Engineering & Mining Journal

APR 2016

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REGIONAL NEWS - AUSTRALIA/OCEANIA 12 E&MJ; • APRIL 2016 www.e-mj.com BHP Billiton Submits Strategic Document for Pilbara Asset Development In mid-March, BHP Billiton Western Aus- tralia Iron Ore (WAIO) submitted a Stra- tegic Environmental Assessment (SEA) of its central Pilbara iron ore assets to "contribute to the long-term environ- mental planning and management of its operations." The SEA, according to the company, is the frst of its kind in the Australian mining industry and gives an overview of the regional environmental footprint of all of the company's current and potential future Pilbara-based iron ore operations. BHP Billiton Western Australia Iron Ore Asset President Edgar Basto said the company had been operating in the Pilba- ra for almost 50 years and understood the environmental impacts of its operations in the region. "The SEA provides greater visibility of our potential environmental footprint over the next 50 to 100 years, improv- ing our ability, as well as the govern- ment and others in the industry, to plan for future operations. "It outlines where we may develop in the future so any potential impacts on the environment can be assessed and ade- quately managed for future generations." Basto said the company would still be required to work with relevant depart- ments to ensure necessary approvals were sought for individual projects, but the SEA takes a look at the company's envi- ronmental plan over the long term in a more considered and complete way. "Previously, we worked through the approval process for individual projects in isolation. We can now look at how fu- ture developments may interact and think about what we need to do to manage any impacts in advance," he said. "It gives the company, industry, the community and regulators a more com- prehensive understanding of the region, which ultimately helps everyone to more effectively manage our natural resources. "It's about being transparent in our fu- ture plans and recognizing that environ- mental impacts are not confned to one particular mining project and should be looked at more holistically." BHP said the SEA was made public and open for comment in March. "We expect to continue to mine in the region for more than 100 years, which enables us to give back to the communities that have supported us for so long. The SEA demonstrates our ongoing commitment to the Pilbara and our host communities over the long term," Basto said. The SEA will be submitted to both the commonwealth and Western Australia governments for their endorsement. Decisions on production volumes and the development or execution of further greenfeld or expansion projects remain independent commercial decisions that are separate from the SEA. Blackham Targeting Third Quarter Startup at Matilda Blackham Resources has begun refur- bishing the Wiluna gold plant on its Matilda gold project in central Western Australia and is targeting a production startup in the third quarter of 2016. The plant has been on care and maintenance since mid-2013. Blackham acquired it in March 2014. Blackham's plan is to optimize existing plant components and upgrade the free-milling oxide carbon-in- pulp circuit to process current resources. The Matilda gold project incorporates more than 780 km 2 of tenements, includ- ing previously operated mines and nu- merous exploration prospects. All of the deposits are within 26 km of the Wiluna gold plant by existing haul roads. A defnitive feasibility study completed in February is based on a mining invento- ry of 8.3 million metric tons (mt) grading 2.9 g/mt of gold and containing 767,000 oz of gold. The inventory includes 6.1 million mt of reserves grading 2.5 g/mt and containing 481,000 oz. Initial mine life is planned at more than seven years, with production averaging 101,000 oz/y during the frst fve years. The project's total resources stand at 45 million mt grading 3.2 g/mt for 4.7 million oz of contained gold. Pre-production capital costs are esti- mated at A$32 million. Life-of-mine C1 cash costs are estimated at A$850/oz. Payback, based on $1,207/oz gold, is es- timated at 12 months. Mining at the Matilda project will be undertaken by mining contractors, with Blackham personnel providing manage- ment and technical services. The project will operate as a fy in/fy out operation from Perth, with local residents em- ployed where possible. Defnitive feasi- bility study mine designs were completed on the main mining centers at Matilda, Galaxy, Williamson and Wiluna. Open-pit mining is planned for Matil- da, Williamson, and Galaxy and will uti- lize conventional drill, blast, load, and haul mining methods. Ore will be hauled by road train to the Wiluna gold plant. Underground operations at Wiluna have been divided into three distinct ar- eas. Bulletin and Golden Age will be ac- cessed from the existing Bulletin portal and current Golden Age decline. The East West Underground will be accessed from existing underground infrastructure and portal access from the East pit. Ore from the underground mines will be predominately extracted via top-down mechanized longhole open stoping, with a smaller amount mined by a bottom-up modifed Avoca method using unconsoli- dated backfll. The majority of the under- ground ore is in the top 600 m and has a relatively short haul to surface. BHP says the assessment 'provides greater visibility of our potential environmental footprint over the next 50 to 100 years' of mining activity in the Pilbara.

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