MiningLink News

Mining giant Rio Tinto has announced it will back the development and commercialisation of breakthrough mining technologies. As a partner of Founders Factory, a global venture studio and start-up investor, Rio will invest $14.4 million in global pre-seed and seed stage start-ups over the next three years. The technologies backed will focus on safe mine operations, decarbonisation, exploration processing and automation, with each start-up receiving a cash investment and the chance to participate in a four-month accelerator program through Founders Factory. “Technology has always been at the forefront of our industry and Western Australia can be the Silicon Valley of the global mining industry,” Rio Tinto iron ore chief executive Simon Trott said . “Our iron ore operations in the Pilbara are among the most technologically advanced in the world. This exciting new partnership gives us the opportunity to build on our innovative legacy to unlock new technologies and help our business find better ways to provide the materials the world needs.” Western Australian Premier Roger Cook expressed his excitement for the partnership. “Securing the internationally renowned Founders Factory for Perth is a major coup for our state,” he said. “This is the first time the tech accelerator has operated in Australia, providing a springboard for innovative local businesses to reach an international audience and maximise their chances of success.  “This three-year partnership will further cement WA’s position as a global leader in research and the development, helping to diversify the economy and create the jobs of the future.” Source: https://www.australianmining.com.au/rio-tinto-teams-up-with-leading-tech-startups/

AngloGold Ashanti has released its 2023 annual report, where chairperson Maria Ramos described the year as one of “fundamental change”. The gold miner recorded $4.6 billion in revenue for the period ending December 31 2023, along with about $1.4 in adjusted earnings before interest, taxes, depreciation, and amortisation and $109 million in free cash flow. A total of $91 million in dividends were also paid to shareholders. AngloGold chief executive officer Alberto Calderon said the company’s most significant milestone for 2023 was the successful corporate restructuring of the business. The corporate restructure saw AngloGold transition its primary listing to the NYSE (New York Stock Exchange), moving its group headquarters to Denver, US, and its official domicile being the UK. “This places us directly in the world’s leading capital market, and the largest equity market for gold shares, among the world’s most highly valued producers,” Calderon said. “We believe this will, in time, lower our cost of capital and position us well for future growth opportunities.” In Australia, AngloGold saw a 21 per cent increase in total gold production from the previous year by producing 562,000 ounces (oz) of gold. The Sunrise Dam operation accounted for $47 million of the company’s regional capital expenditure and produced 252,000oz. “Higher gold production and favourable ore stockpile inventory movements, as well as the weakening of the Australian dollar against the US dollar, offset higher labour and consumables costs and higher royalties paid, contributing to lower total cash costs for 2023 of $1318/oz compared to $1402/oz in 2022,” AngloGold said. The Tropicana joint venture shared with Regis Resources contributed $87 million to AngloGold’s regional capital expenditure and produced 310,000oz. “The higher head grade was partially offset by slightly lower ore tonnes processed, due to a larger proportion of harder ore in the mill feed in the second half,” AngloGold said. “Higher waste stripping and drill and blast costs, partially offset by favourable ore stockpile inventory movements and the weakening of the Australian dollar against the US dollar, contributed to a higher total cash cost of $1105/oz for the year compared to the $881/oz reported for 2022. “Construction of a renewable energy facility at Tropicana started in the second half of the year and is on schedule for completion in early 2025. The facility comprises four 6MW (megawatt) wind turbines, a 24MW solar farm and a 14MW battery storage system. “It will integrate 62MW of clean energy into Tropicana’s existing 54MW gas fired power system, reducing the site’s diesel and gas consumption for power generation by 96 per cent and 50 per cent respectively, slashing carbon emissions by more than 65,000t (tonnes) annually over a 10-year period.”  AngloGold also rehabilitated 265 hectares of land in 2023, 42ha more than what was rehabilitated in the previous year. Source: https://www.australianmining.com.au/a-year-of-fundamental-change-for-anglogold-ashanti/

The global appetite for coal grew eight per cent in 2023, but global conditions and volatile weather patterns are setting an uncertain stage for the commodity. Australian Mining investigates. The Federal Government’s ‘ Resources and Energy Quarterly ’ (REQ) for March 2024 revealed coal to be Australia’s largest exporter in 2023 at around 170 million tonnes. It’s a huge boon for the country, as overall global metallurgical coal demand is projected to rise from 317 million tonnes in 2023 to 331 million tonnes by 2029. World steel output is expected to grow at 1.5 per cent every year over to 2029, providing a strong baseline for metallurgical coal use in the medium term. The REQ found numerous Asian countries continue to progress ambitious steel plans and are likely to drive an increased pace of steel production over time. Notably, the Chinese Government has imposed three per cent import tariffs on metallurgical coal in order to protect its domestic industry. Though Australia is exempt from these tariffs under Free Trade Agreements, the REQ forecasts the global boom China has been drumming up may be reaching its peak as a result. While China’s coal demand may slow, India’s imports grew by 25 per cent to 73 million tonnes in 2023, with growth expected to continue through to the end of the decade. On the price side, Australian prime hard coking coal averaged $US294 a tonne (/t) in 2023, significantly lower than the 2022 average of $US360/t. The REQ forecast prices will continue to experience volatility as a result of supply side issues like logistical pressures and weather events like Cyclone Jasper. Prices are expected to broadly trend downwards in 2024, averaging $US277 a tonne for the year. The volatility comes from the likelihood of a new La Niña cycle and associated disruptions. In real terms, prices are expected to fall to $US185 a tonne by 2029. But the REQ held an overall positive outlook as Australian export volumes are expected to increase from 161 million tonnes (Mt) in 2023–24 to 175 Mt by 2028–29, as mines in NSW and Queensland ramp up. These prospects include Bowen’s Bluff mine, Burton and Broadmeadow East projects, Pembroke’s Olive Downs complex, and Anglo American’s German Creek among others.  Overall, the fundamentals remain favourable, with Australia primed to continue dominating the global market in 2024 and beyond. Source: https://www.australianmining.com.au/whats-next-for-australian-coal/

Abra Mining has appointed administrators, calling in Richard Tucker and Robert Hutson of KordaMentha. The company, a joint venture between Galena Mining (60 per cent) and CBH Western Australia (40 per cent), owns and operates the Abra base metals mine in the Gascoyne region of WA. Abra has previously outlined ramp-up issues with mining rates, mined grade and recent rainfall events restricting in-bound critical supplies and out-bound concentrate haulage. “In February and March to date, Abra concentrate production and haulage has been affected by flooded roads forcing the mine to preserve LNG stocks,” Galena managing director Tony James said in March . “The mined and processed grade continues to be lower than planned due to ongoing modelling and operational variances. “The mine has brought forward a mill re-line which was initially scheduled for April with the view of achieving a continuous processing block in the coming weeks once the road is re-opened.” January ore milled was 107,886 tonnes (t) at 5.3 per cent lead grade, producing 7861t of concentrate. That same month, processing was impacted by 95 hours of mill downtime.  According to Galena, the administrators plan to operate the Abra mine and processing plant on a business-as-usual basis while reviewing operating options. Source: https://www.australianmining.com.au/abra-calls-in-administrators/

Wiluna Mining has delisted from the ASX, almost two years after it entered voluntary administration. The Perth-based gold company said delisting wasn’t anticipated to significantly impede strategic review process, implementation of the deed of company arrangement or process for re-admission to ASX. Wiluna said its deed administrators had applied for relief, but relief wasn’t granted by the ASX. Despite this, the deed administrators will continue to engage with external parties interested in the recapitalisation of Wiluna. In February, FTI Consulting senior managing director Mike Ryan said the Wiluna gold mine’s pre-feasibility study demonstrated a potential pathway to return the Wiluna operations to a viable footing. “As has been demonstrated through multiple resource and reserve statements, Wiluna has a large amount of gold mineral and ore at healthy grades,” Ryan said at the time. “The potential of the 5.24 million ounces of gold contained within Wiluna resources cannot be overlooked.” As of March 31 2024, Wiluna holds $2.67 million in cash. The company also sold 7281 ounces (oz) of gold bullion during the March 2024 quarter at an average price of $3155/oz. Overall grade processed during the March 2024 quarter increased from 0.61 grams per tonne (g/t) of gold to 0.75g/t of gold, with the overall recovery decreasing from 51.5 per cent to 47.7 per cent. Wiluna also processed 617,522 tonnes of tailings and dump leach material for 7088oz of gold during the March 2024 quarter, a 31,899-tonne and 1134-oz increase from the previous quarter.  The company said dewatering systems and access to key areas underground continue to be maintained during care and maintenance to facilitate the restart of future mining operations, and the ramp up of the Wiltails circuit remains underway. Source: https://www.australianmining.com.au/wiluna-mining-removed-from-asx/

The Queensland Government has awarded Key Solutions Group a $500,000 grant through the Manufacturing Hubs Grant Program. The Manufacturing Hubs Grant Program provides funding and other assistance to help regional manufacturing small-to-medium enterprises build their advanced manufacturing capability. Key Solutions Group will use the grant to purchase and install two Motoman AR1440 series welding robots, Power-Trac seam finders/trackers and rotary screw compressors. The machinery is expected to reduce production costs by 30 per cent and generate private sector investment of more than $1.2 million. It is also set to expand Key Solutions Group’s manufacturing capacity through the creation of eight new jobs while upskilling 28 current employees. The funding given to Key Solutions Group was part of the Manufacturing Hubs Grant Program’s third round. “Every time we see a Queensland manufacturer take advantage of these grant programs, I know that it’s a step in the right direction for creating a more resilient and robust manufacturing sector,” Queensland Manufacturing Minister Glenn Butcher said . “We have helped so many businesses throughout Queensland, just like Key Solutions Group, with leaders who can see an opportunity to expand their factory’s capabilities, an opportunity to secure more clients and grow their business. “We have heard from many manufacturers that it’s challenging to recruit staff for welding roles and so wherever possible, automation is solving some of those problems. It also means staff can be upskilled to new roles and some of those manage the robotic part of the process.” Key Solutions Group managing director Frank Attard said the grant will assist in the growth of the company. “We’ll be able to achieve significantly greater efficiencies in time usage and labour output, which will ultimately result in better service to our growing customer base,” Attard said. “The robotic manufacturing facility project will be a key ingredient in our business growth path and we’re looking forward to bringing in more customers with a broader product and service offerings.”  Key Solutions Group is an engineering specialist company based in Mackay that specialises in pipe welding, repairs and component manufacturing and is a major service provider to Mackay’s mining and agriculture sectors. Source: https://www.australianmining.com.au/key-solutions-group-awarded-manufacturing-grant/

Majors Silver Lake Resources and Red 5 have shared their March quarter results, recording strong output across operations. Silver Lake Silver Lake recorded strong sales for the quarter, including 64,463 ounces (oz) of gold and 338 tonnes (t) of copper. Both the Mount Monger and Deflector operations in Western Australia performed strongly for the company, both well positioned to meet the top end of their respective guidance ranges. Silver Lake ended the quarter with cash and bullion of $342 million with no debt, and listed investments of $166 million. “Pleasingly, the YTD (year to date) performance has Silver Lake well positioned to build on its nine consecutive years of meeting sales guidance,” Silver Lake said . Red 5 The King of the Hills (KOTH) gold project in Western Australia was the winner for Red 5 in the March quarter, achieving production of 50,132oz. The amount marked the fourth consecutive quarter of production exceeding 50,000oz. While production was impacted by the combination of a planned SAG mill reline in March and unplanned downtime in February relating to a SAG mill lube system fault, reducing overall mill utilisation, all mines continued to perform well for the quarter.  Red 5 is forecasting higher production in the June quarter, with no further major shutdowns planned for the rest of the financial year. Source: https://www.australianmining.com.au/silver-lake-red-5-share-strong-results/

Rio Tinto (ASX, LON, NYSE: RIO) will carry out the rehabilitation of the closed Ranger uranium mine in Australia’s Northern Territory amid major delays and spiralling costs weighing on the project. The company’s majority owned uranium producer Energy Resources of Australia (ASX: ERA) halted activities at Ranger in 2021 , after 40 years of operation. The initial goal was to finish the clean-up and restoration of the site by 2026, with an estimated cost of around A$800 million ($520m at today’s rates). Following several delays and cost overruns, ERA warned investors in September that total expenses were now projected to “significantly surpass” A$2.2 billion ($1.43bn). It also said the program’s completion date would be postponed until after 2028. The world’s second largest miner said the agreement reached with ERA will see it take over management of the rehabilitation program immediately, but noted that full transition was expected to take about three months. “The ERA team has worked incredibly hard and made good progress rehabilitating Ranger,” CEO Brad Welsh said in the statement . “However, as the project moves into a new phase it will benefit from Rio Tinto’s global expertise in mine closure.” Rio’s Australia head Kellie Parker noted that taking over Ranger’s management meant the company could “directly provide more closure and project delivery experience and know-how to this critical task.” The mining giant said it would now focus on finalizing required studies and executing the necessary rehabilitation activities.  ERA, in which Rio Tinto holds an 86.3% stake, said that an updated timeline for the project will be disclosed when finalized at a later time. Source: https://www.mining.com/rio-tinto-takes-over-ranger-uranium-mine-site-cleanup/

Rio Tinto faced demands from shareholders at its annual meeting on Thursday to come clean on environmental issues, including water and biodiversity, as the company said it was committed to achieving an “impeccable ESG” performance. Mining, responsible for 4% to 7% of greenhouse-gas global emissions in 2020, is under the spotlight as a provider of critical raw materials needed for the energy transition, including electric vehicles and renewable energy infrastructure. “We are finding an economic pathway to reach our targets on decarbonization, in partnership with governments, customers and communities,” CEO Jakob Stausholm said at the annual meeting in London. Rio aims to reduce Scope 1 and 2 carbon emissions – direct emissions by the company and certain types of indirect emissions – by 15% by 2025 and 50% by the end of the decade. In its climate report last February, Rio said it would invest $5-6 billion in decarbonization projects between 2022 and 2030, down from a previous forecast of $7.5 billion. It spent $425 million in 2023. Chairman Dominic Barton told the meeting the company would maintain a focus on four objectives, including striving for “impeccable ESG credentials.” The hunt for minerals, including copper, lithium, nickel, cobalt and iron ore for the clean energy transition, has boosted the number of mining projects globally. This is driving deforestation of tropical rainforests, which are home to many species, including the great ape, a new study published this week by the German Centre for Integrative Biodiversity Research, the Martin Luther University Halle-Wittenberg and NGO Re:wild said. The study estimates that more than one-third of the entire ape population in Africa – nearly 180,000 gorillas, bonobos and chimpanzees – are at risk. The Anglo-Australian miner is developing part of the Simandou project in Guinea , one of the world’s largest untapped iron ore deposits, where more than 23,000 chimpanzees could be impacted by mining activities , the study said. Shareholders asked Rio directors about Simandou at the meeting. Barton told shareholders he and colleagues had met with four civil society organizations in Guinea in March. “They provided valuable feedback about our operations – what is working well, but also what we need to do better.” Investors at the AGM also questioned Rio about its Madagascar mineral sands operation, QIT Madagascar Minerals, which released water from the mine site into the surrounding environment due to heavy rainfall in 2022. Dead fish were found after the water release. The shareholders also asked about a letter sent to the company by UK law firm Leigh Day on Tuesday, where sixty-four individuals from the mine region alleged the waterways and lakes still contained high levels of uranium and lead. Sinead Kaufman, chief executive of Rio’s minerals division, in response highlighted an independent report commissioned by the company to investigate the fish deaths. “The report outcome was inconclusive and it said that we (it) cannot find any direct evidence on any heavy metals contamination that caused the fish deaths but also it cannot find any conclusion.” Reuters in February reported that a group representing UK pension funds, Local Authority Pension Fund Forum had raised concerns about the company’s water management at its Oyu Tolgoi copper mine in Mongolia and in Madagascar.  Rio Tinto said at the time it recognized the importance of water to its host communities and that it was “committed to driving effective water stewardship and enhanced transparency for stakeholders.” Source: https://www.mining.com/web/as-rio-tinto-strives-for-impeccable-esg-investors-raise-water-issues/