mines, copper concentrator and supporting services currently employ around 1200 people.
BHP’s acquisition of OZ Minerals is paying dividends, with operational records falling across its new copper district in South Australia.
The Carrapateena mine, located 100km south-east of BHP’s Olympic Dam operation, achieved record development metres in September, producing 14,100 tonnes of copper in the September quarter. This is a 21 per cent increase on the previous three months (11,700 tonnes).
Olympic Dam, which BHP owned before the OZ Minerals acquisition, mined 2.64 million tonnes (Mt) of material during the September quarter – its highest mark since the 2014–15 financial year (FY15).
This equated to record gold production of 53,028 ounces, the second time Olympic Dam has achieved this in three quarters.
Combined with a 48 per cent increase in copper production at Prominent Hill, BHP produced 71,700 tonnes from its South Australia copper operations – a 44 per cent uplift from the same quarter last year (bearing in mind it only owned Olympic Dam at this point).
BHP achieved a 11 per cent group copper production uplift from the third quarter of 2022, with the Escondida and Pampa Norte operations in Chile also delivering strong performances.
Iron ore production fell three per cent from the same quarter last year, which the major miner attributed to “tie-in activity for the Rail Technology Programme (RTP), the ongoing ramp up and maintenance at the Central Pilbara hub (South Flank and Mining Area C), and the timing of track renewal maintenance”.
BHP said South Flank remains on track to ramp up to full production capacity of 80 million tonnes per annum by the end of FY24.
The miner’s quarterly was released on the same day as the divestment of BMA’s Daunia and Blackwater coal mines was revealed, with Whitehaven buying the mines for $US3.2 ($5.02) billion.
BMA is a joint venture between BHP and Mitsubishi Development.
Private equity firm Resource Capital Funds (RCF) has announced the selling of Ausenco, a multinational engineering company, to three key US investment firms.
Resource Capital Fund VI (RCF VI), RCF’s fund that owns Ausenco, first acquired the company in 2016 for $153.7 million.
According to RCF, Ausenco has focused on delivering copper for the energy transition and constructing four major copper concentrators while under RCF VI’s ownership.
“These include Carrapateena, representing one of the largest copper reserves in Australia, Constancia and Mina Justa in Peru and Mantoverde in Chile, still under construction, for a combined annual copper capacity of more than 400,000 tonnes,” the firm said.
“In addition to copper, Ausenco has grown capabilities in sustainability, lithium and operational performance. Ausenco now has more than 3000 employees, up almost 1600 employees since RCF privatised the business in 2016.”
The transaction is expected to close in late 2023, subject to satisfaction of customary closing conditions.
“We extend our heartfelt gratitude to the Ausenco team, whose dedication and unwavering commitment have been the driving force behind its success during our ownership… This is a fantastic outcome for all parties involved, and we wish Ausenco continued success,” Resource Capital Funds managing partner James McClements said.
RCF head of private equity Martin Valdes said this transaction is a “natural step” that will mark “the next chapter in Ausenco’s journey”.
“The decision to sell Ausenco was made after careful consideration, with the belief that this transition will allow the company to further expand its reach and make an even greater impact in the growing engineering sector,” he said.
“Our relationship will continue as like-minded collaborators to deliver the necessary commodities to support the energy transition.”
Metso has announced an expansion of its process piloting capabilities in Finland to keep up with the needs of the battery industry.
This expansion has involved Metso modernising its pilot facility at the Metso Research Centre in Pori, Finland, with expanded capabilities for lithium hydroxide and other battery chemicals process testing.
Metso has also opened a battery materials precursor pilot plant as part of the expansion, which is now available for customer trials.
“Pilot run requests for battery minerals like lithium, nickel and cobalt have increased significantly during the last three years,” Metso director for hydrometallurgical research and development Janne Karonen said.
“Currently, we are working on several battery black mass recycling and precursor projects and have several lithium and other battery chemicals project pilots on our laboratory schedule.”
Metso said the pilot facility expansion complements its front-running piloting capabilities for minerals processing and metals refining, as well as enables minerals and battery industry customers to have end-to-end testing and having its piloting services and technology and equipment deliveries come from one supplier.
The Finland expansion ties into Metso’s 20 year experience in developing sustainable hard rock lithium soda leaching technologies.
The engineering company announced earlier in the week the opening of new manufacturing facilities in Alwar, India.
Yancoal Australia has announced that its chairman of the board Baocai Zhang has resigned.
The company cited Zhang’s hopes to devote more time to his other business engagements and positions he holds as the reason for stepping down from the role.
Zhang has worked at Yancoal since 2004. He first joined its board before the company joined the Australian Securities Exchange (ASX) in 2012. He previously served as co-vice chairman and chair of the executive committee from 2013 to 2018, and then began his position as chairman in 2018.
Yancoal said that during his tenure, Zhang’s vision, ability and determination helped transform the company, such as through its acquisition of Australian mining company Coal & Allied in 2017.
“The board thanks Baocai Zhang on the contributions he made serving as a director and chairman of the company. His passion, dedication, commitment, and capabilities were invaluable in driving Yancoal’s significant growth,” Yancoal said.
Zhang will also step down as a member of Yancoal’s nomination and remuneration committee and as chairman of the strategy and development committee.
Yancoal non-executive director Gang Ru has assumed the role as chairman, beginning on September 15.
He has nearly 30 years of experience in financial and capital management, corporate organisational management and investment. Though his roles with coal mining company Shandong Energy, Ru has worked closely with Yancoal since 2015.
“The appointment of Mr Ru as the chairman is one that will benefit Yancoal and its shareholders. He will undoubtedly provide the leadership and strategic initiatives required to drive the next stage of the company’s development,” Zhang said.
Yancoal is expected to announce details of the updated composition of its board committees at a later date following board approval.
The coal miner has also celebrated 13 production operators of its Premier Coal mine who are retiring.
Yancoal Australia has announced that its chairman of the board Baocai Zhang has resigned.
The company cited Zhang’s hopes to devote more time to his other business engagements and positions he holds as the reason for stepping down from the role.
Zhang has worked at Yancoal since 2004. He first joined its board before the company joined the Australian Securities Exchange (ASX) in 2012. He previously served as co-vice chairman and chair of the executive committee from 2013 to 2018, and then began his position as chairman in 2018.
Yancoal said that during his tenure, Zhang’s vision, ability and determination helped transform the company, such as through its acquisition of Australian mining company Coal & Allied in 2017.
“The board thanks Baocai Zhang on the contributions he made serving as a director and chairman of the company. His passion, dedication, commitment, and capabilities were invaluable in driving Yancoal’s significant growth,” Yancoal said.
Zhang will also step down as a member of Yancoal’s nomination and remuneration committee and as chairman of the strategy and development committee.
Yancoal non-executive director Gang Ru has assumed the role as chairman, beginning on September 15.
He has nearly 30 years of experience in financial and capital management, corporate organisational management and investment. Though his roles with coal mining company Shandong Energy, Ru has worked closely with Yancoal since 2015.
“The appointment of Mr Ru as the chairman is one that will benefit Yancoal and its shareholders. He will undoubtedly provide the leadership and strategic initiatives required to drive the next stage of the company’s development,” Zhang said.
Yancoal is expected to announce details of the updated composition of its board committees at a later date following board approval.
The coal miner has also celebrated 13 production operators of its Premier Coal mine who are retiring.
IGO saw a record $1 billion in revenue for the financial year, generating net profit after tax of $549 million, which acting chief executive officer Matt Dusci called “the strongest set of financial results in IGO’s 21-year history.
This was underpinned by an enormous $1.987 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA).
The company’s shareholders reaped some of the rewards.
“This has enabled the declaration of a final dividend of $0.44 plus a $0.16 special dividend for FY23 (financial year 2023), bringing total dividends for FY23 to a record $0.74 per share, equivalent to $560 million in dividend payments,” Dusci said.
Lithium production at the company’s Greenbushes mine, which it co-owns with joint venture partner Tianqui Lithium, significantly contributed to the earnings. Greenbushes has the highest ore reserve grade of any hard rock lithium mine globally.
The mine produced roughly 1.49 million tonnes of spodumene at a cost of $244 per tonne in FY23.
“Within our lithium business, excellent production and cost performance at the Greenbushes lithium mine, combined with exceptional realised pricing, drove record earnings and cash dividends of over $1 billion to IGO, via our lithium joint venture,” Dusci said.
“Meanwhile, performance at the Kwinana lithium hydroxide refinery is expected to improve over FY24 as progressive rectifications are made to improve operational performance.”
Lithium hydroxide production at Kwinana was lower than expected in FY23 owing to operational changes.
Nickel also contributed to the company’s success.
“Our nickel business also delivered with our operating assets, Nova and Forrestania, generating aggregate free cash flow of $587 million for the year at an EBITDA margin of 56 per cent.”
LITHIUM JOINT VENTURE WITH TIANQI LITHIUM CORPORATION
Ownership IGO 49%
In 2021, Tianqi Lithium Corporation (51%) and IGO Limited (49%) incorporated a new Joint Venture (JV), with a focus on developing and operating world class lithium assets. The JV is currently focused on its lithium assets in Western Australia which comprise of a 51% stake in the Greenbushes Lithium Mine (49% owned by Albermarle Corporation) and 100% ownership of the Kwinana Lithium Hydroxide Refinery.
The JV is global lithium partnership between IGO and Tianqi, a lithium industry leader, and will be the exclusive vehicle for any future lithium related investments outside of China.
Horizon Minerals and Dundas Minerals have entered into a binding agreement to acquire the Windanya and Baden-Powell/Scotia gold projects in the Kalgoorlie region of WA.
Dundas Minerals has also made an application to acquire three prospecting licenses in its own right, contiguous to Horizon’s Banden Powell/Scotia tenements.
“The option to acquire these advanced stage gold exploration projects in the Kalgoorlie region of Western Australia is an exciting opportunity for Dundas Minerals,” Dundas Minerals managing director Shane Volk said.
“Given the competition for these projects, Dundas is pleased that Horizon viewed us as a worthy partner. We are keen to commence the first phase of exploration in coming weeks.”
The Windanya project is located approximately 50km north of Kalgoorlie, while the Powell/Scotia project is adjacent to the Goldfields Highway, about 60km north of Kalgoorlie.
The projects became available due to Horizon’s focus on advancing its Cannon, Penny’s Find and Rose Hill gold projects towards production.
“Being so near to Kalgoorlie, the Goldfields Highway, and several gold plants, the economics of advancing a gold deposit from within these project areas into production, and generating income for the company are favourable,” Volk said.
Dundas is currently finalising plans for its first phase of exploration at both projects, which will comprise soil and/or auger sampling programs covering multiple targets ranked by prospectivity.
Exploration is expected to commence in early September, and will take up to three weeks to complete.
City of Kalgoorlie-Boulder councillors have voted to lease council land to BHP for temporary worker accommodation, with a total of 1152 new rooms to be built.
Located in Somerville, the three-year lease agreement is touted to bring in $1.3 million a year to the council in rent and rates.
The camp has also been granted three one-year options after the initial leasing period.
BHP will now seek building approval for the camp, which will house workers for the construction of a furnace rebuild for the company’s nickel smelter as part of its Nickel West division.
“This is a big decision for the city, and we want to do what is best for our community long term,” City of Kalgoorlie-Boulder mayor John Bowler said.
“BHP have advised that 60 per cent of its workforce for its Kalgoorlie nickel smelter renewal project would be housed in the temporary village and this would not only ease the burden on residential housing but also have significant benefits for the local economy.”
BHP’s submission was recommended to the council due to the significant financial return it could create in terms of future services for ratepayers.
These funds will be held in city’s future projects reserve for the development of the area as traditional residential housing.
Kalgoorlie-Boulder deputy mayor Glenn Wilson told the ABC the camp is necessary to reduce pressure on the city’s housing market.
“We’ve already got $900-a-week rents in Lamington and that will only increase, putting further strain on family budgets,” he said.
BHP’s WA operations supply nickel to world markets for use in electric vehicle batteries and other growing technologies with an aim to support global decarbonisation.
BHP employs 2500 people across its Nickel West operations, a large portion of which are fly-in, fly-out (FIFO) workers.
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