Engineering & Mining Journal

MAR 2014

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/271090

Contents of this Issue

Navigation

Page 15 of 83

14 E&MJ; • MARCH 2014 www.e-mj.com REGIONAL NEWS - LATIN AMERICA First Quantum Targeting 320,000 mt/y Copper at Cobre Panama First Quantum Minerals has reported updat- ed project operating parameters, a new development time-frame, and a revised cap- ital cost estimate for its 80% owned Cobre Panama copper-gold-silver-molybdenum project in the Republic of Panama. The new project objectives are based on an intensive review initiated by the company when it acquired its interest in the project from Inmet Mining in March 2013. The remain- der of the project is held by Korea Panama Mining Corp., a consortium of LS-Nikko Copper Inc. and Korea Resources Corp. On the basis of the current resource esti- mate and planned initial installed through- put capacity of 70 million mt/y, Cobre Panama is now expected to produce an aver- age of about 320,000 mt/y of copper on a life-of-mine basis, approximately 20% high- er than in the Inmet plan. Average annual life-of-mine by-products production is esti- mated at 100,000 oz of gold, 1.8 million oz of silver, and 3,500 mt of molybdenum. The 70-million-mt/y throughput target is approximately 17% higher than in the Inmet plan and applies to the first 10 years of a project life that is estimated at 34 years. Project planning is based on estimated measured and indicated resources of 3,271 million mt, inclusive of reserves. Grades will average 0.5% total copper for the first 10 years and 0.37% for the remaining mine life. The average life-of- mine strip ratio is 0.7:1. The re-engineered and larger Cobre Panama project is now scheduled for con- struction completion, commissioning, and first concentrate production in the second half of 2017. Capital cost to develop the project is estimated at $6.4 billion, inclusive of $913 million incurred before First Quantum acquired of the project. Capital per installed metric ton of capacity is approximately $17,125. Since acquiring the Cobre Panama proj- ect, First Quantum has transformed devel- opment from an out-sourced approach to a complete "in-house, self-perform" opera- tion, with third-party engineers and con- tractors now utilized only for identified spe- cific tasks. Significant quantities of on-site equipment have been purchased by First Quantum from contractors whose contracts have been either canceled or modified. First Quantum now fully controls all site development activities. Site accommoda- tion, road access, and communications are now all fully functional. The locations of key site infrastructure, including the processing facilities, were reviewed, and an alternate, more practical plant site was selected that is expected to be more cost effective to construct and allow for better access to the proposed in- pit crushing and conveyor systems and the main access road. The Cobre Panama project is located 120 km west of Panama City and 20 km from the Caribbean Sea coast. The concession con- sists of four zones totaling 13,600 ha. The project elevation is less than 300 m, but the topography features considerable local relief and is covered by dense rainforest. Trevali Achieves Commercial Production at Santander Trevali Mining's Santander zinc-lead-silver operations in Peru achieved commercial production in February. According to a company announcement, the Santander mill was operating consistently and without significant interruption at production rates exceeding 70% of design capacity and was producing concentrates that met saleable concentrate specifications. Mill throughput was being ramped up to nameplate capac- ity of 2,000 mt/d. Trevali announced production guidance for Santander during 2014 at 42 million to 45 million lb of zinc, 15 million to 17 million lb of lead, and 700,000 to 720,000 oz of sil- ver in zinc and lead-silver concentrates. Mill throughput for 2014 is estimated at 670,000 to 690,000 mt, with average head grades estimated at 4.0% to 4.2% zinc, 1.5% to 1.7% lead, and 1.4 oz/mt to 1.6 oz/mt silver. The underground Santander mine is located about 200 km by road northwest of Lima. The project is being developed under an agreement between Trevali and Glen- core International, whereby Trevali retains 100% ownership, while Glencore has built and is operating the processing plant to produce zinc and lead-silver concentrates. Glencore is also responsible for supervision of the contract mining operations and has entered into a long-term concentrate off- take agreement for 100% of Santander's concentrate production. With Santander now in commercial pro- duction, Trevali has shifted its development focus to its New Brunswick operations in Canada, where it is preparing the Caribou mine and mill complex for startup. Aerial view of the early-operations area at First Quantum Minerals' Cobre Panama project. Cobre Panama is ex- pected to produce an average of about 320,000 mt/y of copper on a life-of-mine basis, approximately 20% high- er than previously predicted. (Photo courtesy of First Quantum Minerals) Flotation circuits at the Santander zinc-lead-silver pro- ject. (Photo courtesy of Trevali Mining) EMJ_pg04-27_EMJ_pg04-27 3/3/14 10:32 AM Page 14

Articles in this issue

Links on this page

Archives of this issue

view archives of Engineering & Mining Journal - MAR 2014