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www.im-mining.com FEBRUARY 2012 Informed and in-depth editorial on the world mining industry NORDIC OPERATIONS FOCUS Orivesi gold and AUTOMATED Kaunisvaara iron MINERALOGY OPTIMISATION ACCURATE EXPLORATION ATLAS COPCO'S Advanced BOB FASSL technologies CONTROLLING EMISSIONS Vertimill® Grinding Mill Fine Grinding Technology Stirred Media Detritor Reduced Power & Media Consumption Solid recovery Stirred milling technology featuring VERTIMILL® & Stirred Media Detritor You demand lower operating costs, but you can’t sacrifice your product recovery. Metso stirred mills deliver outstanding efficiency, finer grinding sizes and reduced power and media consumption so you get the results you need. With enhanced recovery, reduced operating costs and improved revenue, you can rely on Metso’s equipment and reputation. They’re both rock solid. metso.com – email: [email protected] CONTENTS 88 FEBRUARY 2012 8 OPERATION FOCUS – Kaunisvaara Northern Sweden has a long iron ore tradition. John Chadwickrecently visited the latest project there – Northland Resources’ Kaunisvaara iron ore, for which Metso is providing major process solutions 18 OPERATION FOCUS –Orivesi “Production, cashflow, growth” is the operating principle Dragon Mining has employed for its gold operations in Sweden and Finland. John Chadwick visited the Orivesi mine recently 3322 1188 26 GREAT MINES – Zinkgruvan In our penultimate Great Mines series on Lundin Mining, Paul Moorelooks at the Zinkgruvan operation, which literally means ‘zinc mine’, 2266 outlines the paste tailings project at Neves Corvo and provides a brief update on the winding down 4444 Galmoy and soon to be reopened Aguablanca mines 44 MINERAL EXPLORATION 32 AUTOMATED MINERALOGY With an uncertain economic future, ever more remote deposits in operationally challenging John Chadwick looks at some of the countries, as well as more interest in other new developments in XRD and XRF mined products from potash to rare earths and analysers including handheld and lithium – Paul Moorereports that the lab-based solutions importance of the most accurate exploration methods with the most advanced technology 70 HIGH PROFILE: Atlas Copco and equipment continues to increase Paul Mooreinterviewed Atlas 6600 Copco’s new Business Area 60 EMISSION CONTROL President for Mining and Rock John Chadwicklooks at improving some of the Excavation Technique, Bob Fassl, in fluids used in mining machines, noise reduction, gases and dust. Water is considered separately, late 2011 about the positioning and next month strategy for the company’s mining assets -94 MINING TECHNOLOGY UPDATES Every month, IMposts around 100 news items to its website, mainly technology related. Here are 7700 some recent highlights COVER: SRK Exploration www.im-mining.com FEBRUARY 2012 HMmtheioenltrieczerof eaopllnditse tbar ie tsmiho paonolb fat ieolninfsd atR iStaaiRolmlKyn RoEoenxf spedo lroouilfrrl acitnehtigseo nrswi igSnoscer leordv n2’istc0 oel1a s0tr h.gL etSed sRM t(K oSo tERczScKfue iElrsdrS ept) na phcrraeto ssos pfbo etefh ceTetan i- SnNleR bSaK-odR GuiEntrEgho ueGpxr pealenondrla aitsniodn. tAeEAdcXKhCvOFPaaOnCrNOunLioUPvOnCcOleEoReiURRssgdRAivSDi A ATaegITITasEnoCIrfI l OoaOdr NmiNareonSdnd a nd in-depth editorial on the world mining industOryPMTAIINMUETIRSOAAMTLAIOOTGENYD an independent mineral exploration consultancy and service provider, working ATLABSO CBO FPACSOS'LS worldwide on a wide variety of commodities and at all stages of project COENMTIRSOSLIOLINNSG development. For more details, email [email protected], call +44 2920 233 233 or visit the website. www.srkexploration.com Photo: Daniel Marsh, Exploration Geophysicist, SRK ES AROUND THE WORLD 3 The Leader 4 World Prospects 75 Classifieds 76 Forthcoming events FEBRUARY 2012| International Mining 1 Weir Minerals. Working hard to keep you in the black. There are all kinds of economic indicators you can talk about. In this business, the only one that matters is a steady fl ow of coal coming out of the ground. That’s what it’s all about. That’s what we’re all about. The idea is to build products better. Excellent And back them better. That means genuine Weir® Minerals replacement parts. And Mining real, live Weir® Minerals engineering support, when and where you need it, anywhere Solutions there’s coal in the ground. What goes down when a pump or valve goes down? Pro- ductivity. Which is why we put everything we’ve got into keeping you working. And in the black. Weir Minerals. Expertise where it counts. www.weirminerals.com/coal Copyright ©2012, Weir Slurry Group, Inc. All rights reserved. THE LEADER VOLUME 8 • NUMBER 2 IPCC 2012…and Rapid Development 2013! Publisher John Chadwick International Mining has great pleasure in tonne of total material Email: [email protected] announcing the confirmation of two new moved by using the IPCC Editor Paul Moore focussed conferences for 2012 and early 2013. system instead of a large Email: [email protected] The first is In-Pit Crushing & Conveying (IPCC) truck fleet is in the order Associate Editor Chris Cann 2012, which will be held in the Grand Hyatt Bali, of $0.25/t or Email: [email protected] Indonesia from 24th to 26th October, and follows approximately $0.80/t Editorial Board on from the highly successful IPCC 2011 event in ore mined. In addition to Professor Malcolm Scoble Robert E. Hallbauer Belo Horizonte in Brazil, which was a who’s who of the operational savings, Chair in Mining Engineering., mining groups considering and implementing IPCC Exeter estimates an initial and sustainable capital University of BC, systems, along with key consultants, contracting saving of approximately $1 billion by building the Vancouver groups, equipment OEMs and component tailings dam wall largely from a conveyor-stacker Jeff Roschyk Vice President of suppliers involved in IPCC. More information can system rather than using conventional truck Product Management & Marketing, P&H Mining, USA be found on page 31 of this issue, but Indonesia haulage for material movement. The waste dump Peter Knights was chosen due to its geographical location would form the backbone of an engineered tailings BMA Chair & Prof. of Mining EngineeringUniversity between Australia and mainland Asia; but also the dam face and provide a significant margin of safety of Queensland massive domestic potential for IPCC with a huge in the event of an earthquake or other event. Stephen Stone and growing surface coal industry. Themes to be covered at IPCC 2012 include: West One Management Perth, Western Australia And IPCC continues to gather momentum. One mine planning, and truck-shovel versus IPCC; Dr. Andrew M. Robertson of the key speakers at the IPCC 2011 event in Belo design criteria for IPCC; fully mobile and semi- President, Robertson GeoConsultants Horizonte, Brazil, was Consulting Mining Engineer mobile IPCC; conveyor systems for waste handling; Vancouver, Canada. and former Sandvik VP Technical Mining Services, real mine case studies; relocation of IPC and Ed McCord Project Consultant Phil Morriss, who gave an in-depth review of the conveyor systems and a consideration of other Caterpillar Global Mining, USA Exeter Resource Caspiche project in northern Chile, alternatives – surface miners, bucketweel systems, Jason Nitz Mining Systems Strategist a significant project in that it is set to produce etc. By late 2012, several very large new IPCC Newcrest Mining Ltd, Australia 696,000 oz/y of gold, 844,000 oz/y of silver and systems will have been put in place globally, which Dr Terry Mudder Managing Director 244 Mlb/y of copper over a 19 year mine life. But will provide new avenues for discussion. TIMES Ltd, USA its significance also lies in the fact that it is a major Finally, we also are very proud to be launching a Simon Tarbutt Consultant, Santiago, Chile hard rock metallic operation that will incorporate completely new conference – Rapid Development – Dr. Mike Daniel IPCC; joining the club of majors already utilising or which will be held from 23rd to 25th January 2013 Comminution Process Consultant developing high tonnage IPCC systems for waste in the Sydney Harbour Marriott Hotel. Why this Ausenco Minerals & Metals, Australia rock – this includes Chuquicamata, Antamina, subject and why Australia? It is increasingly clear Editorial Enquiries: Tel: +44 (0)1442 870 829 Collahuasi and Escondida. The company provided that with the number of large open pit to Fax +44 (0)1442 870 617 an update on 17th January 2012, when it was underground projects as well as new block caves Advertising Sales: announced that the Prefeasibility Study (PFS) for coming onstream in the next 10-15 years, that the Phil Playle Email: [email protected] Caspiche had indicated average operating costs of industry needed a meeting that is both technical +44 1442 87 77 77 $606 per oz gold equivalent. However, the gold and commercial to look at this topic. Everything Advertising Production Emma Smith production cost drops to $18 per oz when copper from rapid shaft sinking techniques to the Email: [email protected] and silver by-product credits are considered. application of TBMs and new mobile continuous Publishing Consultant Proven and probable gold reserves stand at 19.3 mining machines for horizontal development in Robin Peach Moz and 4.6 billion pounds for copper. hard rock will be covered; as will new approaches Design & Production Trevor Sheldon The PFS was completed by Aker Solutions (now to longhole drilling, underground material Email: [email protected] Jacobs Engineering), and evaluated three mining movement and rock support. Australia is the Website: and processing options. A key component of the location for much of the technology advancement www.im-mining.com PFS is the inclusion of high tonnage IPCC systems and testing in these areas. To offer potential Annual Subscription Enquiries: Emma Smith for the movement of waste rock. This achieves papers, find out about sponsorship opportunities, Email: [email protected] greater efficiencies in the movement of the pit or for any other queries on either theIPCC 2012or Annual Subscription overburden, not only to address rising operating Rapid Develoment 2013events, please contact me. UK and Europe £160, E230 Rest of the world US$270 costs for mining waste, but also the capital and International Mining is published operating costs involved in the construction of monthly by Team Publishing Ltd, tailings dam walls using conventional methods. 2 Claridge Court, Lower Kings Road Berkhamsted, Herts. HP4 2AF, UK The early implementation of IPCC allowed the open Printed by The Manson Group, St Albans pit development to be tailored to the needs of the © Team Publishing Ltd 2012 system and has resulted in significant reduction in Paul Moore ISSN 1747 -146X projected mining costs. NCL, Exeter’s mining Editor and IM Events Conference Director consultants, estimated that the cost saving per [email protected] FEBRUARY 2012| International Mining 3 WORLD PROSPECTS Hillgrove Resources progressing well at Kanmantoo copper mine Hillgrove Resources recently commissioned process plant and the Kanmantoo mine located less than associated 55km from Adelaide in South Australia. It equipment and is an open-pit mine, ramping up over the first buildings for half of 2012 to an initial throughput of 2.4 Mt/y, Kanmantoo. Pillara, producing approximately 80,000 t/y of located 375 km concentrate. During December 2011: east of Broome in ■154,000 t (dry) crushed and milled, Western Australia, representing 77% of annual throughput rate was established by of 200,000 t/month, and above plan for this Western Metals stage of ramp-up Limited in 1998 as ■Average crushing rate achieved was 387 t/h a lead/zinc mine. It (dry), representing 94% of design of 411 t/h was shut down in ■Average milling rate achieved was 259 t/h September 2008. (dry), representing 83% of design throughput The purchase of 311 t/h comprised the float ■2,159 t (dry) of copper concentrate produced, plant, which grading 30% Cu and 5.3 g/t Au, both above included a ball mill and SAG mill, office In November 2010 the final approvals were plan of 26% Cu and 2.6 g/t Au buildings, crusher, plant spares and received and the 12-month construction period ■Some 1,615 t of concentrate transported to consumables, workshops, warehouse building, commenced with Abesque once again storage at Port Adelaide, with about 810 t in sample preparation facility, laboratory, fuel farm contracted to undertake the A$121 million the concentrate shed at Kanmantoo and product storage buildings. The purchase construction project through to commissioning ■Average copper recovery of 70%, reflecting provided a number of advantages, which of the plant in November 2011. some oxide and transitional material in the included: In association with the construction program, early stage, low grade, commissioning ore ■A reduction in capital expenditure and mining activities centred on providing sufficient feed to the mill. Recovery steadily increased reduced possibility of cost blow outs by using waste material to undertake the groundworks over the month, and is now running at a second hand plant rather than buying required for the Tailing Storage Facility (TSF) approximately 85% everything new embankment, the establishment of haul roads ■Close-off of additions of exploration drilling ■Increased certainty of meeting the 12-month linking areas of the mine, as well as hard-stand data to the Kanmantoo resource database construction target as not waiting for long laydown areas for the mining contractor, Exact occurred, with work commencing on a new lead time items Mining’s workshop and go-line area. Over 1 resource estimate, with results expected in ■A number of items excess to our million m3(bank) of material (ore and waste) Q2, 2012. requirements were able to be sold, including were moved in the process, all requiring drilling The project currently hosts 2.3 Mt of Proven the smaller Outotec SAG mill already ordered, and blasting. ore reserves at 0.87% Cu, 0.13 g/t Au and 3.2 reducing the expected capital outlay. To maintain best practice environmental g/t Ag, with a Probable reserve of 12.5 Mt at Abesque Engineering undertook the guidelines, the TSF required a clay liner, 0.84% Cu, 0.18 g/t Au and 3.1 g/t Ag, for a total dismantling and transport of the plant. The installation of drainage networks and decant of 14.8 Mt at 0.85%, 0.17 g/t and 3.1 g/t, individual plant components were carefully pipework, and then a High Density Poly- respectively. Total Measured, Indicated and itemised and numbered before being sent in Ethylene (HDPE) lining. The first stage of the Inferred resources total 32,192 Mt at 0.9% 0.2 batches by truck. A total of 293 truck-loads were TSF was approved for use in October 2011 and g/t and 3.2 g/t, respectively. involved – a major logistics exercise by any will be extended according to the Mining and In August 2009 Hillgrove entered into a measure. They were then laid out at Kanmantoo Rehabilitation Plan (MARP) approvals as purchase agreement with Lennard Shelf (Teck ready for refurbishment if required and required over the life of the mine. Resources/Xstrata) to acquire the Pillara mine’s reassembly. www.hillgroveresources.com.au Lynas forging ahead with Australian/Malaysian rare earths production Lynas owns the richest known deposit of ratio for the pit (4.6:1). Due to the high ore recovery of 64% at the end of Q3 2011, which rare earths, also known as Lanthanides, in grades, the ore production level is forecast to be compares to a target final concentrate grade of the world at Mount Weld, near Laverton in relatively small. For example, production of 37% REO and recovery of 58% in the planned Western Australia. The company's strategy is 11,000 t REO in the first year of operation will ramp-up schedule for the same period. "to create a reliable, fully integrated source of require 121,000 t of ore to be processed. Based The detailed feasibility study was completed rare earths supply from the mine through to on proposed ore treatment options, current for an expansion of the plant to double its customers in the global rare earths industry. The reserves were calculated by AMDAD in 2003 as capacity. At the end of last year a letter of award project embraces the mine and concentration 2.1 Mt @ 15.5% REO containing 321,000 t REO. was issued to Abesque Engineering for the EPCC plant at Mount Weld and the Lynas Advanced Lynas expects that further metallurgical test contract for Phase 2 of the plant. The letter of Materials Plant (LAMP) in Malaysia. work and inclusion of lower grade ore will result award is for a lump sum contract in the amount Australian Mine Design and Development in a mine life in excess of 20 years. of approximately A$36 million. prepared preliminary pit optimisations, pit Following the commissioning of the The concentrate produced by the plant is designs and mine schedules over the central concentration plant in May 2011, it continued to shipped in sea containers and transported by part of the Central Lanthanide Deposit (CLD). ramp up and is performing ahead of road and ship to the east coast of Malaysia to The work confirmed the simplicity and low risk expectations. It achieved a final concentrate the LAMP within the Gebeng Industrial Estate, of a mining operation, and the low overall strip grade of 36.8% Rare Earths Oxide (REO) and a Kuantan, Pahang, Malaysia, to process the ▲ 4International Mining| FEBRUARY 2012 GE Energy Power Conversion electrifying precision Converteam is now GE Energy’s Power Conversion business. And we’re at work. In the farthest reaches. Beneath the deepest earth. Applying our power conversion expertise to help increase process yield, operational precision, and system reliability. Working with our mining customers to meet the demands and opportunities of the new electric age. We’re making change happen—electrifying change. ge-energy.com/electrifyingchange WORLD PROSPECTS concentrate through to separated rare put in place a comprehensive process earths products. It will also produce to monitor and evaluate our three synthetic mineral products; compliance with the highest synthetic gypsum, magnesium-rich international standards and our gypsum, and iron-phospho gypsum. responsibility to operate the plant in a On January 3, the Malaysian Atomic safe and sustainable manner. Lynas Energy Licensing Board (AELB) provided maintains a deep commitment to the hardcopy documents relating to the communities in which it operates as LAMP temporary license application for well as ongoing communication with public comment. In accordance with the interested parties to reinforce the facts recommendations of the International about the safety of the LAMP.” Atomic Energy Agency review of LAMP The LAMP is being built in Malaysia of June 2011, these application due to the readily available industrial documents include a detailed waste infrastructure, including industrial land, management plan and safety case. Leaching, up and downstream separation and sources of gas, water and electricity, reagents product finishing workshops at the LAMP The Malaysian Ministry of International Trade from local suppliers and a port that can manage and Industry indicated that the AELB will meet container, chemical and bulk shipments. The on January 30, 2012 for a decision on the Lynas products. A temporary license has duration of area where the plant is being built also offers temporary license. two years. If the temporary license is granted, much knowledge infrastructure, such as A temporary license will allow Lynas to and if Lynas complies with the requirements of technical and trade skills and chemical industry commission the LAMP and, subject to the temporary license, a permanent operating experience. The government infrastructure is in continuous oversight by the Malaysian license can be issued within the two years place and provides accountable regulators, clear regulatory authorities, progressively ramp up Lynas Executive Chairman, Nicholas Curtis, legal frameworks and FDI incentives. the plant to nameplate capacity and sell its said “The Malaysian regulatory authorities have www.lynascorp.com Good progress with development of Vlakfontein coal mine Concor Opencast Mining says it has made excellent progress with the establishment of the new Vlakfontein coal mine near Ogies in Mpumalanga, South Africa, since moving onto the greenfields site in February 2011. Under the contract awarded by African Exploration Mining and Finance Corp (AEMFC), Concor is required to clear the 16.25 ha site, strip overburden, drilling and blast and provide a constant supply of coal at a rate of 70,000 t/month. Ivan Robinson, contract manager Concor Opencast Mining, says that mining work commenced in March 2011 after stripping of 268,000 m³of top soil and the development of a box cut 640 m long by 60 m wide. “There are two coal seams, the seam four is 6.5 m thick and the seam two is 7.2 m thick, separated by interburden. To get to the upper coal seam (seam four), we removed 279,000 m³of soft material in an 8 m thick layer and 592,000 m³of sandstone, also 8 m thick.’ period the N12 is temporarily closed. Both Concor Robinson equates the increased production Product from the two seams will be and Transnet monitor the blasts for vibration. to 1.32 Mt/y of coal compared with the original stockpiled separately. A total of 1.2 million m³of Robinson estimates that steady state mining tender amount of 800,000 t. “We started the interburden between the two coal seams will be will be achieved by a projected March 2012. contract with two Hitachi 32 t excavators and 12 removed over the 36 month contract period. The Mashudu Netshipale, Vlakfontein Mine Manager, Bell B20 and B25 ADTs. We have expanded the contract includes transporting coal to a coal says coal from the mine has been sold to fleet by adding two Liebherr 55 t excavators and crusher, currently a high volume portable Eskom’s Tatuka power station and subsequently a 60 t Komatsu, seven 35 t Volvo ADTs and four machine, on mine property. Thereafter, to the nearby Kendal power station as well as to 40 t Volvos ADTs. Additional equipment on site Vlakfontein mine is responsible for other domestic customers. “Our objective is to included three dozers - a Cat D6, a Bell 850 and transportation of product to various customers. become a contracted mine to Eskom. We will a Komatsu 375 - two 18,000-litre Bell water B&E International is currently constructing a continue to sell coal for blending to domestic tankers, a Cat 140H grader and a pneumatic permanent coal crushing plant on site. customers, mostly other mines.” breaker. About 70% of the fleet is Concor The blasting of overburden and the coal seam Netshipale says that at the end of October, Opencast Mining equipment while the balance is a delicate process because of the proximity of AEMFC requested Concor Opencast Mining to comprises hired equipment, including operators.” the mine to the N12 freeway and Transnet’s oil increase on-site resources in order to ramp up Pit life in phase one at current take-off rates is an pipeline. Blasting is carried out twice a week the monthly coaling volume from 70,000 t to estimated five years. Phase two, comprising mining and Concor Opencast Mining is given a 10 110,000 t/month. He estimates life of mine as 20 of the entire 587 ha project area and including the minute window by the South African National years, which aligns with the company’s mining central and northern reserve, extendslife of mine Roads Agency to carry out the blast, during which licence. to the stipulated 20 years. www.concor.co.za 6 International Mining| FEBRUARY 2012 The power of innovative mining Innovative mining requires innovative thinking. The power of Atlas Copco’s solutions comes from almost 140 years of experience in developing groundbreaking technology – in close cooperation with our customers. This is what we call sustainable productivity. atlascopco.com miningandconstruction.com youtube.com/atlascopcoug facebook.com/AtlasCopcoUnderground twitter.com/ac_underground OPERATION FOCUS More Norbotten iron Northern Sweden has a long iron ore tradition. John Chadwick recently visited the latest project there – Northland Resources’ Kaunisvaara iron ore, for which Metso is providing major process solutions On site at the beginning of November, Building capacity from the surrounding bog by a dike. Eventually offices stood empty, work continued on Current material movement is restricted to the pit will be 2.6 km long, 750 m wide and 350 the shell of the massive process plant quarrying for rock to build infrastructure and m deep. and at the Tapuli open pit, prestripping was prestripping of the Tapuli pit. All this is being Sahavaara’s dimensions will be 2.1 km x 750 rapidly exposing the ore. On November 10, the undertaken by Peab using a fleet of Volvo ADTs m x 360 m. However, it is open at depth and the offices were occupied and in that manner (A40s), wheel loaders and hydraulic excavators. ore quality gets better with depth. This mine another major step forward was taken in the Some 10-12 m of swampy overburden (peat and could eventually go underground. Beyond that, development of this high-grade iron ore till/moraine) is being dewatered (5,000 m3of Northland has identified about 30 mineralised concentrate project. water pumped out daily) and removed at a rate prospects on its tenements that will all be To start with Northland will mine the Tapuli of about 20,000 m3/d to expose the Tapuli ore. explored in more detail in due course. and Sahavaara deposits in northern Sweden, All the overburden will have been stripped by The schedule has been designed to ensure about 100 km north of the Arctic Circle in the autumn 2012. Tapuli will have to be isolated mine production is not affected by the municipality of Pajala and near the village of Kaunisvaara. The Sahavaara deposit is located close to the centre of the Kaunisvaara village and Tapuli is some 4 km to the north of Sahavaara. There is also the Pellivuoma deposit about 15 km from Kaunisvaara, which should extend the life of the Kaunisvaara area. The plan is for Kaunisvaara to begin production first, at 5 Mt/y and a second (2 Mt/y) mining operation will be developed across the border in Finland at the brownfield site of Hannukainen. A DFS is to be completed in this first quarter of 2012. Mining of Tapuli ore will start in the fourth quarter of 2012, with the first shipment from of concentrate from the Port of Narvik in the first quarter of 2013. 8International Mining| FEBRUARY 2012

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hard rock metallic operation that will incorporate. IPCC design criteria for IPCC; fully mobile and semi- in the Sydney Harbour Marriott Hotel. movement and rock support. sandstone, also 8 m thick.' . conveyor tunnels, stockpile buildings, mill .. cross-cutting, bolt hole drilling and extension.
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