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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NEWS-LEADING DEVELOPMENTS APRIL 2018 • E&MJ 5 warrants. Upon completion of the transac- tion, Brio shareholders will own approxi- mately 42% of Leagold, including Yamana Gold, which will own approximately 22%. Yamana has agreed to hold the Leagold shares it receives for a minimum period of 12 months, subject to certain exceptions. "It is envisioned that Brio's operating procedures and reporting relationships within Brazil will be largely unaffected by the transaction," Leagold CEO Neil Woodyer said. "To enhance this integra- tion plan, Leagold will be pleased to wel- come Brio Gold President and CEO Gil Clausen as Brio's nominee to Leagold's board of directors. "We are pleased to have reached an agreement with Leagold to combine our companies to create a large midtier gold producer with peer-leading growth. "This transaction brings many near- term and long-term benefits to Brio share- holders. In addition to the immediate and significant premium, the combined com- pany will have a solid production plat- form, strong cash position and additional cash flow to fund growth. Further, the combined company will have a broadened shareholder base, a larger public float and enhanced trading liquidity. "We are confident that this combina- tion, led by Leagold's experienced man- agement team, will create additional val- ue for our shareholders going forward." Production Resumes at Cadia Newcrest Mining recommenced process- ing at its Cadia operations at the beginning of April with the associated tailings being deposited into the southern tailings facil- ity. Processing is currently at a run rate of approximately 8 metric tons per year (mt/y) due to limitations in infrastructure to the southern tailings facility. The south- ern tailings facility has been inspected, independently reviewed and assessed to be safe for tailings deposition. Increased monitoring has been implemented, with new real-time radar monitoring scanning the length of the wall for ground move- ment every 30 minutes, coupled with dai- ly physical geotechnical inspections and regular drone surveys to verify the integrity of the wall. Work continues on evaluating the cause of the northern tailings facility embankment slump. A prohibition notice issued by the NSW Resources Regulator on depositing tailings in the northern tail- ings facility remains in place. As a pre- cautionary measure, construction of the first 15-m lift of a 30-m-high temporary containment bund near the embankment slump has been completed. Work on the bund is expected to be completed in the coming two weeks. Mining from Panel Cave 1 is currently at a rate of approxi- mately 11 mt/y. Test and response pro- duction from Panel Cave 2 commenced as well. Newcrest expects to be at full min- ing rates within the coming weeks. New- crest continues to progress evaluation and readiness of the Cadia Hill open pit as a tailings facility. The pit, in which mining has ceased, is approximately 500 m deep. Newcrest is progressing a permit to initial- ly use the bottom 200 m of the Cadia Hill open pit for tailings storage and to use it in conjunction with the southern tailings facility to provide enough storage capacity to enable Cadia to return to full produc- tion. Preliminary reviews carried out by external specialists of the use of the Cadia Hill open pit as a tailings facility indicate An artist's rendering shows the proximity of the new Cleveland Cliffs HBI plant to the Port of Toledo. Cleveland-Cliffs broke ground on its first hot-briquetted iron (HBI) production plant. The company is investing $700 million to build one of the world's most modern and efficient iron making plants, generating a total of 130 new jobs in To- ledo, Ohio, the company said. The Toledo plant will produce 1.6 million metric tons per year (mt/y) of customized high-quality HBI, and will make Cleveland-Cliffs the sole producer of high-quality customized feedstock for the domestic electric arc furnace (EAF) steelmakers located in the Great Lakes region. Cliffs' domestically produced HBI will supply a Great Lakes market currently estimated at 3 million mt, which is currently supplied exclu- sively by imports of commercial-quality pig iron and HBI from countries such as Russia, Ukraine, Brazil and Venezuela, among others. Startup of the plant is ex- pected to happen in the summer of 2020. "Today, we are launching a new era for the iron and steel industry in the Unit- ed States," said Lourenco Goncalves, chairman, president and CEO, Cleve- land-Cliffs. "We are taking the initial steps to enable EAF steelmakers to pro- duce the specs associated with high-mar- gin steels for sophisticated end markets, such as automotive and others. For decades, Cleveland-Cliffs has been supplying the American steelmak- ers in the Great Lakes with customized pellets to feed their blast furnaces. "With the growth in participation of EAFs, it was just a matter of time for Cliffs to become a supplier of these important steelmak- ers," Goncalves said. "Its HBI will be for the EAFs the same great feedstock our taconite pellets are, and will continue to be, for our blast furnace clients." Cleveland-Cliffs is the largest and old- est independent iron ore mining company in the United States. The company is a ma- jor supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Min- nesota. It also operates an iron ore mining complex in Western Australia. Cleveland-Cliffs Breaks Ground on HBI Plant in Ohio

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