Michael Wright on Thiess’ sustainable mining mission

It’s been a busy few months for mining services provider Thiess, which has announced a planned acquisition of Australia-based underground metals company PYBAR Holdings Limited and its wholly owned subsidiary Pybar Mining Services Pty Ltd. its 2025 decarbonization target.

The company also celebrated its 90th anniversary earlier this month, paying tribute to its roots as a small farming and road construction company, Thiess Bros, which began operating in rural Australia in 1934.

I AM recently asked Michael Wright, Thiess Group Executive Chairman and CEO, some questions about the company’s sustainability plans and what PYBAR could offer the group.

IM: How do you see the addition of PYBAR complementing your sustainability goals? Is PYBAR involved in underground mining services contracts seeking, for example, low (diesel-electric/hybrid) or zero carbon (battery) charging and transport solutions?

MW: The acquisition of PYBAR accelerates our strategy to diversify our commodity portfolio and increasingly focus on metals and minerals. PYBAR has significant expertise in developing underground copper and gold projects, such as the Eloise mine, owned by AIC, and the Carrapateena mine, now owned by BHP.

We are currently in the process of planning and working with PYBAR for them to join the Thiess Group once customary sales conditions have been met and the acquisition process has been completed.

The Thiess Group companies all play a role in efforts to improve the sustainability of mining worldwide and achieve our target of net zero Scope 1, 2 and 3 emissions from diesel combustion by 2050. Once PYBAR becomes part of the Group, we will collaborate with on initiatives to achieve this goal.

IM: How do you see your new underground offering competing with the likes of Barminco, Byrnecut and Macmahon? What will be your unique proposition to the market?

MW: One of PYBAR’s key competitive advantages is their long-standing customer relationships. They have a well-deserved reputation as an experienced specialist in the mining of underground metals and minerals.

Thiess currently operates underground in Mongolia, and having PYBAR as part of the Thiess Group will re-establish our presence in the Australian underground mining market and allow us to expand our service offering to our customers.

Thiess Group companies will work with PYBAR to optimize efficiencies and leverage opportunities from our combined strengths and customer relationships, while maintaining and growing the PYBAR business.

IM: Are there technology areas that PYBAR has been involved in in underground mining that complement your own mining work with automation and electrification?

MW: Thiess has been on an autonomous mining journey since 2012 and today our fleet consists of 21 autonomous trucks, nine autonomous drills and six semi-autonomous bulldozers. The group has also made progress in the field of supplier-independent autonomy and electrification through MACA. So as a group we have a strong team and a strong focus on both autonomy and electrification.

Likewise, PYBAR has been on a technology journey. In 2019, they deployed two Cat R1700 underground loaders at the Dargues gold mine in preparation for the advanced underground automation. The new machines were equipped with Cat’s Command next-generation subsurface technology, which will allow the machines to be controlled remotely from the surface from early 2020, delivering significant productivity, efficiency and safety gains.

There are significant opportunities to bring PYBAR into the Thiess Group.

IM: Following the publication of your 2023 sustainability report, can you tell me more about the hybrid excavator trial you are planning in Indonesia? And which vehicles will be involved in the battery-powered light/medium trucks in Australia that you will be fielding this year? What about the plans for MACA’s fleet retrofit solutions in Australia? Will these solutions launch soon at Karlawinda?

MW: Our hybrid excavator trial started last month on one of our Indonesian projects. Two 30 tonne hybrid excavators are being tested as part of our commitment to reduce our emissions. We are monitoring the progress of the trial and will provide an update in our 2024 sustainability report.

We have two light battery electric trucks in Australia in the coming weeks, which will be deployed on two of our projects, and we are in the process of installing the charging infrastructure at the selected locations.

MACA is also working to develop a retrofit solution for the existing fleet to reduce emissions at a lower initial capital cost and in a shorter time frame than new electric trucks. We are continuing with detailed technical studies, with the plan to deliver the first project in the coming months.

IM: Anything to add on the topic of mining technology in relation to your net-zero journey?

MW: Our ambition is to achieve net zero Scope 1 and 2 emissions and Scope 3 emissions from diesel combustion in our fleet. We are pleased with our progress to date and are on track to meet our 2025 Scope 1 and 2 emissions targets (excluding Scope 1 and 2 emissions from civil MACA projects. We will seek to achieve a Scope 1 and 2 -emission reduction target to be developed for MACA civil projects distribution in 2024).

We continue to invest in and test a range of lower carbon transition technologies, with gas and hydrogen trickle feed options. In 2021, we joined the Hydra Consortium, which is researching the use of renewable hydrogen to power mining fleets. After building and testing their first hydrogen fuel cell prototype, Hydra is now working on phase 3 of the trial to further improve and test the technology.

In addition, Thiess Group recently became Toyota’s first customer for its locally assembled hydrogen fuel cell stationary power generator, which we plan to test in our mining operations in New South Wales.

We are also investigating dual-fuel vehicles. In 2023, Thiess successfully converted and trialled a dual-fuel Caterpillar 793F at a mine site in the Bowen Basin, with demonstrable reductions in emissions and diesel consumption. We continue to explore expansion opportunities for this and other technology trials.