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Revealed: Kinder Australia unveil new chief executive officer

Charles Pratt is the new CEO of Kinder Australia. Picture: Kinder Australia

Kinder Australia has announced a major step for the company by unveiling a new chief executive officer.

The Australian company has appointed long-time employee Charles Pratt to take the top job after starting his journey with Kinder more than two decades ago.

Kinder Australia founders Neil and Christine Kinder have transitioned into managerial roles on the company’s advisory board. Neil will maintain his role as a managing director.

In a statement, Kinder welcomed the promotion of Pratt as the company prepares to celebrate its 39th anniversary in the bulk handling industry next year.

“Charles Pratt is characterised by his unwavering diligence and diplomatic approach to achieve the best possible outcomes and practical solutions,” they said.

“He encourages a culture of inclusiveness and upskilling – qualities that have played a pivotal role in his rapid rise within the company.

“His hands-on experience and profound understanding of heavy process industries make him a remarkable problem solver, not only for Kinder but also for the company’s valued customers.

“Charles has an uncanny ability to dive deep and uncover issues, often identifying challenges that even the most discerning customer might overlook.”

Pratt previously served Kinder as the operations manager and is remaining as a company shareholder.

Whitehaven coal swoop a matter of longevity

TIM BOND

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.”

Glencore to close Mount Isa

KELSIE HARFORD

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 scales new copper heights

TOM PARKER

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.

First Quantum Minerals’ Honeymoon continues

OLIVIA THOMSON

Canadian-based First Quantum Minerals has commenced a maiden diamond drilling program along the Yarramba Palaeovalley on the tenements of Boss Energy’s Honeymoon uranium project in South Australia.

Boss Energy first entered into an exploration earn-in agreement with First Quantum Minerals in February 2022. The agreement covers the base metals rights of five tenements at the Honeymoon project, which commenced mining operations last week.

“With a proven track record in discovering and developing deposits, Boss considers First Quantum Minerals an ideal partner in the exploration and potential development of any base or precious metal discoveries at Honeymoon,” Boss Energy said of the agreement.

The new drilling program will target basement-hosted base metal mineralisation below the Yarramba Palaeovalley and will cover three high-priority targets identified from extensive analysis and modelling of geophysical and geochemical datasets.

It will consist of at least five diamond core holes for a minimum of 1800m drilling. Global drilling company DDH1 – which was acquired by Perenti last week – will complete the 4–6 week-long drilling program.

The geochemical assay results are expected to return within 1–2 months after the program’s completion.

“This agreement is an outstanding opportunity for Boss and our shareholders,” Boss Energy managing director Duncan Craib said.

“We have a global leader in First Quantum Minerals funding base metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us while we focus on our goal of becoming Australia’s next uranium producer.”

After the drilling program’s completion, First Quantum Minerals may choose to earn a 51 per cent interest in its agreement with Boss by spending $6 million on exploration within five years, as well as maintaining minimum annual expenditure on the project of $500,000.

If First Quantum Minerals follows this path, it will enter into a joint venture agreement with Boss Energy.

Metso reveals India expansion

Metso has chartered a new path in India after announcing plans to extend its manufacturing capacity of mobile track-mounted crushing and screening equipment.

The company will expand its manufacturing operations in Alwar in India. The Alwar facility will be 35 per cent bigger at 340,000 square metres.

The Alwar facility is one of Metso’s biggest manufacturing facilities. The site employees 1300 people with a production ramp up expected to continue into the next year.

The factory, which originally opened in 2008, was showcased on September 19 with the new expansion. Key features, according to Metso, include automated warehousing, automated assembly lines, modern painting lines and 13,000 solar panels installed to enable increased energy production. After the extension, solar energy covers 85 per cent of Alwar’s total power generation, which is the maximum permitted as per state government guidelines.

President of the Aggregates business area of Metso Markku Simula said the expansion was key for Metso.

”With the increased manufacturing capacity, Alwar becomes the major Metso site for increased domestic business in India and exports to Metso’s customers globally. Additionally, significant investment has been made in engineering and R&D resources, making it one of our key global engineering hubs,” he said.

The increased capacity in India will be used for the manufacturing of mobile McCloskey and Tesab equipment. At the same site, Metso is also producing wear parts and pumps for the aggregates and mining industries.

Resource Capital Funds to sell Ausenco

OLIVIA THOMSON

Private equity firm Resource Capital Funds (RCF) has announced the selling of Ausenco, a multinational engineering company, to three key US investment firms.

The three firms – Eldridge, Brightstar Capital Partners, and Claure Group – will acquire Ausenco for approximately $US578 million ($900 million).

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 expands into Finland

OLIVIA THOMSON

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.

Record mineral exploration in Tasmania

KELSIE HARFORD

Mineral exploration expenditure in Tasmania has hit a new record, with the latest Australian Bureau of Statistics (ABS) figures showing $43.1 million was spent in the 2023 financial year.

The jump marks a 31 per cent boost in mineral exploration in the state, which Tasmanian minister for resources Felix Ellis said is the highest level on record.

“The mining and mineral processing sector is a key pillar of the economy and contributes more than $2.8 billion a year in exports and supports more than 5800 jobs,” he said.

“We know the world will need the key and critical minerals that Tasmania has to help power the global shift to renewable energy and to support defence manufacturing.”

Ellis pointed to programs like the Tasmanian Government’s exploration drilling grant initiative (EDGI) and geoscience initiative as examples of its commitment to growth in the industry.

“The EDGI grants provide co-funding for greenfield targets that may lead to the discovery of Tasmania’s next new mine,” he said.

“Since the program began, there have been eight rounds released, with funding provided facilitating more than 16,000 meters of drilling.

“It is pleasing to see that the greenfield exploration investment of $5.3 million is the highest in a decade.

“The $2 million geoscience initiative is providing new data to underpin and de-risk the next generation of mineral exploration.”

Resource production is ramping up in Tasmania with a recent feasibility study between the Tasmanian Government and the Rotterdam Port Authority marking the state as a potential green hydrogen powerhouse.

The state hopes to begin exporting green hydrogen by 2030, with the study confirming conditions in the island State for production, domestic use and export are world-class.

NSW Budget puts mining in the spotlight

ALEXANDRA EASTWOOD

NSW Treasurer Matt Kean will unveil requirements which force coal companies to reserve 10 per cent of their output exclusively for domestic use.

The 2023-24 NSW Budget has been released, reflecting the Government’s commitment to the mining and resources sector.

The Budget includes $5.2 million to establish Future Jobs and Investment Authorities. This will also assist coal-producing regions to develop new industries and economic opportunities as the state pushes for renewable energy.

Geological surveying has also been included in the Budget, with $27.5 million allocated to encourage critical mineral exploration in the state. It is hoped that the data will define areas of mineral or energy potential.

A total of $142.5 million has been allocated across the Natural Resources portfolio, including $113 million over four years for mine work health and safety. Legacy mine risk reduction has been allocated $48.5 million.

NSW introduced its new Critical Minerals Strategy earlier this month to provide the framework for the critical minerals and high-tech metals mining industry while providing certainty and direction for the growing industry.

The new document will include a sharper focus on domestic manufacturing, skills and training opportunities.

“I’m excited by the opportunities created by critical minerals in NSW. The new strategy will ensure the state is able to best realise the gains of the next mining boom,” NSW Minister for Natural Resources Courtney Houssos said.

“NSW is uniquely positioned to support global supply of critical minerals with our diverse mix of critical mineral and high-tech metal deposits and capacity to promote domestic processing and manufacturing.”