Note: Australian Mining Tour… part.1

– Australia has become a highly developed country through extensive mining and vast natural resources –

Northparkes mine

Mongolian university lecturers, scientists, researchers, mining professionals and media representatives have visited Australia to learn how its mining industry operates. It can be said that this country has reached its zenith in terms of development. While in Mongolia, we were having debates to conclude just one mining investment agreement, the Australians progressed forward and left us far behind. However, there is nothing mysterious about their success. It is very simple. It is the progress of responsible mining based on natural resource reserves and spending the generated revenue wisely. This has resulted in the Australia of today. It seems that the development history of this country serves as the best example for Mongolia to copy and apply directly. Our two countries have similarities with natural resources, a vast territory and sparse population.

Parkes city street

Northparkes equipped with latest technology and mining best practices
The Northparkes mine is situated 350 kilometres northwest of Sydney, the largest city in Australia. Parkes city is 27 kilometres from the mine. This copper-gold mine started in 1994. However, initial mining in the area goes back 100 years. The open pit mine was the initial development and then 3 years later, in 1997, the underground portion of the mine began operating. Today, Rio Tinto owns 80 per cent of the mine and the Sumitomo Corporation owns the remaining 20 per cent. The copper concentrate from the mine is shipped to the People’s Republic of China and Japanese markets. The mine product is shipped initially by rail to an ocean port, then by ship. Current mine reserves have determined that the deposit can be mined through 2024. Exploration work is ongoing. About 700 people work in the Northparkes mine. The mine is utilising the block caving method for the first time. We travelled by car 8 kilometres and reached a mine depth of 580 metres. It is very interesting that you can go to the underground mine by vehicle and not by special hoisting equipment. In short, the block caving method is horizontal tunneling of a deep underground shaft that loosens up the ore body which in turn falls under on its weight. The ore body is crushed by underground crushers and transported to the surface by a conveyer. By the way, this block caving method will be used in the underground mine at Oyu Tolgoi. Currently, the Northparkes mine produces 10-15 thousand tonnes of ore per day and 6 million tonnes of ore annually. The general manager of the mine explained this production model which has been used since 1997. Few personnel work in the underground mine and most of the operations are automated and controlled from the surface. The concentrator plant at the mine also utilises the latest technology and equipment. Stephanie Loader, the general manager of the mine, said “The most important thing for Northparkes is safety. Production operation should also be safe and efficient”. The mining town is situated close to the mine. The total population of the town is 15 thousand and this town was developed due to the mine. Buildings of similar size, appropriate urban planning, lights, paved roads, gardening and an overall calmness describe the town. Examples of how mining revenue is used for development of the small rural townships can be seen here. By the way, the Australian government does not own a stake in the Northparkes mine; however, it has a very precise policy in place and collects taxes.

Geoff, a farmer of the mine

The mining company has engaged in agriculture projects
It was very interesting to see that a mining company which produces gold and copper is engaged in farming. The Northparkes mine grows wheat and vegetable oil plants in a 6,000 hectare area. The area is said to be very suitable for agricultural farming. In terms of cultivation time, plants are grown in fall and harvested in spring. Summer is very hot and therefore poses a risk to the harvest. Before the scorching heat of summer starts, the plants are harvested. Since the area has a good yield, about US$400 dollars per hectare is spent while earning US$450-600 dollars per hectare. This means US$50-200 dollars in profit is earned from each hectare. July is usually a rainy month, however, this year, it was very dry. In addition to Northparkes, another 2-3 mines located in this area are engaged in farming. About 10 thousand trees are planted in the vicinity of the mine annually. The latest farming technology and equipment are used in the operation. Tractors used here are fully automatic. Geoff, a farmer for the mine with over 30 years of experience, said “The farming here is not only about earning profits, but offers an opportunity for establishing good relations with local residents. Farmers come and visit our farm area and exchange ideas and learn from each other. Next week, we will have a farmers meeting”.

Steve Scheding, Director of the Rio Tinto Centre for Mine Automation

A mine automation centre that turns development into miracles and wonders
The world mining sector is developing rapidly. While we are trying mining, this large production is fully automated and the equipment is operated mostly on the surface. The time when miners operated bulldozers and loaders at a depth of several hundred metres has long been forgotten and is now managed by the mere push of a button. However, production of such sophisticated machinery and equipment is very complicated and takes much time to master. We visited the Mine University of Sydney’s Centre for Mine Automation. The centre is engaged in research work to develop automated equipment that can work in the mines. About 150 researchers and scientists work in the centre. Researching how these mines can operate without humans is the most interesting part of the research. In short, this means human senses such as hearing and seeing will be instilled into the machines. One of the machines produced by the center is a truck that transports containers in the ocean port. The center made innovations that allowed one person to operate 25 automated trucks simultaneously. Also there was equipment that explores ocean depth for coral and transmits data and information. The centre produced many automated equipment such as a helicopter that detects weeds in a field. The centre produces equipment based on the commission of businesses. One such business is Rio Tinto. Therefore, the centre is named the Rio Tinto Centre for Mine Automation. This centre has 43 people including 15 researchers, 14 technical personnels, 4 production personnels and 10 research students. Steve Scheding, Director of the Rio Tinto Centre for Mine Automation, said “It has been 5 years since our centre was established. Our objective is development of fully automated mines with remote control. We identified our approach and methods for this and the centre began to achieve the objectives. Underground mine ore crushers and drilling machines are already being produced. In addition, we are exploring how to adapt equipment used in other areas for mine use”. Understanding mine operations takes time, according to staff of the centre. Then, automation of the equipment begins. When mines use automated equipment from the centre, they bring scientific researchers and personnel who developed this equipment. Last year, about 10 personnel from the centre became employed by Rio Tinto and began to operate the equipment in actual mining conditions.

(To be continued)
Ch.Batpurev