Tag Archives: Gilar

Caterpillar, Borusan make historic underground equipment delivery to Anglo Asian Mining in Azerbaijan

Anglo Asian Mining says the Caterpillar mining fleet for its new Gilar mine has now been delivered to the Gedabek mine site, marking the first time Caterpillar underground equipment will be deployed in Azerbaijan.

The equipment will be substantially vendor-financed, and this is the first time Caterpillar will provide this to a customer in Azerbaijan or the wider Caucasus region.

The underground mining fleet comprises three 15-t-payload R1700 underground loaders and two 980UMA wheel loaders with 5.6 cu.m buckets.

Borusan, the authorised regional dealer of Caterpillar equipment, will maintain a stock of spare parts and consumables within Azerbaijan and major parts will be held at Borusan regional centres in Türkiye and Kazakhstan, Anglo Asian says. This will enable efficient aftersales servicing of the machines over their lifetime, which was a major factor in the machine selection process.

The company says: “The underground mining fleet are ‘state-of-the-art’, next-generation machines constructed with safety at their core. They are more powerful and contain many new features compared to their predecessors. The operator environment has been improved and is more comfortable. Many new safety features have been added, including better access points, multiple fire suppression systems and improved visibility and lighting.”

The underground equipment will be used in the company’s new Gilar mine, which is currently under construction and development. On December 11, a maiden JORC (2012) mineral resource estimate was published for the Gilar deposit. This confirmed 6.1 Mt of mineralisation with an average copper grade of 0.88% and 1.30 g/t Au. The in-situ mineral resource is 54,000 t of copper, 255,000 oz of gold and 46,000 t of zinc, according to the company.

The Gilar mine is scheduled to begin production around the middle of 2024 and will be an important source of production, bridging the gap between declining grades at Gedabek’s existing mines and production starting from its much bigger Xarxar and Garadag contract areas.

The total cost of the equipment is $4.6 million. The $3.7 million balance due for the purchase of the equipment will be paid by the end of December 2023 from the group’s existing liquidity resources. It is anticipated that $3.7 million will be refinanced by a vendor financing loan from Caterpillar. Negotiations are continuing with Caterpillar Finance to finalise execution of the loan which is expected to close in the March quarter of 2024.

A ceremony was held on the afternoon of December 11, 2023, to mark the arrival of the equipment at Gedabek. This was attended by the group’s leadership team, Azeri and Turkish representatives from Caterpillar and Borusan, along with representatives from both the central and regional Governments of Azerbaijan. A demonstration was also given of operating one of the machines by remote control.

Anglo Asian bolsters Azerbaijan mining fleet with Epiroc, Cat, Paus and Tunelmak equipment

Anglo Asian Mining says it has placed orders for the major items of equipment required for production from its new Zafar and Gilar mines in Azerbaijan, with a fleet made up of Epiroc drills, Caterpillar loaders and auxiliary machines from the likes of Paus and Tunelmak.

The company has also made progress with the upgrades to its Gedabek flotation plant, it noted.

The equipment for Zafar and Gilar includes an underground fleet from Caterpillar and drilling machinery from Epiroc. The total equipment cost is approximately $10 million, approximately 40% of which will be met from the company’s existing cash reserves with the remaining being funded through vendor financing. The equipment is a significant investment for the company, underpinning its confidence to achieve its stated ambition to transition to mid-tier copper production status, it said.

A day before this announcement, Anglo Asian said it had completed a scoping study for the Zafar underground mine, based on ore production of 700,000 t/y and a 0.5% copper equivalent cutoff grade. Development work and the construction of two portals has also started.

Included in the drilling fleet is an Epiroc Boomer S1 D, three Epiroc T1D jumbos, one Epiroc Simba S7 D and one Epiroc H1354. The Caterpillar machinery includes three 15-t payload R1700 LHDs and two UMA 980 wheel loaders.

Auxiliary units that will complement this fleet include a Paus TSL853 Central articulated steering telescopic swivel loader, two Tunelmak ADROIT 520-2 AH 4×4 hydrostatic basket platforms and one Tunelmak ADROIT 420AH 4×4 articulated hydrostatic shotcrete pump.

Anglo Asian produced 57,618 oz of gold equivalent for the year ended December 31, 2022, but, with the addition of Zafar and Gilar, it has an ambition to become a mid-tier miner producing over 100,000 oz/y of gold equivalent.

An expansion of the flotation plant at Gedabek, the company’s flagship opeation, is underway together with adding a further line to produce zinc concentrate, it said. The total cost of the expansion, which will see it add three new rougher/scavenger cells and four cleaner cells from Maelgwyn Mineral Services, is currently estimated at $3 million which will be paid from the company’s existing cash resources. Contractors have been appointed to supply materials for the new flotation line. Additional contractors will be commissioned to modify the existing building and provide electrical services and control equipment, it added.

The modifications to the flotation plant to increase its capacity have now been broadly completed. The installation of the new flotation line using hydraulic flotation cells will be completed by the end of the year.

Stephen Westhead, Vice President of Anglo Asian, said: “The new equipment will be used to expand the company’s mining and processing operations with the development of two new underground mines this year. The expansion of our flotation plant has been broadly completed, doubling capacity and creating additional processing flexibility. This represents an important step in our medium-term growth ambition to become a mid-tier production miner, and significantly increases our capabilities within copper.”