Tag Archives: Barrick Gold

El Nino arrives early for Premier, Nevada Gold Mines

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Premier Gold Mines says processing of ore has commenced from the El Nino gold mine at the joint venture South Arturo mine, in Nevada, USA.

South Arturo is located in the Carlin Trend, and is a joint venture between Premier (40%) and Nevada Gold Mines (60%), a joint venture company owned by Barrick Gold and Newmont-Goldcorp with Barrick as the operator.

The El Nino mine was developed on-time and on-budget, with ore now being processed ahead of schedule, according to Premier Gold. Production is expected to ramp up in the second half of 2019, with a first gold bar pour having been held on September 26.

Premier said attributable gold production is estimated to meet the high end of its 5,000-10,000 oz guidance for the year and it expects that, owing to the high-grade ore at El Nino, South Arturo will have a positive effect on cash flow for the company.

Ewan Downie, President and CEO of Premier, said: “We are excited to once again realise the benefits of South Arturo, increasing the company’s production profile with an anticipated reduction in overall operating costs. Premier continues to benefit from the stellar performance of our partner, Nevada Gold, and its demonstrated ability to consistently execute on schedule.”

In the second half of 2019, surface and underground drilling will resume in an effort to continue delineating and expanding mineralisation at El Nino. El Nino is a high-grade underground deposit situated down plunge of the Phase 2 pit, where mining was concluded in 2017. Pre-stripping of the Phase 1 open-pit project, a second mine being constructed at South Arturo, is ongoing with a target of production in the second half of 2020. Work is also continuing to optimise heap leach material with a potential future decision to proceed with the development of a heap leach facility on the property, the company said.

Surface haulage automation is being tested out at South Arturo, where ASI Mining has successfully completed a proof of concept (POC) utilising five haulage units “that have delivered over 5.5 Mt faster than any other similar POC in the industry”, Barrick Gold said last month.

Battle for greenfield mining autonomy

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The big two global giants in autonomous mining truck solutions continue to battle it out in chasing new contracts, especially for greenfield mines that offer a chance to supply more profitable “new” autonomous fleets as opposed to retrofitting autonomous capability onto existing fleets.

The main battle grounds remain Australian iron ore in Western Australia’s Pilbara region and Canadian oil sands in the Alberta production hub centred on Fort McMurray, though there are also surface haul truck autonomy trials ongoing in other mine types such as iron ore in other parts of the world, gold, coal and copper.

In iron ore the competition has turned traditional norms on their head.

Rio Tinto, traditionally a Komatsu truck user, announced earlier in 2019 that it had agreed to work together with Caterpillar to create an automated mine operation at the Koodaideri iron ore project, in Western Australia. The agreement will see Cat® and dealer WesTrac supply and support mining machines, automation and enterprise technology systems for the new mine. Rio, in a separate release, said this would see the supply of a fleet of 20 new autonomous 793F trucks.

Then in September, BHP, traditionally a Caterpillar truck user, turned the tables again by announcing that it will deploy 41 new Komatsu 930E-5 ultra-class autonomous haul trucks at its new South Flank iron ore mine in the Pilbara region of Western Australia, commencing in October 2019.

But OEM battles aside, autonomy comes with its own issues. This includes the mine having sufficient network capacity in place but also other practicalities like how it ties in with haul road design and how it affects OTR tyre performance.

This tyre angle is being delved into in some detail by Tony Cutler, Principal at specialist consultancy OTR Global, at the forthcoming inaugural Truck & Shovel Conference from International Mining Events, running 19-20 September in Singapore at the InterContinental, Middle Road.

His talk, “Factoring tyres into autonomous haulage”, will point out that since 2008, over 400 autonomous haul trucks have entered commercial operation on open-pit mines and, while autonomous haulage offers improved productivity, safety and operating cost, he argues that the main constraint to maximising these benefits is tyres. This presentation identifies the limitations associated with tyres – some inherent to the tyres, others to the autonomous systems and operating environments – and suggests solutions.

Cutler will be joined in an autonomy related session by Drew Larsen, Director of Business Development, ASI Mining, in a presentation titled: ‘Autonomous Mining – more feasible than you might think’.

The company, 34% owned by global mining OEM Epiroc, began work on a project with Barrick Gold to retrofit and automate a fleet of Komatsu 930-E Ultra Class haul trucks at the Arturo joint venture operation in Nevada, last year, and judging from Barrick’s commentary in its June quarter results, the gold miner is happy with how things are going.

Interestingly, Barrick said initially none of the OEMs wanted to engage in the project, “due to the mammoth task of retrofitting an autonomous system to a 20-year-old fleet of ultra-class trucks and the technological limitations that come with that age of machine”.

Barrick found another partner in ASI that specialises in autonomous solutions both inside and outside the mining industry and has now successfully completed a proof of concept (POC) utilising five haulage units “that have delivered over 5.5 Mt faster than any other similar POC in the industry”, it said.

These autonomous solutions require a lot of data to be effective and while there are no shortages of nodes on equipment nowadays, the haulage and loading industry is still coming to terms with how best to leverage this data.

Speakers from Komatsu will be confronting this issue head on at the event, with Jason Knuth, Senior Manager – Data Solutions, and Simon Van Wegen, Product Manager – Data Solutions, presenting a keynote titled, “Data-driven designs for dynamic mining environments”.

The two intend to reveal how OEMs are leveraging the plethora of data nodes on smart equipment to adapt equipment and design solutions for the modern mine environment.

To hear from more speakers like this, register for Truck & Shovel by clicking here.

Swick Mining continues drilling wins at home and abroad

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Swick Mining Services is celebrating a hat-trick of contract drilling wins with the Barrick Gold and Newmont Goldcorp-owned Nevada Gold Mines JV, Silver Lake Resources and Northern Star Resources.

The Australia-listed contractor has been awarded a three-year contract extension at the Nevada Gold Mines JV, with the company’s US division extending a relationship that started in 2013. The work with Silver Lake Resources involved being selected as the preferred tenderer, subject to contract execution, to provide underground diamond coring services at its Mount Monger operation, in Western Australia. And, lastly, Northern Star Resources has increased the scope of work for Swick at the Jundee gold mine, also in Western Australia, from nine to 14 full time underground diamond coring rigs.

The awards secure work for 18 rigs (eight existing and 10 additional rigs) and increases Swick’s contracted work in hand to A$353 million ($248 million), the company said.

Swick Managing Director, Kent Swick, said: “We are delighted to be deepening our relationships with existing clients and, in the case of the new work with Silver Lake, returning to a project where we have extensive experience.”

He added: “It is particularly pleasing that our international strategy is yielding significant results, with a third of our total deployed underground diamond drilling rigs now operating outside of Australia. By the end of September, we will have at least 22 rigs operating in our international operations including the USA, Portugal and Spain – all at major mines with Tier One clients.”

In Nevada with the Nevada Gold Mines JV, Swick currently operates eight rigs between the Turquoise Ridge and Cortez Hill gold mines as well as the Goldrush project, it said. As part of the contract extension, Swick will be deploying two additional rigs to these operations.

Swick undertakes underground diamond core drilling and underground RC drilling at the projects, with the contract extension securing work for 10 rigs at fixed pricing for two years, with a rise and fall applicable for the third year. In total, the Nevada Gold Mines JV produced in excess of 4 Moz of gold in 2018, more than double the next largest gold mining complex.

The contract extension, combined with the contract recently awarded to Swick at the Northern Star-owned Pogo gold mine in Alaska, will see Swick take a leading position in the US underground drilling market, it said, adding that the first four underground rigs at Pogo commenced drilling in June.

The Silver Lake Mount Monger contract is expected to be for a period of two years with a provision for a 12-month extension, Swick said. The contract will commence in August, with three rigs undertaking drilling across the Mount Monger site, namely the Daisy Milano, Cock-eyed Bob and Maxwell’s underground mines.

Swick says it worked at the Daisy Milano project for a decade from 2007 before it was awarded to another contractor in 2016. The Mount Monger operations produced 35,172 oz of gold in the March quarter.

At Jundee, meanwhile, Swick says it will steadily increase its fleet and manning from July to October to meet the increased scope. Northern Star is Swick’s largest client – with the Jundee contract Swick’s largest ever project – and will operate this expanded service under the current contract agreement.

Kent Swick said: “Once we reach 14 full time rigs at Jundee, it will represent a record number of rigs that Swick has had at any one mine, and the largest Australian underground diamond drilling program I am aware of since we have been in the underground contracting business for over 20 years.”

Barrick and Newmont Goldcorp launch Nevada Gold Mines

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Barrick Gold and Newmont Goldcorp have officially launched their Nevada Gold Mines LLC joint venture, just over three months since the two signed an implemtentation agreement.

The new JV, owned 61.5% and operated by Barrick, and owned 38.5% by Newmont Goldcorp, will rank as the largest global gold producing complex by a “wide margin”, according to Barrick, with three of the world’s top 10 Tier One gold assets (Goldstrike/Carlin, Cortez and Turquoise Ridge/Twin Creeks) and potentially another one in the making (Goldrush), the company said.

Nevada Gold Mines’ assets in north-eastern Nevada comprise 10 underground and 12 open-pit mines, two autoclave facilities, two roasting facilities, four oxide mills, a flotation plant and five heap leach facilities. In 2018, these operations produced a total of 4.1 Moz of gold, approximately double that of the industry’s next largest gold mine (Muruntau, in Uzbekistan).

The company has a reserve and resource base with proven and probable reserves of 48.3 Moz; measured and indicated resources of 27.4 Moz; and a further 7.5 Moz of inferred resources with still more potential, Barrick said.

Nevada Gold Mines is targeting production of between 1.8-1.9 Moz at a preliminary estimated cost of sales of $940-970/oz and all-in sustaining cost of $920-950/oz for the second half of 2019.

Barrick President and Chief Executive Officer, Mark Bristow, who is chairman of the new company, says the establishment of Nevada Gold Mines was designed to combine, arguably, the industry’s best assets and people in order to deliver the best value to stakeholders.

“Its creation was driven by a compelling logic which had long been evident to all but had been elusive for two decades until we finally achieved a breakthrough this year,” Bristow said.

“Over the past months, we have selected and set Nevada Gold Mines’ leadership in place. The company now has one team that shares one vision, and who are more than ready to race out of the starting blocks. We have also identified the very significant synergy opportunities which are immediately available and those which have been targeted for the future.”

Gary Goldberg, Newmont Goldcorp’s Chief Executive Officer, said: “This innovative joint venture represents a unique opportunity to generate additional long-term value for our shareholders, employees, and the communities of northern Nevada. By combining our assets and talent in Nevada, the joint venture will extend safe, profitable and responsible production much further than what each company could have done on its own. We look forward to actively participating in and supporting the JV to deliver a positive step-change in results.”

Identified synergies are expected to deliver up to $500 million/y over the first five years from 2020, stepping down over time after that. These will come mainly from integrated mine planning, optimised mining and processing, cost reductions and the combination of the adjacent Turquoise Ridge and Twin Creeks, which will be operated as a single mine.

Barrick said: “Second half guidance builds in those synergies that the company believes it should be able to realise within the next six months, representing approximately half of the targeted annual cash flow improvements. With the closing of the JV now complete, the company will look to incorporate further synergies to benefit 2020 and beyond.”

The future benefits include longer profitable mine lives, longer-term employment opportunities, longer-term benefit-sharing with local communities and longer-term advantages for Nevada’s economy, according to Barrick.

Bristow noted that the Nevada Gold Mines management team included executives from both joint venture partners. The Executive Managing Director is Greg Walker, formerly Head of Operations and Technical Excellence for Barrick’s North American region. Barrick has three board seats and Newmont Goldcorp two, with the board supported by technical, finance and exploration advisory committees on which both companies have equal representation.

Second Sandvik roadheader heading to Turquoise Ridge gold mine

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The transition of Barrick Gold and Newmont Mining’s Turquoise Ridge gold mine (owned 75:25) in Nevada, US, to a Tier One operation is tracking to plan, the Canada-based miner said recently, with the Sandvik MR361 roadheader it took delivery of back in 2017 continuing to prove its worth.

Barrick said in its December quarter results that it is looking to increase production and resources at Turquoise Ridge through mechanisation, automation, and innovation.

The ramp up of the roadheader over 2018 improved safety, increased throughput, and dropped mining costs per tonne, the company said in its results statement. This has led to Barrick ordering a second roadheader, manufactured by Sandvik, which will be delivered to the operation later this year. On top of this, Barrick said it is evaluating the opportunity associated with increasing the level of mechanisation and automation for the operation.

Barrick already has extensive experience using Sandvik roadheaders, with the company having employed a MH620 unit at its Cortez gold mine, also in Nevada, US. Weighing 125 t and driven by a 300-kW cutting motor, the MH620 cutting the Range Front declines at Cortez is one of the world’s largest roadheaders.

Construction of a third shaft at Turquoise Ridge continues to advance according to schedule and within budget, Barrick said in the results statement, with efforts in 2019 focused on earthworks and shaft sinking.

“The construction of this shaft is expected to increase annual production to more than 500,000 oz/y (100% basis), at an average cost of sales of around $720/oz, and average all-in sustaining costs of roughly $630/oz,” Barrick said.

“As of December 31, we have spent $62 million (including $3 million in the December quarter of 2018) out of a total estimated capital cost of $300-$325 million (100% basis) on the construction of this shaft.”

Initial production from the new shaft is expected to begin in 2022, with sustained production from 2023.

Since the end of 2015, reserves at Turquoise Ridge have increased by 3.5 Moz (100% basis), primarily through driving down mining costs per tonne, which has allowed for a lower cutoff grade, thereby optimising the way the orebody is mined.

“The focus in 2019 is to realise the potential to further grow reserves, extend mine life, and grow production over and above the current mine plan, through reducing costs to further lower the cutoff grade, as well as extending mineralisation at depth,” Barrick said.

Barrick and Newmont agree on Nevada gold joint venture

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Barrick Gold and Newmont Mining have signed an implementation agreement that should see the two companies’ Nevada mining operations, assets, reserves, and talent combine under a joint venture.

The joint venture will, according to the two companies, allow them to capture an estimated $500 million in average annual pre-tax synergies in the first five full years of the combination, which is projected to total $5 billion pre-tax net present value over a 20-year period.

“The joint venture is an historic accord between the two gold mining companies, which have operated independently in Nevada for decades, but have previously been unable to agree terms for cooperation,” they said.

Barrick Gold had previously made an offer to take over Newmont, which itself is in the middle of trying to complete the acquisition of fellow gold miner Goldcorp. The company has agreed to withdraw this offer, in addition to proposals for the Newmont annual general meeting that it submitted on February 22. These included, according to Newmont, an amendment to Newmont’s by-laws to lower the share ownership threshold necessary to requisition shareholder meetings to 15% from the current 25% and to repeal all by-law amendments implemented since October 24, 2018.

Barrick President and Chief Executive Officer, Mark Bristow, said the Nevada agreement marked the successful culmination of a deal that had been more than 20 years in the making. “We listened to our shareholders and agreed with them that this was the best way to realise the enormous potential of the Nevada goldfields’ unequalled mineral endowment, and to maximise the returns from our operations there.

“We are finally taking down the fences to operate Nevada as a single entity in order to deliver full value to both sets of shareholders, as well as to all our stakeholders in the state, by securing the long-term future of gold mining in Nevada.”

Gary Goldberg, Chief Executive Officer of Newmont, said the logic of combining the two companies’ operations was compelling. “This agreement represents an innovative and effective way to generate long-term value from our joint assets in Nevada, and represents an important step forward in expanding value creation for our shareholders. Through the joint venture, we will also continue to pursue the highest standards in safety, along with responsible and meaningful engagement with our employees, communities, and other stakeholders,” he said.

Following the completion of the joint venture, the Nevada complex will be the world’s single-largest gold producer, with a pro-forma output of more than 4 Moz in 2018, three Tier One assets, potentially another one in the making, and 48 Moz of reserves.

The establishment of the joint venture is subject to the usual conditions, including regulatory approvals, and is expected to be completed in the coming months.

The joint venture will exclude Barrick’s Fourmile project and Newmont’s Fiberline and Mike deposits, pending the determination of their commercial feasibility.

Renewable energy use can bring savings to Africa mining sector, report claims

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THEnergy and Voltalia’s latest report on the use of renewable energy in the Africa mining sector says the industry can realise significant cost savings when employing these power solutions.

The authors said the mining sector has shifted from phase one – where the focus of renewable power adoption was on integrating and testing out the reliability of these solutions – to phase two – where potential cost savings are being considered.

“In the last few years, more and more mining companies have adopted wind and solar systems to reduce their energy costs at remote off-grid mines,” THEnergy and Voltalia said. “In this first phase, the initial focus was on the integration capabilities as miners were afraid that adding intermittent renewables such as solar and wind could affect the reliability of power supply and even lead to production losses.”

In various microgrid applications, renewables combined with diesel, heavy fuel oil (HFO), or gas have proven to provide reliable power supply to remote mines, according to the two firms.

“For almost all mines, the integration of renewables will have a positive impact on their energy cost position. Mining companies do not have to invest their own money; independent power providers (IPPs) invest in the renewable energy infrastructure and sell electricity to mines through power purchase agreements (PPAs),” THEnergy and Voltalia explained.

Thomas Hillig, Managing Director of THEnergy, a consultancy focused on microgrids/mini-grids and off-grid renewable energy, said this second market phase is characterised by price competition.

“With the support of a leading renewable energy player, the new report analyses how IPPs can offer extremely competitive PPAs to remote miners,” he said.

Large IPPs take advantage of economies of scale on components for solar and wind power plants not only for remote mining projects but also for much bigger grid-connected plants, the two firms said.

“Market leaders have managed to optimise the planning and construction processes substantially. However, conducting projects in remote locations, especially in Africa, requires an extended experience,” they added. Among the challenges of undertaking projects in Africa is financing, which requires relationships with local and international banks, according to THEnergy and Voltalia.

“Cost optimisation does not necessarily mean minimising capital expenditure but rather focusing on the total lifetime of the project and including operation and maintenance. It is also important to take the interplay of the different energy sources into consideration. Not every kWh of solar and wind energy generated means equivalent fossil fuel savings. When gensets run at suboptimal loads, they lose efficiency and require additional maintenance,” the two firms said.

Alexis Goybet, Head of Hybrid Solutions at Voltalia, a player in the renewable energy sector, said his company has much experience in renewable energy projects, including solar-diesel hybrid microgrids, projects in remote locations and in developing countries.

“Our experience adds up to our economies of scale in procurement and translates into significant overall cost-reductions in the range of 20-30% in comparison to new market entrants,” he said.

These overall cost reductions will make solar and wind energy extremely attractive for many mines, according to the two firms, with the number of remote mines adding renewables to diesel, HFO or gas expected to grow quickly all over Africa.

There are already several mining companies that have made – or are planning to make – this transition in Africa, as can be seen by the map above (credit: THEnergy, Voltalia). This includes Resolute Mining and its Syama underground gold mine in Mali, Newmont Mining and its Akyem gold mine in Ghana and B2Gold and its Otjikoto operation in Namibia.

In the past month alone, Barrick Gold and GoviEx Uranium have also stated plans to use hybrid solutions at their Loulo and Madaouela assets, respectively.

Barrick’s Loulo gold operation readies for introduction of off-grid solar hybrid plant

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Barrick Gold is to install a 24 MW off-grid solar hybrid plant to support its existing 63 MW thermal power station at the Loulo mine in Mali as it looks to cut costs and reduce greenhouse gas emissions at the operation.

The renewable energy project is part of Barrick’s wider strategy of moving away from thermal power in Africa, where lack of infrastructure means many mines rely on self-generated diesel energy, making this their largest cost item, the company said.

“Utilising hydropower in the Democratic Republic of Congo, grid power in Côte d’Ivoire, and heavy-fuel baseload generators in Mali, Barrick has already cut its energy costs significantly, and the continuing roll-out of renewable energy sources will ensure that its future needs are met in the most cost-efficient and environmentally friendly manner,” Barrick said.

The solar feasibility study at Loulo forecasted that the photovoltaic plant will replace 50,000 MWh/y of thermal generation, saving 10 million litres/y of fuel and reducing CO² emissions by 42,000 t over the same period. The introduction of the solar component is also expected to cut the complex’s energy cost by around 2 cents/kWh.

Construction of the project—which meets Barrick’s investment criteria of generating at least a 20% internal rate of return—will start later this year. The plant is scheduled for commissioning in late 2020.

“The plant will use the latest weather prediction models, which will enable the power management system to switch between thermal and solar without compromising the micro-grid,” Barrick said.

Barrick’s 80%-owned Loulo-Gounkoto operation is expected to produce 520,000-570,000 oz of gold in 2019 at all-in sustaining costs of $810-850/oz.

Barrick working with Sandvik on autonomous and manned equipment interaction

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Barrick Gold says it is advancing autonomous production systems and projects as it looks to become the global leader in mining efficiency.

President and CEO Mark Bristow said in the company’s 2018 financial results that to achieve its goal of being the world’s most valued gold company, in a rapidly evolving environment where the industry’s shift to developing countries will continue, Barrick will have to be at the leading edge of automation.

“Kibali, in the Democratic Republic of Congo, is currently at the forefront, with its mission control system which manages the underground ore handling logistics without human intervention from the surface, but across Barrick there are many automated operations and developments which are now being unified in a group strategy,” he said.

These include, Barrick said, underground drills that can be run from surface during shift changes; automated underground and open-pit haulage trucks; fully-autonomous backfill systems; remote-controlled open-pit drills; and autonomous drilling of development and production blastholes by multiple units controlled by a single remote operator.

Glenn Heard, Senior Vice President Mining, said ongoing projects currently cover five main areas: underground development and production drilling, production and haulage, and open-pit haulage and production.

“At present, all our systems have barriers which prevent human access to the autonomous operating zones. Our next big step will be to create a situation where autonomous and manned units can work together seamlessly within the same active areas, and we’re working with Sandvik and other providers to achieve this,” he said.

Barrick Gold to sell AuTec R&D division, WSJ says

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Barrick Gold is said to be selling research and development company AuTec as part of a new strategy tied to the upcoming merger with Randgold Resources.

The Wall Street Journal, citing people familiar with the matter, said one of the first assets to go as part of a plan to offload non-core assets, reduce costs and reduce management head count, devised by incoming CEO Mark Bristow, would be AuTec, a full-service metallurgical testing lab and piloting facility, serving the mining industry.

The news comes soon after the company eliminated the executive role of Chief Innovation Officer, a post previously held by Michelle Ash.

Barrick is in the middle of merging with Bristow’s Randgold in a deal that would solidify Barrick’s position as the world’s number one gold miner by production.

AuTec has previously carried out metallurgical test work at Barrick’s Pueblo Viejo, Golden Sunlight and Goldstrike mines, among others. it has capabilities tied to mineral analysis, comminution, environmental and cyanide detox, hydrometallurgy, mineralogy and mineral processing, among others.