Engineering & Mining Journal

APR 2018

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 27 of 91

REGIONAL NEWS - AFRICA 26 E&MJ • APRIL 2018 achieve its goal of producing more than 500,000 ounces per year (oz/y) of gold from its three West African operations, Edikan, Sissingué and Yaouré. At the end of the first quarter, Perseus was on track to achieve full-year production guidance of 250,000 oz to 285,000 oz. AngloGold Ashanti Redeveloping Obuasi AngloGold Ashanti has signed regulatory and fiscal agreements with the govern- ment of Ghana that provide the frame- work for redevelopment of the company's Obuasi gold mine into a modern, produc- tive mining operation. A feasibility study has tested the viability of redeveloping the mine's high-grade orebody, which has 5.8 million ounces (oz) of gold reserves and 34 million oz of gold in mineral resources, to create a safe, long-life mining opera- tion that is productive and profitable. Obuasi entered a limited operating phase in 2014, with a focus on cleanup and processing of tailings, continued con- struction of the Obuasi Deeps decline, maintenance of surface and underground infrastructure, water treatment, and meet- ing environmental obligations and social commitments. Redevelopment will estab- lish the mine as a mechanized underground operation, making use of automation and controls for improved operational efficien- cies and consistency in performance. The operation is expected to create between 2,000 and 2,500 jobs, with ad- ditional roles being required during the construction phase of the project. Project implementation will be under- taken in two distinct phases, with stage one comprising project establishment, mine rehabilitation and development, and plant and infrastructure refurbishment to enable a production rate of 2,000 mt/d for the first operating year. Stage one will take roughly 18 months to complete, with the first gold pour planned for the third quarter of 2019. Stage two includes refurbishment of the underground materials handling system, shafts, and ventilation and con- struction of the primary crusher, the SAG/ ball circuit, carbon regeneration, a new gold room, and a tailings storage facility. Stage two will take a further 12 months and enable plant throughput to increase to 4,000 mt/d. The operation is then ex- pected to ramp up to 5,000 mt/d over the following three years. Mine production for the first 10 years will be focused on Obuasi's upper orebod- ies and is expected to produce an average of 350,000 oz/y to 450,000 oz/y of gold from an average head grade of 8.1 g/mt. In the second 10 years, production will average 400,000 oz/y to 450,000 oz/y. Total cash costs are expected to aver- age between $590 and $680/oz, while all-in sustaining costs are expected to be between $750/oz to $850/oz. Initial proj- ect capital expenditure over the first 2.5 years is expected to be between $450 million and $500 million, excluding pre-production capital of $64 million. After completion of stage two, extend- ed project capital expenditure of $94 million is expected to continue through to year six, covering development of the Obuasi Deeps decline to the lower level of the mine, refurbishment of the KMS shaft, installation of new underground pump stations, and construction of the tailings storage facility. "Redevelopment will establish Obuasi as a world-class operation, rejuvenating the proud gold mining history of the Ashanti region in Ghana," said AngloGold Ashanti CEO Srinivasan Venkatakrishnan. "Obuasi now has the mine and labor plan, geolog- ical understanding, and social model to match its world-class, high-grade orebody. "The project metrics show a high-re- turn, long-life project that not only brings ounces to account quickly and profitably but also offers attractive returns on our investment." Rusal to Open Bauxite Mine in Guinea UC Rusal will start mining bauxites at the Dian-Dian deposit in Guinea before the end of April, company President Vladislav Soloviev said, according to Russia TASS. "By the end of April, we will start the mine with the capacity of 3 million [met- ric tons per year]. There are plans to in- crease the capacity up to 5 million mt, but that depends on infrastructure capa- bilities, in particular, on the throughput of the railway. We will work on it," he said. The company plans to exploit the bauxite deposit in stages. Previously, Ya- kov Itskov, head of the alumina business department of Rusal, estimated the in- vestments in the first two stages of the project at $216 million. UC Rusal struck a deal with Guinea in 2016 that gave them the right to develop Dian-Dian, the world's largest bauxite concession with reserves of 564 million mt. Stage two of the Obuasi refurbishment program includes an underground materials handling system, shafts and ventilation improvements to access the ore bodies shown above.

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