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PREVIEW ISSUE
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CONTENTS
Copyright © Palladian Publications Ltd 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither does the publisher endorse any of the claims made in the advertisements. Printed in the UK.
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ON THE COVER
03 Comment
05 World News
REGIONAL REPORT: AUSTRALIA
10 An Upturn Down UnderAnthony Fensom, Australia, gives an overview of recent investment into Australian coal projects.
LONGWALL MINING
14 Technology Drives Longwall GainsDr Sebastian Mundry and Marco Ahler, Longwall Mining Division, Caterpillar Global Mining, Germany, discuss how evolving and new technologies are promising greater production, enhanced safety and reduced costs.
18 A Pillar Of SupportAllan Black, Joy Global, UK, explains why designing effective longwall hydraulics systems requires a holistic approach.
UNDERGROUND AUTOMATION & CONTROL
23 The Strongest LinkKarol Bartodziej, FAMUR, Poland, details the key factors behind automation and control system reliability in underground mines.
UNDERGROUND MINE POWER
29 Guaranteeing Integrity Jason Padgett, Ampcontrol, Australia, introduces the latest advancements in high‑integrity isolation systems.
SHOVELS & EXCAVATORS
32 Bringing Blasting Up To ScratchSimon Bill, Motion Metrics, Canada, explains how image‑based rock fragmentation solutions can be used to optimise blast parameters.
CRUSHERS, BREAKERS & SIZERS
36 Improving EfficienciesThorsten Roettgers and Arpad Csay, thyssenkrupp Industrial Solutions, China, outline how the installation of a second in‑pit crushing and conveying system at the Yiminhe mine in Mongolia is helping improve cost savings and reduce truck traffic.
This is a preview issue of Global Mining Review. Brought to you by the team behind World Coal, the leading magazine for the global coal industry, Global Mining Review will focus on technology and market trends in the international mining and mineral processing industries.
For more information: www.globalminingreview.com
CommentJONATHAN ROWLAND EDITOR
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Welcome to Global Mining Review – a brand new publication from Palladian Publications and the team behind World Coal, the leading magazine for
the global coal industry. Focusing on the mining and minerals processing industries across the world, Global Mining Review will be launched in May 2018 in time to appear at a number of key industry events, as well as being sent to a global readership of metallurgists, engineers, geologists, and mine managers.
The magazine will contain a range of high‑quality technical articles, in‑depth case studies and incisive industry analysis that is Palladian’s hallmark. The first issue will include regional reports on North America and Europe, as well as a special report
on iron ore. Technical features will include:
• Surface drill‑and‑blast• Mining trucks and tyres• Underground utility vehicles• Rock bolting• Crushing, sizing and grinding• Conveyor systems• Lubrication and wear protection• Mine software and planning
Our second issue will be published in September 2018 and feature at events, including
Electra Mining in South Africa. The issue will include regional reports on southern Africa and Australia and a special report on copper, as well as technical features including:
• Shovels, excavators and draglines• Engines and powertrains• Underground drilling• Ground control• Underground ventilation• Screening, filtration and dewatering• Stockyards and storage domes• Mine automation and optimisation
We hope this print sample gives you an idea of what is to come and the exciting opportunities that Global Mining Review will offer. And if you want to get involved, contact my colleagues Harleigh Hobbs for editorial ([email protected]) and Ryan Freeman for advertising ([email protected]) for more information. We look forward to hearing from you.
RZ_Eickhoff_Urkunde_E_170803.indd 1 03.08.17 17:12
WORLD NEWS
5GMR PREVIEW
USA Department of the Interior repeals coal valuation rule
The US Department of the Interior has announced the repeal of the Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform Rule
(Valuation Rule).The department indicated this was to create more
workable oil, gas and mineral valuation regulations and avoid costly litigation. It believes the valuation rule had created confusion and uncertainty regarding how companies report and pay royalties on energy and other mineral resources from federal onshore and offshore areas and American Indian lands.
It reported the repeal of the Valuation Rule, published in the Federal Register and effective on 6 September 2017, will provide certainty and clarity to the regulated community by continuing to require compliance with lawful and well‑known oil, gas, and coal regulations in force for more than a decade. These regulations are easy to understand and provide certainty to industry and the Office of Natural Resources Revenue (ONRR) that correct payment has been made.
“Repealing the Valuation Rule provides a clean slate to create workable valuation regulations,” said Secretary of the Interior Ryan Zinke. “We are committed to working closely with stakeholders and the newly chartered Royalty Policy Committee to explore options for future rulemakings and to avoid the structural defects that were found in the prior rule. The Department and the Office of Natural Resources Revenue remain committed to collecting every dollar due. These are taxpayer and American Indian assets, and the public and American Indians deserve an accurate accounting and valuation.”
RPMGlobal to acquire MineOptimaRPMGlobal has entered into a share purchase agreement to acquire 100% of the issued share capital of MineOptima, a leading global private company with more than 20 years’ experience developing software applications that design the optimal equipment access layouts for underground mines.
MineOptima arose out of the research of the Network Optimisation Group at the University of Melbourne over a twenty‑year period. The team developed theory
and algorithms to design least cost access networks for underground mines satisfying navigability constraints. The research was sponsored by a number of mining companies, including Newmont, Rand Mining and Tribune Resources, as well as the Australian Research Council. A considerable number of PhD projects were also completed.
RPM’s CEO and Managing Director Richard Mathews commented: “We are very pleased to have concluded negotiations to acquire MineOptima. This strategic acquisition will fast‑track RPM’s underground mining software solutions by providing RPM with access to the industry leading tools specifically designed to optimise access layouts for underground mines delivering our customers the opportunity to achieve greater levels of productivity.”
MineOptima are the exclusive developers and intellectual property owners of the Decline Optimisation Tool (DOT), Planar Underground Network Optimiser (PUNO), Large‑scale Underground Network Optimiser (LUNO), Gas Gathering Network Optimiser (GGNO) and Underground Mine Optimal Infrastructure Designer (UMOID) software solutions. Mathews added: “DOT can automatically select the best option for level access or the best choice of breakout points where there are alternatives. DOT returns centreline strings of the optimal declines, and a summary report showing the selected points, and the lengths, gradients, development and haulage costs, for each link in the optimal network. DOT includes a tool that allows the user to adjust any design generated by the program, by fixing selected breakouts and freeing others, and then rerunning the optimisation.”
MineOptima’s Managing Director Professor Hyam Rubinstein said: “We are delighted that our algorithms and software will be available to the mining industry through RPM’s underground mining solutions. This is a wonderful way for our research to be of maximum benefit to mining companies.”
FLSmidth to acquire part of Sandvik Mining SystemsFLSmidth has reached an agreement to acquire a part of Sandvik Mining Systems. This includes continuous surface
WORLD NEWSDiary Dates
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mining and minerals handling technologies and competences that will strengthen the group’s core minerals business.
The pending acquisition enables FLSmidth to improve productivity for its customers by closing a gap and cover a wider range of the full mining value chain – from the primary crushing point in the mining pit and the transport from mine to plant all the way through the minerals processing plant to the tailings handling.
By obtaining direct access to all key processes and equipment, the acquisition will allow FLSmidth to digitalise the full value chain and enables a better utilisation of existing leading technologies.
The pending acquisition includes the part of Sandvik Mining Systems that is closest to the mine. This includes all products for continuous surface mining and minerals handling technologies and related intellectual property, including drawings and reference lists. The transfer of employees with strong experience, competences and customer insights.
FLSmidth will provide project management and aftermarket services to Sandvik on the majority of ongoing projects to be delivered during 2017 – 2019.
The agreement is subject to certain conditions, including regulatory authority clearance, and closing is expected by the end of 2017.
Boliden sells Canadian assetsBoliden has signed an agreement with Ascot Resources regarding the sale of its mineral rights and other assets associated with the Premier Gold Mine in western Canada.
Pursuant to the agreement, Boliden will sell the mineral rights, land, permits,
licences and other assets it holds in connection with the Premier Gold Mine to Ascot Resources Ltd.
Boliden will receive a purchase price of CAN$4.8 million (plus an additional CAN$1 million due to the concurrent exercise of an option held by Ascot to purchase additional mineral rights) and a royalty of 5% of any future mine production. The effect on Boliden’s operating result is estimated to approximately CAN$5 million.
In addition, Ascot will assume all obligations and liabilities in connection with the Premier Gold Mine. The completion of the transaction is subject to, among other things, obtaining consents and approvals from governmental authorities in Canada with respect to the transfer of the various permits and licences.
Premier Gold is currently an inactive mine in British Columbia, Canada. Boliden has been carrying out reclamation and maintenance obligations for the mine.
Barrick and Shandong form joint venture at Veladero mineBarrick Gold Corporation has completed the sale of a 50% interest in the Veladero mine in San Juan province, Argentina to Shandong Gold Mining Co. Ltd, for $960 million.
The formation of a 50/50 joint venture at Veladero is the first of three steps outlined in a strategic cooperation agreement signed by Barrick and Shandong Gold Group Co. Ltd on 6 April.
In keeping with the second step in the agreement, the two companies have also formed a working group to explore the joint development of the Pascua‑Lama
Asia-Pacific’s International Mining Exhibition (AIMEX)29 – 31 August 2017 Sydney, Australiawww.aimex.com.au
Katowice 201729 August – 1 September 2017 Katowice, Polandwww.ptg.info.pl
Bluefield Coal Show13 – 15 September 2017 Bluefield, USAwww.bluefieldchamber.com/bluefield-coal-show
Electra Mining Botswana 201712 – 14 September 2017Gaborone, Botswanawww.electramining.co.bw
Mining Indonesia 13 – 16 September 2017 Jakarta, Indonesiamining-indonesia.com
Coal Association of Canada Conference 201727 – 29 September 2017 Vancouver, Canadawww.coal.ca
International Mining and Resources Conference30 October – 2 November 2017Melbourne, Australiaimarcmelbourne.com
2018 SME Annual Conference & Expo25 – 28 FebruaryMinneapolis, USAwww.smemeetings.com/sme-ace-2018
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WORLD NEWS
8 GMR PREVIEW
deposit. As a third step, Barrick and Shandong will evaluate additional investment opportunities on the highly prospective El Indio Gold Belt on the border of Argentina and Chile.
BHP to invest over AUS$600 million in Olympic Dam in FY2018Olympic Dam is set to benefit from BHP’s investment of more than AUS$600 million over FY2018 on a range of important programmes of work underway in South Australia.
Speaking at the American Chamber of Commerce event in Adelaide, Asset President Olympic Dam, Jacqui McGill, said Olympic Dam had 49 projects in execution this financial year.
“This represents the most significant investment we’ve ever made in our South Australian operations. And these investments – in our underground infrastructure and above ground processing operations – will help us build the foundations for long term, safe, stable and sustainable growth at Olympic Dam,” she said. “The investment will ensure the operation is more modern, reliable and can support processing of additional tonnes in coming financial years.”
McGill highlighted Olympic Dam had more programmes of work in execution this financial year than any other BHP operation in Australia.
“Forty of these projects are being supported by BHP’s new functional‑regional model, which means Olympic Dam can draw on the incredible expertise within BHP’s Minerals Australia projects team,” she said.
The AUS$600 million capital investment is apportioned across three key areas at Olympic Dam:
• Around 20% of the investment supports the underground expansion into the high‑grade Southern Mine Area including additional fleet, telecommunications, raise bores, power and other services.
• Nearly 40% will underpin further underground development in the existing Northern Mine Area footprint.
• As announced, more than 40% is directed to a wide range of infrastructure and other programs onsite, including the major smelter campaign – which is a AUS$350million construction program spread across FY2017 and FY2018.
To support the additional work at Olympic Dam, McGill said the company was recruiting to make sure the best people were working with the team.
“In addition to leveraging the expertise of our BHP colleagues internally, we’re also boosting numbers in our Olympic Dam squad, so that we have a more diverse workforce that is representative of the communities in which we operate in. I’m proud that in the last 12 months, our recruitment of new female employees to join our team has increased by 20%,” McGill said.
Bethune mine produces first tonnes of potashK+S has produced the first tonnes of marketable potash in its new Bethune potash mine in Saskatchewan.
“This is a great day for our company,” remarked Dr Burkhard Lohr, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft. “With Bethune, the most modern potash facility in the world, we are pushing into a new dimension. We are now producing potash on two continents,” Lohr continued.
K+S intends to produce 600 000 – 700 000 t of potash in the Bethune mine this year. The annual production capacity of 2 million t is planned to be reached by the end of 2017.
The first potash transport from Bethune to the new harbor terminal at Vancouver should leave in August. From there the potash will be shipped to clients around the world.
“Our team on site under direction of Dr Ulrich Lamp has achieved an extraordinary performance. Therefore they receive the thanks of us all,” concluded Dr Lohr.
Eickhoff shearer reaches new record at Kotinskaya mineDuring July 2017, AO SUEK‑Kuzbass’s Yalevskovo (formerly Kotinskaya) mine located in the Kemerovo area reported another new world record of 1.567 million t of raw coal mined from a single face with its Eickhoff SL 900 shearer loader.
The Eickhoff SL 900 has high flexibility in varying seam thicknesses ranging from 2.4 to 6 meter, as well as having an installed power of more than 2500 kW. This Eickhoff shearer loader covers a wide spectrum of cutting ranges while the power reserves provide enormous potential for increased production rates – as highly skilled and motivated SUEK staff prove continuously.
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Anthony Fensom, Australia, gives an overview of recent investment into Australian coal projects.
A ustralia’s coal industry has received a welcome confidence boost, after Indian giant Adani’s
announcement that it had reached the final investment decision on its AUS$16.5 billion Carmichael coal project. The move followed an upturn in coal prices that has boosted profits
for established operators and brightened the outlook for one of the nation’s biggest exports, amid a renewed debate over the industry’s future.
Adani’s 6 June announcement followed seven years of court battles and protests by environmental groups,
with analysts also questioning whether the project would secure the necessary financing.
Yet the promised jobs and investment surge has come at a welcome time for the North Queensland region, with government and industry eyeing the opening of the Galilee Basin.
Melbourne, Australia.
"This is an historic day for Adani, an historic day for regional Queensland, and an historic day for Indian investment in Australia," Adani Chairman Gautam Adani said.
"This is the largest single investment by an Indian corporation in Australia, and I believe others will follow with investments and trade deals.”
Adani said the thermal coal mine would commence with a capacity of 20 million tpy but could be expanded to 60 million t. It would create 10 000 direct and indirect jobs, with pre‑construction works to begin later in 2017.
Queensland shipped more than 162 million t of metallurgical coal in 2016 worth an estimated AUS$17 billion, along with thermal coal exports, with the Carmichael mine set to significantly boost the latter.
Queensland Premier Annastacia Palaszczuk, who helped celebrate the opening of Adani’s regional headquarters in Townsville, said: “there will be jobs right across this state.”
Federal Resources and Northern Australia Minister, Matt Canavan also welcomed Adani’s announcement, saying the Galilee Basin could become the nation’s biggest coal‑producing district.
“It’s the first time we as a country will open up a coal basin for 50 years. If Adani gets their mine up and running, others will follow,” he said.
Yet environmental activists have vowed to stop the mine’s development, with Queensland Greens senator Larissa Waters describing it as a “climate change disaster in the making.”
Others pointed to a AUS$3.3 billion funding shortfall that needed to be filled before financial close on the first stage of the mine, rail and port project. Adani has also sought an AUS$900 million concessional loan from the federal government’s Northern Australia Infrastructure Facility to help build a rail line to its Abbot Point coal terminal, with federal opposition leader Bill Shorten as well as rival Hunter Valley investors arguing against taxpayer support.
Yet the Indian company’s persistence could yet mark a turning point for the industry.
“It’s a very encouraging move…there are a number of other proponents in the Galilee Basin, including GVK Hancock, Resolve Coal and AMCI in the south, and Adani’s new mine will increase the viability of these projects,” Balance Advisory Director Michael Ryan said.
However, he noted: “competing thermal coal producers may be worried as it could mean a significant amount of coal coming onto the market. The central question is does final investment decision equal actual investment, but you can’t ask for more from Adani at this point in time.”
Wood Mackenzie’s Pralabh Bhargava said Adani’s Carmichael mine would likely commence production in 2023, based on the demand and pricing outlook, as well as accounting for “delays due to Native Title Law challenges and finance risk.”
New projectsAdani’s decision has not been the only good news, with the reopening of previously closed mines, such as Collinsville, along with other new projects.
In May, Japan’s JFE Steel Corp. announced the start of construction work on the Byerwen coal project, a joint venture between JFE Steel and QCoal, with the aim of starting shipments “in early 2018.”
Located in Queensland’s Bowen Basin, the AUS$1.76 billion project is expected to produce up to 10 million tpy of metallurgical and thermal coal.
In the same month, the Queensland government approved mining leases for New Hope’s AUS$300 million Colton coal mine near Maryborough, which is expected to produce 500 000 tpy of metallurgical coal.
Echoing Stanmore Coal’s famous AUS$1 acquisition of its Isaac Plains mine, TerraCom subsidiary Orion Mining took control of the Blair Athol coal mine in May after acquiring it for just a dollar. TerraCom said it planned to ramp up production to 2 million tpy “very quickly,” with the mine creating more than 600 jobs.
In April, the Queensland government announced further progress towards the opening of Pembroke Resources’ AUS$1 billion Olive Downs mine near Moranbah. The mine is expected to produce up to 14 million tpy of metallurgical coal.
BHP Mitsubishi Alliance announced in April plans to invest US$204 million in its Caval Ridge Southern Circuit project, which would transport coal from its Peak Downs mine to a coal handling preparation plant at the nearby Caval Ridge mine.
Exploration activity has also steadily increased, with privately owned Vitrinite announcing in May its discovery of 123 million t of metallurgical coal in its Karin Basin tenement in the Bowen Basin, reportedly offering some of the nation’s highest quality metallurgical coal.
Further south in New South Wales (NSW) state, coal has continued its reign as the state’s main export earner with around AUS$13.2 billion worth of exports in fiscal year 2016, “greater than the value of our tourism and education exports combined,” the NSW Resources Ministry noted.
Exports through the Port of Newcastle hit a record high of 59 million t, with Port Kembla exporting an additional 10 million t. The Newcastle port also expanded capacity to 211 million tpy, making it the world’s largest coal export port.
Among new NSW coal projects, Whitehaven Coal has stated plans for a new mine near Gunnedah, with its Vickery project targeting 10 million tpy of thermal coal.
Meanwhile, merger and acquisition (M&A) activity has continued to heat up, with major miner Rio Tinto announcing in January the sale of its Hunter Valley coal assets to Chinese miner Yancoal for US$2.45 billion. Rival miner Glencore countered in June with its US$2.55 billion bid, which would allow the Swiss miner to merge its Hunter Valley mines with Rio’s.
Further M&A activity surrounded Queensland’s Dawsons and Moranbah South mines, with Anglo American owing equity in both assets. After reportedly pulling out of Australia in 2015, the London‑listed miner returned the following year with plans to keep
12 GMR PREVIEW
mines such as Dawson and Moranbah North, while selling others such as Drayton South and Foxleigh.
Industry hurdlesDespite the positive momentum, the Australian coal industry has encountered a range of environmental, financial and legal hurdles.
In April, Westpac, one of Australia’s 'Big Four' banks, declared it would not finance new mines in previously undeveloped coal basins nor lend to mines producing coal with low energy content, a move seen blocking any loans to the Carmichael project. Rival banks ANZ and NAB reportedly have also ruled out funding it, amid a campaign by activists against lenders and suppliers to the Adani project.
The coal industry has also faced the re‑emergence of coal workers’ pneumoconiosis, or 'black lung' disease, with 21 Queensland miners diagnosed with the disease as of May 2017. In a 29 May statement, Queensland Resources Minister Dr Anthony Lynham pledged further reforms to improve workers’ health, amid reports that more cases could be uncovered.
In NSW, the state’s Greens party proposed the end of thermal coal mining within a decade, despite the state obtaining around 80% of its electricity from coal. Opposition to new mines in the Liverpool Plains region pushed the state government to buy back BHP Billiton’s Caroona exploration licences for AUS$220 million, while protests have continued against Shenhua’s proposed Watermark and other mines.
Legal battles have continued too, engulfing even brownfield expansions, such as New Hope’s New Acland expansion, which has been stuck in legal limbo for 10 years. On 31 May, Queensland’s Land Court ruled against the company’s planned AUS$900 million project, citing risks to groundwater, although the Queensland government still had the power to approve the project.
However, the coal industry’s longer‑term future in Australia received some reassurance following the June release of the Australian government’s Finkel Review into energy policy.
It projected coal’s share of power generation would fall to 53% by 2030 from 76% in 2016, based on the government’s Clean Energy Target (CET). By 2050, coal would still account for around a quarter of generation.
Coal‑fired power plants fitted with carbon capture and storage would be eligible for inclusion under the CET, “provided they meet or are below the emissions intensity threshold,” although its proposed threshold would exclude high‑efficiency, low‑emissions (HELE) coal generation.
While welcoming the review’s “technology‑neutral” approach, the Minerals Council of Australia (MCA) said it implied that HELE coal generation was not “clean energy.”
“This conclusion is contradicted by the fact that countries around the world, including Germany, Japan, China, India and dozens more in East Asia, are relying on HELE coal generation to meet their Paris targets while ensuring low‑cost, reliable energy. That is why there are more than 1200 HELE plants under construction or planned in East Asia alone,” the MCA said.
Price rallyAustralian miners enjoyed a price surge in April 2017 after the destructive Cyclone Debbie hit North Queensland, damaging rail lines and other infrastructure. Prices for premium Australian metallurgical coal reached as high as US$314/t, although they subsequently eased to around US$150 by June.
Thermal coal was trading at US$74/t in early June 2017, having reached US$93/t in late 2016 due to China’s government‑imposed cutbacks and weather‑related disruptions.
However, Wood Mackenzie sees metallurgical and thermal coal prices returning to US$110/t and US$72/t respectively, in the year ahead.
“At current spot levels for coking coal, all the Australian coal mines are making money,” said Brent Spalding, Principal Analyst, APAC coal costs.
The Australian government Industry Department’s “Resources and Energy Quarterly” for March 2017 predicted a AUS$16 billion export boost for the nation on the back of higher
metallurgical coal prices and export volumes in fiscal year 2017, with production projected rising by 3.4% to 196 million t.
For fiscal year 2018, it projected similar production of 198 million t, rising to 210 million t by fiscal 2022 as new mines, such as Byerwen, come into production, along with the resumption of Collinsville and Eagle Downs.
While benchmark metallurgical coal prices between Australian and Japanese negotiators reached US$285/t in the March quarter – the highest such price in five years – the department said prices would likely average US$194/t in 2017.
Meanwhile, export volumes are seen rising on the back of stronger demand from the ASEAN region and India, currently the largest importer of Australian metallurgical coal.
For thermal coal, the department sees higher prices and demand from India and Southeast Asia spurring steady production growth. Total production is seen rising by 1.1% to reach 253 million t in fiscal year 2017, thereafter climbing to reach 268 million t by fiscal year 2022. New mines expected by 2022 include the Carmichael, Grosvenor West and Monto mines, all in Queensland.
Benchmark Newcastle thermal coal FOB spot prices averaged US$93/t in the December quarter – the highest average since 2012 – on the back of supply disruptions in China, although the department sees prices averaging US$77/t in 2017.
Nevertheless, in May 2017, an annual benchmark price of US$84.97/t was agreed with Japanese buyers – the highest since 2013 and a 38% rise on the previous year’s level.
Coal industry consultant Brice Mutton said Australian producers were well positioned to take advantage of the improved conditions.
“Costs, both operating and capital, have been cut, companies streamlined, mines and projects made more efficient, and we will now see good performances under solid prices,” he said.
After suffering its share of pain, Australia’s coal industry appears on the verge of a major upturn, should Adani’s new mine proceed as planned.
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