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 33 of 91

NORDIC MINING 2018 32 E&MJ • OCTOBER 2018 "Tapojärvi has extensive experience in the mining industry and that gives a solid base to our cooperation," said Timo Lind- borg, CEO of Sotkamo Silver AB. Sotkamo Silver also recently entered into the off-take agreement for silver and zinc concentrates from Silver Mine to Bo- liden's Kokkola smelter in Finland and Rönnskär smelter in Sweden. The estimated value of deliveries during the four-year agreement is about EUR 120 million ($139 million) at cur- rent metal prices. The concentrate ship- ments are expected to start in early 2019. "These smelters are the closest to the Silver Mine project," Lindborg said. "The concluded agreements combined with the deliveries will bring logistical and eco- nomic benefits to both parties." Equipment is currently being installed in the processing plant. The construction of the water treatment plant, ore mining and recruitment of employees will also be- gin soon. Sotkamo Silver is also working with VAPO to develop a bioenergy-based solution for ventilation air heating as part of energy efficient and responsible under- ground mining. Finnish Regulators Approve Laiva Startup Nordic Gold, formerly known as Firesteel Resources, announced that it has received written confirmation from Finnish supervi- sory authority ELY, that it has provided all documentation required and that it can recommence mining and processing oper- ations at its Laiva gold mine near Raahe, Finland. The company reported that this was the result of ongoing communications with, and environmental reporting for, the Finnish regulators in the region. Mining activities started at Laiva in mid-August, to establish access and clear working areas. The company has been conducting three blasts a week and has stockpiled 62,000 mt of ore preparing for plant startup. Roughly 15,000 mt of ore been run through the primary crusher as part of the recommissioning process. With the ELY approval, the mill and plant can now begin operating. "This is a significant advance for the company," Michael Hepworth, president and CEO, Nordic Gold said. "We are now able to operate the plant and prepare for processing. The plant is being restarted in stages with the grinding circuit now in its final stages of testing. The CIL circuits are ready to operate and will be filled as ore passes through the comminution circuit. We plan to pour our first gold on November 27." Located on the west coast of Finland, the Laiva mine was previously in produc- tion from June 2012 to March 2014 and produced 77,000 ounces (oz) of gold from 2.8 million tons of ore processed at an average recovery rate of 79% to 85%. The company said it should be able to implement even greater rates of recov- ery and plant utilization given its recent improvements to the processing circuit, which includes better crushing, leaching, grinding and cyanide recovery processes than in the past. The previous owner (Nor- dic Mines) was blasting ore and waste at the same time, and using large-scale, bulk open-pit methods, which led to significant dilution. Nordic Gold has a plan to blast ore on a more selective basis. A Procurement Perspective On the morning of the last day of Euro Mine Expo, a session focused on how to become a supplier to the mining industry. Representatives from LKAB, Boliden and Mandalay Resources emphasized the importance of safety and the hope for more in- novation by working with their suppliers. Frida Pettersson, purchasing manager at Mandalay Resourc- es, opened the session by talking about what demands they have on their suppliers. "We depend on good suppliers and are not looking only for the best price," Pettersson said. "To be a suppli- er you need financial stability, security of supply and we are also looking for quality and overall performance. But you also must meet our demands, have a high level of service and flexibility." She also pointed out that security is also very important. Björn Stenecker, chief procurement officer for Boliden Mines, agreed on the topic of safety. "For us, safety is No. 1," Stenecker said. "We will not tolerate suppliers with bad luck. We will never deviate from that policy." When it comes to innovation, Pettersson wants to see sup- pliers that want to improve their business. "Help us rethink and show us your innovation projects," she said. Stenecker said this is the most important topic today. "How can innovation among the supply base be increased and how can we do this better together?," he asked. "Without innovation, we would not have a mining business in Sweden at all. There is so many different innovations which is why our business flourishes." He also pointed out that the mining industry represents an extremely stable customer base."We want suppliers to stay with us in good times and in bad," Stenecker said. "Please do not leave us in good times, we will remember it when bad times comes around." Using a more selective blasting program, Nordic Gold restarted the Laiva mine in Finland.

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