Engineering & Mining Journal

MAY 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 • MAY 2019 www.e-mj.com 2 Growth Projects Will Expand Norilsk Industrial District Output Norilsk Nickel (Nornickel) has made final investment decisions on two growth projects to be developed by its Polar Division in the Norilsk industrial dis- trict of north-central Russia. New min- ing operations will be developed on the district's South Cluster deposits, and throughput capacity of the Talnakh concentrator will be increased from 10 million metric tons per year (mt/y) to 18 million mt/y. The combined investment in the projects is planned to total about 90 billion rubles (about $1.4 billion) over the next four years. The South Cluster project will develop the northern part of the Norilsk-1 deposit, which was the basis for the original de- velopment of Norilsk Nickel. The project will give new life to the heavily depleted deposit. Mineable resources of dissemi- nated ore total about 165 million mt. Ore mining capacity is planned to reach 9 million mt/y in 2027. With all necessary infrastructure in place, stripping for open-pit mining at the South Cluster is scheduled to launch in 2019, and mine ramp-up is planned to start in 2021-2022. During the first phase of the project, an existing open pit will be expanded. A second phase will re- vamp the existing underground mine. Capital investment for the South Clus- ter project is budgeted at more than 45 billion rubles. Nornickel is expecting added produc- tion of more than 20 mt/y (about 643,000 ounces per year) of platinum group met- als (PGMs) from the South Cluster proj- ect, as well as some nickel and copper as byproducts. On a standalone basis, the project will be among the world's largest PGM producers. In 2018, Nornickel's Po- lar Division produced 987,000 oz of pal- ladium and 240,000 oz of platinum. The expansion of the Talnakh con- centrator includes rollout of a new, more efficient enrichment technology. Upon project completion, all of the ore mined at the Talnakh deposit will be processed at the Talnakh concentrator, which should yield economies of scale and improve overall recovery rates in the concentration process. Total capital investment in this project is estimated at about 40 billion rubles. The project is planned for com- missioning in 2023. Upon completion, the Talnakh con- centrator will likely become the world's largest concentrator for nickel sulphide ores. Having all of the Talnakh ores treated at a single concentrator will free up the Norilsk concentrator in the district to treat feed from the South Cluster project. The two projects will create more than 2,000 jobs in the Norilsk indust- rial district. Nornickel President Vladimir Potanin said, "Nornickel's management team has been preparing the platform for growth since 2013. Now we are ready to make a step change transformation from a steady state to a sustainably de- veloping operation. "Our strong 2018 financial results combined with a favorable macro environ- ment support the company's strong finan- cial position and enable our investments into prospective growth projects. "Our corporate plans fully corre- spond with Russia's long-term strate- gic social and economic development targets. We anticipate that new capital investments will result in an unprece- dented increase in our output of base metals and PGMs, all of which enjoy strong demand globally." Anglo Becomes Founding Sponsor of World Bank's Climate Smart Mining Fund Anglo American has committed to the World Bank's Climate Smart Mining initiative by becoming a founding donor to the Climate Smart Mining Facility. It is the first fund dedicated to making mining for metals and minerals a more sustainable practice that complements the energy transition. Building on the World Bank's initial $2 million investment, Anglo American joins partners from the private sector and govern- ments as a donor, providing $1 million to the facility over the next five years. The fa- cility's work will support the sustainable ex- traction and processing of mining products used in developing clean energy technolo- gies, such as copper used in energy storage and electric vehicles. The fund will also work with governments and operators in developing countries to establish strategies for sustainable mining operations and legal frameworks that promote smart mining. "To have real impact, we must work to- gether with governments and operators to These thickeners are examples of the substantial investment Nornickel is making to upgrade its concentrators. (Photo: Nornickel)

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