Engineering & Mining Journal

APR 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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Page 17 of 83

REGIONAL NEWS - AUSTRALIA/OCEANIA 16 E&MJ • APRIL 2019 Newmont Finishes Tanami Power Project Newmont Mining Corp. announced it has completed the Tanami Power Proj- ect in Australia safely and on schedule. The project included the installation of two power stations, a 66-kV intercon- nected power line, and a 275-mile (450 km) natural gas pipeline. The pipeline was built and will be maintained by Australian Gas Infrastructure Group, while the power stations were con- structed and will be operated by Zenith Energy. Capital costs are estimated at approximately $245 million with annu- al cash lease payments over a 10-year term beginning in 2019. Newmont said the project will provide the Tanami gold mine a safe and reliable energy source while lowering power costs and carbon emission by 20%. The project is expected to generate net cash savings of $34 per ounce from 2019 to 2023, delivering an Internal Rate of Return of greater than 50%. "In addition to lowering costs and carbon emissions, the completed Tanami Power Project will pave the way to further extend the life of the operation," CEO Gary Goldberg said. He added that the completion of the project coincided with Tanami pouring its 10 millionth ounce of gold and record production of 500,000 ounces last year. Tanami is Australia's second largest underground gold mine and exploration success has created the potential to ex- tend mine life beyond 2028. Rio Tinto Commissions Amrun Bauxite Mine Rio Tinto completed commissioning of its $1.9 billion Amrun bauxite mine on the Cape York peninsula in northern Queensland in early March. The mine and associated processing and port facilities are located about 40 kilometers (km) south of the company's existing East Wei- pa and Andoom mines and will replace depleting production from East Weipa. Amrun shipped its first bauxite in De- cember, six weeks ahead of schedule. At full production, it will have capacity to produce 22.8 million metric tons per year (mt/y) of bauxite, with options to expand. Rio Tinto's total annual bauxite export ca- pacity from the Cape York peninsula will increase by about 10 million mt at a time when higher-grade bauxite is becoming scarcer globally. The Amrun mine, plant, and export facility were approved in 2015. In an in- dustry first, the project's 1-kilometer-long export facility was built in modules off- site and then brought to Amrun and con- nected, reducing over-water construction and painting and reducing construction time by a year. Safety was also increased by removing the need for 300,000 work hours that would have been spent at height and over water. OZ Studying Block Cave for Carrapateena's Lower Levels OZ Minerals has reported the results of a scoping study for a block cave expansion at its Carrapateena mine-development proj- ect in South Australia. The scoping study shows that converting the lower half of the Carrapateena sub-level cave, currently under construction, to a block cave from 2026 could double the mine throughput rate from 4.25 million metric tons per year (mt/y) to 10 million mt/y to 12 million mt/y. It could also increase life-of-mine average copper production from 105,000 mt/y to 125,000 mt/y from 2026. The sub-level cave is scheduled to produce an average of 65,000 mt/y of copper and 67,000 ounces per year (oz/y) of gold. The block cave would reduce life-of- mine all-in sustaining costs to $0.90 to $0.95/lb from $1.05 for the sub-level cave. Life-of-mine production would increase from 84 million mt at grades of 1.8% cop- per and 0.7 g/mt gold to approximately 145 million mt at grades of 1.2% copper and 0.5 g/mt gold over a 20-year period. The block cave expansion can occur without impeding existing sub-level cave development, ramp up, or ongoing opera- tion, which is on track for first production in the fourth quarter of 2019. Preproduction capital to develop the block cave is estimated at A$1 billion to A$1.3 billion. Capital payback of A$916 for the sub-level cave would be achieved before major development spending on the block cave. OZ Minerals' 2019 cost guidance for project studies and drilling commitments is now A$75 million to A$80 million. OZ Minerals is now progressing the Carrapateena block cave expansion to a prefeasibility study and the Carrapateena Life of Province Plan to a scoping study. A new natural gas-fired power plant will reduce production costs for Australia's second-largest gold mine. (Photo: Newmont)

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