Unifin, a supplier of cooling equipment and transformer oil pumps and valves, has introduced the ForZair line of transformer oil coolers for superior performance in demanding applications. ForZair coolers are designed for new transformers and for existing installations that require additional heat removal capacity. The coolers feature Unifin’s Mono-Aluminum extruded fin-tubes and plate fin technology, both of which are claimed to provide optimal heat transfer efficiency and exceptional durability. ForZair coolers are available in forced oil-to-forced air, natural convection oil-to-water and forced oil-to-water models, in 50 and 60 Hz versions. Unifin says it uses an advanced oil flushing system, which achieves the highest ISO standards for cleanliness in the transformer industry. Hinged fan panel design makes it easy to open the cooler and pressure-wash the fin surface, thereby maintaining maximum performance of both the cooler and transformer. www.unifin.com
Frontier Assembles Benkala Copper Project Study Team - Asia
Frontier Mining has appointed a technical consultancy team led by Aker Kvaerner Chile S.A. to complete the conceptual study for its Benkala copper porphyry deposit in northwestern Kazakhstan. Frontier acquired a 50% stake in the project from Coville Intercorp Ltd. in November 2007 for $21 million.
The study, according to London, U.K.-based Frontier, will provide a preliminary evaluation of the various trade-off options for development of the project, and will form the basis for a pre-feasibility study that will begin in the second quarter of 2008.
Aker Kvaerner will act as study author to synthesize underlying study components, and evaluate the economics of various mining, processing, and infrastructure options for the Project; NCL Ingenería y Construcción S.A., an international mineral consultancy firm based in Chile, with substantial experience in large copper porphyry projects, will be responsible for mine planning and optimization studies, and; metals economics and price forecasting firm Brook Hunt will provide insight on copper marketing options, including analysis and outlook for the local copper concentrates market.
The Benkala project is focused on a significant porphyry copper deposit discovered in the late 1960s in the Urals gold/copper ore belt, northeast of Aktobe Oblast and 100 km southeast of the Zhetikara Mountains, an area close to the Russian border with a long regional mining history. The district already hosts a developed infrastructure, including a main line railway, an all-weather highway and power supply to the site, according to Frontier.
Rio Tinto has further strengthened its presence in South Africa with the discovery of a open-pittable coal resource of more than 1 billion metric tons in the Limpopo Province. The coal is bituminous, and is suitable for generating electricity. The discovery at Chapudi came through Rio Tinto’s coal exploration program in the Limpopo (Soutpansberg) coal basin of South Africa. The exploration work has been conducted in conjunction with Rio Tinto’s BEE partner, Kwezi Mining. Exploration rights over the resource are held by two JV companies; Chapudi Coal PTY Ltd. (Rio Tinto 70%) and Kwezi Mining Exploration Pty Ltd. (Rio Tinto 49%). Rio Tinto and Kwezi are continuing with exploration activities for thermal and coking coal east of the Chapudi project.
"This is a significant find in an area that has previously been viewed as having little geological potential," said Chief Executive of Energy & Minerals, Preston Chiaro. "The project’s potential to produce thermal coal for electricity generation comes at a time when South Africa needs to rapidly increase its generating capacity. In addition, the basin offers the opportunity to produce a range of products, from thermal to hard coking coal for the export markets. We are currently planning the next phase of the project by beginning our pre-feasibility studies."
The newly discovered Chapudi Resource lies within the Limpopo coal basin, in the northern part of South Africa. The coal is hosted in sediments of the Karoo Group, similar to other coalfields in Southern Africa. The coal seams at Chapudi occur in mudstones that can be correlated to the Upper Ecca formations of the Main Karoo basin.
Rio Tinto and Kwezi Mining began exploring for coal in the area in 2003, when the first borehole was drilled on the farm Chapudi. This borehole intersected significant thicknesses of coal. Since then, the Rio Tinto-Kwezi JV has drilled about 90 boreholes in the project area, and conducted geophysical surveys to aid the geological interpretation. A total of 12,400 m have been drilled to date. The central part of the project now has sufficient drilling coverage to define a measured and indicated resource. The rest of the project area has been drilled to inferred resource status.
The coal has been demonstrated through test work to be suitable for combustion to generate electricity. Rio Tinto and Kwezi Mining are currently investigating the feasibility and economics of establishing a mining operation to feed coal into a power station. They are currently engaging with Eskom, and a number of Independent power providers to this effect.
Norway’s Aker to Invest in Pioneering Carbon Capture Facility
Aker has decided to build what is likely to become the world’s first and largest CO2 capture facility of its kind, designed to capture 100,000 tons of CO2 from the gas powered energy plant and the Kaarstoe gas processing plant, The Norway Post reported. The facility could be in operation as early as 2009. Aker said that in recent years the company has worked intensively on developing new CO2 capture technology. It says the primary purpose of the new facility is not primarily further technology development; the objective is the development of construction methods and effective execution models that make carbon sequestration so inexpensive that it becomes cheaper to clean emissions than to pollute.
Hwange Colliery in Zimbabwe Resumes Production After Flooding
Hwange Colliery Co. Ltd. has resumed mining at its underground mine a week after it had closed down due to flooding. According to The Herald, the banks of Kamandama River, adjacent to the mine burst following heavy rains and poured into the mine prompting the coal mining giant to suspend production. Open-cast has been affected although production has been going but at reduced levels. On average, the underground mine produces about 2,000 metric tons per day. Water from the underground mine was drained and production was ready to resume.
PSG International will build an €200 million (about Kc5 billion) coal-fired power plant near Kurgan, Russia, and it will be one of the largest construction deals of the Czech company in the Russian Federation, Czech News Agencyreported. As a general contractor, PSG supervises the construction as well as supplies and installation of boilers and equipment made by the companies Turbomach, Siemens, Alstom and Bresson.
During January, Sandvik unveiled the DR460 rotary blasthole drill at its manufacturing facility in Alachua, Florida. It is a diesel-powered, crawler-mounted unit that drills 251- to 311-mm (9-7/8- to 12-1/4-in.) diameter blastholes. Sandvik said they have designed the drill for mines prioritizing high penetration rate, easy maintenance, good availability and an ergonomic work environment.
All mechanical and hydraulic systems are enhanced compared with existing models. For example, with 194 kW (260 hp) input on the multi-pass machine, the DR460 has 38% more rotary horsepower than typically seen in this size class. Tim Murphy, vice-president Surface Mining Drilling at Sandvik said: "When ground conditions allow, the operator can increase his rotation without sacrificing torque, to gain penetration rate without stalling." The feed system has been designed with extreme hard rock in mind by including extra heavy duty chains to ensure a constant load at increased rotation speeds.
From a service and reliability perspective, the DR460 offers a full perimeter walkway for improved access. The drill has been engineered to meet stringent Australian standards (MDG15) for electric and hydraulic design. The hydraulic system has been designed to reduce the amount of hoses in one location by moving the hydraulics nearer to the point of use. In an effort to reduce fire hazards, the electrical system has been encased and isolated from the hydraulic system to keep the two from interacting.
"We have used piping to eliminate as much hose as possible and all of the piping is secured to the machine," said Murphy. "The purpose is reliability over time. Hoses tend to chafe. Although it’s impossible to completely eliminate it, you try to minimize it where you can." The hydraulic lines are secure through Stauff clamps, eliminating plastic zip ties.
A FOPS-rated, 4.4-m2 (47-ft2) cabin offers the operator a comfortable work environment. "The electro-hydraulic controls are mounted in the chair and the chair faces floor-to-ceiling windows providing an unobstructed view of the drill deck," Murphy said.
A standard DR460 is engineered to operate at an ambient temperature of up to 54°C (130°F), but can also be equipped with optional cold weather equipment that includes generator sets and machinery housing for arctic climates. "In extreme cold, we use Mesabi coolers," Murphy said. "Because of the thermal expansion capability, they handle cold oil better than an aluminum core." For work at high elevations, an optional engine is available capable of operating at locations up to 5,000 m (16,400 ft) above sea level.
Sandvik says the main goal of the DR460 is to increase productivity while adding features to improve reliability, operator acceptance and serviceability. Maximum pulldown force is 356 kN (80,000 lb) and bit load is 445 kN (100,000 lb) for optimal productivity in hard rock formations. The DR460 is capable of drilling benches up to 75 m (246 ft) with 12.8-m (42-ft) long drill pipes. "The DR460 has a longer single-pass capability than our previous models and our competitors," said Murphy. "Many mines are using hydraulic excavators and they prefer a 10-meter bench. With 42-foot pipe, the DR460 can drill a 12-meter clean hole on the first pipe." The first machine is being delivered to a Canadian coal operation and Sandvik will have a model on display at MINExpo. www.sandvik.com
Designed for applications that require portability, Clearwater Industries’ new Model 2000 water clarifier allows operators to produce clean water from a dirty water stream immediately, while concentrating fines and solids to a thick state. Producers can eliminate the need for clean water ponds or setting ponds, avoid trucking in large volumes of water, and operate at sites where there is little or no water or suitable site for a settling pond. Featuring closed-circuit operation, the Model 2000 is a totally self-contained unit that delivers up to 2,000 gallon-per-minute capacity, at 20% solids by volume. The system is complete with an automated dry polymer feed system, hydraulic package, control panels, a 40-hp drive and a hydraulically driven solids discharge pump that will move solids up to 800 ft. Ideal for highly mobile operations, the unit typically requires no more than three hours for setup. www.clearwaterind.com
Harmony Looks at Additional Gold Recovery from Tailings Dams - Africa
Harmony Gold Mining is investigating the feasibility of re-mining old tailings dams at its operations in the Welkom area in South Africa, with the intent of reprocessing the tailings to extract gold and consolidate the residue tailings from the processing plant onto three tailings facilities.
Nine old tailings dams in the Welkom area are being considered as part of this project. The proposed operations would process about 240 million mt of tailings from the dams. In addition to re-mining of the dams, other principal elements of the project would include installing pipelines to supply water to the re-mining areas, and to transport the slurry to the processing plant; recovering gold from the slurry at the existing St. Helena processing plant; and installing additional pipelines to supply water to the processing plant and to transport tailings residue from the processing plant to tailings deposition facilities.
Harmony CEO Graham Briggs said, "The re-mining of tailings presents an ideal opportunity to consolidate tailings facilities spread across the region into three tailings facilities. This will allow for better management of the facilities and the implementation of stricter control on environmental management, which earlier facilities may not have taken into account during design."
The company noted that the main focus of the project is on gold extraction, although potential extraction of uranium also is being assessed.
The St. Helena processing plant, located southwest of Welkom, was mothballed almost three years ago and could be brought into production again, according to Harmony. It may be expanded to allow for the treatment of the required volumes of slurry.
Several regulatory processes are being conducted, including an Environmental Impact assessment. Should the re-mining project be approved by regulatory authorities, Harmony expects construction to begin late in 2008. Harmony’s R41-million ($5.4-million) Phoenix tailings project, near Virginia, was successful enough to warrant an upgrade to process 500,000 mt/month, and the company said it anticipates that the St. Helena plant would also be a profitable business, although capital and working cost estimates were yet to be finalized.
The company also announced that it expects cost-cutting measures instituted in the latter half of 2007 to pay off in 2008. Among these measures were the termination of 2,827 external contract employees, voluntary retrenchments and attrition involving another 2,123 employees, and transfers of almost 5,000 workers to more efficient shafts. The transfers, according to the company, involved mainly service staff from Randfontein central offices and from nonproduction to production areas. Harmony also placed its St. Helena No. 4 and No. 8 shafts on care and maintenance and redeployed 650 workers from those sites to other operations.
Rio Tinto to Spend $2.42B on New Pilbara Mines, Okays Study of Hope Downs Expansion - Australia/Oceania
In a burst of activity during the final weeks of 2007 and the early days of 2008, Rio Tinto announced plans to make significant additional investments in its iron ore export capacity in the Pilbara region of Western Australia, with the approval of the new Mesa A/Warramboo mine in the Robe Valley and Brockman 4 mine near Tom Price; as well as approval of a feasibility study to expand the Hope Downs 4 project. In addition, the company added 3 billion tons of iron ore to its Pilbara resource base, and disclosed plans to spend at least $315 million on new ore carriers to bolster its transportation capabilities.
The two new mines being planned, at a total cost of $2.42 billion, are scheduled to begin production in 2010. Sam Walsh, chief executive of Rio Tinto Iron Ore, said the new mines were integral to the Pilbara production platform underpinning Rio Tinto’s rapid expansion of its global network of assets. "Brockman 4 will bring on a new, high-volume long-life source of Brockman ore, a key component of the Pilbara Blend product successfully introduced to the market in July this year. Likewise, our Robe Valley pisolite product has consistently proved to be competitively attractive for our customers."
The Mesa A/Warramboo mine, about 50 km from Pannawonica, will have an initial production of 20 million mt/y, increasing to 25 million mt/y by 2011.
The mine will sustain production of Robe Valley pisolite ore at 32 million mt/y over the next decade. Current production from the Mesa J deposit, now nearing the end of its mine life, will reduce to 7 million mt/y with Mesa A providing the balance. A 49-km rail extension will connect the new mine to the Rio Tinto rail network. The project capital cost is estimated at $901 million (Rio Tinto’s share would be $478 million). Total high-grade reserves across the Mesa A/Warramboo deposits are estimated at 249 million mt, with a total mine life of 11 years.
The first phase of the Brockman 4 development, about 60 km northwest of Tom Price, will have an annual output of 22 million mt/y with a potential for further expansion. Brockman 4, according to the company, is well positioned to serve as a hub for the future development of nearby deposits. The project has an estimated total capital cost of more than $1.52 billion. Design considerations allowing for an increase in output by 14 million mt, to 36 million mt/y, are included in the Phase I scope, which will facilitate a cost effective ramp up as additional port capacity is brought on line.
Phase I will take two years to construct and commission with production ramp-up planned to begin in early 2010, and full capacity to be reached by 2012. The mine will be connected to the Pilbara Iron Rail network by a 35-km rail spur to the Brockman 2/Nammuldi operations. The Brockman 4 orebody contains 573 million mt of high-grade reserves (>60% iron). A further 597 million mt of blending and lower-grade (50%-60% Fe) resource will be stockpiled for future processing.
The Hope Downs Joint Venture (managed by Rio Tinto) has approved a feasibility study to expand the Hope Downs 4 project as part of the Rio Tinto program to reach annual capacity of 320 million mt of iron ore by 2012 at its Pilbara operations.
The study, which will cost an estimated $71 million, will assess the deposit as an extension of the existing Hope Downs Joint Venture (50:50 owned by Rio Tinto and Hope Downs Iron Ore Pty Ltd.). The study will incorporate the recently completed 50,000-m infill drilling program at Hope Downs 4.
The Hope Downs 4 deposit is located 35 km northwest of the town of Newman and 45 km east of the Hope Downs 1 mine. This mine began production in November 2007 and is expected to reach 30 million mt/y capacity in early 2009. Rio Tinto said the proximity of Hope Downs 4 to other deposits which it fully or partly owns promises significant potential synergies and option value for Rio Tinto Iron Ore.
The Hope Downs 4 deposit consists of three main areas of mineralization of approximately equal size extending over a length of 8 km. The deposit has been re-estimated after completion of an 18,000 m in-fill drilling program in 2006. The contained high grade resource (>=60% Fe) is made up of 98.6 million mt grading 62.3% Fe of indicated mineral resource and 206.1 million mt at 62.4% Fe of inferred mineral resource. Necessary government and environmental approvals would be required before development of a Hope Downs 4 mine could proceed.
Rio Tinto also revealed a 3-billion-mt addition to its iron ore resource base in the Pilbara district which, according to the company, came about through discovery of a major new resource at Caliwingina, as well as what it termed "significant improvement in confidence" of resources associated with known deposits. In announcing the resource enhancement, Walsh asserted that "Rio Tinto occupies the largest mineralization and land position in the Pilbara. This advantage is strengthened by addition of the newly discovered resource at Caliwingina, comprising 875 million tons of iron ore only 15 km from our railway and only 150 km from our ports at Dampier and Cape Lambert, as well as significant additions around known deposits."
The newly discovered Caliwingina resource is within the Mt. Pyrton project area which lies 100 km north northwest of Tom Price and is approximately 15 km from the Rio Tinto Iron Ore Tom Price to Dampier railway line.
Rio Tinto initially conducted exploration for Channel Iron Deposit (CID) in the southern part of Caliwingina using geophysical techniques and an extensive reverse circulation (RC) drilling program during 2002–2003 which delineated a 6-km continuous length of CID. During 2005–2006 Rio Tinto continued an RC drilling program to the north following the CID channel to the out wash area in the Fortescue Valley.
According to the company, the Caliwingina North area now has sufficient drilling coverage (173 RC holes for 11,503 m on a nominal 500 x 200-m grid spacing) to define an Inferred CID Mineral Resource. Drill evaluation work will continue in the Caliwingina Prospect during 2008–2009 to update the resource base. Also diamond drilling will be conducted to improve grade estimation confidence as well as for metallurgical and density test-work. Drill evaluation work will continue in the Caliwingina Prospect during 2008–2009 to update the resource base. Also diamond drilling will be conducted to improve grade estimation confidence as well as for Metallurgical and density test work.
Rio Tinto also announced that it intends to purchase three 250,000 deadweight mt ore carriers to transport iron ore from its mines in the Pilbara (and potentially from Simandou in Guinea) to customers in China and elsewhere. It also has reserved rights on another two vessels of similar size. The vessels, to be built by Namura Shipyards in Japan and delivered from late 2012, will cost about $315 million in total. China’s iron ore imports have grown substantially in recent years and are forecast to continue to grow strongly with the potential to more than double post 2010. To maintain and increase its share of this growth, Rio Tinto Iron Ore is expanding the capacity of its Pilbara iron ore operations to 220 million mt by 2009, supported by long term contracts, hybrid contracts and spot sales.
During its investor seminar on November 26, 2007, Rio Tinto said its growth strategy in iron ore and a strong pricing outlook would allow it to build a conceptual pathway to triple production to more than 600 million mt/y of iron ore from Australia and Guinea.
David Peever, managing director of Rio Tinto Marine, said, "These vessels are designed for maximum loading at Rio Tinto’s iron ore ports. The acquisition of these vessels, and the related options, provides us with maximum flexibility in developing our future marine strategy."
Peever said that Rio Tinto, through its Marine division, manages a freight portfolio with a strong focus on long-term, low-cost freight positions. "During 2008, we will be considering commercial options and partnerships to further leverage our freight business."
