Australian Handbook 2021 Mines and ServicesMOVE & REFILL YOUR MACHINES REAL FAST (08) 9479 4988 equipmentplacement.com.au /equipmentplacement OUR PRODUCTS:3 Contents 4 Foreword & Introduction 6 Feature Articles 22 Mine Suppliers Index 26 Mine Suppliers Directory 223 Minesite Index 232 Minesite Directory CONTACT US P (08) 6314 0301 E support@australianminingreview.com.au 160 Beaufort Street, Perth, WA 6000. PO Box 8023, Perth BC, WA 6849. The copyright is vested in the Proprietors of Publications & Exhibitions Australia Pty Ltd; neither whole nor any part of this issue may be reproduced without permission. The views expressed in this publication are not necessarily those of Publications & Exhibitions Australia Pty Ltd and its staff, but are those of the respective author who accepts sole responsibility and liability for them. NOTICE TO ADVERTISERS The Trade Practices Act, 1974 came into force on the 1st October 1974. All advertisers and advertising agents are directed to carefully study the provisions of the Act, which contain strict regulations on advertising. It can be an offence for anyone to engage, in trade or commerce, in conduct deemed “misleading or deceptive”. Specifically s53 of the Act contains prohibitions from doing any of the following in connection with the promotion, by any means, of the supply or use of goods or services: (a) falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; (b) falsely represent that goods are new; (c) represent that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits they do not have; (d) represent that the corporation has a sponsorship, approval or affiliation it does not have; (e) make a false or misleading representation with respect to the price of goods or services; (f) make a false or misleading representation concerning the need for any goods or services; or (g) make a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy. PENALTIES For an individual — $10,000 or six months imprisonment For a corporation — $50,000. It is not possible for this company to ensure that advertisements published in this newspaper comply with the Act and the responsibility must, therefore, be on the person, company or advertising agency submitting the advertising for publication. In case of doubt, consult your lawyer. DISCLAIMER While every effort has been taken to ensure the accuracy and currency of the information provided in this publication, the mining industry is dynamic by its very nature. All information is correct at the time of production (November 2020). Please contact our team on (08) 6314 0301 to update your minesite details in next year’s handbook. ABN 28 112 572 4334 The publication of this Australian Mines and Services Handbook 2021 provides a great insight into Australia’s resources sector – a leading global supplier of resources and energy that continues to drive our economic prosperity. Australia’s resources sector underpins our economy, with export income reaching a record $290b in 2019-20, accounting for around 9% of annual economic output. This is forecast to remain strong as the world recovers from COVID-19. The sector has long supported Australia through turbulent times – and the coronavirus pandemic is no different. Almost 250,000 Australians work in resources, with more than one million involved in broader supply chains that rely on the industry. These jobs support our economy and our standard of living. Trade income and royalty revenues also contribute to schools, hospitals, roads, police and other important government programs. The sector also supplies our region and global partners with essential commodities. Throughout the COVID-19 downturn, Australia has maintained its reputation as a safe, efficient and reliable supplier of the resources needed by our major trading partners. Foreword The Hon Keith PittMP Federal Minister for Resources, Water and Northern Australia This has helped to keep the lights on, not only in Australia, but in Japan, South Korea and China. That is why the Australian Government will continue to be a strong supporter of the resources sector. Not just the businesses – but the hard-working men and women in the sector who are out there every day adapting to changing conditions to keep the industry going. We will continue to support market access for Australian exports, to build trade links with new markets as they emerge, and to ensure Australia remains a global leader when it comes to innovation. We continue to support exploration though our expanded Exploring for the Future program, which provides free and open access information on mineral and water resources in vast areas of Australia. And the Government is supporting the development of a new “critical minerals” sector, working with international partners on ways to diversify supply chains while working at home to develop new projects and opportunities for downstream processing. This Australian Mines and Services Handbook 2021 is a valuable resource for anyone wanting to know about Australia’s resources sector and mining services industries. It is also a reminder that behind every project are Australian men and women who continue to work hard to support our economic wellbeing, for the good of all Australians.5 Introduction Kathleen Southway Project Manager and Journalist Welcome to our inaugural edition of the Australian Mines and Services Handbook. What a year 2020 has been! When life gives you lemons, make lemonade - or fish and chips, in my family. Australia’s mining sector has shown just how resilient and resourceful it is, no pun intended. Our nation reached record resources and energy exports in 2019-20 in the face of the sharp but short downturn of the COVID-19 pandemic and global lockdowns. Nearly half of Australia’s exports were made up of iron ore and gold, with major markets comprising China, Japan, South Korea, Taiwan and India. In the middle of the pandemic, the International Monetary Fund (IMF) forecast a 4.9% contraction in world economic activity for 2020, followed by a rebound of 5.4% in 2021. Looking forward, the outlook for Australia’s mining sector, which employs a quarter of a million people and makes up more than half of the country’s total exports, is buoyant and positive. Resource and energy exports is forecast at $256b in 2020-21 and again at $252b in 2021-22. Our team at the Australian Mining Review saw the value in providing the mining and mining services industries with a comprehensive and concise listing of operating mines in the country. Starting with a blank canvas, we deliberated long and hard about what our readers and our end-users needed. Our goal was to produce a handbook that was user- friendly and packed with as much valuable information as possible. We took the challenge on and, for the better part of a year, doubled down, researched, investigated and compiled. In this handbook, you will find succinct summarised profiles on more than 600 operating mines, which include information such as latest production figures, mining and processing methods, equipment used, expansions, development plans and workforce numbers. Some of these mines, although shown separately, form part of a larger mining complex or project, while others remain in care and maintenance. At your fingertips are location coordinates, ASX codes of listed companies, commodities produced and contact details. The mines are alphabetically listed, with an additional index by state and commodity, providing greater search functionality, including a glossary for all commonly used acronyms. For operators of the mines, we have produced a comprehensive directory of services highlighting nearly 400 areas of expertise, including conveyor belting and services, crushing and screening, dust control, equipment hire and rental, non-destructive x-ray services, and ultrasonic and dye penetrant testing, to mention a few. Our colour-coding system makes it simple to navigate between different sections of the handbook. We have also included a great selection of articles on Australia’s mining industry, commodities outlook, critical minerals, state responses to COVID-19, as well as Q&A segments with some of the industry’s leaders. Finally, I want to acknowledge the tremendous collaborative effort that went into creating this handbook. The team at the Australian Mining Review, with decades of combined experience in both the mining and publishing sectors, pulled through 2020 with professionalism and comradeship that were second-to-none. A huge thank you to our clients for supporting us over the past 12 years. This handbook is a consolidation of our wealth of knowledge and we hope you enjoy and find value within its covers.6 It has been a tumultuous year with COVID-19 causing widespread uncertainty and volatility in global markets. Interestingly, the pandemic has led to an increase in the price of many commodities amid stronger than expected demand from China, supply concerns and “safe-haven demand”. Gold took centre stage with the price of the precious metal skyrocketing 40% in just five months. Iron ore was the other big winner with the price soaring as a result of China’s infrastructure boom and major supply disruptions in Brazil. Industrial metals prices have also been on an upwards trajectory. But what are experts’ forecasts for 2021 and 2022 as the world tries to recover from the pandemic and the huge disruptions it has inflicted on the global economy? Gold Gold had a dream run in 2020 as investors ploughed their money into the safe-haven asset amid the COVID-19 pandemic. The meteoric rise in the price of the precious metal reached a record of US$2064/oz on August 6 after rising steadily by about 40% since mid- March when a wave of panic started to sweep across the world. Some investors even tipped a relentless march towards US$3000/ oz as gold outperformed all other commodities as well as other asset types like real estate as economies braced for a property market crash. The value of Australia’s gold exports is forecast to reach a record of $31b in 2020-2021, according to the Department of Industry’s September Resources and Energy Quarterly Snapshot. Commonwealth Bank’s Mining and Energy Commodities Research director Vivek Dhar said the gold price had been supported by a weaker US dollar, falling US 10- year real yields and “safe-haven demand”. But the price gains have lost momentum and has hovered around US$1900/oz over the last few months. The Quarterly Snapshot forecasts the gold price to fall as the global economy recovers, averaging about US$1740/oz in 2021 and US$1620/ oz in 2022. Mr Dhar forecasts the price to rise mildly to a peak of US$1970/oz by the second quarter of 2022. “Assuming US 10-year inflation expectations remain steady for the foreseeable future (but by no means is that a guarantee), our relatively flat forecast for US 10 year bond yields suggest that the precious metal has perhaps a little more upside to go,” he said. “A weakening US dollar will likely lend support too.” Iron Ore The price of iron ore has soared during the pandemic, driven by supply disruptions in Brazil, falling port stocks and robust demand from China, which currently imports more than two-thirds of global seaborne iron-ore. The price jumped by more than two- thirds in 2020 and neared US$170/t at the start of the new year, just shy of the record US$193/t set in 2011. “China’s fiscal stimulus has proven more effective than we thought in Dancing to China’s Tune By Kate Christian driving China’s steel demand,” Mr Dhar said. “Supply has played a smaller role in helping prices higher; COVID-19 disruptions to date have been small. “Supply constraints really stem from the fatal dam collapse in Brazil in January 2019 that saw Vale sideline production.” But Mr Dhar predicted the price would still drop in 2021, averaging about US$90/t by the fourth quarter. “China’s demand impulse should eventually weaken at some point next year, especially as China’s fiscal policy will likely move away from supporting China’s commodity intensive sectors,” he said. “Falling steel mill margins in China and rising iron ore port stocks would be the catalysts for lower iron ore prices.” Nickel The price of nickel has surged since March off the back of rising Chinese demand from stainless steel production, big expectations of stimulus spending and supply concerns. COVID-19 related shutdowns in the Philippines—which accounts for 13% of world production—as well as in South Africa and Canada, reduced global production of nickel in early 2020. Another major contributor to reduced mine production came from lower Indonesian output following the government ban on exports of nickel ores. The metal is yet to scale the lofty heights it reached in 2007 when it hit an all- time high of US$53,750/t, driven by China’s commodity boom. The sky-high demand and prices led to a surge in global nickel mining and production, which inevitably led to an increase in global nickel supply. Prices collapsed when the global financial crisis hit, drastically reducing global demand, leading to a surplus. The price has fluctuated since then but has gained almost 50% since its March low to reach a year-high of US$17,650/t on December 15. Prices over the last couple of months have been consistently higher than prices seen between December 2014 and August 2019. Mr Dhar said he expected Filipino nickel ore exports to China to increase in coming months as Chinese buyers turn to the Philippines due to the Indonesia ban. “Nickel ore port stocks in China have steadied after falling earlier this year,” he said. “That likely indicates that nickel ore supply concerns are easing.” Mr Dhar said widespread predictions of a significant nickel surplus “have moderated slightly from earlier this year, reflecting stronger-than-expected Chinese stainless-steel demand”. Traditionally, stainless steel has accounted for about 70% of nickel consumption. In the longer term, demand for nickel is set to explode due to the electric vehicle and battery storage revolution. Miners across the world are moving to boost production in response to Elon Musk’s announcement in September at Tesla’s Battery Day that nickel would be the company’s metal of choice for its batteries. BHP estimates the cumulative demand for nickel in batteries over the next 30 years to be between 250-350% higher than the past three decades. The mining giant estimates nearly 50% of light vehicles around the US and Australian dollar gold pricesChina’s steel mill margins (hot-rolled coil and steel rebar) and iron ore prices Iron ore price vs China steel production growth The gold price is forecasted to fall as the global economy recovers, averaging about US$1740/ oz in 2021 and US$1620/oz in 2022. The price of iron ore is inextricably linked to rising demand from China. Iron ore price verse China steel production growth.7 world could be electric by 2050. Just six years ago BHP was trying to offload its WA nickel business amid falling prices. Now the miner is ramping up exploration and production at Nickel West as part of the operation’s transition from a 50-year-old stainless steel supplier into one of the world’s leading nickel suppliers in the batteries sector. The nickel price is expected to rise in line with increasing demand over the next decade, but analysts have found it difficult to pinpoint timelines due to uncertainty over supply and whether a surplus will eventuate. In the shorter term, prices are forecast to hover around US$15,300/t in 2022. Industrial Metals The price of industrial metals, including copper, nickel, lead, aluminium and zinc, has been on an upward trajectory since COVID-19 struck in March. Prices have risen off the back of resilient Chinese demand, a weaker US dollar, economic stimulus packages and COVID-19 related supply concerns. “Supply concerns still linger for a few base metals, providing some price support,” Mr Dhar said. “However, we believe the worst of COVID-19 supply disruptions are mostly behind us. “So long as global economic data, particularly from China, remains upbeat and the US dollar continues to slide, we think there’s no real reason to believe that current pricing dynamics will change.” Mr Dhar believes base metal prices would likely hold onto recent gains for the start of 2021 before declining “as China’s commodity demand impulse fades”. Resources and Energy Quarterly snapshot predictions: Copper In 2021 and 2022, a lift in economic activity is expected to support copper usage. World consumption is forecast to reach 26mt in 2022, up an average 5% a year from 2020. Aluminium Growing demand is expected to drive aluminium prices higher in 2021 and 2022, to an average of US$1,880 and US$1,960/t, respectively. Zinc While production has recovered, localised shortages of concentrate, coupled with COVID-19 stimulus packages, have resulted in markets anticipating falling global inventories. Zinc prices are expected to hover around US$2025/t in 2022 as new supply enters the market. Coking Coal The volatility in the price of coking (metallurgical) coal will continue amid uncertainty over whether China will keep placing restrictions on imports from Australia. The Department of Industry forecasts the premium Australian Hard Coking Coal price to average US$134 a tonne in 2021 and US$145 a tonne in 2022, both well below the 2019 average. But this will depend on whether China can source the coal it needs for its hungry steel industry from other countries, such as Canada, and whether Australia can find other markets for its product, such as India and other Asian countries. Thermal Coal The thermal coal price has stabilised off the back of global production cuts and stronger demand from Asian economies as they emerge from COVID-19 containment measures. The Department of Industry forecasts the Newcastle benchmark price to average US$65/t in 2022 but Chinese import restrictions will Industrial Metal Prices South and South East Asia thermal coal imports Growing demand from South and Southeast Asia should help to offset declining thermal coal imports elsewhere. Industrial metals prices have steadily increased since the pandemic struck. cause Australia’s exports to fall from about 213mt in 2019-20 to 199mt in 2020-2021. The restrictions have placed downward pressure on Australian thermal coal prices, while the prices for China’s domestic product has soared. “In 2021, thermal coal spot price gains will be driven by a rise in seaborne thermal coal demand, as the global economy recovers from the COVID-19 pandemic,” the Department of Industry said. “However, longer-term trends will constrain the extent of the rise: growth in the seaborne trade over the outlook period is forecast to be modest, and may never regain the levels of 2019.” AMSH 20-year nickel price Australian Dollar (AUD) per Metric Tonne v-20 2001 10,000 0 40,000 20,000 50,000 30,000 60,000 70,000 2011200520152003201320072017200920192002201220062016200420142008201820102020 Start of COVID-19Q: Fortescue Metals Group achieved record results in FY20. What are the key fundamentals that have underpinned Fortescue’s success during a challenging year? A: Fortescue, together with our industry peers, was in the privileged position to continue to operate throughout COVID-19 restrictions in WA. For me one thing is clear: the Fortescue values that have guided our company for the last 17 years, have shone their brightest during the challenges that came our way in 2020. By keeping our values of safety and family at the heart of every decision we made, we kept our team, our families and our communities safe. We have remained focused on what we can control, safety, production and cost. Against the backdrop of a strong performance for the first quarter, we are well positioned for FY21 to meet our guidance, execute our growth strategy and deliver returns to our shareholders. Q: What are Fortescue’s most important strategic priorities over the next three to five years? A: Fortescue is at the beginning of an exciting new phase, from new mines coming online within the next 18 months, energy infrastructure that will fundamentally change how our operations are powered, through to exploring opportunities across new markets and commodities. The strength of Fortescue’s operations and balance sheet means we can continue to reinvest in the business and, importantly, invest in growth. Our newest mine Eliwana achieved first ore in December 2020. Now operational, Eliwana will help to maintain Fortescue’s low-cost status and provide greater flexibility to capitalise on market dynamics. The Iron Bridge Magnetite project is progressing on schedule and budget, with the first shipment of high-grade magnetite concentrate planned in the first half of calendar year 2022. Together, these projects have created up to 5000 construction jobs, and 1500 full-time site positions once operational, which in turn will continue to support countless West Australian businesses. We are committed to decarbonisation, and working with our wholly- owned subsidiary Fortescue Future Industries, we are assessing clean energy opportunities locally and internationally to capitalise on the important role that green hydrogen will play to ensure the world can meet the Paris 2050 targets. This includes our recently announced development study into a green ammonia plant in Tasmania. During the year, the mining sector’s work with Aboriginal communities, particularly the industry’s approach to protecting Aboriginal heritage, came into sharp focus. From Fortescue’s point of view, our heritage management is guided by our values and our primary objective is to avoid significant Aboriginal cultural heritage places. Our activities are carried out in consultation with Traditional Knowledge Holders, within the existing framework of the Western Australian Aboriginal Heritage Act. We believe our processes are robust and thorough, and our procedures reflect our commitment to protecting Aboriginal heritage. Since the commencement of operations, Fortescue has protected and avoided almost 6000 heritage places. Fortescue Metals Group (FMG) chief executive Elizabeth Gaines at the Christmas Creek mine, part of the Chichester Hub operations in Pilbara, WA. At the time of publication, the Christmas Creek ore processing facility (OPF) was being upgraded to include a Wet High Intensity Magnetic Separator (WHIMS). Q&A | Fortescue Forges Forward Fortescue Metals Group is one of the world’s largest producers of iron ore, shipping 178.2mt of iron ore from its Pilbara operations and recording a net profit after tax of US$4.7b in FY20. Looking ahead, the mining giant is focused on growth, product and decarbonisation, through its Eliwana mine and rail project, the Iron Bridge Magnetite project, the Chichester solar gas hybrid project, Pilbara Energy Connect and transition to hydrogen. Kathleen Southway spoke to FMG chief executive Elizabeth Gaines about the company’s strategic directions for the future.9 Q: China is a key business partner. How is Fortescue managing the risks surrounding the global supply chain, including international exploration opportunities? A: Fortescue’s engagement with China extends beyond iron ore supply to deep customer relations, procurement, financing as well as academic, policy and social linkages. Through this multifaceted approach, Fortescue has forged strong relationships with our customers and businesses in China. We continue to see robust demand for Fortescue’s products and we have successfully diversified and grown our distribution channels, with FMG Trading Shanghai selling more than 10mt from regional ports in China since the commencement of operations in June 2019. Fortescue’s exploration and field activities in Ecuador and Argentina were suspended during 2020 due to COVID-19. Subject to COVID-19 restrictions, seasonal drilling activities in the San Juan region of Argentina are expected to commence in Q2 FY21. As always, the health and safety of our Fortescue family remains our number one priority and our COVID-19 risk management strategy and key measures will continue to remain in place to safeguard our team. Q: What challenges do mining CEOs face in the current and future economic and political climate? A: While COVID-19 has presented a range of challenges and uncertainties, there are a number of other important global issues that must also be addressed, and top of that list is climate change. The United Nations have said that this is a critical decade within which year- on-year emissions reductions are required. The impacts of climate change are changing the way we live, our communities and how we operate our business. We must work together to take action and play our part in ensuring this global issue does not create a burden for future generations. Q: Amid these, how is Fortescue safeguarding its future as a company and an organisation? A: The business sector is in a privileged position to take the lead and tackle the challenges associated with climate change. Mining is one of the most innovative industries in the world and we are harnessing this advantage to work towards carbon neutrality with a sense of urgency. In 2020, Fortescue announced an industry leading emissions reduction goal to achieve net zero operational emissions by 2040, some ten years before our peers. This goal is supported by Fortescue’s pathway to decarbonisation, including the reduction of Scope 1 and Scope 2 emissions from existing operations by 26%, by 2030. Q: What other energy and commodity markets is Fortescue expanding into and why? How would you ensure the success of these ventures and its future revenue? Outline your stretch targets. A: Fortescue’s proud history of setting stretch targets is strengthened by the introduction of practical initiatives that will help us deliver on our decarbonisation goals in an economically sustainable manner. Our Chichester Solar Gas Hybrid Project is a low emission energy solution that will incorporate large scale solar. This project, owned and operated by Alinta Energy, is well progressed with around 150,000 solar panels, 125 transmission towers and more than 55km of transmission line installed to date. In 2020 we announced a US$700m investment in the Pilbara Energy Connect project which includes transmission infrastructure, as well as solar and gas generation, and large battery storage. Pilbara Energy Connect will integrate with the Chichester Solar Gas Hybrid project and once these two projects are fully operational, it is estimated that 25-30% per cent of stationary energy across our mining operations will be powered by solar. Further to our investment in energy infrastructure, there are a number of hydrogen-related activities underway including the Memorandum of Understanding we recently signed with Hyundai and the CSIRO to accelerate the development of renewable hydrogen technology, as well as our $32m investment in hydrogen fuel cell passenger coaches and a refuelling station, at Christmas Creek. Hydrogen is just one example of how we can build partnerships and trading relationships that can open new opportunities and markets as our economy grows over the next 20 years. AMSH Sunset over the Cloudbreak ore processing facility (OPF) at Fortescue’s Chichester Hub in the Pilbara region of WA.Next >