The joint venture includes the Hidden Valley mining operation, the Wafi-Golpu gold/copper deposit, and 3,400 km2 of Harmony's exploration leases in Morobe province, 300 km northeast of Port Moresby. Hidden Valley is a gold and silver project, expected to produce more than 250,000 oz/y gold and 3.6 million oz/y silver over a 14-year mine life, peaking at more than 300,000 oz/y gold in 2011.

In total, the PNG assets have a significant resource inventory, with a JORC-compliant resource base of approximately 31 million oz of contained gold equivalent. Current resources total 15.2 million oz gold, 90 million oz silver, 1.8 million metric tons (mt) copper, and 22,000 mt molybdenum.

Newcrest will earn its 50% interest in the new joint venture by contributing a maximum of $525 million. The commitment will be in two stages: an initial $180-million payment to acquire 30.01% interest by June 30, 2008, together with a reimbursement to Harmony of $45 million in project expenditure (Stage 1 Completion), and a farm-in commitment for the remaining 19.99% of approximately $300 million to fund project expenditure up to the commencement of mining operations at Hidden Valley. Newcrest will fund the deal from internal cash flows. Harmony and Newcrest will jointly operate the PNG assets from the date of Stage 1 Completion. As a 30.01% interest holder, during the earn-in period, Newcrest's approval will be required for major decisions in the joint venture.

Harmony announced some time ago that it was evaluating strategic alliances with qualified companies that had relevant experience and resources to help develop and optimize the mining of the PNG assets. For Harmony, the creation of a joint venture facilitates significant capital investment into the PNG assets and substantially removes Harmony's obligation to continue funding the development of these assets during the arm-in period.
Moreover, the two companies believe the introduction of Newcrest with significant technical skills, particularly in copper mining and bulk underground mining techniques including block caving will provide additional expertise to the existing Harmony team in PNG and will add to the development of the PNG assets. "The combination of Harmony and Newcrest in PNG creates a unique team with the right skills, relationships, and people to enhance the development of these assets," said Graham Briggs, CEO, Harmony.

Newcrest's CEO Ian Smith said the transaction provided Newcrest with the opportunity to enter a new and prospective mining province—one of the largest undeveloped gold resources in the Australasian region—alongside a respected partner with substantial experience in PNG. "The near-term production and cash flow from Hidden Valley, combined with the significant upside potential of Wafi-Golpu and the regional exploration leases make this portfolio of assets very attractive to Newcrest," said Smith.

The mining project involves a copper-nickel-precious metals ore body and the nearby Erie Plant with associated crushing, grinding and conveyance systems (see E&MJ, January/February 2008, "NorthMet Project Ahead of the Pack in Minnesota Polymetallic Resource Rush," p. 4). The site is located near Hoyt Lakes in the Mesabi Iron Range mining district, which is approximately 70 miles north of Duluth, Minnesota. URS' Washington Division will support new chemical processing facilities, including a hydrometallurgical plant, SX/EW facilities and a flotation plant, all of which are being added at the Erie Plant site. Certain parts of the existing infrastructure also will be upgraded. Detailed engineering and procurement activities are under way in preparation for the start of field construction in the fall of 2008.

In a related development, PolyMet reported in February that it had been notified by the State of Minnesota Department of Natural Resources that the agency would not complete the Draft Environmental Impact Statement for PolyMet's project by the end of the first quarter 2008. The MDNR, according to the company, anticipates the validation and drafting of the draft EIS will be completed before the end of the second quarter of 2008.

The company also announced that it has re-allocated responsibilities among its senior management team and is relocating its headquarters to Hoyt Lakes, Minnesota. William Murray, formerly president and CEO, has been appointed executive chairman, and Joe Scipioni has assumed Murray's former role as president and CEO. Scipioni joined PolyMet in July 2006 and was appointed COO in March 2007. He will continue as general manager of the project until a replacement is hired.

“This transaction represents excellent value and takes us a large step toward our stated goal of 1.8 million ounces annual gold production by 2012, while lowering our average cash cost by $40 to $50 per ounce,” said Joseph Conway, president and CEO of Toronto, Canada-based Iamgold.

Under the terms of the transaction, Iamgold will acquire and finance development of the Essakane project, one of West Africa’s largest undeveloped gold reserves. Orezone exploration assets will be distributed pro rata to Orezone shareholders to create an entity known as “New Orezone.” Each Orezone shareholder will receive 0.08 of an Iamgold share and a pro rata share of New Orezone for each Orezone share held. Upon completion of the transaction, Iamgold will become a 16.6% shareholder of New Orezone.

In addition, Iamgold will provide Orezone with immediate C$20 million equity financing at C$0.28/share, subject to regulatory approvals. Iamgold also will open a corporate African operations office based in Dakar, Senegal.

Orezone’s main asset is the 4-million-oz Essakane gold project, located in Burkina Faso, West Africa. Construction commenced in September 2008 on the mine, which is expected to produce more than 300,000 oz/y over a minimum nine-year mine life at an average cash operating cost of $358/oz, using a $600/oz gold price and $85/bbl oil price. Full production is anticipated in late 2010, requiring a remaining capital expenditure of approximately $350 million.

Ron Little, CEO of Orezone said, “New Orezone will be well financed through this transaction and [will] host three advanced gold projects including Bombore, the second largest gold resource in Burkina Faso with 1.7 million ounces of measured and indicated resources.”

Assuming Orezone shareholders approve the transaction at the special meeting, and final court approvals are obtained, the transaction is expected to close by the end of February 2009.

When in production in late 2010, Essakane will contribute more than 25% of Iamgold’s gold production, bringing the company’s annual production to more than 1 million oz/y. “With this transaction, we are able to achieve a significant production increase in the near-term, a cost reduction of $40 to $50 per ounce and a 32% increase in reserves, with modest share dilution,” said Conway.

Iamgold currently has interests in two gold mines in Mali, two in Ghana, and one in Botswana. In 2008, about half of the company’s global gold production was from these African operations.

New production during 2009 will derive from Kinross’s Paracatu expansion in Brazil, its Kupol mine in Russia and its Buckhorn mine in Washington, USA. Mill throughput at Paracatu was at 60% of capacity at year-end 2009 and was expected to reach design capacity during the first quarter of 2009.

Kinross’s average cost of sales per gold equivalent ounce is expected to be in the range of $390 to $420 in 2009. Material assumptions used for this forecast included a gold price of $750/oz; a silver price of $12.00/oz; an oil price of $75/bbl; and 2.10 Brazilian reals, 1.20 Canadian dollars, 28 Russian rubles, and 600 Chilean pesos to the U.S. dollar, respectively. Based on a preliminary review of fourth-quarter 2008 costs, Kinross expected its full-year 2008 average cost of sales to be in the range of $425 to $445/gold equivalent oz.

Kinross is forecasting capital expenditures during 2009 of about $460 million, including about $145 million for growth projects, primarily for the Fort Knox project in Alaska, for Paracatu and for Cerro Casale in Chile; $57 million for pit development at Round Mountain in Nevada and La Coipa and Maricunga in Chile; $50 million for mine development at Crixas in Brazil, Kupol, and Buckhorn; $18 million for leach pad development at Round Mountain and Maricunga; $40 million for tailings dam work, primarily at Paracatu; and $150 million for sustaining capital expenditures.

JANUARY 13–14, 2009: 6^th Annual Canadian Oil Sands Summit, Calgary, Alberta, Canada. Contact: Incisive Media; Tel: 888-777-1707; Fax: 866-777-1292; E-mail: talk@incisivemedia.com; Web: www.insightinfo.com. 

JANUARY 20–22, 2009: 15^th Annual Underground Construction Technology International Conference and Exhibition, San Antonio, Texas, USA. Contact: Karen Francis; Tel: 281-558-6930, ext 222; E-mail: francis@uctonline.com; Web: www.uctonline.com. 

FEBRUARY 2–27, 2009: Advanced Geostatistics in Mining, Perth, Western Australia. Contact: Claudia Monreal; Tel: 61-8 6211 0000; E-mail: claudia.monreal@maptek.com.au; Web: www.maptek.com/geostats. 

FEBRUARY 8–11, 2009: 35^th 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. 

FEBRUARY 22–25, 2009: Society of Mining Engineers Annual Meeting, Denver, Colorado, USA. Contact: SME; Tel: 303-973-9550; Web: www.smenet.org.

MARCH 3–6, 2009: 14^th Annual Course on the Design of Slurry Pipeline Systems, Cape Town, South Africa. Contact: Terry Carolin; Tel: 27 (021) 683 4734; Fax: 27 (021) 683 4168; E-mail: TerryC@PatersonCooke.com; Web: www.PatersonCooke.com. 

MARCH 10–13, 2009: 14^th Annual Course on the Design of Slurry Pipeline Systems, Cape Town, South Africa. Contact: Terry Carolin; Tel: 27 (021) 683 4734; Fax: 27 (021) 683 4168; E-mail: TerryC@PatersonCooke.com; Web: www.PatersonCooke.com.

MARCH 16–17, 2009: Orebody Modeling and Strategic Mine Planning, Perth, Western Australia. Contact: Kristy Pocock; E-mail: kwynn@ausimm.com.au. 

MARCH 30–APRIL 1, 2009: SPAR 2009—6^th Annual Conference on 3-D Laser Scanning, Denver, Colorado, USA. Contact: Spar Point Research; Web: www.sparllc.com. 

APRIL 1–2, 2009: GEO-9 Geo-Event, Coventry, U.K. Contact: Robert Peel; Tel: 44 (0)1666 823306; Fax: 44 (0)1666 824668; E-mail: robert@market-it.co.uk. 

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 4–7, 2009: 22^nd Annual Technical Conference and Exhibition of the American Filtration and Separations Society, Bloomington, Minnesota, USA. Contact: Suzanne Sower; Tel: 612-861-127; Fax: 612-861-7959; E-mail: kssafs@mac.co; Web: www.afssociety.org. 

MAY 9–13, 2009: Global Uranium Symposium, Keystone, Colorado, USA. Contact: Quality Business Services; Tel: 303-914-0694; Fax: 303-382-8061; E-mail: darline@QBSoffice.com; Web: www.U2009.org.

MAY 9–14, 2009: 3rd Canada-US Rock Mechanics and the 20^th Canadian Rock Mechanics Symposia, Toronto, Ontario, Canada. Contact: Tel: 416-978-0125; E-mail: info@rockeng09.com; Web: www.rockeng09.com. 

MAY 10–13, 2009: CIM, Canadian Institute of Mining Conference and Exhibition, Toronto, Canada. Contact: Tel: 514-939-2710; Web: www.cim.org.

MAY 11–12, 2009: Symposium on New Equipment New Technology Management and Safety in Mines and Mineral Based Industries, Bhubaneswar, India. Contact: Web: www.geominetech.gq.nu/.

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

MAY 25–30, 2009: ALTA 2009 Nickel-Cobalt, Copper, & Uranium Conference, Perth, Western Australia. Contact: ALTA Conference; Tel: 61 8 9389 1488; Fax: 61 8 9389 1499; E-mail: info@eecw.com.au; Web: www.altamet.com.au.

JUNE 8–12, 2009: 24^th Annual Elko Mining Expo, Elko, Nevada, USA. Contact: Elko Convention & Visitors Authority; Tel: 800-248-3556; Fax: 775-738-2420; E-mail: cathie@elkocva.com; Web: www.elkocva.com.

JUNE 9–11, 2009: BPI Mining Conference 2009, Toronto, Canada. Contact: Penn State Outreach Marketing and Communications; E-mail: ConferenceInfo1@outreach.psu.edu; Web: http://programs.psu.edu/bpi2009. 

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

JUNE 16–17, 2009: Physical Separation ‘09, Cornwall, U.K. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com.

JUNE 16–18, 2009: Exponor 2009, Antofagasta, Chile. Contact: Tel: 56-66-454 306; Web: www.exponor.cl.

JUNE 23–26, 2009: Securing the Future—Mining, Metals & the Environment in a Sustainable Society; and 8th International Conference on Acid Rock Drainage, Skelleftea, Sweden. Contact: Web: www.securing.skelleftea.se.

JUNE 23–25, 2009: Recycling Metals from Industrial Waste: Plant Practice, 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/heavy.shtm.

SEPTEMBER 15–18, 2009: ESCC 2009—European Symposium on Comminution and Classification, Espoo, Finland. Contact: Web: www.escc2009.fi.

OCTOBER 6–9, 2009: APCOM–Application of Computers and Operations Research in the Mining Industry, Vancouver, B.C., Canada. Contact: Web: www.cim.org/apcom2009.

OCTOBER 14–17, 2009: Mining Indonesia, Jakarta, Indonesia. Contact: Christine Tan; Tel: 65 6233 6777: Fax: 65 6233 6768; E-mail: Christine@iemallworld.com; Web: www.pamerindo.com.

NOVEMBER 9–10, 2009: Flotation ‘09: 4^th International Flotation Conference, Cape Town, South Africa. Contact: Barry Wills; Tel: 44 (0)7768 234121; E-mail: bwills@min-eng.com; Web: www.min-eng.com.

JUNE 8–10, 2010: INTERtunnel 2010, Turin, Italy. Contact: Mack Brooks Exhibitions; Tel: 44 (0)01727 814 400; E-mail: intertunnel@mackbrooks.com; Web: www.intertunnel.com/en.

"The new structure is designed to improve the company's competitiveness by increasing Teck’s ability to analyze and act on available opportunities in each commodity segment," the Teck announcement said. "Each business unit is led by a senior executive with full responsibility for the unit's performance, including establishing a growth strategy, project identification and development, the safe and sustainable operation of the unit’s assets, delivering quality products to customers and overall profit and loss accountability."

Following is an outline of Teck's five divisions and their assets. Numbers in parentheses represent Teck's ownership interest.

• Teck's copper division's assets include Teck's interests in the Highland Valley Copper mine in south-central British Columbia (97.5%), the Antamina copper-zinc mine in the north-central Peruvian Andes (22.5%), the Quebrada Blanca copper mine in northern Chile (76.5%), the Andacollo mine southeast of the city of La Serena in north-central Chile (90%), and the Duck Pond copper-zinc mine in central Newfoundland (100%). Molybdenum and zinc are produced as significant by-products at some of the mines.
• Zinc assets, all 100% owned by Teck, include the Trail refining and smelting complex in south-central British Columbia, the Red Dog mine in northwest Alaska, and the Pend Oreille mine in Washington State just south of Trail. The mines produce zinc and lead concentrates. The Trail complex produces refined zinc and lead and various precious and specialty metals, fertilizers, and chemicals. The Trail operations also own the Waneta dam, which produces electricity for the metallurgical facilities and for sale to third parties.
• The gold division includes the Pogo mine southeast of Fairbanks, Alaska (40%), the Hemlo mining operations in northwestern Ontario (50%), the Morelos project in Mexico (78.8%), the Lobo-Marte property in Chile (60%) and interests in several other advanced gold exploration properties.
• Teck's metallurgical coal division comprises Teck's 40% interest in the Elk Valley Coal Partnership and its 19.95% investment in the Fording Canadian Coal Trust, which owns 60% of Elk Valley Coal, giving Teck a 52% direct and indirect interest in the partnership. Teck is the managing partner of Elk Valley Coal, which has six metallurgical coal mines in British Columbia and Alberta, and is the world's second largest exporter of seaborne hard coking coal. In late July 2008, Teck announced an agreement to acquire all of the assets of the Fording Canadian Coal Trust. That transaction remained open as of mid-October 2008.
• Teck's energy division's assets are centered on the Fort Hills oil sands project in northern Alberta (20%) and Teck’s 50% interest in various oil sands leases held jointly with UTS Energy Corp. In mid-September 2008, Teck and its Fort Hills partners reported that preliminary results from front-end engineering and design work suggest that estimated capital costs for the first phase of the Fort Hills project have risen by about 50% from the $14.1-billion estimate announced in June 2007. The major increases are costs associated with construction materials, labor, project management and engineering. The partners are assessing the new estimates and a range of options to reduce or defer capital costs. The Fort Hills project, as currently conceived, consists of an intgrated oil sands mine and bitumen extraction plant 90 km north of Fort McMurray, Alberta, and an upgrader in Sturgeon County northeast of Edmonton, Alberta. The first phase of the project has been planned to produce 140,000 bbl/d of synthetic crude oil.

]]> http://mining-media.com.p.hostingprod.com/current_pubs/emj/2008/12/fog_cannon_controls_dust.php http://mining-media.com.p.hostingprod.com/current_pubs/emj/2008/12/fog_cannon_controls_dust.php Equipment Gallery Thu, 18 Dec 2008 16:02:49 -0700 Cia de Minas Buenaventura, Peru’s largest publicly traded precious metals mining company, has signed an agreement with Global Geoscience, an Australian junior company headquartered in Sydney, to explore the latter’s Mancha Pampa copper-gold porphyry project in Peru. Buenaventura can earn a 61% ownership interest in the project by investing $3 million in exploration over a five-year period. Further, Buenaventura has the option of increasing this stake by an additional 19% via completion of a feasibility study if Global elects not to participate in this expenditure.

The Mancha Pampa project (100% owned by Global) is located 150 km southeast of Lima in the Yauyos District of central Peru. Work to date has identified an anomalous copper zone approximately 600 m by 450 m. Soil samples are generally over 120 ppm copper in this zone and range up to 5,150 ppm copper. The 150-m-wide northeastern third of this copper anomaly is generally more anomalous, with soil samples generally exceeding 1,000 ppm copper. Numerous rock chip samples have been collected within the high-copper soil zone, with copper contents averaging about 500 ppm. One grab sample contained 2.6% copper.

The area of the copper soil anomaly also contains anomalous molybdenum in soils, with values of more than 3 and up to 170 ppm molybdenum. Rock chip samples within this zone average 3 to 4 ppm and up to 157 ppm molybdenum.

Gold anomalous soil samples occur in a 600-m-long, 50- to 100-m-wide zone within the broader copper anomaly. These samples contain between 0.1 and 2.3 g/mt gold. A silver soil anomaly overlaps the eastern boundary of the copper soil anomaly, with silver assaying over 5 g/mt. Rock chip samples within this zone commonly exceed 2 g/mt silver. (www.buenaventura.com and www.globalgeo.com.au)

Iamgold is pursuing an aggressive exploration campaign at its Buckreef project in Tanzania. A 2,329-m diamond-drilling program was carried out during 2008 to augment structural studies and validate earlier reverse circulation drilling. Total Measured and Indicated resources at the project now stand at 1 million oz of gold at an average grade of 2 g/mt. Eight early-stage exploration targets on the property are being targeted by first-pass reconnaissance aircore drilling. Follow-up drilling is in progress, and additional targets have been identified by a geophysical gravity survey.

In eastern Senegal, Iamgold is exploring a significant gold mineralized trend at its Boto project. Work is currently targeting the Guemedji Trend, a 6-km-long mineralized corridor, to define drill targets in three distinct zones. A High Resolution I.P.-Resistivity geophysical survey was 60% complete prior to being temporarily interrupted by the annual rainy season. A minimum 5,000-m diamond drill program was tentatively scheduled to start in November and extend into 2009. (www.iamgold.com)

The Tornio ferrochrome smelter is located adjacent to Outokumpu’s stainless steel mill and will make the company “comfortably self-sufficient in terms of its primary chromium,” according to the company. The ferrochrome smelter processes ore from the adjacent Kemi chromium mine.

Because the ferrochrome smelter is located at the same site as the stainless steel mill, ferrochrome can be transferred to the mill’s melt shop in liquid form, foregoing the re-melting that is required at most stainless steel mills. This, said Outokumpu, gives the Tornio Works an exceptional cost advantage. Also, the carbon monoxide emanating from the Tornio ferrochrome process is used as fuel in the stainless steel mill, reducing the plant’s need for external energy.

The market price of ferrochrome has increased substantially in recent years due to increased demand from the stainless steel industry and, more recently, due to production constraints relating mainly to the availability of electricity in South Africa, which produces more than half of the world’s ferrochrome.

Outokumpu CEO Juha Rantanen said, “Doubling our ferrochrome production is an exceptionally attractive and profitable project. Already, Outokumpu Tornio Works is the most integrated stainless steel mill in the world. We have estimated that, with current prices, the expansion will bring additional annual operating profits in the order of €200 million.”