Engineering & Mining Journal

October 01, 2009

Newmont Starts Up at Boddington

Newmont Starts Up at Boddington

Newmont Mining produced the first gold and copper concentrate at its Boddington mine in Western Australia in mid-August 2009, following start of operations in late July. Ramp-up to design capacity is expected to take about 12 months. Production over the first five years of operation will average about 1 million oz/y of gold and 30,000 mt/y of copper in concentrate. Costs applicable to sales, net of by-product credits, are expected to average $300/oz of gold over the same period. Capital costs are expected to come in at between $2.8 billion and $2.9 billion.

Boddington has been developed as a large open-pit about 130 km southeast of Perth and at full capacity will be Australia’s largest gold mine. Proven and probable gold reserves total 20 million oz, and mine life is estimated at more than 24 years.

The Boddington deposit is located within the Saddleback greenstone belt, a fault-bounded sliver of Achaean volcanic and shallow intrusive rocks surrounded by granitic and gneissic rocks. Pit dimensions will reach 1,000 x 4,000 m at the surface and an ultimate depth of 700 m. Mining equipment includes more than 30 Cat 793 haul trucks, three electric rope shovels, and one hydraulic shovel. A 2.2-km-long overland conveyor delivers ore to the mill.

Mill equipment includes two 60 x 110 primary crushers; four high-pressure grinding rolls; five MP 1000 secondary crushers; and four 26-ft x 44-ft ball mills, which are equipped with the largest twin-pinion drives produced to date.


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U.S. & Canada

Osisko Starts Construction at its Malartic Gold Project

Osisko Mining received Quebec government authorization in late August 2009 to complete development of its Canadian Malartic open-pit gold project and is proceeding with construction of the mine and mill. Construction is expected to take 18 months, and the project is planned to be fully operational by the second quarter of 2011. Production is planned to average 591,000 oz/y of gold over 10 years of operation based on current proven and probable reserves of 6.28 million oz and will exceed 600,000 oz/y in the initial years of operation. Production costs of $319/oz will be in the lowest quartile of world gold producers.


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Latin America

Silver Wheaton Buys into Barrick Silver Production

Barrick Gold and Silver Wheaton closed a transaction on September 22, 2009, whereby Silver Wheaton will acquire 25% of the life-of-mine silver production from Barrick’s cross-border Pascua-Lama gold-silver project in Chile and Argentina (E&MJ, June 2009, p. 4). Silver Wheaton is also acquiring 100% of the silver production from Barrick’s Lagunas Norte and Pierina mines in Peru and its Veladero mine in Argentina until project completion at Pascua-Lama. Silver production from these three mines is expected to average about 2.4 million oz/y over that period of time.


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Africa

First Quantum Suspends Construction at Kolwezi

First Quantum Minerals suspended construction at the Kolwezi tailings project in the Democratic Republic of the Congo (DRC) as of September 16, 2009, following issuance of an order by the General Prosecutor of Katanga to seal the facilities of Kingamyambo Musonoi Tailings SARL (KMT). KMT holds the exploitation permit for the Kolwezi project under a Contract of Association and is owned 65% by First Quantum; 12.5% by Gecamines; 10% by Industrial Development Corp. of South Africa; 7.5% by the International Finance Corporation; and 5% by the government of the DRC.

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Asia

Billiton Shelves Cambodian Bauxite Mine

BHP Billiton and Mitsubishi Corp have pulled out of a bauxite-mining concession in Mondulkiri province following exploratory drilling and have cancelled plans to build an aluminum refinery in the region. The companies have informed the Ministry of Industry, Mines and Energy that they will not use their exclusive right to mine the area under the terms of a 2006 mineral-exploration agreement signed with the Cambodian government, a source inside the ministry said.

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Australia/Oceania

Rio Tinto Reaches 3 Billion Ton Iron Ore Shipment Mark

Rio Tinto announced recently it had reached the historic milestone of exporting 3 billion mt of iron ore from Australia, highlighting the exponential growth of the nation’s iron ore industry since its first shipment in 1966.

The 3 billionth ton was loaded on to the Pacific Ruby, a Cape-size vessel berthed at Rio Tinto’s recently expanded Cape Lambert Port. The 240,000-mt cargo consisted of iron ore from the Yandicoogina and Mesa J mines, and was bound for Posco, the largest South Korean steel producer.


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Exploration Roundup

Anglo American Reports Major Copper Prospect

Anglo American has reported a JORC-compliant inferred resource of 1.2 billion mt grading 1.46% copper and 0.02% molybdenum for its Los Sulfatos copper prospect 6 km south of its existing Los Bronces copper operations in central Chile. The Los Sulfatos porphyry copper and breccia complex is located within and under high mountain ridges at altitudes between 4,000 and 4,500 m approximately 50 km northeast of Santiago. The deposit is open in various directions, and Anglo American expects to develop it into a resource of between 4 billion and 5 billion mt at grades of between 0.8% and 1.0% copper.

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Exploration Briefs

Commander Resources has signed a farm-in and joint-venture agreement with AngloGold Ashanti whereby AngloGold may earn a 51% participating interest in Commander’s Baffin Island gold project in Nunavut, northern Canada, by funding $20 million in exploration expenditures over a six-year period and completing a $1.2-million private placement in Commander shares. The agreement includes a firm commitment by AngloGold to fund $5.5 million in exploration expenditures within the first two years and to complete a minimum of 3,000 m of diamond drilling.

Commander, a Vancouver-based Canadian junior company, will act as project manager for the initial two years. Once AngloGold has vested a 51% interest in the property, a 51:49 joint venture will be formed. AngloGold may then elect within 60 days of vesting to increase its interest in the property to 70% by sole-funding all on-going expenditures to complete a feasibility study within four years on at least one of the prospects on the property.


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Komatsu Introduces Two New Models

Komatsu America Corp. recently unveiled a pair of new earthmoving machines—a mining-class bulldozer and a quarry-class wheel loader—both of which offer a number of performance improvements over previous versions. The company’s new D375A-6 crawler dozer, weighing 157,940 lb and powered by a Komatsu SAA6D170E-5 diesel rated at 636 gross hp, has been designed to compete for market share against Caterpillar’s D10T. The D375A-6’s more powerful engine, offering an 85 net hp increase over the previous D375A-5E0 model, is the same unit used in Komatsu’s PC 1250LC-8 hydraulic excavator (rated at 672 hp) and in the HD465-7 rigid body hauler truck (rated at 715 hp). According to Komatsu, an updated full-U 28.8-yd3 blade on the D375A-6 allows for increased production without increasing blade width or reducing digging force; the shape of the blade is similar to the next-size-class-larger Komatsu dozer, the D475A-5EO. Komatsu says the new dozer includes 16 new standard mining features including high-mounted head lights; battery and starter isolator box; centralized grease points; and manual engine stop switches. Optional mining features include right and left hand platforms with handrails and HID work lights.

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Comprehensive Hardfacing Product Guide

Stoody, a leading supplier of hardfacing and joining welding electrodes, has produced an in-depth Hardfacing and High Alloy Product Selection Guide that includes its latest alloys, product descriptions, application photos that demonstrate the varied potential uses for the products, and other relevant information.

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