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
Issue link: https://emj.epubxp.com/i/142836
REGIONAL NEWS - EUROPE LKAB Opens New Main Level at Kiruna A new ore-train locomotive on display at LKAB's official opening of the KUJ1356 main level at its Kiruna mine in Sweden. (Photo courtesy of LKAB) Luossavaara-Kiirunavaara AB (LKAB) officially opened the new main level at its Kiruna sub-level caving iron ore mine in northern Sweden on May 21. Called the KUJ1356 level, the new level is the mine's seventh main level and is 1,365 m below surface, 320 m below the mine's previous main level. KUJ1356 required an investment of SEK 12.4 billion (about $1.9 billion at current exchange rates) and 4.5 years of construction to complete. Development work included excavation of nearly 4.3 million m3 of rock. The Kiruna mine is located about 145 km north of the Arctic Circle and is the largest underground iron ore mine in the world. The magnetite orebody is 4 km long, 80 m to 120 m thick, dips at 40° to 75°, and has an iron content in the range of 60% to 70%. Since 1899, LKAB has extracted more than 1 billion mt of ore from the mine. The new KUJ1356 main level secures production from the Kiruna mine for another 20 to 25 years and will allow an expansion of ore production from about 27 million mt/y to 35 million mt/y. The first stage of production from the KUJ1356 level is based on three groups of shafts, each comprising four ore passes, two train sets, a crusher and a skip hoist, as well as all media and automation needed to keep the level running. Four addi22 E&MJ; • JULY 2013 tional production stages will involve the addition of more production areas, groups of shafts, trains, crushers and skip hoists. All stages will be complete by early 2017. "The KUJ1365 level is an unusual project, partly due to its size but also because it extends over such a long period," Project Manager Hans Engberg said. "From the preproject phase to completion, we're talking 12 years. This has placed special demands on our organization and planning." Midroc Electro delivered the fully automatic process control and train transportation system for the KUJ1365 level. Bombardier Transportation, acting as a subcontractor to Midroc Electro, supplied its computer-based Interflo 150 train-control technology for use in the ore transport system. The driverless Interflo 150 system is fully integrated with a mine's loading and logistics systems and enables automatic route setting and dispatching. Its moving block technology allows trains to operate safely with shorter headways and improves the use of track and rolling stock, as well as energy efficiency and production capacity. Interfaces to production administration and weighing equipment in the track provide statistical input. agreed in late May to invest $100 million, or $25 million each, in Northland Resources bonds, helping the emerging Swedish iron ore producer get back on its financial feet. The consortium's investment formed part of a total Northland bond issuance of $325 million. Northland started up its Kaunisvaara iron ore mine in northern Sweden in late 2012 but almost immediately came up short of working capital to fund both shortterm and longer-term operations (E&MJ;, March 2013, p. 22). The company had to halt operations on May 24 but restarted operations on June 4 after obtaining needed financial backing. The company had been targeting shipment of 1.5 million mt of high-quality iron ore concentrate during 2013 and had a goal of reaching its design operating rate of 4 million mt/y by the third quarter of 2014. As a condition of its investment, the consortium obtained the right to appoint four out of seven members to Northland's board of directors. Metso has supplied mining equipment and services to the Kaunisvaara project. Norrskenet is a venture capital company whose partners include LKAB. Peab is a leading Nordic construction and civil engineering company. Folksam is a Swedish mutual insurance company and an active investor in the Nordic region. Sirius Signs Sales Agreements for York Potash Project Northland Survives Cash Crunch with Aid from Investment Consortium In late May, Sirius Minerals reported it has entered into a number of framework sales agreements with fertilizer distributors and manufacturers operating in the United Kingdom and central Europe covering future sales of polyhalite from the company's York potash project in North Yorkshire, England. Current planning for the project calls for underground, room-and-pillar mining to produce 5 million mt/y of granulated polyhalite. A definitive feasibility study and project permitting are currently in progress. Sirius is targeting first production in late 2016. The framework sales agreements set out volume commitments and a basis for cooperation between the parties in relation to entering into formal sales contracts closer to the time of first production. The product volume indicated by the agreements An investment consortium made up of Metso, Norrskenet, Peab and Folksam (Continued on p. 28) www.e-mj.com