INNOVATION AND DEVELOPMENT IN THE KAZAKH MINING INDUSTRY
JSC AK ALTYNALMAS
K
azakhstan is the world’s largest landlocked country. It’s bordered by a number of nations including Russia to its north, China in the east, and Kyrgyzstan, Uzbekistan, and Turkmenistan in the south, and yet is vast enough to also border the Caspian Sea.
We caught up with JSC AK Altynalmas to discuss the company’s evolution towards full digitalisation within the mining industry in Kazakhstan Writer: Marcus Kääpä | Project Manager: Joshua Mann
Revolutionising Resource Extraction While landlocked, the country is geographically diverse with its lands ranging from snow-capped mountains, and rolling green hills, to open steppes, rocky canyons, river deltas, and arid deserts. And with access to all of this varied land and accompanying natural resources, Kazakhstan finds itself as a key Asian contributor to the oil and gas industry through its natural gas reserves, and equally as impressive, a driver in the Asian mining industry through the vast amount of natural minerals available. Traditionally (that is to also say historically) mining has been a “hands on” industry with more focus on individual workers, manually operated machinery, and factors such as safety, sustainability, and efficiency often coming second to raw output. However, in the present, we see everything has changed. The jump between the old-school methods and modern practices is huge. Today, modern mining incorporates smarter plans, innovative ideas, and the latest technology to aid in the establishment of these once lacking business elements. We are seeing the application of digital tools in almost every area of every industrial activity, and mining is no exception. Software such as 3D 2 | APAC Outlook issue 47
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AAEngineering Group – EPC contractor on the mining and metallurgical market.
AAE Mission:
AAE offers:
We are striving to become a regional leader and a strong strategic partner in the design, construction and operation of the mining and energy industries.
• Transparent and comprehensible engineering, procurement and construction contract (including FIDIC Silver Book). • A full range of engineering and construction services tailored to the Customer’s criteria with the use of advanced tools and technologies. • Latest improvements in the energy efficiency of designed enterprises and alternative energy sources. • Cost optimisation by engagement of a wide range of our own equipment and construction machinery and cooperation with our long-standing partners. • Advanced technologies in the area of information modelling (BIM) and Digital Twin creation.
AAE is the only supplier of ready-made solutions for the mining industry within the CIS region: • • • • • •
site engineering survey design and engineering construction reaching up to design parameters operation of mining and concentrating facilities maintenance of mining and processing facilities
Our principles of project implementation • • • • • • •
Study of the Customer’s technical expectations at the FEED stage. Better alignment of the offered equipment with the existing solutions of the Customer. Aligning the content and transfer of the operating information model (COBie). Developing a project-specific risk management programme at the conceptual design stage. Development of a detailed project schedule to meet expectations of both the Customer and independent consultant of the bank. Implementing a comprehensive digital 5D model using the leading technologies and tools. Creating the shared information space for better collaboration of the teams of the Customer / EPC Contractor / Suppliers and Subcontractors and more effective project data management (ProjectWise). • Advanced techniques of construction site management as part of the Construction Driven Engineering (Advanced Work Packaging). • Cooperation only with qualified process equipment suppliers and reliable subcontractors.
AAE. Engineering Industrial Value. Republic of Kazakhstan 21 Rakhmadiyev Street, Nur-Alatau micro-district, Bostandyk district, city of Almaty +7 (727) 228 25 65 (Telephone) +7 (727) 228 25 66 (Fax) Info@aaengineering.kz
JSC AK ALTYNALMAS mapping and CAD (computer aided design) used to generate digital underground maps allow companies greater insight into mine planning than ever before. And the automation of machinery improves accuracy, efficiency, reliability, and cost effectiveness.
PAST TO PRESENT Diyar Kanashev, CEO
MISSION, VISION, AND VALUES MISSION: We transform the potential of the subsoil into golden opportunities for society, employees, investors, and other stakeholders. VISION: To become a leading company in the Central Asian gold mining sector. The priority geography of the company’s interests is Kazakhstan. VALUES: - Sustainable development: In our approaches, we focus on long-term and stable development. - Safety: The safety and health of our employees is our priority. - Respect for the environment: We use natural resources rationally and strive to minimize the adverse impact of our activities on the environment. - One team: We help each other and take responsibility for the team result. - Our employees: We value, develop and care for our employees.
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JSC AK Altynalmas has been a major player in Kazakhstan’s mining industry since 1993. The company mines gold ore deposits and other minerals all over the country. It prides itself on being set apart from its competition through its projects, programmes, and employeecentric business methods. Diyar Kanashev has been CEO of the firm for over 10 years and has witnessed the transformation of the sector from a relatively manual operation to what is now a digitised and far more sophisticated series of processes. “The adaptations within the industry have created us golden opportunities,” he tells us. The Asian mining sphere is currently one of change, challenge, promise and, for Diyar, excitement. With access to Kazakhstan’s vast natural resources
and as a growing company, hard work is accompanied by high reward for the employees of Altynalmas. Before joining the company, Diyar worked in the City of London for many years. Initially, this was with Norton Rose (now Norton Rose Fullbright - one of the world’s largest law firms) as a lawyer, with a focus on the legal side of mining industry related transactions. Thereafter, he left his legal career behind to become an investment banker with Merrill Lynch International (now part of one of the world’s biggest banks - Bank of America). After gaining the collective experience in the financial consultation and transactional side of the industry, he decided it was time to pursue his career in the operational side. Diyar looked to become involved directly in mining back home in Kazakhstan, and when the opportunity came up to work with gold ore deposits for Altynalmas, he seized the moment. He has been able to watch the incorporation of different methods, techniques, and tools that have changed and shaped the way Altynalmas functions in the present day.
AAEngineering Group is a General Contractor and performs construction, modernization, and operation of numerous industrial facilities of any complexity. Having in our arsenal more than 10 successfully completed large projects, we have assembled a team of professionals who solve problems in the field of technological research, design, integrated supply of materials and equipment, construction, as well as commissioning and ramping up to design capacity.
Using virtual reality systems even at the design stage helps to find better and more thought-out technical solutions.
From year to year, projects become more technologically and technically complex, and customers tighten their reporting requirements and deadlines at all stages. The struggle for a package of orders is intensifying, and more bidders are participating in the tenders. Different types of sanctions, quarantine, and closure of borders during the pandemic also have a serious impact on the stability of doing business. In conditions of high competition in the field of design and construction, as well as due to the complexity of high-tech projects implementation using classical methods, the company decided to introduce digital technologies into the company’s business processes that will provide full control and transparency at all stages of the project life cycle. This digital transformation has impacted all aspects of the company’s operations ranging from classical design to handover to Client and reaching projects’ top design parameters. The basis for implementing information modeling technologies was the creation of a single information space for all project participants. Bentley systems was chosen as the supplier of automation solutions. ProjectWise became the main system of engineering document flow.
To improve the interaction between the design team and the construction site, as well as to monitor and control the construction and installation work, we began to use laser scanning and photogrammetry systems.
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T +7 (727) 228 25 65
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Construction is another area where digital change is taking place. Synchro Control became the platform that linked the digital model of the object created by the engineers in the office to the construction site, adding time and resources to the developed model. The cloud portal became a place for exchange and storage of engineering and executive project documentation. Technically and technologically complex projects require the integration of many data from different sources. All this variety of information, both graphical and attributive, and constantly changing in time, is collected in one place using the new iTwin technology. Using iTwin services we have an opportunity to analyze, check and visualize any data collected in a single information model of the whole project. Having gone a long way of technical and technological changes, from classical design to building digital twins, our company does not stop there. We not only optimize our current business processes, but also open new areas of activity. The company’s plans for the near future include the use of mixed reality systems based on Microsoft Hololens 2, monitoring and analysis of information received from IoT sensors connected to the iTwin platform, the use of machine learning systems (ML) at the stages of operation. AAEngineering Group has the following awards of prestigious international competitions:
The company’s goal is to implement all projects using digital technologies. The use of various software products in our work allows us to create consolidated information models of all construction facilities with complete attributive information.
Kazakhstan
Equipping construction sites with drones made it possible to promptly receive complete information about the construction progress in the form of a digital textured model collected from photographs.
• the winner in Year in Infrastructure 2018 award category “Construction”. • the winner of Tekla awards 2018 (the Best Industrial Project); • the winner of Russia-wide BIM 2019/2020 (the Best Foreign Project); • the winner in Year in Infrastructure2020 in two award categories: “Land and Site Development” and “Mining and Offshore Engineering”.
E info@aaengineering.kz
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aaengineering.kz
JSC AK ALTYNALMAS The firm’s 2017 Digital Mine Programme is a prime example of this. This initiative was designed to, and has successfully, changed the way methods of mining are practiced at the company. It brought about the shift towards automation and digitisation of processes – increasing operational efficiency, reducing production costs, and improving the safety for, and performance of, personnel through new best practices, innovative approaches, and the newest technology and tools. The programme has delivered over 20 projects in the past three years that have been necessary in the company’s aim to move forward. “When coming across a Tier one level of gold ore, you build a deposit and can exploit it for decades, and even live off that alone. In our
situation however, it is typical for the gold deposits to be geographically distributed and scattered across distances,” Diyar explains. “So, in Kazakhstan we are facing many small-to-medium scale deposits that may not be such an attractive proposition when mined alone, but when collectively consolidated alongside others, you can amass a scale of great value.” Due to the country’s wide variety of terrains and environments, the process of mining gold ore and other minerals dictates the use of multiple forms of mining methods. Rock mechanics, metallurgy, hydrology, and many other disciplines are required on-and-off depending on the location, and mining various areas requires meticulous attention to detail and a lot of research and planning.
SRK Consulting Kazakhstan SRK has been working with Altynalmas since 2012 and has assisted them with a broad range of technical services and disciplines. SRK has trained Altynalmas staff to follow JORC reporting standards for Mineral Resources and Ore Reserves. These standards have been critical in obtaining funding required to finance the growth of new projects.
Mining Project Evaluation SRK specialists can provide an integrated approach to your viability studies (including scoping, feasibility and prefeasibility), reviews, economic evaluations, and risk assessments.
Mineral Exploration SRK’s services include target generation, field mapping, remote sensing and geophysics, geochemistry, mineral system modelling, project management, audits and valuations, exploration strategy and governmental advice.
Geology and Resources
SNAPSHOT
DIGITAL MINE PROGRAMME Among the projects delivered by the Digital Mine Programme are: The automation of maintenance and repair of stationary and movable equipment: • Formation of technological maps for equipment • Transition to the “Equipment Reliability Management” method • Implementation of a tool to improve the quality of MRO planning and optimise resources for MRO
SRK estimates mineral deposits using tools that minimise risks, lower costs, and reduce time frames. We use 3D modelling software combined with geostatistical methods to model commodity distribution. Our specialists comply with CIM, JORC, and other internationally recognised best practices and requirements.
Mine Engineering We offer an independent, technically detailed perspective of project feasibility at all stages of mine development and operation. Existing operations benefit from our reviews, audit, and engineering services.
Water Management
• A cloud-based big-data analysis system powered by artificial intelligence
Water is a precious commodity, and the quantity and quality available is a critical issue for many. We deliver solutions that are appropriate, practical, and cost-effective.
• Implementation of a Manufacturing Execution System (MES)
Mining Geotechnics
The automation of a gold recovery plant:
• Forthcoming migration to a Digital Twin model based of operations The automation of a mining and geological complex: • Implementation of advanced solutions in the field of rock mechanics, slope stability, and geology • Implementation of short interval control empowered by digital tools • Automatic collection and online display of information
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Our geotechnical professionals have extensive experience in designing and operating stable underground mines, pit slopes, tunnels, road cuttings, and tailings dams.
Mine Waste Management SRK develops stable waste management facilities that are designed for practical operation and cost-effective closure, meeting local permitting requirements, and the best global practices.
Focused Advice and Mining Solutions
SRK delivers a range of specialised services to the earth and water resource industries. For mining clients, these services cross the project life cycle, from early stage exploration through development and operations to closure.
Mineral Resource Estimates • Technical Studies • Due Diligence • Exploration For over 45 years, SRK has provided technical services to mining clients. SRK is employee-owned and delivers independent, practical advice. Our engineers and scientists have the multidisciplinary expertise, operational experience and global knowledge to meet your project’s unique requirements.
mbeare@srk.co.uk | +44 7841 8000 58 | srk.com
JSC AK ALTYNALMAS
Albion Process™ Altynalmas to treat multiple feeds through its Albion Process™ leaching hub Altynalmas will use an Albion Process™ leaching hub to treat multiple bulk base metal and precious metal feeds containing varying proportions of Cu-Zn-Co-Au-Ag along with deleterious impurities. After reviewing options, Altynalmas chose Glencore Technology’s Albion Process™ for its project economics, simplicity of operation and tolerances of varying feeds. Albion Process™ uses an IsaMill and Albion leach reactors to combine mechanical and chemical liberation and create a solution that is lower in costs and less prone to process disruption. Albion Process™ has six installations around the world in base and precious metals. The Altynalmas Albion Process™ leaching hub project will commence late 2021.
www.albionprocess.com
The 2017 Digital Mine Programme also carries sustainability benefits. The common use of digital tools means that Altynalmas can conduct its operations using coherent and timely information and yet form its decisions on the basis of reliable data. This in turn, enables the company to run multiple mines at multiple sites format of operations making the most out of what the geology presents. “We are striving to be a 100 percent digitalised company. This will increase our business competitiveness as well as allow us to provide us with new value-producing opportunities,” Diyar tells us. AI technology is one of the many modern innovations to hit the mining industry in Asia, and Altynalmas has been incorporating AI-powered software into its business practices to better monitor the mining process. “One can now monitor the process even without physical presence at the mining plant – for engineers all the 10 | APAC Outlook issue 47
key indicators of the grinding process are now available to display and view live on their smartphone screens, 24-seven,” Diyar tells us. This is a significant step toward migration to the Digital Twins based model of operations and provides the company with a significant advantage over older methods of practice. After the sites can be remotely monitored, operators and employees will be able to provide consultation to on-site personnel from afar, reducing the need for person-to-person contact and operational expenses, as well as the impracticality and cost of employee travel and accommodation. As for worker safety, digitalisation allows for distanced work, meaning that employees need not be on-site as often as they previously had to be. And it has, of course, increased job NO.1 GLOBAL SUPPLIER OF satisfaction levels. COMMERCIAL EXPLOSIVES “The AI powered platform allows to monitor and predict ball charge level as well as the frequency of
Orica EMEA & CIS We’re here to help our customers find success. It’s our expertise, scale and commitment to sustainable and safe solutions that opens up opportunities and creates enduring value. As the world’s largest provider of commercial explosives and innovative blasting systems, we remain committed to providing expert services to the mining, quarrying, construction, and oil and gas markets. From commercial explosives and blasting systems, supply of sodium cyanide for gold extraction and expert ground support services, we have the right people on the ground ready to partner with you in your region.
IGNITING OPPORTUNITY, DELIVERING VALUE
www.oricaminingservices.com
MINING
How Altynalmas will use Albion Process™ to treat multiple feeds for less Altynalmas will treat five feeds through one new Albion Process™ leaching hub, for lower capex and opex and better performance, than from any competing technology. The Albion Process™ plant will include IsaMill™ grinding technology and proprietary Albion Leach Reactors. Refractory gold, refractory gold/ cobalt and polymetallic bulk copper-zinc-gold-silver feeds will be treated through a technology that: 1. 2. 3. 4. 5. 6. 7. 8.
Albion Process™ can make the difference between feasible and not. Testing its amenability is simple. It begins with lab testwork and then a scoping study. If that’s confirmed, it gets variability testwork then engineering. After commissioning, we ensure your plant is working to design rates.
Costs less Tolerates variable feed rates and grades Is simpler to us Is faster to ramp up Delivers target results Requires no pilot plant Is commercially proven Is safer than POx
To learn more, visit AlbionProcess.com
The high availability of Albion Process™ means swapping between feeds will be seamless for their team.
IGNITING OPPORTUNITY, DELIVERING VALUE NO.1 GLOBAL SUPPLIER OF COMMERCIAL EXPLOSIVES
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JSC AK ALTYNALMAS
Leica Geosystems Kazakhstan Hexagon Mine Monitoring are pleased to be a technological partner for monitoring systems of JSC AK Altyn Almas. Today, the most advanced radar of the IDS Georadar company - IBIS ArcSAR Performance is successfully operating at the Pustynnoye Mine. Real-time, all-weather, sub-millimeter accuracy is obtained in continuous radar slope monitoring to support Altyn Almas in achieving safe production.
changing the mill liners to maintain the optimal range for throughput and grinding effectiveness without unnecessarily having to stop the mill for inspections,” Diyar continues. “Before the introduction of the system, our engineers used to measure the ball charge level in the mill manually, which resulted in greater frequency of the stoppage of the production process. “The presence and application of highly sophisticated products such as AI software would definitely make any place to be more attractive for work. We are very proud that both teams (the AI technology provider and of Altynalmas) who have worked restlessly to make that happen.” Alongside this fluidity of company processes, for Diyar, the presence of reliable, uninterrupted supply arrangements to minimise capital deployed and maximise supply distribution is of major importance. Digitalisation is a key enabler for greater accuracy over operational 12 | APAC Outlook issue 47
“THE PRESENCE AND APPLICATION OF HIGHLY SOPHISTICATED PRODUCTS SUCH AS AI SOFTWARE WOULD DEFINITELY MAKE ANY PLACE TO BE MORE ATTRACTIVE FOR WORK” demand for spare parts, consumables and maintenance works. Being in greater control over such things, makes the company a more desirable business partner to those on the supply chain side of the industry and opens up more a prospect for more efficient deployment of capital.
THE FUTURE OF MINING As for forward-focused company plans, Altynalmas aims to commission several new operational plants to expand its services in the industry. The first of these is forecast to be commissioned in the second quarter of 2021 and was engineered with the application of BIM technology (in October 2020, this project won
Bentley Global Infrastructure Award in “Mining and Offshore Engineering” nomination). “Direction of our growth heads towards expanding our mining facilities and plants. We are about to commission the construction of another big project in Kazakhstan, which will be a gold and poly metallic deposit. Because of this, we are gradually evolving to not only mining and producing gold, but also extract certain other commodities such as copper, zinc and cobalt” Diyar explains to us. Elements such as zinc and cobalt are also among the minerals the company is turning its focus to. The branch into a wider range of minerals
MINING
HxGN MineMonitoring Safety first and first in safety
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JSC AK ALTYNALMAS
WORKING WITH GLENCORE Alongside Glencore, Altynalmas is developing the Albion Mega Hub project. This mining plant is designed to extract the value of refractory ore deposits, granting the company the chance to become a mid-tier gold producer globally. Bakhrom Dzhalolov, Chief Operating Officer, explains the context and processes behind the project. Modern gold extraction: “The ore is recovered from gold bearing minerals in the earth’s crust. The two main types of gold deposits are primary and secondary. Secondary gold deposits are formed from the “weathering” or the oxidation of the sulphide minerals in a primary gold deposit by the action of temperature, water, and wind over millions of years. Gold is generally easier, cheaper, and more economical to recover from secondary gold deposits. However, secondary gold deposits in the world are nearly depleted, and the majority of gold produced is from primary gold deposits. Gold from this type of deposit can be free milling (similar recovery method as secondary deposit) or refractory to direct cyanide leaching. In a refractory ore the gold is locked in sulphide mineral as solid solution.”
Extraction investigated: “The company owns several refractory ore deposits. To recover the gold from refractory ore, the gold bearing sulphide minerals are recovered by flotation process to produce a high-grade gold sulphide concentrate. The sulphide concentrate is then converted to oxide mineral to expose the gold to cyanide leaching. Altynalmas completed research using bacterial oxidation on three refractory ore deposits in 2013. In 2018 a feasibility study was completed to install a bacterial oxidation plant to process refractory concentrates form the Akbakai mine cluster and KariernoyePribalkhaskoye. Considering that the company owns several refractory ore deposits, an alternative oxidation process ought to be investigated.”
The Albion Process: “This is another method of sulphide mineral oxidation. The process requires grinding the sulphide concentrate to eight to 10 micron and then oxidising the sulphide mineral by supersonic oxygen injection in the Albion leach reactor. The Albion Process is more versatile and can process different types of concentrate together without affecting the oxidation chemical reaction. By contrast, in a bacterial oxidation the live bacteria are adopted to a specific quality of concentrate and will lose its activity if fed with a different quality concentrate. “In 2019 the Albion amenability test was completed on flotation concentrates from several refractory ore deposits. It was confirmed that the concentrates are amenable to Albion oxidation process. In 2020 the concentrate from gold/silver/copper/zinc Mizek deposit was also confirmed to be amenable to Albion oxidative process. During test work, no problem was encountered when the concentrates were mixed and oxidized in the Albion leach reactor.
Bakhrom Dzhalolov
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“Altynalmas is looking at building a common Albion oxidation plant to process sulphide concentrates from its deposits to recover gold, silver, copper, cobalt, and zinc. Glencore Technology will shortly commence the Class 3 Engineering Design of the Albion Mega Hub, which will be completed in April 2021.”
MINING
provides a degree of natural hedge against fluctuations of the gold price, and also opens up new route of business partnership with other companies interested in treating their non-gold mineral resources. From a business model prospective, acquiring capabilities in treating refractory and polymetallic ore-concentrates gives the company a more robust business model. Firstly, it makes its business not limited by the life period of mines it owns and turns it into an almost perpetual business model. Secondly, it gives exposure to the processing industry margins and
significantly widens its geographic reach extending it to the producers of concentrate on the continent. Last, but not least, development of processing capabilities with application of environmentally friendly hydrometallurgy technology (for more detail, please be referred to the “Working with Glencore” part of the article) is also underpinned by our “Respect for the Environment” value and we hope to thus reduce the impact that the industry makes on our planet. Altynalmas is also focusing on the increase in sustainability practices within the company’s mining methods.
Evolving into a near-completely digitised business has taken them far with regards to sustainability – however, plans are afoot to fully digitise in all areas of the business. And for Diyar, it is very much a case of watch this space.
JSC AK ALTYNALMAS Tel: +77273500200 info@altynalmas.kz www.altynalmas.kz
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JSC AK ALTYNALMAS Tel: +77273500200 info@altynalmas.kz www.altynalmas.kz PRODUCED BY APAC OUTLOOK MAGAZINE