Tag Archives: AngloGold Ashanti

Pentium Hydro wins drilling and waterwell construction contract at Tropicana gold mine

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Vysarn’s wholly-owned subsidiary, Pentium Hydro, has confirmed another major mining contract, this time with the AngloGold Ashanti and Independence Group joint venture Tropicana gold mine in Western Australia.

Pentium, which was only acquired from Ausdrill last month, is to provide dual rotary drilling and waterwell construction services at the mine.

Earlier this month, Pentium announced a purchase order worth up to A$800,000 ($549,866) with Fortescue Metals Group at the Cloudbreak iron ore operation.

Under the contract, Pentium will drill and construct de-watering at various locations at the Tropicana mine site including the bore fields, tailings storage facility and open pit areas.

Pentium has commenced procurement of the long lead time materials with mobilisation of the drill rig and auxiliary plant to be completed by early October, Vysarn said. The scope of work is expected to commence shortly thereafter and be complete by mid December 2019.

Pentium Managing Director, Sheldon Burt, said: “This is the fourth rig mobilised by the company in less than a month since acquiring the hydrogeological drilling assets from Ausdrill and confirms the board’s confidence in the underlying demand for the company’s assets and services. We are delighted to be working for a company of AngloGold Ashanti’s standing.”

Tropicana is owned 70% by AngloGold (manager) and 30% by Independence Group. The open-pit operation poured first gold in September 2013.

Gold price rise revealing exploration deficit, Wood Mackenzie says

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Even though the resurgent gold price has garnered a renewed sense of optimism in the gold industry, a lack of exploration spend from miners means it is facing a potential period of secular decline over the long-term, according to Wood Mackenzie’s gold team.

Exploration budgets were slashed following the fall in the gold price from the highs that were reached in 2011/2012 and they have since failed to recover, according to Wood Mackenzie.

“The slight rebound in exploration spend we have seen over the past couple of years has largely been focused on brownfield projects and near-mine development,” the analysts said. “This has not been sufficient to replenish mined ounces and, as such, peak gold supply is now a very real possibility.”

Over the past couple of months, with gold breaking through $1,500/oz, it seems that exploration activity may be turning a bit of a corner.

The analysts provided evidence:

  • In late June, Agnico Eagle Mines started an exploration drilling program at its Amaruq site in an effort to convert underground indicated resources;
  • On September 4, Polyus announced the completion of an exploration drill program at its Sukhoi Log project (pictured) that totalled 203,647 m and is planning 30,000 m of infill drilling in 2020; and
  • On September 10, Newcrest reported that its exploration program on the Havieron project, located 45 km east of Telfer in Australia, has four operating drill rigs, which have cut 6,166 m and a fifth drill will begin in September.

It will be some time, however, before this activity translates into reserves and ultimately into production.

Proposed exploration budgets for the largest producers in 2019 remain fairly conservative compared with the levels reached in 2012, according to the analysts. It would therefore seem unlikely that the trend in declining reserves will be abated this year.

Producers have been very vocal in reaffirming their strategy of cost control, portfolio management and capital discipline, particularly since the run up in the gold price, ensuring they do not get criticised for the same type of costly M&A and marginal project spend they carried out in the previous gold price highs.

“How steadfast miners will be to this strategy into 2020 and beyond, if prices continue to remain well supported, remains to be seen,” the analysts said.

Due to insufficient exploration spend, gold reserves have depleted significantly with the global average mine life falling from 16 years in 2012, to an estimated 11 years in 2018, they said. However, the largest producers are not facing quite such an acute situation, with their collective average mine life still over 16 years. “It is perhaps therefore not so surprising that they can afford a more calculated approach to replenishing reserves.”

To secure their longevity as pillars of the gold industry, Wood Mackenzie said it has seen heightened M&A activity and miners focusing on their core assets. While this may help to bolster balance sheets through improved operational performance and realised ‘synergies’, it seemingly does little to address the problem the industry is facing with regards to how to sustain current production levels.

“We have, as of late, noticed an uptick in some majors opting to increase their footholds in a select few juniors with promising exploration opportunities,” the analysts said.

Agnico Eagle, AngloGold Ashanti, Kinross and Newcrest are actively investing in, or entering into joint-ventures with junior gold companies to create long-term value.

Agnico Eagle announced a proposal on June 24, 2019 for an all-share acquisition of Alexandria Minerals Corporation at a $0.05 per share premium to the Chantrell Ventures Corp offer; however, O3 Mining acquired Alexandria on August 1, 2019.

AngloGold Ashanti upped its stake in Pure Gold Mining to 14.3% on July 16, 2019, which owns the Madsen gold project in Red Lake, Ontario.

Kinross purchased the near-surface, early-stage Chulbatkan project in Russia from N-Mining Limited for a total consideration of $283 million on July 31, 2019.

And, Newcrest entered into a 70-30 joint venture with Imperial Metals on August 16, 2019, where Newcrest will be the operators of the Red Chris mine, a potential ‘Tier One’ asset in British Columbia, Canada, the gold miner has said.

The analysts said: “We expect to see this trend of increased M&A activity to continue, particularly amongst the more mid-tier gold producers as they look to solidify their own positions in the industry. This will likely encompass mergers with peers to unlock shareholder value and the acquisition of assets that majors have determined to be non-core.

“This may help to progress some later stage projects into production that have been sitting on the shelf for a number of years, but we are not anticipating a knee jerk reaction to current prices. Smaller projects which have a short payback period, in a low sovereign risk jurisdiction, are an attractive proposition and we could see a number of these projects being fast tracked into production.”

And, going forward, to address the predicament of declining reserves, if prices remain elevated miners may be inclined to review their reserve and resource price assumptions, the analysts said.

Barminco and Sandvik in mobile raiseboring world first

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Barminco, part of the Perenti Group, says it has become the first company globally to have taken delivery of a mobile raiseboring machine with uphole, downhole, and back reaming capability.

The hardrock underground mining services provider has been using Sandvik’s new Rhino 100 Mobile Raise Boring machine for 18 months in Ghana and three months in Australia, and has now added a module enabling back reaming capability to the machine.

The Rhino 100 is a fully mechanised and self-contained electro-hydraulic mobile raiseborer designed for slot raising in underground mining. Up until now, a back reaming module had not been used anywhere in the world on this rig, Barminco said.

Mick Radi, Barminco’s General Manager of Mining, said the new module – which had already been deployed at AngloGold Ashanti Sunrise Dam gold mine, in Western Australia – would enable safe, efficient upward and downward drilling providing maximum flexibility for clients.

“We are thrilled Barminco is offering a world first for our clients. The new plug and play back reaming module gives us the capability to quickly change from an uphole slotting machine to a conventional back reaming raisebore machine,” he said.

“The mobile carrier enables the Rhino to be totally self sufficient with no requirement for other fleet to assist in rig moves. Fast set up times and high drilling productivity is helping us to derisk our clients production plans and increase the certainty of meeting targets.”

Radi said the company had been successful using our Rhino 100 Mobile Raise Boring machine on its client’s sites in the Goldfields region of Western Australia and its plan was to keep the machine in this region where there is demand for this capability.

“The addition of this new module is just one of many ways Barminco is providing innovative solutions for clients, such as AngloGold Ashanti,” he said. “We have been working with AngloGold for 14 years and by providing this new capability we are helping them improve their operations to be even more efficient and safe.”

Bryan Watson, Manager Mining from AngloGold Ashanti, said the module was already making a significant difference on site.

“This new piece of equipment saves us time, is safer, and will assist us achieving production targets at Sunrise Dam,” Watson said. “We appreciate Barminco’s approach to working with us as a client to help us achieve more efficiencies on site.”

The down drilling module drills a pilot hole at 279 mm, up to a depth of 200 m. This can then be reamed to a diameter of 660 mm or back reamed to a diameter of 1.06 m. Back reaming can be achieved to a depth of 100 m with hole angles at a maximum of  15° dump, and 30° to either side from vertical.

The setup time for the machine is two hours, compared with a three to four day set up for a conventional raiseboring machine.

Nippon thermal fragmentation tech proves its worth at AngloGold narrow vein mine

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Nippon Dragon Resources has revealed more details about testing of its exclusive and patented thermal fragmentation technology in South Africa following a recent presentation from AngloGold Ashanti.

The company’s South Africa distributor, MaXem, who attended the open-day presentation organised by the Mandela Mining Precinct, provided the details, Nippon said.

Nippon’s thermal fragmentation process for narrow vein mining involves drilling a series of 6 in (15 cm) pilot holes into the vein with a conventional drill. Thermal fragmentation (thermal head, compressed air and water) is then inserted and spalls the rock, quickly increasing the diameter of the hole to 30-110 cm. After this, ore can be extracted in 0-13 mm fragments. The leftover rock between fragmented holes is then broken to recover the remaining ore.

This precision allows for the extraction of high-grade precious and base metal veins without dilution, according to Nippon.

AngloGold Ashanti, which is a MaXem client, said over 200 holes were drilled and fragmented using the thermal fragmentation technology at one of its underground operations in South Africa. Of these holes, several exceeded 30 m in length.

One of the objectives of the test work was to drill, fragment, clean and backfill a hole within a 25-hour period; an objective the company achieved, Nippon said, adding that over the 200 holes completed, productivity ranged from between 3-6 t/h.

Two other projects are currently under review by the Non-Explosive Rock Breaking Programme within the Mandela Mining Precinct, MaXem and other partners, according to Nippon. One of these is the spallability classification of different rock types and the other is the employability of the thermal fragmentation technology within the platinum sector.

The Mandela Mining Precinct is established as a public and private partnership between the South African Government, the mining companies, manufacturers of mining equipment, research organisations and academia to foster collaboration and innovation. It “assists the mining industry in bringing change to processes, technologies, skillsets and social and environmental impacts associated with current mining through the modernisation of mines via mechanisation and automation”, Nippon says.

KPS to power up Tropicana underground expansion project

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Power generation specialist Pacific Energy’s subsidiary, Kalgoorlie Power Systems (KPS), has secured up to a 6 MW expansion under its existing contract with AngloGold Ashanti Australia for its majority-owned Tropicana gold mine, in Western Australia.

An initial 4 MW is to be commissioned by December 2019 with a further 2 MW to be installed at AngloGold’s option, which would take the gas fuelled power station at Tropicana to 50 MW capacity.

The increased power is required for the Boston Shaker underground project at the Tropicana gold mine in Western Australia, an expansion project that will enable Tropicana gold production to be maintained at between 450,000-500,000 oz/y over the five years to and including the 2023 financial year, AngloGold and Independence Group (30% owner of the mines) said.

KPS has also recently secured an additional 2 MW in capacity expansions with other customers, Pacific Energy said.

“The above organic contract expansions, together with the previously announced 6 MW expansion currently being undertaken for St Barbara and the soon to be commissioned new 5 MW Juardi power station, will see Pacific Energy bring an additional 17 MW of new power generation capacity on line by the end of this calendar year,” Pacific Energy said.

The company’s Contract Power subsidiary, as well as KPS, are both currently in discussions with several of their customers regarding other likely contract expansions.

Pacific Energy also advises that the 52 MW gas-fuelled power station recently undertaken by Contract Power for Mineral Resources has now achieved practical completion.

Macmahon to go underground with AngloGold, IGO at Tropicana gold mine

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ASX-listed Macmahon Holdings says it has been issued a Notice of Award by AngloGold Ashanti, its client at the Tropicana gold mine in Western Australia, for the development of the new Boston Shaker underground mine.

Tropicana, a joint venture between AngloGold (70% and manager) and Independence Group (IGO, 30%), is already Macmahon’s largest mining contract in Australia.

The addition of the Boston Shaker underground work is worth approximately A$170 million ($121 million) over five years, according to Macmahon, which said it expected to commence work in May with contract documentation finalised by the parties in the coming weeks.

Capital expenditure for the underground works is estimated to be approximately A$30 million, and will be primarily spread across the first three years, Macmahon said.

The development of the Boston Shaker underground mine will enable Tropicana gold production to be maintained at between 450,000-500,000 oz/y of gold over the five years to and including the 2023 financial year, AngloGold and Independence Group said. It is expected to contribute 100,000 oz/y to the operation, with first gold expected during the September 2020 quarter. The feasibility study estimated a capital cost for the project of A$105 million.

Macmahon’s Chief Executive Officer, Michael Finnegan, said: “We are excited that our long-term alliance partnership with AngloGold Ashanti and Independence Group has grown to also include its new underground development at Tropicana, where we have been operating the surface mining since 2012.

“This contract win is a major step towards our strategic goal of growing our underground business and capitalising on the increased level of underground opportunities with existing and potential new clients.”

APCOM 2019 to showcase mining’s digital transformation developments

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The preliminary technical programme for the APCOM 2019 conference in Wroclaw, Poland, (June 4-6) has gone live, showing off some of the highest quality peer-reviewed papers on ‘digital transformation’ in mining, from resource estimation to mine operation and safety.

The conference topics include:

Geostatistics and resource estimation

APCOM said: “An entire three-day conference stream provides more than 20 leading- edge and peer-reviewed papers by world-class practitioners from leading mining companies and by world-leading research institutes.”

Papers on this topic include: Transforming Exploration Data Through Machine Learning from MICROMINE’s Mark Gabbitus, Rock mass characterisation using MWD data and photogrammetry from Luleå University of Technology’s Sohail Manzoor, and Rethinking Fleet & Personnel Management in the era of IoT, Big Data, Gamification, and low-cost Tablet Technology from MST Global’s Sean Dessureault.

Mine planning

There will be about 15 papers on newest IT-supported techniques in mine planning, uncertainty reduction, geomechanics, modelling, simulation and the most recent software technology, according to APCOM.

Papers on this topic include: A procedure to generate optimised ramp designs using mathematical programming from Delphos Mine Planning Lab, AMTC/DIMIN, Universidad de Chile’s Nelson Morales, Incorporation of geological risk into underground mine planning from NEXA Resources’ Rafael Rosado and a presentation from AngloGold Ashanti’s Andrade Barbosa titled, Economic Optimisation of Rib Pillars Placement in Underground Mines.

Scheduling and dispatch

“Around 15 papers address long- and short-term scheduling optimisation, the application of neural networks and genetic algorithms as well as risk mitigation and related software systems. A keynote talk covers the impact of Internet of Things (IoT), Big Data and gamification on fleet scheduling topics,” APCOM said.

The conference has attracted speakers on this subject from Clausthal University of Technology, AngloGold Ashanti, University of Alberta, AusGEMCO Pty Ltd, Newmont Mining Corp, Advanced Mining Technology Center and Maptek.

Mine operation in digital transformation

There are more than 20 papers in this stream covering mining equipment related topics in the area of LHD transport, drilling and longwall operation, as well as underground communications and new digital technologies in mine safety, as well as product quality optimisation.

Speakers from the Kola Science Centre of the Russian Academy of Sciences (Breakline and breakdown surfaces modelling in the design of large-scale blasts), Komatsu Mining (The Digital Mine eco-system), Tunnel Radio (Hybrid 5G Fibre Optic/Leaky Feeder Communication System) and Epiroc (Monitoring of a stoping operation, digital transformation in practice) are set to present papers

Emerging technologies and robotics in mining

Under this topic, there are a number of sessions with almost 10 papers covering the use of unmanned aerial vehicles (UAV) in mining, the benefits of upcoming technology in robotics, mechatronics and communications, as well as the changes in machine design through digital transformation, APCOM said. Also a completely new transport system is presented in this stream.

Papers in this stream include: More Safety in Underground Mining with IoT and Autonomous Robots (TU Bergakademie Freiberg, Institute of Mining and Special Civil Engineering), Application of UAV imaging and photogrammetry for high-resolution modelling of open pit geometry and slope stability monitoring (Department of Mining and Metallurgical Engineering, University of Nevada, Reno) and The concept of walking robot for mining industry (Faculty of Mechanical Engineering, Wroclaw University of Science and Technology).

Synergies from other industries

A plenary speech from an active airline captain will lead this session, talking about the impact of human-machine interfaces on decision-making of automated equipment and in control centres, APCOM said. Other papers will be on the transferability of building information modelling from commercial construction to mining.

A paper from MT-Silesia Sp zoo called: From machine construction to mechatronic system design: Digital Transformation is changing the way of thinking! is included. There are also talks from MobileTronics GmbH’s George Biro on, Rethinking mining transport: Trackless trains for mass transport in mining and KGHM Polska Miedeź’s Mariusz Sangórski presenting, Energy Management System Maturity Model – Systematic Approach to Gain Knowledge about Organization’s Real Engagement in Energy Efficiency Area.

The conference takes place at the convention centre of the Wroclaw University of Technology and is accompanied by an exhibition, APCOM said. A social programme, conference dinner with entertainment and partner activities are available as well as field trips on June 7.

“A post-conference hike in the Karkonosze Mountains is offered from June 8-10, with overnight stays in two microbreweries on the ridge, is a relaxing finish to the technical discussions of the week,” APCOM said.

All presentations are to be held in English. Simultaneous translation to Polish is provided if requested by a sufficient number of participants.

International Mining is a media partner for APCOM 2019.

AngloGold Ashanti blasts off at Obuasi Redevelopment project

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AngloGold Ashanti says the first week of underground development blasting has been completed at its Obuasi Redevelopment project in Ghana, as work to pour first gold by the end of the year gathers momentum.

The first blast, at about 7 pm on February 1, advanced development by around 4.2 m on the 2,700 level, which is accessed through the Obuasi Deeps decline from surface and is just over 700 m vertically below the decline portal, the company said. Benching and a number of additional face blasts have taken place since, with more than 14 m of advance recorded.

AngloGold Ashanti announced early last year it would invest $495-$545 million to recapitalise the iconic mine in Ghana, to develop its 6 Moz of high-grade reserve. The project will see Obuasi transformed into a modern, mechanised mine that will produce, on average, 350,000-400,000 oz/y of gold at all-in sustaining costs of $725-825/oz during the mine’s first decade of operation, according to AngloGold. Higher grades in the second decade of operation will see production improve further, it added.

AngloGold Ashanti, Chief Executive Officer, Kelvin Dushnisky, said: “The first blast was a significant milestone in transforming this important mine into a modern, productive operation. Our investment in Obuasi gold mine’s redevelopment will ultimately make this a key asset for Ghana, and for AngloGold Ashanti’s portfolio, for the long term.”

The project remains on track to produce its first gold by the end of this year, with ramp-up expected during 2020.

AngloGold Ashanti says it has committed to ensuring significant local content in the mine’s development and operation, through employment at all levels and procurement, notably through the creation of a joint venture between Australia’s AUMS and Ghana’s Rocksure, to undertake Ghana’s underground mining contract.

Development of the project is progressing as planned and it is expected that capacity will ramp up to around 1 km/mth of linear advancement in the second half of the year. Stoping operations are expected to start in the December quarter of this year as new production areas are accessed.

Capital Drilling wins one-year extension at AngloGold’s Geita mine

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Capital Drilling will continue underground exploration and underground grade control drilling services at AngloGold Ashanti’s Geita gold mine in Tanzania after the two companies agreed a one-year contract extension.

The contract extension will commence in January and use the existing underground drill rig fleet, currently located on site.

The underground drilling services represent a sub contract of the comprehensive drilling services contract with Geita, which encompasses blasthole, grade control, delineation, exploration and underground drilling. The master contract is a five-year contract running to December 2020, with Capital Drilling having commenced drilling operations at the Geita gold mine in 2006.

Jamie Boyton, Executive Chairman of Capital Drilling, said: “The experience Capital Drilling has gained at the Geita gold mine over the past 13 years underpins our strategy of targeting Tier 1 long-life assets with quality operators. We continue to deliver excellent operational results for AngloGold Ashanti and are pleased to have the extension of the underground drilling contract for a further year.”

Geita, a multiple open-pit and undergoing operation 120 km from Mwanza, produced 539,000 oz of gold at an all-in sustaining cost of $941/oz in 2017.

Capital Drilling provides specialised drilling services to mineral exploration and mining companies in emerging and developing markets, for exploration, development and production stage projects. The company currently owns and operates a fleet of 91 drilling rigs with established operations in Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Mali, Mauritania and Tanzania.

AUMS wins contract at AngloGold Ashanti’s Obuasi mine in Ghana

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African Underground Mining Services (AUMS) has been awarded a $375 million underground mining services contract at one of West Africa’s oldest mines, Obuasi, in Ghana.

The five-year contract at the AngloGold Ashanti operation will see AUMS team up with Rocksure International, a Ghana-based mining contractor, under a 70:30 joint venture.

AUMS, owned 50:50 by Ausdrill and Barminco Holdings, will provide a full suite of underground mining services at Obuasi, with major capital equipment supplied by AngloGold. Works are expected to commence in the March quarter, with some 550 people due to be employed during the project term.

Blair Sessions, AUMS Chief Operating Officer, said the company was pleased to extend its relationship with AngloGold, adding AUMS and Rocksure would “deliver on this project using modern and efficient mining methods, supporting local suppliers and providing employment and training opportunities to Ghanaians”.

Graham Ehm, AngloGold Executive Vice President – Group Planning and Technical – said the contract award was a major milestone towards recommencing production at Obuasi and delivering on outcomes that would benefit the national, regional and local economies.

Earlier this year, AngloGold said it would spend $450-500 million to redevelop Obuasi into a modern, productive mining operation. The mine had been in limited operating phase since 2014.

Since commencing operations in Ghana eight years ago, AUMS has trained over 1,200 Ghanaians through a range of mining, engineering and apprenticeship programmes, AUMS said. Ausdrill, meanwhile, has a 27-year history in the country through its African Mining Services (AMS) subsidiary.

AUMS and AMS, combined, employ more than 1,800 people in Ghana across five projects. The two businesses have generated around A$2.8 billion ($1.99 billion) of revenue in the country.

Ausdrill is currently in the middle of taking over AUMS JV partner Barminco in a deal that values the latter’s equity at A$271.5 million. Last week, Ausdrill shareholders approved the acquisition, paving the way for the deal to be completed by the end of the month.