World Mining Magazine

Magazine

glencore commodities for the modern world

Issue 26 2018

World Mining

the editor

From IRMA to RMI

Editor

The

Martin Ashcroft

I

n June this year, the Initiative for Responsible Mining Assurance (IRMA) published its Standard for Responsible Mining, the result of ten years of collaboration between stakeholders in the industry. The standard recognizes issues in four ‘overarching principles’: business integrity, planning and managing for positive legacies, social responsibility and environmental responsibility.

It took two years from first draft to final publication, as the deadline for comments was extended when a new draft chapter was added on artisanal and small-scale mining, new members joined the steering committee and partnerships were struck with other interested groups including the Forest Stewardship Council and ResponsibleSteel.

I sincerely hope it will be worth the wait, but we won’t know for another year or so yet. The IRMA Standard is designed to certify mine sites, not mining companies, but none have been certified yet. In this year’s ‘launch phase’, mines will be offered opportunities to self-assess, and diverse stakeholders will ‘test metrics and improve systems’. IRMA-approved independent auditors will evaluate their performance and provide a score.

Full certification is planned for late 2019, after learning from the self-assessments and auditor-verified scoring has been absorbed.

Hard on the heels of IRMA comes another scheme. The Responsible Mining Index 2018 was published a few months ago by the Responsible Mining Foundation (of whom I was

previously unaware). The Responsible Mining Index aims to ‘encourage continuous improvement in responsible mining and support leading practice and learning’. It’s basically a league table of 30 large-scale mining companies that together account for a quarter of the global production of mined commodities, operating over 700 mines between them in more than 40 countries.

Introducing the acronym EESG (economic, environmental, social and governance), the Index assesses and compares company policies and practices across no less than six different areas: economic development, business conduct, lifecycle management, community wellbeing, working conditions and environmental responsibility. As an evidencebased assessment, the Index claims to measure the extent to which companies can demonstrate, rather than simply assert, that they have established responsible policies and practices.

RMF also introduces its own definition of responsible mining as ‘mining that demonstrably respects and protects the interests of peoples and the environment, and contributes discernibly and fairly to broad economic development of the producing country.’ I rather like this, but I can’t help but wonder where all these auditors and researchers are coming from, and whether they might not be better employed mining for minerals, but I’ve always had a bit of a cynical side. If you have experience of one of these schemes, or simply have an opinion to express, do let me know at martin@ogsmag.com.

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Contents Cover story

glencore:

commodities for the modern world Page 6

Page: 3 • The Editor:

From IRMA to RMI 6 • Glencore: Commodities for the modern world

25 • Rio Tinto delivers first iron ore with world’s largest robot • OZ Minerals spends $92 million on Carrapateena in Q2

29 • GHH opens equipment training centre in

India 33 • Azimut and partners complete drilling at

Eleonore South

• NRW awarded South Flank Precinct

earthworks contract

37 • BHP to sell Cerro Colorado mine in Chile • Cobalt Power Group to acquire Blueberry Lake Project

39 • Inca One Gold acquires second Peruvian

processing facility

• Tethyan strengthens exploration position in

Serbia

41 • Vale, BHP sign agreement over Samarco compensation

45 • De Beers Canada to acquire Peregrine Diamonds

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ADVERTISERS 2 Resemin Asia 10 Técnicas Hidráulicas 12 Aceros y Suministros 14 Advanced Braking Technology 16 Shub Machinery 18 Pultrusion Mining 22 ADRIA 23 THEJO / Phoenix Conveyor Belt Systems 26 WeatherSolve Structures 27 Irwin Car and Equipment 28 Pumps 2000 30 NAMMCO 31 Scania Mining 32 Megatraction Equipment Inc 34 A-1 Industrial Supply 36 Canary Systems 38 Flowrox 40 Altra Industrial Motion 42 Dynapower 43 Sai Deepa Rock Drills

44 Mining Finland 46 Montabert 48 Shaw Development 50 CPK Automotive 51 Applied Fiber 54 Epiroc 56 THEJO 58 Digital Control Lab 59 Mobilaris 62 Teadit 63 Axis Mining Technology 64 Cenerg Global Tools 66 Volvo Construction Equipment 72 Westfield Drill Contractors 74 THEJO / CAT Financial / Apex 76 Rammer: Sandvik Mining and Construction 77 PMP: Prairie Machine & Parts 78 World Mining Directory 81 ABB 82 MOS Mobile Screener 83 Hilliard Brake Systems 84 Rockwell Automation

contents

kinross GOLD Page 68

47 • Century restart on track for first production in August • Newmont completes Northwest Exodus extension in Nevada

49 • Vale closes Voisey’s Bay cobalt streaming

transactions 52 • Barrick Gold:

A miracle never to be repeated 68 • Kinross Gold:

Golden opportunities

news & features Page 25

World Mining Magazine Contacts, Advertising Rates & Information News & Features Editor: Martin Ashcroft martin@ogsmag.com Editor Vanessa Ward editor@ogsmag.com Sales sales@ogsmag.com General email contact info@ogsmag.com Design and Artwork artwork@ogsmag.com Managing Director Simon Ward

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glencore commodities for the modern world

One of the world’s largest globally diversified natural resource companies, Glencore operates in metals and minerals, energy products, agriculture and marketing. Its unrivalled asset portfolio, including copper, cobalt, nickel, zinc and thermal coal, is designed to support the needs of the modern world.

World Mining Magazine www.ogsmag.com

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F

ounded in the 1970s as a metals and minerals marketing company, Glencore has grown by merger and acquisition to become one of the world’s largest resource traders and producers, with around 150 mining and metallurgical sites, oil production assets and agricultural facilities which source and market commodities to industrial consumers – such as steel-makers, vehicle manufacturers, power companies and processors of oil and food, the essential ingredients of modern life.

Glencore turned in a solid financial performance in 2017, with adjusted EBITDA of $14.8 billion (up 44% from the year before) and net income attributable to equity holders increasing to $5.8 billion, from $1.4 billion in 2016.

Even for a diversified multinational resource company, commodity differentiation is becoming increasingly

World Mining Magazine www.ogsmag.com

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important. Global automobile OEMs are investing $billions in electric vehicles, so Glencore is developing its commodity mix in recognition of the importance of copper, nickel and cobalt to the modern world.

Glencore commissioned an independent study last year to gauge the incremental demand for these commodities, based on the Electric Vehicles Initiative scenario of 30% electric vehicle market share by 2030.

The findings suggested that an additional 4.1Mt of copper, 1.1Mt of nickel and 314kt of cobalt would be required.

Copper and cobalt in Africa

At the time of writing, the ink is barely dry on Glencore’s results for the second quarter of 2018. The company reported that its own sourced copper production of 696,200 tonnes for the first half year

was 53,300 tonnes (8%) higher than H1 2017 and cobalt production of 16,700 tonnes was an impressive 4,000 tonnes (31%) higher, reflecting the restart/ ramp-up of Katanga.

The Katanga complex in the Democratic Republic of Congo (of which Glencore holds a majority share) includes the Kamoto underground mine, KOV open pit mine, the Kamoto concentrator and Luilu metallurgical plant for the onsite production of refined copper and cobalt, as well as a number of other mines and plants.

Katanga has the potential to become Africa’s largest copper producer and the world’s largest cobalt producer, but in September 2015 the board of Katanga confirmed the suspension of copper and cobalt production for 18 months, pending the completion of a whole ore leach (WOL) processing project. Phase

glencore commodities for the modern world One of the project was commissioned in December 2017, with 2,200 tonnes of copper cathode produced by the end of the month. Full commissioning of phase two of the WOL project is expected to commence in Q4 2018.

Another centre of investment for Glencore is Zambia, where it is majority owner of the Mopani Copper Mine.

In 2015 the decision was taken to restructure production at the mine, to deliver more sustainable growth in the long term. Mopani is also an integrated copper and cobalt producer with operations consisting of four underground mines, a concentrator and a cobalt plant in the town of Kitwe and an underground mine, concentrator, smelter and refinery in the town of Mufulira. The company also has four SXEW plants (solvent extraction and electrowinning), two at Mufulira and two at Nkana.

Since 2014, Mopani has invested over $1 billion in site expansions and upgrades to extend the life of mine by a further 25-30 years. In March 2017, Mopani chairman Moses Chilangwa spoke about a further US$1.3 billion investment in capital projects that include sinking and equipping three new shafts, which are scheduled to come online by the end of 2018. These will more than double Mopani’s mining output from the current 3.8 million tonnes of copper ore per annum to 9 million tonnes by 2020.

World copper

“Katanga has the potential to become Africa’s largest copper producer and the world’s largest cobalt producer”

As well as Africa, Glencore has copper assets in North and South America and Australia. The Collahuasi mine in Chile produces copper concentrate and cathodes. One of the world’s largest copper operations, Collahuasi’s deposits are located on the plateau of northern Chile’s Atacama Desert, 4,400 metres above sea level. Glencore and Anglo American each own 44 per cent, with a Japanese consortium owning the remaining 12 per cent. Glencore’s share of copper production in 2017 was 230,500 tonnes, up 3% on 2016, mainly reflecting marginally improved ore grades and consistently strong milling performance.

In Peru, Glencore owns a 33.75% interest in the Antamina open pit copper and zinc mine, 4,300 metres

above sea level. Antamina’s concentrator is considered to be one of the world’s largest polymetallic processing plants, treating ores containing copper, zinc, molybdenum, silver and lead. Glencore’s share of copper production in 2017 was 142,600 tonnes, in line with 2016, and the share of zinc production was 128,100 tonnes, an increase of 92% on 2016, reflecting the higher proportion of copper/zinc ores being mined, and the inherent nature of the Antamina deposit.

Glencore’s Antapaccay copper operation is located in Espinar Province in southern Peru. Acquired in 2013 through the merger with Xstrata, the operation includes an open pit copper mine and processing facilities in addition to port loading and facilities at Matarani.

Altonorte is a custom copper smelting operation located near the port of Antofagasta in northern Chile. The Glencore operation has the capacity to process 1.6 million tonnes of copper concentrate from third parties per year.

Also in Chile is Punitaqui, a copper mine and concentrator acquired by Glencore as a brownfield development in early 2010.

Glencore also has a 50% controlling stake in Alumbrera, an open pit copper/ gold mine in the Catamarca Province of northwest Argentina, but this is now coming to the end of its life. El Pachón is a copper project located in Argentina’s San Juan Province, five kilometres from the Chilean border, which is yet to be developed.

In Australia, the company’s North Queensland copper mining and processing operations include the Mount Isa Mines complex, Ernest Henry Mining and the copper refinery in Townsville.

Ernest Henry Mining is a copper and gold mining and processing operation located near Cloncurry in northwest Queensland. The operation began production in 1998 as an open pit mine and in 2011 transitioned to underground mining as part of a $589 million life of mine extension project.

Copper ore is processed at the on-site concentrator and trucked to Mount Isa Mines for smelting into copper anode.

In 2016 a 30 per cent stake in Ernest Henry was sold to Evolution Mining.

Operating since 1924, Mount Isa World Mining Magazine www.ogsmag.com

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glencore commodities for the modern world

Mines remains one of Australia’s largest industrial complexes, with two separate mining and processing streams, copper and zinc-lead-silver.

The Mount Isa copper operations host two underground mines, including Australia’s deepest underground copper mine at 1,900 metres. Ore is processed and smelted on site before being transported via rail to the copper refinery and port operations in Townsville for further processing and export.

Zinc

Glencore mines and processes zinc and lead ores in Australia, South America, Kazakhstan and Canada. It also smelts and refines zinc and lead at processing operations in Australia, Canada, Spain, Italy, Germany, the UK and Kazakhstan.

Through its marketing division, Glencore also sells zinc and lead concentrates and by-products such as sulphuric acid, marketing zinc and lead not only from its own facilities, but also from third-party producers.

The company also sells gold and silver,

“Operating since 1924, Mount Isa Mines remains one of Australia’s largest industrial complexes, with two separate mining and processing streams, copper and zinc-lead-silver”

which are typically mined together with zinc and lead ores.

Over half of Glencore’s total zinc and lead reserves and resources are located in Australia, where Mount Isa Mines and McArthur River Mine host the world’s No.1 and No.2 zinc resource bases.

The North Queensland zinc operations include an integrated supply chain comprising mining, processing, transport and logistics, as well as port facilities. The zinc operations at Mount Isa include the George Fisher underground mine, zinc-lead concentrator, zinc-lead filter plant and lead smelter. Glencore also owns the high-grade Lady Loretta underground mine near Mount Isa, where production was temporarily suspended in 2015 but has recently recommenced, with Redpath Australia contracted to run the mine for its remaining six year lifespan.

McArthur River Mine (MRM) in Australia’s Northern Territory is around 970 kilometres south-east of Darwin and includes an open cut mine and processing stream. MRM currently World Mining Magazine www.ogsmag.com

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glencore commodities for the modern world

produces bulk concentrates and zinc and lead concentrates, which are transported by road from the mine site to Glencore’s Bing Bong Loading Facility on the Gulf of Carpentaria.

In 2017, Glencore’s own sourced zinc production of 1,090,200 tonnes was in line with 2016, as a step-up in Antamina zinc production was offset by the disposals of its African mines to Trevali Mining, and lower production at Mount Isa.

Nickel

Glencore’s nickel business produces some of the world’s purest nickel, ferronickel and cobalt. Around twothirds of all nickel is used in the production of stainless steel. The remainder is used for applications including super-alloys, batteries and electroplating.

Glencore is one of Australia’s largest nickel and cobalt producers, and with more than 30 years of nickel reserves, it has one of the longest life of mine reserves. Murrin Murrin is a worldclass hydrometallurgical nickel project

located between Leonora and Laverton in the northeastern Goldfields region of Western Australia. Operated by Minara Resources, wholly owned by Glencore, Murrin Murrin uses high pressure acid leach technology to recover nickel and cobalt from laterite ore. Processed nickel and cobalt is transported via rail to Kwinana, south of Perth, for export to customers worldwide.

In Canada, Glencore’s Sudbury Integrated Nickel Operations (Sudbury INO) include Exploration, two underground mines (Nickel Rim South and Fraser), Strathcona Mill and the Sudbury Smelter.

The company has been mining nickel-copper ores in the Sudbury area of northern Ontario since 1928. The facilities are spread throughout the 60 kilometre-long, oval-shaped geological formation known as the Sudbury basin.

Nickel and copper are the primary metals but cobalt and precious metals, such as gold, silver, platinum and palladium are also produced.

Also in Canada, in the far north of Quebec, is the Raglan mine property,

which has four underground mines and associated infrastructure, with highgrade ore deposits of nickel and copper spanning the nearly 70km property.

The ore extracted from Raglan Mine is crushed, ground and processed on-site to produce a nickel-copper concentrate, which is then sent to the Sudbury Smelter for further processing. The concentrator treats approximately 1.3 million tonnes of ore a year, resulting in more than 30,000 tonnes of nickel-inconcentrate annually.

Raglan Mine’s current operations, which began in 1997, are expected to gradually cease as from 2020, but the Sivumut Project is being developed to extend the life of the mine for an additional 20 plus years.

In Norway Glencore owns and operates Nikkelverk, a low-cost, nickel refinery and sulphuric acid plant in Kristiansand, which it acquired when it merged with Xstrata in 2013. Nickel has been produced here for over 100 years.

The plant ranks among the lowest-cost nickel refineries in the western world and produces high purity nickel in the World Mining Magazine www.ogsmag.com

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glencore commodities for the modern world

form of cathode and crown products.

Glencore also has an interest in Koniambo Nickel, a ferronickel mine and processing plant in New Caledonia. The operation is a JV partnership between Glencore (49%) and Societe Minière du Sud Pacifique SMSP (51%). It includes a pyrometallurgical nickel smelter, power station and 11km overland conveyor, seawater desalination plant and other infrastructure.

Own sourced nickel production of 62,200 tonnes in 2017 was 11,000 tonnes (21%) higher than H1 2017, reflecting Koniambo’s second processing line entering production and the scheduled statutory shutdown at Murrin.

Coal

While Glencore has its eyes set on the future with its interests in copper, nickel and cobalt, it has not turned its back on a more traditional commodity – coal.

Global demand for seaborne thermal coal grew 3.7% during 2017. On the supply side, Glencore’s coal production of 121 million tonnes was 3% down on 2016, as reductions associated with industrial action and adverse weather events were mostly offset by productivity improvements and the company’s higher equity share in certain mines.

Glencore has interests in coal

“In May this year Glencore acquired a 49% interest in the Hunter Valley Operations (HVO) coal mine in NSW, forming a joint venture with Yancoal”

mines in Australia, South Africa (the Goedgevonden complex, Izimbiqa coal, Tweefontein complex and iMpunzi complex) and Colombia (Cerrejón and Prodeco, which includes the La Jagua and Calenturitas mines).

In 2017, production of Australian thermal and semi-soft of 60.6 million tonnes was 1.7 million tonnes (3%) down on 2016, as higher equity ownership of the Newlands and Collinsville mines, and planned rampups (notably Rolleston) and production efficiencies across the board were offset by planned mine closures and the impact of industrial action. South African thermal production of 28.7 million tonnes was in line with 2016, as improved operating performances at the main mine complexes were offset by planned closures of smaller mines.

In Colombia, Prodeco produced 14.6 million tonnes, 2.7 million tonnes (16%) lower than in 2016, initially due to the impact of severe wet weather and later, as a result of a geotechnical event, with productivity adversely affected by the necessary workarounds. At 10.6 million tonnes, Glencore’s share of production at Cerrejón was in line with 2016, as the easement of some restrictions related to dust emissions in 2016 was offset by the disruption caused by unusually heavy rainfall.

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

 

Glencore’s interest in coal began with the acquisition in 1998 of the Cumnock and Mount Owen coal mines in Australia, and it is now one of Australia’s largest coal producers. The Cumnock mine is now part of Glencore’s Ravensworth Operations in New South Wales.

Glencore is the largest coal producer in New South Wales, employing around 4,400 people in eight mining complexes across three coalfields: Hunter Valley, Western Districts and Southern Districts. Coal is exported from the Port of Newcastle and also from Port Kembla.

Ravensworth open cut mine is located in the NSW Hunter Valley, alongside a coal handling and preparation plant. The mine is a joint venture between Itochu 10% and Glencore 90%. The CHPP assets are owned by the JV but operated

by Glencore.

The Mt Owen Complex consists of Mt Owen, Ravensworth East and Glendell open cut coal mines, owned and managed by Mt Owen Pty Limited, a wholly owned subsidiary of Glencore.

The integration of these adjacent operations enables all sites to utilise existing infrastructure and coal handling facilities at Mt Owen Mine.

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“In March this year Glencore agreed to buy Rio Tinto’s 82% interest in the Hail Creek coal mine, as well as its 71.2% interest in the Valeria coal resource in central Queensland for a total cash consideration of US$1.7 billion”

Fifteen kilometres south west of Singleton is the Bulga Complex, which includes Bulga open cut, Bulga underground operations and the coal handling and preparation plant. Bulga open cut and Bulga underground are managed by Glencore, which is also the majority shareholder, via a somewhat complex ownership structure.

Mangoola open cut is in the Upper Hunter Valley, 20 kilometres west of Muswellbrook and approximately 10 kilometres north of the township of Denman. A relatively new mine, the 100% Glencore owned Mangoola open cut commenced production in November 2010, and won the Australian Mine of the Year award in 2013 in recognition of its water, noise, air and dust management and its community engagement.

More recently, in May this year Glencore completed the acquisition of a 49% interest in the Hunter Valley Operations (HVO) coal mine in NSW, following the receipt of regulatory approvals. The HVO is a joint venture with Yancoal, which owns a 51% stake.

Away from the Hunter Valley, Tahmoor Mine is an underground coal mining operation situated in the

glencore commodities for the modern world

Southern Highlands Region of New South Wales, approximately 75km south west of Sydney. Glencore had planned to close the Tahmoor mine in 2018, mainly because of its isolation from the company’s Hunter Valley-based operations, but a resurgence in the price of coking coal allowed the mine to be kept open. It was sold to British industrialist Sanjeev Gupta’s GFG Alliance earlier this year.

The Ulan Mine Complex is one of the most established coal mining operations in the western coalfields of New South Wales. A joint venture between Glencore (90%) and Mitsubishi Development (10%), mining operations consist of two underground mines and an open cut. In 2015 Glencore secured approval to expand the underground mine to extract another 13 million tonnes of coal and extend the mine’s operational life by another two years, until 2033.

In Queensland Glencore employs over 2,600 people, managing the production of more than 38 million tonnes of saleable thermal and coking coal. Collinsville open cut is Queensland’s oldest coal mine, having operated as an underground or open cut mine for almost 100 years. It was

recently operating as a joint venture between Glencore Coal Queensland (55%), Itochu Coal Resources (35%) and Sumitomo (10%), but Glencore bought out its joint venture partners in Collinsville in September 2016, along with the Newlands coal operation.

Glencore also owns a 55% share in Oaky Creek Coal in Central Queensland, which has two underground operations and a coal preparation plant. Open cut operations ceased in December 2006. The underground operations are modern, state-of-the art longwall operations with associated development works. Coal is exported through eastern seaports in Mackay and Gladstone to Japan, Asia, Europe, North Africa and South America.

In March this year Glencore agreed to buy Rio Tinto’s 82% interest in the Hail Creek coal mine and adjacent coal resources, as well as its 71.2% interest in the Valeria coal resource in central Queensland for a total cash consideration of US$1.7 billion. Hail Creek is a large-scale, long-life and low-cost mine producing two-thirds premium quality hard coking coal and one-third thermal coal for export.

Located 75 miles southwest of Mackay,

in 2017 Hail Creek produced about 9.4 million tonnes of coal for export from the Dalrymple Bay Coal Terminal, comprising 5.25Mt of hard coking coal and 4.13Mt of thermal coal. As at 31 December 2017, Hail Creek had resources of 794 million tonnes with proven and probable reserves of 142 million tonnes.

In 2017, Glencore outperformed all its UK-listed major diversified mining peers. Copper and cobalt are expected to play important roles across the value chain of the energy and mobility evolution, from power generation and distribution, to energy storage and vehicles, and coal is not going away anytime soon.

Signing off the 2017 financial report, Glencore’s chief executive officer, Ivan Glasenberg, commented: “Our performance in 2017 was our strongest on record, driven by our leading marketing and industrial asset businesses. We look to the future with confidence. We believe our unrivalled positioning in ‘Tier 1’ commodities and ‘Tier 1’ assets will continue to create compelling value for all stakeholders.”

World Mining Magazine

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World

news

Rio Tinto delivers first iron ore with world’s largest robot

A

n autonomous train that Rio Tinto likes to call ‘the world’s largest and longest robot’, has made its first delivery of iron ore in the Pilbara region of Western Australia.

On 10 July the train, consisting of three locomotives and carrying around 28,000 tonnes of iron ore, travelled 175 miles from Rio Tinto’s mining operations in Tom Price to the port of Cape Lambert. It was monitored remotely by operators from Rio Tinto’s Operations Centre in Perth

A Rio Tinto iron ore train in the Pilbara

for AutoHaul,” said Ivan Vella, Rio Tinto Iron Ore’s managing director Rail, Port & Core Services. “The programme will deliver

“Rio Tinto operates about 200 locomotives on more than 1000 miles of track in the Pilbara” over 900 miles away.

“The safe first delivery of iron ore by an autonomous train is a key milestone

the world’s first fully autonomous, long-distance, heavy-haul rail network, operating the world’s largest

and longest robots.”

AutoHaul is on schedule to complete by the end of the year, unlocking significant safety and productivity gains for the business, as well as optimising the company’s iron ore system by providing more flexibility and reducing bottlenecks.

Rio Tinto operates about 200 locomotives on more than 1000 miles of track in the Pilbara, transporting ore from 16 mines to four port terminals.

OZ Minerals spends $92 million on Carrapateena in Q2

OZ

Minerals’ second quarter report shows development of the Carrapateena project progressing according to plan. Project expenditure for Q2 of $92 million means a total of $729 million of project costs are now committed under contract.

“Carrapateena decline development continues its excellent progress and has safely transitioned to Downer EDI, our new underground mining partner,” said Andrew Cole,

managing director and CEO. “Airstrip construction is complete and processing plant and non-process infrastructure construction is underway.

Province expansion drilling at Khamsin has also returned some very encouraging results.”

Stage two of the Tjungu accommodation village was commissioned in Q2

and earthworks relating to the minerals processing plant and non-processing

infrastructure sites commenced as planned.

Offsite infrastructure works including installation of the main communications

network and high voltage powerline also commenced.

The upcoming quarter will see underground development works expanded to include access development for future underground crusher installations. The first raisebore hole commenced during the quarter in preparation for installing and commissioning the first ventilation rise in Q3.

First concentrate production is planned for Q4 2019.

World Mining Magazine www.ogsmag.com

25

Answers on the wind!

#5

How is a windfence designed? – Part 2 Fence height Fence height depends on a number of factors, the main one is stockpile height, for a perimeter wind fence here is the general rule of thumb.

Where the fence is situated close to the stockpile a height ratio of 1.1H will give excellent protection in many situations.

1.1H

H

For fences on larger stock areas, the height ratio needs to be bigger, say 1.3H to 1.5H.

1.3H to

1.5H

H

Note: In some circumstances fences can be lower than this and still to be effective. The above is a good starting point for discussion.

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GHH opens equipment training centre in India

G “Learning with actual equipment is much more effective than on a simulator”

HH Fahrzeuge, the German manufacturer of special vehicles for mining and tunnel construction, has opened a new training center not far from the town of Udaipur in the northwest of India. GHH sees this as an opportunity to develop a large growth market in India, which is considered by many to be the mega market of tomorrow.

The site is primarily a training center, but also houses a supply and spare parts warehouse for surrounding mines belonging to Hindustan Zinc Ltd. “We don’t just train customers here, we also offer courses for mine operators and our own personnel of course,” says Rajeshwar Singh, managing director

of GHH India Mining and Tunneling Equipment Pvt, the operator of the training center.

In 2016 the GHH group delivered several loaders, dumpers and also drilling equipment to HZL, for use in the Zawar Mala mine near Mochia.

Zawar is one of the oldest mining areas in the world, with a history of more than a thousand years. Headquartered in the Udaipur region, HZL is part of the Vedanta Group. Zinc and lead are its main products, with HZL being the second largest zinc supplier in the world.

Training takes places in lecture halls and also on-the-job with the equipment. GHH has stationed several of its special mining and tunnel construction vehicles on site. “Learning with actual equipment is much more effective than on a simulator,” says Dr Jan Petzold, managing director of GHH headquarters in Gelsenkirchen, Germany. If the concept in Mochia proves successful, other training centers will follow.

GHH develops and manufactures special vehicles such as loaders, dumpers, mixers and drills for mining raw materials. The company is part of the global Schmidt-Kranz Group that supplies a full range of mining machines, treatment plant and automation equipment for mines.

World Mining Magazine www.ogsmag.com

29

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Azimut and partners complete drilling at Eleonore South “Eleonore South is adjacent to the property that hosts the major Eleonore gold mine owned and operated by Goldcorp” Goldcorp’s Eleonore mine

A

zimut Exploration has reported the results of thirty-two diamond drill holes totalling 5,448.6 metres on the Eleonore South Property, jointly owned with Goldcorp and Eastmain Resources. This phase completes the 2017-2018 diamond drilling program of fifty holes for 9,891.6 metres.

Located in the James Bay region of Quebec, Eleonore South is adjacent to the property that hosts the major

Eleonore gold mine owned and operated

by Goldcorp. A new work program is being prepared and will be announced soon.

From 2016 to 2018, Azimut has been the operator of surface exploration work and diamond drilling programs (76 holes totalling 15,134m) that revealed a large tonalite-hosted gold-bearing system with a gold corridor at least two kilometres long by 600 to 700 metres wide.

Consistent anomalous gold values

(>0.5 g/t Au) were found within the mineralized corridor, along with several networks of quartz veins and veinlets, strong sodic alteration, very low sulphide concentrations (<0.5%) and frequent native gold grains.

Future exploration at Eleonore South will focus on two main target types: the network of high-grade veins along the Moni Trend, and the wide low-grade (0.5 g/t to 1.0 g/t Au) gold-bearing system along the Contact Trend.

NRW awarded South Flank Precinct earthworks contract

B

HP Iron Ore has awarded NRW the contract for bulk earthworks and concrete works at the South Flank Precinct project. The work will commence in September 2018 and is expected to take 15 months.

The South Flank project lies 75 miles northwest of Newman in the Pilbara region of Western Australia. The contract is valued at approximately $176

million and will see NRW undertake bulk earthworks and concrete for the overland conveyors and primary crushers, together with ancillary works relating to non-process infrastructure.

NRW CEO and managing director, Jules Pemberton said, “The award of this contract is particularly pleasing given the long standing association of NRW and BHP on resource projects.”

World Mining Magazine www.ogsmag.com

33

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BHP to sell Cerro Colorado mine in Chile

B

HP has entered into an agreement to sell its Cerro Colorado copper mine in Chile to private equity manager EMR Capital.

Cerro Colorado is located in the Atacama Desert in northern Chile and represents one of two copper mining operations of BHP’s Pampa Norte division. In fiscal year 2017, Cerro Colorado produced 65,000 tonnes of copper cathode.

The agreement specifies a cash consideration of US$230 million to be paid to BHP after closing of the

“Cerro Colorado is located in the Atacama Desert in northern Chile”

transaction, plus approximately US$40 million in proceeds from the postclosing sale of Cerro Colorado copper inventory, and a contingent payment of up to US$50 million to be paid in the future, depending on copper price performance.

BHP has been looking for a buyer for over a year, as part of its strategy to divest the smaller mines in its portfolio.

The sale is subject to financing and customary closing conditions, and is expected to close during the fourth quarter of calendar year 2018.

Cobalt Power Group to acquire Blueberry Lake Project

C

obalt Power Group has announced the acquisition of the Blueberry Lake group of claims in the Cassels Township of Ontario, Canada for $94,000, with a net smelter royalty of 2.5 per cent. The Blueberry Lake property consists of 46 claim units comprising approximately 800 hectares of highly prospective geology for cobalt, copper, and silver mineralization. The claims are contiguous with Cobalt Power’s TriEast project.

The Blueberry Lake property is located approximately 5 miles east of the town of Temagami and approximately 20 miles south of the town of Cobalt, Ontario. The property is accessible by forestry roads and by boat.

Lake sediment samples taken by the Ontario Geological Survey in 2004 returned assay values as high as 68 ppm Co. Minimal historical exploration work has been completed on the property, however, as the geological setting

is unconventional for silver-cobalt mineralization that was historically exploited in the Cobalt camp. In 1968, the Blueberry Lake property and surrounding claims were covered by stream sediment and soil geochemical surveys; however, data has been “blacked out” on assessment reports.

The company is fully funded for the 2018 exploration season and plans are underway for an aggressive exploration program.

World Mining Magazine www.ogsmag.com

37

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I

Inca One Gold acquires second Peruvian processing facility

nca One Gold has entered into a definitive purchase agreement with Equinox Gold to acquire Anthem United Inc, which owns a 90 per cent interest in the 350 tonnes per day Koricancha ore processing facility in Peru. The deal is valued at C$16.3 in cash and shares.

Inca One is a Canadian-based mineral processing company, engaged in the production of gold and silver from minerals purchased from government registered small-scale mining producers in Peru. Processing is currently undertaken at its Chala One milling facility in Chala, Southern Peru.

The acquisition more than doubles the company’s current throughput from 100 tonnes per day to approximately 250 TPD. Koricancha is approximately 30 miles from the Chala facility, so economies of scale opportunities will arise from their proximity, including the potential for centralized purchasing, crushing, desorption and smelting services.

“Equinox Gold is focused on becoming a leading mid-tier gold producer and

“Koricancha is a custom built, fully operational, industrial gold ore processing facility”

advancing its core Aurizona and Castle Mountain gold mines,” commented Christian Milau, CEO of Equinox Gold.

“This transaction allows Equinox Gold to retain upside exposure to Koricancha as a meaningful stakeholder of Inca One while staying consistent with the company’s strategy of building and operating significant gold projects.”

Koricancha is a custom built, fully operational, industrial gold ore processing facility strategically situated in the Arequipa region of Peru. It is located at sea level, fully serviced by excellent infrastructure just 10 minutes from the Pan American Highway, within the Nazca-Ocona gold belt in Southern Peru. It is permitted for 350 TPD and currently operating at 150 TPD. Koricancha was first commissioned in July 2015 under the ownership of Anthem United Ltd and achieved commercial production on 1 October 2015. It has been servicing the smallscale mining sector of Peru for three years and has a stockpile of material currently being processed.

Tethyan strengthens exploration position in Serbia

T

ethyan Resources has acquired Serbian mining company Taor, strengthening its portfolio in the area with the addition of Taor’s exploration licenses, located adjacent to Tethyan’s Suva Ruda project. The acquisition increases Tethyan’s landholding to a total of 443 square kilometres in southwest Serbia and northern Kosovo.

The exploration licenses are in the northern part of the Trepca mining district, the largest lead-zinc-silver mining complex in Yugoslavia during the 1970s. The area remains prospective for lead-zinc-silver discoveries as well as porphyry copper-gold mineralisation such as at Tethyan’s Rudnica porphyry

project.

The company has commenced an initial 1,000 metre drill programme

at the priority Kizevak zinc-leadsilver brownfield target, focusing on mineralisation identified by historical exploration and along strike from the past-producing but now inactive

Kizevak open-pit mine, which is currently held by a third party.

“We see the acquisition of Taor as a pivotal moment for Tethyan,” said Fabian Baker, president and CEO. “Tethyan now controls a very significant land package in a historic mining district that includes multiple historic zinc-lead-silver and coppergold exploration targets, as well as previously-producing small-scale mines.”

Tethyan Resources is a gold and base metal mineral exploration company incorporated in England & Wales, focused on the Tethyan Metallogenic Belt in Eastern Europe, mainly Serbia.

World Mining Magazine www.ogsmag.com

39

news

Vale, BHP sign agreement over Samarco compensation

V

ale, BHP and their subsidiary Samarco have reached an agreement with the Brazilian Government and the states of Espírito Santo and Minas Gerais over compensation for the tailings dam disaster, which led to the deaths of 19 people in November 2015

included a civil fine of R$20 billion. The new agreement wipes that out and establishes a period of two years to progress settlement of the R$155 billion civil claim.

The Renova Foundation, the body set up under the first agreement to implement

““The agreement is important because it demonstrates a convergence of interests between the parties” and washed away villages along the Rio Doce.

In 2016, federal prosecutors commenced proceedings for R$155 billion (Brazilian reals), approximately US$41.5 billion, for social, environmental and economic compensation relating to the Samarco dam failure. The initial framework agreement set up in March 2016 also

the clean up, will continue to monitor the execution of the remediation programs, but will be expanded to provide greater participation to the affected communities.

The Renova Board currently comprises seven members, of which six are appointed by the companies and one by the Inter-Federative Committee. Under the

revised structure, the 12 member Inter-Federative Committee will add four members, three from the communities and one from the Public Defense Office.

The Renova Board itself will be expanded to include two additional members, appointed by the affected communities.

“The agreement is important because it demonstrates a convergence of interests between the parties, Vale, BHP Brasil, Samarco, the Federal Prosecution offices, the Federal and State Attorneys’ offices and the Federal and State Public Defenders’ offices, representing a further improvement for the affected people, as it consolidates and broadens the scope of the actions that were already being implemented by the Renova Foundation,” said Fabio Schvartsman, Vale’s CEO.

World Mining Magazine www.ogsmag.com

41

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De Beers Canada to acquire Peregrine Diamonds

Gahcho Kué diamond mine

D

e Beers Canada has entered into an agreement to acquire Peregrine Diamonds Ltd, owner of the high quality Chidliak diamond resource in Canada’s Nunavut Territory, for a total cash consideration of approximately C$107 million.

A total of 74 kimberlite pipes have been identified at Chidliak, including the CH-6 and CH-7 pipes, which are the current focus of Peregrine’s Chidliak phase one diamond development programme. The programme has a total inferred mineral resource in excess of 22 million carats.

“This investment reinforces De Beers Group’s long-term commitment to Canada, following our investment in the Gahcho Kué diamond mine, which entered commercial production last year” The Chidliak resource was discovered in 2008 and is located approximately 120 kilometres northeast of Iqaluit on Baffin Island.

Peregrine’s recent preliminary economic assessment for Chidliak points to the high quality of the CH-6 deposit in

Peregrine Diamonds camp

particular. An estimated grade of 2.41 carats per tonne and a diamond valuation of US$151 per carat (equating to approximately US$360 per tonne) make CH-6 one of the most attractive undeveloped diamond resources in Canada. Peregrine also has exploration properties elsewhere in Nunavut and the Northwest Territories.

“This investment reinforces De Beers Group’s long-term commitment to Canada, following our investment in the Gahcho Kué diamond mine, which entered commercial production last year,” said Kim Truter, CEO, De Beers Canada. “Chidliak is a high value prospect and the Peregrine team has done great work to bring it to this advanced stage. With the transformation of our company in Canada over the past two years, our focused investment in new and innovative mining methods, and our expertise in Canada’s Arctic environments, we believe we are very well positioned to now develop the resource further.”

World Mining Magazine www.ogsmag.com

45

news

Century restart on track for first production in August

N “New Century Resources is aiming to become one of the world’s top ten zinc producers”

ew Century Resources has reported that it is on budget and on schedule for first production in August 2018, after making significant progress in June.

High voltage electrical, civil and sump earth works have been completed, hydrostatic testing and water commissioning are underway in the processing plant and pipeline.

New Century Resources is an Australian base metal development company restarting Century Mine operations in Queensland with the aim of becoming one of the world’s top 10 zinc producers.

The company is upgrading the mine’s existing infrastructure, including a large scale multi train flotation plant,

700-person camp, private airport, mining fleet, grid power connection, 304km slurry pipeline and port facility to bring the mine into production.

The cessation of processing operations by previous owner MMG in early 2016 following depletion of the Century ore reserves presented an opportunity for a focused junior to monetise valuable remaining mineral assets. These include over 2,200,000t of JORC compliant zinc metal equivalent resources within mineralised tailings, and over 1,000,000t of JORC compliant zinc and lead resources in the Silver King, South Block and East Fault Block base metal deposits. In addition, Century hosts several substantial phosphate deposits which are yet to be developed.

Newmont completes Northwest Exodus extension in Nevada

N

ewmont Mining Corporation has completed its Northwest Exodus project, extending mine life from the Exodus underground operation in the Carlin North area for 10 years.

Northwest Exodus is Newmont’s second expansion in the last month adding higher-grade, lower-cost gold production in Nevada. The project was completed safely, ahead of schedule and within budget for $69 million.

Northwest Exodus will add between 50,000 and 75,000 ounces of gold production per year. Its underground infrastructure also provides exploration platforms to support future growth in a

highly prospective gold district.

“Northwest Exodus leverages fit-for-purpose technologies, existing infrastructure and higher-grade ore to lower costs, extend mine life and deliver an internal rate of return of more than 40 percent,” said Tom Palmer, executive vice president and chief operating officer.

The project was designed to support autonomous operations and is currently running two autonomous mobile loaders and pilot-testing autonomous drills to access and recover ore. The operation is also fitted with reliable, high-bandwidth underground WiFi. World Mining Magazine www.ogsmag.com

47

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Vale closes Voisey’s Bay cobalt streaming transactions

V

ale has completed transactions with Cobalt 27 Capital and Wheaton Precious Metals for the sale of a combined 75% cobalt stream from its Voisey’s Bay nickel mine in Newfoundland and Labrador, Canada.

The transactions cover

paid $300 million for a 32.6 per cent share. Once they have received 31 million and 23.8 million pounds of cobalt respectively, the streamed percentages will be halved until production at Voisey’s Bay comes to an end.

The streaming deal enables

“By unlocking the value of the cobalt by-product at Voisey’s Bay, Vale has found a way to resume substantive work on the underground project” the cobalt by-product of the Voisey’s Bay mine, including the ramp-down of production from the existing surface mine and the life of mine production from the Voisey’s Bay underground mine expansion project (VBME).

Wheaton has paid US$390 million for a 42.4 per cent share of finished cobalt production from Voisey’s Bay from 1 January 2021 onwards. Cobalt 27 has

development of VBME,

Vale’s first significant investment announcement in recent years. A feasibility study was completed in early 2015 to expand Voisey’s Bay

operations underground, but although the project was approved by Vale’s board of directors, it was put on hold due to difficult market conditions.

To secure a smooth transition from the open pit to the underground mine, Vale says nickel production from Voisey’s Bay will be maintained at 38 ktpa from 2018 to 2020, ramping up to 45-50 ktpa of nickel contained in concentrate from 2024 onwards.

“By unlocking the value of the cobalt by-product at Voisey’s Bay through this streaming deal, Vale has found a way to resume substantive work on the underground project in Voisey’s Bay and support the market’s increasing demand for nickel, copper and cobalt, as well as uphold its commitment to the Government, our indigenous stakeholders and the people of Newfoundland and Labrador, Canada,” commented Eduardo Bartolomeo, executive officer for base metals.

World Mining Magazine www.ogsmag.com

49

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barrick gold a miracle never to be repeated

The death of its founder earlier this year has not distracted Barrick Gold from its vision to be the No. 1 gold miner in the world. Innovation, exploration and automation come together in the pursuit of this ambition.

World Mining Magazine www.ogsmag.com

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barrick gold a miracle never to be repeated

P

eter Munk, the iconic Canadian entrepreneur and philanthropist who founded Barrick Gold, died on 28 March 2018, at the age of 90. He was a rare individual. Born to be a businessman, Munk employed fellow students to sell Christmas trees in Toronto while still an undergraduate himself.

Munk won design awards in the 1950s for his custom-made hi-fi equipment, before diversifying into a hotel empire in the South Pacific, then having a little dabble in oil and gas. In his late-fifties, when others might be thinking of early retirement, Munk bought a gold mine. He then grew Barrick into the world’s largest gold mining company in less than 25 years. As he said himself, Barrick is “a miracle not to be repeated.

It will go down in the annals of business history.”

In 1986, the purchase of the Goldstrike Mine in Nevada set Barrick on a

trajectory to international expansion, with the subsequent acquisition of mines in South America, Africa and the Australia Pacific region seeing it become, for a while, the largest gold producer in the world.

But largest is not the end game for Barrick Gold. It simply wants to be the best. Over the past three years, the company has optimized its portfolio by divesting high-cost, non-core operations. The proceeds of these divestments have been used to reduce total debt by more than 50 per cent, from $13.1 billion at the end of 2014, to

$6.4 billion at the end of 2017. Although it still has assets on other continents, the company’s portfolio is now focused on high-margin, long-life gold operations in core districts throughout the Americas.

The overriding objective continues to be growing free cash flow per share over the long term. To this end, Barrick has put together a business plan that involves the pursuit of three strategic goals over the next five years. The first is to drive industry-leading margins through operational excellence and consistent execution. The second is World Mining Magazine www.ogsmag.com

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to manage its portfolio and allocate capital with discipline and rigour, and the third is to leverage top talent and the company’s distinctive partnership culture as competitive advantages, building partnerships based on trust with host governments, local communities, NGOs, indigenous people, and others.

Operational update

Barrick is constantly pushing to reduce costs by being the best for productivity and efficiency. While it may produce fewer ounces than in recent years, it generates significantly more free cash flow per share.

In 2017, Barrick’s operations produced 5.32 million ounces of gold, at a cost of sales of $794 per ounce, with a particularly strong performance from Barrick Nevada. This compares to production of 5.52 million ounces of gold in 2016, at a cost of sales of $798 per ounce. Lower production in 2017 primarily reflects the sale of 50 per cent of the Veladero mine on 30 June, and lower production from Acacia as a result of Tanzania’s concentrate export ban.

Barrick outlined its strategic

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“Barrick Gold’s breadth of operations spans the globe. Its key sites include the Cortez District and Goldstrike in Nevada, Hemlo in Ontario, Pueblo Viejo in the Dominican Republic, Lagunas Norte in Peru, and Kalgoorlie in Western Australia”

framework in its 2017 annual report.

Operational excellence, it said, would be driven “through a continuous cycle of optimization, pushing our mines to achieve greater levels of efficiency and productivity, while working to mitigate increasing costs associated with more complex ore types and a shift to more underground mining. This will be aided by investments in digital technology and innovation, which will allow us to identify and accelerate further operational improvements across our portfolio.”

Barrick Gold’s breadth of operations spans the globe. Its key sites include the Cortez District and Goldstrike in Nevada, Hemlo in Ontario, Pueblo Viejo in the Dominican Republic, Lagunas Norte in Peru, and Kalgoorlie in Western Australia, a 50/50 joint venture with Newmont Gold.

Barrick Nevada is an integrated gold mining operation that combines the Cortez and Goldstrike properties. The operation employs both open pit and underground mining methods, and hosts a range of processing facilities including heap leaching, roasting, autoclaving, conventional leaching and

barrick gold a miracle never to be repeated thiosulfate (cyanide-free) leaching.

Pueblo Viejo is located in the Dominican Republic, approximately 60 miles northwest of the capital city of Santo Domingo, and is operated by the Pueblo Viejo Dominicana Corporation (PVDC), a joint venture between Barrick (60%) and Goldcorp (40%).

Barrick’s share of gold production in 2017 was 650,000 ounces, at a cost of sales of $699 per ounce. Gold production in 2018 is forecast to be 585,000-615,000 ounces (Barrick’s share). As of 31 December 2017, Barrick’s share of proven and probable gold reserves at Pueblo Viejo was 7.2 million ounces.

In May this year Barrick announced the conversion of the Pueblo Viejo power plant from heavy fuel oil to natural gas, which is expected to reduce the mine’s average cost of sales by approximately $54 per ounce over the life of the mine, supported in part by higher margins on the sale of excess power to the national energy grid. Barrick is currently advancing prefeasibility-level studies for a plant expansion at the Pueblo Viejo mine that has the potential to significantly increase throughput at the operation. Conversion of the power plant to natural gas is likely to strengthen the economics of the project.

The Hemlo property in Canada consists of Williams, an underground and open pit mine, located approximately 220 miles east of Thunder Bay, Ontario. Previous underground production also came from the Golden Giant and David Bell mines which are now closed. Hemlo produced 196,000 ounces of gold in 2017. Proven and probable mineral reserves as of 31 December 2017 were 1.77 million ounces of gold. Underground mineral reserves at the Williams Mine are projected to sustain underground operations until 2021, while open pit mineral reserves have the potential to support operations until 2027.

The Veladero mine in the San Juan Province of Argentina is located at elevations of 4,000 to 4,850 meters above sea level, approximately 230 miles northwest of the city of San Juan.

Operations include open pit mining of gold-silver ore, two-stage crushing, and extraction of precious metals using

valley-fill heap leaching and MerrillCrowe recovery.

In April 2017 Barrick sold a 50 per cent interest in the Veladero mine to Shandong Gold Mining Co for $960 million. The formation of a 50/50 joint venture at Veladero is the first of three steps outlined in a strategic cooperation agreement. In keeping with the second step in the agreement, the two companies formed a working group to explore the joint development of the Pascua-Lama deposit. As a third step, Barrick and Shandong will evaluate additional investment opportunities on the highly prospective El Indio Gold Belt on the border of Argentina and Chile.

The Kalgoorlie operation in Australia consists primarily of the Super Pit openpit mine, located along the Golden Mile ore bodies which were previously mined from underground. The mine is located adjacent to the town of Kalgoorlie, approximately 350 miles east of Perth, Western Australia. The mine is a 50/50 joint venture with Newmont Mining Corporation.

Kalgoorlie is an open-pit, truck-andloader operation. Barrick’s share of gold production in 2017 was 368,000 ounces.

Its share of proven and probable reserves as of 31 December 2017 was 3.858 million ounces of gold (99.0 million tonnes, grading 1.21 grams per tonne), and its share of gold production in 2018 is expected to be 390,000-440,000 ounces.

The Porgera Joint Venture is an open

pit and underground gold mine situated at an altitude of 2,200-2,700 meters in the Enga Province of Papua New Guinea. The operation is roughly 80 miles west of Mount Hagen and 375 miles northwest of the capital, Port Moresby.

Barrick (Niugini) Ltd. is the 95% owner of the Porgera Joint Venture and is the manager of the operation. Barrick Gold Corporation and Zijin Mining Group each own 50% of Barrick (Niugini) Ltd. The remaining 5% interest in the Porgera Joint Venture is held by Mineral Resources Enga and is divided between the Enga Provincial government (2.5%) and local landowners (2.5%).

Barrick’s share of gold production in 2017 was 235,000 ounces, and its share of proven and probable mineral reserves at 31 December was 2.0 million ounces of gold (13.3 million tonnes, grading 4.78 grams per tonne). In 2018, Barrick’s share of gold production is expected to be 230,000-255,000 ounces.

Although predominantly focused on gold, Barrick has some copper interests, too. The Jabal Sayid copper operation is located 200 miles northeast of Jeddah in the Kingdom of Saudi Arabia. It’s a 50/50 joint venture operation with Saudi Arabian mining company Ma’aden. The first shipment of copper concentrate was made in December 2015, and the mine commenced commercial production in July 2016.

Jabal Sayid produced 43 million pounds of copper in 2017 (Barrick’s share), at a cost of sales of $1.90 per World Mining Magazine www.ogsmag.com

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pound, and all-in sustaining costs of $2.30 per pound. Barrick’s share of proven and probable copper reserves at the end of 2017 was 626 million pounds (11.8 million tonnes, grading 2.40%).

Its share of production in 2018 is anticipated to be 40-55 million pounds.

The Lumwana copper mine in Zambia sits in one of the most prospective copper regions in the world. Lumwana ore, which is predominantly sulphide, is treated through a conventional sulphide flotation plant, producing copper concentrate for smelting.

Lumwana produced 256 million pounds of copper in 2017, and had proven and probable copper reserves of 5.014 billion pounds as of 31 December 2017 (401 million tonnes, grading 0.567%). Production in 2018 is anticipated to be 230-265 million pounds.

Projects update

Barrick continues to advance a pipeline of high-confidence projects at or near its existing operations, with the potential to contribute more than one million ounces of annual production at costs well below its current portfolio average.

Goldrush has the potential to become Barrick’s newest underground mine in Nevada, with first production expected as early as 2021, and sustained production by 2023. The prefeasibility study estimated average production of approximately 450,000 ounces of gold per year, at an average cost of sales of $800 per ounce, and average all-in

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sustaining costs of $665 per ounce.

Goldrush currently has proven and probable gold reserves of 1.5 million ounces, and measured and indicated gold resources of 9.4 million ounces, with significant potential to identify additional resources once underground access to drill the deposit is established.

Ongoing surface drilling in the Red Hill zone of the deposit in 2018 is also expected to support additional resource conversion.

The Deep South project at Cortez will expand underground mining below currently permitted levels, and is on track to contribute average underground production of more than 300,000 ounces per year between 2022 and 2026. The prefeasibility study anticipated a cost of sales of $840 per ounce for mining in the Deep South zone. Optimization work has identified a number of opportunities to reduce these costs, including through the use of autonomous loading with a smart conveyance system, compared to a traditional conveyor system contemplated in the prefeasibility study.

Permitting was initiated in 2016 and is expected to take approximately three to four years, including the preparation of an Environmental Impact Statement.

A Record of Decision on the EIS is expected in the second half of 2019, followed by two years of construction, with initial production from Deep South in 2022.

The construction of a third shaft at Turquoise Ridge in Nevada has the

potential to roughly double annual production to more than 500,000 ounces per year. The contract for shaft sinking was awarded to Thyssen Mining in the first quarter of 2018 and procurement of long lead-time items has begun.

Initial production from the new shaft is expected to start in 2022, with sustained production from 2023. At 15.56 grams per tonne, Turquoise Ridge has the highest average reserve grade in the company’s operating portfolio, and among the highest in the gold industry.

The Lagunas Norte operation in Peru produced 387,000 ounces of gold in 2017, at a cost of sales of $617 per ounce. Production in 2018 is anticipated to be 230,000-270,000 ounces of gold, at a cost of sales of $780-$910 per ounce.

Proven and probable gold reserves as of 31 December 2017 were 4.0 million ounces.

Barrick is evaluating a phased project to extend the life of the Lagunas Norte mine by approximately 10 years. The first phase would be to install grinding and carbon-in-leach processing, and the second would involve installation of a flotation and pressure oxidation circuit, allowing the company to optimize the timing of capital expenditures.

Barrick also maintains a portfolio of greenfield projects that represent significant long-term value. Donlin Gold in Alaska, a 50:50 joint venture with NOVAGOLD, contains 19.5 million ounces of measured and indicated gold resources (Barrick’s share). Barrick is working in

barrick gold a miracle never to be repeated collaboration with NOVAGOLD to optimize the project, including the potential for staged development, while reducing upfront capital and mitigating development risk. The final Environmental Impact Statement was published by the US Army Corps of Engineers in April 2018, with a Record of Decision expected in the second half of the year. The company anticipates decisions on most of the federal and state permits by early 2019.

Exploration update

“In May this year Barrick announced the conversion of the Pueblo Viejo power plant from heavy fuel oil to natural gas, which is expected to reduce the mine’s average cost of sales by approximately $54 per ounce over the life of the mine”

Barrick has a track record of creating value through exploration.

Approximately 80 per cent of Barrick’s total exploration budget of $185-$225 million is allocated to the Americas and is spread between high-quality brownfield projects, greenfield exploration, and emerging discoveries that have the potential to become profitable mines.

The company added 8.0 million ounces of gold reserves in 2017 through mine exploration drilling, proving that even well established operations can still yield exploration results. In these cases, the discoveries can often be quickly incorporated into mine plans, driving improvements in production, cash flow, and earnings.

Barrick drilled more than 18,000 metres at Goldstrike in 2017, adding 1.3 million ounces of proven and probable gold reserves, and 1.5 million ounces of measured and indicated resources. This drilling identified a host of high-grade extensions to known lodes that will be a focus for further drilling in 2018.

Proven and probable gold reserves were also increased by 2.1 million ounces at Turquoise Ridge. Other significant additions included 1.4 million ounces at Cortez, 1.3 million ounces at Goldstrike, 397,000 ounces at Hemlo and 392,000 ounces at Lagunas Norte.

Over 9.0 million ounces of measured and indicated gold resources were added as a result of the formation of Norte Abierto (a 50/50 joint venture with Goldcorp in Chile), net of resources divested at Cerro Casale and Veladero. Roughly 14.0 million ounces of measured and indicated resources were also added as a result of the reclassification of Pascua-Lama reserves to resources.

Barrick’s 2018 greenfield exploration program will focus on the prolific Cortez district in Nevada and the Frontera District on the El Indio Belt in Argentina and Chile. The Fourmile exploration project, just north of the Goldrush deposit, is the focus of attention in Nevada. Drilling to date has intersected mineralization well above the average grade of the measured and indicated resources at Goldrush. Barrick is increasingly confident that Fourmile and Goldrush form part of a seven-kilometre-long mineralized system, similar in length to the mineralization at Goldstrike.

The company plans to drill 24 holes at Fourmile in 2018.

The Alturas project, located in Chile on the El Indio Belt, is a Barrick greenfield discovery with 6.8 million ounces of inferred gold resources as of 31 December 2017. Following completion of a scoping study for a conventional open pit heap leach operation at Alturas, Barrick is now carrying out further studies to evaluate potential enhancements to the project design, while undertaking additional drilling to improve orebody knowledge and grades.

The company has also cultivated partnerships with a number of junior exploration and development companies as it seeks to identify potential new core mineral districts. These partnerships are with ATAC at the Orion project in the Yukon, with Osisko at the Kan property in northern Québec, and with Premier Gold at Cove McCoy in Nevada.

World Mining Magazine www.ogsmag.com

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barrick gold a miracle never to be repeated Digital future

As technology advances, new ideas arrive and new ways of working begin to take hold, even in the mining industry, not renowned as an early adopter of new trends. Barrick, however, understands the potential of the digital world and is committed to exploiting it to the full.

During 2017, the company laid the foundation for its digital transformation through a series of pilot projects primarily focused at its Cortez mine in Nevada. This allowed it to validate the viability of digital solutions and their potential economic returns in a controlled environment.

In 2018, Barrick’s digital strategy will focus on completing version one of the Barrick Data Fabric, an enterprisegrade, big data analytics platform which will provide a unified data environment for the company’s leaders and operators to identify variability and trends, generate real-time data, predict failures and take action to address problems quickly, or even before they arise.

The company is planning the implementation of other digital projects including expanded use of automated processing systems, combined with the introduction of artificial intelligence, implementation of short interval control in open pit, underground and processing areas, expanded implementation of digital work management and predictive maintenance systems, and expanded use of automation, including an autonomous open pit trial, and the implementation of automated underground drills.

While tele-operated mining equipment is a new thing for most of Barrick, one mine has been using it for more than a decade. The Hemlo mine in northern Ontario began using the technology in April 2007. To begin with, the underground mine operations at Hemlo had two autonomous trucks, one chute, (an inclined passage for transporting ore) and one rock breaker, operated from surface thousands of feet above from a single tele-remote chair.

Today, the system has three trucks, a scoop loader, three chutes, two rock breakers and underground conveyor belts that can be operated from surface.

The benefits of the system are clear.

With tele-remote, an operator safely controls the work from a chair on the

“During 2017, the company laid the foundation for its digital transformation through a series of pilot projects primarily focused at its Cortez mine in Nevada”

surface. Autonomous vehicles at Hemlo are isolated from vehicles operated by people and the vehicles are programmed to avoid other autonomous trucks. In 10 years, there have been no incidents or injuries at Hemlo related to the autonomous fleet.

There are benefits in reliability and efficiency, too. Mechanical maintenance is lower on the autonomous trucks than on manually operated trucks, and time is saved by removing the need to clear the mine of blast smoke or wait for people to come up from underground at crew change-out. While people were initially worried about their jobs, the company’s strategy is to move more tons with the same number of people, rather than moving the same number of tons with fewer people.

Jon Laird, mine operations superintendent at Hemlo, understands the wariness, but a decade into the experiment, the technology has expanded and fears of job losses have subsided. “Even I had to be able to digest it before I could see the benefits,” he says. “Once I did, there was no question in my mind that it was the right thing to do. As we bring more automation into the mine, we’re trying to help people understand the real change autonomous technology brings. It’s not the number of jobs, but the nature of work.”

World Mining Magazine

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kinross gold golden opportunities Celebrating its twenty-fifth anniversary this year, Kinross Gold is now the sixth largest gold producer in the world, having built a solid foundation of assets, people and culture to deliver value to all its stakeholders.

â&#x20AC;&#x201A;â&#x20AC;&#x201A;World Mining Magazine www.ogsmag.com

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kinross gold golden opportunities

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H

eadquartered in Toronto, Canada, Kinross Gold was founded by Robert M Buchan in 1993. Today, through organic growth and acquisition, Kinross is a leading global gold producer with a 9,000-strong workforce with operations in North America, Brazil, Russia and West Africa.

Central to the Kinross portfolio are its North American operations – Fort Knox in Alaska, Round Mountain and Bald Mountain in Nevada. These, together with Kinross’ Paracatu mine in Brazil, form the bedrock of the company’s production.

Kinross also has ownership of two West African operations, Chirano in Ghana and Tasiast in Mauritania. Also in its portfolio are the Dvoinoya and Kupol mines in Russia.

Fort Knox, Alaska

Fort Knox is one of Kinross’ largest producing mines and a centre of excellence for the company as one of the few cold weather heap leach facilities in the world. In 2016, the site poured its seven millionth ounce of gold,

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20 years into its mine life. Fort Knox is an open-pit gold mine located near the city of Fairbanks, Alaska in one of the state’s largest gold producing areas.

It is mined by conventional open-pit methods, with ore processed at a mill and heap leach facility. The mill has a capacity of up to 45,000 tonnes per day, with large volumes of lower grade ore and mineralized waste materials processed in the heap leach. Production from the heap leach began in late 2009, which increased mine life and helped to lower costs.

Just this month, Kinross announced that it is proceeding with the Gilmore expansion project at Fort Knox, after gaining mineral rights in December 2017. The expansion is expected to extend the life of the mine to 2030. Early

construction work is expected to begin in Q3 2018 and initial production from Gilmore is expected in early 2020. This initial Gilmore expansion contemplates the first two phases of a potential multiphase layback of the existing Fort Knox pit and construction of a new heap leach pad. With additional potential beyond the Gilmore project, Kinross will continue to explore prospects within the Fort Knox area.

Round Mountain

Round Mountain is an open-pit mine located in Nevada, one of the best mining jurisdictions in the world. It uses conventional open-pit mining methods and processes ore by mill and heap leach. Since January 2016, Kinross has had 100% ownership of Round

kinross gold golden opportunities

Mountain, which is now one of its best run and established mines. The company continues to advance promising initiatives to optimize the operation and potentially extend estimated mine life. Kinross began operating the mine in 2003, and it has since become a continuous improvement leader in the company’s portfolio.

In September last year, Kinross announced that it will be proceeding with the Phase W Expansion, which is expected to extend mining by five years and increase life-of-mine production by 1.5 million Au oz. Phase W includes a layback of the current pit, construction of a new carbon in column (CIC) plant and heap leach pad, additions to the mining fleet and equipment, and relocation of some existing infrastructure. Construction and relocation of infrastructure is expected to be completed by Q2 2019, and initial low grade Phase W ore to be encountered in mid-2019.

Bald Mountain

Situated along the southern extension of the prolific Carlin trend, Bald Mountain is an open-pit mine with a

“Fort Knox is an open-pit gold mine located near the city of Fairbanks, Alaska in one of the state’s largest gold producing areas”

large estimated mineral resource base located in Nevada, and was acquired by Kinross in January 2016. It is the largest mine site by area in the United States.

The mine is a strong fit with Kinross’ portfolio and provides opportunities to leverage Kinross’ open-pit heap leach expertise. The company expects to continue to develop Bald Mountain’s significant upside potential. At yearend 2016, Kinross doubled the mine’s estimated gold reserves to extend mine life. With more than three million ounces of estimated gold resource and a significant pipeline of high-quality targets, the company is exploring further opportunities for additional resource conversions and exploration success.

Brazil

Paracatu is the largest gold mine in Brazil and one of the largest in the world. A long life, cornerstone operation located in Brazil’s Minas Gerais region, Paracatu is an open-pit mine and is expected to process approximately 55 million tonnes of ore per year, with mining operations expected to conclude in 2030. The mill is expected to continue processing stockpiled ore until 2032.

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kinross gold golden opportunities

A focus on continuous improvement is embedded in Paracatu’s operations.

For example, the mine’s Santo Antonio tailings reprocessing project is expected to continue adding low-cost gold ounces to the mine’s production.

Russia

Kupol is a high grade underground mine located in the Chukotka region of the Russian Far East. It is the leading gold mine in Russia and has one of the lowest operating costs in Kinross’ portfolio.

Kupol’s consistently strong operating results make it a model for successfully operating in a remote region, with the nearest major city approximately 200 kilometres away. Supplies and equipment are transported to the mine from around mid-January to early May via a 380-kilometre winter road.

Dvoinoye is also in the Chukotka region of Russia, approximately 100 kilometres north of the Kupol operation.

Commercial production began at the underground mine in October 2013.

Ore from Dvoinoye is transported to the Kupol mill for processing via an all-season road and at peak production the company expects to process 1,200

“Kinross is proceeding with the Gilmore expansion project at Fort Knox, after gaining mineral rights in December 2017. The expansion is expected to extend the life of the mine to 2030”

tonnes of Dvoinoye ore per day. The Kupol mill was expanded in 2013 from 3,500 to 4,500 tonnes per day to process the additional ore. At the Dvoinoye Zone 1 deposit, mine development has commenced, including earthworks and construction of the portal entrances. As a result of continued exploration success at Kupol and engineering optimization work at Dvoinoye, scheduled mill production at Kupol has been extended by one year to 2022.

Mauritania

The Tasiast mine is an open-pit operation in north-western Mauritania, approximately 300 kilometres north of the capital Nouakchott. This operation processes ore via an 8,000 tonne per day mill and dump leach. Kinross is continuing work to enhance the performance of the existing mill and optimize the operation.

The Phase One expansion project at Tasiast is on schedule and on budget and is expected to increase mill throughput capacity from the current 8,000 t/d to 12,000 t/d by the end of June 2018.

Phase One is expected to significantly reduce operating costs and increase World Mining Magazine www.ogsmag.com

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production. In September 2017, Kinross announced that it will be proceeding with Phase Two of the Tasiast expansion to increase mill capacity to 30,000 t/d.

The project is expected to generate strong cash flow and transform Tasiast into a large, world-class mine with lower costs. The Phase Two project is expected to generate significant positive economic benefits for Mauritania and its people through additional taxes, duties, wages and locally supplied goods and services.

Phase Two commercial production is expected to begin late in 2020.

Ghana

Chirano is an open-pit and underground operation located in south-western Ghana, approximately 100 kilometres southwest of Kumasi, the country’s second largest city. In 2016, the site transitioned from mining the Akwaaba deposit to the Paboase underground deposit. Chirano ore is processed at the mine’s mill, which has capacity of approximately 3.5 million tonnes per year.

“The Phase One expansion project at Tasiast is expected to increase mill throughput capacity from the current 8,000 t/d to 12,000 t/d by the end of June 2018”

The exploration strategy remains focused on incremental additions to the mine life, which is currently expected to end in 2020. In 2017, the priorities were assessing the potential for depth extensions of the Akwaaba and Paboase underground mines and determining open pit potential in the gap between the Mamnao Central and South pits.

Outlook

Kinross continues to deliver strong and consistent operating results from its portfolio of mines in its three core regions, having met its production and cost guidance for six consecutive years. Added to this, Kinross has exciting organic growth projects that are expected to bolster long-term growth.

It is very proud to reach and celebrate a significant 25-year milestone and is looking forward to accomplishing its goals through hard work and dedication over the next 25 years.

World Mining Magazine

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mining equipment rentals

GEA Group Peter-Müller-Str. 12 40468 Düsseldorf Germany Tel +49 211 9136-0 chemical@gea.com GEA is one of the largest supplier for process technology and components for sophisticated production processes for many industries worldwide. Across a broad range of mining and mineral operations, GEA offers technologies, equipment & services in evaporation and crystallization, drying, cooling, calcining and conditioning, classification, thickening and dewatering, crud treatment and solvent extraction and wastewater management.

United Mining Rentals (UMR) was born out of a specific niche in the market for both short and longer term rentals for both new and used, Sandvik & Getman equipment for both underground & surface mining and also tunnelling applications.

Coupled with +35 years of experience in the mining business, UMR provides both sales and rental of new & used mobile equipment for various mining & tunnelling operations across the world. In addition, our sister company, QME Mining Services Division (which operates as an International mining and tunnelling contractor), also operates a large fleet of predominately Sandvik equipment.

Tel. +353 (0)87 149 1945 www.unitedminingrentals.com

mineral processing

Salter Cyclones Salter Cyclones specialises in fine solids removal with its own Hydrocyclones and Multi-Gravity Separators. These achieve powerful and precise separations in practical, compact, reliable, operator friendly and economic systems.

Salter Cyclones Limited Tel: + 44 1242 697771 Fax: + 44 1242 690895 Email: sales@saltercyclones.com Web: www.saltercyclones.com

MINPRO

MINPRO International have subsidiary offices in 4 countries all of which have the same business, supplying mineral processing equipment and engineering for the mineral processing industry worldwide. Our main products are AKER Flotation Machines; Hydraulic Roller Mills, Semi Mobile Modular Concentrators, Hydro Cyclone Batteries as well as Polyurethane wear parts for the mineral processing industry.

We deliver complete new mineral processing installations, renovation and upgrade existing mineral processing plants, retrofitting the AKER flotation mechanisms in existing flotation machines as well as engineering services and consultancy

Tel: +48 515 368 833 Minpro International Sp. z o.o. www.minpro.com

mining technology

Adrok is a cutting edge service technology company headquartered in Edinburgh, Scotland, with exclusive global patents to Atomic Dielectric Resonance (ADR) imaging technology. This innovative technology has been developed for use in Oil and Gas, Mining and Civil Engineering sectors. Adrok’s technology has been used in several projects around the world to explore the sub-surface geology and locate accurately and identify precisely the fluids present at great depths providing high resolution without drilling the underground. This subsurface imaging scanner generates ‘virtual borehole’ logs of subsurface geology from the surface. It is lightweight, field rugged and portable, to enable cost-effective mobilisation.

49-1 West Bowling Green Street Edinburgh, EH6 5NX (Scotland, UK) Tel: +44(0) 131 555 6662 Email: info@adrokgroup.com Website: http://adrokgroup.com/

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world mining directory process water treatment

software

GEA Group Peter-Müller-Str. 12 40468 Düsseldorf Germany Tel +49 211 9136-0 chemical@gea.com GEA is one of the largest supplier for process technology and components for sophisticated production processes for many industries worldwide. Across a broad range of mining and mineral operations, GEA offers technologies, equipment & services in evaporation and crystallization, drying, cooling, calcining and conditioning, classification, thickening and dewatering, crud treatment and solvent extraction and wastewater management.

Formed in 1997, Canary Systems provides integrated geo-monitoring solutions for a broad range of mining applications, including open pit, tailings, SW-EX, and underground. We help clients better manage risk, monitor performance, and increase the safety of their operations by tying together the loose ends: the hardware required for automatic or semi-automatic data acquisition – and the software to collect, store, and analyze data in a simple and efficient way on a single combined powerful platform.

We provide turnkey solutions – including system architecture, hardware and software development, telemetry, and instrumentation – as well as individual components customized to and augmenting existing project needs.

Canary Systems, Inc. Mining Group 4732 Oracle Road, Suite 112 Tucson, AZ 85705 USA Tel: 520.887.9800 info@canarysystems.com www.canarysystems.com

Salter Cyclones specialises in fine solids removal with its own Hydrocyclones and Multi-Gravity Separators. These achieve powerful and precise separations in practical, compact, reliable, operator friendly and economic systems.

sump

Salter Cyclones Limited Tel: + 44 1242 697771 Fax: + 44 1242 690895 Email: sales@saltercyclones.com Web: www.saltercyclones.com

scales & weighing equipment

IVAC Industrial Vacuum Systems Ltd., manufactures a powerful pneumatic powered vacuum/ delivery system that allows you to pick-up and deliver your most difficult materials. The materials can be wet or dry including gravel, sand, slimes, sludge’s and water. The powerful, virtually maintenance free vacuum system is able to deliver the materials short or long distances, even up too kilometres through a pipeline or hose. Its is ideal for sump & ditch clean-up, tanks, under conveyors, around crushers and mills anywhere shovels, vacuum trucks or water hoses are being used for your clean-ups today!

Contact: Brad Fryburger Brad.Fryburger@rinstrum.com +1 248 680 0320 Website: www.rinstrum.com

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IVAC Industrial Vacuum Systems Ltd. 35-111 Chartrand Avenue, Logan Lake, BC V0K 1W0 Canada Phone 604-628-3367 Email zereko@zereko.com http://industrialvacuumunit.com

Motors, drives, mechanical power transmission â&#x20AC;&#x201C; all from one supplier.

We have delivered reliable products to the mining industry for decades and being a valued partner with our customers is something we care about very deeply. One way we can help increase reliability is to make sure all the components in your system fit together seamlessly. When you are specifying a power train for your application, we can design and deliver a complete solution with variable speed drives, motors, couplings, bearings, gearing and pulleys.

Take your energy efficiency to the next level with the best possible cost of ownership. With our expertise and extensive product and service offering you can ensure safe processes for machines and people.

To learn more, call ABB or visit www.abb.com/powertrain-mining.

With a MOS H3 series working in-pit, the customer will not need to install and operate other equipment at the feeding hopper installation.

Rock breaker booms, rollers screener and rock crusher are no longer necessary.

For existing conventional feeding hopper: The installed rock breaker boom, roller screen and rock crusher can be switched off. The dumper material is sent directly from the apron feeder to the installed vibrating screen. All the OPEX expenses for these machines (electrical energy, operators, maintenance and so on) will be economized. Since the oversized waste material is already removed in-pit, the OPEX for waste disposal system will be cut. Moreover the feeding hopper will produce less noise and less vibrations, extending its operating life.

For installation of a new feeding hopper: with the MOS H3 series working in-pit, the related CAPEX expenses will be optimized and significantly reduced. Rock breaker booms, rollers screen and rock crusher are no longer necessary.

Also the reduction of the waste size material results in less disposal equipment.

“CUTTING MORE PROCESSING COSTS IN OPEN PIT MINES”

A NEW STANDARD 1. HIGH PRODUCTION RATE OF SIZED MATERIAL: 3000 T/H 2. TOTAL MOBILITY ON EVERY SURFACE AND SLOPE TO STAY CLOSE TO THE EXTRACTION EQUIPMENT 3. HIGH EFFICIENTLY TO LOAD ON TRUCKS ONLY NET MATERIAL, REMOVING STONES AND IMPURITIES 4. CUTTING MINING PROCESSING COSTS, REDUCING THE NUMBER OF TRUCKS, THEIR MAINTENANCE AND MOST OF THE STANDARD EQUIPMENT USED NOWADAYS

MOS S.R.L. info@moscreener.com Via Stra’ 3/B www.moscreener.com 35015 Galliera Veneta, PD, +39 335 1804452 For all mining equipment rentals visit www.unitedminingrentals.com Italy +39 389 1199643

For all mining equipment rentals visit www.unitedminingrentals.com

Are equipment trips slowing down your ore?

Operate to constraints to maximize flow.

Pavilion8ÂŽ drives your operation to maximum potential The Pavilion8 Material Flow Management application provides real-time visibility of complex multiple conveyor systems in a mining facility. By taking advantage of existing data, the application improves performance by initiating preventive or corrective measures prior to a system trip.

Discover how a Pavilion solution can help you operate your facility at maximum efficiency.

Discover.rockwellautomation.com/Mining Pavilion8 is a registered trademark of Rockwell Automation, Inc. Copyright Š 2015 Rockwell Automation, Inc. All Rights Reserved. AD2015-45-US