Social Engagement Prioritised in New Tailings Standard

By Vasanthie Maharaj, Franciska Lake, Jessica Edwards, Matthew Law

https://www.srk.com/en

PUBLICATION INFO

Author(s): Vasanthie Maharaj, Franciska Lake, Jessica Edwards, Matthew Law

Date: July, 2021

First Presented: GISTM series - Focus on Social

Type: Article

It's probably not by chance that the first principle of the Global Industry Standard on Tailings Management (GISTM) to “respect the rights of project-affected people” and to “meaningfully engage them at all phases of the tailings facility lifecycle”. This social focus reflects not only the potential vulnerability of communities close to tailings storage facilities (TSFs), but also aligns with the broader trend to integrate environmental, social and governance (ESG) factors into tailings management.

While social engagement with project-affected people is a well-established practice in various permitting, licensing and authorisation processes, the GISTM requires engagement that endures for the operational life of the tailings facility and into closure – which in turn implies the need for a social engagement plan for the lifetime of the mine and beyond. Such engagement should extend to all stakeholders, including regulators, local government, traditional authorities, landowners, community-based organisations, local communities and the broader public.

This engagement needs to form part of the mine’s Environmental and Social Management System (ESMS), which the GISTM in turn requires to be incorporated into – or to at least inform – the Tailings Management System (TMS). This presents one of the initial transitions that mining operations will have to make to comply with the GISTM and to ensure that on-site responsibilities are aligned, collaboration is fostered and the two sub-systems of an ESMS – the social and the environmental – are integrated with engineering aspects on site.

Integration of engineering, socio-economic and environmental aspects will require the coalescence of data and skills sharing between these spheres. In this way engineers will be better equipped to understand and anticipate socio-economic risks, and to disseminate information in a stakeholder-friendly format, to build trust and respect between mine operations and stakeholders.

One underlying concern that is key to TSF-related social engagement is the potential for, and implications of, catastrophic failure. It is critical for mining operations to understand community dynamics in order to prepare effective emergency response and recovery plans for these eventualities. This is just one example which social engagement can assist to address. Others include the identification of risk factors, planning for spatial or economic displacement, social vulnerability, resettlement and compensation, and livelihood restoration.

Aligning with GISTM requirements will include ongoing surveillance programmes that identify changes in social systems and valuable ecosystem services to communities. As part of impact identification and mitigation, there is also a need to establish direct mechanisms for stakeholders to share their unique knowledge and understanding of the area. Social engagement related to TSF management needs to build trust and stakeholder capacity, demonstrating a respect for human rights that informs management decisions throughout the TSF lifecycle. 

Specialists Must Join Hands To Meet New Tailings Standard


PUBLICATION INFO

Author(s): James Morris , Franciska Lake, Jacky Burke

Date: July, 2021

First Presented: GISTM series - Focus on Specialists

Type: Article

With the release of the Global Industry Standard on Tailings Management (GISTM) in August 2020, the foundation of this field has shifted, and the stakes have been raised. The standard sets a new bar for corporate responsibility and opens the door for significant improvement in performance. Among its demands is that mines engage with multiple spheres of influence when designing and managing tailings storage facilities (TSFs).

Once the exclusive domain of geotechnical, civil and water engineers, TSF management now involves a complex array of requirements and stakeholders – which the GISTM seeks to address. As the mining sector comes to terms with the implications of this standard, it is also clear that a TSF is no longer considered a temporary operational structure; rather, it must endure safely for centuries.

Over the years, TSF management has included the sciences of water, soil, bedrock and geohydrology, as well as the geological and seismic setting. It also deals with environmental issues such as stormwater and air quality, as well as long-term sustainability and governance. The field also accommodates the local and regional setting, including communities and regulators. Financial institutions and investors have recently weighed in on questions of safety and risk.

The GISTM embraces all these spheres, so achieving the requirements of this standard will require a comprehensive range of disciplines and skill-sets. The standard itself recognises this, especially in its discussion of the Integrated Knowledge Base – one of six topic areas which is outlined alongside Affected Communities; Design, Construction, Operation and Monitoring of the Tailings Facility; Management and Governance; Emergency Response and Long-Term Recovery; and Public Disclosure and Access to Information.

The TSF design and management remain key technical elements in the GISTM, which highlights the range of expertise, knowledge and data required for site characterisation. Generating this data requires geomorphologists, geologists, geochemists, hydrologists and hydrogeologists – not to mention civil and geotechnical engineers and experts in seismicity. With the detailed input from each of these disciplines, the necessary breach analysis required by the GISTM can be developed. This would consider failure modes, site conditions and slurry properties – in some cases predicting the consequences of failure.

The GISTM is essentially a high-level statement of intent – the ‘why’ and ‘what’ which precedes the more detailed guidelines and regulations. TSF owners’ in-house standards and procedures, as well as the recently released guidance and conformance protocols from the SAIMM, will define the ‘how’.

Having the necessary knowledge and data to safely build and manage a TSF is one challenge; using that knowledge effectively is another. The GISTM therefore points out that mines must use all elements of their knowledge base – “social, environmental, local economic and technical” – to inform their timeous decision making through the life-cycle of the TSF. There is also the role of emergency response and humanitarian aid to consider. This often demands a level of information sharing and operational integration that many mines simply have not yet achieved.

In many cases, the information that mines need is already available on site, although new systems of monitoring and analysis may also be required; the technology to do this is readily accessible, as is the expertise. Often, however, a paradigm shift is needed to overcome internal 'silo' thinking.

SRK Consulting has been involved in TSF design and management for decades, and has also been a pioneer in supporting clients with innovative solutions to their environmental and social impacts. Our teams embrace diverse disciplines and skill-sets, and have evolved the kind of multi-disciplinary approach and experience demanded by the GISTM.

SRK Consulting’s multi-disciplinary approach and capability positions it well to help mining companies to align their TSF practice with the requirements of the GISTM. Our experience covers a range of disciplines and sub-disciplines relevant to the new standard, from engineering and water management to ESG and disaster management. With our integrated approach, we ensure that inter-disciplinary teams work closely and effectively for optimal results. 

Click on the GISTM link

GISTM: Going beyond engineering.

Critical ESG issues in Asia’s Mining Industry


By Yuanhai (Andy) Li

Surface cracks and slope failures caused by underground coal mining

PUBLICATION INFO

Author(s): Yuanhai (Andy) Li

Date: July, 2021

First Presented: SRK Insights

https://www.srk.com/en

Type: Article


Asia is predominantly comprised of developing countries, including China, India, and other southeast Asian countries with high population density. Common environment, social and governance (ESG) issues associated with the mining industry in these countries include inconsistent regulatory enforcement, heavy metal pollution to water bodies, significant land disturbance, and resettlement problems. Mining companies are increasingly paying more attention to ESG, largely due to the ESG disclosure requirements of major stock exchanges, as well as lower hurdles to obtaining project financing from major international financial institutes with improved ESG performance. Mining companies now understand that their ESG strategy cannot be seen as a box-ticking exercise, and recognise that efforts to positively influence corporate governance may require additional expenditure.

There are a number of critical ESG issues relevant to the mining industry in Asia that should be considered by companies looking to improve their ESG performance. The following areas of concern should be considered a high priority.

Tailings dam safety status

Following the Brumadinho dam collapse in Brazil in 2019, international investors are demanding increased transparency around tailing storage facilities. This is the same for Asian-based investors. In addition to the demand for transparency, the expectations of ‘good industry practice’ have been elevated by initiatives, such as the Global Industry Standard for Tailings Management and Towards Sustainable Mining Tailings Management Protocol. These complement existing tailings standards to strengthen the governance and performance expectations of tailings facility operators, requiring zero harm to people and the environment, involving affected communities in decision making processes, and using management systems to manage and continually improve facility performance. The gap between good international industry practice and common practice in Asia is often wide. In particular, geotechnical hazards at operational, abandoned or closed dams are common. In this region, many tailings facilities are constructed using the ‘upstream method’ which can result in higher risks. Depending on the setting of the facility, a dam failure has the potential to cause property damage, pollution of water resources, and fatalities in the downstream area.

Emissions reduction or carbon neutrality

As defined by the world’s most widely used greenhouse gas accounting standards, the Greenhouse Gas Protocol, Scope 1 and 2 emissions of a mine site refer to direct emissions, such as the burning of fuel in haul trucks or other heavy machines, and indirect emissions from energy generated by third-parties, respectively. Scope 3 emissions are all other supply chain emissions, including greenhouse gases released when the commodities a miner extracts are used by their downstream customers. Scope 1 and 2 emissions are often relatively small for the mining industry compared to Scope 3. However, Scope 1 and 2 emissions still attract the most attention from investors and major stock exchanges. For example, the Hong Kong Stock Exchange requires compulsory disclosure of Scope 1 and 2 emissions but does not require disclosure of Scope 3 emissions.

Mining companies listed on major Asian stock exchanges are under pressure to set out feasible emission reduction targets and plans to achieve carbon neutrality, and increasingly questions are also being asked about Scope 3 emissions. Mining houses, particularly those in the steel supply chain, are beginning to act on investor expectations for Scope 3, such as the recent Memorandum of Understanding between BHP and China Baowu Steel Group to investigate low carbon steelmaking and carbon capture technologies.

Impact to local communities

The forced step-down of Rio Tinto’s CEO in 2020 after the destruction of two ancient Aboriginal heritage sites shows that ESG may be an issue bigger than multi-year high share price. Social issues are receiving scrutiny from both investors and regulators. In addition, the Equator Principles 2020 Version IV now explicitly references the United Nations Guiding Principles on Business and Human Rights, stating that human rights must be respected. It is important to note that local community issues are challenging in the Asia region, caused by high population density, long and complicated histories of conflict, diversified cultural backgrounds, and over-demand for shared water resources and land. A thorough and deep understanding of the local culture and obtaining free, prior, and informed consent from local indigenous people are critical for any mining activities.
Mine site post-closure land development

Given the high population density in Asia, successful mine closure or post-closure land development is essential to facilitate future development, such as when a city expands towards nearby abandoned or closed mine sites. Successful mine closure requires chemical stability (avoiding on-going heavy metals pollution caused by acid rock drainage), physical stability (removing geotechnical hazards) and social transitioning for employees and service providers dependent on the mining operation. However, to build warehouses, public parks, or industrial parks in the footprint area of mine closure – and therefore to significantly increase the value of the land – extra design and engineering work is required. In addition to the environmental regulations on mine closure, various host country building codes, geotechnical and foundation codes, civil engineering codes also need to be complied with. Therefore a full understanding of the technical requirements relevant to each jurisdiction and stakeholder consultation in each region are critical when beginning to think about post-closure land uses.

The Asian mining industry faces unique ESG challenges, particularly those related to dense population, alongside the pressure of economic recovery from the COVID-19 pandemic. Meanwhile, there is a growing focus on the mining sector’s ESG performance among the financial sector, making it increasingly critical for companies to recognise and manage ESG issues in line with internationally recognised standards.

Climate-Driven Impacts Present Risks to Infrastructure Constructed on Permafrost

By Christopher Stevens, in collaboration with The Northern Miner
DOWNLOAD PDF

PUBLICATION INFO

Author(s): Christopher Stevens, in collaboration with The Northern Miner

Date: April, 2021

First Presented: The Northern Miner

Type: Article

Mineral exploration and mining companies need to adopt a “proactive approach” to managing the climate-driven impacts on infrastructure built on permafrost, says Christopher Stevens, senior consultant at SRK Consulting (U.S.).  

Surface infrastructure, including roads, airstrips, buildings, and tailings dams often relies on permafrost’s frozen state for stability. These structures, however, are becoming increasingly vulnerable to ground warming that causes the permafrost to thaw, which can lead to ground settlement and soil creep.

“Permafrost is not a static condition; it's dynamic and constantly changing,” explains Stevens, a geocryologist with over 18 years of experience working on mining, transportation, and oil and gas projects in the U.S., Canada, Russia, and Greenland.

“It has complex temperature-dependent properties that alter the hydraulic and mechanical properties of the soil. At some sites, ground warming is degrading the permafrost, resulting in deeper seasonal thaw and changes in ground stability.”

Scientists and engineers widely accept permafrost is changing due to climate-driven impacts. Less understood is what these changes could mean for operating mines or the long-term closure of projects located in permafrost settings.

Click here to read the full article

Click here to read the original article from The Northern Miner

Changing With The Climate - The Challenge of a Century


By Chris O'Brien, Victor Muñoz, Samantha Barnes, and Philippa Burmeister
DOWNLOAD PDF


Photo credit: Mining Journal's diggingforclimatechange.com

PUBLICATION INFO

Author(s): Chris O'Brien, Victor Muñoz, Samantha Barnes, and Philippa Burmeister

Date: May, 2021

First Presented: Mining Journal | www.diggingforclimatechange.com

Type: Article

This co-authored article addresses critical risks and opportunities to the mining industry in developing a greener economy.

When the history of the 21st Century is written, the struggle against COVID-19 will take a chapter. After all, it has changed, if only temporarily, the way we live and work. The book, however, will focus on climate change and the action taken to not only save the planet, but humanity.

If history was to judge that action as meaningful and effective, it would show that policy and decision-makers of today in government, industry, and finance understood three critical points.

First, the climate does not respond to emissions immediately. If humanity ceased all greenhouse gas (GHG) emissions in 2050, as many countries have committed to, the planet will continue to warm and the climate will continue to change for about 30 years.

Second, unlike almost all other environmental considerations, the impact of GHGs is not local, it is global. The climate does not respond to emission intensity, only total emissions.

Third, the greatest impacts from climate change will be felt in the developing world, jurisdictions with developing infrastructure and burgeoning mining. Successful mining depends on contented stakeholders. Although climate change may open new opportunities, it will also increase risk in the industry as storms intensify and weather patterns destabilise.

This thought leadership piece is featured by the Mining Journal on Digging for Climate Change.

Download Full Publication

Mine Ventilation Tradeoff Study: Considering the Switch to Battery Electric Vehicles (BEV)

DOWNLOAD PDF


PUBLICATION INFO

Author(s): Nathan Wineinger

Date: June, 2021

First Presented: North American Mine Ventilation Symposium

Type: Presentation

EXPLORE BY TOPIC
Mine VentilationBattery Electric Vehicles

With the latest advances in battery technology, fast charging capabilities, and other technologies such as regenerative braking and more efficient battery electric systems, the use of Battery Electric Vehicles (BEVs) in the mining industry is becoming more advantageous. In 2019, SRK Consulting, performed a BEV analysis for a mine in Colombia. The purpose of this study was to consider an alternative ventilation system design for a previously completed feasibility study in which an all-diesel fleet was planned to be used for the mine. For this study, the mine requested that only the haul trucks and load-haul-dump loaders (LHD) be considered for conversion from diesel to battery electric. All other equipment would be left as diesel as in the previous study. This paper presents the ventilation assumptions which were made to complete this analysis and a discussion of the results. The results of the study showed significant reductions in the ventilation system power and infrastructure requirements with battery electric haul trucks and loaders compared to their diesel equivalents, but these savings depend on the changes implemented and the level of risk willing to be taken for a switch to BEVs.

Click here to download the full presentation

Click here to watch the video presentation

Opportunities to Reduce Risk by Mainstreaming Climate Change in Mining


By Philippa Burmeister
DOWNLOAD PDF

PUBLICATION INFO

Author(s): Philippa Burmeister

Date: May, 2021

First Presented: Mining Journal |www.diggingforclimatechange.com

Type: Article

EXPLORE BY TOPIC
Climate Change

Climate change remains a critical risk to a wide variety of sectors. To address the concerns many international protocols and agreements have been established to manage climate change and set internationally binding emission reduction targets. The policies and targets are continually being reviewed in line with the latest technical input, but the intent remains to reduce greenhouse gas (GHG) emissions and mitigate the impacts of climate change through adaptation.   

‘Tiger on my farm’: Indian coal mining hub brings new dangers for villagers

Reuters | September 8, 2021 | 8:36 pm Education Asia Coal

Tadoba Andhari Tiger Reserve. Credit: Wikipedia

The hillocks dotting the coal hub of Chandrapur are a green oasis in the central Indian region pockmarked with coal mines, where even rain puddles are black and a coal-fed thermal power plant belches smoke into the sky.


Yet locals live in fear of these hills – dunes formed with the sand removed from coal mines and covered by a blanket of green – as they have created a new habitat for tigers and other wild animals responsible for a string of devastating attacks.

Coal mining is more commonly criticised by environmentalists for polluting air and water, degrading landscapes and fuelling climate change than for creating new wildlife habitats.

But Santosh Patnaik, who manages programmes aimed at securing a green and fair transition with New Delhi-based Climate Action Network South Asia, noted the coal industry “has outcomes we don’t really know about yet”.

India is the world’s second-largest coal producer after China, yet supplies are falling short for the needs of its domestic industry and the government is ramping up production.


WITH A DENSE POPULATION OF 1.3 BILLION, INDIA IS VULNERABLE TO HUMAN-ANIMAL CONFLICT AS PEOPLE ENCROACH ON WILDLIFE HABITATS

The impacts are mostly negative for local communities, said Patnaik – from increased poverty and health damage to the human-animal conflict now happening in Chandrapur.

“Human interference is the main reason behind disturbance in the environment – and fossil fuel extraction is posing an existential threat to the entire ecosystem,” he added.

With a dense population of 1.3 billion, India is vulnerable to human-animal conflict as people encroach on wildlife habitats, with Chandrapur especially at risk as its mines are close to a forest, experts said.

Bandu Dhotre, a member of the wildlife board of western Maharashtra state where Chandrapur is located, said the area had seen leopards, bears and now tigers, whose numbers are rising in tandem with species protection efforts.

“They have a conducive habitat, access to water and prey. But people are not foreseeing the future… This will be a big problem,” said Dhotre, founder and president of environmental organisation Eco-Pro, pointing to the hills on a rainy morning.

Chandrapur is home to the Tadoba Andhari Tiger Reserve – one of 50 such reserves in India – and its tiger and leopard populations have doubled to about 85 and 105 respectively in the last decade as conservation efforts bore fruit, officials said.

There is no mining activity in the forest or its buffer zones but mines and power plants have been built on the natural corridors the animals once used to move between forest areas.

Meanwhile, the tree plantations mandated by India’s environmental laws on the dunes – spread over about 2,300 acres (928 hectares) in Chandrapur alone – have inadvertently provided a new habitat for migrating wild animals as their numbers rise.

Villagers living near the hillocks, called overburdens by the mining industry, dare not venture out alone or after dark following attacks on them and their livestock in recent months.

“We feel scared all the time. We have lost cows and buffaloes to tiger attacks on our farms,” said Pankaj Dhingare, a farmer and council member in Khairgaon village, which is located next to an overburden.

“We are bearing losses, when the miners are making a profit. They should compensate us financially, or at least give us work,” said Dhingare, showing a video on his phone of a tiger on a village road the previous night

Not afraid of humans

Less than a mile from Khairgaon, Nisha Umashankar Dandekar, 38, spoke softly of how a leopard pounced at her five-year-old a year ago, digging its claws into her tiny neck and killing her.

“I fainted when I saw her. They took her to the hospital, but she was gone,” said her mother. “This is such a dense forest. I keep thinking if I had not allowed her to play that day, she would have been alive.”

Dandekar lives in the residential complex of the Chandrapur Thermal Power Station (CTPS), its rain-soaked streets lined with vegetation and sign-boards with tiger images, cautioning residents to stay alert.

Following Dandekar’s daughter’s death, trees and shrubs were cleared, street lighting improved and cameras installed to capture animal movement, said CTPS officials.

“This could be a first in the world that tigers are moving in industrial premises. They are moving even in the thermal power plant,” said chief engineer Pankaj Sapate. “We don’t know what to do.”

Local environmentalists said they had only heard stories of tigers and leopards as children.

“Now the tiger is sitting in people’s farmlands,” said Suresh Chopane, president of the Green Planet Society, a Chandrapur-based nonprofit.

“Half the tigers now live in the overburdens. And these tigers are used to jeeps and cars and human presence. They are not scared.”

‘Black gold’

Locals refer to Chandrapur as a hub for “black gold” due to its rich coal reserves – but the name is losing its sheen as livelihood problems mount amid the wildlife attacks.

Daily wage worker Sunil Govinda Lengure, 32, resents the hillock facing his village after a bear attacked him in February, tearing at his skull.

His head still hurts when he tries to lift heavy loads.

“I used to earn 300 rupees ($4) a day but I am unable to do any work now,” Lengure said, standing in front of his one-room shack where he lives alone.

He received 5,000 rupees from local officials to help with his treatment, even as another bear-attack victim in his village was forced to sell his cattle to raise money for his treatment.

In Payali Bhatali village, meanwhile, Suresh Shankar Khiradkar, 59, sat on a cot, his face a mesh of gashes after losing one eye to a bear attack on his farm last month.

His family blamed his predicament on the mining in their backyard, as their village is near a sand hill whose rehabilitation has been stuck in disputes for about a decade.

Manmade habitat

Concerns run deep in Chandrapur, as officials said animals born in manmade habitats could not adjust to forests, meaning a plan to relocate them to parks or tiger reserves may not work.

N.R. Praveen, Chandrapur’s chief forests conservator, said those settled in the overburdens would not find the cattle and prosopsis trees they now rely on for food and shelter elsewhere.

Officials with state-run Western Coalfields Limited (WCL) – which operates 10 mines in Chandrapur – said coal extraction from its four highly productive opencast mines required huge amounts of sand and rocks to be removed and dumped 2-5 km away.

The trees planted on the resulting dunes help curb soil erosion and air pollution, they added.

WCL did not respond to questions on what steps it is taking to prevent human-animal conflict, but officials speaking anonymously said the issue was not related to mining activity.

Dandekar, meanwhile, moved to another block a few months after her daughter’s death but still spots wild animals often.

“We can stay alert, but children will play, right?” she said, calling her 13-year-old son in from the terrace. “This should not happen again, to anyone.”

($1 = 74.2310 Indian rupees)

(By Roli Srivastava; Editing by Megan Rowling)

Li-Cycle to build EV battery recycling plant in Alabama
Reuters | September 8, 2021 

Construction of Li-Cycle’s Spoke & Hub facility. Credit: Li-Cycle Holdings

Li-Cycle Holdings Corp said on Wednesday it will build a recycling facility in Alabama to process a rising volume of lithium-ion battery scrap in the U.S. Southeast for reuse by electric vehicle manufacturers.


The facility, to be built in Tuscaloosa, aims to tap into an increased focus from EV and cathode manufacturers across the U.S. Southeast, including Daimler AG’s Mercedes and others, on the so-called circular economy in order to recycle battery metals and rely less on new mines.


Roughly 5% to 10% of the EV battery manufacturing process produces waste that the Alabama facility will primarily recycle, said Ajay Kochhar, Li-Cycle’s chief executive.

“In the past 5 months alone there has been this emergence of additional battery cell manufacturing plants in the U.S. southeastern corridor, and there’s really no recycling solution in that region yet,” Kochhar said.

Li-Cycle said it has partnered with Univar Solutions Inc to collect battery scrap, including a Mercedes plant also in Alabama, and supply it to its recycling facility, where it will be broken down into component metals.

The Toronto-based company plans to spend about $10 million on the facility, which is expected to open by mid-2022 and will be its fourth on the North American continent. Li-Cycle also operates recycling facilities in Ontario and upstate New York. Earlier this year the company announced plans to build a recycling facility in Arizona.

The facility will initially process 5,000 tonnes per year of battery material, bringing the company’s total capacity to about 25,000 tonnes. In time, the Alabama facility’s capacity could double, Kochhar said.

(By Ernest Scheyder; Editing by Richard Pullin)

TEAL PERHAPS; A MIX OF BLUE & GREEN

BP looks to repurpose former oil refinery site for green hydrogen production

Energy transition: BP is looking to use the site of its old oil refinery in Kwinana, Western Australia, as a renewable fuels plant that will include the production of green hydrogen Photo: BP

Feasibility study forms part of wider plan to develop a renewable fuels plant at Western Australia's largest industrial cluster

UK supermajor BP is looking at producing green hydrogen at the site of a recently closed oil refinery in Western Australia.

The company revealed Tuesday it is carrying out a feasibility study into the production of green hydrogen at the Kwinana site, south of Perth, which ceased operations as an oil refinery in March this year.

The study forms part of BP's plans to repurpose the former refinery site as an integrated energy hub, with the company looking to develop a renewable fuels plant at the site, also producing sustainable aviation fuel and renewable diesel.

The Kwinana Industrial Area is the largest industrial cluster in Western Australia, with BP claiming the green hydrogen feasibility study will help progress the decarbonisation of industrial processes in the area by integrating green energy alternatives for existing industrial uses.


Demand remains key hurdle to hydrogen's upstream investmentRead more

“For more than 65 years, BP’s Kwinana site has played an integral role in the Kwinana Industrial Area, which is comprised of a diverse range of high emission producing industries, including mineral refineries, power stations, chemical plants and cement works,” BP Australia president Frederic Baudry said.

“We are excited by the role BP’s Kwinana energy hub will play in close collaboration with our partners. BP has a strong track record as an energy provider to the industrial area and has readily accessible land, existing infrastructure including storage and distribution facilities, and a team with extensive operational capabilities and experience.”

The feasibility study is being carried out in partnership with Macquarie Capital, with the company’s co-head for Australia and New Zealand, John Pickhaver, adding: “We are delighted to be partnering with BP in this project as part of our greater commitment to supporting the transition to a low-carbon economy.


'Regional powerhouse': BP sees Australia as ideal location for large-scale green hydrogenRead more

“We believe Australia — and Kwinana in particular — has a number of use cases that support a meaningful green hydrogen industry.”

The Western Australian government is also backing the feasibility study with a A$300,000 (US$223,498) contribution.

“BP's proposal to convert the old Kwinana oil refinery into a green hydrogen hub will help to revitalise Kwinana and bring this facility into a low-emissions future,” Western Australia’s Hydrogen Industry Minister Alannah MacTiernan said.

"We've seen real success off the back of previously funded studies, including our A$375,000 investment into feasibility of ATCO's Clean Energy Innovation Park in early 2020, which went on to secure a A$28.7 million Australian Renewable Energy Agency grant."

The feasibility study at the Kwinana site follows hot on the heels of the findings of a study completed by BP earlier this year which found the production of green hydrogen and green ammonia using renewable energy was technically feasible at scale in Western Australia.(Copyright)

Biden administration waiting for legal opinion before Twin Metals decision

Reuters | September 8, 2021 |

Sunset over Pose Lake, a small lake located inside the Boundary Waters Canoe Area Wilderness. (Image: Wikimedia Commons)

U.S. Agriculture Secretary Tom Vilsack said on Wednesday he is waiting for a legal opinion before deciding whether to approve Minnesota’s Twin Metals copper mining project, which labor unions support but environmentalists strongly oppose.


“We continue to wait for the Department of the Interior. They have to issue a legal opinion before we know what direction we need to take” at the Agriculture Department, Vilsack told a White House news conference.

The U.S. Forest Service, part of the Agriculture Department, controls the surface land at the site. The U.S. Bureau of Land Management, part of the Interior Department, controls the underground copper deposit and must approve plans to extract minerals.

Interior Secretary Deb Haaland declined to discuss the project when asked at a congressional hearing this year by U.S. Representative Pete Stauber, a Minnesota Republican whose district includes the mine site.

The proposed underground mine would, if built, be a major U.S. copper supplier as President Joe Biden aims to build more electric vehicles, which use twice as much of the red metal as those with internal combustion engines. Opponents fear the project would permanently mar the Boundary Waters Canoe Area Wilderness on the U.S.-Canada border.

Twin Metals has said the project can be constructed safely and in a way that boosts the region’s economy.

Vilsack had blocked the Twin Metals project when he served as agriculture secretary under President Barack Obama, only to see that decision reversed by President Donald Trump’s administration.

Vilsack in June said that as part of his deliberations he was trying to balance environmental concerns and economic potential.

Twin Metals, controlled by Chile’s Antofagasta Plc, said in a statement it “looks forward to continuing to constructively engage the administration and advance the environmental review of the project.”

Vilsack has the power to block mining in the region for 20 years, though a bill introduced in the U.S. Congress this year could permanently ban it.

(By Trevor Hunnicutt and Ernest Scheyder; Editing by Matthew Lewis and David Gregorio)

Potash majors interested in reviving Argentine mine, owner says

Bloomberg News | September 8, 2021 | 

Rio Colorado potash project in Mendoza province. (Image from archives)

Argentina’s Mendoza province is in talks with some of the world’s top producers of potash to revive a mine that requires an investment of as much as $5 billion.


Mendoza — better known for its exports of Malbec wine than its vast mineral wealth — took over the Rio Colorado potash project several months ago after years of wrangling with Vale SA. The Brazilian company pulled the plug in 2013 after spending $2.2 billion to build almost half the mine.

Provincial officials have since spoken to several would-be partners to finally put Rio Colorado into production, signing non-disclosure agreements with five of the world’s biggest producers of the crop nutrient, said Emilio Guinazu, director general of province-owned PRC SA, which holds the asset.

Luring investment to Rio Colorado 15 years after Rio Tinto first sought to develop it would be big win — not only for Mendoza, which has struggled to spur new mines because of environmental opposition, but for the whole country, where onerous business rules including capital controls have scared off investors. Guinazu says now is the time because prices of potash are rallying along with other fertilizers as strong demand from farmers collides with a slew of supply disruptions.

“A window of opportunity has begun to open that we don’t want to waste,” he said in an interview Wednesday.

U.S. sanctions against Belarus potash producers are jeopardizing mine expansion there, while pandemic- and hurricane-related shipping disruptions are slowing fertilizer trade. A decision last month by BHP Group to proceed with the $5.7 billion Jansen project in Canada after years of hesitation underscores the market’s buoyant long-term prospects.

Rio Colorado has potential to produce 4.5 million metric tons a year, similar to Jansen, which would require roughly $5 billion. This version of the project needs 500 miles of train track to be built or upgraded to get the potash to an Atlantic port for export to markets like Brazil.

A more likely scenario, Guinazu said, is to attract $1 billion for annual output of 1 million tons, which could be transported by truck, though Mendoza would be prepared to scale down even further just to get the project off the ground. An investment of $200 million would produce enough fertilizer for Argentina and its small neighbor Uruguay, he said.

The province wants to find an investor that would take a majority stake and operate the mine within 18 months. It’s currently looking for an adviser to guide the search.

Because of risks in Argentina, where markets are often intervened, investors need a strong stomach. But they can also be drawn in by specially-designed benefits. For instance, federal and provincial governments are in talks for legislation for oil and gas drillers in the Vaca Muerta shale patch to be able to increase sales abroad and to free some of those export revenues from capital controls. A similar mechanism is under discussion for miners, Guinazu said.

“Without a doubt, some of the benefits in the oil and gas bill are being studied for mining too,” he said.

(By Jonathan Gilbert)

NOT YET CONSTRUCTED!

Drill challenges at Arctic copper project won’t influence timeline, says Trilogy Metals

TIME TO STOP IT

MINING.COM Staff Writer | September 7, 2021 | 

A drilling contractor is facing weather and staffing challenges at Trilogy’s Arctic copper project. (Image courtesy of Trilogy Metals.)

Trilogy Metals (TSX: TMQ; NYSE America: TMQ) says lower than expected drilling productivity due to adverse weather and staffing shortages at its Arctic copper project in remote northwestern Alaska will not detract from the project’s permitting and development timeline.


The project, part of the Upper Kobuk Mineral Projects (UKMP) being managed by the Ambler Metals joint venture between the company and South32 (ASX: S32; LSE: S32; JSE: S32), opened the Arctic exploration camp in May in preparation for a start-up of drilling in June.

THE COMPANY DOES NOT EXPECT THE SHORTFALL IN THE DRILLING PROGRAM TO INFLUENCE THE PERMITTING AND DEVELOPMENT TIMELINE OF THE ARCTIC PROJECT

The drilling contractor deployed three diamond drill rigs in June to conduct 7,600 meters of drilling at Arctic. Most of the drilling targeted infill areas to improve the confidence of the mineral resources and geotechnical and metallurgical drill holes to further de-risk the project. An additional 7,000 meters of exploration drilling was planned at targets near the Arctic deposit and elsewhere in the Ambler Mining District.

As a result, Ambler Metals is unlikely to achieve the drill meters planned at Arctic for this field season. Notwithstanding the lower-than-expected drilling productivity, Ambler Metals has recovered sufficient mineralized material to complete the planned metallurgical program at Arctic, says Trilogy.

All the planned geotechnical drilling was completed, and the company does not expect the shortfall in the drilling program to influence the permitting and development timeline of the Arctic project,” it said in a media statement.

In consultation with joint-venture owners Trilogy and South32, Ambler Metals will keep the camp open longer than initially planned to complete as much of the regional drilling program as possible. The timing of camp closure this season will be weather-dependent.

In response to the slower drilling this season, Ambler Metals has also redeployed some of the geological staff at the site to focus on regional mapping and soil sampling around satellite deposits near the Arctic project and at the earlier-stage Bornite project. Information gathered during this season will assist with future exploration activities, including identifying drill targets for next year’s field season.

The summer field season for the Ambler Access project is underway with cultural heritage work along the proposed 340-kilometre, east-west-running controlled industrial access road that would provide industrial access to the Ambler Mining District in northwestern Alaska.

The partnership, formed in 2019, seeks to eventually develop the Upper Kobuk Mineral Projects (UKMP) in Alaska’s Ambler mining district. Building an access road to the deposit is one of the first steps to achieving that goal.

The UKMP projects have a combined resource of 8 billion pounds of copper, 3 billion pounds of zinc and 1 million ounces of gold equivalent.

The proposed mine is expected to produce more than 159 million pounds of copper, 199 million pounds of zinc, 33 million pounds of lead, 30,600 ounces of gold and 3.3 million ounces of silver over a 12-year mine life.

UN Draws Criticism For Special Treatment Of China In Coal Phase Out

By Irina Slav - Sep 08, 2021, 

The UN has drawn criticism for what is seen as allowing China to continue using coal until 2040 while calling on other big economies to phase it out by 2030.

The criticism follows a Monday speech by UN Assistant Secretary-General and Special Advisor to the Secretary-General on Climate Action, Selwin Hart, who called on Australia to join other OECD economies in committing to phase-out coal use by 2030 as a means to achieving net-zero status by 2050 and contributing to the 1.5-degree Paris Agreement target.

“National governments responsible for 73% of global emissions have now committed to net-zero by mid-century, and we urge Australia to join them as a matter of urgency,” Hart said, adding “Collectively these commitments must cut carbon pollution by 45% this decade if we are to keep our 1.5C goal within reach.  We have seen strong new commitments from many key economies, including the US, Japan and the European Union, who are increasingly looking to their trading partners to follow suit.”

Coal is a major export commodity for Australia and this year has been a bumper one for the most polluting fossil fuel as a shortage of supply and a boom in demand pushed coal prices to the highest in years. And unlike Australia, China is not being called upon to phase out coal by 2030.

“The U.N. has exposed their real agenda this week,” Australian Senator Matt Canavan told The Epoch Times this week following Hart’s speech. “This isn’t about changing the climate, it is about changing our society.”

It does not seem that the Australian government has taken Hart’s call for action to heart.

"Australia has an important role to play in meeting [coal] demand. Coal will continue to generate billions of dollars in royalties and taxes for state and federal governments, and directly employ over 50,000 Australians," the country’s Minister for Resources and Water, KeithPitt, said in a statement following Hart’s speech, The official added that Australia was going to keep mining and using coal beyond 2030.

Australia has a good reason to stick with coal: coal mining and power generation employ some 50,000 Australians and coal exports account for about 16 percent of the country’s total exports over the last five years.

By Irina Slav for Oilprice.com