TABLE OF CONTENTS
Outotec Process Technology Selected for Mexican Copper Concentrator
Mine Effluent Treatment Plant Project Awarded to Veolia
The Mosaic Company Announces Settlement of S. Fort Meade Phosphate Mine Litigation
Taiwan's China Steel Invests in Oz
Gresik Establishes Subsidiary to Run Coal Mining Business, Indonesia
Australia's Onesteel Ramps Up Iron-Ore, Eyes New Name
Finland’s Outotec is to supply process technology worth nearly €28 million for Grupo Mexico’s new second copper concentrator in Buenavista del Cobre, Mexico.
Outotec will deliver proprietary process equipment including 54 Outotec TankCell flotation cells in different sizes, four Outotec Larox filters, four PSI particle size analyzers and two COURIER on-line analyzers as well as a sampling system.
The mining technology company will also supervise the installation, and provide commissioning and start-up services. Deliveries are scheduled to be completed in early 2013.
The Buenavista del Cobre (formerly Cananea) concentrator was restarted in 2010 and has a processing capacity of 70 000 tonnes of ore per day. The second concentrator, which is scheduled to be commissioned in the second half of 2013, will add 100 000 tonnes per day of capacity.
The contract for the design and supply of a 1,000-m3/day mining effluent treatment plant to serve Trevali Mining Corporation's Halfmile Zinc-Lead-Silver-Copper Mine in New Brunswick has been awarded to 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 scope of this fast-track design-build project includes the entire mining effluent treatment plant as well as the construction of the building. The treatment plant will provide precipitation, decantation and filtration -- plus, pH correction to provide a treated mine effluent that meets the Canadian Council of Ministers of the Environment (CCME) Water Quality Guidelines for the Protection of Aquatic Life.
"Trevali is pleased to be working with Veolia in providing a compact turnkey water treatment solution for the Halfmile mining project," says Paul Keller, Trevali's Vice President of Operations. "Having the peace of mind of working with a major solution provider allows the company personnel to focus on mine development and production activities."
The plant incorporates metals precipitation using the ACTIFLO® TURBO, a high-rate, small footprint clarification process. The ACTIFLO process uses sand-ballasted settling and a TURBOMIXTM draft tube reactor that allows for a very compact design with high overflow rates and short detention times. This design enables the unit to perform well under dynamically changing flow rates without impacting final effluent quality. 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. Also, the instrumentation and automation package permits remote monitoring of the entire water treatment plant, which is a major benefit for the operation of the plant.
The building will be a 15 m x 22 m steel building with all ancillary services, including a 2 ton overhead crane and water quality laboratory.
The plant is currently in the final construction phase. Trevali has been constructing the Halfmile project civil works since March 2011, and commenced production of the water treatment plant in January 2012, with a planned production ramp-up to a rate of 2,000-tons-per-day.
The Mosaic Company (NYSE: MOS) announced a settlement agreement with the Sierra Club, Manasota-88, and People for Protecting the Peace River in litigation challenging the company's federal wetlands permit at the South Fort Meade mine. This permit allows mining of the Hardee County Extension near Bowling Green, Florida. The settlement, which is subject to approval by the courts, will resolve the pending appellate and trial court proceedings regarding the permit in their entirety and allow mining at the South Fort Meade mine to proceed.
Upon approval of the courts, Mosaic will soon begin mining the Hardee County Extension of its South Fort Meade mine in accordance with federal, state and local permits and approvals. The Hardee County extension will allow 10 additional years of mining at the South Fort Meade Mine, which employs more than 220 Central Floridians. The facility is one of the most efficient and cost effective phosphate mining operations in the world, historically accounting for nearly 20 percent of U.S. phosphate rock production. Since 2010, the mine has operated at a reduced capacity due to the permit challenge. Today's settlement agreement will conclude that litigation and allow the mine to return to its full operating capacity. Any financial charges incurred as a result of the settlement are not expected to be material.
The agreement to expand the South Fort Meade mine took more than nine years from when the permitting process began.
Mosaic is about to begin the process to obtain expansion permits for two other Florida mines, which it expects to take six years.
The agreement requires the plaintiffs to dismiss their challenge to the South Fort Meade permit in exchange for certain commitments by Mosaic, including:
•Preservation of approximately 130 acres of land otherwise eligible to be mined by Mosaic
•Donation of the Peaceful Horse Ranch in DeSoto County to the State of Florida or, alternatively, a not-for-profit organization for permanent conservation
•Certain mitigation, monitoring and site enhancements
•Additional efforts to obtain permanent conservation easements along the Peace River
Mosaic's South Fort Meade Hardee County Extension is 10,856 acres, of which approximately 3,200 acres are to be preserved under the permits authorizing Mosaic's mining activities. The existing permits preserve more than 73% of the site's wetlands and 60% of all streams on-site. Under the terms of the settlement, Mosaic will now have access to mine more than 7,000 acres of land containing viable reserves.
China Steel Corp, Taiwan's largest steel producer, said its board of directors had approved a plan to invest about $A102 million in an Australian coal mine.
It will pay $50 million for a 10 per cent stake in the MDL 162 coal mine, which is located in Queensland and owned by Australia's MCG company, it said in a statement.
In addition, the Taiwanese company will spend $52 million on new facilities and other capital expenditures, according to the statement.
The deal is expected to yield an annual 600,000 tonnes of furnace coal for China Steel, which plans to ship it back to the island for use there, it said.
The steelmaker, which has investments in Australia, Brazil and South Korea, has been exploring overseas opportunities in a bid to boost supply amid growing demand.
In 2009, China Steel paid $95 million for a stake in Brazil's Namisa SA, its first investment in a foreign iron ore miner.
China Steel imports about 20 million metric tonnes of iron ore every year, mainly from Australia and Brazil.
Earlier reports indicated the company was planning to spend about $2.5 billion over the next few years on stakes in overseas coal and iron ore mines.
PT Semen Gresik has established a new subsidiary to run its coal mining and processing business with a total investment of IDR500m (US$55m), reports the Jakarta Post.
The establishment of SGG Energi Prima is part of the company’s strategic measures to secure an energy supply for its cement factories, according to Gresik president director Dwi Soetjipto.
"Semen Gresik as a group is facing challenges to secure a supply of energy and electricity in accordance with its long-term development plans," Dwi said in a statement.
According to Dwi, Gresik needs up to 3.2Mta of coal and would need up to 4Mta when its two new cement plants, located in East Java and South Sulawesi, become operational in the first and third quarters of this year, respectively.
The new subsidiary, SGG Energi Prima, will operate in coal mining activities, coal transportation, coal and its derivatives trading as well as expansion, which covers cooperation with other companies and the acquisition of coal mining areas.
Semen Gresik director, Erizal Bakar, said the company’s initial investment for SGG Energi Prima had reached IDR500bn which was supported by Semen Gresik’s capital expenditure.
"Further investment for SGG Energi Prima will depend on the results of an evaluation concerning the company's acquisition of possible coal mining companies or mining areas," Erizal told The Jakarta Post on Sunday.
SGG Energi Prima, which is based in Gresik, East Java, has yet to operate any mining area.
"We are studying possible collaboration with other companies and the potential take over of mining areas, possibly in Riau, West Sumatra or Kalimantan. We are looking at companies that already carry out operations or remain in the exploration process in mining areas," Erizal said.
The new company was expected to start supplying coal for Semen Gresik this year, according to Erizal.
OneSteel, Australia's second-largest steelmaker, posted an underlying first-half profit ahead of forecasts, lifting its shares 9%, and outlined plans to change its name to reflect its growing mining business and attract new investors.
Managing Director Geoff Plummer said the Peculiar Knob mine in South Australia was due to make its first sales of iron-ore in late 2012, and should take total sales to 11-million tonnes in 2013, nearly double current production.
Based on that projection, OneSteel would rank as Australia's fourth-largest iron-ore miner behind Rio Tinto , BHP Billiton and Fortescue Metals Group .
"By any measure, 11-million tons, that makes us a pretty significant iron ore player," Plummer told reporters.
OneSteel's mainstay steel manufacturing and distribution business has been hard hit by a downturn in Australia's construction and engineering sectors, pushing its steel manufacturing business to another loss for the half.
The company is on target for iron ore sales of six-million tons in the current financial year and is working to double port capacity at Whyalla to handle the production from Peculiar Knob.
Capital spending to find more iron-ore in Australia -- already the world's top supplier -- rose 27% in the last fiscal year and topped the list of exploration spending in Australia, according to government figures.
Plummer said the name OneSteel was a "significant constraint" now that about 40% of revenues came from mining and mining consumables.
"The investor base is far narrower than it needs to be or it should be," Plummer said. Steel now accounts for only 47% of the company's assets, down from 92% five years ago.
OneSteel said in the near term for the mining business, demand from China was expected to remain strong which would underpin high prices compared to historical levels.
Australia alone provides almost half of China's iron ore imports.
McIlvaine Company
Northfield, IL 60093-2743
Tel: 847-784-0012; Fax: 847-784-0061
E-mail: editor@mcilvainecompany.com
Web site: www.mcilvainecompany.com