Engineering & Mining Journal

JAN 2019

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 4 E&MJ • JANUARY 2019 Gold Miners Kick Off New Year at NYSE Trading in the shares of the new compa- ny created by the merger of Barrick Gold and Randgold Resources started at the opening of business on the New York and Toronto Stock Exchanges on Wednesday, January 2. The ringing of the opening bell at the New York Stock Exchange was performed by the company's executive chairman, John Thornton, accompanied by President and CEO Mark Bristow. The new company is still known as Barrick, but its trading symbol on the NYSE will change to GOLD, the ticker for- merly held by Randgold on NASDAQ. On the TSX, the ticker remains ABX. The merger created a sector-leading gold company, which owns five of the industry's top 10 tier-one gold assets: Cortez and Goldstrike in Nevada, USA (100%); Kibali in DRC (45%); Lou- lo-Gounkoto in Mali (80%); and Pueblo Viejo in Dominican Republic (60%)), and two with the potential to become tier-one gold assets (Goldrush/Fourmile (100%) and Turquoise Ridge (75%), both in the USA). Barrick has the lowest total cash cost position among its senior gold peers, and a diversified asset portfolio positioned for growth in many of the world's most prolific gold districts, the company said. At the 2019 opening of markets, Bar- rick had a market capitalization in excess of $23.75 billion, with the largest re- serves base among its senior gold peers. In a joint letter to stakeholders, John Thornton and Mark Bristow said that with the best asset base and the strongest management team in the sector, Barrick was well placed to be the world's most valued gold mining business. Anglo Restarts Minas Rio Anglo American plc announced the re- sumption of operations at its Minas-Rio iron ore operation in Brazil. The restart of the integrated iron ore operation follows an extensive and detailed technical in- spection of the 529-kilometer (km) pipe- line that carries the iron ore in slurry form from the mine to the port, the pre-emptive repair of certain sections of the pipeline, and receipt of the appropriate regulatory approvals. The inspection of the entire pipeline by specialist pipeline inspec- tion devices (PIGs), and the analysis of the collected data by expert teams drawn from Brazil and internationally, confirmed the pipeline's integrity. Anglo American has taken a respon- sible approach and has pre-emptively re- placed a 4-km stretch of pipeline where the two leaks of non-hazardous material had occurred, as well as a small number of individual sections of pipe where the PIGs detected minor anomalies below the normal threshold for intervention. Fur- thermore, Anglo American has shortened the intervals for future inspections by PIGs from five years to two years to ensure the long-term integrity of the pipeline, while also fitting a fiber-optic system of acoustic, temperature and vibration sen- sors along critical sections of the pipeline to monitor its performance. "The protection of the natural environ- ment surrounding local communities and the overall integrity of the pipeline have formed the focus of our work to restart Minas Rio and meet our obligations to our host communities, employees, customers and other stakeholders," Mark Cutifani, chief executive of Anglo American, said. "We congratulate our team on the ground that so quickly restored the waterways to full health and put in place an improved additional wa- ter supply to the nearby community." The extensive analysis confirmed the sound condition of the pipeline and the company has taken a number of preven- tative measures to provide additional re- assurance for the long term. "The majority of our employees have been deployed across our operations in Brazil during this year, including on the construction work required to secure our Step 3 operating license for Minas Rio, and safety and other refresher training has been under way since early November in prepa- ration for the restart," the company said. Anglo American expects the operation to ramp up to 1.2 million mt (wet basis) per month of iron ore in 2019. In related news, Anglo American plc announced the receipt of regulatory ap- proval relating to the Step 3 license area of the Minas Rio operation in Brazil. Access to the Step 3 area provides greater opera- tional flexibility and access to higher grade iron ore to support the increase of produc- tion of the operation toward its full design capacity of 26.5 million mt per year. As a result of this important regulatory approval, production guidance for 2019 is increased to 18 million-20 million mt (wet basis), from the previous guidance of 16 million-19 million mt (wet basis). Unit cost guidance for Minas Rio is lowered to $28-31 per mt (FOB, wet basis), from the previous guidance of $30-33 per mt. Diavik Yields Largest Diamond Ever Found in North America Dominion Diamond Mines has reported recovery of the largest-known gem-qual- ity diamond ever found in North America. The 553-carat yellow diamond was un- earthed in October at the Diavik diamond mine, approximately 135 miles south of the Arctic Circle in Canada's Northwest Territories. The find far surpasses the pre- Barrick executive chairman John L. Thornton (center), and Mark Bristow, president and chief executive officer (center left), open the New York Stock Exchange on January 2, 2019. (Photo: NYSE)

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