Nevada Copper
Focuses on Pumpkin Hollow Development
Newmont Says
Opening New Nevada Gold District
Final EIS
Completed for Montanore Project, Montana
Imperial
Metals Starts Up at Red Chris Copper Mine in BC
Dynacor
Receives Construction Permit for New Gold Mill in Peru
Yamana Gives
Go-ahead for High-grade Cerro Moro Mine, Argentina
Endeavour
Silver Increasing Production at El Cubo, Mexico
Outotec to
Deliver Modular SX Technology to South America
Boliden
Expanding in Norway; Pursuing New Nickel Strategy for Finland
Work on Rio
Tinto’s Spain Copper Project to Begin this Year
Russia’s
Alrosa Launches Mining on the Botuobinskaya Pipe
Roxgold Clears
Permitting for Yaramoko Gold Project
Indian Coal
Imports Could Surge This Year
India’s
Largest Manganese Producer to Expand Production
Chinese Coal
Industry Steps Into Production Control
Australian
Major Mining Construction Projects
Sirius Starts
Construction of Nova Nickel Mine
Kintyre
Uranium Project Receives Conditional Environmental Approval
Following passage on December 19, 2014, of a federal land
bill conveying 10,400 acres of federal land to the city of Yerington,
Nevada—land that will subsequently be conveyed to Nevada Copper—the company
outlined updated plans to bring its Pumpkin Hollow copper project into
production. Under the new land-ownership regime, the entire Pumpkin Hollow
project area is being consolidated into a single, privately held land package
owned by Nevada Copper, with all required permits under state jurisdiction.
Nevada Copper now expects to receive all key permits for
open-pit operation at Pumpkin Hollow by June. All permits for underground
operation are already in place.
With land-ownership issues settled, Nevada Copper has
launched an integrated feasibility study to consider Pumpkin Hollow development
as a single, large-scale, combined open-pit/underground project, with a single
concentrator processing 70,000 short tons per day (st/d). The company had
previously planned staged development of the project, with a high-grade
underground mine and mill to be developed ahead of open-pit mining. Under the
combined development plan, mill feed would include an average of 63,500 st/d of
open-pit ore blended with 6,500 st/d of high-grade underground ore.
Nevada Copper anticipates that enhanced mill feed grades
for the large mill, coupled with elimination of the capital required for the
smaller 6,500-st/d mill proposed for the underground project, will provide
better capital efficiency and overall better project economics.
Completion of the integrated feasibility study is targeted
for April.
Nevada Copper President and CEO Giulio Bonifacio said, “We
will continue to preserve our development options with respect to staged
development versus a single, large, integrated project until such time as we
have the results of the integrated feasibility study and can determine our
optimal strategy going forward. In either case, first production is targeted for
late 2016, early 2017, subject to completion of financing arrangements.”
Meanwhile, Nevada Copper is nearing completion of the
circular, 24-ft-diameter, concrete-lined, production-sized shaft it is sinking
to access Pumpkin Hollow’s underground deposits. As of February 10, the shaft
was at the 1,806-ft level, more than 95% of the way toward the main 1,900-ft
haulage level. After reaching the 1,900-ft level, about 700 ft of lateral
development will begin on this level to establish setup locations for
delineation and development drilling and to provide future access to the
underground east ore zones. While this lateral development continues, the shaft
will be deepened to its final depth of 2,160 ft.
An underground drill program totaling 26,000 ft is
scheduled to start in May 2015. The program will focus on enlarging high-grade
zones within the current reserve, especially in areas planned for mining in the
early years, and will provide additional data for mine design while expanding
open mineralized areas.
A Pumpkin Hollow open-pit drill program totaling 74,000 ft
was already in progress as of mid-February.
Denver-based Newmont Mining Corp is going ahead with
building the first phase of its Long Canyon gold mine in Nevada, some 100 miles
from the company's existing operations in the state.
The first phase, which consists of an open pit mine and
heap leach operation, is expected to produce between 100,000 ounces and 150,000
ounces of gold a year over a mine life of 8 years.
First commercial production is expected in the first half
of 2017 and costs are some of the best in the industry with all-in sustaining
costs of between $500 and $600 per ounce.
Thanks to a phased approach to developing Long Canyon,
Newmont has kept the capital outlay to between $250 million and $300 million,
according to a company statement.
Newmont acquired the Long Canyon gold deposit from Fronteer
Gold in April 2011.
The project will be funded through free cash flow and
available cash balances, and leverage Newmont’s existing equipment,
infrastructure and personnel. Capital expenditures will be allocated roughly
equally in 2015 and 2016, with minimal spending in 2017. Project highlights
include:
•High grade oxide ore processed by heap leaching
•Gold reserves of 1.2 million ounces at an average grade of
2.29 grams per tonneiii and highly prospective mineralization over a three mile
strike length
•Estimated annual gold production of between 100,000 and
150,000 ounces over an eight year mine life for the first phase of operation
•Estimated average costs applicable to sales of between
$400 and $500 per ounce and all-in sustaining costs of between $500 and $600
over the life of the mine; in the lowest cost quartile for gold production
•Leveraging 50 years’ experience operating in Nevada by
relying on existing equipment, infrastructure and personnel
Federal and state permits necessary to proceed with
development of the project have been secured following a 36-month study and
public comment period. Once in operation, Long Canyon Phase 1 is expected to
directly employ about 260 people. Newmont will continue to engage and partner
with local and regional stakeholders throughout construction, operations and
closure.
Mines Management, Inc. reported that the U.S. Forest
Service has completed and issued the final Environmental Impact Statement (EIS)
for the Montanore Project. Based on the agency’s analyses of issues considered
throughout the review process, the USFS is also issuing a Draft Record of
Decision (RoD) indicating its intent to authorize the project.
Completion of the final EIS and draft RoD signal
commencement of the final phase of the permitting process for Montanore, which
is located in northwestern Montana.
“The publication of the final EIS is the culmination of 10
years of technical and environmental analysis, including the completion and
distribution of two draft EISs and significant public input, all of which has
been incorporated into the project plan,” said Glenn M. Dobbs, chairman and CEO.
“In light of the Montanore Project’s original approvals in 1993, we are
gratified the project is nearing conclusion of a prolonged process in which
significant improvements have been made to the project’s environmental
footprint, including mitigation to protect important water resources, wildlife
and habitat. Development and operation of the Montanore mine will result in
enhancements to habitat and wetlands which otherwise would be impossible in the
absence of the project and which will contribute to, and protect, the recovery
of local threatened and endangered species which have struggled to gain a
foothold for decades.”
Montanore is an advanced stage exploration project; the
deposit contains 81.5 million tons with average grades of 2.04 oz silver per ton
and 0.74% copper. With publication of the final EIS and draft RoD, the project
enters the final phase of agency authorization. Upon issuance of the final RoD
by the USFS and Montana Department of Environmental Quality, the company will be
authorized to commence activities for the project to prepare a bankable
feasibility study for financing the capital construction of the mine.
Imperial Metals' Red Chris mine is scheduled to produce, on
average, 123,000 mt/y of 27% copper concentrates over a mine life of just over
28 years. (Photo courtesy of Imperial Metals)
Imperial Metals began commissioning the mill and
concentrator at its new Red Chris copper mine in northwest British Columbia in
early February and trucked its first shipments of copper concentrate to the Port
of Stewart, British Columbia, on February 27. The plant processed a little more
than 193,000 metric tons (mt) in February and produced approximately 2,400 mt of
copper concentrate. The plant has a designed throughput capacity of 30,000 mt/d.
Commissioning of the Red Chris flotation circuit with
low-grade ore began on February 15. During the second week of startup, the mill
feed grade was increased using ores from both the East and Main zones of the
mine. The plant’s first full 12-hour operating shift without stoppage took place
on February 22. The plant milled approximately 15,500 mt during the 12-hour
period.
Red Chris process plantRed Chris is scheduled to produce an
average of 123,000 mt/y of 27% copper concentrate over a mine life of 28.3
years. The mine’s production fleet includes a P&H 2800 electric cable shovel and
CAT 793 haul trucks. Mining is initially from the East and Main zone pits, which
will eventually form one large pit.
The company said that, as of early March, the Red Chris
commissioning team was focused on achieving continuous operations and a
consistent final concentrate grade. When satisfied with progress in these areas,
they will place more emphasis on metal recoveries and throughput.
Imperial’s wholly owned Red Chris property is located 80 km
south of the town of Dease Lake in northwest British Columbia. The property
covers a total area of 29,482 ha, comprising five 30-year mining leases covering
5,141 ha and 83 mineral claims encompassing 24,341 ha.
Dynacor Gold Mines has received the construction permit for
its planned new custom gold ore processing plant in Chala, southern Peru. The
Chala plant will have an initial ore processing capacity of 300 mt/d (102,000 mt/y)
and has been designed to be readily expanded to 450 mt/d (153,000 mt/y) and then
to 600 mt/d (204,000 mt/y) by adding additional processing lines and ball mills.
The plant will process ore purchased from small Peruvian
mining companies.
Dynacor is a Canadian company headquartered in Montreal,
Quebec. It currently operates an 85,000-mt/y gold ore processing plant in Huanca,
Peru, which also processes purchased ore. The Huanca plant poured its first gold
in 1998.
The Chala facility will be built on a 135-ha site that is
part of a 200-ha mining concession that Dynacor purchased in March 2011. The
concession is located in the department of Arequipa, district of Chala, in the
heart of one of the most productive gold mining regions of Peru. The total
construction cost is estimated at $10 million and will be financed internally.
The construction permit was issued by Peru’s Ministry of
Energy and Mines.
Work already completed at the Chala site includes: a 5-km
road connecting the site to the Pan-American South highway; a power line
connected to the national power grid; water wells, water storage tanks and a
pumping station; a perimeter security fence and gate; housing facilities for the
company’s employees and construction crews; and milling equipment, including two
7- x 8-ft ball mills that were tested at the Huanca mill. The site has ample
space for tailings ponds for many years of operation.
Yamana Gold announced in mid-February that it will proceed
with construction of its high-grade, low-cost Cerro Moro gold-silver project in
Santa Cruz province, southern Argentina. Planning calls for average annual
production of 135,000 oz of gold and 6.7 million oz of silver during the first
three years of full production. Production over the currently planned mine life
of about eight years will average 102,000 oz/y of gold and 5 million oz/y of
silver.
These life-of-mine production estimates consider only
current mineral reserves. Yamana anticipates that the project will benefit from
additions to reserves through exploration and new discoveries.
Plant throughput is planned at 1,000 mt/d, with head grades
averaging 10.8 g/mt gold and 536 g/mt silver.
Yamana released a feasibility study of the Cerro Moro
project in April 2014 that called for two stages of development. However, the
company has now decided to pursue a single-stage development scenario.
Cash costs of production are estimated at $380 to $400/oz
for gold and $5.35 to $5.50/oz for silver, and all in sustaining costs are
estimated at $547 to $557/oz for gold and $7.60 to $7.80/oz for silver. Total
life-of-mine project capital is estimated at $398 million, including $265
million in initial capital and $133 million for life-of-mine sustaining capital.
Cerro Moro project capital spending in 2015 is expected to
total about $30 million, with more than half of the spending to occur late in
the year when formal construction groundbreaking is scheduled to take place. The
remaining capital will be spent in 2016 and 2017. Production is expected to
begin in the second half of 2017.
Cerro Moro mine production will be from a series of small
open pits and from underground mines on veins.
Endeavour plans to invest $36.5 million on capital projects
for its El Cubo mine in 2015.
Endeavour Silver is increasing production at its El Cubo
silver mine in Guanajuato state, Mexico, from 1,550 metric tons per day (mt/d)
to 2,200 mt/d, with expectations that the expansion will be complete by July.
The additional 650 mt/d of mine production will come primarily from the
V-Asunción mine area, which has thicker mineralized zones amenable to long hole
mining, and the Santa Cecilia mine area, which has narrower but higher-grade
veins.
The added production will be processed at Endeavour’s
Bolañitos plant, 18 km from El Cubo. The Bolañitos plant has available capacity
and comparable circuits to the plant at El Cubo. Production at Bolañitos will be
reduced by a small amount to accommodate processing of more El Cubo ore.
“The main reason for the mine expansion is to drive
operating costs lower and generate free cash flow at El Cubo by taking advantage
of the available plant capacity at Bolañitos,” the Endeavour announcement said.
“As a result, El Cubo will become the company’s largest mine by metal
production. Endeavour received the cooperation of the miners’ union at El Cubo
in finalizing a labor contract that facilitates the mine expansion and helps
establish the short- and long-term viability of the mine.”
Endeavour has three mines in Mexico: El Cubo, Bolañitos and
Guanacevi. With increased production from El Cubo, the company is now
forecasting 2015 production of 6.3 million to 7 million oz of silver and 60,000
to 66,000 oz of gold. Consolidated cash costs on a co-product basis are expected
to come in around $13 to $14/oz for silver and $900 to $975/oz for gold.
Endeavour plans to invest $36.5 million on capital projects
in 2015. The total includes $30 million for mine development, infrastructure and
exploration; $4.3 million for plant infrastructure, equipment and tailings; and
$2.2 million for miscellaneous items. The mine development capital is for
accessing reserves and converting resources into reserves.
Endeavour Silver CEO Bradford Cook said, “We fulfilled our
initial two-year capital expansion and operating turn-around plans at El Cubo in
December 2014, but with precious metal prices still falling, it was clear we
needed to do more to make El Cubo a viable mine. The current mine expansion will
bring operating costs down further and should allow El Cubo to start generating
free cash flow.”
Outotec has won an order for the delivery of its VSFX
modular solvent extraction (SX) technology and services to a brownfield copper
production plant in South America. The customer is making changes to their heap
leaching operation to enhance the copper recovery from secondary sulfide
minerals. These changes in the leaching phase require an upgrade in the
downstream SX plant washing capacity.
“This order demonstrates how Outotec’s revolutionary
modular plant concept provides added value in projects,” said Robin Lindahl,
head of the metals, energy and water business area at Outotec. “Modular
technology enables quick delivery and installation, safe operation as well as
high performance and availability even during maintenance, all backed up by
performance guarantees. With our solution the customer can reach the targeted
production in the planned fast schedule, safely and with minimal construction
work at the site. The technology fulfills the strictest environmental and safety
standards, minimizes the energy consumption and reduces the overall project
risks.”
Outotec has developed the highly acclaimed VSFX technology
in the last few years and launched the technology at the end of 2013. There is
an increasing demand for this concept in various solvent extraction
applications, both in brownfield optimization projects and greenfield plants.
On November 10, Boliden announced plans to expand zinc
production at its smelter in Odda, Norway, and a change of business strategy
from tolling to purchasing nickel concentrates for processing at its Harjavalta,
Finland, copper-nickel smelter.
At Odda, Boliden is investing 350 million Norwegian krone
(about $52 million) to increase production of zinc metal from 170,000 to 200,000
metric tons per year (mt/y). The plant is expected to achieve the new capacity
in the latter half of 2017.
About 80% of the zinc concentrates processed at Odda come
from Boliden mines in Sweden and Ireland, the rest from mines in Canada and
Peru. About 93% of the zinc metal produced is exported to steel mills in Europe,
Scandinavia and Britain for use in producing galvanized steel.
At Harjavalta, Boliden is launching an independent nickel
smelting business, buying nickel concentrates from external suppliers and
selling nickel matte to nickel refineries. For several years, the Harjavalta
plant has been tolling nickel concentrates owned by external parties for a fee.
In 2013, Harjavalta processed approximately 250,000 mt of nickel concentrates
into nickel matte, containing about 25,000 mt of nickel, for further treatment
at external nickel refineries.
Under the new business plan, Boliden expects production to
remain at 25,000 mt/y of nickel in matte. Boliden will buy concentrates from a
variety of mines and sell the nickel matte to nickel refineries.
At Garpenberg, Boliden recently completed an expansion of
mine production from 1.4 million to 2.5 million mt/y. The expansion program
started in 2011 and included construction of a new concentrator, new shafts and
underground facilities, and infrastructure upgrades. Capital investment totaled
3.9 billion Swedish kronor (about $560 million).
The Garpenberg mine produces complex ores containing zinc,
lead, silver, copper and gold. The concentrator produces zinc, lead and copper
concentrates. The zinc and lead concentrates are transported by truck to Gävle
port for onward transport by ship, mainly to Boliden smelters in Rönnskär,
Sweden; Kokkola, Finland; and Odda, Norway. The copper concentrate is trucked to
a rail loading station for onward rail transport to the Rönnskär smelter.
Underground, automated and remotely controlled loading and
haulage at Garpenberg are now based on Sandvik's "AutoMine" system. Ventilation
in the mine is also automated and runs on an on-demand basis, saving on energy
needed to run the fans and provide heating. Water consumption/mt of ore produced
has been reduced through more efficient management and updated equipment.
Advanced nitrogen and water purification systems will also help ensure that
there is no increase in the mine's environmental impact.
EMED Mining recently provided an update for its Rio Tinto
copper project in Spain.
“We recently had a series of meetings between our board of
directors and the representatives of the Andalucian Government who oversee the
regulatory process for our Rio Tinto Copper Project,” said Harry Anagnostaras-Adams,
managing director and CEO for EMED Mining. “We are pleased to have
satisfactorily discussed the proposed conditions of approval and the process for
formalizing permission to start the project works. It seems that all key
stakeholders are working to allow works to be triggered in the second half of
2013.”
EMED maintains the target date of the end of 2015 for
establishing initial base case production of 37,000 metric tons per year (mt/y)
copper-in-concentrate, with construction starting during the second half of 2013
and production beginning in the second half of 2014.
Russian diamond producer Alrosa has started mining ore from
the Botuobinskaya kimberlite pipe at its Nyurba Mining and Processing Division (Nyurba
MPD) in the Republic of Sahka (Yakutia) in Russia’s Far East. The pipe is
expected to produce 230,000 metric tons (mt) of ore and about 1 million carats
of rough diamonds in 2015. When the mine reaches its design capacity of 400,000
mt/y of ore, its diamond production will exceed 2 million carats/y.
Botuobinskaya has been developed as an open-pit mine.
Stripping operations began in 2013. Ore processing takes place at existing
Nyurba MPD processing facilities.
Botuobinskaya is located in the Nakyn ore field, 3 km from
the Nyurbinskaya pipe, the main deposit of the Nyurba MPD. The launch of mining
at Botuobinskaya will compensate for a decrease in production from the
Nyurbinskaya pipe and allow Nyurba MPD to maintain stable production volumes at
7.5 million carats/y of rough diamonds.
According to the Russian ore reserves classification
system, reserves of rough diamonds at Botuobinskaya totaled 93.021 million
carats at an average diamond grade of 5.65 carats/mt as of January 1. Indicated
resources totaled 70.994 million carats an average grade of 5.19 carats/mt.
Under JORC standards, the reserves totaled 71.044 million carats.
The pipe’s diamonds are characterized by a relatively large
proportion of gem-quality and near-gem-quality crystals with a high degree of
transparency.
At the official Botuobinskaya opening ceremony, acting
Alrosa President Ilya Ryashchin said, “Over the past few years, Alrosa has
invested significant funds in building new production capacities. The newly
commissioned Botuobinskaya pipe is the first new pipe in Yakutia over the last
10 years. The development of this deposit is included in Alrosa’s long-term
development strategy, which envisages an increase of diamond production to 41
million carats/y through putting new pipes into operation.”
Alrosa’s 2014 diamond production totaled 36.2 million
carats.
Roxgold Inc. received the exploitation permit for its
Yaramoko gold project in Burkina Faso in late January and was expecting to begin
initial site work shortly thereafter. The exploitation permit was finalized
through endorsement of a Mining Decree by the president of Burkina Faso and
other governmental authorities. The decree formally grants Roxgold the rights to
develop and operate the Yaramoko project.
The Yaramoko project is located in the Houndé greenstone
region of Burkina Faso, approximately 200 km southwest of the capital city of
Ouagadougou. The property is directly south of and contiguous to Semafo’s Mana
gold mine property.
Roxgold released the results of the Yaramoko feasibility
study in April 2014. Probable mineral reserves stand at just under 2 million
metric tons (mt), grading 11.8 g/mt gold and containing 759,000 oz of gold. The
feasibility study envisions an underground mining operation producing an average
of 99,500 oz/y of gold over an initial mine life of 7.4 years.
Pre-production capital costs are estimated at $106.5
million. Average all-in sustaining costs are estimated at $590/oz.
The upper levels of the Yaramoko mine will be accessed
through two spiral declines. At the 5072 level, approximately 240 m below
surface, the double decline access ends, and a single decline progresses from
this level to the 4884 level, 430 m below surface. Twenty-four levels of lateral
development designed to openup multiple working faces and allow operating
flexibility are incorporated into the mine plan.
Mining will be based on long-hole retreat mining on
close-spaced sublevels, with cemented rock backfill used to eliminate
nonrecoverable pillars, maximizing mining recovery to 96%. The feasibility study
assumes initial contractor mining, with engineering and grade control provided
by Roxgold. Owner mining is assumed after approximately five years of operation.
The mine plan is based on a 4.9-g/mt gold cutoff at a
minimum mining width of 1.6 m. A 750-mt/d extraction rate is planned. The
typical stope has a 25-m strike length, a vertical height of 34 m, and full-vein
width. The average vein width before dilution is 4 m.
The processing facility will be sized for 750-mt/d
throughput. The flowsheet includes single-stage jaw crushing, SAG milling,
gravity recovery, leaching and adsorption circuits, gold recovery, and
thickening. Average recoveries are assumed to be 96.9% based on three rounds of
metallurgical test work. Material milled is estimated to be of moderate hardness
with a Bond Ball Work Index of 18 kWh/mt.
The plant will be amenable to expansion at minimum
additional investment in the event that extraction under the current mine plan
is higher than forecast or additional sources of ore feed are developed.
Reuters reported that Anil Swarup, coal secretary for
India, said, as power companies add capacity to meet rising demand even as
millions go without electricity, India’s coal imports are expected to jump 19%
to a record of about 200 million metric tons (mt) this fiscal year. He said
shipments into the world’s third-largest coal importer are, however, likely to
slide back to about 160 million mt next year, starting April 1, as state-run
Coal India Ltd. (CIL) and private companies ramp up output.
India, which buys most of its coal from Indonesia,
Australia and South Africa, is targeting to stop imports of power-generating
thermal coal in the next few years, though purchases of high-grade steelmaking
coal will continue.
He said that CIL, the world’s largest coal miner, is
expected to boost output by 50 million mt in 2015-2016 to 550 million mt. The
government has set it a target of 1 billion mt by 2019-2020. Coal demand was
estimated at 787 million mt for this fiscal year and is going to jump in the
next few years, driven by Prime Minister Narendra Modi’s promise to supply power
to all. About 280 million people in 56 million homes, or about a fourth of
India’s 1.2 billion people, still go without electricity, even though coal-fired
power generation has been rising steadily.
India’s MOIL Ltd. (formerly Manganese Ore India Ltd.) will
double its manganese production from the current level of 1.13 million mt/y by
adding mineable land and upgrading existing operations to meet a predicted
shortage of the metal in the country.
MOIL, which accounts for 65% of India’s manganese
production, has been granted prospecting licenses on 597 hectares in the western
state of Maharashtra, in close proximity to the miner’s existing 11 mines in the
region, a company official said, noting that with the additional acreage, along
with startup of a new production shaft at a nearby mine, MOIL would be able to
double its production over the next three to four years.
The expansion plans of MOIL comes in wake of warnings of a
severe shortage of manganese in the domestic market raised by the Indian Bureau
of Mines (IBM), the government’s multidisciplinary body overseeing the mineral
sector. According to a report prepared by IBM, given the total combined
production of manganese by companies such as MOIL, Tata, Orissa Mining Corp.
(OMC) and Sandur, including current and future expansion projects, the country’s
domestic supply of manganese would not exceed 5 million mt/y compared with total
projected demand of 9 million mt/y by 2020 from the domestic steel industry.
The report stated that at a consumption rate of 9 million
mt/y run-of-mine (ROM) manganese ore, India’s current estimated reserves of 142
million mt would last only 10–15 years beyond 2020. And with no secondary supply
of the metal through recycling, additional metal would have to be made available
through imports unless domestic mining dynamics were changed.
With high-grade manganese ore reserves dwindling and
revision of the threshold value of manganese ore to 10% metal content, the
mining industry is obliged to exploit lower-grade manganese ore that is now
considered waste, the IBM report concluded.
China’s Shanxi province recently released its energy
development strategic objectives for the next five years, which identified its
goals on coal, according to China Daily. The strategic objectives said coal
output will be controlled within the limit of 1 billion metric tons (mt) by
2020. Outbound coal will be controlled within the limit of 600 million mt, and
the province’s energy consumption will be around 260 million mt of standard
coal.
Also, Shenhua Group, China’s largest coal producer, will
reduce output by 10.8% this year or 33 million mt of coal compared to 2014.
Other coal giants like China Coal Energy and Datong Coal Mine Group also put out
production limit plans.
Chinese coal production growth, which has already lasted 14
years, ended in 2014. According to the National Bureau of Statistics, in the
past year, national raw coal output was 3.87 billion mt, down 2.5% year-on-year.
The Australian Bureau of Resources and Energy Economics
(BREE) publishes a detailed list of mining construction projects currently under
development. It also lists projects that are less advanced. The information is
broken down by state and details.
Click here for the entire list.
Nova mineralization is in the form of a magmatic nickel
sulphide deposit.
Sirius Resources reported in late January that construction
is under way at its 100% owned, underground Nova nickel mine near Norseman,
Western Australia. Project development is based on a definitive feasibility
study released in July 2014. At full production, the mine is expected to produce
an average of 26,000 metric tons per year (mt/y) of nickel and 850 mt/y of
cobalt in a nickel concentrate and 11,500 mt/y of copper in a separate copper
concentrate.
First concentrate production is planned for the fourth
quarter of 2016. Mill throughput at design capacity will be 1.5 million mt/y.
Initial mine life is planned at 10 years. Capital cost to develop the project is
estimated at A$443 million.
Nova mine development is being undertaken by underground
mining contractor Barminco under a three-year contract valued at A$129 million.
A boxcut is being opened to provide access to fresh rock for driving of a
decline to access the mine. The contract includes initial mining of the Nova
orebody.
The Nova deposit is a magmatic nickel sulphide deposit. The
initial probable ore reserve totals 13.1 million mt grading 2.1% nickel, 0.9%
copper, and 0.07% cobalt, containing 273,000 mt of nickel, 112,000 mt of copper,
and 9,000 mt of cobalt.
Approximately 83% of the planned production will be from
sublevel open stoping, with the remaining 17% produced from longhole echelon
retreat stoping. Ore and waste will be hauled in 60-mt underground trucks up a
straight, one-in-seven gradient decline. The decline has been designed to allow
conveyor haulage to be retrofitted at a later date if deemed appropriate.
The processing plant will utilize a conventional crushing
process, with a primary crusher fed from stockpiles by a dedicated front-end
loader. Grinding by an open-circuit SAG mill will be followed by a ball mill in
closed circuit with hydrocyclones. Flotation will be through roughing, cleaning,
and cleaner scavenging open circuits, which will be replicated for copper and
nickel. Regrinding on particular streams will be used to increase liberation and
recovery for both circuits.
The Nova exploration camp is being expanded and converted
to become a 200-person temporary construction camp to house the workforce while
the permanent accommodation village is being built. The permanent accommodation
village is scheduled for completion in August.
Cameco reported in early March that Western Australia’s
minister for environment, Albert Jacob, conditionally approved Cameco and
Mitsubishi Development’s Kintyre uranium project in the remote East Pilbara
region of Western Australia. Cameco owns 70% of the project and is the operator;
Mitsubish owns the remaining 30%.
Cameco Australia Managing Director Brian Reilly welcomed
the approval, which followed a high-level environmental impact assessment and
more than four years of extensive community consultation and rigorous
environmental and technical studies. He also said that, while Cameco is
continuing to take steps to develop its Australian projects, no development
decisions will be made until market conditions signal new uranium production is
required.
“For Kintyre, this means advancing the project through the
environmental assessment process, continuing to build strong relationships with
stakeholders, and identifying additional resources to improve the economics of
the project,” Reilly said.
The Kintyre project is located 60 km south of Telfer and
260 km northeast of Newman at the western edge of the Great Sandy Desert in the
East Pilbara region. Measured and indicated mineral resources are estimated at
about 55 million lb of U3O8 at an average grade of 0.58% U3O8. A 2012
prefeasibility study suggested that the open-pit project might produce about 6
million lb/y of U3O8 over a mine life of seven years. However, the study
concluded that to break even, the project would require higher uranium prices or
greater total production.
A decision from Australia’s federal Minister for the
Environment regarding the Kintyre project is pending.
McIlvaine Company
Northfield, IL 60093-2743
Tel: 847-784-0012; Fax: 847-784-0061
E-mail: editor@mcilvainecompany.com
Web site: www.mcilvainecompany.com