The 14th annual edition of the report explores the key trends facing mining companies as innovation accelerates driven by the need to meet decarbonisation, environmental, societal, and governance (ESG) goals.

Deloitte Australia Mining & Metals Leader Steven Walsh said the sector was facing one of the most transformative times in its history.

“The level of change and innovation we are seeing across the mining industry is accelerating. This change is being pushed by the demands and expectations of stakeholders across environment, society and governance, and is being pulled by the pandemic-driven adoption of new ways of work,” he said.

“The industry is embracing real opportunities to redefine itself, and to do so faster than many would have predicted a few years ago. Those that succeed in adapting and innovating will position themselves to lead a Mining industry in a new energy future and leave a positive social impact in their wake.

“The core objective of Mining —providing metals and minerals to downstream sectors for all of the myriad uses in society—will still hold in a low-carbon future, but the energy transition absolutely presents a rare opportunity for leaders to reorganise, generate new value, and forge partnerships to create a more responsible and attractive future for the industry.

“The way in which Mining organisations position themselves today in preparation for this more sustainable future could redefine competitive advantage over the next decade.”

Walsh said operators also needed to consider current and emerging work-related trends and technologies, and how people will interact with them, to have any chance of realising their full human capital potential.

“As new technologies are introduced, new roles with different skillsets are emerging, and traditional ways of working continue to be challenged. Mining organisations are redefining the importance and value of their people, and those who are most successful will adapt to and build on concepts such as remote working, flexible work arrangements and workforce wellbeing.”

The ten key trends for 2022:

1. Aligning capital allocation to ESG: While much of the focus today is on climate change and decarbonisation, companies should think holistically and ensure their capital-allocation decisions reflect their ESG commitments.
2. Reshaping traditional value chains: The energy transition is reshaping the traditional mining value chain, creating new challenges and opportunities for miners.
3. Operating in the post-COVID regulatory and tax environment: With commodity prices soaring in 2021, many countries are looking to regulations and resource nationalism to recoup lost revenue during COVID-19. Companies should learn how to operate in this new environment by demonstrating their value beyond tax – including their ESG efforts – to governments.
4. Embedding ESG into organisations: Operators should be functionally set up to respond to and address ESG-related opportunities, challenges, and risks, creating operating models to support their ESG commitments, and providing a structure for achieving their goals and a way to demonstrate how they are honouring their commitments.
5. Evolving mining’s world of work: For several decades, miners have found themselves starved of talent, but COVID-19, among other issues, has intensified this challenge. Facing this increasingly competitive labour market requires companies to position themselves as an attractive sector and employer, capable of meeting evolving priorities.
6. Establishing a new paradigm for Indigenous relations: Indigenous communities, including in Australia, are demanding a new type of understanding and connection with mining and metals companies that participate in their environment.
7. Continuing the journey toward innovation-led organisations: While the need for innovation has long been a key trend in mining, a number of recent factors should motivate organisations to intensify their efforts.
8. Unlocking value through integrated operations: Operators should make better use of digital transformation to drive effective integrated decision-making – more important than ever as the heightened focus on ESG measures places pressure on companies to manage not only their operational environment, but also social and regulatory challenges.
9. Closing the Information Technology (IT)- Operating Technology (OT) vulnerability gap: Mining companies’ cybersecurity has traditionally focused on functions like finance or human resources rather than on the ground at mine sites. However, with more devices being connected, some of the biggest cyber vulnerabilities are around operational technology, industrial control systems, and sensors.
10. Preparing operations for a changing climate: Mitigation is only one piece of the puzzle when it comes to climate change. Mining companies should prepare for the physical impacts a changing climate can produce across their businesses and operations as well as beyond their own sites.

The post Deloitte Unveils Trends Shaping Australia’s Mining Future appeared first on The Australian Mining Review.

Queensland’s mining industry is the state’s most valuable sector, accounts for 40% of all capital expenditure and directly employs nearly 65,000 people with nearly a quarter of them working at mines in North Queensland.

The North West Minerals Province (NWMP), centered around Cloncurry and Mt Isa, is one of the world’s greatest mining regions and holds about 75% of Queensland’s base metal mineral endowment including copper, lead, zinc and silver as well as major phosphate deposits.

The big players employ thousands with even the Mt Isa mayor, Danielle Slade, getting her first job straight out of school at Glencore’s Mt Isa Mines (MIM) where she worked for 25 years.

MIM – which includes George Fisher mine, Glencore’s Lady Loretta and Ernest Henry Mines – MMG’s Dugald River zinc mine, Capricorn Copper, South 32’s Cannington Mine, New Century Resources’ Century mine and Round Oak Minerals’ operations are the major mines currently operating in the NWMP.

“Mining is the backbone of the Mt Isa economy and is the reason for the city’s existence,” Ms Slade said.

“The mining industry accounts for more than 30% of the workforce.

“The next biggest industry is education at 7% followed by the hospital at 4.5%, so it goes to show just how vital mining is to our community.”

Ms Slade said there were several projects in the pipeline as the NWMP ushers in a new era of mining being driven by the quest for “new economy” minerals.

“These include some exciting advances made in exploring and testing for cobalt and rare-earth metals, which are needed for things like wind turbines, generators and batteries,” Ms Slade said.

“These are new-economy metals that will help strengthen and diversify the local mining industry and enable it to continue for many more decades to come.”

Queensland Mines Minister Anthony Lynham said the government had unveiled a $10m booster pack of grants to supercharge exploration, including bringing forward funds for the NWMP.

“Demand for the next generation of minerals is being driven by new technologies such as electric vehicles and renewable energy products, computers, smartphones and products for the medical, defence and scientific research sectors – and Queensland, especially the North West, is the place to get them,” Mr Lynham said.

Mt Isa to Townsville Economic Development Zone (MITEZ) CEO Glen Graham said there are several key enabler projects that will cater for the next phase of mining in the region, including the $1.5b CopperString 2.0 project, a transmission line that will connect the NWMP to the national electricity grid.

A CopperString report states there is $680b of known resources remaining in the Province, including $500b of “new economy” minerals such as copper, cobalt, gold, graphite, zinc, vanadium, gold and rare earth elements like rhenium.

Mr Graham said this had paved the way for new projects now underway or in the planning stages, such as Walford Creek Cobalt, Eva Copper and the Saint Elmo Vanadium Project.

He said Grand Central Industries’ multi-user intermodal freight terminal would also help unlock the full economic potential of the mining region.

Copper Mountain Mining Corporation (CMMC) completed an updated feasibility study in May for the Eva Copper project, which estimates total production of 1.5b pounds of copper over a 15-year mine life.

CMMC CEO Gil Clausen told the AMR the company is considering partnerships for the project and “would most definitely welcome discussions with Australian companies and entities”.

Mr Clausen said the company would be looking to hire locally, employing up to 460 people during construction and 300 when in operation.

Mr Clausen and Dugald River acting general manager Tim Akroyd both threw their support behind CopperString 2.0, which will drive down electricity prices in the region by 40% on average.

The high price of electricity and transporting products in regional Queensland are both impacting the competitiveness of mining operations across NWMP.

Mr Akroyd said the Dugald River mine, one of the world’s top 10 zinc operations owned by MMG Limited, was on track to produce about 2mt of ore a year for the next few years—more than the 1.7m originally forecast when the mine achieved commercial production in May 2018.

“It’s one of new projects that has come online which has demonstrated the continued value of the region,” Mr Akroyd said.

The mine had increased its expenditure on contracts with local and state-based businesses to just over $100m, representing 44% of their expenditure, in 2019, up from $96m, or 39%, in 2018.

Mr Akroyd said the mine has 250 employees and about 300 contractors but had rolled out a new incentives package and is working with Cloncurry Shire Council to entice more workers to the region.

Cloncurry Mayor Greg Campbell said there were hundreds of jobs going in the family-focused shire, which had earned Queensland’s ‘Friendliest Town’ award in 2013 and 2018.

“The opportunities to fast-track your career in this area are boundless,” Mr Campbell said.

“We have great schools, second-to-none health services and some of the best camping areas in the country.

“You can catch a 1m-long Barramundi five minutes from town, go water sking, stand-up-paddle-boarding, Mtain biking, horse riding and pretty much anything you consider to be a necessity in life.”

Mr Campbell said mining in the Cloncurry region, including the pursuit of “new technology minerals” would “play a big part in pulling the country out of recession”.

Apart from propping up the economy, he said the mining companies step up to the plate when the community faces hardship, with local mines playing a “critical” role in the council’s response to last year’s flood disaster, as an example.

A portion of Glencore’s Ernest Henry mine was used as a hay dump for the army to deliver hay to isolated cattle.

Miners rose to the challenge again when COVID-19 hit, employing a plethora of measures which has helped keep mine sites and the community free of the virus.

‘’They helped strengthen the temperature testing at the major airports at Townsville and Brisbane and we had the ability to do contact contracting through council very early on before the government app or anything was rolled out,’’ Mr Campbell said.

Glencore donated $725,000 towards finding a vaccine, as well as $45,000 to GeneXpert to enable local testing in Mt Isa and reduced wait times for results.

It’s testament to the huge social footprint Glencore has had in the area since Ernest Henry Mine became an integral part of the Cloncurry community 20 years ago.

EMH General Manager Aaron Harrison said even when the mine was in its infancy, it contributed more than $100m towards off-site infrastructure, including upgrades to Cloncurry air service and construction of a new terminal.

Mr Harrison said installation of power lines helped improve the reliability and capacity of Cloncurry’s electricity supply, while an extension of the mine’s pipeline transporting water from Lake Julius to Cloncurry helped secure the town’s future.

EMH had contributed more than $6m to the community in the past 10 years and supported countless projects at schools, medical centres and parks.

The decision in 2009 to transition from an open pit mine to an underground operation was another vote of confidence in the town, requiring a $589m investment to extend operations by 14 years until 2026, thus giving job security to more than 500 staff.

Just as new projects are coming online to seek out ‘’new economy’’ minerals, established mines like EMH will just as much a part of the new era of mining for the technological age.

‘’Our product gets used in a broad spectrum of ways, from the cables that feed electricity into our homes to the tiny connections in our computers and mobile phones, copper is an essential element in everyday life,’’ Mr Harrison said.

“Add to that copper’s extensive use in green technologies such as solar cells and electric cars, and it’s clear that copper has a vital role to play in the future of a sustainable world.’’

Glencore Queensland Metals CEO Matt O’Neill said MIM is one of Australia’s most iconic mining operations with a lease spanning 32,000ha and 52km from north to south.

‘’The site hosts the world’s largest zinc resources base, as well as one of the biggest networks of underground mine development in the world,’’ Mr O’Neill said.

It includes two underground copper mines (X41 and Enterprise), an underground zinc mine (George Fisher), a copper concentrator and smelter, a zinc-lead concentrator, lead smelter and zinc filter plant.

‘’Together these represent one of Australia’s largest industrial complexes,’’ Mr O’Neill said.

The Black Rock Cave project further develops the existing copper resource at MIM.

“In August 2020, the first production ore from the Black Rock Cave came online following the development of the mining levels, with the underground ore body expected to yield around 1.8mt of copper ore from 2020 to 2024,” Mr O’Neill said.

The company is in the final stages of reviewing the business case for the future of the copper smelter at Mt Isa and the Townsville Copper Refinery.

“These assets are facing significant competition from international smelters and refineries and high fixed costs like energy in Australia which negatively impacts their ongoing commercial viability,” Mr O’Neill said.

He said the Lady Loretta Mine, located 110km north-west of Mt Isa, had its first full year of production in 2019 and will produce about 1.6mt of high-grade zinc-lead-silver ore each year, which is transported to Mt Isa and blended with ore from the George Fisher Mine before processing.

He said Glencore was proud of the contribution Queensland Metals, which includes all mining, concentrating, smelting, refining and port operations, had made to the community.

‘’In 2019 that included providing work for 4720 people, working with 2790 suppliers and spending $1.6b on goods and services, with a substantial portion supporting regional businesses,’’ he said.

Operations at New Century Resources’ Century Mine continues to progress, with the mine re-established as a top 10 zinc producer globally, employing 350 personnel across its Lawn Hill mine site and Karumba Port facilities.

The mine has a forecast zinc production of 142kt for 2020 and is also continuing to recover and reprocess tailings.

The post Mining in NW Queensland: The lynchpin of the economy appeared first on The Australian Mining Review.

Now the state’s coal mining industry is about to enter a new era of growth, after the Queensland government opened up 7000sq km of land in its Bowen and Surat coal basins to fresh exploration activity for coal and gas.

Mining companies have been invited to stake their claim in the exploration territory to sow the seeds for the next generation of resources projects.

Queensland Member of Parliament for the Mackay constituency, Julieanne Gilbert, said the exploration program could result in significant job opportunities.

“Two areas in the highly prospective Bowen Basin have been earmarked for metallurgical coal – this Basin is already the world’s largest exporter of seaborne metallurgical coal in the world,” she said.

One of the exploration areas is 40km north-west of Moranbah, comprising 11 blocks covering 35sq km and is prospective for metallurgical coal.

A second area, covering 73sq km in 23 blocks and 60 km north-east of Moranbah, is prospective for thermal and coking coal.

Tenders seeking expressions of interest for the 2020 coal exploration program will open this month and close by May.

Land will be awarded to successful bidders by August this year.

Resources powerhouse

In the two-year period to September 2019, exploration investment in Queensland had risen 27pc, and the government has released a record 64,000sq km for exploration activity in its past three programs.

Queensland Natural Resources, Mines and Energy Minister Anthony Lynham said exploration investment was critical for Queensland to remain a resources powerhouse and to meet the world’s demand for resources.

The Queensland Resources Council, which represents coal miners and mining interests in the state, welcomed the land release for exploration.

QRC chief executive Ian Macfarlane said the organisation supported the move.

“A proactive exploration program secures tomorrow’s resource industry while supporting jobs, many of which will be in regional Queensland,” he said.

Bowen BasinMost of the state’s existing mining for coal is focussed on Queensland’s giant Bowen Basin, a 650km long coalfield that covers an area of up to 75,000sq km.

Stretching from Collinsville at its northern tip down to Moura at its southern end, the Bowen Basin coalfield is a hive of activity with around 50 coal mines.

Coal mining started around Collinsville in the 1920s and was joined by mines at Baralaba and Moura in the 1950s, before really taking off in the 1960s with a series of mining towns in Moranbah, Dysart, Middlemount and Blackwater.

Several household name companies mine coal in the Bowen Basin, including Adaro Energy and EMR Capital, Anglo American, Baralaba Coal, Batchfire Callide, BHP in partnership with Mitsubishi and Mitsui, Coronado Global Resources, Glencore, Idemitsu Australia Resources, Jellinbah Group, Peabody Energy, QCoal Group, Sojitz Coal Mining and Yancoal Australia.

They are soon to be joined by India-headquartered company Adani Australia, currently building a mine in the Galilee coalfield, one step over from the Bowen Basin on its western side, and virtually untouched in terms of coal mining.

Adani Australia has previously stated its first coal exports from its Carmichael mine for thermal coal should emerge in 2021.

Most of the coal mined in the Bowen Basin is coking coal, also known as metallurgical coal, which along with another major Australian export – iron ore – is used to produce steel.

In the past decade, China has emerged as a major consumer of Australian coking coal from the Bowen Basin, joining other industrialised Asian countries such as Japan, Korea, Taiwan and India.

Thermal coal is also exported from some Bowen Basin mines such as Glencore’s Rolleston, Idemitsu’s Ensham and TerraCom’s Blair Athol, formerly operated by Rio Tinto.

Rio Tinto completed its exit from Australian coal in 2018 with the sale of its Kestrel mine to Indonesia’s Adaro Energy and private equity manager EMR Capital.

Cook Colliery near Blackwater was put into care and maintenance in December after its owner ASX-listed Bounty Mining went into administration, partly attributing the move to lower international coal prices.

Further south in south-east Queensland, ASX-listed New Hope Group and Yancoal Australia operate some thermal coal mines in Queensland’s Surat Basin coalfield that export shipments through Brisbane port.

Rail system

Coal exports in the Bowen coalfield travel on a 2670 km network of railway lines that criss-cross eastern Queensland from mine sites to four major coal ports in the State.

The dedicated rail system for coal exports is called the Central Queensland Coal Network and is owned and operated by Australian company Aurizon.

The system is sub-divided into four rail systems which are essentially supply chains that connect mines in certain parts of the Bowen Basin to Queensland’s ports.

The largest of these is the Goonyella system that supports about 20 mines and runs west from Blair Athol to the port of Hay Point and its two coal terminals, BHP’s Hay Point dedicated facility and the multi-user Dalrymple Bay terminal.

The Goonyella line also has a northern spur running to North Goonyella, and a southern spur starting at Gregory.

Newlands is another rail system that serves the northern Bowen Basin from North Goonyella up to the northern port of Abbot Point.

Blackwater is the system for around 20 mines in the central Bowen Basin coalfield and runs from Emerald to Gladstone port and its two coal terminals.

The Blackwater system is being extended west into the Galilee Basin to its town of Alpha, the hub of the area’s new mining industry.

Hancock Coal has its Alpha thermal coal project in the region, and Waratah Coal, a 100pc owned subsidiary of Clive Palmer’s Mineralogy company, has its North Alpha project there.

Moura is the smallest system in the CQCN and starts at the Baralaba mine, taking in the Callide coalfield, and terminating in Gladstone.

Brisbane port in the south of the state is served by the West Moreton rail network that carries coal from Queensland’s southern Surat coalfield to the port’s coal terminal.

Queensland’s coal exports – both metallurgical and thermal – had a total value of $35.9b in the 2019 calendar year, according to the Queensland Treasury.

The post Coal in Northern and Central Queensland: Exploration aplenty appeared first on The Australian Mining Review.

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THE annual PDAC Conventions in Canada have been recognised as the premier mineral exploration and mining events for people, companies and organisations in, or connected with, mineral exploration.

In addition to meeting more than 1100 exhibitors, 2500 investors and 25,800 attendees from 132 countries, delegates can also attend technical sessions, short courses and networking events.

The convention, run by the Prospectors and Developers Association of Canada (PDAC), is held each year in Toronto, and is the event of choice for industry stakeholders.

The 2020 conference will be held between March 1-4 at the Metro Toronto Convention Centre, and already a packed program has been planned.

The even kicks off with a networking reception on Sunday, March 1, followed by an opening day reception.

As well, there will be hundreds of displays from the world’s leading mining companies and service companies.

The Keynote Program, Discoveries Of The 21st Century, will kick off proceedings on Monday, March 2, discussing key tier one deposits which have been discovered and put into production.

Three industry leaders – Mar Bristow (Barrick Gold), Joe Ovsenek (Pretium Resources) and Robert Friedland (Ivanhoe Mines) – will outline how this was possible, what the keys to success were, and what the keys for discovery in the future are.

A mineral outlook luncheon on the same day will be addressed by Barrick Gold chief operating officer Catherine Raw, who will discuss the return of major mergers and acquisitions activity in the industry, how it differs from that of the past, what it means for the mining industry as a whole, and the potential implications this has on investment and growth in the future.

As well as networking opportunities, Tuesday March 3 will also offer a session on bringing generalists back to gold.

For years, generalist investors have avoided the gold sector, citing poor capital allocation and subpar returns, even as gold prices remained relatively flat.

With gold prices rallying and retracing highs not seen in six years, what will it take for generalist capital to flow back into the sector? This session will explore the factors and metrics generalists consider when evaluating gold equities, as well as a discussion of the role of gold in portfolio diversification.

There will also be a discussion on liquidity and generalist interest in intermediate and junior gold companies.

Another session targets the expansion of international horizons and targeting a worldwide investor base.

The single most important driver in the mineral sector is the inflow of investor capital.

In a constantly evolving market, the one thing that makes most industry members lose sleep is wondering where the next investor dollar is going to come from.

Usual capital providers have been tapped and the conventional investment hubs (Toronto, New York, Boston, Montreal and Vancouver) are not what they used to be.

The panel includes individuals who focus on uncovering investors in non-traditional geographic locations, and who will discuss ways to bridge the gap in order to attract and sustain investors on a global scale.

Later in the day, delegates have the opportunity to attend a Mining for Diversity reception, which celebrates diversity and inclusion.

The theme for this year — Stronger Together — invites everyone to celebrate mineral and mining professionals and students who open doors and work hard to build a more inclusive industry.

The WIMC Awards will be presented, which recognise individuals who have been instrumental in enabling the increase of a diverse workforce and an inclusive workplace within the mining industry.

Various company presentations will be made on Wednesday, March 3, which will be capped off by the Awards Gala and After Party, where all delegates get the chance to rub shoulders with award recipients, C-level executives, financiers, brokers and mining developers.

PDAC president Felix Lee said the “unbeatable” networking opportunities were the main reason for attending the PDAC Convention in Toronto each year.

“Whether it’s making new business contacts, reconnecting with former colleagues, finding the next job, or browsing the latest investment prospects, people are at the centre of it all,” he said.

“And why wouldn’t they be? Mineral exploration and mining is a vast, international industry with a plethora of personalities— and he annual PDAC Convention is the perfect setting to see it unfold before your very eyes.”

Mr Lee said PDAC 2020 marks the 88th year for the event.

“While I’m no stranger to it, this will be my first year attending as president of the association—a role I’m honoured to have, especially during a time of transition and excitement for the sector,” he said. “Minerals and metals have always had the great potential to support the development of communities and nations looking to capitalise on their natural resources.

“Today, they are a key ingredient in the global movement towards a low carbon economy.

“Setting the bar high in 2019, we welcomed 25,843 attendees from 132 countries, which included more than 500 self-identified Indigenous Peoples and Canada’s Prime Minister, Justin Trudeau.

“It was also our first year expanding Trade Show North to meet the growing exhibitor demand.

“In addition to an exceptional line-up of programs, short courses, events, speakers and exhibitors, the International Mines Ministers’ Summit, a special platform for ministers who are responsible for mining around the world to come together, will return for its fifth year.”

Delegates who register by February 7 save 40pc on fees.

To stay informed of the latest news and information about PDAC 2020, visit www.pdac.ca/convention.

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THE premier African mining event will be bigger than last year, which saw more than 6000 delegates attend the exhibition, including about 600 investors and more than 1100 mining executives.

According to Mining Indaba head of content Tom Quinn, the showcase will unveil the latest technologies and cover the latest trends and topics.

He also said that because sustainability has many great touchpoints throughout the mining value chain, the issue will be spotlighted in most natural resources topics which are current in the industry and throughout the week at Mining Indaba.

“Navigating the legal and regulatory frameworks of many African countries is a topic of increasing relevance, so we are delighted to introduce our General Counsel Forum (GC Forum),” he said.

“Workforce health and safety, of course, is a perennial concern for all mining operators and will be discussed from various perspectives in different Indaba content streams.”

Given global growth in demand for lower-carbon electricity, the whole area of battery metals is of immense interest right now and there will be a dedicated Battery Metals Day during the Indaba week.

“One of the big growth areas in terms of operating practice and therefore reflected in our Indaba content is the challenges and opportunities presented by the fourth Industrial Revolution,” Mr Quinn said.

“Pulling the industry into the digital economy is no mean feat, and the pace of technological change is sometimes so fast that it can seem daunting and difficult to get a handle on.

“Therefore, we’ve devoted two whole days to our future-facing Mining 2050 content stream.”

Some of the high calibre speakers include Ivanhoe Mines founder Robert Friedland; Anglo American CEO Mark Cutifani, who will deliver the opening industry keynote focusing on the brand of mining, sustainability, and the role of technology; and Siemens Southern CEO Sabine Dall’Omo.

Mr Quinn said while it was not wrong to view the natural resources industries of Africa as the engine of the continent’s development, how this abundance of metals and minerals is developed is absolutely key.

“There is a tangible change in the way extractive industries are doing business – and are now expected to do business particularly by the institutional investors and private equity firms which are key to their ongoing capital investment,” he said.

“It is now necessary for mining companies to have ongoing engagement with their investors and with the communities in which they operate in order to mitigate the risk of investor or community backlash from lack of sustainable practices.”

The post Mining in Indaba: Africa rising appeared first on The Australian Mining Review.

IT’S been a hive of activity in the Hunter Valley over the past few months.

The region’s coalfields contain largely thermal and soft coking coal. Mines near the eastern edge of the basin are spread along the Hunter Valley from Newcastle in the south to Muswellbrook in the north, most of which are open-cut.

Both soft coking and thermal coal products are produced from mines such as Hunter Valley Operations and Bulga.

With the NSW Independent Planning Commission giving United Wambo the green light on August 29, the region will now be bolstered by another massive open-cut pit.

Meanwhile, Mount Arthur has welcomed a new chief executive in Adam Lacey, and the Newcastle Coal Infrastructure Group (NCIG) is expecting a record year of coal tonnage through the Port of Newcastle.

But it hasn’t exactly been smooth sailing for the region in recent months, with complaints about air pollution stirring locals to demand action from the Federal and State governments as pollution levels soared over 700pc above the national standard.

And the state continues to burn, with Whitehaven Coal the first big player forced to lower its guidance due to the conditions created by one of the worst fire seasons on record.

United Wambo

United Colleries, a 50:50 Glencore and Peabody JV, has pushed its $381m, 150mt, 23-year-minelife United Wambo mine one step closer to production after it was given the go-ahead by the NSW Independent Planning Commission (IPC).

United Wambo will be operated by Peabody, combining the Wambo and United coal mines, which had been under care and maintenance since 2010, to form one ‘Super Pit’ mine.

The JV partners told the IPC that the mine would create about 500 full-time-equivalent jobs and could extract about 10mt per year operating 24/7.

In a somewhat unprecedented move, the IPC imposed a first-of-its-kind condition on the mine that says any coal extracted from the United Wambo pit may only be sold to nations that have ratified the Paris Climate Agreement, or have policies in place to reduce greenhouse gasses.

Although the NSW Minerals Council called the conditions curious, it said that the approval was a positive step for the industry as a whole, and for the Hunter Valley’s economy.

But, as was expected, the approval was met with backlash, with some community groups raising concerns about noise issues, vibration and blasting, air quality and disruption to biodiversity.

However, the IPC determined that United Colleries had secured land-based biodiversity offsets which protected biodiversity in the locality, and that scope one and two emissions were minimised as far as practicable.

Newcastle Coal Infrastructure Group

The Newcastle Coal Infrastructure Group (NCIG) is expecting the largest throughput of coal tonnage through the coal terminal at the Port of Newcastle for 2019, as production at both new and established mines ramp up, with the operator expecting 57mt, up from 53-54mt from the previous three years.

The NCIG  operation, which commenced in 2010, services the Hunter Valley, Newcastle, Gunnedah, Gloucester, and the Western Coalfields of NSW.

Its main customers are Banpu Public Company, BHP, Idemitsu Kosan, Peabody Energy, Rio Tinto, Whitehaven Coal and Yanzhou Coal.

Chronic air pollution

In 2019, air quality standards breached the national standard of PM10 and PM2.5 levels by more than 700pc.

Concerns about air pollution in the valley came to a head on November 18, when a community meeting in Singleton was called to seek action on what residents called ‘chronic’ air pollution.

Singleton GP Bob Vickers presented information about the deaths in the region caused by air pollution, and local residents joined in to voice their concerns.

Dr Vickers said that action needed to be taken to remedy the situation.

“Air pollution is getting worse in Singleton and it is affecting people’s health,” he said.

“Close to 90pc of our coarse particle pollution comes from open but coal mines.

“We’re not going to improve this situation unless and until the state government makes the mines act.”

However, the State Government claimed the air pollution was a weather issue and not a political one.

It said that the bushfires and drought that had been raging across NSW were two major factors contributing to the poor air quality, however stopped short of commenting on the cumulative affect of dust from open cut mining.

NSW premier Gladys Berejiklian said that her government was taking the matter very seriously.

“The Government always works with parties to ensure good air quality and safety across the state, and of course the Upper Hunter is included in that process,” she said.

“Issues affecting health — whether it’s air quality, water quality, any other factors that might impact our citizens — our Government takes very seriously, and if there’s anything we can do more or better, we will.”

A burning issue

The Hunter Valley has also been the scene of much controversy in recent months, as devastating bushfires spread across the region: activity that has been blamed on climate change, which in turn has been caused by the reliance on fossil fuels, critics have claimed.

The Hunter Valley is the world’s largest export basin for thermal coal used in power stations, and the Illawarra escarpment contains Australia’s oldest mines for coking coal used in steelmaking.

This region was built on coal, which overtook iron ore to become the country’s most valuable export last year.

Electoral votes in the Valley, one of the few parts of Australia where coal is a major employer, were cast heavily towards Scott Morrison’s government in the 2019 election.

The government’s challenge is to counter opinion that climate change and increasing carbon burnoffs are causing fires, while aggressively trying to revive coal exports.

On a catastrophic fire day for NSW in November, the Liberal-National government had planned to push through a bill to weaken the state’s planning laws, in favour of coal and gas corporations.

A snap action outside NSW parliament that day drew hundreds of people from across the state, who made their opposition to the bill known and expressed support for the NSW Rural Fire Service, which is battling the flames with shortages of equipment and personnel due to budget cuts.

Whitehaven Coal was savaged by investors after it was forced to lower its guidance by 7-15pc as a result of the fires, knocking 11pc off its market capitalisation.

The company reported that it could not find qualified drivers for the heavy equipment on the mine, and that business-as-usual had been interrupted by dust, heat haze and smoke.

The post Mining in the Hunter Valley: A red-hot go appeared first on The Australian Mining Review.

QRC Chief Executive Ian Macfarlane said the sector already supports more than 316,000 jobs across the state, earns 80pc of Queensland’s exports and generates more than $5b in royalties for the State Government.

“Queensland’s resources sector is now supporting one in every seven jobs, and one in every five dollars for Queensland’s economy,” Mr Macfarlane said.

“That means from Burleigh Heads to Brisbane and from Mackay to Mount Isa, the resources sector is powering local economies and employing local people.

“This year’s figures are up substantially on last year, with both overall jobs and total value added growing by 18pc.”

Mr Macfarlane said that almost every family in the State has a connection to the mining and resources sector, either through employment or the economic windfall mining operations provide to regional areas.

“We proudly support regional communities, including by providing extra economic value for farmers during drought, and earlier this year the resources sector answered the call for help as floods hit North Queensland,” he said.

“The economic data shows the resources sector supported almost 14,500 businesses and 1395 community organisations over the past year.

“While the resurgent coal price has delivered a budget benefit for Queenslanders, there is significant growth in the metals category, such as copper, zinc and bauxite, which is up 26pc this year and is now worth $11.7 billion to the state’s economy.”

There are strong prospects for even greater returns and more jobs as Queensland’s world-class North West Minerals Province is developed.

“The resources sector will continue to be a long-term partner for both rural and regional Queensland to deliver ongoing investment and jobs in the decades ahead,” he said.

Winchester South

The State Government is now progressing approvals on the $1b Winchester South coal project near Moranbah that will support another $1b of investment and 950 jobs.

The project’s environmental impact statement (EIS) was released during September and Whitehaven can now work towards a draft EIS for public consultation as part of the approvals process.

State Development Minister Cameron Dick said the project could extract up to eight million tonnes of product coal each year for about 30 years.

“That type of production would contribute significantly to both the local and state economy, boosting our exports and supporting communities in the region,” Mr Dick said.

“These terms of reference follow public consultation and will ensure potential impacts on the natural, social and economic environment are appropriately considered.

In Queensland, coal is worth around a billion dollars a week or $52.5b annually, directly employs 34,667 people and supports 226,887 indirect jobs.

Assistant State Development Minister and Member for Mackay, Julieanne Gilbert, said the goal would be to employ staff from local towns in the region, including Moranbah, Dysart and Coppabella.

“The Queensland Government’s Strong and Sustainable Resource Communities Act bans large resource projects like this from employing 100 per cent fly-in-fly-out workforces,” Ms Gilbert said.

If approved, it’s estimated construction of the project would commence in 2021, with the first extraction of coal proposed for 2023.

Olive Downs

Pembroke Resources’ $1b Olive Downs metallurgical coal mine 40km south east of Moranbah is also progressing towards approval, and will support 500 jobs during construction and 1000 once operational.

Mr Macfarlane said Pembroke Resources’ announcement that the project had received its Environmental Authority (EA) for the project was good news for Central Queenslanders.

“The finalisation of the EA is an important next step to bring this project closer to a reality,” he said.

“This is more good news for Queensland’s coal industry.”

The project is close to ports, and Mr Macfarlane said the high-quality coal it will produce highlights the wealth of opportunities Queensland can generate from the Bowen Basin.

“The Isaac region is a heartland for our resources sector, creating so much of the wealth that benefits our state,” he said.

This project will be another valuable addition to Queensland’s world-leading resources sector.”

Byerwen coal mine

A $1.76b joint venture between QCoal Group and JFE Steel, the Byerwen coal mine in the Bowen Basin is expected to produce 10mt of coking coal each year, 1000 jobs during construction and 500 operational roles – and it has already contributed to the local community.

“Mines are part of the local community and during both construction and operations QCoal Group has kept track of its local spending and employment,” Mr Macfarlane said.

“Almost half of the spend during construction was in Queensland and in operations more than three quarters of the spend is in our state.”

More than half of the workers currently at the mine are from the Isaac, Whitsunday and Mackay regions.

“Each tonne of coal exported also delivers returns for all Queenslanders through royalty taxes that pay for schools, roads, hospitals and public transport,” Mr Macfarlane said.

“The Byerwen coal mine has a potential life of more than 50 years, which means a long-term pipeline of jobs and investment in North and Central Queensland.”

Exploration in Far North Queensland

QRC is pushing for more investment in exploration in the State, stating it is the key to long term growth.

“Investment in minerals exploration in Queensland shows there is huge potential for our great resources state,” Mr Macfarlane said.

“The most recent exploration data shows a 12pc increase in mineral expenditure compared to the same time last year.”

Since the same period last year, investment in gold exploration has increased from 62pc ($8.81m) to 80pc ($9.4m) while coal is up from 28pc ($8.4m) to 55pc ($13.5m).

Copper and selected base metals also experienced a rise in exploration investment in Queensland in the past year.

“Queensland is in the sweet spot to deliver more economic returns from resources, given our substantial mineral prospectively and a skilled workforce based in key regional centres alongside a network of supporting service industries,” Mr Macfarlane said.

“The QRC is keen to work with the Queensland Government on new incentives for exploration and resources development to make the most of our opportunities.

“Ongoing investment in exploration is the first step in reaping returns through more jobs, more investment in regional communities and more royalties in the years ahead.”

The post North Queensland Mining: Old king coal appeared first on The Australian Mining Review.

The industry has the backing of the Hodgman Liberal Government, which is promising to provide stability and certainty, and to assist miners moving forward.

Mr Barnett said that the Liberal Government was determined that there would be no more land-lockups, likening the current movement to the anti-forestry movement.

“More than half of Tasmania is already in reserves,” he said.

“And yet the Greens call for more.”

The resources industry employs about 5600 people in Tasmania, many of them from regional areas, and exported about $2.1b in FY19, making up more than half of Tasmania’s exports.

Mr Barnett said that mining contributes about $35m to the treasury each through royalties.

“And the flow on effects are significant,” he said.

“Rail and port services are utilised by the industry to transport the products.

“The need for stable and affordable energy provides the manufacturers with a significant advantage over the mainland states, and with the added benefit of our green renewable hydro and wind energy resources the attraction of our State for manufacturing and mineral processing is becoming more and more relevant.

“The industry helps to strengthen regional Tasmanian communities with valuable employment opportunities and skills and training programs, as well as hundreds of small businesses which benefit from the broader supply chain.”

The Green challenge and greenfields

On October 16, the Tasmanian Greens called for a prohibition on new thermal coal mines in Tasmania.

MP for Franklin, Rosalie Woodruff, said that the government’s announcement of a $50,000 enticement toward Midlands Energy had brought together a “breathtaking collaboration” of opposition to coal mining in the state.

“It has tapped into a depth of concern about what is happening in the global climate, a recognition of the urgent need for action and a real eye-watering sort of outrage, I suppose, at the ludicrous prospect of handing out thermal coalmining leases in this time, in this place,” she said.

“None of us in this room can say that we no longer understand that emissions from mining and burning thermal coal will add to the already dangerous level of global heating that is occurring.”

But the Liberal Government has pulled no punches when it comes to Green intervention in mining.

In its mining for the future policy, it states that “the Liberals believe that the best way to stop unlawful market attacks by Green groups is not to appease them; it’s to toughen the law to deter them”.

The policy aims to make protesting in a way that impedes access to a workplace an indictable offence with on-the-spot fines of up to $10,000 for individuals, and up to $100,000 for corporations that incite or encourage illegal behaviour.

Mr Barnett echoed this sentiment, calling the Greens’ demands a stunt.

“It was the Greens again ignoring the facts, scaremongering and wanting to ban any of our job creating industries, first forestry now mining,” he said.

“Coal mining is an important industry in Tasmania, and currently supports the production and export of over one million tonnes of cement by Cement Australia from its Railton cement manufacturing site.

“Coal has been continuously mined in Tasmania’s Fingal Valley since 1886.”

And on supporting new greenfield development, the government appears to be putting its money where its mouth is.

The Mining for the Future policy has put forth three initiatives that support the industry, and exploration in the state.

Firstly, it is pouring $1.4m over four years into a geoscience program that would provide new data and ideas to underpin and de-risk the next generation of mineral exploration activities.

Secondly, the Mining Sector Innovation Initiative will invest $1m over four years to address environmental, geoscience and natural hazard issues.

Thirdly, the Exploration Drilling Grant Initiative (EDGI) will invest $2m over four years, which is aimed at encouraging drilling of greenfields targets that could lead to new discoveries. To date, 21 successful applicants have been awarded grants.

If the designated projects are completed as planned, the grants totalling $960,000 will have contributed to 10.5km of drilling, and the total exploration investment would be about $2.9m with co-funding, assaying, mobilisation and de-mobilisation, and site rehab.

Tin and new projects

Tin mining has been a stalwart of the Tasmanian economy since the discovery of Mt Bischoff in 1871 by James Philosopher Smith.

There are a number of tin projects ready to go: Venture Minerals’ has called its Mt Lindsay project one of the biggest undeveloped tin deposits in the world, with a current JORC resource of 13mt at 0.7pc Sn equivalent, while also identifying a tungsten mineralisation.

Stellar Resources’ Heemskirk tin project is a high-grade resource across three deposits around Zeehan near Tasmania’s west coast.

The combined mineral resource is estimated at 6.35mt at 1.13pc Sn, and a further open-pittable deposit is located nearby at St Dizer.

My Barnett said that although tin had been consistently declining since the beginning of the year, at $24,000/t the price was robust.

“Tasmania has some of the world’s best unexplored tin resources,” he said.

“Tin remains an important commodity for the development of electronics, including electric cars, and technology going into the future.

“I see a great deal of investment upside and potential in Tasmania for the discovery and utilisation of our abundant tin resources.”

Aside from tin, there are other new mines coming on board in Tasmania, including the re-start of the Mt Lyell copper mine, the commencement of operations at the Rogetta iron ore mine, Venture Minerals starting production at the Riley iron ore mine, and Dundas Mining’s announcement of its intention to resume mining at the Avebury nickel mine.

The Bluestone Mines Joint Venture is moving towards a major investment in the recovery of tin and copper tailings at the Renison tin mine via the Rentails project.

The company intends to recover minerals from tailings storages that have accumulated over more than 100 years.

And Grange Resources has recently announced a 45pc increase in resources, and are developing an exploration decline at its Savage River magnetite mine as part of a feasibility study into taking mining underground.

Hellyer

In January, NQ Minerals commissioned its processing plant at its flagship Hellyer gold mine.

In May, the company reached the milestone of the first bulk shipment of precious metal pyrite concentrate which had a higher than forecast grade for both gold and silver.

Throughout 2019, the mine has consistently improved on production with Q3 increasing metallurgical recoveries from 36.5pc to 45.35pc in the lead circuit, and from 33.7pc to 42pc in the zinc circuit, these recoveries comparing with life of mine projections of 47pc for lead and 38pc for zinc.

Mr Barnett said that the company was doing a fantastic job of extracting minerals from the tailings facility at the Hellyer site.

“This project demonstrates the level of returns that can be generated from waste products, and also provides a valuable environmental benefit with the removal of potentially acid-forming materials from the local environment,” he said.

“We wish the company all the best in their ongoing endeavours at Hellyer, and look forward to other such opportunities being taken up in the future.”

The post Mining in Tasmania: Turning the corner appeared first on The Australian Mining Review.

In response, the Victorian state government budget 2019-20 will introduce a 2.75pc gold royalty from January 1, 2020, which will bring Victoria in line with other states and is expected to generate $56m.

Small miners will be exempt but Minerals Council of Australia Victoria branch executive director James Sorahan said the tax is reckless, poorly considered and will hurt regional communities and threaten jobs in a growing industry.

“Without changes, the royalty will have an unfair and significant impact on the operating costs of all gold mines in Victoria,” Mr Sorahan said.

“There is a serious risk that mines will close early and regional development will be handicapped through less investment.”

The MCA Victoria has proposed reforms to remove the unintended impacts by introducing; an exploration offset to encourage exploration to create profitable royalty-paying mines; a progressive royalty rate structure with a gold price floor to account for inevitable lean years of low or no profitability; staged implementation to reduce retrospectivity and; a structure to ensure revenue raised from the royalty is spent in the regions.

“Without these changes, royalty receipts will come at a cost to investment in exploration,” Mr Sorahan said.

The projected $16 million in revenue per annum from the gold royalty compares to over $300 million spent in Victoria by gold miners in 2018 on wages, goods and services, taxes and community grants.

Mr Sorahan said that the closure of just one mine would wipe out the entire benefit of the royalty revenue.

“The government appears oblivious to the fact that Victoria competes for investment in gold mining with every Australian jurisdiction in a globally competitive industry,” he said.

“Victoria’s gold industry has unique characteristics which require a more considered approach to the implementation of a gold royalty.”

Specifically, Mr Sorahan pointed to Victorian gold orebodies being typically narrow vein and nuggety with irregularly distributed deposits which are more difficult for mine planning and typically incur higher production costs.

Victorian gold mines are also underground which involves higher costs than open cut mining given that gold has higher processing costs than other commodities.

“Despite this, the Victorian Government wants to impose a higher gold royalty than WA – which produces 68pc of Australia’s gold,” Mr Sorahan said.

“The shorter reserve life of Victorian gold mines makes exploration the lifeblood of sustaining gold operations in our state.

“Gold mining requires ongoing exploration investment to keep replenishing ore reserves and resources to maintain mine life. “

MCA Victoria has urged the State Government to start again by listening to industry on the gold royalty to create incentives to encourage exploration and maximise mine life.

“Every cent of the gold tax should be reinvested in regional Victorian communities,” Mr Sorahan said.

Mineral resources strategy

The royalty seems at odds with the State’s Minerals Resources Strategy 2018-2023, which is focussed on helping grow investment and jobs in Victoria’s minerals sector and its initiatives to boost greater investment in minerals exploration.

The Stavely Minerals Exploration Initiative is once such program which aims to encourage investment in minerals exploration, with more ground in northern Victoria, with similar geology to the Fosterville gold deposit, expected to be released for minerals exploration in late 2019 via a competitive international tender.

While the Department aims to attract international companies to the State through these exploration initiatives, it’s taken an integrated approach including conducting geoscience programs to identify areas that have the most potential for mineral discoveries, understanding the local land uses, environmental, water, land access and other factors that are most important to the region’s local communities.

They include identifying and making available areas suitable for minerals exploration in a way that encourages the best exploration programs and explorers who are committed to working more closely with land holders and local communities before, and at all stages of their exploration programs.

The initiative also aims to engage with local communities, land holders, councils, water authorities and others in the region, to understand what’s important to them, and involved an extensive geoscience program named the Stavely Project which found that the Stavely Arc has the geological potential for new copper, gold and possibly other metals discoveries.

Then there is the TARGET Minerals Exploration Initiative, a $15 million strategy designed by the State Government to encourage investment in exploration for copper, other base metals and gold in Victoria (and create more jobs and new investments in regional Victoria).

The initiative includes government grants for companies to conduct co-funded minerals exploration programs for eligible minerals.

The grants cover up to half the cost of eligible exploration activities, which include geophysical surveys, drilling and sampling analysis and since 2016, 15 projects have been awarded more than $3.4m in TARGET grants.

In October 2018, a further five projects in the Stavely Arc in western Victoria were selected to share in $2.3m in TARGET grants (subject to being granted a minerals exploration licence), as part of the Stavely ground release tender.

However, securing a grant is a competitive process, with the State revamping assessment guidelines to raise the bar on who can access state owned minerals.

The new guidelines will make sure a company’s track record, and the records of its directors and executives, are examined when considering licensing decisions.

The goal is to provide greater assurance for farmers and communities that public safety, infrastructure and the environment will be protected when minerals explorers and miners work on both private and public land.

The changes will also benefit the sector by providing upfront and consistent information about how mining licence applications are assessed, making it easier for people with a good track record to apply.

These changes have been part of the process for assessing potential licensees for the Stavely Ground Release in western Victoria and will also be front and centre for the Lockington Ground Release in northern Victoria later this year.

Resources Minister Jaclyn Symes said the new guidelines centre around the main theme of the Mineral Resources Strategy – building a minerals sector that creates jobs, particularly in regional Victoria, and giving communities across the state confidence in the sector.

“We’re raising the bar to make sure our mining sector employs the most qualified and reputable people to access our state’s mineral resources with a strong focus on supporting the communities they work in,” Ms Symes said.

“We’re attracting people to our minerals and mining industry with a strong track record of integrity and collaborating with the community, to ensure we can keep supporting local economies and creating Victorian jobs.”

The post Mining in Victoria: Regulating the gold rush appeared first on The Australian Mining Review.