Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
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NEWS-LEADING DEVELOPMENTS 4 E&MJ; • FEBRUARY 2018 www.e-mj.com Since commencing trial operations in 2008, Rio Tinto haul trucks fitted with Autonomous Haulage System (AHS) technology have now moved more than 1 billion metric tons (mt) of both ore and waste material across five sites in the Pilbara including the newly commis- sioned Silvergrass mine. Last year, Rio Tinto's autonomous fleet accounted for about a quarter of the total material moved across our Pilbara mines. On average, each autonomous truck was estimated to have operated about 700 hours more than conventional haul trucks during 2017 and around 15% lower load and haul unit costs. Importantly, there have been zero inju- ries attributed to autonomous haul trucks since deployment, highlighting their sig- nificant safety advantages. With more than 80 autonomous Komatsu trucks currently operating and plans in place to increase this to more than 140 by the end of 2019, the pace of automation across Rio Tinto's iron ore business is accelerating. Rio Tinto Iron Ore Chief Executive Chris Salisbury said, "Hauling 1 billion mt autonomously is an impressive milestone for our business and again highlights Rio Tinto's pioneering spirit when it comes to adopting revolutionary new technolo- gies, which are making the industry safer and more efficient. "We are studying future additions to our autonomous truck fleet that we expect will contribute to our $5 billion productiv- ity program, specifically Iron Ore's com- mitment to deliver $500 million of addi- tional free cash flow from 2021 onward. "We remain committed to working closely with our employees as we expand our autonomous haul truck fleet including providing opportunities for new roles, re- deployment, retraining and upskilling." Last month, Rio Tinto approved retro- fit programs to add autonomous tech- nology to 48 existing Komatsu and Cat- erpillar haul trucks over the next two years. About 20% of Rio Tinto's exist- ing fleet of almost 400 haul trucks in the Pilbara is autonomous. Following the completion of the retrofit projects autonomous trucks will represent about 30% of the fleet. Rio Tinto has been partnering with Komatsu for 20 years and in Septem- ber deployed the world's first retrofitted Komatsu autonomous haul truck at its Hope Downs 4 operation. Leagold Makes Offer for Brio Gold Leagold Mining said it intends to make an all stock offer to acquire Brio Gold on or before February 28. Brio shareholders will receive 0.922 of a share of Leagold for each Brio share held, representing an implied price of C$2.80 per Brio share, which values the transaction at approxi- mately US$264 million. "The combination with Brio represents a unique opportunity to acquire a portfo- lio of producing assets with a meaningful growth profile," said Neil Woodyer, CEO, Leagold. "The all-stock offer results in Brio shareholders owning approximately 42% of the combined company." The combined operations are expected to produce 450,000 ounces (oz) in 2018, with the potential for growth to more than 700,000 oz in 2020 at all-in sustaining costs in the mid-$800s, he said. In addition, this reduces overall busi- ness risk by having four operating mines in two jurisdictions. He said, "We regard both Mexico and Brazil as jurisdictions with considerable future potential for Leagold." Leagold presented an offer to Yamana that it could not overlook, explained Pe- ter Marrone, chairman and CEO, Yamana, which owns 53.6% of Brio's shares. Leagold's growth strategy in Latin America began with the acquisition of the Los Filos mine in Mexico in April from Goldcorp. The company now hopes to build Leagold into a leading, intermediate gold producer in Latin America. Centerra Completes AuRico Acquisition Centerra Gold Inc. and AuRico Metals Inc. have completed their previously an- nounced arrangement where a direct whol- ly-owned subsidiary of Centerra acquired all of the issued and outstanding common shares of AuRico Metals for C$1.80 in cash consideration per share. The pur- chase price was funded through a combi- nation of a new US$125 million acquisi- tion facility and cash on hand of Centerra. "With the completion of the acquisition of AuRico Metals, we have expanded our Rio Tinto's Autonomous Haulage Achieves 1 Billion Tons The site of a loaded haul truck moving at full speed without a driver has become commonplace at Rio Tinto.