Global projects and exploration
Australia
Exploration back on the map
Australian gold mining companies are spending
more on exploration activities than a year ago,
which is good news for the industry. According
to Warren Pearce, CEO of the Association of
Mining and Exploration Companies, about
AUD223-million was spent in the country
on gold exploration during the June quarter.
According to the Australian Bureau of Statistics,
more than three-quarters of the exploration
activities took place in Western Australia alone.
That’s a big chunk of the AUD563.4-million
that was spent across all mineral exploration
initiatives during this period,” says Pearce. “The
jump in exploration will lead to longer mine lives
and hopefully future mines,” Pearce adds.
Looking ahead, Australia’s established gold
miners have outlined their spending plans for the
2019 financial year, and the numbers are nothing
short of impressive.
Saracen Mineral Holdings, which owns the
Thunderbox and Carosue Dam mines north of
Kalgoorlie, plans to set an in-house record of
AUD60-million on exploration spend in the
first quarter of 2019, up from AUD17-million
recorded in the previous corresponding period,
as it looks to target organic production growth to
350 000 ounces of gold per annum.
Northern Star Resources announced at Diggers
& Dealers recently that it had also committed
AUD60-million towards exploration and drilling
work for the first period of 2019; however, that
was before the Perth-based miner announced
plans to become a near-one-million ounce per
annum producer through the acquisition of the
Pogo gold mine in Alaska.
Newcrest Mining, meanwhile, plans to spend
up to AUD320-million on exploration at Cadia
Valley in New South Wales, and the Telfer Mine
in Western Australia next year. Evolution Mining
has inked an AUD40-million budget for the
current financial year, while St Barbara plans to
spend up to AUD17-million across its Australian
operations.
Australia
More miners embrace automation
Mining companies across the globe are
embracing automation in their quest to boost
efficiency and reduce human labour. In Australia,
automation in the mining industry began with the
implementation of Komatsu’s automatic hauling
system (AHS) at Rio Tinto’s Pilbara iron ore
operations in 2008.
Data and analytics company GlobalData
predicts that the AHS truck fleet will noticeably
reduce operating costs at the country’s iron ore
mines.
Rio Tinto, which is responsible for up to 40%
of Australia’s iron ore production, has gradually
expanded its AHS truck fleet from five in 2008
[10] MINING MIRROR NOVEMBER 2018
to 95 at the end of 2017. The company plans to
increase the number further to around 150 trucks
by 2020.
So far, Rio Tinto has invested over USD2-billion
towards installation of AHS trucks and robotics,
with the majority of these at the company’s Pilbara
iron ore operations. Through these investments and
upgrades, the company reported a 37% increase in
the per person productivity between 2014 and 2017.
According to Ankita Awasthi, senior mining
analyst at GlobalData, AHS can play a significant
role in reducing the mining cost, which accounts for
an average of 34% of the total operating cost. “The
key benefits of AHS trucks include improved haul
truck utilisation, alongside higher productivity,” says
Awasthi.
AHS trucks form only one part of Rio
Tinto’s Mine of the Future programme. Other
technological advancements include automated
drilling system (ADS), AutoHaul, mine automation
system (MAS), and 3-D software technology. The
company implemented the world’s first AutoHaul
rail network in the first quarter of 2017, automating
more than 60% of its rail network.
Other Australian iron ore miners, such as BHP
and FMG, which together control up to 45% of
the country’s iron ore supply, have deployed AHS
trucks at their respective mining sites. For example,
in 2013, FMG initially deployed 54 AHS trucks
and currently has 56 AHS trucks in operation, with
its fleet expected to expand to 68 AHS trucks by
2020, while BHP is expected to add up to 50 by the
same year.
“While the numbers are still relatively small,
the gradual increase in the AHS fleets is expected
to have a noticeable impact on average operating
costs for the major iron ore miners. In conjunction
with other measures, GlobalData expects operating
cost reductions on a per ton basis in the range
of USD0.50 to USD0.62 by 2020 for the major
iron ore miners, reducing the already low average
from USD13.63/t in 2017 to USD13.07 in 2020,”
Awasthi concludes.
Finland
Gold mine invests in hoisting
As part of the development of its mining processes,
the largest gold mine in Europe — located in
Kittilä, the far north of Finland — has invested
in ABB’s production and personnel hoists. This
investment will contribute to increasing the capacity
of the mine and reducing the use of fossil fuels.
The delivery is part of the USD186-million
expansion investment in the Kittilä Mine by mining
company Agnico Eagle Finland Oy, which started
in the spring of 2018. A mine shaft over a kilometre
deep will be built at the mine, from which ore will
be lifted with hoisting equipment supplied by ABB.
The shaft will make it possible to use the deeper
parts of the gold deposit in an economically viable
way. This will also improve the energy efficiency of
the mine and reduce the use of fossil fuels, as it will
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