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Glencore update on copper production in Q1

Glencore announced that its own sourced copper production of 320,700 tonnes was 24,700 tonnes (7%) lower than Q1 2018, mainly reflecting reduced integrated metal production in Australia due to severe flooding in Queensland, impact of safety-related stoppages and smelter outages at Mopani and Alumbrera open cut depletion and sale of Punitaqui in H2 2018.

Africa
Own sourced copper production of 95,300 tonnes was 3% ahead of Q1 2018, reflecting the offsetting impacts of Katanga’s ongoing ramp-up, the re-optimisation of Mutanda’s mine plan (lower copper production) and the impact of safety-related stoppages and smelter outages at Mopani. Cobalt production of 9,900 tonnes was 3,800 tonnes (62%) higher than Q1 2018, noting that this includes 3,500 tonnes from Katanga, which is managing through a period of generally excess uranium content in its cobalt material, thereby constraining exports. Katanga made no cobalt sales in Q1 2019. From April 2019, the export of a limited quantity of cobalt, complying with appropriate regulations, was allowed to resume. Such resumption of exports remains subject to the relevant DRC export procedures, which include continued monitoring by the relevant authorities.

Collahuasi
Attributable copper production of 57,300 tonnes was 3,300 tonnes (5%) lower than Q1 2018 and 11,900 tonnes (17%) lower than Q4 2018, due to planned mill maintenance.

Antamina
Attributable copper production of 35,900 tonnes was in line with Q1 2018, but 4,000 tonnes (10%) lower than the previous quarter, mainly due to planned maintenance on the processing plant. Attributable zinc production of 24,700 tonnes was down 5,600 tonnes (18%) compared to Q1 2018, reflecting expected progression of the mine plan.

Other South America
Alumbrera depleted open-pit mining in Q3 2018 and Punitaqui was sold in Q4 2018. Accounting for such, copper production of 66,900 tonnes was consistent with the adjusted prior period.

Australia
Own sourced copper production of 34,200 tonnes was 13,600 tonnes (28%) lower than Q1 2018, mainly due to the severe flooding event in Queensland during Q1 2019. Mine production for the period was in line, such that the integrated refinery system is largely expected to catch up the negative production impact by the end of 2019.

Custom metallurgical assets
Copper cathode production of 113,300 tonnes and copper anode production of 123,400 tonnes were broadly in line with Q1 2018. Increases over Q4 2018 of 10% and 19%, respectively, mainly related to improved plant performance at Pasar and completion of planned maintenance at Altonorte in the previous quarter.

Source : Strategic Research Institute
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Glencore update on nickel production in Q1

Glencore announced that its own sourced nickel production of 27,100 tonnes was 3,000 tonnes (10%) lower than Q1 2018, reflecting severe weather in Canada, which impacted the timing of deliveries to the Nikkelverk refinery, and maintenance at Koniambo.

Integrated Nickel Operations
Own sourced nickel production of 13,400 tonnes was 1,700 tonnes (11%) lower than Q1 2018, reflecting severe weather in Canada that impacted supply of material to and from the smelter. Custom feeds were processed at higher rates to maintain refinery capacity, such that total metal production including third party sources was 1,200 tonnes higher than the comparable period.

Murrin Murrin
Own sourced nickel production of 8,700 tonnes was broadly in line with Q1 2018.

Koniambo
Production of 5,000 tonnes was 1,600 tonnes (24%) lower than Q1 2018, reflecting industrial action in January and various unplanned maintenance outages during the quarter.

Ferroalloys assets Ferrochrome
Attributable ferrochrome production of 402,000 tonnes was in line with Q1 2018.

Source : Strategic Research Institute
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BHP voor miljarden aangeklaagd na instorting Braziliaanse dam

(ABM FN-Dow Jones) BHP Group is aangeklaagd voor miljarden voor nalatigheid rond de instorting van de Fundao-dam in Brazilië in 2015, waarbij 19 mensen om het leven kwamen.

De Engels-Australische mijnbouwer ontving een massaclaim ter waarde van 5 miljard dollar van 235.000 Braziliaanse burgers en organisaties, vertegenwoordigd door het Britse advocatenkantoor SPG Law. Gemeenten, nutsbedrijven, indianenstammen en de katholieke kerk sloten zich aan bij de claim.

BHP was mede-eigenaar van het bedrijf Samarco Mineracao dat de dam exploiteerde. Volgens de claimanten wist BHP dat er toenemende zorgen waren dat de dam kon breken en was het concern ook verantwoordelijk voor de besluitvorming rond de exploitatie en het onderhoud van de dam.

De klagers verwijten BHP herhaalde waarschuwingen te hebben genegeerd en de productie van ijzererts steeds verder te hebben opgevoerd, waardoor het waterniveau verder steeg, ondanks de zorgen over de veiligheid van de dam.

Tom Goodhead, partner bij SPG Law zei: "BHP heeft zich schuldig gemaakt aan grove nalatigheid in zijn zorgplicht en de verlangde schadevergoeding staat geheel in verhouding tot de verwoesting die werd toegebracht aan de inwoners van Mina Gerais, Espirito Santo en Brazilië."

Door: ABM Financial News.
info@abmfn.nl
Redactie: +31(0)20 26 28 999

© Copyright ABM Financial News B.V. All rights reserved.
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Vale halts Brucutu iron ore operations

Vale announced that it was summoned today based on the monocratic decision by the Minas Gerais Court of Justice suspending the effects of the ruling by the Lower Public Treasury Court of Belo Horizonte, within the scope of the public civil action n° 5013909-51.2019.8.13.0024, filed by Public Prosecution Office of the State of Minas Gerais on March 18th, 2019, that had authorized the resumption of activities at the Laranjeiras tailings dam and the Brucutu mine. Consequently, wet processing operations at Brucutu were stopped following the above mentioned TJMG decision.

Vale reiterates that the Laranjeiras dam and all the other geotechnical structures of Brucutu have valid Declaration of Stability (DCE) issued by external auditors in March 2019, and is taking the appropriate measures related to the decision.

Vale reaffirms its 2019 iron ore and pellets sales guidance of 307-332 Mt, as previously announced, and informs that its current sales volume expectation is currently between the bottom and the middle of the range.

Source : Strategic Research Institute
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Caterpillar & WesTrac to help automate Rio Tinto’s Koodaideri iron ore mine

IM Mining reported that Rio Tinto and Caterpillar have agreed to work together to create an automated mine operation at the Koodaideri iron ore project, in Western Australia, that makes best use of data analytics and integration to enhance safety, optimise production, boost mining machine use and lower costs. The recently signed agreement will see Cat® and dealer WesTrac supply and support mining machines, automation and enterprise technology systems for the new mine.

Rio Tinto Iron Ore Chief Executive, Chris Salisbury, said: “We’re pleased to be partnering with Caterpillar and WesTrac, the regional Cat dealer, to help make Koodaideri the most technology-enabled and innovative mine in our Pilbara iron ore network. Technology is rapidly changing our mining operations as we harness innovation to make our operations safer, smarter and more productive. This extension of our partnership with Caterpillar and WesTrac represents an exciting step for our business.”

Koodaideri will deliver a new production hub for Rio Tinto’s iron ore business in the Pilbara. Construction work has commenced, and first production is expected in late 2021. Once complete, the mine will have an annual capacity of 43 Mt, underpinning production of the Pilbara Blend, Rio’s flagship iron ore product.

As mine construction advances, WesTrac will manage logistics of mining machine delivery and commissioning and play a key role in implementing technology solutions.

Last week, FLSmidth announced it would bring the latest smart 3D design to Koodaideri after announcing a contract win.

Source : IM Mining
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Vale's iron ore production in Q1 of 2019 dips by 28% QoQ

Vale iron ore fines production totaled 72.9 million tonne in Q1 of 2019, 28% and 11% lower than 4Q18 and 1Q18, respectively, mainly as a result of the impacts following the Brumadinho dam rupture and the stronger than usual weather-related seasonality. Vale pellet production totaled 12.2 million tonne in 1Q19, 23% and 5% lower than 4Q18 and 1Q18, respectively, mainly due to stoppages of pellet plants, following the Brumadinho dam rupture, as well as scheduled maintenances carried out in Tubarão and Oman.

Iron ore fines and pellet sales volume was 67.7 million tonne in 1Q19, 30% and 20% lower than in 4Q18 and 1Q18, respectively. The decrease when compared to 4Q18 was a result of the following effects:
(i) The usual weather seasonality (14 million tonne)
(ii) The impact of production stoppages following the Brumadinho dam rupture (7 million tonne)
(iii) New inventory management procedures at Chinese ports, which impacted the timing of sales revenue recognition (6 million tonne)
(iv) Abnormal rains impacting shipments from the Ponta da Madeira port in the Northern System (5 million tonne); which were partially offset by inventory drawdowns from Chinese ports in 1Q19 (3 million tonne).

Regarding the inventory management procedures mentioned above, according to previous practices, once a commercial agreement was reached, ownership of the product at our blending facilities was transferred to the customer and revenue was recognized, irrespective of retrieval of the ore by the customer. Consequently, the ore sold had to be segregated at the port awaiting retrieval, and therefore port operational capacity was constrained due to lack of stockyard flexibility. According to the new commercial practices, ownership of the product and hence revenue recognition is only granted upon cargo retrieval, which affects the timing of sales revenue recognition.

The share of premium products in total sales was 81% in 1Q19, remaining practically in line with 4Q18. Iron ore fines and pellet quality premiums reached USD 10.7 per tonne in 1Q19 vs USD 11.5 per tonne in 4Q18, mainly due to lower market premiums for Carajás fines, which were partially offset by the positive impact of new contract terms for pellets sales.

Production of finished nickel reached 54,800 tonne in 1Q19, 14.4% lower than 4Q18 and 6.5% lower than 1Q18. The decrease was mainly due to lower production from
(i) PTVI, due to the scheduled maintenance shutdown at the Matsusaka refinery, in Japan
(ii) VNC, due to the scheduled maintenance at the Dalian refinery, in China
(iii) Sudbury, due to timing differences in the nickel processing chain.

Copper production reached 93,800 t in 1Q19, 14.6% lower than 4Q18 and in line with 1Q18. Production decreased mainly due to lower feed grades and lower plant throughput at various operations.

Coal production totaled 2.2 Mt in 1Q19, 29% and 9% lower than in 4Q18 and 1Q18, respectively, as a result of extremely severe rains throughout the quarter.

Voor cijfers, zie pdf.

Source : Strategic Research Institute
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Rio Tinto’s Amrun to drive Australia’s global bauxite strength

Australian Mining reported that according to a Fitch report, Rio Tinto’s AUD 2.6 billion Amrun mine in Queensland is cementing Australia’s standing as the world’s top producer of bauxite. Part of Rio Tinto’s wider Weipa operation in Queensland, production started at Amrun in December 2018 and is ramping up to a full production rate of 22.8 million tonnes a year.

Another key Australian bauxite project mentioned by Fitch that will come online in 2019 is Metallica Minerals’ Urquhart project in Far North Queensland, which was granted a mining lease in January 2018. Metallica is yet to start production at Urquart, with construction of a haul road from the deposit to Cape York Peninsula continuing, but once completed the project is expected to produce 6.5 million tonnes of bauxite in 2019.

Metro Mining’s Bauxite Hills mine to the north of Weipa, while not mentioned in the report, recommenced production in April following a planned hiatus that started in December 2018 to counter the Queensland wet season. The company has a revised production target of 3.5 million tonnes for the 2019 calendar year. Metro is awaiting the results of a stage two definitive feasibility study (DFS) to ramp up Bauxite Hills production capacity to six million tonnes a year. This DFS is expected to be finalised by the end of the June quarter.

The report added that bauxite accounted for less than 5% of Australia’s mining value, but the country as a whole accounted for 28.8% of global output.

Fitch also cited Indonesia, Guinea and India as other countries that are key producers. Each of them is expected to drive global production through operational ramp ups and new projects that will come online.

Source : Australian Mining
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BHP digging for software to shift bottlenecks in its coal mines

IT News reported that BHP is trying to unclog worker congestion during shift changes at its Australian east coast coal mines that delay clocked on employees starting their jobs and create downstream productivity costs. BHP said that it's currently taking too long to dial into multiple data sources and systems that are needed to indicate if a person should or should not be able to access site when they swipe their card at a gate.

The push comes amid ongoing focus to make mines safe, efficient and productive by minimising downtime, delays and unscheduled stoppages.

That means latency in system access and communications is coming under increased scrutiny when large numbers of miners are on the move in the same way that mass transit gates have to operate quickly to prevent commuter queues forming.

In the case of BHP's bottlenecks, the underlying causes are believed to be a lack of integration between systems that hold compliance and personnel files, and bandwidth constraints at gated mine entrances that make it slow to run background system checks.

Source : IT News
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Samarco joint venture output to resume by 2H 2020 – Vale CFO

Reuters reported that Vale’s CFO Mr Luciano Siani told analysts on a conference call that it expects iron ore production at its Samarco joint venture with BHP Group Ltd to resume in the second half of 2020 after a tailings dam burst in 2015.

He told “Vale expects to receive the needed licenses to restart the mine by September of this year but that added investments will be required after that for the facility to resume operations.”

Source : Strategic Research Institute
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Vale financial results for Q1 of 2019 hit by Brumadinho tailing dam rupture

Three and a half months after the tragic rupture of Dam I in the Córrego do Feijão mine in Brumadinho (MG), the entire organization is still grieving and completely focused on making every effort to guarantee the safety of people and the integrity of its assets, while meeting the needs of those affected and mitigating the damage. Eduardo Bartolomeo, recently confirmed as Chief Executive Officer by the Board of Directors, said "I am committed to leading Vale through the most challenging moment in its history. We will work tirelessly to ensure the safety of people and the company's operations. We will never forget Brumadinho and we will spare no effort in alleviating the suffering and repairing the losses of the impacted communities. This focus on people and on safety will boost our operational excellence and will strengthen our license to operate, thus guaranteeing sustainable results through the supply of a high-quality product portfolio."

Brumadinho dam rupture financial impacts led to Vale's first negative EBITDA in history totaling the negative of USD 652 million in 1Q19.

The financial impact of the Brumadinho dam rupture on 1Q19 EBITDA was USD 4.954 billion due to:
(i) Provisions for the compensation/remediation programs and agreements (USD 2.423 billion)
(ii) Provision for decommissioning or decharacterization of tailing dams (USD 1.855 billion)
(iii) Incurred expenses direct related to Brumadinho (USD 104 million)
(iv) Lost volumes (USD 290 million)
(v) Stoppage expenses (USD 160 million)
(vi) Others (US$ 122 million)

Vale's EBITDA was also impacted by lower iron ore and pellets sales volume, 30% and 20% lower than 4Q18 and 1Q18, respectively. The decrease when compared to 4Q18 was a result of the following effects
(i) The usual weather seasonality (14 million tonne)
(ii) The impact of production stoppages following the Brumadinho dam rupture (7 million tonne)
(iii) New inventory management procedures at Chinese ports, which impacted the timing of sales revenue recognition (6 million tonne)
(iv) Abnormal rains impacting shipments from the Ponta da Madeira port in the Northern System (5 million tonne); which were partially offset by inventory drawdowns from Chinese ports in 1Q19 (3 million tonne)

Iron ore and pellets quality premium was impacted by lower Carajás market premiums and reached USD 10.7 per tonne in 1Q19, USD 0.8 per tonne lower than 4Q18. The lower Carajás market premium effect on the realized price was offset by higher benchmark prices and the positive effect of new contract terms on pellets sales.

Iron ore C1 cash cost in 1Q19 was USD 1.2 per tonne higher than 4Q18, mainly due to lower fixed costs dilution on seasonally lower volumes, while the impact of the halted operations following the Brumadinho dam rupture (USD 2.7 per tonne) was recorded as stoppage expenses.

Iron ore fines and pellets EBITDA breakeven was USS 30.3 per tonne, USD 3.0 per tonne higher than 4Q18, mainly due to the above-mentioned effects of: higher C1 cash cost (USD 1.2 per tonne), lower market premium (USD 2.5 per tonne) and higher stoppage expenses related to the Brumadinho dam rupture (USD 2.7 per tonne), which were offset by lower freight costs (USD 2.0 per tonne) and higher pellet contribution (USD 1.7 per tonne).

In Base Metals, 1Q19 EBITDA totaled USD 505 million, USD 87 million lower than 4Q18, mainly due to lower sales volumes and higher costs, which were partially offset by higher prices. Scheduled maintenance in PTVI and VNC impacted production and, therefore, sales volumes and fixed cost dilution.

Coal business EBITDA was negative USD 69 million in 1Q19, mainly as a result of lower market reference prices and lower volumes. Coal volumes decreased due to the severe rainy season in Mozambique, when compared to 4Q18, which led to lower dilution of fixed costs.

Net income was negative USD 1.642 billion in 1Q19, decreasing by USD 5.428 billion vs. 4Q18, mainly as a result of the above mentioned subsequent events related to the Brumadinho dam rupture.

Source : Strategic Research Institute
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Vale CFO says hopes to return to 400 million tonnes annual output in 2-3 years

Reuters quoted Brazilian miner Vale SA’s chief financial officer as saying that the company could restore production to a level of 400 million tonnes of iron ore within two to three years after a deadly dam burst curtailed activity at several mines. CFO Mr Luciano Siani said that quickly restarting production was not the company’s top priority after the Brumadinho disaster, for which the company was forced to take nearly USD 5 billion in writedowns in the first quarter.

He told “We’re not in a hurry. We’re working together with prosecutors and the authorities with a common objective: making sure that there won’t be any kind of resumption until there is absolute safety.”

When asked about dividends on a conference call with analysts, Siani also said investor payouts were not a priority at the moment.

Source : Reuters
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Trump Trade War - Trade Tension to shift aluminium exports to Europe – Rio Tinto

Aluminium Insider reported that Anglo-Australian metals titan Rio Tinto Group says the trade troubles between the United States and the People’s Republic of China and the corresponding drop in demand in the States will see the firm shift shipments of aluminium to European customers. Such was the message delivered by Rio Tinto CEO Jean-Sébastien Jacques after the company’s annual meeting on Thursday. Overall demand for the firm’s aluminium has not been impacted however, he assured investors.

Mr Jacques explained that “In the US, there is a slowdown in activities. I think it’s fair to say the automotive (sector) is slowing down slightly, the construction is slowing down. We are shifting some of our [aluminium] product from Canada to Europe, because there is some business case for it…or some other markets like Japan.”

Rio Tinto’s aluminium sales netted the firm USD 3.01 billion in 2018. Last year saw the firm churn out 3.5 million metric tonnes of primary aluminium.

Source : Aluminium Insider
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Rio Tinto enters CAD 30 million copper option with Canadian junior

Rio Tinto has entered an option agreement to earn up to 80% of Forum Energy Metals’ Janice Lake copper project in Saskatchewan by spending up to CAD 30 million on exploration. Forum's first drill hole at the project last year had intersected 18.5m at 0.94% copper and 6.7g/t silver from 58.5m. The junior had entered an agreement in February 2018 to acquire 100% of Janice Lake from Transition Metals Corp, for staged payments totalling USD 250,000 over four years, spending the same amount on exploration within six months and issuing 8 million shares.

Under the new option to JV agreement, Forum said Rio Tinto Exploration Canada could earn up to 51% of the project by spending USD 10 million in exploration, paying USD 490,000 in cash and paying the remaining USD 200,000 owed to Transition from the above agreement. Rio could earn a further 29% by spending an additional USD 20 million on exploration and paying USD 150,000 in cash to Forum.

Forum said that upon vesting an interest, Rio could then elect to form a joint venture.

Forum president and CEO Rick Mazur said that "Their expertise and proprietary technology will add significant value to potentially making an economic copper discovery at Janice Lake for our shareholders."

Forum also has a partnership with Rio Tinto Canada Uranium Corp, which has a 60% interest in Forum's Henday project in the Athabasca Basin, however the major did not have an exploration programme planned there this year.

Forum recently doubled the size of the Janice Lake copper project through staking to 19,312ha and said the full extent of the 52km trend of the Wollaston copper belt was yet to be explored.

Source : Mining Journal
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Rio Tinto receives green light from EPA for West Angelas expansion at Pilbara

Mining Global reported that Rio Tinto has received approval from the Environmental Protection Agency for its plans to expand operations at its West Angelas iron ore mine in Pilbara, Western Australia. The EPA has recommended the mine for environmental approval subject to conditions including the protection of national park water resources and threatened ghost bats. Rio Tinto propose to to expand open-cut mining at the West Angelas mine site, 130km north-west of Newman, by 4,100 hectares to 26,700 ha.

The West Angelas expansion is part of Rio Tinto’s Robe River joint venture with Mitsui and Nippon Steel & Sumitomo Metal to produce the premium Pilbara Blend iron ore and Robe Valley lump and fines in the coming years. Rio Tinto plans to begin construction this year ahead of a forecasted production start in 2021.

Rio Tinto Iron Ore chief executive Chris Salisbury commented: “The additional Robe Valley deposits will enable us to continue to provide a highly valued product to our long-term customers across Asia.”

As a result of roundtable discussions with proponent Robe River Mining Co Pty Ltd and the EPA – regarding the impact to Karijini National Park of pumping up to 14 gigalitres annually (GL/a) of groundwater for the proposal – the EPA has recommended a condition for Managed Aquifer Recharge (MAR) to maintain groundwater levels.

To further protect the national park from up to 12 GL/a of proposed surplus water discharge into Turee Creek East, and minimise the impact on riparian vegetation, the EPA recommended conditions including rigorous monitoring under an environmental management plan (EMP).

Source : Mining Global
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Brazil Vale to invest BRL 11 billion in dry iron ore processing over the next 5 years

Vale has invested nearly BRL 66 billion installing and expanding the use of dry processing, using natural moisture, in iron ore production in its operations in Brazil over the last 10 years. By not using water in the process, no tailings are generated and, therefore, there is no need for dams. Over the next five years, it is estimated that an additional BRL 11 billion in similar processing facilities will be spent. Today, about 60% of Vale's production is dry and the goal is to reach 70%. The natural moisture processing is used in the mines of Carajás, Serra Leste and the S11D Eliezer Batista Complex, in Pará, Brazil and in several plants in Minas Gerais. In Pará, in the Northern System, about 80%, of the almost 200 million tons produced in 2018, was through dry processing. The main Carajás plant, Plant 1, is in the process of conversion to natural moisture: of the 17 plant processing lines, 11 are already dry and the remaining six wet lines will be converted by 2022.

Serra Leste's treatment plants in Curionópolis and S11D in Canaã dos Carajás also do not use water in ore treatment. In S11D, for example, the use dry processing using natural humidity, reduces water consumption by 93% when compared to a conventional iron ore production project. The water saving is equivalent of supplying of a city of 400,000 for a year.

In Minas Gerais, dry processing increased from 20% in 2016 to 32% in 2018. Today, this type of processing is present in several units, such as Brucutu, Alegria, Fábrica Nova, Fazendão, Abóboras, Mutuca, Pica and Fábrica. Over the following years, the objective is to roll it out at other locations in Minas Gerais, such as the Apolo and Capanema projects, which are currently under environmental licensing.

Dry processing is linked to the quality of the iron ore extracted from mining. In Carajás, as the iron content is already high (above 64%), the ore is only crushed and sieved, so it can be classified by size (granulometry). In Minas Gerais, the average content is 40% iron, contained in rocks known as itabirites. To increase the content, the ore is concentrated by means of wet processing (with water). The tailings, composed basically of silica, are deposited with water in the dams. The high-grade ore resulting from the process can then be transformed into pellets at the pelletizing plants, increasing the added value of the product.

The mills that operate dry processing in Minas Gerais depend on the availability of ore with higher levels - about 60% - still found in some mines in the state. In order to achieve the necessary quality, and be incorporated into Vale's product portfolio, it is necessary to blend with Carajás ores, carried out at Vale's distribution centers in China and Malaysia. The process allows Vale to offer excellent quality ore which can be tailored to meet the needs of our clients.

Dry stacking

The blending of the product with natural moisture does not eliminate the need for humid concentration of the low-grade itabirite used in the production of pellets. However, to reduce the use of dams, Vale plans to invest approximately BRL 1.5 billion to implement dry stacking technology in Minas Gerais between 2020 and 2023. The technique filters and reuses waste water and allows the latter to be stored in piles, thus reducing the use of dams. The goal is to achieve up to 70% of the waste disposed in the coming years, but success depends on the improvement of technology and external issues, such as environmental licenses.

Today, Vale doesn't have a dry stacking operation that can deal with the production quantity especially in a region with high rainfall indices, such as the Ferriferous four-side [1] in Minas Gerais. The available dry stacking technology is used on a small scale around the world - up to 10 thousand tons of tailings produced per day - in desert regions or with low rainfall. In Minas Gerais, Vale's tailings production quantity is, on average, 50 thousand tons / day per unit. In 2011, the company developed a pilot project on the Cianita stack in Vargem Grande, after an investment of R$ 100 million. The studies were completed in 2018 and the technicians evaluated the geotechnical behavior of piles under rainy conditions. The next tests will be applied on an industrial scale at the Pico mine in the municipality of Itabirito.

Source : Strategic Research Institute
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BHP backs future of Nickel West to drive global battery market

Australian Mining reported that BHP has indicated it will keep the Nickel West business in Western Australia as the company looks to capitalise on the emerging global battery market. Speaking at a global metals, mining and steel conference in Barcelona, BHP chief executive officer Mr Andrew Mackenzie said retaining the company’s nickel operation “offers high-return potential. Decarbonisation, the electrification of transport, the future of work and food security are examples of strategic themes that we monitor. “For example, Nickel West [is] a future growth option, linked to the expected growth in battery markets and the relative scarcity of quality nickel sulphide supply.”

BHP had previously planned to sell the Nickel West division due to its failure to produce meaningful earnings.

However, in the past two years, the company has revealed plans for major expansion of the Western Australian operations.

Mr Mackenzie also emphasised the significant growth BHP has experienced since 2016, focusing on results surrounding increased volumes, reduced costs and keeping staff safe at work. This includes reducing net debt by USD 16 billion, reinvesting USD 20 billion in the business and returning over USD 25 billion to shareholders.

Mr Mackenzie noted the challenges the company could face in the future, including climate change developments and dramatic shifts in technology.

Source : Australian Mining
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Vale clarifies on the Gongo Soco mine

As soon as a movement was detected on the northern slope of a pit at the Gongo Soco mine in Barão de Cocais, Minas Gerais, paralyzed since 2016, Vale immediately informed the competent authorities and has taken a series of necessary measures to update the region's population about the situation in the pit and at the Sul Superior dam, which is approximately 1.5 km from the mine area. It should be noted that there are no technical elements so far that point towards an eventual slide of the northern slope of the Gongo Soco Mine, which could act as a trigger for a breach of the Sul Superior Dam. Even so, Vale is reinforcing the alert and readiness level for a worst-case breach scenario.

Additionally, following a recommendation from the Public Prosecutor's Office of Minas Gerais, Vale will ramp-up the dissemination of information on local radio and through the distribution of leaflets. Also, a new evacuation simulation will be held this Saturday, May 18, at 3pm to reinforce the training the population of Barão de Cocais previously received. The simulation will be conducted by the Civil Defense, with the support of teams from Vale.

Vale have also used mass media to publicize the situation at the Gongo Soco mine. National and regional press releases have also been issued, information was posted on company social networks (including sponsored posts to increase visibility of information in potentially affected regions), and reports sent to WhatsApps groups of the ZAS and ZSS communities.

The alert level of the Sul Superior Dam was raised to 2 on February 8. Since then, Vale has been maintaining contact with communities, local governments, civil defenses, companies and other competent bodies in the region. The company carried out an emergency simulation with residents of the Secondary Safety Zone (ZSS) of the municipalities of Barão de Cocais (25/3), Santa Bárbara (29/3) and São Gonçalo do Rio Abaixo (3/4). Seven Help Centers have been created in Barão de Cocais and are operating 24 hours a day.

Vale reiterates its commitment to the region's residents and will keep them informed about the next actions and events that involve their safety. The pit and the dam are monitored 24 hours a day.

The Sul Superior Dam has been at alert level 3 since March 22. On February 8, about 400 people from the dam's Self-Rescue Zone (ZAS) - communities of Piteiras, Socorro, Tabuleiro and Vila do Gongo - had been relocated as a preventative measure and were accommodated in temporary housing rented by Vale, consisting of hotels, regional guest houses, friend's houses etc., whilst respecting each family's preference.

Source : Strategic Research Institute
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Canada Rio Tinto Aluminium Wins Metals Company of the Year

Rio Tinto Aluminium, a global leader within the aluminum sector won the prestigious Metals Company of the Year award at the seventh annual S&P Global Platts Global Metals Awards program, which recognizes exemplary performance in 14 categories across the steel, metals and mining complexes. Honorees from four continents and 18 countries were heralded at the black-tie gala in central London. The event hosted by S&P Global Platts, the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets was emceed by CNBC's Julianna Tatelbaum and attended by nearly 200 industry executives.

Having become the first company to attain Chain of Custody certification from the Aluminium Stewardship Initiative in 2018, Rio Tinto Aluminium went on to commercialize aluminum in conjunction with coffee machine makers and coffee retailer Nespresso, proving that producing metal responsibly can also be profitable.

Mr Martin Fraenkel, President of S&P Global Platts said that "We congratulate Rio Tinto Aluminium on this impressive win and its brave leadership and innovation to produce aluminum in a sustainable way.Each of this year's winners and finalists deserves praise for their contributions to helping the metals industry become more efficient and innovative."

Rio Tinto Aluminium also won the 2019 Industry Leadership Award - Nonferrous. In reaching its decision, the Global Metals Awards' independent judging panel lauded the company's forward-looking approach to the production of aluminum on a sustainable footing, while delivering strong financial performance in a year of international trade uncertainty.

The coveted CEO of the Year award went to John Ferriola, Chief Executive Officer of Nucor Group, the USA's largest steelmaker. Judges were impressed by his "clarity of vision" and "leadership." They pointed to his shepherding of a USD 9-billion-plus investment in the company's future to grow the company's earnings power and become a low-cost steel producer, but also the strong financial performance and solid balance sheet he's overseen to make it possible.

Mr Gregg Mollins, Reliance Steel & Aluminum, received this year's Lifetime Achievement Award, with judges praising his "leadership, integrity and strategic vision". From his start as a warehouseman to eventually becoming CEO of one of the biggest metals service centers in North America, Mollins was faithful to a decades-long strategic vision of focusing on profit and inventory management, organic growth and an aggressive acquisition strategy.

Following are the 2019 S&P Global Platts Global Metals Awards winners:

Metals Company of the Year
Rio Tinto Aluminium

CEO of the Year
John Ferriola
NUCOR

Lifetime Achievement Award
Gregg Mollins
Reliance Steel & Aluminum

Corporate Social Responsibility Award
NMDC Limited

Deal of the Year
Commercial Metals Company

Industry Leadership Award – Nonferrous
Rio Tinto Aluminium

Industry Leadership Award – Precious Metals
Polyus

Industry Leadership Award – Raw Materials & Mining
Hancock Prospecting Pty. Ltd.

Industry Leadership Award – Scrap & Recycling
United Scrap Metal

Industry Leadership Award – Steel
Nucor

Physical Metals Service Provider of the Year
Reliance Steel & Aluminum

Financial Metals Service Provider of the Year
Singapore Exchange

Rising Star Award
Champion Iron

Breakthrough Innovation of the Year
ELYSIS

Source : Strategic Research Institute
voda
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Rio Tinto Awarded Contract Worth USD 30 Million To Onsite Rental

Australian Mining reported that Rio Tinto has awarded a contract worth close to USD 30 million to Onsite Rental Group to provide ancillary and light mobile equipment over the next three years. Onsite will provide on the ground support through its regional offices in Karratha, Tom Price, Newman, Port Hedland and its office in Perth. The equipment will support maintenance activities across Rio Tinto Iron Ore’s Pilbara mines and coastal operations and includes access platforms, telehandlers, lighting towers and generators. Onsite has committed to providing local employment opportunities, boosting Indigenous engagement, delivering apprenticeships and training, as well as establishing diversity programmes.

Rio Tinto Iron Ore managing director of supply chain services Mr Ivan Nella congratulated Onsite for winning the contract. He said that “Onsite is committed to employing local people and will provide ongoing training and development for their Pilbara-based employees. Rio Tinto’s procurement practices, and those of our contractors, play a significant role in the creation of sustainable and resilient communities, including job opportunities for local people, which ultimately benefits the communities where we operate.”

Mr Mike Foureur MD of Onsite said that the company was planning to increase local employment, particularly for service technicians based out of Newman and Tom Price, to service the contract.

Source : Australian Mining
voda
0
Global Miners Respond To Call To Publish Tailings Dam Details

Following an April 5 request by about 100 investors led by the Church of England Pensions Board and the Swedish pension funds’ Council on Ethics, who are working on a global standard for tailings dams, to provide information about the their tailings storage facilities, global mining giants BHP, Anglo American and Glencore have responded to a call last week.

In its presentation, BHP announced the creation of a dedicated tailings task force to drive an enhanced focus on internal dam management and to support the development of international best practice. It is also investigating new technologies to further mitigate current dam risks and eliminate future risk. BHP’s review identified no immediate concern about the integrity of any of its 67 operated dams, only 13 of which are currently active. 29 of the company’s operated facilities are upstream dams, of which five are active. The miner reported that 32 of its TSFs fell in the “high”, “very high” or “extreme” classification for hypothetical loss of life and damage to surround areas if a failure were to occur without any controls. Five of the active dams carry an “extreme” consequence classification, three of which are in Australia, one in the US and one in Peru.

Glencore said investors and communities had quite rightly called on extractive companies to increase their disclosure on TSFs following the Brumadinho disaster. CEO Ivan Glasenberg commented that the safety of its workforce and the communities living around its assets was a priority for the group. Glencore said TSFs had been part of the group’s catastrophic hazard evaluation programme for a number of years.

Diversified miner Anglo American confirmed the integrity of the 91 TSFs that it manages, as well as the 62 dams at nonmanaged JV operations. The company’s dams are kept to global safety standards, using advanced technologies such as satellite monitoring, fibre optics and microseismic sensors. Of the 91 TSFs managed by Anglo, 40 are active, 33 are inactive or in care and maintenance, and 18 are closed or being rehabilitated. In terms of tailings storage method, 39 of the TSFs use wet deposition while 52 use either dry-stacked or in-pit deposition.

Several other mining companies, such as Russia focused Polymetal, Brazil-focused Serabi Gold and Gold Fields have already disclosed their TSF management plans.

The International Council on Mining and Metals expects to announce an international standard for tailings facilities for its member companies by the end of this year, its top official said in Brazil recently.

Source : Strategic Research Institute
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