Engineering & Mining Journal

August 19, 2008

Tenke Fungurume Cu/Co Project Advances to Meet 2009 Production Startup

Lundin Mining Corp. recently issued an update on the $1.75-billion Tenke Fungurume copper/cobalt project in Katanga Province, Democratic Republic of Congo. Lundin holds a 24.75% interest in Tenke Fungurume. The majority interest (57.75%) is held by by operating partner Freeport-McMoRan Copper & Gold. Upon completion of the first phase of development, the mine is expected to produce about 115,000 mt/y of copper cathode and 8,000 mt/y cobalt. First production is forecast in the second half of 2009.

According to Lundin, the copper and cobalt hydroxide plant design and procurement is substantially complete, while cobalt refinery and acid plant design and procurement are under way. Construction progress has increased over the last several months since the end of the rainy season, aided by additional construction and logistics management brought in by Freeport from various global mining projects.

Tailings embankment construction, concrete installation, structural steel, process tank and pipe rack erection are advanced. SAG mill components, mixer settler cells, and other equipment and bulk materials are on site in anticipation of mechanical equipment and piping installation commencing in August.

The project’s construction and operations work force includes more than 4,500 workers, most of which are Congolese. More than 100 Congolese employees have undergone training at various Freeport global mining operations and are being mobilized to site for construction assistance and pre-production activities.

Lundin said that pre-stripping of the Kwatebala deposit is enabling high grade ore stockpiling to support a rapid plant startup. Last September the project began using a continuous miner in a first-ever application for sedimentary-hosted copper mining. This miner eliminates the need for traditional blasting and crushing of the ore and provides for highly selective mining of high-grade material. Lundin said the continuous miner has met and exceeded performance expectations and a second unit has been ordered.

In late June, supported by results from site exploration and ongoing Freeport process test work, meetings were held on major expansion planning. A series of mine expansion objectives is evolving and studies are advancing for the first phase of oxide plant expansion with construction to potentially commence immediately upon initial operations startup next year.

Versatile Family of Pulse Jet Dust Filters

AIRLANCO Pulse Jet filters have no moving parts to wear out, and come in compact, top- and side-access modular housings. The flters are available in many sizes and filter bag configurations, but the cleaning cycle is the same throughout the line: Dust-laden air or gas enters the filter through a hopper inlet where it is directed toward a deflector that slows the airflow and causes heavier particles to fall directly into the collection hopper. Lighter airborne particles follow the air stream into the dirty air housing where the filter bags are located. The particles collect on the outside surfaces of the filters. The filtered air then flows into the clean air plenum and exits the unit. The clean air plenum houses rows of pulse jet pipes lined up over the rows of filter bags. Periodic signals from a programmable timer control open valves that allow short bursts of compressed air from an external supply to flow through the pulse jet pipes and reverse the airflow in each row of bag filters in sequence. These compressed air pulses dislodge the surface dust from the filters so that it falls into the angled collection hopper, which helps funnel the dust and debris to an airlock for final disposal. Proprietary AIRLANCO venture assemblies at each bag cup draw in extra air during the pulse cycle to amplify the reverse airflow and enhance the removal of dust from the surfaces of the filter bags. These venturi assemblies increase filtration and operating efficiency. www.airlanco.com

July 11, 2008

Lighting Towers

from Australia Allight Pty Ltd., an Australian lighting tower manufacturer, has previously focused on domestic sales of its heavy-duty lighting towers—which are excellent for mining but not economic to transport internationally. Signaling its new international marketing intentions, the company has developed more compact new products suitable for worldwide delivery by container. The new Nightlight 6000 and Nightlight 4000 models are already in production with a 9,000-W tower currently under development. A boom design and hydraulically tilting lamps allow precise illumination of a chosen space. www.allight.com

Asia: Wenchuan Quake Has Limited Impact on Mining

The numbers from the May 12 earthquake in China are staggering. As this edition of E&MJ went to press, the death toll in Sichuan Province had climbed to 68,000 with 288,000 injured and more than 5 million people homeless. The earthquake was measured at 7.9 on the Richter scale and centered in Wenchuan County. Rock slides in the mountainous region had blocked rivers creating "quake lakes" and residents were living in fear of temporary dams giving way.

News reports from the interior of China remain somewhat vague, but E&MJ'ducers. The Sichuan-Chongqing region specifically produces lead, zinc, and aluminum. The output of zinc concentrates in 2007 in Sichuan reached 130,000-140,000 metric tons (mt). Sichuan is the third largest production area for vanadium ores. The earthquake forced most zinc and vanadium mines in Sichuan province to close and most of the zinc and aluminum smelters to halt production.

Indirectly, the earthquake also destroyed the electrical infrastructure and transportation networks. At least 10 zinc smelters in Sichuan, Gansu and Shaanxi are confirmed to be closed. They have a combined total annual capacity of more than 500,000 mt, which represents about 11% of China’s total zinc smelting output.
The largest zinc smelter in Sichuan Province, Sichuan Hongda Co. Ltd., was forced to close. It has an 80,000-mt capacity. A smelter owned by Hanzhong Bayi Zinc Industry Co., Ltd. with an annual capacity of 120,000 mt in Gansu is also closed because of the shortage of electricity. The company’s smelter is 400 miles from Chengdu. "For safety concerns, the local government suggested temporarily closing the mill and we now have closed 70% of its capacity," the company said in a statement. "The smaller zinc smelters nearby also suspended the production and their total capacity is about 150,000 tons."

A total of eight power plants in Sichuan closed because of the earthquake and the transmission system has been disrupted. Eight transformer stations in Sichuan and nearby Shaanxi have also closed. The Chinese metal research institution Antaike Information Development Co., Ltd. estimates that power could be restored by mid-June. If mines are more heavily damaged, the smelters will obviously remain idle.

Aluminum smelters are facing similar, indirect problem with power shortages. When production will start again depends on the power supply and how much damage the earthquake did on the power system, said a spokesperson from Sichuan Aostaral Aluminum Co. Ltd. The annual aluminum smelting capacity in Sichuan exceeds 720,000 mt. Aostaral Aluminum’s annual capacity is 125,000 mt in Sichuan. The region’s largest smelters, Sichuan Meishan Aostaral Aluminum with a capacity of 225,000 mt and Emei Qiya with a capacity of 150,000 mt, are both operating normally.

Transportation has been severely disrupted and smelters were unable to transport metals to other provinces in China. Central China’s mail railway from Baoji to Chengdu remains inoperable. Coal is transported on this railway from Shanxi and Shaanxi to northeast Sichuan Province. That supply line has been interrupted. Sichuan also provides about 40% of China’s natural gas. China’s already stressed power distribution system could fall victim to more outages.

June 23, 2008

Light-Duty Welders Get Stronger Engines

Lincoln Electric has updated its Ranger family of engine-driven welders with new, more powerful engines. With an additional 1- to 5-hp available, depending on the model, the new Ranger models now offer higher generator power ratings and more reserve engine power for welding. The Ranger line, featuring 200-300 amps of  welding and 9,000-11,000 watts of AC generator power capabilities, is ideal for a variety of light construction, maintenance and repair applications, according to the company. They are designed to deliver a high-output, smooth arc for a variety of welding processes, including stick, TIG, MIG, flux-cored and pipe welding, as well as arc gouging. The Ranger 10,000, 3-Phase, and GXT offer professional AC and DC stick welding, while the Ranger 250, 250 LPG, 305G and 305D offer superior multi-process arc performance. www.lincolnelectric.com

June 20, 2008

Common Mining Law Proposed for West African States

The Economic Community of West African States (ECOWAS) and Oxfam America in mid-April announced a proposal for a region-wide mining code that would introduce common social, environmental, and business practice standards across the 15 ECOWAS countries. Ghana and Mali are members of ECOWAS and have substantial gold-mining industries. Other gold producers in the group include Burkina Faso, Nigeria, Senegal and Côte d'Ivoire.

In an April 18, 2008, news article, UN Integrated Regional Information Networks reported that the proposed mining code was launched in Dakar, Senegal, on April 17 and that ratification would be sought from ECOWAS parliaments during 2009. Goals of the code include transparent financial practices, strict environmental standards and assurance that more mining industry revenue ends up in the hands of governments and communities. Consultations are planned with the private sector and others before details of the code are finalized and the code comes before ECOWAS member states for a vote.

National mining codes were weakened in many countries in the 1990s when the World Bank pushed governments to deregulate, the article states, with countries in the region competing with each other to attract foreign investors.

Helene Cisse, a Dakar-based lawyer and a legal consultant on the mining code, was quoted in a Voice of America article as saying meaningful partnership among all concerned is the only way mining can be profitable in the long run. "We need productive investment. But it must be for the sake of everybody, for the interest of everybody. And this is the basic idea of this mining code, to convince the people that there is no durable development, human development, if there is no partnership."

In a separate development, Ghana’s Minister of Mines Esther Obeng Dapaah said in an address to a meeting of the U.N. Conference on Trade and Development (UNCTAD) in Accra, Ghana, that Ghana will amend its laws to gain more benefit from its mining sector. "Our laws will have to be amended. At the moment the laws are so liberal. The idea was to attract investment, but we are willing to take a look at our laws again," the minister told delegates at a forum on how developing nations can benefit more from high commodities prices, Reuters reported on April 23. "A committee is being organized to look into mining activities in Ghana and how Ghana can benefit from mining," Dapaah said.

Dapaah also said that Ghana had relied too much on the exploitation of gold, diamonds, bauxite and manganese, and would move to increase production of other minerals, such as kaolin, limestone, salt and columbite-tantalite.

First Gold Poured from Frog's Leg UG Ore (Australia/Oceania)

La Mancha Resources and its Australian joint-venture partner Dioro Exploration reported on May 13 that the first gold had been poured from ore mined underground at their Frog’s Leg project near Kalgoorlie, Western Australia. The ore was processed at Dioro’s 1.2-million-mt/y Jubilee mill south of Kalgoorlie. The Frog's Leg underground project is based on extensions of ore mined from an open-pit that produced 116,600 oz of gold during 2004–2005. Underground access is via a decline from the open-pit.

La Mancha is 51% owner and operator of the Frog’s Leg project; the remaining interest is owned by Dioro.
The underground Frog’s Leg mine is forecast to produce an average of 83,000 oz/y of gold over the next seven years, based on reserves of 3.65 million mt grading 5.29 g/mt of gold. This reserve and the related mining plan do not take into account an additional estimated 267,000 oz of resources announced in March 2008. Total measured and indicated resources at the project now stand at 990,000 oz. Mine production at full capacity will average 545,000 mt/y. Capital expenditure to develop the project is budgeted at just over A$71 million.

The initial gold pour from Frog’s Leg ore was accomplished two months ahead of the schedule announced by La Mancha in August 2007, when the decision was taken to proceed with development of the mine. As of mid-May 2008, decline development totaled 3,000 m, and development was proceeding on three horizontal mining levels. A third drill jumbo had been commissioned to increase underground development rates, and a second 50-mt underground truck was increasing haulage capacity. Wherever the mineralization has been exposed to date, orebody widths and grades have been in accordance with resource model predictions.

The Frog’s Leg mine is located 25 km west of Kalgoorlie in the southern part of the Kundana gold field. Production is primarily from steeply dipping quartz lodes. Mining is by longhole open stoping with fill. The high in situ stress environment and the competent rock quality result in a seismically active mining environment. This seismicity risk is being minimized by adopting a ‘bottom up’ mining sequence/retreat front, which systematically pushes the stress field and requires the completion of most of the pre-mining development prior to stope extraction.

La Mancha Resources is a Canadian company based in Montreal and listed on the Toronto Stock Exchange. In addition to Frog’s Leg, the company is 45.9% owner and operator of the Ity gold mine in Côte d’Ivoire, which is expected to produce 24,600 oz attributable to La Mancha during 2008, and 40% owner and operator of the Hassaï gold mine in Sudan, which is expected to produce 40,000 oz attributable to La Mancha during 2008.

Dioro Exploration acquired Harmony Gold's South Kalgoorlie operations, including the Jubilee mill, in 2007. Production from these South Kalgoorlie mines totaled 80,000 oz in 2007, and reserves are sufficient to maintain that production rate for three years. The project’s measured and indicated resource inventory totals 1.55 million oz. Dioro also has an extensive gold exploration land package and interests in uranium exploration projects in Western Australia.

June 09, 2008

Calendar (June 2008)

JUNE 9–11, 2008: 12th U.S./North American Mine Ventilation Symposium, Reno, Nevada, USA. Contact: Pierre Mousset-Jones, Mackay School of Earth Sciences and Engineering; Tel: 775-784-6959; E-mail: mousset@unr.edu; Web: www.unr.edu/ventsymp2008/.

JUNE 9–11, 2008: MASSMIN 2008–5th International Conference & Exhibition on Mass Mining, Luleå Technical University, Luleå, Sweden. Contact: E. Nordlund; E-mail: info@massmin2008.com; Web: www.massmin2008.com.

JUNE 9–12, 2008: Africa Junior Mining Congress, Johannesburg, South Africa. Contact: Brian Shabangu; Tel: 27 11 463 6001; Fax: 27 11 463 6903; E-mail: brian.shabangu@terrapinn.co.za; Web: www.terrapinn.com/2008/ajmza/.

JUNE 12-15, 2008: Annual Conference of the Mining History Association, Chisholm, Minnesota, USA. Contact: Jane Nordberg; E-mail: enordberg@mtu.edu; Web: www.mininghistoryassociation.org.

JUNE 16–20, 2008: Comminution ‘08, Falmouth, UK. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

JUNE 17-18, 2008: 2nd Annual Conference for the Mining Industry on Substance Abuse, Salt Lake City, Utah, USA. Contact: The University of Utah; Tel: 801-538-4343; Fax: 801-538-8228; E-mail: slangston@utah.gov; Web: www.uuhsc.utah.edu/uas.

JUNE 26-27, 2008: Asia Nonferrous Metals Executive Summit 2008, Shanghai, China. Contact: Fanny Wang; Tel: 86 21 6232 6090; E-mail: marketing@ibgintl.com; Web: www.ibgintl.com/events.

JULY 14-16, 2008: Financial Statement Analysis, Golden, Colorado, USA. Contact: Colorado School of Mines; Tel: 303-273-3321; Fax: 303-273-3314; E-mail: space@mines.edu; Web: www.mines.edu/outreach/cont_ed.

JULY 21-23, 2008: Finite Elements in Geotechnical Engineering, Golden, Colorado, USA. Contact: Colorado School of Mines; Tel: 303-273-3321; Fax: 303-273-3314; E-mail: space@mines.edu; Web: www.mines.edu/outreach/cont_ed.

JULY 22-24, 2008: Queensland Mining & Engineering Exhibition 2008, Mackay, Queensland. Contact: Reed Exhibitions; Tel: 02 9422 2955; Fax: 02 9993 8342; Web: www.qme.reedexhibitions.com.au.

JULY 29-31, 2008: 27th International Conference on Ground Control in Mining, Morgantown, West Virginia, USA. Karen Centofanti; Tel: 304-293-7680; Fax: 304-293-5708; E-mail: Karen.centofanti@mail.wvu.edu; Web: www.mine.cemr.wvu.edu.

AUGUST 25-26, 2008: Zinc Processing ‘08, Brisbane, Australia. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

AUGUST 27-28, 2008: Automated Mineralogy ‘08, Brisbane, Australia. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

SEPTEMBER 6-9, 2008: 47th Canadian Conference on Coal, Calgary, Alberta, Canada. Contact: The Coal Association of Canada; Tel: 800-910-2625; Fax: 403-265-7604; E-mail: martin@coal.ca; Web: www.coal.ca.

SEPTEMBER 7-11, 2008: Dam Safety 2008, Indian Wells, California, USA. Contact: Association of State Dam Safety Officials; Tel: 859-257-5140; Web: www.damsafety.org.

SEPTEMBER 13-14, 2008: 21st National Museum and Hall of Fame Induction, Leadville, Colorado, USA. Contact: U.S. National Mining Hall of Fame & Museum; Tel: 719-486-1229; Fax: 719-486-3927; E-mail: director@mininghalloffame.org; Web: www.mininghalloffame.org.

SEPTEMBER 16-19, 2008: First Southern Hemisphere International Rock Mechanics Symposium, Perth, Australia. Contact: Australian Center for Geomechanics; Tel: 61 8 6488 3300; Fax: 61 8 6488 1130; E-mail: acginfo@acg.uwa.edu.au; Web: www.acg.uwa.edu.au.

SEPTEMBER 22-24, 2008: MINExpo 2008, Las Vegas, Nevada, USA. Contact: Hall Erickson; Tel: 800-752-6312; Fax: 630-434-1216; E-mail: minexpo@heiexpo.com; Web: www.minexpo.com.

SEPTEMBER 24-28, 2008: XXIV International Mineral Processing Congress (IMPC), Beijing, China. Contact: Conference Secretariat; Tel: 86-10-68310569; Fax: 86-10-68317050; E-mail: impcexhibition@gmail.com.

OCTOBER 1-3, 2008: PROCEMIN 2008, Santiago, Chile. Contact: Fabiola Bustamante; Tel: 56-2 652 1555; Fax: 56-2 652 1570; E-mail: info@procemin.cl; Web: www.procemin.cl.

OCTOBER 8-10, 2008: Drilling for Geology 2008 Conference, Brisbane, Australia. Contact: Michele Pilkington; Tel: 0450 320 770; Fax: 61 7 3878 5108; E-mail: michele@emenem.com.au; Web www.aig.org.au/events/14.

OCTOBER 20-23, 2008: Conmex Middle East 2008, Sharjah, United Arab Emirates. Contact: Tel: 971-6-5770111; E-mail: info@expo-centre.ae; Web: www.conmex.ae.

OCTOBER 28-30, 2008: Goldfields Mining Expo 2008, Kalgoorlie, Western Australia. Contact: Reed Exhibitions; Tel: 02 9422 2955; Fax: 02 9993 8342; Web: www.goldfieldsminingexpo.com.au.

NOVEMBER 11-12, 2008: Microwave Technology ‘08, Cape Town, South Africa. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

NOVEMBER 13-14, 2008: TZMI Congress–Asia in Focus 2008, Singapore. Contact: Daniel Navaratnam; Tel: 61 (0)8 9359 6000; E-mail: data@tzmi.com.au; Web: www.tzmi.com.

NOVEMBER 13-14, 2008: Computational Modeling ‘08, Cape Town, South Africa. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

FEBRUARY 8-11, 2009: 35th Annual Conference on Explosives and Blasting Technique, Denver, Colorado, USA. Contact: International Society of Explosives Engineers; Tel. 440-349-4400; Fax: 440-349-3788; Web: www.isee.org.

APRIL 4-5, 2009: Sustainability through Resource Conservation and Recycling ‘09, Cape Town, South Africa. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

APRIL 6-7, 2009: Bio and Hydrometallurgy ‘09, Cape Town, South Africa. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

APRIL 8-9, 2009: Treatment of Mining Residues containing Toxic Minor Metals ‘09, Cape Town, South Africa. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com/conferences.

MAY 17-19, 2009: Haulage & Loading, Phoenix, Arizona, USA. Contact: Chad Dorn; Tel: 720-855-3996; E-mail: cdorn@mining-media.com; Web: www.miningmedia.com.

JUNE 16–18, 2009: Longwall USA, Pittsburgh, Pennsylvania, USA. Contact: Tanna Holzer; Tel: 303-283-0640; E-mail: tholzer@mining-media.com; Web: www.mining-media.com.

June 06, 2008

WorleyParsons Awarded Spinifex Ridge EPCM Contract - Australia/Oceania

Moly Mines Ltd., owner of the Spinifex Ridge polymetallic deposit located in the East Pilbara district of Western Australia, has awarded an Engineering, Procurement and Construction Management (EPCM) contract to WorleyParsons for construction of the 20-million-mt/y project’s processing plant and related infrastructure.

The estimated value of the reimbursable contract is A$100 million and is based on the project proceeding as currently planned, including the company finalizing its project financing arrangements. According to Moly Mines, the contract for the construction of the project concentrator formalizes the delivery structure
and contracting approach for the project. The contract includes an incentive-based compensation scheme that will reward WorleyParsons for meeting key project milestones through to the project’s scheduled practical completion stage. The milestones are based on performance in key areas including safety, scheduling, commitments, budget and cost. WorleyParsons’ association with the project extends back to the initial pre-feasibility study work that commenced in 2005.

The project’s Definitive Feasibility Study, released in September 2007, envisages the deposit will be mined by conventional large-scale open-pit mining methods. An initial 10-year mine life would allow exploitation of approximately 42% of the known resource, with the remainder being available for further development. The initial pit, by the end of the 10-year period, would be approximately 400-m deep with surface dimensions of 1,100 x 1,250 m.

The proposed processing plant will employ two-stage crushing of ROM ore, followed by a High Pressure Grinding Roll and primary ball milling circuit. Molybdenum and copper will be recovered by flotation into a bulk concentrate. Molybdenum will be separated by copper depression and further flotation.

The molybdenum and copper streams will then be treated by separate regrinding and cleaning processes to produce final saleable molybdenum and copper concentrates.

Updated Underground Mine Utility Vehicle

The Paus Minca Mining Car is a four-wheel drive mine transport vehicle that accepts interchangeable "cassettes" which allow the basic vehicle to be configured for a variety of functions including a 16-man personnel carrier, loading platform with crane, work platform, 3,000-L diesel fuel tanker, or ambulance and fire engine. The vehicle, which can be ordered with optional four-wheel steering for improved maneuvering in tight spaces, is powered by a 93-kW, water-cooled Deutz diesel with a monitoring feature that initiates automatic engine shutdown in case of system malfunction. The flameproof version of the Minca is fitted with a Perkins 1104C diesel. Alternatively, a hydrostatic drive is available. According to the company, mines with heavy inclines prefer the hydrostatic drive unit, as gear-shifting on inclines is eliminated and optimum power is available, providing a top speed of 35 km/h. Two standard Minca versions are available: Minca 5 with a length of 4.6 m and Minca 18 with a length of 5.7 m. Paus says its engineers have continued to optimize features that have already been field proven. For example, the chassis has been completely revised: both axles are equipped with spiral springs and shock absorbers, and the front axle is arranged as pendulum axle. Because of this change in design, adaptability to the worst roadway conditions has been significantly increased. The four-wheel drive is now bolstered by a differential lock. In addition, increased
power, excellent ergonomic features for the driver and intelligent automatic functions are important characteristics of the new Minca generation. Driver and passenger sit in a large, sound insulated cabin with clearly arranged operating and indicating elements and an adjustable steering wheel. Maintenance convenience also has been enhanced; filters, fill points and other maintenance areas are easily accessible. www.paus.de