Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
Issue link: https://emj.epubxp.com/i/239773
REGIONAL NEWS - ASIA Upgrade Expands Galaxy's Lithium Plant Capabilities Besra Targeting Gold Mine Development in East Malaysia Galaxy Resources' lithium carbonate plant formerly processed only spodumene feedstock sourced from a producer in Western Australia. A recent modification allows the facility to now accept a wider range of feedstock. Galaxy Resources reported that its lithium carbonate plant in China's Jiangsu province has successfully undergone a planned maintenance shutdown period, during which the "front end" of the plant was modified to enable lithium carbonate production from higher grade spodumene feedstock supply from alternative sources. The plant formerly operated on spodumene feedstock solely sourced from Mount Cattlin in Western Australia and has now transitioned to allow a wider range of feedstock. The modifications, according to the company, were completed smoothly and the plant will now be operating on higher grade feedstock, which is expected to enhance throughput capacity. The ongoing production ramp-up is part of Galaxy's strategy to focus on delivering high-purity lithium products and a key component of the strategy to reach break-even levels of production at the Jiangsu plant, near Shanghai, by the end of the year. Galaxy Resources is an Australian-based and ASX-listed global lithium company with lithium production facilities, hard rock mines and brine assets in Australia, China, Canada and Argentina. The Jiangsu plant has a name-plate annual capacity of 17,000 metric tons and is primarily focused on producing battery-grade lithium carbonate. The company said it is aiming to become the largest producer in the Asia Pacific region and the fourth largest in the world. Besra has released preliminary results from a feasibility study for Stage 1 of its Bau gold project in Sarawak, East Malaysia, on the island of Borneo. Besra is a Canadian company, headquartered in Toronto, and has producing gold mines in Vietnam. The Bau feasibility study specifically covers a proposed open-pit development at Jugan Hill toward the northeastern end of the Bau Central gold trend. The study calls for an 8,000-mt/d ore processing rate to produce a total of about 460,000 oz of gold in concentrate over an initial mine life of about four years. Initial capital expenditure to develop the project is estimated at $92 million. A crush, grind, and flotation process would produce a gold-rich concentrate to be shipped for smelting and refining. Besra CEO John Seton said, "The initial four-year mine life will be extended as nearby deposits are developed, utilizing existing plant and infrastructure, and having the effect of further improving the project economics. A Stage 2 pre-feasibility study has already commenced, incorporating southwesterly extensions of the Jugan Hill deposit and adjacent deposits. Stage 2 is expected to extend the mine life to 12 years, increase total production to more than 1 million oz, and should at least replicate or exceed the financial returns of Stage 1." Indonesia's Ban on Mineral Exports Creates Uncertainty for Miners An Indonesian law, passed in 2009, banning mining companies in Indonesia from exporting ore and concentrates was scheduled to take effect January 12, 2014. The law was designed to encourage development of downstream smelting and refining facilities within Indonesia. However, as of now, the nation does not have enough such facilities to process all of its domestically produced ores and concentrates, and if the law is strictly enforced, many miners, large and small, will be forced to cut back production or shut down. Negative economic impacts will be felt across Indonesia by federal, provincial, and local governments, in the form of lost tax revenues, and by local and regional economies, in the form of lost jobs and economic recession. The Indonesian Mineral Entrepreneurs Association (Apemindo) predicted in early December that all-out enforcement of the ban would result in the loss of $9.8 billion in export earnings, 3.5 million jobs, and 5 million children forced to stop school. "Workers in mining companies, contractors, suppliers, logistics, as well as 18 E&MJ; • JANUARY 2014 those with small businesses around the mining area, all stand to lose their livelihood," Poltak Sitanggang, Apemindo's chairman told the Jakarta Globe on December 9. Poltak said economic activity in towns near the mines will cease as power supplies get cut and workers have no more income. Large international mining companies that would be impacted by the ban include Freeport-McMoran Copper & Gold and Newmont Mining. As of late December, when this news report was being written, there appeared to be no certainty that the government would, in fact, enforce an all-out export ban. Implementing regulations had not been issued for administration of the ban, and reports in Jakarta newspapers indicated the government was seeking a solution that would allow at least some exports to continue. Weeks, and perhaps months, may be required before a clear picture emerges as to how Indonesia will actually deal with exports of ore and concentrates in years to come. www.e-mj.com