Engineering & Mining Journal

OCT 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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Page 18 of 91

REGIONAL NEWS - ASIA OCTOBER 2018 • E&MJ 17 Development of the China pit would in- clude all major infrastructure required for later mining development while consum- ing only 26% of the Bawdwin property's current indicated and inferred mineral re- sources. Pits on the Shan and Meingtha lodes and an underground mine targeting the Shan, Meingtha and China lodes are anticipated to follow the China pit but were not considered in the scoping study. Myanmar Metals Executive Chairman and CEO John Lamb stated, "The China pit is the opening move in bringing the Bawdwin polymetallic province back into production. We believe the China pit will be the first of at least three pits on the Bawdwin concession, followed by a long- life underground mining operation. Eco- nomic estimates from the China pit scop- ing study are underpinned by 21 million mt of mineable material, representing only 26% of total project resources. "The role of a starter pit is to provide an early cashflow to fund life-of-mine infra- structure and the development of a pipeline of future mines. As a result, the economics of the China pit bear a majority of the cap- ital expenditure required for the full devel- opment of the Bawdwin province, including processing facilities, a tailings facility, the restoration of power infrastructure, road up- grades, and other civil infrastructure. "In the 1930s, Bawdwin was among the largest and richest lead and silver mines in the world. We are confident the Bawdwin joint venture's re-development program will restore Bawdwin to its position as a leading base and precious metals mine." Nordgold Starts Production at Gross Mine in Yakutia Nordgold has started gold production at its Gross heap leach mine in southwest Yakutia in eastern Russia. The mine is scheduled to produce 200,000 ounces per year (oz/y) of gold over a period of 17 years and lift Nordgold into the group of gold mining companies worldwide that produce more than 1 million oz/y. The Gross mine's ore reserves are es- timated at 189.8 million mt at a grade of 0.72 grams/mt gold for 4.4 million oz of contained gold. Measured, indicated, and inferred resources are estimated at 464.6 million mt at an average grade of 0.67 g/ mt for 9.7 million oz of contained gold. The Gross mine is located 4 km from Nordgold's established Taborny open-pit heap leach operation. Its proximity to Taborny enables Nordgold and the Gross mine to benefit from economies of scale, an expert knowledge of the local geolo- gy, and shared expertise from the mine's management team. Construction of the Gross mine began in June 2016. The project was fully per- mitted in 2015 and de-risked by a suc- cessful two-year mining and processing trial, which delivered gold recovery of more than 80%, with low production costs. Capital costs to develop the project came in at about $250 million. The Gross mine was formally launched on September 12 at the Eastern Economic Forum in Vladivostok, Russia. The ceremo- ny was attended by Nordgold CEO Nikolai Zelenski, Minister of Natural Resources and Environment of the Russian Federation Dmitry Kobylkin, Acting Chairman of the government of Yakutia Vladimir Solodov, and Deputy Minister of Natural Resources — Head of the Federal Subsoil Resources Management Agency Evgeny Kiselev. "Gross is a significant new asset for Nordgold and turns us into a 1-million-oz producer for the first time in our history. I believe we have firmly cemented Nord- gold as a truly world-leading developer of new gold mine assets," Zelenski said. "This gives us even greater confidence as we look to develop our Montagne d'Or asset in French Guiana." Nordgold's producing mines include the Taborny, Berezitovy, and Buryatzoloto mines in Russia; the Suzdal mine in Ka- zakhstan; the Taparko, Bisam, and Bouly mines in Burkina Faso; and the Lefa mine in Guinea. ArcelorMittal Revises Proposal for Essar Steel In response to media speculation, Arce- lorMittal confirmed that on September 10 it submitted a revised proposal to Essar Steel India Ltd.'s (ESIL) Committee of Creditors for the acquisition of ESIL. The revised offer, which also includes a com- mitment to pay the entire amount due to the financial creditors of Uttam Galva and KSS Petron, represents unprecedented value to all concerned creditors, the com- pany said. The company said it believes ESIL pro- vides it with a compelling opportunity to enter the high-growth Indian steel market and, should it prove successful with the proposed acquisition, ESIL will add signifi- cant strategic value to the group's business. AUTOMATE

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