Mining Technology

Barrick Gold Q1 earnings slip on lower sales

Vasanthi Vara — Thu, 04 May 2023 08:16:33 +0000

Barrick Gold has posted net earnings attributable to equity holders of $120m (C$163.36m) for Q1 2023, a 73% decrease from $438m in the same quarter last year.

This was largely driven by reduced sales volumes for gold and copper, an increased gold and copper cost of sales per ounce, along with a reduced realised copper price.

However, it was an improvement on the previous quarter, when the company registered a loss of $735m.

The Canadian miner’s revenues were $2.64bn for the three-month period ending 31 March 2023, down 7% from $2.85bn in the prior year.

Adjusted EBITDA dropped by 28% to $1.18bn from $1.64bn while total consolidated capital expenditures increased 13% year-on-year to $688m.

Free cash flow dropped to $88m from $393m.

The miner produced 952,000oz of gold in the first three months of this year, a 4% decrease from 990,000oz in the previous year.

Gold sold by the company dropped 4% to 954,000oz from 993,000oz, with the average realised gold price increasing to $1,902 an ounce from $1,876.

Copper production fell 13% to 88 million pounds (mlb) from 101mlb while copper sold slumped 21% to 89mlb.

The company has declared a dividend of $0.10 per share for Q1 2023.

Barrick Gold president and CEO Mark Bristow said: “While we continue to build our peerless asset base, we are also casting our net wider and stepping up the hunt for fresh opportunities. During the past quarter, we have opened up new frontiers and secured multiple interesting prospects in Canada, the USA, Peru, the Dominican Republic, Saudi Arabia and Tanzania.”

Besides, Bristow told Reuters in an interview that it is not interested in pursuing Teck Resources’ copper assets due to the lack of synergies between the companies and Teck’s debt issues.

Bristow was quoted by the news agency as saying: “We would just have to take over the debt and we still get the assets that don’t bring synergies.”

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Rio Tinto and BHP seek partners to develop tailings technologies

Vasanthi Vara — Thu, 04 May 2023 08:07:58 +0000

Mining companies Rio Tinto and BHP are looking for partners to expedite the development of technologies that could support tailings management.

In this regard, the duo invited expressions of interest from start-ups, research groups, technology companies, equipment makers and reagent suppliers.

Tailings management covers related dewatering and transport technologies, along with dust reduction and chemical amendment.

The miners plan to collaborate with the selected parties on developing solutions that can improve water recovery and reduce potential safety risks and environmental impact tied to tailings storage facilities.

They will consider solutions already in use in other sectors or those market-ready for mining.

They will also consider ideas in the early research and development phase.

With this move, the companies are looking to extend their alliance beyond testing a large-volume tailings filter unit at BHP’s Chilean copper mine.

The unit is projected to get rid of up to 80% of the tailings stream’s water before it is deposited in a storage facility.

Rio Tinto chief adviser research and development Saskia Duyvesteyn said: “We want to tap into the wealth of great ideas and innovations we know are out there and work together to find ways to improve safety and reduce the environmental footprint of tailings facilities.”

The latest move comes shortly after Antamina, Barrick, BHP, Freeport-McMoRan, Gold Fields, Newmont, Teck and Vale established the GeoStable Tailings Consortium.

The consortium will work on new technological applications for tailings management, exploring ways to combine various tailings blends with waste rock to offer geo-stable landforms.

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Drones, decarbonisation and the future of mining technology

Kit Million Ross — Thu, 04 May 2023 07:00:00 +0000

The vast quantity of technology, tools and machinery needed to operate a modern mine makes for huge business, and this is reflected in the ballooning value of the mining industry and its adjacent sectors. According to Allied Analytics, the global mining equipment market set to be worth $182bn by the year 2030, and the world’s industries are showing few signs of lowering their appetite for raw minerals. Demand for iron ore alone is set to increase by a combined annual growth rate of over 4% between 2022 and 2026.

To meet this growing demand, mining companies themselves, and technology firms with an interest in the mineral sector, are constantly bringing new products to the market. Technological advances are happening every day, especially in a sector such as mining where automation and remote operation are commonplace, and these new processes are being implemented at a pace and on a scale never seen before.

From technological buzzwords in drones and AI to new uses for humble vegetable oil, the equipment used in the mining industry is undergoing a sudden and striking change. With more pressure on miners than ever to deliver minerals efficiently and cost-effectively, while minimising their environmental footprints, mining equipment could make a real difference in the sector’s future.

Drones and precise mapping

Using drones to map mines both above and below ground is nothing new, with autonomous drones being flown into Australian gold mines as early as 2017. But Flyability’s new Elios 3 drone goes even further in adapting to the unique challenges of operating drones in the most testing of environments.

With both 4K and thermal cameras on board, LIDAR (Light Detection and Ranging) laser mapping systems and a lighting system capable of delivering 16,000 lumen with special “dust safe” modes, it’s capable of capturing data and mapping mines previously thought to be entirely inaccessible. It’s strong and flexible too, with a carbon fibre protection cage shielding the device from collisions.

The combination of thermal cameras, LiDAR laser distance mapping, and the 4K video allows the drone to produce a 3D ‘live map’ of a mine accurate to the centimetre, even without GPS. Flyability reports that these maps are already being used by inspectors to see the precise location of defects, even when high dust levels make camera feeds difficult to see.

It’s proven itself to be a huge asset, with operators at one Colorado mine using the Elios 3 to locate an ore pass hangup in a mere ten minutes, having spent two months failing to locate and clear the blockage manually.

The Elios 3 drone in action. (Photo by Flyability)

Vegetable oil used to decarbonise equipment

The mining industry has been grappling with decarbonisation for some time now, and the pressure to hit net-zero targets is greater than ever. But one major leap forward for emission reductions may come from an unlikely source: vegetable oil.

In February, BHP announced that it would be trialling the use of Hydrotreated Vegetable Oil (HVO) to power mining equipment at its Yandi Iron Ore operations in Western Australia, thanks to a collaboration with BP.

HVO is a diesel-like fuel made by breaking down large molecules found in vegetable oils. Most diesel engines can run HVO and similar fuels with no modifications, and BHP plans to trial this renewable diesel in its haul trucks and other mining equipment over a three-month period.

According to BHP, approximately 40% of its operational greenhouse gas emissions came from diesel-powered equipment in 2020. With HVO fuel offering an up to 90% reduction in carbon dioxide emissions compared to regular diesel, this could mean a major step closer to a low-carbon mining industry.

BHP Western Australia iron ore asset president, Brandon Craig, sees the trial as a part of the net-zero transition.

“Ultimately, our aim is to have fully electric trucking fleets at our sites, but alternative fuels like HVO may help us reduce our emissions in the meantime while the electrification transition takes place.

“This collaboration with the teams at Yandi and bp is really exciting to see, given the potential application in our [Western Australia iron ore] business and BHP’s operations globally.”

Remote mining technology improves potash extraction

Following a series of near misses, serious injuries and fatalities across the global potash mining community, one company has decided to implement new technology to keep their operators safe.

Nutrien, which mines potash for the agriculture industry at six sites in Canada’s Saskatchewan province, recently used new remote mining technology to successfully mine a production wing without a single person entering the area.

In February, operators at Nutrien’s Lanigan potash site put the new remote system into action, and their success marks the first time in the company’s half-century of operations where a wing has been cut with no-one present.

Radar, LIDAR, high definition cameras that withstand dust and brand new advanced instruments for precision operations allow miners to retrieve material from a safe distance, avoiding damaging noise and dust exposure, as well as improving working conditions and ergonomics overall.

According to Nutrien, one unexpected benefit of the new system is an increase in productivity and operational processes, as the remote tech makes seamless transitions between operators during break and shift changes, allowing for mining to continually operate.

An operator using remote potash mining technology at Nutrien’s Lanigan site. (Photo by Nutrien)

Trevor Berg, senior vice president of potash operations, sees this as a major step forward for the safety of potash miners. “This advancement significantly improves the safety of the operators by reducing exposures, while increasing overall productivity. This is a safety success story where we have truly changed the way we operate mining equipment.”

AI-powered remote monitoring

Equipment monitoring in the mining industry is a high-stakes game: it’s time-consuming, and small failures can lead to operational downtime or even major accidents if overlooked. Chile’s Fukay Data has piloted a new technology to provide early warning diagnostics through AI monitoring.

The vitech system uses wireless sensors installed in mobile equipment components, which can be installed on all moving equipment in a mine from shovels, CAEX trucks, drillers and support equipment. Data from these sensors is wirelessly sent to the cloud before being downloaded and analysed by the software.

According to Fukay Data, the solution will make equipment monitoring faster, safer and less expensive, as technicians will no longer have to approach large-tonnage equipment to perform monitoring checks.

While the system is still in its pilot stage, it has already gained national attention in Chile, with Fukay Data winning the Impact Mining 2022 contest and a $31,000 (CLP$25m) grant to bring the technology to market.

Winning the prize is a huge leap forward for the project, one which the Fukay Data team are approaching with great excitement. “The award has filled us with joy and has strengthened the team to continue with our dream,” says Cristián Gallardo, technical manager of operations at Atecma Ingenieros Consultores on behalf of Fukay Data.

“It took three years to develop the solution and now we are in the important stage of the climax, so we feel that this award takes us to the future.”

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Freeport Indonesia must sell 10% stake to government

Annabel Cossins-Smith — Wed, 03 May 2023 16:51:38 +0000

Indonesia’s minister of investment Bahlil Lahadalia said on Wednesday that copper mining company Freeport Indonesia must agree to sell an additional 10% stake to the government, Reuters reports.

The announcement comes as the company, which is a subsidiary of US-based Freeport-McMoRan, begins negotiations with the Indonesian government to extend its permit to operate in the country.

Lahadalia said that the government will seek the cheapest prices possible to increase its stake in Freeport’s Indonesian unit from 51% to 61%. Freeport Indonesia controls one of the world’s largest copper mines.

“We ask for Freeport’s 10% divestment through a state company for as cheap as possible. I’m not asking to see the valuation,” he said in an interview via Reuters, adding that Freeport must agree to this requirement to be able to extend its mining permit, which is currently set to expire in 2041.

“If we are not thinking about this now, in 2041 there will be job losses and Papua’s economy will be impacted,” Lahadalia said. Freeport’s flagship Grasberg mine lays in the Papua province in Indonesia. He added that Freeport will also need to build a smelter in Papua in addition to a $3bn project in development in East Java.

Entering into partnerships with Papuan businesses and meeting environmental standards for new projects will also be included in negotiations for the permit extension, Lahadalia said.

Indonesia’s government invested $3.85bn into Freeport in 2018 via a state company. This has proven beneficial for the country, and the government expects to break even on its investment by next year, Lahadalia added.

Details of the negotiations are still being discussed. However, the government has said it is crucial for both parties to finalise the terms of Freeport’s permit extension as early as possible to avoid a dip in output in the future. In this year’s first quarter, Freeport’s profits plunged 57% compared with the same period last year, owing largely to reduced output amid a tight labour market, a spokesperson for the company said at the time.

Last year, the company reported production of 3 million tonnes of copper concentrate. The mining company has recently transitioned into underground mining at Grasberg.

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Sohar provides $15m of funding for Omani Al Hadeetha copper-gold mining joint venture

Alex Donaldson — Wed, 03 May 2023 16:39:38 +0000

Sohar International Bank has provided $15m of funding for finalising the construction of Al Hadeetha Resources’ copper and gold joint venture, according to Al Hadeetha.

The Omani holding company received the funds from the bank, which provided the project’s initial loan. Al Hadeetha is a joint venture, with Australian miner Alara Resources holding 51%. The project is expected to be commissioned in September of this year.

Atmavireshwar Sthapak, Alara managing director said: “We are thrilled to have put the additional finance facility in place […] It ensures [the joint venture] has the finance required to prepare to operate this exciting asset ahead of mine output revenues starting to flow.

“With a raft of construction tasks already complete, copper product from the Al Wash-hi Majaza Copper-Gold Project will soon be making its way to clients. When it does so, Alara will transition from a pure explorer into a resources company holding a 51% stake in a new mine producing a key, in-demand base metal.”

The firm also outlined how the $15m will be divided, with around $8m going towards project-related consumables necessary for the plant’s commission. This includes vital spare part, and chemical reagents. Al Hadeetha will allocate the remaining $7m for general working capital for use on the likes of utility payments and other running costs.

Elsewhere, the project’s 33KV power substation is already complete, and the mine is expected to operate for eleven years .Al Hadeetha had originally planned to finance the remainder via an offtake pre-payment. Instead, the additional $15m is being treated as an increase to the initial $49m startup loan, taking the total to be repaid to $64.3m.

Alara added: “Civil construction at the Project’s one million tonne per annum copper processing plant is approximately three-quarters complete, while mechanical, electrical and plumbing works have made substantial progress.”

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Hindustan Zinc’s plan to acquire Vedanta’s assets falls through

Vasanthi Vara — Wed, 03 May 2023 13:15:49 +0000

Indian zinc producer Hindustan Zinc’s plans to acquire some of the assets from Vedanta Group have been shelved, as it failed to garner the support of shareholders, The Economic Times reported.

In a stock exchange submission made in January 2023, Hindustan Zinc offered $2.98bn in cash to acquire THL Zinc Ltd, Mauritius from its parent Vedanta.

This acquisition was supposed to be executed by Hindustan Zinc’s subsidiary HZL WOS in a phased manner.

The assets owned by THL Zinc include South Africa’s Black Mountain Mining, which mines zinc, lead, silver and copper; and Namibia’s Skorpion Zinc, which operates a refinery for zinc production.

The deal has been scrapped as three months have passed without securing shareholders’ clearance.

As of last December, Hindustan Zinc had Rs164.8bn in cash and cash equivalents and planned to use its cash reserves to fund the acquisition.

However, it secured these cash reserves by announcing an Rs110bn ($1.34bn) dividend in March.

The Indian Government owns a 29.54% stake in the company while Vedanta has a 64.9% holding.

Earlier this year, the government opposed the deal, stating that it was a ‘related party transaction’.

Since the deal was announced, the share price of the company plummeted, which also hit the government’s plans to divest from the company. The plan has since been suspended.

The development is considered to be a setback for Vedanta, as it was planning to cut at least some of its $7.7bn debt through the sale.

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Generation Mining reaches $400m debt deal to develop Marathon mine

Vasanthi Vara — Wed, 03 May 2023 12:34:38 +0000

Generation Mining has secured a senior debt facility of up to $400m to fund the construction of its Marathon palladium-copper mine at Lake Superior in Ontario, Canada.

A syndicate comprising Export Development Canada (EDC), ING Capital, and Societe Generale are the mandated lead arrangers.

The selection of these financial institutions was said to be based on their experience in financing greenfield mining projects.

Securing this facility is said to be the company’s ‘key milestone’ towards advancing the Marathon project.

The transaction is expected to close in the third quarter of this year, after the completion of final due diligence.

Generation Mining president and CEO Jamie Levy said: “We are very pleased to have mandated these three financial institutions, all of whom have a strong mining and metals track record. The $400m senior debt facility (C$540m) combined with the undrawn Wheaton Precious Metals Stream of C$200m, or a total of C$740m represents a significant portion of the initial capital required to develop the Marathon Project.

“The company will now focus on finalising the definitive documentation, together with arranging equipment leases and sourcing the balance of the capital required to fully finance construction.”

Located along the Trans-Canada Highway in north-western Ontario, the feasibility study from the Marathon project showed that its net present value is C$1.6bn ($1.17bn) with a payback of 2.3 years.

Its internal rate of return (IRR) is 25.8% based on $1,800/oz and $3.70/lb for palladium and copper, respectively.

With an estimated mine life of 12.5 years, the project is anticipated to produce a total of 3.6 million ounces of palladium.

Of the total estimated revenue from the project, 58% will come from selling palladium and 29% from copper.

The remaining revenue is expected from the sale of platinum, gold and silver.

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Hummingbird’s Guinea gold mine enters commissioning phase

Vasanthi Vara — Wed, 03 May 2023 10:31:21 +0000

UK-based miner Hummingbird Resources’ Kouroussa gold mine processing plant in Guinea has reached the completion stage and entered the commissioning phase.

The Kouroussa gold mine is the company’s second operating gold asset in West Africa and is said to be a high-grade mine with more than four grams per tonne (g/t) in open-pit operations.

Priority systems at the processing plant have been completed, which will enable the commissioning phase.

The company is undertaking pre-operational and cold commissioning and expects to begin the first gold pour this quarter.

Hummingbird’s specialist commissioning personnel and the plant’s engineering contractor Soutex are working together during the commissioning phase.

Sufficient ore feed tonnes are on the ROM pad and the mining activities are also being expedited to provide increased ore feed tonnes for the first gold pour.

Semi-autogenous grinding mills are being commissioned by contractor NCP International.

Permanent power units have been installed, which will be used to energise the medium-voltage substation.

Hummingbird CEO Dan Betts said: “Kouroussa is on track to pour first gold within the current quarter, and the start of commissioning of the processing plant is a significant step forward in achieving this objective. As we begin the commissioning phase to bring Kouroussa online, we remain heavily focused on safety at this busy time.

“Additionally, operational readiness and the transition to daily operations is a key part of this phase as we look not just to first gold but to ramping up production to nameplate capacity, moving the company to be a +200,000oz, multi-asset, multi-jurisdiction gold producer.”

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Atlas Lithium earns $20m through royalty sale to Lithium Royalty

Vasanthi Vara — Wed, 03 May 2023 10:24:29 +0000

US-based mineral explorer Atlas Lithium has earned $20m through a royalty deal to accelerate the development of its Das Neves Lithium Project in Minas Gerais, Brazil.

Atlas Lithium secured the funding by selling a 3% gross overriding revenue royalty to Lithium Royalty, a Canada-based lithium royalty company.

Atlas Lithium currently has ten active drills working towards setting up lithium resources at the Neves Project, which includes a cluster of four claims out of a total of 64 mineral rights for hard-rock lithium.

Atlas Lithium’s drilling campaign at its fully owned Das Neves project in the Lithium Valley area of Minas Gerais is centred on its flagship pegmatite, Anitta. There was an estimated 4.4% lithium oxide at the location.

The company expects to release the mineral resource report by the middle of this year, followed by a preliminary economic assessment in two months following the resource report.

This report will support the plans to build and operate the mine, which can produce 150,000 tonnes per annum of spodumene concentrate.

Atlas Lithium chairman and CEO Marc Fogassa said: “This is a landmark transaction for Atlas Lithium. Mr Ernie Ortiz, the president and CEO of LRC, is one of the most experienced lithium investors in the world. As part of his due diligence, he met our management and operational teams, visited our Neves Project and witnessed our drilling campaign first-hand.

“Mr Ortiz has been an advocate for clean energy since 2014, and it is a privilege to have him and LRC partner with us and support our growth. $20m is our largest raise and will solidly reinforce our continued growth. Importantly, this capital was raised in an entirely non-dilutive manner: not a single share of stock was sold.”

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India’s NMDC in discussions with Hancock for lithium exploration

Vasanthi Vara — Wed, 03 May 2023 09:02:19 +0000

India-based iron ore producer NMDC is carrying out discussions with Australia’s Hancock Prospecting for exploration and mining of lithium, reported Reuters, citing a source familiar with the development.

The source said: “Lithium exploration is at a very nascent stage, but we are talking to Hancock Prospecting for their investments into it.”

NMDC did not confirm the development.

Companies are increasingly vying for a share of the lithium market to support the transition to a green future.

Lithium is a key component in electric vehicle (EV) batteries.

In February, India discovered 5.9 million tonnes of inferred lithium ore in the Reasi district of Jammu and Kashmir.

It marked the first major lithium discovery in India following a deposit of 1,600 tonnes (t) discovered in Karnataka two years earlier.

Last month, NMDC began investigating lithium deposits in Western Australia.

Meanwhile, the state-owned miner is also looking to export low-grade iron ore to China, according to the unnamed source.

It is seeking a partnership with another company for processing and shipping out the ore to China, which imports nearly 80% of the shipments from India.

In addition, NMDC anticipates forest clearances for diamond mining in Madhya Pradesh, with plans to produce nearly ten carats of diamond for every 100t of Kimberlite processed.

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