Engineering & Mining Journal

JUN 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 • JUNE 2019 www.e-mj.com Ivanhoe Mines Secures Financing for First 2 Mines in DRC Thanks to additional investments of more than $503 million, Ivanhoe Mines said it will be able to finance its first two mines, Kakula and Kipushi, to commer- cial production. CITIC Metal, through a subsidiary, is in- vesting an additional $454 million in Ivan- hoe and Zijin Mining Group exercised its anti-dultion rights generating $49 million. Co-chairmen Robert Friedland and Yufeng "Miles" Sun, said the proceeds are expected to be received no later than September 7. The funds will also allow Ivanhoe to significantly advance or achieve produc- tion at the Platreef Project in South Afri- ca, the company said. Zijin Mining is Ivanhoe's joint-ven- ture partner at the Kamoa-Kakula copper project in the Democratic Republic of Congo. Zijin's exercise of its anti-dilution rights will maintain its ownership in Ivan- hoe Mines at 9.8%. The Kamoa-Kakula project has been ranked as the world's largest, undeveloped, high-grade copper discovery by consultant Wood Mackenzie. The Kipushi prohect is 68% owned by Ivanhoe and 32% held by the DRC's state- owned mining company, Gécamines. The project is based on the high-grade, under- ground zinc-copper mine in the Central Afri- can Copperbelt, which mined approximately 60 million metric tons grading 11% zinc and 7% copper between 1924 and 1993. Ma'aden Building 250,000- oz/y Gold Project The Saudi Arabian Mining Co. (Ma'ad- en) is proceeding with construction of its Mansourah & Massarah gold project in the Central Arabian gold region. The project includes two open-pit mines and a cen- tral processing plant. At average produc- tion of 250,000 ounces per year (oz/y), the project will be Ma'aden's largest gold project and will lift the company closer to its goal of becoming a 1-million-oz/y gold producer by 2025. Ma'aden produced 415,000 oz of gold in 2018. Total investment to build the Mansourah & Massarah project is expected to reach 3.3 billion riyals ($880 million). The plant will be capable of processing up to 4 million metric tons per year (mt/y) of the complex refractory ores contained in the deposits, the first time such ores have been mined and processed in the Middle East. At year-end 2017, the Mansourah de- posit had 12.4 million mt of proven re- serves at a grade of 2.49 grams/mt gold and 15.3 million mt of probable reserves at a grade of 2.57 g/mt, while Massarah had 3.1 million mt of proven reserves at a grade of 2.08 g/mt and 14.2 million mt of probable reserves at a grade of 1.97 g/mt. Ma'aden has awarded a contract for development of the Mansourah & Massar- ah project to a consortium of Outotec and Larsen & Toubro. Larsen & Toubro is an engineering and construction firm head- quartered in Mumbai, India (See Suppli- ers News, p. 96). The Mansourah & Massarah project will be the first in Saudi Arabia to uti- lize solar power as an energy source. It will also benefit from treated wastewater piped through a 430-kilometer (km) pipe- line from the municipality of Al Ta'if to the remote and water-scarce region where the project is located. Ma'aden plans to spend 295 million riyals ($67 million) on new exploration concessions in 2019, marking a threefold increase in its investment commitment on previous years. It has also launched an "Accelerated Exploration Program" to shorten the time needed to move new dis- coveries into development. Regarding Outotec's participation in the Mansourah & Massarah project, Outotec CEO Markku Teräsvasara said, "We are ex- tremely pleased with this significant order and continued cooperation with Ma'aden, which is growing to be a global mining com- pany. Our previous deliveries have included grinding, flotation, and filtering technolo- gies, as well as alumina calcination tech- nology and three sulphuric acid plants. Our proven technologies and services enable them to get the best value from their re- sources and build sustainable operations." Gold Bar Achieves Commercial Production McEwen Mining Inc. has achieved com- mercial production at the Gold Bar mine in Nevada, USA. Production guidance for 2019 is 50,000 gold ounces at an AISC of $975/ounce. Gold recoveries from the heap leach are tracking well compared to the feasi- bility study design criteria and production is steadily increasing since the first gold pour on February 16, the company said. Left to right: Peter Zhou (vice president, corporate development, Asia, Ivanhoe Mines), Yufeng "Miles" Sun (president, CITIC Metal Group/chairman, CITIC Resources Holdings/co-chairman, Ivanhoe Mines), Robert Friedland (executive co-chairman, Ivanhoe Mines) and Manfu Ma (vice president, CITIC Metal Group).

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