Engineering & Mining Journal

OCT 2017

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REGIONAL NEWS - ASIA 24 E&MJ; • OCTOBER 2017 www.e-mj.com Polyus Starts Commissioning Natalka Mine in Russia's Far East PISC Polyus, Russia's largest gold pro- ducer, has launched the start of hot commissioning of its Natalka mine in the Magadan region of Russia's Far East. Russian President Vladimir Putin partic- ipated in a launching ceremony in early September via video-link from the Eastern Economic Forum then in progress in Vlad- ivostok. Following completion of ramp-up in late 2018, Natalka is scheduled to pro- duce in the range of 420,000 ounces per year (oz/y) to 470,000 oz/y of gold over a mine life of more than 30 years. Natalka currently has 16 million oz of gold in JORC-compliant reserves and 34 million oz in resources. Mining is done by conventional open-pit shovel-and-truck op- erations. Mining activity was relaunched in January. The Natalka deposit was previously mined from 2013 through 2014. At design capacity, the Natalka pro- cessing plant will process 10 million mt/y of ore, making it the largest plant of its type in Russia. Major processing equipment includes the primary crusher, crushed ore conveyor, primary SAG mill, main ball mill, gravity concentrators and electrowinning cells. Polyus has finalized delivery of all processing equipment. Ma- jor equipment vendors are on site to as- sist with the commissioning. Construction of power facilities and auxiliary infrastructure is ongoing. "We are delighted to announce the long-anticipated launch of Natalka, Polyus' main greenfield project and the largest gold mine in the Russian Far East," said Polyus CEO Pavel Grachev. "Natalka will provide up to 470,000 oz of additional production annually and support our targeted increase in overall gold production to approximately 2.8 million oz/y by 2019. The project will also foster economic growth in the region through the creation of 2,000 jobs at the mine and the processing plant." Freeport, Indonesia Agree on Plan for Long-term Operating Rights Freeport-McMoRan (FCX) and the gov- ernment of Indonesia have reached an understanding on a framework to support PT Freeport Indonesia's (PT-FI) long-term investment plans in Papua. PT-FI will convert its Contract of Work to a special license (IUPK), which will provide the company with long-term operating rights through 2041. PT-FI will commit to con- struct a new smelter in Indonesia within five years. In return, the government of In- donesia will provide certainty of fiscal and legal terms during the term of the IUPK. "Reaching this understanding on the structure of a mutual agreement is signif- icant and positive for all stakeholders," said Richard C. Adkerson, president and CEO. "Important work remains on docu- menting this agreement and we are com- mitted to completing the documentation as soon as possible during 2017." Freeport will also agree to divest its ownership in PT-FI at fair market value so that Indonesia interests own 51% of PT-FI's shares. The timing and process of the divestment is being discussed with the government, but it will be structured so that FCX will retain control over op- erations and governance of PT-FI. This framework still requires definitive docu- mentation and approval from the Freeport Board of Directors and partners. Construction begins on the Natalka processing plant, which will have a capacity of 10 million mt/y.

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