MINING UPDATE

 

JULY 2012

 

Mcilvaine Company

 

TABLE OF CONTENTS

 

AMERICAS

Mine Effluent Treatment Plant Project Being Completed by Veolia

Water-Related Infrastructure Big Business in Latin America

Sojitz Invests in One of World’s Largest Barite Mines in Mexico

 

AUSTRALIA

BASF Opens Global R&D Center for Mining in Australia

 

 

AMERICAS

 

Mine Effluent Treatment Plant Project Being Completed by Veolia

A 1,000-m3/day mining effluent treatment plant to serve Trevali Mining Corporation's Halfmile Zinc-Lead-Silver-Copper Mine in New Brunswick is being completed by Veolia Water Solutions & Technologies Canada. The new zinc-lead-silver-copper mine is situated 60 km south of Bathurst and commenced production in January 2012. The treatment plant will provide precipitation, decantation and filtration -- plus, pH correction.

 

The plant incorporates metals precipitation using the ACTIFLO® TURBO, a high-rate, small footprint clarification process. By combining the proprietary Hydrex® reagent to magnesium hydroxide, the solids produced in the ACTIFLO unit will be larger than sodium sulphide, which facilitates downstream filtration. After clarification, the water undergoes sand filtration to remove any remaining solids, followed by pH correction.

 

Water-Related Infrastructure Big Business in Latin America

A recent PWC report indicates that in 2010 and 2011, over one quarter of the Top 40 mining companies’ capital expenditure was in South America. In Chile, the mining industry is probably the most important sector of the economy, representing an average 19.5% of GDP between 2006 and 2010; in the same period, mining exports reached an average of US$37 billion, representing nearly two thirds of total exports. Recent predictions also indicate that the industry in Brazil is expected to be worth $46.44 billion by 2014, which is almost double what

it was worth in 2008.

 

The total annual expenditure on water-related infrastructure serving the mining industry in 2011 is estimated to be worth $7.7 billion, Water and Wastewater International reports. And this is predicted to rise to $13.6 billion by 2014. So, expenditure is expected to almost double in three years. Of a total of $7.7 billion, investment in Chile is estimated at £817 million, Peru $794.4 million and Brazil $475.7 million.

 

The main growth areas are in water supply, reuse, metals recovery, effuent treatment and brine management. The use of advanced technologies for effuent treatment and alternative water supply has also generated a secondary market opportunity in the management of brine. Salt disposal is a growing concern for mines due to stricter regulations and the cost of disposal.

Desalination processes have the strongest potential for growth. In Northern Chile, mining facilities are mainly located where there is little availability for water. In this scenario, and in order to overcome difficulties in obtaining water resources for their activities, mining companies have started to privilege investments in desalination plants.

Sojitz Invests in One of World’s Largest Barite Mines in Mexico

Sojitz Corporation will invest in CPC Mineria, S. De R.L. De C.V.(CPC Mineria), a holder of barite interests in Mexico, acquiring a 49% stake from Chemical Products Corporation (CPC) in the U.S., and plans to manufacture and sell high-purity barite. Operation is scheduled to begin in the summer of 2013, with integrated ore extraction and refining to take place on site. In addition to the exportation of Chinese barite, Sojitz will be able to alternatively provide supply to North America from this stable source in Mexico. This project will also contribute to the diversification of the sources of supply.

 

Barite is a mineral composed of crystalline barium sulphate. Because of barite’s extremely high specific gravity, it is used as a weighting agent for drilling fluid in oil and gas excavation.

 

Drilling fluid is used to prevent blowouts of oil and natural gas caused by collapse of the drilling well wall and to carry drill cuttings from the well bottom to the surface. In addition to conventional oil and gas drilling, drilling fluid is also being used for shale gas and shale oil excavation, which has been increasing worldwide in recent years. As drilling technologies have advanced, oil and gas excavation wells have become longer and deeper, and demand for drilling fluid and the barite used in drilling fluid is increasing accordingly. Consumption is expected to increase from approximately 6.9 million tons in 2010 to 9.3 million tons in 2016 (according to a British private research company).

 

China accounts for a majority of global barite supply, and concerns are rising because of restriction on mining and depletion of mines. Even the United States, which is the largest consumer of barite, using approximately 2.8 million tons annually, imports more than 70% of annual consumption. The majority comes from a single country-China-so diversifying sources is an urgent issue.

 

Sojitz is responding to the dramatic increase in demand for barite caused by new applications including shale gas and shale oil extraction by developing diverse sources outside China, contributing to the use of new energy sources and expanding its business for rare resources.

 

CPC is a privately held company founded in 1933 and is headquartered in Cartersville, Georgia, USA. CPC will continue to be the majority stakeholder in CPC Mineria. CPC produces Barium Salts and Sulfur products from its basic position on raw material barite.

 

CPC’s ownership has had a basic position in barite from locally mined barite ore in Cartersville, Georgia, since 1905. The investment from Sojitz and the beneficiation project of the Sonoran barite will ensure the continuation of CPC’s strong basic position on barite raw material for its Barium Carbonate, Barium Chloride, and other Barium derivatives business.

 

CPC also has a significant participation in Mexico in the largest first quality celestite reserves in the world.

 

Other applications for barite include high-performance electronic material in multilayer ceramic capacitors, glass material, paints, X-ray contrast agent, and automobile brake pads. Sojitz will provide stable supplies to users in Japan and the United States through acquisition of barite, a source for these materials, and production of secondary materials.

AUSTRALIA

 

BASF Opens Global R&D Center for Mining in Australia

BASF recently opened its global mining research and development center at the Australian Minerals Research Centre (AMRC) in Perth, WA. At the new facility, BASF scientists will study specific innovation needs for mineral processing and metal production, to help reduce energy and reuse water at mines in Australia and around the world.

 

Speaking at the official opening, Australian Minister for Resources and Energy, Martin Ferguson, said that Australian mining relies on technological innovation to drive improved productivity. BASF’s research will thus contribute to the global competitiveness of the Australian mining industry, helping to maximize returns to the community and shareholders.

 

“Chemistry is a key enabler to making tomorrow’s mining industry more sustainable,” said Dr. Martin Brudermueller, Vice Chairman of the Board of Executive Directors of BASF SE. “With the latest advances in mining solutions research, BASF aims to help mining operations to minimize water consumption, maximize recovery, reduce land areas consumed by tailings disposal and minimize the cost and time required to rehabilitate sites.”

 

The AMRC site is part of the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia’s national science agency and one of the largest and most diverse research agencies in the world. With a team of six advanced material researchers at the BASF center by the end of 2012 and about 20 researchers over the next five years, focus topics will include advanced rheology modifiers for the improvement of the thickening process for valuables and tailings, as well as modification of the crystallization process in alumina production.

 

“High quality ores are becoming depleted and new mines are often in hostile locations while environmental, health and safety regulations are becoming more stringent. BASF aims to help the industry face these challenges with solutions across our customers’ value chain. This new research and development center will further develop our expertise in areas, which are crucial to meeting future needs,” said Dr. Steffen Kudis, Head of BASF’s Global Oilfield and Mining Solutions businesses.

 

BASF Mining Solutions offers an extensive range of reagents and technologies for mineral processing with current strengths in solid/liquid separation and extraction processes, and also offers reagents for flotation, dispersing, agglomerating and others.

 

 

McIlvaine Company

Northfield, IL 60093-2743

Tel:  847-784-0012; Fax:  847-784-0061

E-mail:  editor@mcilvainecompany.com

Web site:  www.mcilvainecompany.com