THEAUSTLIAN

MPP100007123 R ININIncorporating GTHE AUSTLI AN EVIEW E  R OIL – GAS – ELECTRICITY – RENEWABLES A product of MARCH 2018 australianminingreview.com.au Publications & Exhibitions Australia Pty Ltd

COMMODITY FULL STEAM HAWSONS IRON FOCUS: AHEAD ORE PROJECT COBALT

THE NEWS p18 DACIAN GOLD p39 INTERVIEW p69 STEEL THE SHOW

The Sanjeev Gupta-led GFG Alliance is spending big on its ambitious strategy to subvert Australia’s dominant ‘dig and deliver’ approach.

FEATURE p20 Image: GFG Alliance. Photography: Sean Kelly MARCH 2018 2 CONTENTS THE AUSTLIAN MINING REVIEW

What stories matter to you? PUBLISHED BY ABN 28 112 572 433 [email protected] REJUVENATION A product of MINING IN NORTH WEST Publications & Exhibitions Australia Pty Ltd QUEENSLAND NEWS 1 GENERAL MANAGER Brad Francis Commodities Snapshot 4 [email protected] Explorers on the Move 10 MANAGING EDITOR Reuben Adams The Contractors 12 [email protected] International 14 JOURNALISTS Cameron Drummond Technology & Innovation 16 featurefeature pp2719 [email protected] Commodity Focus: Cobalt 18 Elizabeth Fabri [email protected] THE GRAPHIC DESIGNER Charlotte Lufino [email protected] BOTTOM LINE SALES EXECUTIVES SPECIAL FEATURES RIO TINTO IRON ORE Beej Francis, Penny West PRINTER GFG Alliance 20 Rural Press CONTACT US Mining in North West Queensland 27 P: (08) 6314 0300 F: (08) 9481 7322 Rio Tinto Iron Ore 30 160 Beaufort Street, Perth, WA 6000. Dacian Gold 39 PO Box 8023, Perth BC, WA 6849. E-mail the editor at [email protected] Northern Minerals 44 For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.au Ramelius Resources 46 The Australian Mining Review is a free publication to all mine sites and mining companies in Australia. Its value is $11 an issue. (Includes GST, postage and handling). The copyright is vested in the Proprietors of The Australian Mining Review; neither whole nor any part of this issue may be reproduced without permission. The views expressed in this publication are not INDUSTRY SPOTLIGHT necessarily those of Miningoilgas Pty Ltd and its staff, but are those of the respective author who accepts p30 sole responsibility and liability for them. Companies Gearing Up 48 featurefeature p19 NOTICE TO ADVERTISERS: The Trade Practices Act, 1974 came into force on Cables & Cabling 53 the 1st October 1974. All advertisers and advertising agents are directed to carefully study the provisions of the Act, which contain strict regulations on Corporate Team Building 57 advertising. It can be an offence for anyone to engage, in trade or commerce, in conduct deemed “misleading Diesel Emissions 58 or deceptive”. Specifically s53 of the Act contains prohibitions from doing any of the following in connection with the promotion, by any means, of Dump & Haul Trucks 59 the supply or use of goods or services: (a) falsely represent that goods are of a particular standard, quality, value, grade, composition, style or Filters & Filtration 60 model or have had a particular history or particular previous use; (b) falsely represent that goods are new; (c) represent that goods or services have sponsorship, approval, performance characteristics, Minerals Processing 64 accessories, uses or benefits they do not have; (d) represent that the corporation has a sponsorship, approval or affiliation it does not have; (e) make a Mine Rehabilitation 65 false or misleading representation with respect to the price of goods or services; (f) make a false or misleading representation concerning the need Recruitment Services 66 for any goods or services; or (g) make a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, Workshop Safety 67 guarantee, right or remedy. PENALTIES: For an individual — $10,000 or six months OPPORTUNITY imprisonment For a corporation — $50,000. It is not possible for this company to ensure that advertisements published in this newspaper comply with the Act and the KNOCKS responsibility must, therefore, be on the person, company or advertising agency submitting the UNDER THE SPOTLIGHT: RAMELIUS RESOURCES advertising for publication. In case of doubt, consult HAWSONS your lawyer. the interview p69 feature p46 A product of Publications & Exhibitions Australia Pty Ltd MARCH 2018 4 NEWS: COMMODITIES THE AUSTLIAN MINING REVIEW

MAJOR COMMODITIES SNAPSHOT

$US/oz $US/t GOLD IRON ORE 62% Fe CFR China 1360 78 Gold lifted in 1348.13 Iron ore is at 1340 76 February on the six-month highs, 74.4 back of a weaker 1320 74 77.18 reflected by bullish US dollar. Analysts steel prices caused believe that to 1300 1330.58 72 by ongoing Chinese breach the 1280 70 production $US1360 level retail restrictions. investors will need 1260 68 to get on board in 67.41 1240 66 the coming months. 1249.8 1220 64 1200 62 December January 21-Feb December January 21-Feb

$US/t $US/t COPPER LME Price COBALT LME Price 8000 82000 Copper rallied in 7111.89 80000.02 While cobalt has 80000 early February, 7000 recently flattened, gaining 8%, 6000 78000 support for the however uncertainty 7002.98 76000 80000.02 commodity remains over demand from 5000 5547.33 high for March. 74000 China caused the 4000 commodity to fall 72000 back below January 3000 highs. 70000 2000 68000 70000.08 1000 66000 0 64000 December January 21-Feb December January 21-Feb

$US/t $US/t ALUMINIUM LME Price ZINC LME Price 2300 3600 A rise in aluminium 2237.47 The base metal has 2250 3481.98 inventories has 3500 started to flatten, caused the base 2200 3400 3563.55 with zinc inventories metal to drop over 2150 in China jumping the past four weeks. 3300 12% toward the end 2100 2190.07 Analysts have 3200 of last month. forecast Chinese 2050 aluminium 3100 manufacture to 2000 3110.94 3000 expand in the next 1950 1994.08 few months. 1900 2900 1850 2800 December January 21-Feb December January 21-Feb

$US/t $US/t LEAD LME Price NICKEL LME Price 2640 16000 2621.08 While overall lead 2620 13694.9 Nickel is expected demand is 14000 to maintain its price, 2600 strengthening, 12000 with strong support fluctuating prices 2580 13589.96 at $US13,200 have caused 2560 10000 buffering a drop in week-to-week dips 10794.93 prices. 2540 8000 in prices. 2561.11 2520 6000 2500 2505.99 4000 2480 2000 2460 2440 0 December January 21-Feb December January 21-Feb

COMMODITY FOCUS COBALT PG 18

MARCH 2018 6 NEWS THE AUSTLIAN MINING REVIEW IN BRIEF High-grade hits at Jundee Nyrstar signs zinc “The 765g/t intersection offtake with New from the seismic reflector Century at Zodiac is nothing short of spectacular, QLD particularly when the GLOBAL metals business Nyrstar has huge potential along settled a dispute over historic offtake agreements at the Century zinc mine in strike is considered.” QLD. Nyrstar had commenced arbitration proceedings against miner New Century in February relating to the validity of historical offtake agreements at the mine dating back to 2007, however the company said it had suspended the action based on the signing of a new agreement. Nyrstar has agreed to a 5.5 year offtake agreement for 600,000 tonnes of zinc concentrate, which includes a Image: Northern Star Resources. variable tonnage allocation of 250,000t Northern Star has increased its exploration spend at Jundee mine by $10 million. for the first 3.5 years, rising to 350,000t for the final two years of the agreement. the Reserve category. gold fields in Australia. ELIZABETH FABRI New Century said it remained on WA The discoveries included high-grade finds “The Zodiac discovery is a game-changer track for first zinc production from the at the Zodiac discovery and the Armada of enormous proportions. project in Q3 this year. AUSTRALIA’S third-largest gold producer trend, 400m and 800m from the Jundee “The 765gpt intersection from the Northern Star Resources will boost its mine, respectively. seismic reflector at Zodiac is nothing short Gold Road secures exploration program after making multiple Northern Star executive chairman Bill of spectacular, particularly when the huge discoveries at and around its Jundee gold Beament said the results would change the potential along strike is considered, and we way the 10 million ounce (moz) Jundee gold are yet to intersect the second reflector.” $150m in funding mine in WA. field was viewed. Mr Beament said the 2.5km long Armada As a result of the drilling success, Northern “With production of 7moz over the past 22 trend also continued to grow. WA Star increased its FY18 exploration budget years, Jundee has been an exceptional mine “We are now very confident that we by $10 million to $45 million. by any measure,” Mr Beament said. NEAR-term producer Gold Road will grow Jundee’s 1.4moz Reserve base It plans to accelerate a number of drilling Resources has signed a revolving “But these results show the Jundee gold significantly, adding years to its mine life,” $100m finance facility and a $50m programs to bring the recent discoveries into field is now emerging as one of the greatest he said. dedicated working capital and gold hedging agreement for development and exploration activities. The funds will be utilised for Jobs growth highlights skills gap exploration at its Yamarna tenements and the development of its 50:50 Gruyere REUBEN ADAMS gold project joint venture in WA. WA “These finance facilities are a prudent move as we transition the company from JANUARY SEEK data has revealed a 54 per being an explorer with a development cent jump in mining, resources and energy asset to an Australian mid-tier gold jobs as miners struggle with a ‘talent shortage’ producer with significant exploration due to an emerging skills gap, sluggish wages upside and the financial capability and growth, and the rise of the ‘gig economy’. flexibility to grow further,” Gold Road SEEK ANZ managing director Kendra chief Ian Murray said. Banks said the employment website was seeing strong national demand for STEM Another setback for skills – science, technology, engineering and mathematics – which reflected a global talent New Acland shortage. “This ’talent shortage’ has been identified QLD by Australian CEOs as one of their top business risk areas, but it also creates huge THE future of the New Acland coal mine competitive job opportunities for Australians expansion has been dealt a blow after with engineering and IT skills,” Ms Banks the QLD Department of Environment said. and Science refused to accept the New In a survey of Mineral Council of Australia Hope Group application to amend the (MCA) member companies, 70 per cent of Environmental Authority (EA). respondents cited Research and Development “This very surprising decision and adoption of new technologies as important Job ad growth across Australian industries on SEEK, November 2017 to January 2018, compared to the same handed down without any reasoning or very important to achieving future period 12 months ago. or explanation, puts at risk more than improvements in productivity. 700 jobs despite the project undergoing But opportunities for Australia’s mining fallen to the lowest levels since 2000. increasingly casualised workforces, and rigorous government assessment industry would only be fully realised by “The number of students commencing sluggish wages growth in mining mean these processes, including an examination inspiring the next generation to pursue STEM mining programs across Australia in 2017 roles are less attractive and harder to fill. by the Independent Expert Scientific disciplines, MCA Education and Training show enrolments continue a drastic downward In February, outgoing Ausdrill founder Committee as part of the Federal director Gavin Lind said. trend to levels below those last seen in 2000,” and managing director Ron Sayers told The the submission stated. Government’s approval,” Queensland “Australia’s world-class mining sector Kalgoorlie Miner that skills shortages were Resources Council chief Ian Macfarlane needs more highly-skilled STEM professionals But the mining sector is grappling with a massive challenge for the company, as local said. – yet student participation and outcomes in ongoing skills shortages across a range of drillers who left the industry during the latest New Hope is preparing for a Judicial STEM subjects have declined markedly over roles. downturn have not returned. Review of the original Land Court the last decade,” Mr Lind said. Since the mining boom peaked in 2012 the “When the boom was on, we had a lot of decision – scheduled for 19 March – In a February submission to a Senate sector has shed more than 50,000 jobs; many people, and when the boom came off, people which could invalidate the Department’s inquiry into the future of the Australian of these workers have moved on to different were made redundant and went into other decision. workplace, MCA also warned that university industries. fields of work,” Mr Sayers said. enrolments in mining-focused programs had Now, the abolishment of the 457 visa, “A lot of them haven’t wanted to go back.” Truflo MARCH 2018 8 NEWS THE AUSTLIAN MINING REVIEW Roper Bar mine to reopen

ELIZABETH FABRI NORTHERN TERRITORY “It is expected that the project will start exports THE mothballed Roper Bar mine in the Northern Territory has the green light to reopen after its of iron ore product in mine management plan was approved. earnest in Q2 2018.” The iron ore mine, formally owned by Western Desert Resources, was placed in care and maintenance in April 2015 when the company went into liquidation. The project is now owned by international mining and shipping company British Marine subsidiary Britmar (Aust), who also has an interest in a bauxite operation in Weipa, QLD. British Marine subsidiary Nathan River Resources is the owner of the iron ore mining assets, which includes the exclusive rights and licenses relating to the Roper Bar mine, haul road Image: Western Desert Resources. and the Bing Bong port. Roper Bar is about 60km south of Ngukurr and 50km from the Gulf in the Northern Territory. “The Group now has in place all the relevant agreements and permissions to beginning the confidence in the sector. be great to see this mine up and running again.” Aboriginal owned and operated mine. export of iron ore product, as well as the ownership “The resources industry contributes millions Britmar has confirmed it will focus on local “To see projects such as this come back on line of a variety of equipment including road trains, of dollars to the NT economy each year and procurement and was planning to establish a means the Territory will finally realise results barges and loading equipment stationed on site,” head office in Darwin. British Marine said in February 14 statement. creates thousands of jobs,” Mr Vowles said. from the efforts of previous works, and for many The news followed a series of wins for the “In 2016/17 the value of mineral production in years to come,” Minerals Council of Australia NT “It is expected that the project will start Territory last year, including the opening of Edna the NT hit a new record of $3.63 billion. executive director Drew Wagner said. exports of iron ore product in earnest in Q2 2018.” Beryl mine, the first new gold mine in the region Northern Territory Resources minister Ken “Britmar has indicated they are keen to get in 12 years; the reopening of Bootu Creek mine; “This is proof of the shifting trend of growth Vowles said reviving Roper Bar indicated growing things moving as quickly as possible, and it will and the opening of Gulkula, Australia’s first and confidence in the sector once more.” Australia loses top spot

Image: Doray Minerals.

Doray Minerals’ flagship deflector mine. Doray raises $25m CAMERON DRUMMOND WA

GOLD producer Doray Minerals has tapped investors for $25 million to reduce debt, accelerate exploration, and fast track underground development at the Deflector copper-gold project. Doray will undertake resource definition drilling at Da Vinci north of the current Deflector mining operation. If successful, the company will have the funds to complete capital development for underground access to Da Vinci to boost total production. At the end of 2017, Doray had $47.5m in debt and $23.9m in cash and metals. Image: Fraser Institute.

The company will use $14m from the Australia has fallen to second place in the 2017 Fraser Institute’s survey of the world’s most attractive mining regions. placement, and $4.5m in existing cash to QLD fell from 10th to 12th place, South reduce its gross debt balance to $29m. ELIZABETH FABRI immune to the negative impact of regulatory Australia from 13th to 14th place, the Northern and public policy uncertainty. Doray managing director Leigh Junk NATIONAL said the company had worked tirelessly Territory dropped seven places to 27th, and “Ultimately, if processes are duplicative, Victoria dropped 14 places to 71st. costly and slow, companies will invest in to turn the company around over the last AUSTRALIA is no longer ranked the most NSW and Tasmania were the only Australian 14 months, and was pleased with investor attractive region for mining investment in competing jurisdictions.” States which improved their ranking, rising to response to the capital raising. the world after falling to second place in the The report came days after Australia’s 46th and 50th place respectively. “We have been fortunate to have the 2017 Fraser Institute survey of mining and ranking also fell in Transparency support of some very loyal shareholders exploration companies. Association of Mining and Exploration International‘s Corruption Perceptions Index. during this turnaround and we appreciate According to the Fraser Institute, Canada Companies (AMEC) chief executive Warren Of the 180 countries studied, Australia the contribution they have made to the was now ranked the most attractive region in Pearce attributed the results to increased red still ranked 13th place, but its CPI score had company,” Mr Junk said. the world for mining investment, with Finland tape, proposed royalty increases and regulatory decreased again for the sixth consecutive year. uncertainty across the country. “The Deflector production ramp up is rated the top jurisdiction. “This suggests a loss of trust in the now complete and the operation is running WA was the only Australian jurisdiction to “The geology has not changed, but Australian public sector and the perception, at at a steady state. appear in the global top 10, however it fell for Governments are damaging our investment best, that corruption has gotten worse, in only “The funds raised will provide a the third consecutive year, dropping from first attractiveness,” Mr Pearce said. a few short years,” Transparency International strengthened balance sheet giving us the place in 2015, to third in 2016 and now fifth “The report highlights that Australia’s Australia chief executive Serena Lillywhite flexibility to expedite our growth plans.” place in 2017 out of the 91 jurisdictions. mining and mineral exploration industry is not said. WT Hydraulics can solve all clients’ hydraulic problems. Industry-leading approach particles of dirt and water without removing WA any chemically bonded additives, retaining the oil’s premium quality. A UNIQUE and innovative technological approach has won WT Hydraulics the 2017 WT Hydraulics managing director Kraige Kalgoorlie Boulder Chamber of Commerce Cooper said each individual at the company and Industry Business of the Year award in played a part in it receiving the award, which the 11-20 employee category. boosted morale. With more than 20 years in business, WT “The team of values-driven individuals Hydraulics’ discovery that heavy machinery and our wise technology approach, is the and fixed plant oil could be cleaned and reason WT Hydraulics stands out as being reused again and again, has set it apart as a innovative and technology focused,” Mr leader in the industry. Cooper said. Its portable oil cleaning unit connects The company also specialises in workshop directly to engines, transmissions and repairs and rebuilds, mobile servicing, hydraulics, using an oil driven centrifuge system design and component testing. together with vacuum dehydration. More information can be found at This process removes sub-micron sized www.wthydraulics.com.au. MARCH 2018 10 NEWS: EXPLORERS ON THE MOVE THE AUSTLIAN MINING REVIEW IN BRIEF Pilbara gold JV gains momentum Minotaur and OZ end alliance

SOUTH AUSTRALIA

OZ Minerals and Mintoaur Exploration have mutually ended a two year exploration partnership searching for copper resources around the Prominent Hill mine in South Australia. Minotaur Exploration managing director Andrew Woskett said after various work programs, the teams concluded regional prospects for shallow copper mineralisation were limited. “The Alliance effort and aims were nonetheless worthy as they provided a constructive model for mid-tier – junior explorer cooperation, on which to strengthen their working relationship,” Mr Woskett said. Image: Artemis Resources. “Minotaur appreciates OZ Minerals having provided the opportunity to Artemis Resources’ Radio Hill plant south of Karratha, WA. explore OZL’s tenements.” partnership with the CSIRO to investigate forward.” CAMERON DRUMMOND the origin of the unusual watermelon seed On February 15 Artemis released WA nuggets found in the conglomerates. high-grade gold hits from exploration Exploration Artemis executive chairman David Lenigas conducted by Novo at the JV’s flagship Purdy’s ARTEMIS Resources and Canada-based Novo said the company was actively seeking to Reward project, with bulk sampling grades of Resources are ramping up exploration efforts impact at Silica understand the genesis of the unique type of 87.7 grams per tonne (g/t), 46.1g/t, 17.7g/t and in and around their conglomerate gold project gold in the Pilbara region. 10.6g/t. Hill in the Pilbara, which set off a mini mining “It is important that Artemis engage with rush last year when unique watermelon Artemis executive director Ed Mead said independent leading industry specialists the bulk sampling results from Novo were shaped nuggets were discovered in shallow to seek a deeper understanding as to why NSW excellent and the 2018 exploration season had ground. the gold exists in the conglomerates south now started in earnest. JUNIOR explorer Impact Minerals Artemis strengthened its balance sheet of Karratha, and indeed how these unique The JV was also granted a further four has revealed high-grade silver hits at at the start of the month, after an additional ‘watermelon’ seed nuggets were formed,” Mr tenements around Pyramid Station, adding its Silica Hill prospect in NSW. $2.5 million commitment from existing Lenigas said. shareholder Deutsche Balaton AG lifted its “Gaining a better understanding of these 178.8sqkm to the project area. Assays from three drill holes January capital raising to $9m. have confirmed increasing grades at key questions will enable refinement of our The tenements lie 50km east of the Radio depth of high-grade gold and silver On 12 February Artemis announced a exploration and evaluation methods going Hill plant and 35km east of Purdy’s Reward. mineralisation. Impact said the work to date indicated the prospect was very large and extended for at least half a Liontown high-grade lithium hit kilometre down dip, with large areas still untested. CAMERON DRUMMOND “The results are an exciting further WA breakthrough for us at Silica Hill as they indicate the mineralised system EXPLORER Liontown Resources has recorded is getting better at depth and to the further zones of shallow, high-grade lithium east,” Impact managing director Dr mineralisation in the final batch of assays Mike Jones said. from an RC drilling campaign at its Kathleen Valley lithium project, 680km north-east of Perth, WA. Silver City strikes Liontown’s second round of drilling at the project covered 3000m to test along the strike at Copper Blow identified in the maiden drilling program, returning thick zones grading at more than 2 NSW per cent lithium oxide (Li2O). The latest assays include all the holes Silver City Minerals has intersected drilled into the Kathleen’s Corner prospect excellent copper grades at its Copper – located immediately north-east of the Blow base and precious metals project company’s Mt Mann prospect. near Broken Hill, NSW. In contrast to Mt Mann, the mineralisation Broken Hill, which has historically at Kathleen’s Corner is hosted by multiple hosted mainly lead, zinc, and silver, stacked, flat-to-shallowly south-west dipping will add copper, gold and cobalt to pegmatites. its mining heritage if Silver City successfully proves up resources at the The mineralised trend was intersected over project. more than 500m strike including to the north, The company will immediately where it is obscured by shallow transported cover. commence drilling a Phase 2 program Image: Liontown Resources. and test targets in zones between the Liontown said planning was underway two highest grade sections. for in-fill and extensional drilling over both Kathleen Valley is emerging as a highly prospective lithium deposit. Silver City envisages between prospects, including diamond core holes, 4000m and 5000m of combined RC and is scheduled to re-commence as soon as Richards said the latest results provided a relatively flat-lying geometry at Kathleen’s and diamond drilling would need to the current drilling program is completed further evidence of the growing resource Corner is very encouraging and the company be conducted for an initial resource at Buldania, the company’s second highly potential of Kathleen Valley as a high-grade looks forward to moving ahead with our next estimation. prospective lithium project in WA. lithium project. phase of drilling at the project,” Mr Richards Liontown managing director David “The presence of shallow pegmatites with said.

MARCH 2018 12 NEWS: THE CONTRACTORS THE AUSTLIAN MINING REVIEW IN BRIEF MND boosted by resources revival Macmahon acquires TMM

NATIONAL

MINING services contractor Macmahon has inked a deal to acquire Brisbane-based civil construction, operations and maintenance services provider TMM Group. Macmahon said TMM would provide the company with additional civil capability for initial earthworks and construction mining contracts, “Major construction as well as the ability to target site prospects are improving, rehabilitation projects. particularly in iron The news was followed by Macmahon’s release of its six month ore, and demand for results ending 31 December, which maintenance services saw the company return to the black with net profit after tax of $8.2 million. is expected to remain strong.”

GBF wins Image: Monadelphous. Millennium deal The engineering group has enjoyed a bumper first-half FY18. Monadelphous managing director Rob Also during the period, Monadelphous carried CAMERON DRUMMOND Velletri said much of the new work and growth out an upgrade to the water treatment plant at WA WA in the period was driven by its strong operational BHP’s Mining Area C iron ore operation, as well performance with longstanding customers. as a flurry of structural and mechanical works at ENGINEERING services group Monadelphous MILLENNIUM Minerals has awarded Monadelphous has won $385m worth of smelting and energy projects across Australia. has posted a 31.6 per cent hike in first-half GBF Underground Mining Company new work since the start of the financial year, “Market conditions in our core resources profits on the back of rejuvenated mining sector the underground contract for the new including a 12 month extension of contract market have improved, with solid demand earnings. Bartons mine, which forms part of its work at Rio Tinto’s Pilbara operations and two expected to continue for sustaining and Nullagine gold project in WA. Net profit after tax was $37.6 million, enhanced packages of work at its Oyu Tolgoi underground brownfield capital works,” Mr Velletri said. The three-year contract included by a 39 per cent increase in sales revenue to operation in Mongolia. “Major construction prospects are improving, the establishment of an underground $874.1m on the previous corresponding period. The company’s newly established engineering, particularly in iron ore, and demand for portal at Bartons, all decline and The strong performance was reflected procurement and construction (EPC) business maintenance services is expected to remain level development, ore driving, by revenue increases in the company’s core Mondium was awarded its first contract for the strong. stope production and two, 100 metre resources and energy markets in Australia from design, construction and commissioning of a new exploration drill drives. “The outlook for the company is positive, with a high volume of contracts secured over the past feed system to existing plant at Talison Lithium’s full year revenue expected to be up around 30 per “We are rapidly progressing 18 months. Greenbushes mine site. cent on the previous year.” towards the development of our first underground mine in Nullagine, and we’re looking forward to working closely with GBF as they mobilise to No dividend as NRW doubles revenue site in the coming weeks,” Millennium chief executive Peter Cash said. CAMERON DRUMMOND NATIONAL “The pipeline of opportunities is currently Century MINING services contractor NRW Holdings has decided against an interim dividend, despite valued at $6 billion, of contracts the business continuing to “meet or exceed our which approximately expectations”, securing contracts and contract extensions across all its businesses. $1.5 billion are active announced The company almost doubled its yearly tenders.” revenue to $345.3 million and increased profit QLD from $11.9m to $15.3m. Last year, the company acquired east coast NEW Century Resources has named mining services business Golding for $85m, National Pump & Energy (NPE) and funded by a capital raising and debt facility. Paragon Tailings as the preferred Because of this, the company decided to retain contractors to complete hydraulic its cash balances and not pay an interim dividend mining service works for its Century to ensure its debt was fully serviced. tailings deposit. It has not paid out to shareholders since a The company said hydraulic mining was determined the optimal method for fully franked interim dividend of 4c per share in extraction to allow efficient recovery of October 2014, when it posted an H1 FY14 profit the ore and transport via existing site of $22.4m and had a net debt of $39.8m. Image: NRW Holdings. slurry piping infrastructure. NRW’s activity in the six months to NRW said it had strong order book growth prospects. “The selection of NPE and Paragon December 31 2017 included mining services at as the company’s hydraulic mining Middlemount, and contract mining at the Kogan “NRW’s strong order book growth not only continued to improve and “more closely aligns preferred contractors represents Creek, Curragh, Isaac Plains and Pilgangoora indicates the incremental work related to Golding with our historic delivery capability and our another key step in the restart of projects. but also a number of key contract awards in the enhanced capability as a result of the Golding operations at Century,” New Century The company said it had an order book of six months to December 2017,” Mr Pemberton acquisition”. chief operating officer Barry Harris $1.6 billion, with $360m of work scheduled for said. “The pipeline of opportunities is currently said. delivery in the second half of the year. “Following the announcement of a $111m valued at $6 billion, of which approximately $1.5 “We look forward to working with NRW chief executive Jules Pemberton early contractor involvement for OZ Minerals, we billion are active tenders,” he said. our new partners to ensure the safe, said the acquisition of Golding had been an have now commenced the first stage of the work “These tenders are spread across the civil efficient and timely progression to outstanding success and largely contributed to on site with the construction of the aerodrome at business in iron ore and public infrastructure production at the mine later this year.” the significant increase in revenue and earnings the Carrapateena project.” and in mining in coal, lithium, nickel, gold and compared to the six months to December. Mr Pemberton said the quality of prospects bauxite.”

MARCH 2018 14 NEWS: INTERNATIONAL THE AUSTLIAN MINING REVIEW IN BRIEF Newcrest spends big on Lundin India will import “This equity investment met coal long term aligns with our aspiration

INDIA of being exposed to five tier 1 orebodies by 2020.” IT IS likely the Indian steel industry will depend heavily on imported met coal for the next decade at least on the back of new infrastructure projects and weak domestic production. Speakers at the Coaltrans India conference in Goa said demand would be boosted as India’s steel output was forecast to increase from 100 million tonnes in FY17 to between 110mt to 112mt in FY18. Arvind Rajgopalan from JSW Steel Limited said that the path towards 300mt of steel capacity by 2030, according to India’s new steel policy formed in 2017, “seems on track”.

Newmont Image: Lundin Gold. scoops another Fruta del Norte mine is currently under construction with first gold expected in late 2019. The companies have also signed a binding operation and we look forward to sharing our ELIZABETH FABRI sustainability award Heads of Agreement to form a joint venture experience with Lundin Gold to further develop ECUADOR that will explore eight early stage concessions this high-quality deposit,” Mr Biswas said. US held by Lundin Gold. “This equity investment aligns with our NEWCREST will invest $US250 million to Newcrest can earn up to a 50 per cent stake aspiration of being exposed to five tier 1 acquire a 27.1 per cent interest in Canadian orebodies by 2020.” NEWMONT has been recognised for top miner Lundin Gold, which is developing the in the joint venture company by spending performance in the mining sector in The Fruta del Norte gold project in South East $US20 million over a five year period, including Lundin Gold president and chief executive Sustainability Yearbook 2018, published Ecuador. a minimum of $US4 million in the next two Ron Hochstein said the team could now focus by investment company RobecoSAM. years. The 340,000 ounce per annum Fruta del on driving the development of Fruta del Norte. It’s the latest in a bag of awards for the Norte project, currently under construction, is Newcrest managing director and chief “Newcrest has extensive experience building global miner, which, in addition to being aiming for first production by the end of 2019. executive Sandeep Biswas said the equity gold mines and bringing them into production,” ranked as the world’s leading miner in investment and exploration farm-in he said. FORTUNE magazine’s most admired Under the deal, Newcrest has the right to appoint two directors to the Lundin Gold board, partnership was consistent with its strategy of “As our strategic partner, their knowledge companies list, was again confirmed as securing high potential orebodies. a constituent of the FTSE4Good Index and one of its nominated directors to a project and expertise will be valuable as we develop Series, with an Environmental, Social advisory committee that will oversee Fruta del “The Fruta del Norte epithermal orebody Fruta del Norte into a large, high-grade gold and Governance (ESG) rating of 95 out Norte development. has many similarities with our Gosowong mine.” of 100. In December, Newmont was one of only two resources companies named in Norsk Hydro bids for Rio assets a Drucker Institute ranking of the top 250 best managed companies based on employee engagement and development, ELIZABETH FABRI and social responsibility. EUROPE

NORWEGIAN aluminium company Norsk Hydro has made a binding $US345 million $US500m Obuasi offer to purchase Rio Tinto’s ISAL smelter in Iceland. redevelopment The binding offer would give Norsk Hydro full ownership of the ISAL smelter, a 50 per gets green light cent stake in Swedish plant Alufluor, and the remaining 53.3 per cent share in its Aluchemie GHANA project in the Netherlands. ISAL currently produces 210,000 million ANGLOGOLD Ashanti has got support tonnes of liquid primary aluminium per year from the Government of Ghana for a and 230,000mt of extrusion ingot. “The offer demonstrates our $US500m redevelopment of its troubled The plant has undergone significant strong belief in aluminium, Obuasi gold mine into a mechanised upgrades in recent years, including a new underground operation. gas treatment centre, pot relining and new which is seeing the strongest Production for the first 10 years will casthouse, and runs on the same technology global demand growth platform as Hydro’s Husnes plant in Norway. be focussed on the upper ore bodies among base metals.” and is expected to average between Through the acquisition of the three assets, Image: Rio Tinto. 350,000oz and 450,000oz at an average Norsk Hydro said it will increase its annual head grade of 8.1g/t. aluminium production to 2.4mt in 2018. The ISAL smelter in Iceland. “Obuasi now has the mine and labour “The offer demonstrates our strong belief Rio Tinto Aluminium chief executive Alf Tinto in other ventures. ISAL, Aluchemie plan, geological understanding and in aluminium, which is seeing the strongest Barrios said both parties expected to conclude and Alufluor are a natural fit with Hydro’s social model to match its world-class, global demand growth among base metals,” high-grade ore body,” AngloGold chief the sale in the second quarter of this year. portfolio and this transaction should secure Norsk Hydro president Svein Richard the long term future for the sites and continued Srinivasan Venkatakrishnan said. “The binding offer for the sale of these Brandtzæg said. economic benefit for the wider communities.” “The project metrics show a assets provides further evidence of Rio Tinto’s The company is currently running a The news followed Rio’s January high-return, long-life project that not commitment to strengthen our business and technology pilot in Norway which aims to be announcement it would sell its Aluminium only brings ounces to account quickly deliver value by streamlining our portfolio,” the world’s most energy-efficient and climate Dunkerque smelter in France to GFG Alliance and profitably, but also offers attractive friendly aluminium production facility. Mr Barrios said. returns on our investment.” for $US500 million, and invest $C250 million It said it planned to roll out these “Hydro has a solid track record in the to extend operations at the Vaudreuil alumina innovations to other projects such as ISAL. aluminium industry and is a partner to Rio refinery in Canada. MARCH 2018 THE AUSTLIAN MINING REVIEW NEWS 15

THE AUST LIAN MINING REVIEW EES Bald Hill Lithium Mine Bauxite Mining in Cape York BGC Contracting Construction and Maintenance Services Doray Minerals Evolution Mining Galaxy Resources Hillgrove Resources Iluka Resources Metals X Newmont – Tanami Northern Star Resources – Jundee Mine Resolute Mining Saracen Minerals Tomago Aluminium

CALL US TO OOK OR PLACEENT TODA NS (08) 6314 0303 0405 345 312 OOKING DEADLINE March 16th 2018 [email protected] MARCH 2018 16 NEWS: TECHNOLOGY & INNOVATION THE AUSTLIAN MINING REVIEW IN BRIEF RCT and RUC join forces

EU tests “This partnership aims to further build on underwater this adaptability and realise an automated mining tech connected mine, unconstrained by the EUROPE limitations of a single

ACTIVELY mined over centuries, OEM supplier.” Europe’s most easy-access deposits are either depleted or underwater. The European Union is looking at ways to utilise underwater mining robots to access abandoned or flooded mine sites. Its Viable Alternative Mine Operating System (VAMOS) project uses remote operation mining vehicles that are able to submerge themselves under water, lock on to an orebody and pump it up to the surface as slurry for processing. The system was designed using cutting edge dredging technology to transport material out of the water body using a flexible piping system. The VAMOS team are currently testing prototypes in flooded pit lakes in Bosnia and Herzegovina at depths of up to 120 metres below the water. Image: RCT. The signing of the partnership agreement between RCT and RUC.

RCT executive director and chief executive RCT’s Proof of Concept team (PoC Works).” ELIZABETH FABRI Brett White said the team were looking forward NATIONAL RUC Mining managing director Barry Upton LIT to to seeing the partnership come to fruition in the said the contractor made the decision to partner coming months. with RCT because of its expertise in technical GLOBAL smart technology company RCT will “We look forward to the rolling out of our new solutions innovation, particularly in loader partner with underground mining contractor acquire solutions and further enhancing our existing automation. RUC Cementation Mining Contractors to trial solutions with RUC Mining’s assistance,” Mr “RCT provides flexibility across all OEM’s fleet new underground mining technologies across White said. offerings, and in addition, the company extends battery mines in Australia and overseas. “What’s exciting about this partnership is that itself to broader mine information management,” Trials will begin at Dacian Gold’s Mt Morgans we have the opportunity to collaborate directly Mr Upton said. developer gold mine which is expected to commence and deeply with an innovative customer wanting “This partnership aims to further build on this production this month, where RUC has a three to adopt our Smart Technology and make step adaptability and realise an automated connected year contract to provide underground mining changes in the industry. mine, unconstrained by the limitations of a single QLD services. “Having access to a mine to test is key to OEM supplier.” LITHIUM Australia (LIT) has entered a binding agreement to purchase Brisbane-based battery cathode developer Very Small Pre-pilot success for Hazer Particle Company (VSPC). VSPC has developed CAMERON DRUMMOND world-leading cathode material WA A Stage 1 pilot production technology which can deliver a wide range of cathode plant facility will materials for lithium-ion batteries UNIVERSITY of Western Australia research produce 1000 (LIB). spinoff Hazer Group is continuing to progress the development of a large-scale synthetic LIT said the acquisition comprised tonnes per annum graphite production facility in WA with mining VSPC’s intellectual property and services group Mineral Resources (MinRes). (tpa) of high-grade decommissioned pilot plant in Brisbane, designed to produce During Q4 2017, Hazer successfully synthetic graphite, complex metal oxides/phosphate demonstrated the on-line injection of iron ore with commissioning powders for the production of LIB. catalyst in the pre-pilot plant, which it says was “The ability to utilise mine waste, a “key development milestone” towards scale-up expected in Q3 this unconventional lithium minerals of the Hazer Process towards commercialisation year. and waste batteries in the production and a significant step in de-risking the Image: Hazer Group. of high-quality cathode materials is technology. the ultimate test of sustainability,” The groundbreaking process uses natural The Hazer Process uses unprocessed iron ore to create synthetic graphite. LIT managing director Adrian gas and unprocessed iron ore to create low-cost, upgrade to a 10,000tpa-plus large-scale plant. to investigate the commercial and technical Griffin said. low-emission “clean” hydrogen, as well as Hazer will receive revenue-based royalties viability of the Hazer technology for the steel “The integrated technologies synthetic graphite – a key element in the industry. manufacture of lithium-ion batteries. from any production from the JV, and all available to LIT will allow for better intellectual property of its technology would Hazer and Primetals – a JV between resource utilisation, reduce the A Stage 1 pilot plant facility will produce 1000 be exclusively retained and licensed to MinRes Mitsubishi Heavy Industries and Siemens – quantity of valuable materials going tonnes per annum (tpa) of high-grade synthetic over the course of the agreement. will work toward using hydrogen produced to landfill and enable the rebirth of graphite, with commissioning expected in Q3 by the Hazer process for steel production with It would also own any new IP or many materials as new generation this year. minimum carbon footprint. Hazer said that the LIBs.” Hazer said once the joint venture (JV) was improvements that may arise from the project. graphite by-product could also be used as an satisfied with the production parameters of the In October last year, Hazer signed a alternative reductant or carburiser in the steel pilot facility, MiNRes would execute plans to non-binding MOU with Primetals Technologies making process.

MARCH 2018 18 COMMODITY FOCUS: COBALT THE AUSTLIAN MINING REVIEW IN BRIEF Image: Mikes Photos from Pexels. Strong ASX debut for Accelerate TAS ELECTRIC COBALT-focussed explorer Accelerate Resources successfully listed on the ASX in February following an oversubscribed $5 million initial public offer (IPO). The Company’s initial focus will be the Mt Read cobalt project in Tasmania, where soil samples taken in October 2017 graded up to 7800ppm cobalt, 0.86 per cent copper, 2300ppm CHARGE nickel, and 0.81 g/t gold. The price per tonne of cobalt – essential to EV battery production – rose to “The company considers the Mt Read cobalt project to be its flagship $82,000 on the London Metal Exchange in mid-February. This represents a tripling project, and one that holds significant potential to increase shareholders of value since the start of 2016, and a 147 per cent jump since January 2017. value through a systematic and scientific exploration approach,” AX8 said in a statement. REUBEN ADAMS

Northern Cobalt BURGEONING EV demand is already proving a disruptive force for both the mining industry locks in prospective and end users of metals such as lithium and cobalt. ground In order to meet this increasing demand for EV batteries, cobalt supply will need to reach NT 180,000 tonnes (t) by 2026 – up from 48,000t in 2016, according to Benchmark Mineral NORTHERN Cobalt will acquire nine Intelligence. tenements in the Northern Territory’s Platts expected a tripling in demand to more Arunta region after receiving final than 300,000tpa by 2030. Government approvals in February. This surge in demand for battery metals could effectively slow the EV boom – with tightening The company will be pursuing Glencore’s Katanga mine in the DRC will boost mapping, soils, and rock chipping cobalt supply the most likely offender, wrote cobalt production by 11,600 tonnes in 2018. to work up drill targets over the Diana Kinch, editor at S&P Global Platts SBB Image: Glencore. coming months as it sees this project Steel Markets Daily. as complementary to its advanced “Bottlenecks are already emerging in the EV advanced local projects and cobalt-focused “We have billions of dismissed end-of-life Wollogorang cobalt project to the supply chain,” she said. explorers. smartphones … that could be utilised to power north. “Tesla motors fell behind in its production In February, shares in of battery and millions of electric vehicles. Millions,” Mr In January, Northern Cobalt targets last October. technology metals developer Australian Mines Grynberg said. increased its Wollogorang project “The lag is persisting partly because tenure by 341 per cent to 4986sqkm with surged after the company signed an off-take “If there is one thing that needs to be done Panasonic has been unable to supply batteries agreement with South Korean battery maker … starting now is to make sure there are the granting of five new surrounding quickly enough, due to insufficient metals SK Innovation for nickel and cobalt from its mechanisms in place to motivate people to tenements on the NT-QLD border. An supply available at the right price, according to flagship Sconi project in QLD. return their disused smartphones.” additional two tenements were applied metals consultancy Roskill. for over prospective ground across the The agreement is contingent on Australian But recycling will not be enough on its own “Likewise, Volkswagen has reportedly been QLD border. Mines securing project financing by the end of – projected annual cobalt production from old unsuccessful in striking a deal with any mining 2018 and for mining to start before the end of batteries is a drop in the ocean next to the company after issuing a tender in September 2020. for a minimum of 5 years supply of cobalt for increase in projected yearly demand. Clean TeQ is aiming to start production from batteries at a fixed price.” Companies and researchers are also it’s Sunrise project, one of the largest cobalt High-grade results investigating alternatives; like minimising the Now, Apple is looking at buying cobalt in deposits outside Africa, in 2021. bulk direct from miners for at least the next five amount of cobalt in EV batteries, or replacing at Mt Cobalt In February, the NSW Department of years, and BMW is close to signing a 10 year it entirely. Planning and Environment formally issued the supply contract for both lithium and cobalt. Most recently, researchers at Northwestern QLD mining leases (MLs) over the project area. In response to demand, mining giant University in Illinois have created a highly The company is currently preparing a mine Glencore is set to increase its cobalt output in efficient, inexpensive lithium-iron-oxide battery operation plan (MOP) for approval, which will AUS Tin Mining has recorded further the Democratic Republic of Congo (DRC) at its that replaces cobalt with iron. enable the commencement of site works and high-grade drilling results at its Mt Katanga mine, which will add 11,600 tonnes of Cobalt project near Gympie. construction later in 2018. Professor Christopher Wolverton and his cobalt to Glencore’s total production in 2018. team of researchers, in collaboration with a In January, Aus Tin completed the But supply side issues are still exacerbated team of researchers from Argonne National last three holes of a seven hole drill Game Changers by the geopolitical risks and human right Laboratory, developed a rechargeable program to test potential extensions abuses associated with the industry in the DRC, lithium-iron-oxide battery that can cycle more below and along strike from historic But these project are years away from which is currently responsible for two-thirds of lithium ions than its common lithium-cobalt- workings at Mt Cobalt. production and will not fill the supply gap in the global supply. oxide counterpart. Latest drilling confirmed high grade short to medium term. The DRC parliament has also proposed a Professor Wolverton’s team has improved cobalt mineralisation close to surface hike in cobalt royalties from 2 per cent to 10 per This has seen companies look for innovative with intervals including 1.1m at 1.2 alternatives. upon the common lithium-cobalt-oxide battery cent to boost revenues as part of a long planned by leveraging two strategies: replacing cobalt per cent cobalt and 1.26 per cent nickel. A Samsung subsidiary plans to buy stakes mining code revamp, which may deter further with iron, and forcing oxygen to participate in Chief executive Peter Williams said in recycling tech companies to ensure long-term foreign investment. the reaction process. this last round of drilling enabled the This makes more production outside the cobalt supply, Bloomberg reported earlier this company to establish a more defined “Four lithium ions for each metal — that politically-charged DRC essential to minimise year. target zone. would change everything,” he said. the impacts of an impending cobalt supply One of these recycling companies is “Going forward the company will deficit. Belgian-based Umicore, which had about 10,000 “That means that your phone could last eight investigate the potential to extend the employees and a turnover of €11.1 billion in times longer or your car could drive eight times target zone through a combination of Australian Projects 2016. farther. field reconnaissance, 3D modelling and Umicore chief executive Marc Grynberg told “If battery-powered cars can compete with or drilling,” he said. Australia, home to the world’s second-biggest the Financial Times that recycling cobalt from exceed gasoline-powered cars in terms of range cobalt reserves, is seeing a rush of interest in used smartphones was an untapped market. and cost – that will change the world.” MARCH 2018 THE AUSTLIAN MINING REVIEW NEWS 19

Some of EMS Group’s clients include Newcrest Mining, Centennial Mining, and Aeris Resources. A growing regional network Cavanagh said. NATIONAL “This year will see significant new EMS investment across Australia, with EIGHT years ago, the company today a new office just opened at Orange to known as EMS Group was established in complement our Dubbo headquarters and Dubbo as Eastern Mechanical Services. presence in Sydney and Perth. Since then EMS has become a national “We’ve extended our state-of-the-art organisation serving the underground workshop at Dubbo where our skilled mining industry right across Australia. team completed 10 major rebuilds last EMS Group director Tom Cavanagh year. said it’s a continued growth story for EMS “Already this year the team has in 2018. undertaken four major rebuilds. “As nationwide demand continues to “With 90 per cent of our growing team grow, so too does our team, our facilities, living in regional areas, we’re looking and our capacity, with field servicing now forward to servicing Australia’s vibrant, available anywhere in Australia,” Mr growing mining industry.”

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CALL US TO OOK OR PLACEENT TODA NS OOKING DEADLINE March 16th 2018 bra@miningoilgas.com.au THE AUSTLIAN MINING REVIEW MARCH 2018 20 SPECIAL FEATURES GFG ALLIANCE

British billionaire Sanjeev Gupta’s GFG Alliance is on an Australian spending spree. The A STRONG new owner of Arrium’s Whyalla has big plans to put Australia on the map as a global leader in vertically integrated steel and aluminium production — and the path to achieve this is VISION nothing short of impressive.

All images: GFG Alliance. Photography: Sean Kelly.

“It was very tiring, I commuted back ELIZABETH FABRI and forth from Europe to Australia about 12 times last year, and never for more than GFG’s landmark acquisition of Arrium’s about five days at a time,” Mr Hambro told Whyalla steelworks in August 2017 was The Australian Mining Review. just the first step in Sanjeev Gupta’s plan to “But doing that sort of travelling gives transform Australia’s steel and aluminium you plenty of time to think and contemplate industry, and become one of the country’s your actions, and I think we set about that largest renewable energy producers. [acquisition] process very effectively. Mr Gupta has already made a big name “We did a huge amount of due diligence for himself and his $14.5 billion business in the UK — and more recently the US on all of the businesses, and we had a very and Europe — where he has rescued and good team analysing it which put us in a revived a number of distressed metals, very strong position. mining, engineering and power generation “We also enjoyed a strong relationship operations over the last three years. with the Government and got to know His core business strategy is to own and Malcolm Turnbull and Minister Sinodinos manage as much of the supply chain as very well. possible – adding value at each stage. “They said ‘look, we want companies The GREENSTEEL model is designed like you in Australia, and we look forward to secure a competitive, low-carbon future to working with you to provide the for metal manufacture through recycling, environment you need to invest here’.” use of renewable energy and vertical The acquisition was a two horse race, integration; defying common perceptions of with a Korean consortium also vying for the metal manufacture as a dying industry. Arrium assets. In Australia, Mr Gupta plans to replicate However, Mr Hambro said it was always this business model. comforting knowing the Australian people In April 2017, the group announced it and Government were in its corner. had employed senior international metals “I think it was heart-warming whenever and mining executive Michael Morley to we were involved that people wanted us spearhead the acquisition of the Arrium there,” he said. business. “We are a group that has a long history But Arrium, the cornerstone of the of industrial growth, a very strong history Group’s Australian strategy, wasn’t always of industrial turnaround, and so we were a ‘done deal’ for GFG Alliance. always very welcomed by the management The acquisition took months of back team because I think they saw us as a safe Image: Platts. and forth and extensive research, Mr pair of hands to steward this business Gupta’s right hand man, GFG Alliance chief onwards. Sanjeev Gupta was named ‘CEO of the Year’ at the prestigious S&P Global Platts Global Metals Awards in investment officer and SIMEC Group energy London in 2017. and mining chief executive Jay Hambro said. (CONTINUED ON PAGE 22) MARCH 2018 THE AUSTLIAN MINING REVIEW GFG ALLIANCE 21 Rising from adversity

NATIONAL

WHEN Arrium entered voluntary administration in 2016, Aquest Electrical had no idea what 2017 would hold for the company. “It turned out to be a very adventurous year,” Aquest director Darren Hage said. “We made the decision to knuckle down, adapt and survive.” 2017 began with a major fire on the Whyalla FOTB Barge, with Aquest working long hours, and enduring extreme temperatures to get the Barge back into operation for Arrium exports to get back on track. Aquest then supervised Australian, Singaporean and Malaysian crews installing waterslides and Wi-Fi networks on the Pacific Dawn cruise ship located in Singapore Dry Dock. “We also played the main role in the installation of the IPF for the Arrium/SIMEC mines,” Mr Hage said. This was followed by the installation of an More information can be found at www.aquest.com.au. additional iron ore washing plant EVOwash at the OBP Baron for Mineral Technologies/ Onesteel iron making. while looking after our long term customers for the customer. Downer Group, all while carrying out major On the Santos Port Bonython Jetty, Lucas, BIS, Olssons, Flinders Power, Liberty “Most importantly, we completed these electrical upgrades to the pump stations Aquest completed the Capstan winch Onesteel and SIMEC; not forgetting BMFS important and often high risk tasks without Katunga and PS3 for critical supply water replacement in hazardous area and - Department of Planning Transport and incident or injury,” he said. management required to operate SIMEC upgraded the cathodic protection to the Infrastructure,” Mr Hage said. “The future looks bright for those willing Mining Operations. entire jetty structure for the Department Mr Hage added that Aquest to have a go and Aquest looks forward to Furthermore, Aquest completed a major of Planning, Transport and Infrastructure. management were extremely proud of providing ongoing support for the industry in electrical upgrade of #1 RAM at Liberty “We completed all this and much more, their employees who put in massive efforts 2018 and beyond.” MARCH 2018 22 GFG ALLIANCE THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 20)

“We are trying very hard to debunk the culture of ‘dig and deliver’ by generating more value within Australia.”

“There were a many moment where they [the Korean consortium] were beating us, and we were beating them, but I was also confident that we had the GFG ALLIANCE IN BRIEF best proposition for the business and that’s what we’re delivering now.” Liberty GFG Alliance’s industrial and metals business Liberty is a large steel and aluminium producer and participant in high value A Turnaround Strategy add or ‘advanced engineering’ products. Headquartered in London with global hubs in Dubai, Singapore, Sydney and Hong Kong, the group has five divisions – Commodities, Recycling, Steel, Aluminium, and Engineering, and trades in more than Through its Arrium takeover, GFG Alliance inherited the 1.2mtpa Whyalla 50 countries. steelworks and its 10mtpa iron ore mining operations in South Australia’s SIMEC Middleback Ranges; Whyalla port and rail; the OneSteel steel Scrap Recycling An acronym for Shipping, Infrastructure, Mining, Energy and Commodities, SIMEC is a fully independent company owned business; 4mtpa OneSteel secondary by Sanjeev Gupta’s father Parduman K. Gupta. In South Australia, its mining division (iron ore and coking coal) supplies steelworks; Australian Tube Mills; and the raw material for the Whyalla blast furnace and to third parties. On the energy front, SIMEC is the largest developer OneSteel Reinforcing, ARC and OneSteel metal centres. of renewable energy projects in the UK and specialises in trading energy and energy related commodities. It also owns The mining and port operations will commercial ports, railway stock, marine fleets, and storage facilities. be operated under GFG’s SIMEC Mining and SIMEC Infrastructure business, Wyelands while the steelworks and OneSteel assets will be operated under the umbrella of The other pillar to GFG Alliance is its Wyelands financial services group which comprises an independent bank and financial Liberty OneSteel. advisory services business. The British bank is focused on global trade and was established to help industry grow and SIMEC’s new mines incorporated enable businesses to trade more easily around the world. the Iron Baron, Iron Knob and South Middleback Ranges mine sites, which collectively produce hematite and Jahama magnetite iron ore that is respectively Jahama Estates is GFG Alliances’ property business. It operates a wide portfolio of industrial, commercial, residential and railed and piped to Whyalla. agricultural properties across four continents with the majority in the UK. It is currently the fifth largest private land owner Following the takeover, Liberty in the UK. OneSteel embarked on a 100-day review of the business to finalise a transformation plan to ensure the long term sustainability of the Whyalla operations. The 100 day program concluded in Hambro said. producer, whether from iron ore and coking Mr Hambro said most of the mistakes December, and later that month GFG The group was now undertaking coal to primary steel, or from scrap metal that had been previously made were at announced its final concept plan for a a detailed feasibility study on the and renewable energy to GREENSTEEL.” a corporate level regarding the balance $1 billion transformation of the Whyalla transformation, of which $50 million will be Mr Hambro added the Tahmoor coking sheet. operations. funded via a South Australian Government coal was well known and regarded in the “We didn’t turn up on day one and say The transformation investments grant. domestic and international markets for its ‘you’re doing it wrong – you need to do it included feed preconditioning and utilising “We are moving it effectively from grade and quality. the GFG way’,” Mr Hambro said. latest technology to reduce ferrous feed concept stage through to where you can “It was a natural buy for us because it is “We set a 100 day program whereby costs for the steelworks; co-generation and press the button on a plan to construct, and a supplier for Whyalla,” Mr Hambro said. that will begin to be enacted throughout we listened to and worked with [Arrium the capture of process off-gases to improve “At the moment it does about 5 per cent this year,” Mr Hambro said. employees] to understand how they were steelworks energy efficiency; targeted of its product to Whyalla, we have a view [running the business], to understand modernisation and capacity upgrade The next step in its master plan was that we could take that up to 30 per cent.” investments across the steelworks and the an acquisition of Glencore’s Tahmoor their bright ideas for the future of the Later in the month, SIMEC Mining also rolling mill; and investments to increase metallurgical coking coal mine in NSW in business, and also try to provoke a received approval for two mining leases to production by about 50 per cent to 1.5mtpa. January. broader thought program to discover develop the Iron Sultan mine, which will different ways they could do things,” Mr The group was also looking to improve Mr Gupta said the deal was a key provide 600,000 tonnes of ‘cheap’ iron ore to Hambro said. logistics around the transport of materials element of GFG’s transformation plan for the steelworks, and the Iron Warrior mine, “We had a fundamental plan that we from the mine to Whyalla, as well as the Liberty OneSteel Whyalla steelworks to capable of exporting up to 1.5mtpa. shipping. optimise and expand production. were recommending, but there is obviously When asked when these could be brought no point when you buy a business to “We brought in our global network to “Through this purchase we secure and into production, Mr Hambro said it was not impose your plan on day one. support that. Our shipping team based de-risk an important feed for the Whyalla immediate, but would be “within the next “You need to understand the business, in Singapore spent a huge amount of time steelworks,” Mr Gupta said. few years”. and the people that understand it best are working with the Whyalla team to help “This, together with our iron ore mines those that have worked there for many them fit into our global [transport] network in South Australia, now makes GFG the years.” moving material around the world,” Mr only fully-integrated Australian steel (CONTINUED ON PAGE 24) MARCH 2018 THE AUSTLIAN MINING REVIEW GFG ALLIANCE 23 MARCH 2018 24 GFG ALLIANCE THE AUSTLIAN MINING REVIEW

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Renewables Focus “Our pumped hydro is 100MW but would The Next Phase couldn’t comment on the specific situation in last for four hours. South Australia. In early February, GFG Alliance’s “The battery array serves an important Mr Hambro did not rule out diversification He added overall the vision for GFG in Australia was creating an integrated SIMEC committed $1.7 million towards purpose, but I don’t think it serves into other industries when it came to future end-to-end business. pre-feasibility studies for its Middleback the purpose that people think. It does acquisitions. something called frequency response and it “Australia has a history of what mining Pumped Hydro project. “We have an opportunistic view on life,” he deals with short term blips in demand and companies call ‘dig and deliver’,” Mr Hambro Middleback is a key plank in the Group’s said. supply, whereas pumped hydro is a hard said. plan to establish 1 Gigawatt of additional work course of generation.” “I have big business development team dispatchable renewable energy generation in “You will dig up a product and ship it Mr Hambro encouraged more mining who spend their life pouring over projects and offshore – it’s the same in various sectors. South Australia for the Whyalla steelworks if we see a role for us in a different metal or and energy companies to collaborate to “Malcolm Turnbull said to me ‘Jay, we and other industrial and commercial users. a different commodity, we will jump on that.” utilise legacy mining projects for future have a long history of producing wool, sending The pumped hydro project would use renewable energy generation. Electric vehicle manufacture could be a it overseas and buying Italian suits’. exhausted mining pits from the SIMEC “Australia has a huge amount of scope to new market for GFG. In February, rumours Mining division as reservoirs for storing “There is not enough focus in the country establish this type of generation,” he said. circled that the group had approached on adding value, and that’s what we’re doing. hydro power. General Motors to buy assets from the closed “The Prime Minister says he doesn’t “We will not just produce the steel in Study costs will be partially supported by former Holden factory; a proposal that was want to see projects that are just solar or Australia. We will use what we now have a $500,000 grant from the State Government. reportedly rejected by the car giant. just wind; they’ve got to have some storage – which is 150 distribution centres across Mr Hambro said role of Tesla’s recently component to them as well, which is very However, Mr Gupta has floated plans to Australia – and create a higher value-add installed battery array in South Australia for sensible. build a modern electric ‘people’s car’ similar product for the Australian domestic market power storage was widely misunderstood. “If you can create a storage site like we’re to the VW Beetle, which would cost much less and export. “If you fully used those batteries they doing at Middleback, it absolutely fulfils than the Tesla S model. “We are trying very hard to debunk the would last for four minutes at 100MW,” he what the country, and particularly South Mr Hambro said the company “definitely culture of ‘dig and deliver’ by generating more said. Australia, needs.” has an interest in electric vehicles”, but value within Australia.” MARCH 2018 THE AUSTLIAN MINING REVIEW GFG ALLIANCE 25 Going the distance

NATIONAL

PERSONALISED Freight Solutions’ (PFS) job is to assist, educate and facilitate. Instead of simply expediting the transport of customer goods from A to B, the team at PFS takes this a few steps further by listening to importers and exporters needs to provide clients with guidance on the best solution for their individual shipping requirements. “An important service we provide is to assist clients in understanding the true value of their product when it lands at their door here in Australia,” PFS director Rebecca Young said. “Knowing the landed cost of the goods you are importing (the total price of a product including the original price, all transportation fees, customs, duties, taxes, insurance, currency conversion, crating, handling and payment) is vital to be able to gain an understanding on the viability of it in a retail market. “The cost of importing goods can equal if not exceed the actual purchase price of your goods, so we ensure all our clients are making viable Personalised Freight Solutions services a wide range of clients in the mining sector, including GFG Alliance. decisions on the products they are either selling or using.” trade, excise consultants and trucking The containers were shipped from Belfast separate projects in the energy sector. With extensive experience moving freight companies, to ensure all shipments are moved to Adelaide, and then trucked from the Shipping more than 200 containers over a into and out of Australia, PFS has developed a through borders and to site in the set time wharf to the global giant’s operations near three month period, Shanghai to Sydney and strong footing in the resources industry. frame. Whyalla. Melbourne, these moves see PFS servicing two In the last few years alone, the company One of its recent projects included “The key element to this project was of Australia’s leading infrastructure companies. has coordinated multiple shipping container coordinating 200 container shipments from the communication given to our customer More information on PFS and breakbulk shipments, bringing together Ireland to GFG Alliance’s Iron Knob and Iron throughout the project,” Ms Young said. services can be found at: shipping lines, customs brokers, international Barron mines in South Australia. PFS are currently completing two www.personalisedfreightsolutions.com. MARCH 2018 26 GFG ALLIANCE THE AUSTLIAN MINING REVIEW MARCH 2018 THE AUSTLIAN MINING REVIEW MINING NORTH WEST QUEENSLAND 27

Image: Lighthouse Minerals.

REJUVENATION Initiatives by the Queensland Government to boost exploration and support employment diversification aim to attract investment and protect employment in the region from the cyclical nature of the resources sector. However some feel that addressing high energy prices as a priority may do more to lift North West QLD’s economy.

mineral discoveries. CAMERON DRUMMOND The initiatives include $4.3m for mineral geophysics to pinpoint the locations of COVERING 10 local government areas, the potential new mineral prospects over wide 375,000sqkm North West Minerals Province areas; $1.45m for mineral geochemistry (NWMP) contains major copper, lead, zinc, programs; $5m for mineral synthesis; silver and phosphate deposits and well and nearly $1m for national research into defined rare earths potential. advanced discovery techniques. The NWMP is home to about 34,500 Professor Rick Valenta of UQ’s residents, mostly based in Mt Isa, with 60 per Sustainable Minerals Institute (SMI) cent of jobs that directly or indirectly support and the WH Bryan Mining and Geology the mining industry. Research Centre said this new compilation The significance of the mining industry and data collection collaboration would and the remoteness of the region has meant take a more holistic approach to the way the NWMP has traditionally been exposed to the industry tackles challenges. fluctuating commodity markets. “The North West Queensland region has The Province recently went through some one of the most highly endowed belts of tough economic challenges, as end-of-life or copper, zinc, lead and silver in the world, uneconomic operations closed their doors and and yet less than a third of the region investment into the resources sector dried up. has been effectively explored,” Professor Valenta said. These challenges prompted the QLD Government to establish the North West “The challenge of exploration under Minerals Province Taskforce in November sedimentary cover has meant that industry 2015 to identify issues affecting the mining has not been able to maintain the required rate of discovery, and mineral explorers industry and plan a way forward. Image: MMG. MMG’s Dugald River zinc mine near Cloncurry, QLD. need the best possible data and knowledge The taskforce identified the need for more to be able to improve success rates in that It facilitates continued resources sector efficient uses of existing infrastructure, Strategic Resources Exploration environment. improved exploration and mining approvals development, and the cutting of red tape to Program “There is an untapped resource of processes, greater exploration success, help get projects off the ground. geological information available from public and strategies to attract fresh investment QLD Natural Resources and Mines In support of the NWMP blueprint, QLD’s and industry sources, and our objective is capital. minister Dr Anthony Lynham said the Department of Natural Resources, Mines to put this information into a form which Those recommendations helped structure blueprint also had a second objective; a and Energy will spend $27m over four years maximises its usefulness for exploration, and the QLD Government’s Strategic Blueprint for stronger economy through diversification. to boost exploration and support new mine applies best practice analytical techniques to Queensland’s North West Minerals Province, The State Government would collaborate developments. extract full value from it. a $39m funding package released in mid-2017 with other levels of Government, business Led by the University of Queensland “We aim to carry out new studies which aimed at building on existing economic and and industry groups, and communities to (UQ), the Strategic Resources Exploration will help explorers to target and drill new community strengths in collaboration with support a more diversified and sustainable Program will focus on providing the tools, orebodies in the region.” industry, business, and community leaders in economy by leveraging existing economic and datasets and knowledge needed by explorers the Mt Isa and Cloncurry regions. community strengths. in North West QLD to drive a new wave of (CONTINUED OVER) MARCH 2018 28 MINING NORTH WEST QUEENSLAND THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 27) Other participants in the program include the Geological Survey of QLD, Geoscience EMPLOYMENT Australia, James Cook University, University of Tasmania, University of REVIVAL Western Australia, University of Adelaide, and the CSIRO. • MMG’s Dugald River Mount Isa Mayor Joyce McCulloch said Zinc Project her council was pleased with the early engagement with the program. Employment: 400 “We are very pleased to see the North Status: Operational West Minerals Province at the forefront of the excellent work of Geoscience Australia, • Capricorn Copper JV mapping mineral resources in our region and sharing the data with prospective investors,” Copper Project Mayor McCulloch said. Employment: 220 “There is no doubt over time this will pay Status: Operational dividends for the Mount Isa economy and generate jobs in our community.” • Glencore’s Lady Loretta $3.6m will fund the QLD Government’s Collaborative Exploration Initiative (CEI), Zinc Project designed to stimulate investment in Employment: 250 under-explored parts of North West QLD, Status: Restarting and test innovative exploration using a broad range of techniques. • CuDeco’s Rocklands The CEI encompasses drilling and non-drilling activities including seismic, Copper Project airborne and ground geophysics, and Employment: 200 geochemical surveys. Eligible activities added to drilling Status: Operational include mobilisation, pad preparation, and selected downhole analysis. • New Century Resources’ The first round of CEI grant funding Century Zinc Project ($1.13 million) was awarded in December Employment: 200-300 2017 to 9 companies, including Capricorn Copper and Minotaur Resources. Status: Restarting

Missing the Mark • Altona’s Cloncurry Copper Project While the funding is a welcome injection into Employment: 200 North West QLD – and buoyant commodity prices have spurred a rejuvenation of Status: Near Completion some projects – miners and community representatives in the region have cited energy prices as a major factor deterring investment. “The costs and handling of State member for Mt Isa Robbie Katter said the blueprint was a step in the right energy, transport and water direction, but $39m would not address the supply are the main issues immediate issues facing the economy in QLD’s North West. holding back investment.” “The costs and handling of energy, transport and water supply are the main issues holding back investment,” Mr Katter said. “If I had to choose one issue that causes the biggest problem its energy, both gas and electricity. “Since 2012 I’ve been speaking in parliament about the negative impacts the LNG industry could have on the domestic economy. “Unfortunately we have exceeded even the worst expert forecasts of how high local gas prices could get. Image: MMG. “It’s not uncommon to hear of companies who were paying $4-$6/GJ to be offered up to $20/GJ for new contracts.” Dugald River’s main decline. Glencore, which employs about 2000 and refinery and ship copper anodes direct Century Resources’ Century zinc mine near partners at Santos and look forward to a personnel at its mining and smelting to market and/or refine at one of our other Mt Isa. strong working relationship as we transition operations in Mt Isa, stated in mid-2017 that plants offshore. into full operations at Century,” New the high cost of energy could force it to shut “The gas sales agreement we’ve reached is down its operations. “While our business acknowledges the innovative in both its flexibility and pricing, Century utilities manager Michael Pitt said. efforts of the QLD Government to consider making it commercially attractive for both In a May 2017 letter to the Federal and Mayor McCulloch said Mount Isa was options for maintaining and extending parties,” Santos marketing and trading QLD governments, Glencore’s former copper also eager to become part of the solution our smelting and mining operations, the executive vice president Phil Byrne said. director Aristotelis Mistakidis warned that to shortfalls in gas supply and help attract investment environment in Australia has the miner couldn’t guarantee the long-term Securing gas in the currently tight industry back to the region. materially changed.” Australian east coast domestic market future of its copper plants if electricity prices “We believe there is a lot of upside to continued to rise. The price of copper has trended up was identified early by New Century the gas industry in our region,” Mayor quite substantially since that time, but management as a key risk to the successful “If electricity prices continue to rise, McCulloch said. Glencore will be forced to consider the the Federal and QLD governments have development of the project. future of our copper processing assets across begun implementing measures to increase The entry into this gas supply agreement “We’d like to see more thinking from north QLD, as well as future investment in domestic gas supply to lower prices; allows the company access to gas fired power Government and industry about how to energy-intensive operations,” Mr Mistakidis including domestic supply agreements with generation for the operations, as opposed to leverage these developments to help position said. major gas producers and construction of the more expensive on site diesel generation. Mount Isa as a substantial national gas “Given the current electricity prices add $800m Northern Gas Pipeline. “After a highly competitive tender process hub and attract new gas exploration and uncertainty around future supply, we need In February, Santos signed a $100m for the supply of gas, we are thrilled to have production companies to the North West to consider options for shutting our smelter agreement to supply natural gas to New entered into a long term contract with our QLD region.” MARCH 2018 THE AUSTLIAN MINING REVIEW MINING NORTH WEST QUEENSLAND 29 Jewel in the crown

QLD

THE world’s richest deposit of minerals including copper, silver, lead, zinc, gold, uranium and rare earths such as vanadium, cobalt and molybdenum lie below the ground in QLD’s North West around Mount Isa and Cloncurry. With more than a hundred years of mining activity and billions in production and export income for Australia, the region has considerable infrastructure to facilitate the next generation of mines. The MITEZ corridor has a thousand kilometres of rail line connecting the mining region to one of Australia’s major ports at Townsville with shipping connections to other countries.

Power is generated at two power MMG’s recently opened Dugald River mine in QLD. stations at Mount Isa and a number of transmission lines to provide energy to for mine and urban use. such as rail loading facilities to cater for with its excellent prospectivity, established mines and processing plants. Transport infrastructure such as road, future customers. infrastructure, community amenities and Water storages and pipelines are in rail and airports are well developed with North West QLD is considered the ‘jewel natural environment that offer a great place to provide new projects with water plans for new common-user infrastructure in the crown’ of Australia’s mining regions lifestyle for workers and families. MARCH 2018 30 RIO TINTO IRON ORE THE AUSTLIAN MINING REVIEW

It capped off a strong 2017 calendar year with $US8.8 billion in profit, but Rio Tinto is increasingly focussed on reputation and its social license to operate, both THE here and abroad. BOTTOM LINE

All images: Rio Tinto.

ELIZABETH FABRI

RIO Tinto is riding high on the back a 90 2017 HIGHLIGHTS per cent increase in net profit compared to 2016. It was a successful year on many fronts, • Pilbara production 329.8mt (Rio Tinto share 271.3mt) compared to with Rio Tinto’s flagship iron ore division 329.5mt in 2016. celebrating the opening of the $US338 million Silvergrass mine. Iron ore prices were also working in its • The Iron Ore group’s underlying EBITDA of $11.52 billion and favour, as China’s increased appetite for higher grade ore continues following the underlying earnings of $6.692 billion in 2017 were 35 per cent and nation’s winter steel curtailment policy. However, like many of its peers, the 45 per cent higher, respectively, than 2016. company’s global ‘social license to operate’ has been put under a microscope. • The Silvergrass mine and conveyor system was commissioned in August Last October, the US Securities and Exchange Commission (SEC) charged and processed about 2mt by the end of 2017. former Rio chief executive Tom Albanese and former chief financial officer Guy Elliott with covering up multi-billion dollar losses • More than 60 per cent of train kilometres have been completed in on Mozambique coal assets. And while Rio has vowed to defend the autonomous mode as part of AutoHaul. charges, this is just one of a few issues the company has not quite shaken off. • The Koodaideri project feasibility was approved in May 2017. Rio is also facing pressure in Mongolia over alleged lack of transparency at its Oyu Tolgoi project, recently receiving an additional $US155m bill from the international standards and voluntary proposal, but new Premier Mark McGowan contributor to society. Mongolian Government after an audit of commitments, but that the OT operation said the Nationals had tapped into rising is substantially contributing to Mongolia’s anti-mining sentiment. taxes paid between 2013 and 2015. Social License economy and long term development”. Weeks later, the Dutch Centre for “During the last election campaign there In WA, ahead of the 2017 State election, was a rich vein of hostility that was mined Research on Multinational Corporations In May 2017 Rio Tinto reduced payment the WA Nationals proposed a $5 per tonne by Brendan Grylls,” Mr McGowan said in (SOMO) and Oyu Tolgoi Watch published terms for its Australian suppliers to 30 iron ore royalty if they were elected, which April last year, via the ABC. a report claiming Rio Tinto and Turquoise days, after extensions to payment terms a would have stripped more than $1.5 billion Hill Resources’ Oyu Tolgoi mine led to “I think the mining industry needs to year prior from 45 days to 90 days caused a year from Rio Tinto’s pre-tax earnings. nearly $700m in tax losses for the Canadian be very aware of that and make sure they backlash. and Mongolian governments. At the time, WA’s iron ore miners stated avoid the problems occurring again.” Rio also pledged WA and Pilbara In a letter to SOMO, Turquoise Hill chief that the royalty increase would put jobs and Rio Tinto iron ore has since ramped local businesses in jeopardy. Aboriginal businesses would be given financial officer Luke Colton said Oyu Tolgoi up its emphasis on local procurement, greater opportunities to bid for contracts for and its investors were “committed to tax WA Nationals leader Brendon Grylls apprenticeships and fairer supplier its Pilbara iron ore mines. transparency” and that their tax practices may have lost his seat after the mining payment terms as part of a wider campaign were “not only compliant with local laws, lobby successfully campaigned against his to highlight and boost its reputation as a (CONTINUED ON PAGE 32) MARCH 2018 THE AUSTLIAN MINING REVIEW RIO TINTO IRON ORE 31 Ethical e-procurement systems

NATIONAL

IT’S difficult to imagine a modern competitive business thriving without robust e-procurement procedures, despite the technology being just over a decade old. Procurement of most products and services via the internet on a macro level is now customary. Face to face purchases consume time, money, labour and resources. Online procurement is an immutable element of successful industry and mining and will be into the future. The commercial challenge for 2020 and beyond is companies handpicking a strategic partner for e-procurement. Partnership choice based on expediency is fraught with risk and the industry is besieged with firms that over promise and under deliver. Online Procurement Services, a leading Australian-owned and operated e-procurement specialist, has amassed hours of supplier negotiation combined with leading edge systems development, Online Procurement Services’ clients range from SMEs to major blue chip companies. then distilled it into a user-friendly procurement and payment process with management team are all renowned is as endless as the range of service level systems supported by thorough onboarding inbuilt supplier onboarding, P2P and specialists who have forged revolutionary outcomes. standards. three-way invoice matching process. advances in e-procurement. The choice of firms with a personal For a client’s own peace of mind, they Throughout the bid, delivery and They share a combined passion to help interest in a client’s procurement needs can request a free demonstration by closeout stages, regardless of the range organisations such as Rio Tinto and others, aligned with ethical standards is far visiting Online Procurement Services’ of goods and services needed, Online and partner with local businesses for the scarcer. website www.onlineprocurement.com.au. Procurement Services procedures benefit of entire communities through Online Procurement Services has It costs nothing to ask, and the eliminate risk to the organisation. local procurement programs. simple but robust procedures, tailored company’s solutions can save clients more The Online Procurement Services The choice of e-procurement suppliers cloud based and mobility compatible than just money. MARCH 2018 32 RIO TINTO IRON ORE THE AUSTLIAN MINING REVIEW

“Rio Tinto’s Pilbara iron ore business has more than 1200 WA suppliers and (CONTINUED FROM PAGE 30) we make a large contribution to the State economy through local procurement, taxes and royalties,” Rio Tinto Iron Ore chief executive Chris Salisbury said at the time. “Providing more opportunities for WA businesses to secure contracts will further boost the Pilbara and state economy.” In July, the company took this a step further, introducing an online procurement portal to enable businesses to register their “Providing more interest and view job opportunities more easily. opportunities for WA It is also working with the WA businesses to secure Government and South Metropolitan TAFE contracts will further to pioneer a new curriculum that will prepare students for the mining industry boost the Pilbara and state jobs of the future, and has also teamed economy.” up with Murdoch University on a STEM roadshow for regional students. The biggest news was Rio Tinto’s plan to follow in the footsteps of rival miner BHP by launching a brand campaign to reshape its image. Rio Tinto chief executive Jean-Sebastien Jacques recently told The Australian Financial Review, it was planning a series of “local, smart and relevant” advertising campaigns this year in Australia, Canada and Mongolia that would “win hearts and minds”. “Rio and the whole mining industry needs to have a much more compelling narrative about its contribution to society,” Mr Jacques said. “We are seen as part of the problem and not part of the solution. “Our contribution to society is and always has been significant. We need to tell the story in a better way. “We are pretty often on the back foot. But we are doing so much good stuff.” Doing business differently

NATIONAL

AS one of the largest iron ore employers in WA, WorkPac Group has evolved its approach to be like a mining contractor. “Having more than 2000 employees in iron ore has required us to evolve into thinking and acting like a mining contractor,” WorkPac Group general manager Hamish Griffin said. WorkPac Group was founded in Perth more than 20 years ago as a specialist provider of workforces to the local mining industry. The company now employs more than 11,000 workers across a range of industry sectors throughout Australia. This year, the company will accelerate past the $1 billion turnover mark and remains privately owned. “Our private ownership structure provides the agility and responsiveness necessary to innovate and invest in becoming a great deal more than our traditional services provided,” Mr Griffin said. “With such a significant contribution More information can be found at: www.workpacgroup.com. to the sector’s productivity, safety and commercial outcomes we are increasing our a recognised mining contractor and the management. a great deal of evaluation, consideration and levels of involvement within the sector and WorkPac Group then?” Mr Griffin said. “On this, we now consider ourselves very resources on our clients’ behalf,” he said. our host clients.” “At its simplest level, it’s plant and much within the iron ore sector, as opposed “Our role is to be successful, capture the This includes more focus on areas such equipment. to an external supplier.” evidence and continue to understand and as collaborative planning, data efficiency, “Aside from this supply, our services Not all WorkPac Group’s clients share promote where the benefits realisations cost inputs and control, quality, reliability, are increasingly similar as long as we this approach however. exist. training and health and safety. are afforded greater accountability “We fully understand that this level of “At this point in time we remain extremely “So, what is the difference between towards human capital investments and acceptance and contribution takes time, and positive about this future direction.” MARCH 2018 THE AUSTLIAN MINING REVIEW RIO TINTO IRON ORE 33 MARCH 2018 34 RIO TINTO IRON ORE THE AUSTLIAN MINING REVIEW

“And today, as we are having this conversation, we are very comfortable with the 330mt to 340mt guidance for this year.”

Image: Rio TInto. Automation Drive project in August, along with its next big ELIZABETH FABRI development; the $2.2 billion Koodaideri iron mine. IN the fourth quarter of 2017 the Rio Tinto achieved an annualised production rate of In May last year, the miner approved 360 million tonnes of iron ore; a result of investment of $30.9 million to complete a new production from the Silvergrass mine feasibility study of the Koodaideri project, and its continued automation drive. which – all going well – could begin Rio’s current iron ore production guidance construction as early as 2019 with first ore for the year was between 330mt and 340mt. delivered in 2021. When asked in its annual results A final decision on the project will be conference call in February whether made following the completion of the study guidance could be upgraded to 360mtpa and board review. once Autohaul was completed, Mr Jacques said he was not going to “increase tonnage Outlook for the sake of it”. Mr Jacques said the company was “in good “We want to have significant capacity shape” as it navigated its way through the around the railway, so that gives us the 2018 year, particularly in regards to its flexibility to go up and down depending on world-class Pilbara iron ore blend. the market conditions; that is the value over volume,” Mr Jacques said. “We don’t control the market but we “We look at it saying, ‘well, if we increase are trying to position ourselves in the best volume what is going to be the impact on possible way and today the Pilbara brand is prices?’ a reference product in China,” he said. “And today as we are having this “It is a reference product and everybody conversation we are very comfortable with wants more of it.” the 330mt to 340mt guidance for this year.” And with growing speculation the Mr Jacques said Rio Tinto would produce changes to China’s emissions policies will 360mtpa eventually, but would focus on be structural, premiums for Rio Tinto’s high optimising iron ore production to make sure grade ore could continue. cash flow was maximised; acknowledging “All the indications are moving in the that when it adds tonnage, it can have an right direction; the environmental policies, impact on price. the fact that they [China] are making Further on the automation front, Rio money, they are trying to produce more with was expanding its autonomous fleet from a reduced capacity and therefore the need the current 86 trucks to 140 trucks by 2019 for higher quality product,” Mr Jacques said. after signing agreements to retrofit existing “Our sense is we are moving closer to a trucks with autonomous systems. structural change but we are always very It is anticipated the retrofit program will cautious. help the iron ore business deliver another “What it means for Rio Tinto is very $500 million of free cash flow annually from simple – as long as we have the right product 2021. in terms of cost, in terms of grade and the Rio was also focused on ramp up of the right relationship with our customer, then 10mtpa Silvergrass mine after opening the we are very well placed.” MARCH 2018 THE AUSTLIAN MINING REVIEW RIO TINTO IRON ORE 35 Quality conveyor solutions NATIONAL

CONVEYOR Products and Solutions (CPS) has a proven track record delivering sustainable value to customers for their existing operations, as well as greenfield and brownfield expansion projects. CPS recently delivered high accuracy, light weight, low noise, low rolling resistance idlers for overland conveyors to the Rio Tinto Silvergrass project and the BHP Jimblebar expansion project, exceeding both technical and commercial performance KPIs. CPS is also supplying high-quality Australian components internationally for the First Quantum Minerals Cobre Panama copper project and other mine expansions in Asia and Africa. The CPS team work with customers to optimise conveyor components for durability, quality, ease of installation and operational performance for both its construction and operations customers, thus ensuring the overall effectiveness of the conveyor systems. Construction of the Jimblebar overland conveyor manufactured by CPS. For the Silvergrass project, CPS worked with the construction contractor and their to maintain, and simple to install into the CPS product offerings, CPS is now able facilities are located in Perth with engineers, using FEA tools to design idlers conveyor modules. to offer a complete conveyor component additional branches and staff across that met the loading requirements while With the addition of pulleys, distributed supply solution to a project or operation. Australia, and supply hubs in the Eastern being high precision, cost effective, easy drive systems, and other technologies to CPS’s head office and manufacturing States. MARCH 2018 36 RIO TINTO IRON ORE THE AUSTLIAN MINING REVIEW

Roundel’s on-site manufactured steel pipes in the WA Pilbara. Leader in corrugated steel steel structures, Roundel Civil Products Roundel has also worked at Fortescue Weipa bauxite project in Northern QLD, NATIONAL has been supplying to mines in the Pilbara Metals Group’s Cloudbreak mine, which manufacturing more than 400 tonnes of steel required 150 tonnes of large-diameter THE WA Pilbara is going through a for more than 15 years, through its on-site culverts for the project. culverts delivered from Tom Price. renaissance since the recent mining manufacturing operations and its Tom Price The company has also supplied corrugated downturn, with iron ore, lithium, and now factory. The company has also been involved in the steel box culverts to local Shires in far-north a fledgling gold rush providing a plethora of Recent projects include Rio Tinto’s Yandi new lithium mines at Pilgangoora, supplying QLD; the Shires valuing the cost-effective project developments in the region. Oxbow and Yandi Pocket, where the team has both steel culverts and stockpile tunnels. designs, and the speed of installation, offered As Australia’s leading manufacturer of manufactured 1100 tonnes of steel culverts On the East Coast, Roundel’s on-site by steel structures, compared to traditional corrugated steel pipes and bolted, corrugated on-site for NRW. expertise was engaged at Rio Tinto’s concrete. MARCH 2018 THE AUSTLIAN MINING REVIEW RIO TINTO IRON ORE 37 Servicing brownfields projects

ASPEC provides specialist engineering for ports, mines and infrastructure.

ASPEC offers value and saves money for repairs, while also extending the life of existing dumpers, mobile conveyors and reclaimers, NATIONAL its clients by providing solutions to complex plant and machinery using an engineering and as well as designing lifting systems and equipment failures in the mining industry. evidence-based approach to their work. slew bearing jacking points for heavy ASPEC Engineering is a consultancy focused on maintenance and analysis of SCADA data It can also boost their productivity of The company recently conducted solving brownfield structural and mechanical for the causes of bucketwheel reclaimer engineering problems at mines and ports. machinery via control optimisation and refurbishment and replacement studies for overload stoppages. incremental upgrades; and improve safety by 40-plus year old stackers, and developed The company was established in 2003 ASPEC is a specialist firm with a national pragmatically upgrading older equipment to technical specifications for the owners of and has built a successful business offering footprint, with locations in Brisbane, meet modern safety standards. new machines. personalised service to site engineers, Newcastle, Perth and Wollongong, long superintendents and managers at mining ASPEC’s experienced engineers reduce Further work has included structural term experienced staff and a large database companies in Australia and internationally. operational risks with site inspections and fatigue studies and strain gauging of car of corporate knowledge. MARCH 2018 38 RIO TINTO IRON ORE THE AUSTLIAN MINING REVIEW MARCH 2018 THE AUSTLIAN MINING REVIEW DACIAN GOLD 39 FULL STEAM There’s a lot to like about the rapid development of Dacian Gold’s Mt Morgans gold project. The miner has set a vigorous pace on the road to production, already coming AHEAD in under its initial project cost by $23 million.

All image: Dacian Gold.

closer to production and cash-flow by the CAMERON DRUMMOND day. “It’s an exciting time for the company PRODUCTION from Dacian Gold’s as we continue our transformation from flagship $197 million Mt Morgans project developer to gold producer.” near Laverton, WA is expected to start this month, less than three years after the Dacian board approved its development. “This exciting discovery The fast-tracked gold project has been Dacian’s sole focus since its $20m initial comes on the eve of Dacian public offering (IPO) onto the ASX in Gold’s transformation into 2012. At that time, Mt Morgans had a Australia’s next significant resource base of 840,000 ounces (oz) of mid-tier gold producer.” gold. In the years that followed, exploration Exploration and Expansion work uncovered a further two, 1 million-plus ounce (moz) gold deposits at To help bring down the Mt Morgans Westralia and Jupiter. AISC, Dacian has been concentrating Mt Morgans now has a total mineral on proving up further resources at resource base of 3.3moz to produce Westralia, as Beresford and Allanson are 200,000oz a year across an initial expected to be two of Australia’s lowest eight-year mine life. cost-per-ounce deposits. The project’s estimated all-in Dacian said it would be prioritising sustaining costs (AISC) of $1039/oz the deposits as early production and includes two new underground mines expansion sources to maximise the (Beresford and Allanson) beneath the cash-margin from the early stage mining historically mined Westralia pit, which at Mt Morgans. are expected to deliver 492,000oz at a low “It remains a core focus for Dacian AISC of $837/oz over an initial four year Mt Morgans lies in the eastern edge of the Yilgarn Craton. mine life. to extend the Westralia mine area ore treatment plant and tailings storage proceeding exactly to plan. reserve life beyond 2021, and the 3.5mt The large open pit at Jupiter contains at 6.5 grams per tonne (g/t) for 715,000oz facility; 400 person accommodation “Thanks to the outstanding work by 643,000oz at an expected AISC average of inferred mineral resource that lies village, mine service facilities at our staff and contractors, Dacian has of $1193/oz over an eight year period. directly along strike and beneath Westralia and other related mine Dacian has enjoyed lower than achieved what we said we would do,” Mr provides the company with the potential infrastructure. expected infrastructure costs, reduced Williams said. to extend the mine life at both Beresford from $172m to $149m. Dacian executive chairman Rohan “We remain on time and on budget, and Allanson,” the company stated. That infrastructure includes a new Williams said the development and which means the project is being 2.5 million tonne per annum (mtpa) CIL construction of Mt Morgans was de-risked by the day and we are getting (CONTINUED OVER) MARCH 2018 40 DACIAN GOLD THE AUSTLIAN MINING REVIEW

(CONTINUED FROM PAGE 39) “We remain on time and on budget, which means the project is being de-risked and we are getting closer to production and cash-flow by the day.”

Dacian said that the first underground stope was fired in late January, and mine development was 873m ahead of its Project cost: $197m feasibility schedule. Also underneath Westralia’s previously mined underground mine lies the Transvaal Mineral Resources: 3.3moz deposit, which has an ore reserve of 0.5mt at 3.9g/t for a further 65,000oz and is Production: 200,000ozpa scheduled for mining in 2020. Mr Williams said the exploration front was also starting to bear fruit, with RC Initial 8-year mine life drilling results released in February confirming the Cameron Well prospect as First gold pour: March Cameron Well is emerging as Dacian’s third major discovery. the project’s third significant “RC drilling has now intersected discovery. good widths and grades of shallow oxide mineralisation over an area of 1.5km by up to 1km, confirming the mineralisation seen in our original aircore drilling programs laying the foundations for a maiden oxide Mineral Resource,” he said. “This is a very exciting development given the vast extent of anomalism and mineralisation seen in previous drilling over an area of 6km2. “We have commenced a 16,000m RC program targeting a maiden oxide Mineral Resource at Cameron Well. “In parallel, we have started collecting Feasibility Study data to be used in assessing the potential for oxide Ore Reserves at Cameron Well with the target of announcing a maiden ore reserve by the middle of the year. “With the additional discovery of at least four bedrock structures below the extensive oxide gold mineralisation, we are confident that Cameron Well has the potential to become the company’s third significant mining complex at Mt Morgans. “With our first gold pour now just seven weeks away, this exciting discovery comes on the eve of Dacian Gold’s transformation to become Australia’s next significant mid-tier gold producer.” Mt Morgans lies in the eastern edge of the Yilgarn Craton. MARCH 2018 THE AUSTLIAN MINING REVIEW DACIAN GOLD 41

GRES develops innovative engineering solutions to a range of major mining projects across Australia. Providing global mineral processing solutions the construction for the 2.5mtpa plant GRES has an established track record mineral sands, tin, tungsten and iron ore NATIONAL has commenced. in the provision of high quality technical projects for a range of clients in Australia and feasibility study work for a broad and internationally. GR Engineering Services (GRES) is a The Mt Morgans gold project is range of clients. GRES also has a presence in the market leading ASX-listed process design, scheduled for completion in Q1 of 2018 GRES has successfully completed the hydrocarbons industry via its wholly engineering and construction company and GRES is proud to have been selected process and engineering designs and owned subsidiary, Upstream Production providing safe, quality, cost competitive by Dacian to construct its flagship project. construction for projects of various scale Solutions, which is a leading provider and timely engineering solutions to the The innovative engineering solutions and covering a diverse range of mineral of operations, maintenance and well global mineral processing industry. developed by GRES enable its clients to commodities and geographic locations. management services to the oil and gas GRES is currently delivering the Mt achieve project success at the earliest It has delivered processing facilities industry in Australian and South East Morgans gold project for Dacian Gold and opportunity. and infrastructure for gold, base metals, Asia. MARCH 2018 42 DACIAN GOLD THE AUSTLIAN MINING REVIEW

RUC is proud to provide its services to Dacian Gold’s Mt Morgans project. Underground mining experts contractors, such as RUC Mining, who are that only a turnkey mining contractor with and full automation capability and recently INTERNATIONAL bringing certainty to underground mining. all the answers underground, can provide. undertook trials with electronic detonators for development blasting. OPERATORS face several challenges as they RUC Mining is an underground mining RUC Mining are currently the strive to exploit more complex orebodies. and construction expert with capabilities underground mining contractor for Dacian As the only manufacturer of raise drills Improved development and production rates across the full scope of underground mining Gold, at its Mt Morgans project – which is on in Australia, RUC Mining has designed and must be achieved, while ensuring that the services, all under one roof. budget, and on time. manufactured a custom Strata 80 Boxhole rig quest for an incident–free safety record is not This means that owners can benefit RUC Mining has introduced the Epiroc specifically for its Mount Morgans contract. compromised. from improved productivity, cost, safety S2 Jumbo into the Australian market and RUC Mining was also the first to fund and For this reason, mine owners are enhancements and increased efficiency of southern hemisphere, which comes with implement full fleet real time tracking in 3D increasingly turning to reputable mining modern technologically advanced equipment Measure While Drilling (MWD) technology in an underground mine. MARCH 2018 THE AUSTLIAN MINING REVIEW DACIAN GOLD 43 MARCH 2018 44 NORTHERN MINERALS THE AUSTLIAN MINING REVIEW

HEAVY EXPECTATIONS Northern Minerals’ Browns Range heavy rare earth (HRE) project is underway, with a Stage 1 pilot plant near completion amidst big plans to meet the growing demand for dysprosium. All images: Northern Minerals.

“The UK and Europe have both signalled CAMERON DRUMMOND there will only be new electric vehicles sold in those markets post 2040. 160KM south east of Halls Creek in BROWNS RANGE: 4 STAGE APPROACH “China has also signalled that it will northern WA, Browns Range represents be moving towards 100 per cent electric an opportunity for Australia to become a vehicles and we believe that this move, leading producer of dysprosium outside from a volume perspective, will become the China. STAGE 1 – STAGE 2 – dominant theme.” The little-read-about element is crucial to Test Pilot Plant Refine Project the manufacture of permanent magnets and Development a fundamental ingredient in high-torque • 10% of full capacity • Reduce mining cost motors used in wind turbines as well as electric vehicles, which use about 100 grams • Production Start: • Boost production Following a review in February 2016, of the HRE. July 2018 • Funding plan to Northern Minerals developed a new business Dysprosium makes magnets last longer plan to support Browns Range’s pathway to and retain efficiency at extremely high • 72ktpa capacity plant progress initiatives production. temperatures. The project will be split into four It also makes up part of the control rods development stages, allowing Northern used in nuclear power generation and has a Minerals to test the process and market range of military technology applications. STAGE 3 – STAGE 4 – Downstream the mixed RE carbonate product with a pilot plant, then develop Browns Range to Since Molycorp – a large producer of rare Build Full Scale • Separation of heavy rare a bankable feasibility study (BFS) level, earths (RE) and HRE, including dysprosium build the full-scale operation, and ultimately – filed for bankruptcy in 2015, China lifted • 585,000tpa operation earth elements develop heavy rare earths separation its production to meet global supply. • 1,500,000kg premium • Production of dysprosium capacity. However, with degradation of its In 2017, the Northern Minerals board rare-earth containing clays due to years of TREO product oxide and terbium oxide approved the construction of the $56m first over mining beginning to show, a significant • Initial 11-year mine life • Wider potential customer stage, three-year research and development portion of Chinese mining is thought to be pilot plant at Browns Range that will run at occurring illegally. base 10 per cent of the overall project output. Now, increased regulation on mining The company said the plant would provide and manufacturing to stem volatility has an opportunity to gain production experience, triggered the search for overseas suppliers. surety of supply for its offtake partners, and “Supplies of HREs from China are likely to continues to consolidate the industry into six in the box seat to meet the expected growth in assess the economic and technical feasibility become scarcer, with market commentators rare earth producers to promote domestic dysprosium demand. of the larger full-scale development. downstream value added production forecasting China’s HRE resources will be “The development of the Browns Range Northern Minerals managing director exhausted in 10-20 years at current rates of and assist in curbing illegal mining and project sets Northern Minerals up as the only George Bauk said mining for the pilot plant exploitation,” Northern Minerals said in a processing.” producer of dysprosium outside of China, during 2017 stockpiled 180,000t of ore to statement. This, says Northern Minerals’ executive positioning us as strategic from a global be drawn down over the first stage of the “Furthermore, the Chinese Government chairman Colin McCavana, puts the company supply perspective,” Mr McCavana said. project. MARCH 2018 THE AUSTLIAN MINING REVIEW NORTHERN MINERALS 45

“The development of the Browns Range project sets Northern Minerals up as the only producer of dysprosium outside of China, positioning us as strategic from a global supply perspective.”

The mineralisation at Browns Range has high percentages of the much sought after HRE dysprosium.

“[Annually] we will produce 573,000kg of The pilot plant is expected to be completed its own separation capacity, a move which average Brown Range deposits, these mixed RE carbonate, containing 49,400kg by June 30 this year. would allow downstream processing of grades are similar to what was found at our of dysprosium as well as terbium, lutetium, Browns Range reserves have a rare earth HRE’s into a higher value product. Wolverine site, which is one of the largest neodymium and praseodymium,” Mr Bauk oxide content of about 6600 parts per million, Dysprosium oxide and terbium oxide heavy rare earth deposits in the world,” Mr said. of which 8.9 per cent is dysprosium. would be produced, exposing the company to Bauk said. “All of the mixed rare earth carbonate At full scale operation, Browns Range a wide customer base. “The additional funds raised will allow will be purchased by Lianyugang Zeyu New would produce about 585,000 tonnes per In tandem with Stage 1 development, the Materials Sales Co. annum for 1,500,000kg of total RE oxide, company recently raised $15m in a share Northern Minerals to accelerate our “The mixed RE carbonate will be making it a globally significant dysprosium purchase plan for exploration work to expand exploration, get drilling rigs back on the processed in Lianyugang, China, into its producer. on Browns Range’s mineral resource. ground in the June quarter, and implement various components for use in the energy As well as expanding to a full-sized plant, “Recent regional sampling has returned ore processing to help us become the first metals sector.” Northern Minerals also has plans to develop grades up to 10 times higher than the significant supplier outside of China.” MARCH 2018 46 RAMELIUS RESOURCES THE AUSTLIAN MINING REVIEW OPPORTUNITY The acquisition of Edna May in late 2017 represents a step change for Ramelius Resources. The estimated 54 per cent uplift in annual gold production pushes the gold KNOCKS miner through the 200,000ozpa ceiling, while a rock-solid balance sheet paves the way for further growth.

All images: Ramelius Resources.

Aerial view of Edna May. productivities and reduce costs. REUBEN ADAMS Hit the Ground Running RAMELIUS Resources chief executive Mark Zeptner presented at the Denver Ramelius boosted its December half Gold Forum in September last year, just revenue 36 per cent on the back of record after a complex $90 million agreement production, the result of the Edna May to acquire Evolution Mining’s Edna May acquisition and improved production from gold mine in WA was locked in. Mt Magnet and Vivien. The deal represented the next step in Production of 91,162oz was up 35 per the company’s strategy to build on the cent on the 67,546oz in H1 FY17. strength of its existing WA operations at Mt Magnet and Vivien and establish itself Profit after tax was a solid $13.6m, 5 as a profitable and sustainable mid-tier. per cent increase on the $12.9m in H1 FY17. “Over the last six years at Mt Magnet we proved that we can run that operation Importantly, Ramelius remains debt profitably,” he told delegates. free, with net cash and bullion of $61.8m. “Now we are in the acquisition phase, FY18 production is expected to be putting the $90m and no debt – essentially between 200,000ozpa to 210,000ozpa at a a very solid balance sheet – to work.” comfortable AISC of between $1100 and $1200/oz. The Edna May open pit gold operation Aided by a formal three month near Westonia in WA has produced more transition process, Mr Zeptner said than 1 million ounces over its life, with the incorporation of Edna May into the more than 500,000oz produced since 2011 Ramelius business had gone as smoothly under Evolution ownership. as could be expected. One of Ramelius’ challenges has been “We signed the Sale Purchase reducing expenditures at the traditionally Agreement on the 18th September and high cost operation. settlement occurred on the 3rd October so Prior to the sale, Edna May had there was very little time for preparation produced 70,188oz at an average cash before the ‘real thing’,” he said. cost of $1309/oz and AISC of $1440/oz for “Given production achieved in the FY17. December 2017 Quarter was very similar Evolution stated that low material to Evolution Mining’s previous quarter, movement and a lack of available ore at but at lower costs, is a testament to how periods during the year resulted in full quickly we have transitioned the asset.” year production lower than guidance of Since completion of the acquisition, 80,000oz – 85,000oz. Ramelius has moved quickly to put in This had resulted in higher costs place an improvement program for the relative to guidance of $1020 – $1100/oz operation. and AISC of $1140 – $1220/oz. Initiatives include streamlining the Since acquisition, Ramelius has organisational structure and changing moved quickly to put in place an employment policies; review of truck haul effective improvement program for the distances and tailings dam earthworks; Ramelius Resources chief executive Mark Zeptner. operation which is aimed to both increase and assessment of blasting practices. MARCH 2018 THE AUSTLIAN MINING REVIEW RAMELIUS RESOURCES 47 OPPORTUNITY KNOCKS

The bottom of Percy Pit at Mt Magnet. “All of the initiatives have reduced costs the June 2018 quarter, with the aim to be by varying amounts – some immediately at a decision point by mid-2018.” by reducing the number of direct reports to the General Manager, and some will Outlook take more time, like improving blasting practices and reducing haul distances Ramelius’ target for FY18 is building where possible,” Mr Zeptner said. cash towards $100m and maintaining nil Further improvement initiatives are corporate debt. currently being considered and will be This strong balance sheet enables designed to secure a lower cost operation Ramelius to take advantage of any leading into the decision on Stage 3 open potential acquisitions as them become pit versus Stage 2 underground, expected available. by mid-2018. “We are constantly assessing potential opportunities – this is what you have to Open Pit v Underground do in a space that is highly competitive – but there are a lot of projects that don’t A decision by Ramelius to develop either make the grade,” he said. of the project’s two main growth options “Not surprisingly, we like Australia, – a major pit cut back and/or continued NZ, and Nevada in the US but also would underground development – will trigger consider certain parts of the Asia for the up to $50m in additional, production right project as it ticks travel and time based payments to Evolution on top of zone challenges when based in Perth.” the initial $40m payment. Mr Zeptner said that FY18 group According to a September research note AISC of between $1100/oz to $1200/oz from Hartley, a large scale cutback is was achievable as costs at Edna May fell. most likely, potentially adding about “We have actually averaged between 500,000oz to the open pit mine plan. $1150/oz and $1200/oz for the last Ramelius plans to spend up to $3m two financial years which has been drilling the extensions from surface and surprisingly consistent, and whilst from a newly established underground everyone would like lower costs it is not access point in the December 2017 and always realistic,” Mr Zeptner said. March 2018 quarters, prior to making a “This range is very competitive decision on the cut back by June 2018. compared to our peer group producers “I have stated that my opinion is and provides a healthy operating margin that a large Stage 3 cut-back is the best at current gold prices. future option, but we will be guided by “We are looking forward to a very strong the both the geology, post-drilling of second half of FY2018 with increased approximately 13,000 metres from both production and lower costs, combined surface and underground, and the project with reduced capital expenditure when economics,” Mr Zeptner said. compared to the first half. “The drilling program will be finished “Ramelius is very well positioned heading by the end of the current March 2018 into some key decision points in the middle quarter, with an updated resource model of the year that will hopefully provide a and mining studies to be carried out in longer life profile for the company.” THE AUSTLIAN MINING REVIEW MARCH 2018 48 INDUSTRY SPOTLIGHT COMPANIES GEARING UP Family values, global reach

NATIONAL

TRU-FLO Pumping Systems is one of the world leaders in supplying dewatering pump and pontoon package solutions. The family-owned and operated business entered the pumping industry as Bathurst Irrigation during the winery boom of the 1990s. Originally focused in agriculture, the company has grown to service global mining, oil and gas, civil and food markets. Tru-Flo shows particular leadership in underground and open-cut mining as its equipment is manufactured to withstand harsh Australian and international environments. The company’s unique Run-Dry pump delivers one of the fastest priming capabilities on the market with industry-leading efficiencies. Tru-Flo’s pump range is fully customisable, built to the highest quality and performance standards and can be configured to suit a range of applications, Tru-Flo water pumps can meet any industry challenge. including tailings return, dewatering, leachate and CHPP supply water pumps; as solids, and slurries; often encountered in Now with more than 70 personnel, give something different. well as to underground or fire water supply mine dewatering. Tru-Flo has become a dominating force in With offices strategically placed around and water evaporation projects. During Tru-Flo’s manufacturing process, the industry. the world, Tru-Flo will continue to be one The range is capable of pumping against safety and quality assurance are always top However, the same family owned of the market leaders in dewatering pumps high head situations, large quantities of of mind. business qualities exist, with the desire to and equipment for the mining industry.

As a tradesman, it has become apparent that there Giving you fast external access & TUFF TOOL BAGS has been a lack of choice in the current market for visibility: industrial, reliable heavy duty electricians’ tool bags. When Tuff Tool Bags inventor Tony Velcro lids on all pockets Nankervis started traveling interstate to and from Straps & plastic clip buckles on lid GIVE AWAY various mining sites and other project sites, he Reflective lid strip found that a ‘good old’ canvas tool bag or Blue & silver highlights for high visibility expensive electrician bags just wouldn't do. Giving you easy internal access: Internal pockets (1) Tuff Tool Bags has developed an easier way than Document pocket (1) lugging around a heavy toolbox or doubling back External pockets (4) and forward to the truck for tools needed for a Internal tool loops (28) job. Some people think that to get the best of With an extraordinary load capacity of 60kg. anything, you have to pay a lot – but Tuff Tool Bags has designed its Shoulder Bag to be as functional, Dimensions: Size is important, but heavy duty, affordable and safe to use as could we’ve kept it realistic! possibly be. Its easy access compartments help tradesmen become more organised, and thus Internal storage area (mm): 500W x 140D x 260H more productive on the tools. Total external size incl. pockets (mm): 650W x 250D x 260H It’s a fact: Mine workers need a serious tool bag. Inside plan sleeve (mm): 460W x 240H Your chance to WIN 1 of 3 The Shoulder Bag is it. Take it to jobs large or small – it is safe and reliable, with the durability to Shoulder Bags with the handle any weather conditions.

purchase of a 12 month Made with the best: hardcopy subscription to the Fire-retardant materials Australian Mining Review. Rip/tear-resistant UV protection incl. double-reinforced base and ends TO ENTER, HEAD TO Heavy-duty shoulder strap australianminingreview.com.au/giveaway/ For more information on the Shoulder Bag and  www.tufftoolbags.com Terms & Conditions apply. Please visit page for more info. other Tuff Tool Bags products, visit our website  [email protected] MARCH 2018 THE AUSTLIAN MINING REVIEW COMPANIES GEARING UP 49 Safety: from marathon to easy win

Self-serve automation strengthens adherence to mine safety regulation and increases productivity.

NATIONAL outs while automatically creating a digital With 24/7 time-stamped documentation, up quickly. audit trail to ensure 100 per cent compliance this is an accurate record of PPE availability, Now safety managers can focus on more and increase productivity. including who used what, when, and where. PPE compliance – a safety manager’s constant valuable tasks and mine workers get shifts Now mine safety managers can easily prove started faster, confident they have the right concern – can feel like a never-ending race. Automating PPE Management Processes every employee takes the correct type and equipment needed to do their job. Ensuring the right materials are available size of PPE across every shift, and this data is The end result makes it easy for a mine at all times, and recording this activity Apex industrial vending devices rely on the available across the company through a web for regulatory requirements, is of critical Apex Trajectory Cloud® to help automate PPE browser or mobile device. safety manager to win the race they face each importance. supply management. day. A single misstep managing and distributing When supplies reach a predetermined level, Increasing Employee Productivity To learn how Apex Supply Chain these supplies can impact employee well-being a distributor is automatically notified to ensure Technologies improves PPE distribution and business performance. replenishment. Management may be initially surprised at the for mining companies, including Self-serve, automated vending devices from Trajectory handles all automation rules significant impact self-serve automation has on Yancoal, Barminco and BHP, more Apex Supply Chain Technologies® transform which can be customised to grant access to this process. information can be found online at this process to make a safety manager’s ongoing PPE based on employee or job function, and by But consider the time it frees up for each www.apexsupplychain.com/au/mining, race an easy one to win. tracking each device transaction in real-time, employee and by applying this to every emailing [email protected], or The technology virtually eliminates stock trajectory creates a digital audit trail. employee across every shift, these minutes add calling +61 (02) 9450 0866. Heavy hitting haul road solution NATIONAL

WITHOUT a doubt, poorly maintained haul roads are a primary cause of damage to truck suspension, reduced tyre life and low productivity in a company’s fleet. Often passed off as simply a cost to operations, in many cases these “hidden costs” can be reduced or even eliminated entirely with some simple haul road house-keeping. Adelaide-based compaction specialist Broons has the answer to haul road failures with its massive Square Impact Roller. Although visible at the surface, subgrade problems often occur as a result of poorly compacted materials buried deep down – this is where the Square Impact Roller far surpasses alternatives. Often, time is spent re-sheeting or constantly grading haul roads when in fact the problem is deeper and requires a specialist compactor to fix the issue. Broons’ Impact Roller reduces the wear and tear on a company’s fleet. Vibrating rollers run out of efficiency at insitu density of most materials with 20-30 Impact Roller works comfortably with on mine sites. around 300mm below the surface. passes capable of treating 600-900sqm per operating truck fleets, so there is no need to For quantifiable savings, businesses A Broons Square Impact Roller achieves hour. close the road for maintenance. need to look a little deeper and be sure the results beyond one metre to build a strong Nothing on the market comes even close Forget capex approval, Broons operates density of their infrastructure can support dense layer that supports the weight of to that output and the improvement is an Australia-wide fleet of its proven Square the load the fleet is transporting. those huge trucks. happening deep down where it counts, not Impact Rollers with machines available in Broons’ in-field team of compaction Towed at around 10km per hour , Broons’ just at the surface. almost every region. specialists can be contacted on big hitting Impact Roller can improve the There are minimal delays as Broons’ All units are MDG15 compliant for use (08) 8268 1988 or [email protected]. MARCH 2018 50 COMPANIES GEARING UP THE AUSTLIAN MINING REVIEW Mine-spec winch hire makes impact

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WINCH Hire Australia provides lift and shift gear and the largest range of cable hauling equipment available for hire in Australia. The company’s winches range from 200kg to 60 tonne capacity with lengths of wire rope fitted from 50m to 6000m, and its chain hoists range from 200kg to 30 tonne capacity. Brett Williamson started the company in 1996 when he recognised industry demand for the hire of highly specialised, up-to-the-minute equipment on a project-by-project basis. “Today, 22 years later, Winch Hire Australia remains the market leader because we have the big jobs covered with machines that can lift and pull from 200kg to 60 tonnes, as well as the experience, servicing skills, and commitment to safety,” Mr Williamson said. Winch Hire has a highly experienced team of qualified tradesmen deliver reliable mine-spec equipment with efficiency, and hire controllers who are adept at problem solving solutions which save time and money onsite. The company regularly hires out fully mine site compliant winches for maintenance in existing mines and cable handling equipment for installation of power and data cables in new mines. Its vast equipment range is adaptable to Winch Hire Australia is a leading supplier of winches and associated products to the resources sector. a variety of mining applications – no job is too big or too small. pulverisers, conveyor belt replacement and Winch Hire’s scheduled maintenance trailers and associated equipment are ‘ready This includes maintenance of mine mine machinery repairs on drag lines at open program ensures winches, hoists, cable to rent’ at all times in preparation to meet the machinery including drag chain feeders and cut mines. hauling winches, cable stands, cable drum demand of a resurgent mining industry. MARCH 2018 THE AUSTLIAN MINING REVIEW COMPANIES GEARING UP 51 Driving productivity

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AUSTIN Engineering is the world’s leading truck body designer and manufacturer that continues to deliver customised solutions that result in higher profitability for mining operations around the world. Austin’s JEC-LD truck body is a proven engineering success delivering substantial payload increases on mine sites in South America and Australasia, with some reported productivity gains of up to 20 per cent. The JEC-LD truck body evolved from merging the design characteristics of the highly successful JEC and Westech models, which together, have accumulated years of operational experience. Benefits of the JEC-LD include low body weight, high payload ratio design, and full support structure interface to the truck chassis (as per OEM requirements), anti-carryback with large rolled transitions, low rear profile to prevent berm drag damage and sidewall protection. Also a bespoke body, the JEC-LD is designed to suit the individual Austin Engineering’s JEC-LD truck body. characteristics and requirements of each site adopting advanced Discrete Element Additional benefits include ease of improvement with considerable investment high-strength, and superior fatigue and Modelling and Finite Element Analysis maintenance and required life span, which in R&D and quality testing of premium steels abrasion resistance when operating in harsh engineering software designed to optimise are taken into consideration during the and weld consumables to ensure its bodies unforgiving environments. payload, reduce body weight, improve design phase to ensure greater profitability are built using the highest quality materials. More information on Austin, its solutions structural integrity and limit fatigue over the life of the tray. The result is specific ‘Austin’ steel and global locations can be found at: resistance. Austin has a program of continual grades that are purpose designed to deliver www.austineng.com.au or (07) 3723 8600. Extreme cleaning pays off

integrated control panel. NATIONAL The compact, water cooled engine delivers cleaner and lower exhaust IN a major breakthrough in mine site cleaning, Australian Pump (Aussie emissions thanks to improved flow-mixing Pumps) has announced an expansion of and injector nozzle design, and is governed its Aussie Mine Spec Extreme series. to a maximum speed of 2400 rpm for long life. The range of continuous duty hydro-blasters now includes the big A PE Manual engine protection kit Aussie 4300 psi Python with a huge 31 is fitted, featuring a tachometer, hour lpm that delivers a real cleaning whack. meter, battery monitoring, timer and low oil pressure protection. The combination of high flow at high pressure ensures that mine plant or A 50 litre stainless steel fuel tank equipment caked in mud can be cleaned enables the engine to run continuously for significantly faster. up to 10 hours. This delivers major savings in The Python Extreme is mounted in a downtime and maintenance costs. heavy duty hot dip galvanised steel frame with skid base that incorporates large “It’s really tough to shift dried mud forklift tyne slots accessible from all sides. from a crawler dozer or dump truck fast,” Aussie Pumps operations manager A weather-proof cover protects the Hamish Lorenz said. engine and pump without inhibiting air flow around the radiator. “You can’t fix it until you clean it, Aussie’s Hamish Lorenz checks out the engine protection kit supplied on the new Aussie Python Extreme so that’s where machines with a great The mine spec frame includes reflective Yanmar powered hydro-blaster. pressure/flow combination really deliver. markers and flashing operating light for The unit features a 60 litre stainless 30m of 5800 psi rated hose. “We’ve designed this kit to not only safety and a fire extinguisher and bunded steel “break tank” with float valve and low handle the rigours of mine life, but to run tray are fitted as standard. This facilitates cleaning large plant, water cut out for pump protection. all day every day in the busiest of wash “This first unit is heading for an open making it safer and is more convenient for cut coal mine, so it had to be both robust An emergency stop and battery isolator bays.” the operator. The heart of the new machine is a and mobile,” Mr Lorenz said. are fitted as standard on Aussie Mine Spec ‘Big Berty’ RAS series heavy duty triplex “The Python weighs up to 565kg so we equipment. More information on the Python Extreme piston pump, powered by a reliable integrated multiple forklift points into the The industrial 5000 psi stainless steel hydro-blaster can be found by calling Yanmar 3TV88 20kW diesel engine with skid base for ease of lifting.” hose reel with friction brake is loaded with 02 8865 3500 or via www.aussiepumps.com.au. MARCH 2018 52 COMPANIES GEARING UP THE AUSTLIAN MINING REVIEW

A pipeline inspection from the Boreal UAV Laser Analyser. Advanced detection capabilities Pipeline gas detection involves getting fence line monitoring, where large areas potential problems before they occur. NATIONAL close to the potential leakage sources while need to be monitored with full wireless In another application, bund pond liquid covering vast lengths of gas pipeline and communications. THE effects of processed gas emissions collections are a valuable addition to the reporting gas liberations. On the other hand, stack emissions is wide and varied, and can present ability of the Scentroid DR1000. In this instance, the Boreal UAV Laser are met with another drone equipped gas unforeseen challenges in today’s high Operators would know how difficult this Analyser is the ultimate answer, with parts analyser with a Scentroid DR1000 carrying standard resources sector. per million detection, no cross sensitivities, up to six sensors – part of a list of 22 different procedure is. Australian Dynamic Technologies (ADT) high speed and integral automatic sensors – to feed back concentrations of ADT offers specialist focus upon the has taken on some of these difficulties by calibration – surely the engineers’ best stack plumes with full drone control. design and production of gas analysis offering different methods of procuring real friend. The system can also carry a camera to systems with follow up contract servicing time data in two areas. The same technique can be used for inspect remote locations and report back and maintenance. MARCH 2018 THE AUSTLIAN MINING REVIEW CABLES & CABLING 53 Dekoron Cable. A brand, not a type

More information can be found at www.maser.com.au.

refining and petrochemical industries. engineering personnel. Celebrating its 10th year as the NATIONAL Specialty products including Fieldbus, To ensure unmatched quality, all exclusive Dekoron® distributor (AU/NZ), Maser Communications is committed to FOR more than 50 years, Dekoron® Wire & Circuit Integrity, Dekabon® (lead free) Dekoron® products are subject to electrical armoured and thermocouple cables have inspection by trained QA technicians after offering products of the highest quality to its Cable has led the way in industrial signal been added to the range to provide a twist, cabling, jacketing and armouring. customers. transmission. complete solution for any application. Additional in-process testing is built into The company strives to partner with Manufactured in the US, Dekoron’s range Dekoron’s state-of-the-art facility in Mt the manufacturing line with extensive use leading manufacturers, not generic brands. of instrumentation cables were developed Pleasant, Texas, is home to manufacturing, of spark testers and real-time dimensional This is why Maser chooses Dekoron®: the specifically to meet the needs of the mining, customer service, quality assurance and monitoring. manufacturer, the product, the quality. MARCH 2018 54 CABLES & CABLING THE AUSTLIAN MINING REVIEW Commitment to excellence

NATIONAL

WARD Operations is a specialist high voltage cable jointing company that has serviced Central Queensland mining and heavy industry for more than 29 years. With extensive experience under its belt, Ward Operations has earned a reputation for delivering outstanding results across a range of projects spanning the mining, industrial, commercial, military, liquefied natural gas (LNG) and Government sectors in Australia and overseas. Its primary area of expertise is high voltage cable jointing with both paper insulated and cross linked polyethylene (XPLE) up to 132KV. The company’s latest venture has seen it acquire a new Cable Nitrogen Purging machine, which can be applied to cables that have been effected by water and have an ingress of moisture or water into the conductors/screens, leaving them free from moisture prolonging the high voltage cable life. It’s high voltage cable jointing services also includes mining cable terminations (ethylene propylene rubber)solar farms, More information can be found at: www.wardoperations.com.au draglines, ship loaders, shovels and stackers, and reclaimer reeling cables “All our work is completed by fully as being a certified TE Jointing company,all cable socks, hydraulic capstan winch, cable with fibre optics component into slip rings trained and competent workforces who are our services include scoping, planning, hauling equipment, and more. compartments, along with many other committed to quality workmanship,” Ward procurement, progress reports and quality “Some of our long term major clients capabilities. Operations owner Jeff Ward said. assurance.” include the likes of Rio Tinto, BHP, Anglo A further additional unique service “We use reliable and proven brands Ward Operations also has a fleet of American, Glencore, Downer EDI, UGL, offered by Ward Operations is submarine and components in accordance with best equipment available for hire including VLF Thiess, Decmil Group, Stanwell Corporation cable repairs and VLF Testing. practice and Australian standards as well Tester, shipping/site containers, jack stands, and more,” Mr Ward said. MARCH 2018 THE AUSTLIAN MINING REVIEW CABLES & CABLING 55 One stop shop for cable needs NATIONAL

CABLE Connect at Auslec has on-hand cable inventory to support the vast majority of its customers’ application requirements. Its Welshpool location has cables and wires for site distribution services, switchboard construction, conveyors, pumps, control and instrumentation, as well as general light and power. Also included are screened cables for EMC applications, orange circulars and SWA in both power and control construction. The numbered core stockholding ranges from 2-core to 30-core covering the majority of industrial needs.

The new range of ex-stock cables Cable Connect at Auslec has a large range of cables and wires suited for mining. include flexibles in high temperature single cores, multi-core control and super Together, Auslec and Cable Connect’s The team is also able to help customers Most of its employees are long-term, flexible for switchboard construction and flexibility to offer the right products and keep their projects on time and on budget. offering reliable support to thousands of mobile plant battery systems. custom processes ensure customers can The knowledgeable management and customers each day. With the ability to custom-cut up to rely on them for the total package. staff have extensive experience in the Auslec, with it’s associate company 400mm XLPE single core, Cable Connect With its own 6-tonne forklift and mining, oil and gas, and infrastructure L&H, has a national reach which brings has what customers need, when they need long-bed delivery truck, Auslec is able project sectors. customer advantages as it leverages not it. to capably manage the most exacting Auslec’s centralised mining and just manufacturer but also an extensive For other products, including customer requirements for cable solutions. projects support group leverages branch network. highly flexible, water resistant or high Its warehouse regularly ships to all experience, ingenuity and connections to More information can be found by temperature building wire, Auslec parts of WA, dealing with major logistics give client’s the solutions they need, when emailing [email protected] or Welshpool is well equipped. providers as well as direct-to-site. they need them. calling 1300AUSLEC. MARCH 2018 56 CABLES & CABLING THE AUSTLIAN MINING REVIEW FEBRUARY 2018 THE AUSTLIAN MINING REVIEW CORPORATE TEAM BUILDING 57 MARCH 2018 58 DIESEL EMISSIONS THE AUSTLIAN MINING REVIEW

Particles emitted from diesel engines contain harmful carcinogens. Real-time diesel particulate analyser could run into weeks.” NATIONAL But a new genre of real-time THE latest locally designed and measurement instrumentation, born manufactured diesel particulate analyser around 12 years ago, established a technology on the market alleviates capability for the monitoring to be done potential health concerns amongst vehicle quickly, in-house. maintenance workers. Over the years, developments led Alerts from the World Health to simpler operation and improved Organisation (WHO) have focused on the sensitivity/accuracy. public awareness of dangers to human This progressive chain of instruments health from the microscopic carbon-based was all designed, developed and particles emitted in the exhaust of diesel manufactured right here in Australia engines. (though some overseas licensed As a Class 1 carcinogen (the most manufacturing did occur). dangerous category) the WHO estimates Continuing this trend, the dPM-RT that these particles are responsible for now enters the market; representing the hundreds of thousands of deaths around 4th generation of these highly respected the world each year. and widely used instruments. Given the dominance of diesel power At a glance the new instrument projects sources in underground mining, the strong visual echoes to its immediate industry has clear responsibilities to predecessor, though dimensions and minimise worker exposure to this most weight have been significantly reduced. dangerous pollutant. “The dPM-RT’s performance has been A capability to effectively monitor and independently validated through extensive control tailpipe particle emissions is a key back-to-back testing and correlation component of these responsibilities. against a NIOSH 5040-certified and To enhance this capability, Pacific Data calibrated reference test rig,” Mr Gapes Systems Australia (PDSA) has recently said. launched the latest, and possibly most “With one-button operation and a fully advanced, tool for this task – the dPM-RT processed result delivered on completion Real-time Diesel Particulate Analyser. of a one-minute test, the dPM-RT PDSA general manager Paul Gapes Real-time Diesel Particulate Analyser outlined some advances embedded in the appears to justify its claim to be a tool new instrument. that both management and workshop “The measuring chamber – the heart of staff need to reliably identify high DPM the instrument – is a radical new design, emitters, and to validate the effectiveness with enhanced measurement stability and of emissions-related maintenance.” sensitivity,” Mr Gapes said. Founded in 1984, Pacific Data Systems “Upgraded photo-electronics and Australia (PDSA) is a leader in smart improved laser beam control now generate monitoring and control systems. more stable, noise-free output. The company has provided robust “Traditionally, tailpipe particle devices and solutions for data collection, emission levels were measured by passing monitoring and control across a wide a portion of the exhaust stream through range of industries and applications. a pre-weighed filter, then weighing the Across Australia and the globe, clients filter to determine the mass of particulates spanning mining, exploration, defence, deposited. resource distribution, engineering, “This was a slow, laborious, specialised manufacturing, environmental and expensive task that needed to be monitoring, scientific research and outsourced to appropriately equipped engineering go to PDSA for the solutions laboratories, with a turnaround time that and services they need. MARCH 2018 THE AUSTLIAN MINING REVIEW DUMP & HAUL TRUCKS 59 MARCH 2018 60 FILTERS & FILTRATION THE AUSTLIAN MINING REVIEW A proud history

NATIONAL

ESTABLISHED in 1923 by George Dix to provide engineering services, solutions and products to clients in the mining, construction, automotive and agricultural industries, Dix Engineering has developed strong ties within South Australia in its 95 year history. Over the years the company has built an international reputation for excellence in the field of engineering with a record of achievements, completing projects in Australia, Asia, North and South America, and Europe. At a local level, the company is engaged with mining companies and suppliers to meet their specific requirements, including supplying filtration products such as stainless steel screen filters, media filters, and Azud Luxson Suction Scanner Filters and Disc Filtration Systems. Its range of stainless steel filters are manufactured at the company premises in Renmark and have proved extremely popular with irrigators and irrigation system installers and designers. Sintered mesh screens are available in 50 mesh, 80 mesh, 120 mesh and 150 mesh More information can be found at: www.dixrenmark.com.au. (number of holes per square inch) to cater for all requirements. “Welding can be a cost-effective solution as of CNC machined parts from its own workshop, time lines and completing tasks to a high Dix Engineering also undertakes various no tooling cost is required (jigs and fixtures and a variety of machining, milling and turning standard at all times. infrastructure projects, and can help are often used for production efficiency and precision, and foundry services. “We believe that our customer experience clients meet their design and performance dimensional uniformity),” Dix Engineering The company’s capabilities are a result of starts well before the customer has engaged requirements through its expert selection of director Alan Selfe said. investing in resources, rewarding and training our company to complete their project,” Mr welding material and welding processing. Dix Engineering also supplies a wide range personnel appropriately, committing to project Selfe said. MARCH 2018 THE AUSTLIAN MINING REVIEW FILTERS & FILTRATION 61 Protecting the environment

NATIONAL

NEDERMAN MikroPul is a leading provider of environmental impact reduction systems for the mining industry, offering solutions that reduce air pollution caused by industrial activities. Based in Australia, the company provides world-class engineered solutions to all parts of the world. Its high-efficiency dust collector cyclones are the most cost-effective option for separating dry particulate (five microns or larger) from gas streams. The cyclone dust collectors, named for their vortex motion similar to that of cyclones and tornados, are large, funnel-shaped tubes. Dust and debris is pulled into the tangential inlet at a high velocity, forcing material against the walls in a cyclonic motion. Larger particles slide down into the hopper while smaller or fine dust exits out the other side. The company’s inertial separators, can also be used to reduce the volume of particles from the mass flow of an air More information can be found at www.mikropul.com. stream or as a pre-separator or pre-filter include; Mikro-Vane Scrubber, a basic venturi-rod deck consisting of a series and heavy industry, which can fill the void for collectors handling greater efficiencies. wet scrubber for high inlet dust loadings; of rods arranged to create the venturi in localised clean-up and product transfer. In addition, the company also specialises Dynamic Scrubber with integral wetted effect between each rod; and Absorption On top of its vast product offering, the in bag filters, and is a worldwide pioneer fan, for all industrial and mining Tower, a packed tower arrangement that company prides itself on a full range of in pulse jet dust collectors, and providing applications; High Efficiency Venturi can be applied as gas absorbers, coolers, after-market services, including supplying wet scrubbers to solve air pollution control Scrubber, designed to suit any process humidifiers or condensers. spare parts, planned and preventative problems. gas requiring particulate removal; Nederman MikroPul has also developed maintenance work, as well as an emergency Wet scrubbers currently available Multi-Venturi Scrubber, which uses a high pressure vacuum systems for mining breakdown service. MARCH 2018 62 FILTERS & FILTRATION THE AUSTLIAN MINING REVIEW Vacuum filtration and degasification

NATIONAL

AVT Services is Australia’s foremost vacuum equipment and service provider; for just about anything vacuum, it can deliver. With its head office located in Sydney, and branch offices in Brisbane, Melbourne and Perth, AVT is well placed to provide sales, service, and advice to all vacuum oil filtration and degasification users in Australia. The company is committed to providing vacuum oil filtration solutions via this nationwide network, with extensive The Enervac Vacuum Oil Degasser. knowledge and unparalleled support. AVT Services delivers the most to tailor the right, cutting-edge technology advanced coverage of technology in products for customers. vacuum oil filtration equipment and is the AVT Services aims to be a “one stop Australian distributor of highly acclaimed shop”, where customers can find support Enervac Corporation vacuum oil filter for all vacuum filtration needs, be it in and purification systems that service a the supply of equipment, the design of range of industries, including chemistry, equipment, the management of vacuum mining, and power. processes or the maintenance of vacuum AVT’s consultants offer expert advice equipment and systems. MARCH 2018 THE AUSTLIAN MINING REVIEW FILTERS & FILTRATION 63 MARCH 2018 64 MINERAL PROCESSING THE AUSTLIAN MINING REVIEW MARCH 2018 THE AUSTLIAN MINING REVIEW MINE REHABILITATION 65 FEBRUARY 2018 66 RECRUITMENT SERVICES THE AUSTLIAN MINING REVIEW MARCH 2018 THE AUSTLIAN MINING REVIEW WORKSHOP SAFETY 67 Safety around moving vehicles

NATIONAL

ACCIDENTS involving moving vehicles and pedestrians are costly in terms of physical harm to staff and their families as well as business bottom line and reputation. Drivers affected by poor visibility (dust, smoke and blind spots) can find it almost impossible to see pedestrians nearby. Even in regular conditions, drivers can struggle to see what’s near them. Vehicles and pedestrians working closely together increase the chance of an accident dramatically. Physical barriers and exclusion zones help, but they depend on worker compliance and “human-factors” (inattention, distractions or poor judgment). Staff may be instructed to keep safe distances, but this relies on their judgment. “BodyGuard ensures no one gets hurt and can go home at the end of each day, our BodyGuard i-Tag is the perfect solution for safety around vehicles at work,” BodyGuard chief exsecutive David Huisman said: “It’s a pedestrian safety warning system that prevents vehicle operators and pedestrians colliding. More information can be found at www.bodyguardsafety.com.au. “This system does not rely on pedestrian compliance or judgment, removing the “When a pedestrian gets too close (breaches “The clear warning sticks out above other BodyGuard Safety Solutions have also human-factor and challenges associated with safety exclusion zone), the system informs the buzzers and beepers at the site. It is like introduced a new system for improving poor visibility.” driver,” Mr Huisman said. having a buddy looking out for pedestrians. safety in workshops where tyre-handlers and The system has three components; a “The cab alert unit warns the driver, using The system is designed to perform a single similar machines pose risk to pedestrians. personal “Tag” worn by pedestrians, “Sensor” an unmistakable high impact siren and human task well (detect people within the safety “This system operates remotely located unit attached to the vehicle, and “Cab Alert” voice (“Look out! Person near you!”) to get the exclusion zone around the vehicle). It is easy warning devices whenever the tyre-handler unit which speaks to the driver. driver’s attention and avoid an accident. to install, setup and operate.” machine is operating,” Mr Huisman said. MARCH 2018 68 WORKSHOP SAFETY THE AUSTLIAN MINING REVIEW Dropped object prevention

NATIONAL

DROPPED and falling objects are major causes of fatalities and Lost Time Injuries (LTIs) in the mining industry globally. Fixtures (lights, CCTV cameras, and speakers), handheld devices, unsecured tools, loose items, and structural components are all recognised hazards. For 10 years, industry safety provider Dropsafe has delivered innovative and patented mesh-security and mesh-safety solutions for the mining, oil and gas, industrial and marine industries. The global company has a whole host of products that eliminate risks on site, including the Dropsafe Barrier, a new state-of-the-art barrier panel system that prevents items such as tools, water bottles, hard hats, two way radios, shackles and maintenance equipment from falling through open guard railing, stairways and elevated work platforms that could potentially create a dropped object and LTI. The Dropsafe Barrier, now launched in the Australian market, has been cleverly designed to attach easily along the inside of the guard railing of walkways, stairways, conveyor’s The Dropsafe Barrier is now available in the Australian market. and access ways of permanent and temporary structures such as scaffolding, gangways, falling objects. Dropsafe also specialise in 316 stainless prevention’ including four-part safety utilising a universal attaching system. “The impact resistance, coupled with the steel safety nets that retain CCTV cameras, shackles, lanyards, securing cables and The Dropsafe Barrier has also been small honeycomb apertures of the barrier anodes, pipe clamps, and also pouches to carabiners. through extreme wind tests, impact tests panels prevent loose items from falling securely enclose and tether handheld items More information on Dropsafe’s and accelerated weather testing so it can from height where the barrier is installed,” such as gas detectors, two-way radios, patented technologies can be found at be installed in any harsh environment to Dropsafe Australia operations manager multi-meters and an assortment of other www.dropsafe.com or by emailing protect people from potential dropped and Gareth Warne said. accessories designed for ‘dropped object [email protected]. MARCH 2018 THE AUSTLIAN MINING REVIEW THE INTERVIEW 69 UNDER THE MICROSCOPE: Hawsons

With discounts for lower quality iron ore increasing, Carpentaria Resources’ Hawsons project – the highest grade undeveloped iron ore project in the world – is ready to capitalise on growing demand from Chinese steelmakers for high grade product. Cameron Drummond spoke with Carpentaria managing director Quentin Hill about the project’s Supergrade® product and his outlook on the future of the iron ore market.

Q. How is Carpentaria’s Hawsons iron magnetite project. ore project progressing? We are in a different geological domain to what’s in the west. It’s the secret of the deposit We drilled the first hole in 2009, and released that makes Hawsons the world’s leading Hawsons first resource in 2010. undeveloped, high-quality iron ore project. It is a $US1.4 billion development cost The ore itself is super soft, grinds super over an 18-month period, and will produce an easy and has a very low amount of impurities. initial 10 million tonnes per annum (mtpa) of This gives us the Hawsons Supergrade 70 per cent Fe Supergrade ore for projected product. The physical properties – because it’s annual revenue of $900m. so fine – means it’s perfect for pelletising. GHD performed an independent analysis Iron ore pellets are the most efficient thing of Hawsons and on a 62 per cent Fe basis, you can feed a blast furnace, and pellets are all-in sustaining costs are $23 per tonne, the preferred feed for a direct reduction (DR) which puts us in the first quartile of the furnace. global cost curve. It terms of the iron ore market it’s quite Our plan is to be in production by 2021, sophisticated. When people talk about subject to funding. high-grade, they talk about pellets, which We released our pre-feasibility results according to CRU Global has the highest in July 2017. Since then, we have been growth rate in the iron ore market. focused on keeping the project to schedule, There isn’t enough feed out there and that’s which includes EIS works and talking to where we come in. equity markets and customers about raising The demand for DR specification material between $25m and $30m for our bankable is incredibly tight, and the growth is supply feasibility study, of which we are making constrained. great progress on. This is why we have oversold 12 million We have been on several international trips tonnes of our 10mtpa ore in our initial offtake and customers have been looking through the agreements. data and responses have been good. While this has been happening, we have Why the structural market shift been tightening up our bankable feasibility Q. towards higher grade ore? program and schedule. We are running workshops where we’ve got a team with vast experience to help us to get the right It goes back to the Chinese industry organisational structure and implementation restructure, which started when the iron ore strategies to take us through construction price crashed. They wanted to close a lot of old, and into operation. polluting steel making facilities – which they have done. Q. What makes the Hawsons product What this means is that capacity utilisation attractive? has gone from a low 60 per cent up to 80 per cent. Economics tells you that the margins are going to be high. If you have these high The key point is that the deposit and the ore margins you want to produce as much as you is very different to other magnetites. The can. softness of the ore means the processing costs Hawsons managing director Quentin Hill. per tonne of product are well below any other (CONTINUED OVER) MARCH 2018 70 THE INTERVIEW THE AUSTLIAN MINING REVIEW

If you are feeding 58 per cent Fe against 70 (CONTINUED FROM PAGE 69) per cent Fe – using the higher grade means you can produce more steel at lower costs and exploit those margins. That’s what people are paying for now. Pollution is another factor. If you are running at an ore efficient level – you are burning less coal per tonne of steel. Due to increasing costs of pollution in China, steelmakers are looking to reduce that pollution – this again is why high grade ore is now more sought after. China is also shutting capacity down in the winter due to pollution, which means the rest of the steel market has to make up for that loss, and how do they up productivity? Again, higher grade ore. One more key point. To make the blast furnace most efficient, you increase the use of iron ore pellets. This allows better gas flow and super-efficient use of the blast furnace. We are not just benefiting from the need for higher grade iron ore, we are picking the eyes out of the high grade market by targeting its highest growth sectors – the pellet feed market, as well as the tight supply DR specification market. These markets will drive the development of our project.

Q. What factors are critical for iron ore juniors in Australia to be successful?

You need rail transport to lower costs, and you need a high quality product. If you have a product that the customers want, they will fund your development. In terms of direct shipping ore, it appears the best deposits have already been captured by the big four. That makes it hard for a junior unless iron ore prices are very high. Most of the past juniors started at that those high iron ore prices. The magnetite projects find it difficult too due to the logistics chain and the high energy costs being prohibitive to their profit margins. “GHD performed an independent It’s also important to have good partners. analysis of Hawsons and on a 62 Generally speaking, to get projects banked you need a project with excellent returns, per cent Fe basis, all-in sustaining and excellent customers whom the banks are costs are $23 per tonne, which prepared to lend against. puts us in the first quartile of the In terms of Hawsons our customers combined have more than $130 billion of global cost curve.” revenue and the ability to underwrite the revenue side of the contracts, and that makes our project attractive to lenders. In terms of magnetite projects and what you need – the logistics chain and infrastructure is always very important for bulk commodities, and that’s why it’s very difficult to compete against the majors because they have such sophisticated logistics chains. For Hawsons we are very fortunate. Because of our location, it is unlike any other undeveloped iron ore project in Australia. It’s right next to a power line, we have identified a water source, and are adjacent to a rail line that goes to two ports – Port Pirie and Whyalla. There is also a nearby ready workforce that we can tap into from the well-known mining town of Broken Hill. So that logistics chain is in place, we just need to negotiate access and contracts. On top of our super soft, super fine, super grade benefits, we also have those infrastructure benefits which lowers the overall capital expenditure for our project. The market has warmed up a bit. Lenders are still scarred from the downturn, but people are investing at the junior end of the market a little bit more because they see that the cycle has turned and that there’s good times ahead. We still see that the investment community in Australia is perhaps not ready for another magnetite project – but the customers are. Our job now is to link investors to demand.