Engineering & Mining Journal

AUG 2018

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:

Contents of this Issue


Page 30 of 107

NEWS - CONTINUED AUGUST 2018 • E&MJ 29 SEPTEMBER 10-14, 2018: Electra Mining Africa, Expo Centre Nasrec, Johannesburg, South Africa. Contact: Web: OCTOBER 18-20, 2018: China Mining 2018, Tianjin Meijiang Con- vention Center, Tianjin, Peoples Republic of China. Contact: Web: DECEMBER 3-7, 2018: American Exploration & Mining Association annual meeting, Spokane, Washington, USA. Contact: Web: DECEMBER 4-5, 2018: 1 st International Conference on High Perform- ance Mining, RWTH Aachen University, Aachen, Germany. Contact: Web: JANUARY 27-30, 2019: 45 th Annual Conference on Explosives and Blast- ing Techniques, Nashville, Tennessee, USA. Contact: Web: FEBRUARY 24-27, 2019: SME Annual Conference & Expo, Denver, Colorado, USA. Contact: Web: MARCH 3-6, 2019: Prospectors & Developers Association of Cana- da's annual conference, Metro Convention Center, Toronto, Canada. Contact: Web: MARCH 10-13, 2019: Haulage & Loading, Hilton El Conquistador Resort, Tucson, Arizona, USA. Contact: Web: APRIL 2-4, 2019: MiningWorld Russia, Crocus Expo, Moscow, Russia. Contact: Web: APRIL 8-14, 2019: bauma, Messe Muenchen, Munich, Germany. Contact: Web: MAY 7-9, 2019: Arminera, Centro Costa Salguero, Buenos Aires, Argentina. Contact: Web: MAY 10-13, 2019: Longwall USA, Pittsburgh, Pennsylvania, USA. Contact: Web: MAY 27-30, 2019: Exponor Chile 2018, Antofagasta, Chile. Contact: Web: NEWS - CALENDAR OF EVENTS tion) permit required for the development - ernorship in Turkey. "With the Environmen- tal Impact Study and forestry permits hav- ing been previously approved, we have all the required permits to ramp up full-scale construction activities," said John A. Mc- Cluskey, president and CEO, Alamos Gold. As outlined in the 2017 feasibility study, Kirazlı has a 44% after-tax internal rate of return and is expected to produce more than 100,000 ounces (oz) of gold during its first full year of production at the mine-site all-in sustaining costs of less than $400/oz. This is expected to bring consolidated production to more than 600,000 oz/y, while significantly lowering the company's cost profile. Alamos will be mobilizing for full-scale construction activities over the next two months. The initial capital estimate for Kirazlı is $152 million of which $50 mil- lion to $60 million is expected to be spent in 2018. Based on the current timelines, Alamos expects initial production from Kirazlı in the second half of 2020. Turquoise Hill Commissions Shaft 5 at Oyu Tolgoi Oyu Tolgoi has achieved an important un- derground development milestone with the commissioning of Shaft 5, which is 1,178 meters (m) deep and 6.7 m in diameter. Turquoise Hill Resources now expects a step-up in underground activi- ties with the increased ventilation capac- ity from Shaft 5. The company is looking forward to the first draw bell in mid-2020 and sustainable first production in 2021. Meanwhile, production at Oyu Tolgoi continues according to plan. "During the second quarter, Oyu Tolgoi continued processing Phase 4A ore resulting in im- proved gold grades, production and recov- ery," said Luke Colton, interim CEO for Turquoise Hill. "This trend is expected for the remainder of the year. Mill throughput during the quarter benefited from high-in- tensity blasting, which was introduced in 2017. Oyu Tolgoi continues to make good underground development progress, as evidenced by the completion of Shaft 5." The positive impact of the high-intensi- ty blasting program is expected to increase mill throughput for 2018 to approximately 40 million metric tons (mt). Mill throughput during the second quarter increased 6.3% over the first quarter, which was attribut- ed to the high-intensity blasting program. Copper production in the second quarter increased 1.5% over the first quarter, but was offset slightly by lower grades from the depletion of Phase 6 ore. Gold production increased 19% over the first quarter due to stronger mill utilization rates, higher grades from Phase 4A and increased recovery. Sales in the second quarter benefited from improved logistics as inventory accumulat- ed during the first quarter force majeure worked its way through the system. Oyu Tolgoi is expected to produce 125,000 mt to 155,000 mt of copper and 240,000 ounces (oz) to 280,000 oz of gold in concentrates for 2018. Chinese Zinc Industry Continues to Evolve China's zinc mining industry is evolving, with the tightening of environmental and safety standards since 2015 having a huge impact on production, according to consultants with Wood Mackenzie. Tougher inspections and low metal prices have restricted output and caused many mines to close. The decline in average ore grades at many of China's larger zinc mines could also hinder output growth. An ore grade decline of 17% between 2013 and 2016 is notable in medium to large-scale mines with a long history of operation, highlight- ing that existing high-grade deposits are being depleted. Although environmental protection measures have stalled the development of some mine projects since 2015, an emerg- ing trend is for new larger-scale operations with capacity of more than 50,000 metric tons per year (mt/y) zinc. Recently commis- sioned mines and zinc projects are larger than most operating zinc mines, helping to increase the average mine size. As such, consolidation, which has slowly been gath- ering pace in recent years, is a potential driver for growth in mined zinc output. New mine capacity is expected to in- crease Chinese zinc mine production by 198,000 mt in 2018 and 226,000 mt in 2019, a growth rate of 4.1% and 4.5% year-on-year, respectively. (Regional News-Asia - from p. 24)

Articles in this issue

Links on this page

Archives of this issue

view archives of Engineering & Mining Journal - AUG 2018