Engineering & Mining Journal

SEP 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

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NEWS-LEADING DEVELOPMENTS SEPTEMBER 2018 • E&MJ 5 in participating in the development of Timok," Kukielski added. Nevsun's Board of Directors unani- mously recommended that shareholders reject the bid. They said the offer failed to recognize the value of Nevsun's port- folio, provides an "inadequate premium" for control, is lower in value than previous transactions proposed by Lundin, and is lower in value than other alternatives. First Quantum Reports Record Quarterly Copper Sales In its second-quarter earnings statement, First Quantum reported quarterly copper sales of 152,403 metric tons (mt) and a production figure of 150,950 mt of copper. The company reported a 28% increase year- over-year at the Sentinel mine. The company also achieved commissioning milestones at the Cobre Panama project. It synchronized one of the power stations and started sup- plying power into the national grid, started receiving and unloading full coal shipments at the port, and began first commissioning activities at the process plant — all without incurring a lost-time injury. In July, the company's Zambian opera- tions were advised by the state-run power company of its plans to reduce power supply to the Kansanshi complex and Sentinel for about a 31-day period, beginning late July, to facilitate maintenance and upgrades to the electricity network. First Quantum said it had plans in place at both sites to opti- mally manage operations during this period. "Our operations performed well and in line with plan while several important mile- stones were achieved at Cobre Panama," said Philip Pascall, chairman and CEO, First Quantum. "The start of power sup- ply into the national grid from the first of two generating sets at the power station is significant as it will eventually provide the requirements for that entire operation." The company also elected, with North- ern Dynasty Minerals, to terminate the framework agreement announced during December, in accordance with its terms after being unable to reach agreement on the contemplated option and partnership transaction on the Pebble project. Glencore Brings More Base Metals to Market According to its recently released produc- tion report for the first half of 2018, Glen- core's copper production grew to 696,200 metric tons (mt), which was 53,300 mt (8%) higher than H1 2017. The real sto- ry, however, is the company's cobalt pro- duction of 16,700 mt, which was 4,000 mt (31%) higher. The numbers reflect the restart/ramp-up of Katanga. Glencore also reported zinc production of 498,200 mt, which was in line with H1 2017. Mining operations have restarted at the company's Lady Loretta (Mount Isa), supporting an increased full year produc- tion run-rate. Nickel production totaled 62,200 mt, which was 11,000 mt (21%) higher than H1 2017, reflecting Koniam- bo's second processing line entering pro- duction and the scheduled statutory shut- down at Murrin in the base period. Cobalt, nickel and zinc prices have recently. Jaguar Mining Gives Update on Operating Progress Jaguar Mining's Pilar gold mine continues to see solid results and remains on track to achieve the higher end of production guidance in line with management expec- tations, the company said. Grades have more than doubled in the past two years, as the current working levels approach the higher-grade areas of orebodies BF and BFII. Mine development and stope prepara- tion inventories provide flexibility in main- taining consistent production rates and a new grade control program implemented at Pilar helped reduce dilution and im- proved reconciliations with reserve model. Rio Tinto celebrated the opening of a fourth diamond pipe, known as A21, at the re- mote subarctic Diavik diamond mine in the Northwest Territories of Canada. The Hon. Wally Schumann, minister of industry, tour- ism and investment with the government of the Northwest Territories, was the guest of honor at the celebration attended by In- digenous community representatives, joint venture partners and Rio Tinto employees. The A21 pipe is located adjacent to Diavik's existing mining operations at Lac de Gras. First ore was delivered in March and the pit is expected to be at full production during the fourth quarter of 2018, following a four-year construction period and an investment of approximate- ly $US350 million, shared by Rio Tinto (60%) and joint venture partner Domin- ion Diamond Corp. (40%). "This investment to sustain production levels at Diavik reflects the strong outlook we see for the diamond industry," Rio Tinto Copper & Diamonds Chief Executive Arnaud Soirat said. "It is a remarkable achievement to deliver this project safely and ahead of time in such a challenging environment, positioning Diavik to continue meeting the demand for its outstanding diamonds." The Diavik diamond mine, located 300 kilometers (km) northeast of Yellow- knife, capital of Canada's Northwest Ter- ritories, began production in 2003 as an open-pit mine and was converted fully to underground mining in 2012. "Our people can take great pride in their achievement to safely bring the A21 pipe from development to commercial production," said Diavik Diamond Mines President Patrick Boitumelo. "This new pipe is great news for the Northwest Ter- ritories and will help to deliver economic and social benefits that will endure be- yond the life of the Diavik mine." Rio Tinto Opens New Diamond Pipe at Diavik Cutting the ribbon: The Hon. Wally Schumann, minister of industry, tourism and investment, government of the Northwest Territories (left), and President of Diavik Diamond Mine Patrick Boitumelo (right).

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