MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...

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MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
MODERN MINING
November
    2013
    Vol 9 No 11
www.crown.co.za   IN THIS ISSUE…
                   Bakubung Platinum Mine forges ahead
                   Kipushi dewatering project on track
                   Strong performance from Randgold
                   Feature: Consultants/project houses
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
MODERN MINING
       November 2013
           MINING NEWS
           6    Construction starts on Venetia Underground
           7    Underground drilling at Namib mine underway
           7    Kangala produces its first ROM coal
           8    Sishen takes delivery of six new locos
           10   Further revenue growth for Rockwell Diamonds
           11   Another kimberlite discovery at Tsabong North
                                                                     12
           12   First gold pour at Banro’s Namoya mine looms
           13   Côte d’Ivoire has big exploration potential
           14   Maiden drilling campaign at Jangamo
           14   Firms selected for Steenkampskraal study
           16   DiamondCorp provides update on Lace
           18   Mawson West to mine underground at Dikulushi
           19   Styldrift to use BRPM concentrator

           ARTICLES
                                                                     20
           Cover
           20   EPCM contractor’s skills on display at Bakubung

           Copper/zinc
           26   Ivanhoe on track with dewatering of Kipushi

           Gold
           31   Randgold turns in strong quarterly performance

           Equipment
           51   JVT secures order from diamond mine                  26
           53   Dynamic test facility simulates seismicity

           FEATURE – CONSULTANTS/
           PROJECT HOUSES
CONTENTS

           34   LogiMan to construct Tschudi copper plant
           38   Bateman Africa takes on the Tenova identity
           43   New consultancy fills a market niche
           46   SNC-Lavalin completes Kamoto expansion
           49   Consultants provide entry point to Africa
                                                                     31
           PRODUCT NEWS
           55   Precast concrete culverts chosen for Tweefontein
           56   Vibrocone transforms the crushing process
           57   Johnson adds giant mobile crane to its fleet
           58   Steel arch support systems from Becker
           60   Linatex® extends maintenance period on chute
           61   Osborn mineral sizer for gold application
           63   Melco optimises its TOP solution for conveyors
           64   FLSmidth provides process flow solution for Shanta   34

                                                                          11.13   3
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
SURVEY DETAILS THE STATE
MODERN                                              OF SOUTH AFRICAN MINING
MINING
Publisher                                           I
                                                       t’s no secret of course that
                                                       the last 12 to 18 months
                                                       have been difficult ones
                                                                                          lowest real price in the last decade with a
                                                                                          31 % decline on its highest price since 2008.
                                                                                          Coal, too, has disappointed, dropping by more
Jenny Warwick                     for South Africa’s mining industry. The com-            than 45 % from its 2011 high.
                                  bination of a global economic slowdown to-                 “Mining companies have an ever-diminish-
Editor                            gether with some uniquely South African                 ing capacity to continue absorbing operational
Arthur Tassell                    problems – for example, fractious labour re-            cash outflows in unprofitable operations,”
                                  lations and poor productivity – have left the           says the report. “A decline in local production
Advertising Manager               industry battered and bewildered and there              as a result of closure of marginal mines, lack
Bennie Venter                     is a palpable mood of gloom surrounding the             of new and sustaining investment and more
                                  mining sector.                                          expensive deeper mines will add significant
Design & Layout
                                     But – vague impressions and emotions aside           supply-side upward pressure on prices.”
Darryl James
                                  – just how badly have South Africa’s mining                Sadly, but not surprisingly, PwC points out
Circulation                       companies been impacted by present market               in SA Mine that South Africa does not rate par-
Karen Pearson                     conditions? Well, some hard figures are given           ticularly highly as a mining investment desti-
                                  in the just released (at least as I write this) fifth   nation, performing relatively poorly in various
Subscriptions:                    edition of SA Mine, PwC’s annual survey of              surveys such as the Fraser Institute’s annual
Wendy Charles                     the state of the local mining industry, which is        survey and ranking only 53rd of 148 countries
R410 (incl. Vat) per annum        based on the financial results of the top min-          in the World Economic Forum’s Global Com-
Postage extra outside RSA         ing companies with a primary listing on the             petitiveness report.
                                  JSE, as well as those with a secondary listing             On safety, SA Mine is more encouraging.
Printed by:                       whose main operations are in Africa, for finan-         Safety is clearly improving, with a significant
Shumani Printers                  cial year ends to June 2013. The selection cri-         decrease in fatalities since 2000. The report
                                  teria excluded Anglo American and BHP Billi-            notes that (in terms of LTI frequency rate per
The views expressed in this       ton as, according to PwC, “these organisations          million man hours) the top performing com-
publication are not necessarily   do not necessarily reflect trends in the South          panies in the top 10 in the year under review
those of the editor or the        African mining environment.”                            were Kumba Iron Ore and Exxaro.
publisher.                           The report says that a significant decrease             Discussing labour costs, SA Mine notes that
                                  in the profitability of South African mining            while these (as a percentage of total operat-
Published monthly by:
                                  resulted in a substantial contraction in the            ing expenses) actually decreased slightly from
Crown Publications cc
                                  market capitalisation of South African min-             43 % to 42 %, they still constitute the biggest
P O Box 140,
                                  ing stocks, with the market capitalisation              cost component in the South African mining
Bedfordview, 2008
                                  of the top 37 companies analysed in the re-             industry. Labour cost percentages vary from
Tel: (011) 622-4770
                                  port declining by 28 % from R833 billion to             above 50 % for deep-level mines to below
Fax: (011) 615-6108
                                  R597 billion at 30 June 2013. While one might           30 % in opencast environments.
e-mail: mining@crown.co.za
                                  have thought that platinum miners would be                 Apart from labour, other costs are going up
                                  hardest hit, the gold mining companies in fact          at alarming rates, with consumables and sup-
                                  experienced the biggest loss of value, losing           plies increasing at rates well above inflation,
                                  R109,6 billion (almost 50 %) of their market            and utility expenses (including electricity and
                                  capitalisation, with the biggest contributors to        water) by a massive 17,2 % – though this was
                                  the decrease being AngloGold Ashanti, Gold              a smaller increase than the 21,1 % recorded in
                                  Fields and Harmony.                                     the previous year.
                                     “Generally, balance sheets remained strong,             Finally, SA Mine has an interesting section
                                  with stable liquidity,” the report states. “How-        on risk, with one of the specific risks high-
                                  ever, increased gearing was needed for com-             lighted being the tendency for everyone to re-
                                  panies to fund sustaining capital expenditure           gard South Africa’s mining industry as a sort of
                                  and in some cases operating losses. The R25             ‘cash cow’ that can be exploited for short-term
                                  billion impairment provisions raised highlight          gain – what the report calls “instant gratifica-
                                  the difficulty to make long-term decisions in           tion versus long-term sustainability”.
                                  volatile markets.”                                         Shareholders, for example, want higher
                                     On commodities, SA Mine says that coal               dividends instead of reinvestment, the govern-
                                  maintained its strong position as the leading           ment wants to maximise short-term tax rev-
COVER                             South African mining commodity generator                enue, organised labour wants excessive wage
Shaft sinking at the Bakubung     (28 % of total revenues), followed by PGMs              increases, without any linkage to productivity
Platinum Mine in the Western      (22 %), gold (20 %) and iron ore (17 %). All            gains or long-term viability, while communi-
Bushveld. WorleyParsonsTWP        the other metals and minerals accounted for             ties prefer short-term benefits to longer-term
is the EPCM contractor on the     the balance of just 13 %. The survey, inciden-          initiatives in fields such as education. As PwC
project, which is covered on      tally, notes that South Africa is now only the          says, “Leadership will be required from all
page 20 of this issue.            world’s sixth biggest gold producer, having re-         stakeholders to ensure the long-term optimisa-
                                  cently been overtaken by – of all places – Peru.        tion of the industry.”
                                     PwC says the financial challenge faced by               This latest edition of SA Mine has been pro-
                                  gold mining companies is apparent in the                duced by a PwC team headed by Hein Boeg-
                                  decreases in real rand prices and notes that            man, African Mining Leader, and Andries Ros-
                                  gold has dropped by more than 32 % since                souw, Project Leader, and can be downloaded
      Average circulation         it achieved a 10-year high in the previous fi-          from PwC’s website (www.pwc.co.za/mining).
      (April–June 2013)           nancial year while platinum has fallen to its           Arthur Tassell
             4 337
                                                                                                                                     11.13   5
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
mining news

      Venetia underground project launched                                                                  company’s investment decision, adding that
                                                                                                            it boded well for the economy of the prov-
      The De Beers Group of Companies recently           plc; Mark Cutifani, Chief Executive of Anglo       ince. “The launch of this underground mine
      began construction of a new underground            American plc and Chairman of The De Beers          shows that South Africa remains an invest-
      mine beneath its open-pit Venetia mine in          Group; Philippe Mellier, CEO of The De Beers       ment destination of choice and, through our
      Limpopo Province. The R20 billion (US$2 bil-       Group; Barend Petersen, Chairman of De             mining laws, we will continue to ensure that
      lion) investment will extend the life of Vene-     Beers Consolidated Mines (DBCM); Manne             this investment sustainably benefits mining
      tia beyond 2040 and replace the open pit as        Dipico, Chairman of DBCM empowerment               communities and labour-sending areas.”
      South Africa’s largest diamond mine.               shareholder Ponahalo Holdings; and Phillip            Added Mark Cutifani: “Anglo American’s
         With underground production expected to         Barton, CEO of DBCM.                               roots are firmly in South Africa, and we have
      commence in 2021, the underground mine will           President Zuma praised the investment by        been a proud investor here for almost 100
      treat approximately 130 Mt of ore, containing      De Beers to extend the life of the mine into the   years. Over the last 14 years alone, Anglo
      an estimated 96 million carats. The mine will      2040s. “Let me, again, welcome the launch          American has invested nearly R200 billion in
      also support over 8 000 jobs directly, and a       of this construction phase of the Venetia un-      South Africa, emphasising our commitment
      further 5 000 through the supply chain.            derground project,” he said. “This R20 billion     and making a real difference for South Africa
         President Jacob Zuma, guest of honour,          investment in the diamond industry, the big-       and all South Africans. The positive social
      symbolically turned the first earth at a cer-      gest single investment in the diamond indus-       impact of skills development, the acquisition
      emony held at Venetia on 22 October. Also          try in decades, signals that indeed our mining     of economically valuable experience and the
      present were, amongst others, Susan Sha-           sector is poised for growth, and that it has a     potential to uplift rural and sometimes poorer
      bangu, Minister of Mineral Resources; Sir          bright future.”                                    communities, is what exists here at the heart
      John Parker, Chairman of Anglo American               Minister Shabangu also commended the            of Venetia.” 

      VIPs including President Jacob Zuma and Minister Susan Shabangu at the launch of the Venetia underground mine on 22 October (photo: De Beers).

      Record gold production by Tau Lekoa                                                                      “Following the granting of the provisional
                                                                                                            liquidation order at Blyvoor on 6 August 2013,
      In the quarter ended 30 September 2013,            our flagship Tau Lekoa mine which showed           Blyvoor has been classified as a discontinued
      Village Main Reef achieved a record gold           further improvements on the June quarter,”         operation. As Blyvoor remained fully opera-
      production at its Tau Lekoa mine with more         comments Ferdi Dippenaar, Village Main’s           tional during July 2013 prior to the granting
      than 1 000 kg produced, up 33 % quarter on         Chief Executive Officer. “Our challenge will be    of the provisional liquidation order, the opera-
      quarter, from 817 kg (26 267 oz) to 1 090 kg       to maintain the momentum going into what is        tion incurred a loss of R46 million. Manage-
      (35 044 oz). Tau Lekoa generated cash of           normally a difficult time of the year.             ment does not expect any further losses from
      R156 million for the quarter. Gold production         “The restructuring process at our Buffels       Blyvoor.
      costs from continuing operations were down         operation was completed with the mine be-             “Our focus on ensuring that we generate
      11 % from R317 320/kg to R285 082/kg.              ing placed on care and maintenance on              positive free cash flows from our operations
         Losses from Buffels materially reduced af-      16 August, 2013 when the initial retrench-         whilst not unduly subsidising non-perform-
      ter it was placed on care and maintenance          ment process was concluded. Due to the tim-        ing assets is delivering the planned results.
      during the quarter while Blyvoor was placed        ing involved, Buffels still incurred substantial   Some work still remains to be done at limiting
      in provisional liquidation, resulting in no fur-   electricity and labour costs in the quarter        pumping costs at Buffels and with production
      ther future losses from this operation.            which are expected to decrease in the current      from Cons Murch expected to increase we
         “From an operational perspective, Village       quarter to levels of approximately R7 million      are confident that these measures will have a
      is pleased with the production achieved at         a month.                                           positive impact on the Q2, 2014 FY results.” 

6        11.13
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
mining news

Underground diamond drilling at Namib mine underway
AIM-listed, London-headquartered North
River Resources has begun underground
diamond drilling at its Namib lead zinc silver
project in Namibia. The initial campaign, in-
volving approximately 5 000 m of drilling, is
designed to upgrade and expand the proj-
ect’s compliant resources. The Namib mine
currently has JORC-compliant inferred and
indicated resources of 668 000 tonnes at
6,6 % zinc (Zn), 2,5 % lead (Pb) and 46 g/t
silver (Ag).
   To control and secure its schedules, North
River has purchased a Kempe pneumatic
U3‑9B diamond drill, which is capable of drill-
ing holes to a maximum length of 300 m. An
extensive drill campaign has been designed
for beneath and within the historic South and
Junction mine workings, and also at the un-
mined North orebody resources area. A Kem-
pe specialist is on site to train North River
staff as drillers as part of this process.         The Namib project is a brownfield site. The Namib mine operated for 24 years from 1968 to 1992 as a
   North River reports it is also mobilising a     low-cost private concern, using simple mining techniques. It was closed due to low commodity prices in
                                                   the early 1990s, union problems and a lack of capital (photo: North River Resources).
second diamond drill, an Atlas Copco 262,
to expedite the drilling. This drill is a larger   underground to facilitate operations.               tromagnetic surveys, and mine planning. It is
and more powerful diamond drill and, as a            Both initial drill campaigns are expected to      hoped that this process will also upgrade ex-
result, some excavations are required to pre-      take several months to complete.                    isting resources and potentially prove maiden
pare its drill pads. The planning and prepara-       In addition to both drilling campaigns,           reserves. The results of this, along with the
tion for this drill campaign is well advanced,     North River’s technical consultants are con-        two drilling campaigns, will form part of the
with mining equipment on site, and the in-         ducting further geological reviews, in con-         Definitive Feasibility Study on the Namib proj-
stallation of explosives magazines, ventila-       junction with the re-testing of historic assays,    ect that is currently underway and targeted
tion and water systems already constructed         re-interpretation of historic down-hole elec-       for completion in March 2014. 

Kangala produces its first ROM coal                                                                    down estimates. The project remains within
                                                                                                       capital budget estimates and there are cur-
ASX-listed Universal Coal is a step closer to      site. Cold commissioning of the BC1/BC2 cir-        rently no indications of any potential cost
becoming a coal producer following mining of       cuit was due to start in mid-November 2013,         over-runs.
the first run of mine (ROM) coal at its Kangala    with hot commissioning commencing at the               Kangala is Universal Coal’s first operation.
coal mine in the Witbank coalfield. With the       beginning of December 2013. Off-site con-           The operation is being run on the histori-
BC1/BC2 circuit of the processing plant hav-       struction of the DMS plant is progressing well      cally proven outsourced model, with Stefa-
ing arrived on site and assembly well under        and is ahead of schedule.                           nutti Stocks Mining Services supplying both
way, Kangala remains on schedule to deliver           Recruitment of mining personnel is nearly        the mining fleet and skill set to run the ini-
first production in February 2014.                 complete, with almost 100 % of the perma-           tial eight-year Wolvenfontein pit, operating a
   The Kangala mine will be the company’s          nent mining staff vacancies currently filled.       fleet of 60-t trucks, 85-t excavators and sup-
first coal operation, producing 2,1 Mt/a of        Recruitment of the processing plant person-         porting equipment. The processing facility
saleable thermal coal, with 2 Mt/a allocated       nel is progressing with off-site training of the    containing a 350 t/h crushing and screening
to Eskom, and a further 100 kt/a to the export     new recruits under way.                             circuit and the 200 t/h DMS washing plant,
market with leading South African coal miner          Drawdown on the Kangala mine project             will be owned by the company, but its opera-
Exxaro. The majority of the coal allocated to      finance facility provided by Rand Merchant          tion will be outsourced to Mineral Resource
Eskom will pass through the completed BC1/         Bank continues in line with forecasted draw-        Development. 
BC2 crushing and screening plant, due to be-
gin commissioning in December this year.
   The boxcut, on which construction started
in the first week of July 2013, remains on
                                                   Power plant ESIA gets the nod
schedule, with the upper most coal seams           Ncondezi Energy, listed on AIM, has received        erage yield of 70 % and an average strip ratio
having been exposed. The first ROM coal            official notification from Mozambique’s Minis-      of 0,61 bcm/tonne using contractor mining.
scheduled from the pit will be utilised for the    try for Coordination of Environmental Action           Mine commissioning is planned for H2 2016
base of the product stockpiles to prevent          (MICOA) regarding the approval of the Envi-         to meet the power plant stockpile require-
contamination at a later stage with remain-        ronmental Social Impact Assessment (ESIA)           ments ahead of its commissioning in H2 2017.
ing boxcut coal to be utilised during commis-      for the Ncondezi mine, part of its 300 MW in-          Ncondezi Energy has also recently complet-
sioning of the crushing and screening plant in     tegrated thermal coal mine and power plant          ed additional infill drilling of 33 core and three
December 2013.                                     project which is located near Tete in north-        LD holes within a target mine area of the South
   The processing facility plant has two sec-      ern Mozambique. Ncondezi Energy will now            pit to further increase drill density and upgrade
tions, namely the DMS washing and the BC1/         commence the application process for an             JORC indicated resources into the measured
BC2 crushing and screening circuit. Shipping       environmental permit.                               category. The drilling has been focused within
of the BC1/BC2 circuit to site has involved           The Ncondezi mine will be an open-pit op-        a ring fenced area capable of supplying the re-
the modules being transported in sequence,         eration targeting production of 1,3 Mt/a of         quired coal for the first phase of the 300 MW
facilitating assembly as the modules arrive on     saleable product to the power plant at an av-       power plant for more than 25 years. 

                                                                                                                                                    11.13
                                                                                                                                                    10.13   7
MODERN MINING IN THIS ISSUE - Bakubung Platinum Mine forges ahead Kipushi dewatering project on track Strong performance from Randgold ...
mining news

      Sishen takes delivery of six new locos                                                                only owned four GE locomotives for loading
                                                                                                            in pairs. The additional locomotives had to
                                                                                                            be rented from Transnet for loading in pairs
                                                                                                            at R13 700 per locomotive per day to meet
                                                                                                            dispatching targets. Each time a locomotive
                                                                                                            broke down, loading pairs had to be split
                                                                                                            up in order to compensate for the defective
                                                                                                            locomotive.
                                                                                                               The new C30-ACi GE locomotives will
                                                                                                            make it possible to deliver on production
                                                                                                            performance levels at Sishen. Where two
                                                                                                            locomotives were needed previously to load
                                                                                                            a train of 114 wagons, only one will now be
                                                                                                            required. The new locomotives will therefore
                                                                                                            also save costs for Sishen mine because it
                                                                                                            will not be necessary to hire locomotives to
                                                                                                            meet capacity anymore.
                                                                                                               This project is a significant milestone be-
                                                                                                            cause Sishen mine will not replace these
                                                                                                            locomotives again in the current life of mine,
                                                                                                            as they have a lifespan of 35 years. The new
                                                                                                            units are configured for Sishen’s loading con-
      The scene at the handover of the new locomotives (photo: Anglo American).
                                                                                                            ditions and were commissioned and tested
                                                                                                            without any problems.
      Kumba Iron Ore’s Sishen mine took delivery          needed because it was hard to find parts and         Tim Schweiker, President and CEO of Gen-
      of six brand new locomotives on 31 October          current technology did not work on existing       eral Electric South Africa, handed the key for
      2013. These state-of-the-art locomotives are        locomotives. Maintenance costs also started       the first locomotive to Kumba Iron Ore’s CEO,
      manufactured by international conglomerate          to increase because these older technolo-         Norman Mbazima, saying, “General Electric
      General Electric (GE).                              gies had to be replaced and sourced from all      is grateful for the opportunity to have Sishen
        Locomotives started running at Sishen             over the world.                                   mine as a customer. We are impressed by
      mine in 1978 and current ones exceeded                Further, Sishen mine requires ten loco-         the magnitude of the operations and that this
      their operating time by almost seven years.         motives (five pairs) to maintain successful       mine again put their trust in GE to provide the
      Therefore new locomotives were critically           dispatches of iron ore. Previously, the mine      locomotives.” 

      Global exploration spend shows sharp drop                                                             to a 24 % drop in their exploration budget to-
                                                                                                            tal in 2013.
      According to preliminary results from SNL           struggled to attract investor interest and have      Despite lower allocations for most coun-
      Metals Economics Group (SNL MEG)’s 24th             been forced to rein in spending as their cof-     tries, companies continue to explore across
      edition of Corporate Exploration Strategies         fers have depleted; in 2013, the juniors’ total   the globe, with exploration planned for 127
      (CES), the estimated worldwide total budget         exploration budget fell 39 % year on year,        countries in 2013, down from 129 in 2012.
      for nonferrous metals exploration dropped to        dropping their share of the overall total to      This includes a continued willingness to ex-
      US$15,2 billion in 2013 from US$21,5 billion in     34 % from a high of 55 % in 2007. Although        plore in high- or medium-risk jurisdictions,
      2012 – a 29 % decrease.                             most metals prices remain at or near ten-year     which accounted for more than half the an-
         SNL MEG’s 2013 exploration data and              averages, higher operating and capital costs,     nual budget total for the past several years,
      analysis are based on information collected         along with pressure from activist sharehold-      despite ongoing concerns and uncertainty
      from almost 3 500 mining and exploration            ers, have required major companies to focus       over security, policy, taxation, and resource
      companies worldwide, of which more than             on a return to healthy margins after years of     nationalism. In contrast, the share of budgets
      2 100 had exploration budgets for 2013.             growth-oriented spending. The majors’ cut-        allocated to mature mining regions such as
         Since early 2012, junior companies have          backs in capital projects and exploration led     Canada and the United States fell in 2013:
                                                                                                            Canada’s total budget was down 41 % year
                                                                                                            on year due to weakness in the country’s
      Kibo Mining starts drilling at Imweru                                                                 junior sector, while the United States’ total
                                                                                                            declined 38 % as many gold majors scaled
      Kibo Mining, listed on AIM and the AltX, has        fied by previous operators on the project.        back exploration programmes. Canada and
      begun a 3 000 m drill programme at its Im-             These zones extend over 10 km along            Australia remained the top countries overall,
      weru project in northern Tanzania. The proj-        strike and have been drilled to a maximum         with the US, Mexico, and Chile rounding out
      ect is located in the gold prolific Lake Victoria   depth of about 200 m. Based on this drilling, a   the top five.
      goldfield and is situated approximately 35 km       NI 43-101 compliant inferred gold resource of        The proportion of overall exploration bud-
      west of and along strike of AngloGold Ashan-        629 000 oz of gold was calculated for Imweru.     gets dedicated to minesite work reached a
      ti’s Geita deposits. Imweru, together with             Kibo was established in early 2008 to ex-      new historical high in 2013, with producers
      Lubando (approximately 35 km east of Geita),        plore and develop mineral deposits in Tanza-      emphasising brownfields programmes as a
      contains a total gold resource of 797 900 oz.       nia and was admitted to AIM in London on          less capital-intensive and less risky means
      The two brownfield exploration projects were        27 April 2010 and the AltX in Johannesburg        of replacing and adding reserves. In con-
      recently acquired by Kibo.                          on 30 May 2011.                                   trast, many junior companies sharply cur-
          The drill programme at Imweru will com-            The mineral assets of the company com-         tailed late-stage and feasibility programmes
      prise approximately 750 m of diamond drill-         prise five projects areas in Tanzania – Haneti    in an effort to conserve cash, while some
      ing and 2 250 m of reverse circulation drilling     (nickel, PGE and gold), Morogoro (gold), Lake     majors made strategic decisions to scale
      in 20 holes and has been designed to further        Victoria (gold), Rukwa (coal) and Pinewood        back late-stage exploration due to near- and
      evaluate the gold mineralised zones identi-         (coal and uranium).                              medium-term uncertainty. 

8        11.13
mining news

CEEC Medal-winner for 2013 announced
A paper presented at the 45th Annual Canadi-
an Mineral Processors Operators Conference
in Ottawa, Canada this year has received the
2013 CEEC (Coalition for Eco-Efficient Com-
minution) Medal. The presentation of the
Medal was made at a function held in Van-
couver, BC, Canada.
   Fisher Wang, Stefan Nadolski, Olav Mejia,
Jeff Drozdiak and Bern Klein co-authored the
paper titled Energy and Cost Comparisons of
HPGR based circuits with the SABC circuit
installed at the Huckleberry Mine. This paper
summarises a comprehensive energy and cost
study comparing an existing SAG mill-based
circuit at Huckleberry mine with two proposed
circuits involving comminution technologies
which are associated with energy efficiency:
high pressure grinding rolls (HPGR) and high
speed stirred mills. It was concluded that
the energy reduction for the new flowsheets
significantly improved the economics of the       Dave Nikolejsin, BC Deputy Minister for Energy
Huckleberry comminution duty.                     and Mines, and Fisher Wang, one of the co-au-
                                                  thors of the 2013 CEEC Medal-winning paper.
   Over 10 papers were nominated for the
award. The Medal review committee was led         the concepts to be readily adapted to op-
by CEEC Director Dr Zeljka Pokrajcic, Prin-       erating plants or incorporated in the design
cipal Process Engineer with WorleyParsons.        of new circuits. Further criteria were that the
The committee evaluated all nominated pa-         results should be robust and believable and
pers on the basis of the paper’s potential to     that papers should communicate their ideas
improve energy efficiency and the ability for     clearly and effectively. 

Jubilee moves forward on tailings project
Jubilee Platinum says it has reached a key        discussions with the community to access a
milestone in its plans to process the platinum-   second road link to allow the targeted pro-
bearing Dilokong Chrome Mine (DCM) tailings       cessing capacity to increase to 35 000 tonnes
by concluding a funding arrangement to meet       per month.
the working capital requirement. Jubilee is          “The processing of the Dilokong Chrome
targeting the start of processing within the      tailings significantly enhances Jubilee’s earn-
next three months based on expected time          ings capability and brings the company a
lines to re-commission the processing plant.      step closer to concluding the proposed Plati-
   The funding arrangement includes both          num Australia transaction. We have a strong
debt and equity. The debt component was           asset base from which to grow and remain
secured following due diligence by the inves-     fully focused on becoming an integrated and
tor on the earnings potential of the process-     operational platinum company.”
ing of the DCM tailings, which allowed Jubi-         Jubilee’s subsidiary, Pollux Investment
lee to reduce the equity funding requirement.     Holdings, was awarded the processing right
   “The funding arrangement secured by            to recover the platinum group metals (PGMs)
Jubi­lee is a key step towards the commence-      contained in the 800 000 tonnes DCM sur-
ment of the processing of the DCM tailings,”      face tailings resource. Jubilee concluded a
comments Jubilee CEO Leon Coetzer. “Jubi­         toll processing agreement in November 2012
lee has targeted an initial processing rate of    with PhokaThaba Platinum, a subsidiary of
10 000 tonnes per month ramping up to a           Platinum Australia Limited (PLA) (under ad-
targeted 25 000 tonnes per month within four      ministration), for the processing of the tail-
months of operation. Jubilee is currently in      ings at the Smokey Hills concentrator. 

SRK well represented at conference
SRK Consulting (UK) was a gold sponsor of            “Aside from the inspirational location, del-
the recent International Mine Closure Confer-     egates were treated to a presentation relat-
ence held at the Eden Project in Cornwall, UK     ing to closure activities on the coal fields in
between the 18th and 20th September. The          Germany and ideas that demonstrated that
conference was attended by delegates from         a regional approach to closure may allow for
over 23 countries. SRK was itself represented     the leverage of many economic opportuni-
by 21 delegates from six offices located on       ties as long as closure planners ‘think big’,”
four continents with seven SRK staff present-     said James Lake, principal scientist, SRK
ing papers at the conference.                     Consulting (SA). 

                                                                                       11.13   9
mining news

     Rockwell Diamonds reports further revenue growth
     Reporting on its second quarter (to 31 August
     2013), Rockwell Diamonds says the quarter
     was characterised by strong year-on-year
     revenue growth of 33 %. Total revenue was
     C$9,9 million, comprising C$8,6 million from
     diamond sales and beneficiation income of
     C$1,3 million, up 24 % and 185 %, respec-
     tively. The overall volume of gravel processed
     and diamond production from Rockwell’s
     properties (including royalty mining con-
     tracts) was up 26 % and 46 % year-on-year,
     respectively. The operating profit for the
     quarter was C$2,5 million. The net loss for the
     quarter narrowed to C$1,4 million compared
     to a loss of C$2,0 million in the prior year.
        Commenting on the second quarter perfor-
     mance of Rockwell, James Campbell, CEO
     and President, said: “Our second quarter
     results confirm that operationally we are in a
     stronger position than two years ago, having
     delivered on a number of strategic milestones
     towards our initial objective of processing
     500 000 m3 per month of quality gravels. We
     have also been able to extend the life of our
     flagship operation at Saxendrift by integrat-
     ing Saxendrift Extension, which has a five-
     year remaining mine life, into Saxen­      drift’s
     mine plan with pleasing results. The suc-
     cessful commissioning of the Saxendrift Hill
     Complex plant, based primarily on Bulk X-ray
     technology, provides us with a blue print for
     future mine developments. At Niewejaarsk-
                                                          The Bulk X-ray plant at Rockwell’s Saxendrift Hill Complex (photo: Arthur Tassell).
     raal, we commissioned the mine in record
     time and are on track to achieve nameplate           flow from operations of C$3,6 million. From             Subsequent to the balance sheet date,
     capacity by the end of 2013, slightly behind         a financial perspective, the results are start-      Rockwell recovered four rough diamonds
     our original plans.                                  ing to reflect the decisions taken during the        each exceeding 100 carats in weight from its
        “The steady improvement in our operat-            course of our corporate turnaround and have          operations in the MOR region including two
     ing results is a direct result of our decision       equipped us to achieve our objective to be a         typical yellow MOR stones.
     to exit our loss-making operations and fo-           mid-tier diamond mining company.”                       Progress also continues with Rockwell’s
     cus our resources on growing our footprint              The effectiveness of the Bulk X-ray technol-      secondary strategy to leverage the value of
     in the Middle Orange River (MOR) region.             ogy at Saxendrift Hill Complex was confirmed         certain properties that it does not wish to
     Notably, monthly carat production from our           during the quarter. A grade improvement ex-          mine due to size or other reasons.
     own operations in July and August was at its         ceeding 40 % was achieved compared to the               Four royalty contract miners operated at
     highest level since the strategic review that        traditional Saxendrift pan plant, shown by           Tirisano (in North West Province) during the
     took place at the start of fiscal 2012. Second       processing Saxendrift Extension gravels in           second quarter and a fifth is due to start in
     quarter highlights include the 33 % revenue          parallel though both plants.                         the third quarter, and the projected monthly
     growth, representing our fifth consecutive              Production commissioning commenced                mining volumes at Tirisano are 150 000 m3.
     quarter with higher US dollar-denominated            at Niewejaarskraal in July 2013 on Rooikop-          The contract miner at Rockwell’s Zwemkuil
     revenues. In addition, we achieved a C$2,5           pie gravels with the recovery of 175 carats,         property in the MOR commenced production
     million operating profit and positive cash           including three stones exceeding 10 carats.          in June 2013. 

     Dunrobin gold project EIA approved                                                                        AMC is a Zambian-based environmental and
                                                                                                               mining engineering firm formed in 1994.
     ASX-listed Luiri Gold has received official ap-         “The EIA permit is a significant step towards        The EIA was carried out on the basis of a
     proval of its Environmental Impact Assess-           commencement of development at Dunrobin,”            proposed project involving the construction
     ment (EIA) and the accompanying Environ-             says Luiri Gold Chairman Melissa Sturgess.           of a new gold mining operation with a 10-year
     mental Permit for the proposed open pit and          “The company’s commitment to corporate               life of mine. Operations will comprise open-
     processing plant at its Dunrobin project, west       social responsibility (CSR) programmes and           pit mining at the historic Dunrobin mine and a
     of Lusaka in Zambia.                                 local job creation was a key element of the          150 000 to 200 000 t/a gold processing plant.
        A positive decision was made by the Zam-          EIA approval process and the company looks           The plant, to be located adjacent to the open
     bia Environmental Management Agency                  forward to establishing its initial production       pit, will produce 13 000 to 18 000 oz per an-
     (ZEMA) following extensive consultation with         capacity to provide the cash flows required to       num. The planned process circuit comprises
     numerous stakeholders and is valid for a three       unlock the full potential of its significant min-    crushing, milling, cyanide leaching, solids/
     year period in which project implementation          ing licence tenement holdings.”                      liquid separation, cyanide recovery, carbon
     must take place. This approval and issue of             Luiri commissioned African Mining Con-            in solution Au recovery, carbon elution and
     the Environmental Permit is the last major per-      sultants (AMC) to conduct its Environmental          regeneration, gold electrowinning and tail-
     mit required ahead of project development.           Impact Assessment for the Dunrobin project.          ings disposal. 

10      11.13
mining news

Another kimberlite discovery at Tsabong North
Pangolin Diamonds Corp, listed on the TSX-V,      proximately 100 km north of the town of Tsab-       targets in the project area, several of which
recently announced that it had discovered a       ong in south-western Botswana, is 1 545 km2         have surface areas exceeding 20 ha.
new kimberlite, Martin 01, in its 100 %-owned     in size. It is comprised of anomalous concen-          The project is situated on the margin of
Tsabong North project in Botswana. The Mar-       trations of kimberlite indicators and has large     the Archaean Kaapvaal Craton in a similar
tin 01 kimberlite is located approximately        geo-botanical features. Pangolin has identi-        tectonic environment to the Orapa kimberlite
12 km north of the Magi kimberlite, discov-       fied more than 50 drill-ready aeromagnetic          field. 
ered earlier this year.
   A single hole was drilled into the magnetic
target. Geophysical modelling indicates that
the Martin 01 kimberlite may be up to 31 ha
in size (0,31 km2).
   Crater facies volcanic sediments were in-
tersected at 85 m below surface while sandy
tuffs were intersected at a depth of 105 m.
   According to Pangolin, this kimberlite is
distinguished from other kimberlites in the re-
gion in that it has a cover of Karoo sediments,
including poorly developed thin coal seams.
This is the first recorded discovery of a kim-
berlite in Botswana below the Karoo Forma-
tion in the area.
   Core samples are being submitted to inde-
pendent laboratories to recover any indicator
minerals, and any diamonds.
   Comments Dr Leon Daniels, Pangolin’s
Chairman: “The discovery of an additional
kimberlite within the project area is highly
encouraging. The fact that it is covered by
Karoo age rocks indicates the significance
of not stopping the search for more kimber-
lites.”
   The Tsabong North project, located ap-         A drill rig operating at the Tsabong North site in south-western Botswana (photo: Pangolin Diamonds).

                                                                                                                                                   11.13 11
mining news

     First gold pour at Namoya expected by year end

     The Namoya site as it was in mid-October this year (photo: Banro).

     Canada’s Banro Corporation reports that                gramme is proceeding on schedule with                   ing increased leach capacity.
     development of its Namoya gold project in              completion of the construction and installa-              Upon completion of all phases of this ex-
     the DRC continues to progress and says it is           tion of the four new, larger-capacity, carbon-          pansion, including the addition of a second
     expected that the stacking of the heap leach           in-leach tanks. The removal and refurbish-              carbon kiln and a second elution circuit, it is
     pads will commence in early Q4, leading to             ment of six of the smaller tanks is underway,           anticipated that higher throughputs of up to
     Namoya’s first gold pour before year end. The          with re-installation of these tanks expected            140 000 tonnes per month and improved gold
     EPCM contractor on the project is MDM En-              during the fourth quarter of this year, provid-         recoveries will be achieved during 2014. 
     gineering.
        Namoya – which is costing approximately
     US$225 million to develop – will have antici-
     pated average annual production of 124 000
                                                            Shanta on track to produce 63 000 ounces
     ounces of gold over a seven-year mine life.            Shanta Gold, which operates the New Luika               erational performance, Mike Houston, CEO,
     The mine lies on the south-western end of              Gold Mine in the Lupa goldfield of south-west           said: “This quarter has seen two important
     the Twangiza-Namoya gold belt in Maniema               Tanzania, reports a gold production of 18 914           milestones in Shanta Gold’s ongoing devel-
     province, approximately 225 km south-west              ounces in Q3 2013, up 31 % from Q2. Gold                opment. Firstly, one can say with a certain
     of Bukavu.                                             sales for the quarter were 19 235 ounces at             degree of confidence that, with four consecu-
        Banro also reports that its Twangiza mine           an average price of US$1 366 per ounce. The             tive months in excess of 6 000 ounces, gold
     near Bukavu produced 20 784 ounces of gold             company says it is on track to deliver a full           production at New Luika has stabilised and
     for the third quarter of 2013, as the mine con-        year gold production of circa 63 000 ounces             the company is well positioned to increase
     tinued to optimise its processes and under-            and that it is maintaining its full year guidance       production with the commissioning of the
     go its planned expansion to increase future            of an All-in Sustaining Cost of US$1 000 to             new crusher and elution/electrowinning plant
     throughput to up to 1,7 Mt/a.                          US$1 100 per ounce.                                     in Q2 2014. This, supported by our debt re-
        The second phase of the expansion pro-                Commenting on the Q3 production and op-               structuring and cost reduction initiatives, has
                                                                                                                    given the company a solid platform to not

      Senior appointment by Anglo American
                                                                                                                    only ride out the current volatile gold market
                                                                                                                    but also drive returns for shareholders.
                                                                                                                       “Secondly, the announcements of our
      Anglo American plc has announced the appoint-         the Base Metals and Minerals group.                     maiden reserve and the positive drilling re-
      ment of Ruben Fernandes as CEO of its Nickel,            Aged 48, Fernandes joined Anglo American in          sults have provided the company with an op-
      Niobium and Phosphates businesses, with effect        2012, having been head of mining at Votorantim          portunity to review the total resource with a
      from 1 December 2013, following its decision to       Metals in Brazil, responsible for projects and ex-      view to increasing production and extending
      combine the management of the three commodity         ploration activities around the world, as well as op-   the life of mine at New Luika.”
      businesses.                                           erations in Peru and Colombia. Between 2009 and            The production outlook for 2014 is de-
         Walter De Simoni, CEO of the Nickel business       2011, he was COO at Vale Fertilisers, responsible       pendent on successfully commissioning the
      since 2009, has decided to leave Anglo American       for the fertiliser operations, sales and marketing.     crushing and elution/electrowinning plants
      to pursue other opportunities. Fernandes, currently      A graduate in Metallurgical Engineering from         and the ongoing work on optimising the
      CEO of Anglo American’s Niobium and Phosphates        the Federal University of Minas Gerais, he also         milling capacity. Shanta is therefore, at this
      businesses, will report to Duncan Wanblad, CEO of     holds an MBA from the University of São Paulo.          juncture, targeting production of circa 80 000
                                                                                                                    ounces for 2014. 

12      11.13
mining news

Côte d’Ivoire has big exploration potential                                                         the country’s technical skills base. The mine
                                                                                                    had also developed a market for goods and
Côte d’Ivoire has the potential to become one     missioned amid the unrest that followed the       services from local suppliers.
of Sub-Saharan Africa’s key exploration des-      disputed outcome of the presidential election        “In line with our partnership philosophy, we
tinations if its government and mining com-       and initially suffered from an erratic power      regard the local community as an important
panies join in a long term commitment to the      supply from the Ivorian grid, as well as some     stakeholder in Tongon, and since the start we
development of a sustainable mining industry      plant start-up issues. These were being ad-       have worked closely with our community on
in the country. This is the view of Randgold      dressed through a number of plant expansion       projects designed to improve education and
Resources Chief Executive Mark Bristow.           and upgrade projects, Bristow said, and the       health, and to support agriculture. As part of
   At a media briefing in the West African        mine’s performance was steadily improving.        this programme, I’ll be handing over a trac-
state, Bristow said Côte d’Ivoire was highly        Tongon’s positive impact on the Ivorian         tor, a water tower, three teachers’ houses and
prospective for gold and other metals but         economy was not confined to its contribution      three more classrooms to our neighbouring
under-explored relative to some of its West       to the state coffers, Bristow said. Randgold’s    villages. As with all the preceding projects,
African peers. In addition, it had arguably the   local employment policy had directly created      we’ll be monitoring these to ensure that
most advanced infrastructure in the region        almost 1 800 jobs at the mine while its train-    the villages get the full benefit from them,”
– a key consideration for investors – as well     ing programmes had significantly increased        Bristow said. 
as a competent civil service. To exploit these
advantages, the Ivorian government should
ensure that its mining code, currently under
review, remained investor-friendly and that it
                                                  New Dawn’s indigenisation plan approved
acted as a partner to the mining companies        TSX-listed New Dawn Mining Corp, which            These transactions are not expected to ini-
in the creation of long term economic value       operates gold mines in Zimbabwe, including        tially provide significant capital to New Dawn.
to benefit all stakeholders.                      the Turk mine near Bulawayo, has announced        The second is the transfer, for no monetary
   Randgold owns and operates Côte                that the Zimbabwe Minister of Youth Devel-        consideration, of equity interests in each of
d’Ivoire’s largest gold mine at Tongon and        opment, Indigenisation and Economic Em-           the company’s operating subsidiaries in Zim-
Bristow said the company’s geologists were        powerment has approved the company’s pre-         babwe to Community Share Ownership Trusts
aggressively exploring its portfolio of 15        viously filed Plan of Indigenisation.             and Employee Share Ownership Schemes
permits elsewhere in the country for further         As previously announced, the company’s         amounting to 10 % and 5 %, respectively.
multi-million ounce gold deposits.                Plan consists of two key components. The             New Dawn reported recently that it was
   Tongon, which went into production at the      first is the acquisition of equity interests in   closing its Dalny mine near Kadoma. It said
end of 2010, has already produced more than       New Dawn by four independent indigenous           that a major factor contributing to Dalny’s
600 000 ounces of gold and contributed more       investor groups in Zimbabwe, as well as the       current difficulties had been the more than
than US$50 million to the State in the form       participation by the National Indigenisation      two-year delay in the approval process for the
of royalties and taxes. The mine was com-         and Economic Empowerment Fund (NIEEF).            company’s proposed Plan of Indigenisation. 

                                                                                                                                              11.13 13
mining news

     Maiden drilling campaign at Jangamo                                                                     total heavy minerals, with ilmenite, rutile and
                                                                                                             zircon recorded in the mineral concentrate.
     Savannah Resources, an exploration com-               The 2 000 m RC drilling programme will fur-          Agua Terra, which has extensive experience
     pany listed on London’s AIM, has com-               ther define the prospectivity of Jangamo and        in the Jangamo locality, has been contracted
     menced an initial drilling programme at its         test key dunal systems within the project area.     to complete this initial drill programme.
     80 %-owned Jangamo heavy mineral sands              Previous regional scout sampling conducted             “This is a highly exciting time for the com-
     project in southern Mozambique.                     by Savannah returned results up to 18,1 %           pany as we embark on our maiden drilling
                                                                                                             campaign at our flagship Jangamo project,”
                                                                                                             comments Savannah’s CEO, David Archer.
                                                                                                             “The programme has been designed to test
                                                                                                             the prospectivity of the three main morpho-
                                                                                                             logical zones identified and test key dunal
                                                                                                             systems which are thought to be prospective
                                                                                                             for mineral sands. We believe that the proj-
                                                                                                             ect has the potential to generate significant
                                                                                                             value for the company and its shareholders
                                                                                                             and look forward to reporting on this drilling
                                                                                                             programme and results in due course.’’
                                                                                                                The project area is covered by a series of
                                                                                                             north-east trending Quaternary dunal and flu-
                                                                                                             vial deposits, many of which have confirmed
                                                                                                             heavy mineral mineralisation from surround-
                                                                                                             ing explorers. The area has three morpho-
                                                                                                             logical zones, composed of two inland dunes
                                                                                                             (red sands) which are the highest areas, sep-
                                                                                                             arated by a low lying area (alluvial sands) with
                                                                                                             different sedimentary characteristics.
                                                                                                                The project covers an area of 180 km2 along
                                                                                                             an extensive dune system near the village of
                                                                                                             Jangamo, about 350 km to the north-east of
                                                                                                             the capital, Maputo.
                                                                                                                Jangamo lies immediately to the west of
                                                                                                             Rio Tinto’s Mutamba deposit, one of two ma-
                                                                                                             jor deposits Rio has defined in Mozambique,
                                                                                                             which collectively have an exploration target
                                                                                                             of 7-12 billion tonnes at 3-4,5 % total heavy
     RC drilling at Jangamo in October this year (photo: Savannah Resources).                                mineral (THM). 

     Firms selected for Steenkampskraal feasibility study
     Canada’s Great Western Minerals Group Ltd           the primary independent project coordinator         number of infrastructure projects in Africa.
     (GWMG) reports that it has selected the fol-        and author of the NI 43-101 compliant SKK              SMS, also based in South Africa, has been
     lowing firms to prepare the Steenkampskraal         feasibility study report. Venmyn Deloitte is        selected as the independent QP to prepare
     (SKK) rare earth project feasibility study –        a global mining and valuation business with         the SKK underground mine and infrastructure
     Venmyn Deloitte, ULS Mineral Resource Proj-         professional expertise providing independent        design portion. SMS is a privately-owned
     ects and Sound Mining Solution (SMS).               technical and economic assessment and re-           mining consultancy company with significant
       “Each firm was selected because of their          view of mineral projects.                           experience in Africa. SMS has recently been
     excellent expertise in their component of the          ULS is based in South Africa and has been        engaged in several rare earth projects in dif-
     project,” commented GWMG President and              selected as the independent QP to complete          ferent capacities.
     CEO Marc LeVier. “The selection of these            the SKK process plant and surface infrastruc-          The Steenkampskraal project is located
     respected firms is an important next step in        ture portion of the study. ULS specialises in the   350 km north of Cape Town in Western Cape
     moving the SKK project to production.”              engineering and delivery of mineral resource        Province and is based on a previously operat-
       Venmyn Deloitte has been appointed as             projects and has undertaken a significant           ing thorium mine. 

14      11.13
mining news

Dundee on course at Tsumeb                                                  plant currently under construction, including owner’s costs, is estimat-
                                                                            ed at US$240 million, up from the initial estimate of US$204 million.
TSX-listed Dundee Precious Metals Inc (DPM) has provided an update            This increase is primarily attributable to higher than expected costs
on the installation of the sulphuric acid plant at its Tsumeb smelter in    associated with site preparation including demolition, earthworks ex-
Namibia.                                                                    cavation, foundation preparation, larger construction camp infrastruc-
   As part of its long term strategy to bring the Tsumeb smelter to         ture and related operating costs, unanticipated expenses relating to
internationally accepted environmental standards and consistent with        the removal of asbestos encountered during demolition, and a stron-
directives issued by the Namibian Government, DPM entered into a            ger Euro. None of these issues have put the project schedule at risk
lump sum turnkey (LSTK) contract with Outotec for the engineering,          and it remains on track for commercial operations and acid deliveries
supply, construction and commissioning of a facility to treat smelter       to commence in the fourth quarter of 2014. 
off-gas and produce sulphuric acid.
   The project is progressing well with engineering 60 % complete, all
long lead items purchased and the earthworks component of construc-
tion complete. At this stage, the total capital cost to complete the acid   No structural damage from
                                                                            fire at mineral sands mine
                                                                            Ireland’s Kenmare Resources reports that an initial assessment of the
                                                                            fire that occurred in October in the trommels section of Wet Concen-
                                                                            trator Plant A (WCP A) at its Moma mine in Mozambique confirms that
                                                                            there is no structural damage to either of the two trommels.
                                                                               Repair works are now underway and replacement parts have been
                                                                            ordered. The longest lead time items (mainly polyurethane trommel lin-
                                                                            ers and accessories) are due for delivery during the course of Novem-
                                                                            ber as they become available from the manufacturer. On the basis of the
                                                                            initial damage assessment and recovery plan and subject to scheduled
                                                                            delivery of the replacement parts, Kenmare anticipates that WCP A will
                                                                            recommence operations “towards the latter part of November”.
                                                                               Therefore, it is expected that there will be only limited effect on pro-
                                                                            duction at the Mineral Separation Plant, which is continuing to operate
                                                                            as normal using Heavy Mineral Concentrate (HMC) feed from the HMC
                                                                            stockpile and feed from Wet Concentrator Plant B.
                                                                               Initial findings of the investigation indicate that the fire on WCP A
                                                                            occurred minutes after the completion of routine welding repairs to
Visualisation of the sulphuric acid plant at Tsumeb. The ground-breaking    the velocity breaker chute feeding one of the two trommels. No inju-
ceremony for the project took place on 5 September this year.               ries were suffered as a result of the incident. 

                                                                                                                                                  11.13 15
mining news

     DiamondCorp provides update on Lace                                                                             mining activities which took place between
                                                                                                                     1902 and 1931. The refurbished plant will
     AIM-listed DiamondCorp has provided an up-                quired for drilling the undercut levels of the        now allow seamless transition from tailings
     date on the underground development and                   block cave. This drilling rig is scheduled for        re-treatment to processing of kimberlite from
     tailings re-treatment activities at its Lace dia-         delivery in the second half of 2014 and the           underground development.
     mond mine near Kroonstad in the Free State.               rand-euro exchange rate has been fixed.                  During the commissioning process, man-
        Underground tunnel development is cur-                    The new life of mine (LOM) boxcut was              agement undertook a series of trials to op-
     rently (end of October) 11 % complete versus              completed in September and development of             timise the bottom size screen panels on the
     a scheduled 12 %, and is being achieved at                the twin declines from the base of the ramp           plant with the aim of maximising throughput
     95 % of the budgeted cost per metre. Until                has commenced. Steel sets for reinforcement           and operating margins on the tailings.
     now, underground development has been                     of the portal area are now being installed.              Particle size analysis of the dump material
     limited to two crews operating three shifts                  The design and detail drawings for the             overlaid with diamond recoveries and sales
     while blasting of the temporary vent raise                underground conveyor belt system are on               figures from 2008-2009 tailings re-treatment
     which bypasses the blockage in the vertical               schedule (65 % complete) and within budget.           showed that approximately 50 % of the dump
     shaft was completed. With the completion                  Fabrication of the first leg of the conveyor belt     material is smaller than 1,5 mm and that
     of this vent raise and installation of surface            to be installed is 95 % complete and installa-        the lower value diamonds recovered in the
     exhaust fans, multi blast conditions now ex-              tion is about to commence. Procurement and            1,2‑1,4 mm range accounted for less than
     ist underground and the rate of development               exchange rate protection on all long lead time        10 % of total diamonds recovered by weight
     can increase to more than double the current              and imported items is 100 % complete.                 and less than 3 % of revenue.
     rate of 200 m per month.                                     Drilling of the Bulge area continues from             As a result of this analysis, modifications
        DiamondCorp says the underground min-                  inside the kimberlite, with 2 000 m of core           were made to increase the bottom screen cut
     ing fleet continues to provide over 90 % avail-           drilling planned to be drilled by the end of the      size in the plant – which is now recovering
     ability, with operating costs running at 87 %             year. The drilling rig is a new LM-30 drill rig       90 % of the diamonds previously recovered
     of budget. The mining fleet rebuild costs are             purchased from Boart Longyear. Completion             from less than 50 % of the front end tonnage.
     running at 95 % of budget, with the last of               of the first holes has confirmed that the Bulge       In September the plant recovered 1 264 car-
     the dump trucks and underground loaders                   area has the potential to host significant ad-        ats from 22 740 tonnes run of mine (ROM) but
     (LHDs) required to achieve maximum under-                 ditional kimberlite between the 260 m and             only 9 288 tonnes were delivered to the DMS.
     ground development rates currently being                  470 m levels which is not currently in the mine       This recovery represents a recovered grade
     assembled in the workshop and scheduled to                plan. The drilling will form the basis of a re-       of 5,6 cpht ROM, which is 12 % higher than
     be commissioned by year end.                              source upgrade for the Bulge area during the          the original estimate. However, with between
        With the completion of these two 20-t                  first half of 2014 and thereafter a feasibility       50-60 % of the material being screened out
     dump trucks and two LHDs, the full devel-                 study on the economics of mining this area.           ahead of the DMS, DiamondCorp believes
     opment and production fleet of five trucks,                  On surface, the 1,2 Mt/a dense media sep-          operating costs can be reduced from R32 per
     five LHDs and four face drilling rigs will be in          aration (DMS) plant at Lace was successfully          tonne to R22 per tonne, once three shifts are
     place. In addition, an order has been placed              re-commissioned during August with mate-              operating.
     with Sandvik for a new longhole drilling rig re-          rial from the 3 Mt of tailings remaining from            The plant is on schedule to process at full
                                                                                                                     capacity from one shift in November (34 000

      Digby Glover appointed CEO of WorleyParsons RSA
                                                                                                                     tonnes of tailings per month), with a second
                                                                                                                     shift scheduled to start in December and a
                                                                                                                     third shift by January. Plans are in place to
      Following the acquisition earlier this year of proj-                                                           increase tailings throughput to more than
      ect house TWP by Australian-based WorleyPar-                                                                   150 000 tonnes per month in the first half of
      sons, the global project delivery company has                                                                  2014 by introducing in-pit screening. If re-
      announced that Digby Glover, previously Chief                                                                  coveries are in the order of 5 cpht, the in-pit
      Executive Officer of TWP Holdings, has been ap-                                                                screening has the potential to increase pro-
      pointed as Chief Executive Officer of WorleyPar-                                                               duction to 7 500 carats per month which will
      sons RSA. Glover has been employed by the TWP                                                                  allow a significant proportion of the tailings
      group since 2001, and has held the role of Chief                                                               to be re-treated prior to the underground
      Operating Officer for WorleyParsons RSA for the                                                                achieving full production. 
      past eight months.
         “Digby has been responsible for the transition
      of the TWP operations into WorleyParsons and the
      operations of the business generally, as well as for
                                                                                                                     Chrysalis starts
      establishing Johannesburg as a mining execution
      centre for WorleyParsons globally. He is therefore
                                                                                                                     drill programme
      well placed to lead the combined South African                                                                 ASX-listed Chrysalis Resources has begun a
      business post integration,” says Francis McNiff,                                                               31-hole, 2 900 m RC drilling programme on
      WorleyParsons’ Managing Director Operations –                                                                  its Shikila project within the Domes Region of
      Sub-Saharan Africa.                                                                                            the Lufilian Belt in north-western Zambia. The
         To support Glover in his new role and the inte-                                                             drilling is being conducted by Capital Drilling
                                                               Digby Glover, CEO of WorleyParsons RSA.
      gration of the Johannesburg and Pretoria opera-                                                                Limited. Over half of the drill holes in the pro-
      tions into a consolidated delivery centre, a number      Manager for Johannesburg, responsible for the         gramme are located within 15 km of the Kan-
      of additional changes have come into effect as of        day-to-day operational management of the Johan-       sanshi copper mine.
      28 October. Martin Simmonite, who has been with          nesburg business. He brings many years of expe-          The programme aims to identify the poten-
      WorleyParsons for many years, with his most re-          rience, having been responsible for all regional      tial for economic copper mineralisation within
      cent position being Operations Manager for Preto-        offices within TWP before the acquisition. Johan      a linear, 24 km long, semi-continuous copper-
      ria, will take on the role of Chief Operating Officer,   Swart, also with WorleyParsons RSA for the last       in-soil anomaly by targeting high grade su-
      responsible for all the operations within the loca-      two years, will take on the role of Operations Man-   pergene copper mineralisation between 20 m
      tion. Henry Jonker has been appointed Operations         ager for Pretoria.                                    and 40 m beneath seven individual >120 ppm
                                                                                                                     copper in soil anomalies. 

16      11.13
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