May 17, 2020

A great debt: Glencore exploring potential sale of Kazakhstan gold mine

Glencore
Kazzinc
gold mining
BMO capital markets
Dale Benton
1 min
With an increase the in the price of Gold, Vasilkovskoye would be an attractive asset for potential suitors
The Financial Times has revealed that Glencore, the largest commodity trader in the world, could potentially sell one of its biggest gold mines.

Vasilk...

The Financial Times has revealed that Glencore, the largest commodity trader in the world, could potentially sell one of its biggest gold mines.

Vasilkovskoye, Kazakhstan, part of Gelncore’s Kazzinc subsidiary, could be sold for up to $2billion to help lower the company’s $18bn debt.

The mine has more than 5m oz of proven and probable gold reserves and with an increase in the price of Gold, up 20 per cent in 2016, there has been a something of a recovery for gold focused operators in the mining industry.

Steven Kalmin, Glencore’s chief financial officer, said the company is always looking for ways to sell its non-core assets– and reach its target of lowering its net debt to $18bn this year.

He said: “We still produce significant gold and silver — non-core for us — in South America, North America, Kazakhstan [and] Australia and we’re looking at further monetisation there.”

Glencore owns 70% of Vasilkovskoye through its subsidiary Kazzinc. With a focus solely on the production of Gold, Vasilkovskoye will attract strong attention from potential buyers, particularly from dedicated gold miners as opposed to financial companies.

Glencore has appointed BMO Capital Markets and Duetsche Bank to explore and support any potential deal that would take place.

Source :Financial Times

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May 13, 2021

BHP, Rio Tinto & Vale launch Charge On Innovation Challenge

BHP
Vale
Rio Tinto
Charge On Innovation Challenge
3 min
BHP, Rio Tinto & Vale launch 'Charge On' Innovation Challenge - a competition for tech innovators to reduce truck emissions via electrification

Mining giants BHP, Vale and Rio Tinto have launched the 'Charge On' Innovation Challenge to solve one of the biggest challenges the industry faces today - decarbonising mining operations.

'Charge On' Innovation Challenge

In partnership with Austmine, Australia's leading mining equipment, technology and services industry association, founding patrons BHP, Vale and Rio Tinto have launched the competition to encourage technology innovators to develop new concepts for large-scale haul truck electrification systems. The main goal is cutting emissions from surface mining operations.

“The mining industry needs to be at the forefront of tackling the climate challenge. The Charge On Innovation Challenge is a great example of the current collaborative work being done by the mining industry and mobile equipment manufacturers to decarbonise mining fleets,” the trio said in a media statement.

“In addition to providing a zero-carbon energy source, the conversion of mobile mining equipment to battery-electric can potentially unlock value, as electric motors have fewer moving parts when compared to standard equipment.”

A number of non-traditional mining sector vendors are actively developing technologies that can assist in mine electrification. By submitting a Challenge to the market, the Patrons of Charge On expect to:

  • Demonstrate there is an emerging market for charging solutions in mining
  • Accelerate commercialization of solutions
  • Indicate to suppliers, the mining industry seeks interoperable solutions
  • Maintain multiple actors and competition in the supply chain
  • Integrate innovations from other sectors into the mining sector

"We expect some solutions identified in the Challenge could provide propulsion to existing diesel-electric trucks. This may present a pathway to early implementation for dynamic charging solutions," the trio said.

Charge On

Paris Agreement

Found patrons BHP, Vale and Rio Tinto are pledging their commitment to fighting climate change:

"The mining industry has an important role to reduce emissions and do our part to achieve the Paris Agreement goals to limit the impacts of climate change."

The Charge On Innovation Challenge asks vendors to present interoperable solutions that can safely deliver electricity to large battery-electric off-road haul trucks in a way that maintains or improves current productivity levels. Specifically, mechanisms capable of delivering in the order of 400kWh of electricity to each truck within a haul cycle (ie load, travel, dump, return, queue). The delivered electricity is to charge a battery, and if applicable directly propel the truck.

Austmine CEO Christine Gibbs Stewart commented: “We expect the Challenge will attract companies from a broad range of sectors including mining, automotive, aerospace, agriculture, and defence to deliver selected charging concepts to create a standard product that can interface with all trucks."

More information about the challenge will be released on May 18.

Electrification

The competition echoes growing efforts being made across the industry to tackle emmissions and promote electrification. In march this year, the Electric Mine Consortium was launched. It's founding members include Gold Fields, Dassualt Systemes and Sandvik who pledged their commitment to decarbonising mining operations.

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