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Maximising the benefits of sensor-based ore sorting machines

Base metals, Comminution of minerals, Environmental, Mine operation news, Mineral processing, Mineral project development, Mining services, Power supply for mines, Precious metals, Sustainable mining, Water management, , , , , , , , , , , , , , , , , , , , , , , ,

Ore sorting has been shown to provide both economic and environmental benefits, but many mines are not yet fully utilising this technology, according to HPY Technology.

Yet, the company’s ore sorting machines are providing a breakthrough solution for Fankou, one of Asia’s largest lead and zinc mines, resulting in an annual revenue increase of around $9.22 million.

Located in Renhua County, Shaoguan City, Guangdong Province, Fankou is owned by Shenzhen Zhongjin Lingnan Nonfemet Co Ltd. The mine has been producing lead and zinc for over 60 years. However, with new underground mining processes, such as vertical crater retreat and large blasting, more waste rock is being introduced into the crushing, grinding and flotation processes, resulting in higher production costs and energy consumption.

Furthermore, under the “zero waste” target set by the Environmental Protection Law of China, Fankou’s tailings pond needs to be closed by 2025. As of 2018, the mine’s annual processing capacity was 1.5 Mt, with 600,000 t ending up in the tailings pond. In addition, Fankou’s waste rock piles had reached approximately 2 Mt. With the continuous addition of around 200,000 t/y of waste rock, these piles grew larger. With the pressure to meet the zero waste target, Fankou was under pressure to make a change.

In 2017, Fankou conducted exploratory tests of sensor-based ore sorting machines with Ganzhou HPY Technology Co Ltd. The result of the initial tests showed promise and addressed the problems the mine was beginning to face, according to HPY Technology. As a result, Fankou decided to add HPY Technology’s ore sorting machines to the industrial design plan of their mineral processing plant in 2018, and HPY Technology’s machines were officially added to the plant in 2019.

The Fankou lead-zinc mine currently produces about 1.4 Mt/y of ore, and it is expected that more than 105,000 t of waste rock will be pre-rejected from the raw ore throughout the year. Ore sorting technology can discard a large amount of waste rock from the raw ore before it is fed into the flotation system, reducing the amount of waste rock entering the mill and saving on electricity costs.

Fankou’s mineral processing plant uses four Classic Series P60-X1400 ore sorting machines. The machine processes the particle size range of +12-90 mm, which accounts for about 50% of the raw ore. This accounts for 2,600 t of ore, rejecting 400-500 t/d of waste rock. After pre-concentration, the lead and zinc content in the waste rock are below 0.3%, and the sulphur and iron content is below 3.8%. Therefore, the ore sorting process enriches the ore grade by 1.08% for lead and zinc and 2% for sulphur and iron.

Four Classic Series P60-X1400 ore sorters in Fankou’s mineral processing plant

After sorting the waste rock from the raw ore, this waste rock can be sold as construction aggregate to bring further economic benefits to the Fankou mine. This has also seen the amount of tailings decrease and the service life of the tailings pond extend significantly, resulting in remarkable energy savings and consumption performance, while also enhancing the mine’s societal value, HPY Technology says.

Mr Wang, Project Manager of Fankou Mineral Processing Plant, said: “We are proud to be one of the world’s first lead and zinc mines to utilise ore sorting fully. We see significant economic benefits for using HPY Technology’s ore sorting machine, especially for low-grade mines. China has huge lead and zinc ore reserves, the second largest in the world. But the grade of the deposits is generally low, with many poor and few rich ores. The average grade is about 1.5% for lead and 2.5% for zinc. Reserves with a grade below 5% account for more than 90% of lead ore, and reserves below 8% account for more than 85% of zinc ore. We hope to continue contributing to the mining industry’s progress and are willing to recommend HPY Technology’s ore sorting machine to our peers.”

The Classic Series used in Fankou’s mineral processing plant is a benchmark in the ore sorting industry, according to HPY Technology. This machine uses dual-energy X-ray technology, combined with high-speed air jets to sort ore from waste rock. The X-ray technology penetrates the ore and creates a grayscale image that distinguishes between target and vein minerals. This image is then processed by an artificial intelligence algorithm, which uses the information to accurately sort the ore and waste rock. The Classic Series has undergone numerous iterations, ensuring stable and efficient operation, HPY Technology says. It is currently the most widely used ore sorting machine in China’s mining industry, according to the company.

Fankou Lead-Zinc mine, mineral processing plant

HPY Technology | Fankou lead-zinc mine, mineral processing plant
Machine used Four Classic Series P60-X1400
Processing capacity 2,600 t/d
Particle size +12-90 mm
Concentrated ore grade (Pb+Zn) 12%
Waste rock grade (Pb+Zn) <0.3%
Grinding grade (Pb+Zn) increased by 1.08%
Rejection rate 16-17%

Fankou’s mineral processing plant can save more than $2.9 million/y by using HPY Technology’s ore sorting machines, resulting in an annual profit margin of more than $7.8 million, considering the comprehensive benefits of increased plant capacity, tailings reduction and construction aggregate sales.

In addition to the four Classic Series P60-X1400 in the mineral processing plant, the Construction Materials Plant has three HPY Technology ore sorting machines to process the waste rock from the mineral processing plant and its existing waste rock piles. The waste rock is taken to the construction material plant for another round of sorting, with the remaining waste rock being used for construction aggregates. The three machines at the construction materials plant also process the 2 million cu.m of waste rock initially stockpiled in the tailings pond.

Mr Luo, Project Manager of Solid Waste Treatment, said: “In the past, we could only transport solid waste back to the shaft for filling. After using HPY’s ore sorting machines, we can now sort out all the ore from solid waste and recover the value of the resources. The remaining waste rock can be sold as construction aggregates, which is a win-win solution. Currently, we are also sorting waste rock that was stored before using HPY’s ore sorting machines. The ore grade is about 3%. Sensor-based sorting technology enriches the ore grade to 12-14%. Sorting results show that the rejection rate exceeds 95%. In the global mining industry, Fankou is one the first to successfully apply intelligent ore sorting technology in lead and zinc mines, achieving maximum resource value recovery and is great for the environment.”

According to Mr Luo, waste rock that was initially made into construction aggregates now yields more than 1,500 t/y of lead and zinc metal, which has been able to be recovered through the Construction Materials Plant. In addition, the ore sorting process reduces the waste rock’s sulphur content. This substantially improves the grade of the construction aggregates, increasing its sales price. As a result, the waste rock made into construction aggregates generates about $977,000/y in economic benefits. In addition, the recovered ore generates over $2.8 million/y in benefits.

Fankou has utilised sensor-based ore sorting to its full extent, HPY Technology says, using it during the comminution process to pre-reject waste rock to increase its lead-zinc ore grade. The company also sees benefits from pre-rejected waste rock in reduced costs in its grinding process. With pressure to control the amount of tailings, the pre-rejected waste rock lowers the amount of tailings entering the tailings pond to help the company in its aim of closing the tailings pond in 2025. In addition, sensor-based ore sorting has allowed the company to gain additional revenue through the recovery of lead-zinc from their waste rock piles, while also utilising these piles for construction aggregates. Overall, the introduction of ore sorting has allowed the company to expand its resource recovery. By pre-rejecting and enriching low ore grades, Fankou can now mine areas previously deemed un-mineable due to having low grade ore, allowing them to increase the processing capacity each year.

Fankou lead-zinc mine, Construction Materials Plant

HPY Technology | Fankou lead-zinc mine, Construction Materials Plant
Machine used One Insight Series | Two Classic Series
Concentrated ore grade 12-14%
Waste rock grade Pb 0.04%, Zn 0.10%
Concentrate recovery rate Pb 96.76%, Zn 92.8%
Rejection rate 95%
Enrichment ratio Pb 9.68, Zn 9.28
Particle size +10-50 mm

The Insight Series used in Fankou’s Construction Materials Plant adopts a combined detection method comprised of a VIS HD dual-sided imaging system and X-ray technology, which can be customised according to the physical characteristics of different ores. The machine can collect the ore’s internal and external information simultaneously and with an AI algorithm, which can significantly improve the accuracy of ore sorting and better for sorting complex ores.

Compared with traditional ore sorting machines, which use a belt, the upgraded Insight Series utilises a vibrating feeder and short belt that leads to ore free fall, HPY Technology says. With the optimised mechanical design, the ore falls more evenly, avoiding ore overlap that affects recognition accuracy. In addition, the machine has various feeding widths (1,600 mm, 3,200 mm), which leads to processing capacities of 40-150 t/h (+10 mm-80 mm) to meet the needs of different mines needs during the beneficiation process.

As one of Asia’s largest lead and zinc mines, Fankou has taken steps to maximise the economic value of its process. Through the utilisation of sensor-based ore sorting, the company has seen significant increases in revenue and savings. Having worked with HPY Technology for over five years, Fankou looks to continue this partnership to further the research on the benefits of ore sorting machines. As HPY Technology continues innovating and revolutionising mineral processing, the benefits will only continue to grow, it says.

HPY Technology Co Ltd says it is a leader in the development and manufacture of ore sorting machinery, achieving excellent results in the ore sorting of tungsten, tin, antimony, lead, zinc, copper, molybdenum, gold, phosphate and over 30 other ore types, revolutionising the traditional mineral processing process and significantly promoting the technological progress of the global mining industry. With over 400 machines in use in over 100 mines, the company says it looks to continue revolutionising mineral processing.

Barminco wins A$90 million contract extension at Newcrest’s Red Chris mine

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Perenti subsidiary, Barminco, says it has been awarded a 12-month contract extension at Newcrest Mining’s Red Chris mine in British Columbia, Canada.

Since June 2021, Barminco has continued to progress the development of an underground exploration decline, an essential first stage of works that will provide a platform for future underground exploration activities, and which may also be used to support access to potential block cave workings.

This contract extension enables Barminco to continue underground development works and is expected to deliver approximately A$90 million ($60.4 million) of revenue over the 12-month contract term.

Mark Norwell, Managing Director and CEO of Perenti, said, “Our strategy in North America is to partner with Tier-One operators and long-life assets, where we can add value over the long term. We continue to diligently progress our North American growth strategy and have key executive management personnel based in the region to ensure we develop the right relationships and become engrained within the sector while remaining disciplined in the execution of our strategy.”

Paul Muller, President of Contract Mining, said: “Since mid-2021 our team in North America has worked closely with the Red Chris JV as it transforms the mine into a long life, tier-one underground operation. We have developed very strong relationships with the local communities including a partnership with the Tahltan Nation Development Corporation and are very pleased to be on site at Red Chris for at least the next 12 months.”

An October 2021 prefeasibility study on the Red Chris block cave outlined an initial reserve estimate of 8.1 Moz of gold and 2.2 Mt of copper, with average annual gold production of 158,000 oz and copper production of 48,500 t over the 31-year life of mine.

Eldorado Gold to electrify haulage at Lamaque with Sandvik TH550B BEVs

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Eldorado Gold is looking to take its next mobile equipment electrification step, with the company set to receive its first battery-electric truck in June for use at the Lamaque underground mine in Quebec, Canada.

The Vancouver-headquartered company has already trialled a battery-electric Normet SmartDrive concrete transportation vehicle at its Efemçukuru gold mine, in Türkiye, as part of a wider group remit to mitigate greenhouse gas emissions (GHG) by 30%, from 2020 levels, by 2030 on a ‘business as usual’ basis; equal to approximately 65,000 t of carbon dioxide equivalent.

Now the company is moving from this electric utility vehicle trial to acquiring two battery-electric trucks for use at its flagship Canadian mine.

In its recent 2023 guidance, Eldorado said it expected to spend $37-42 million on growth capital at Lamaque this year, including non-sustaining exploration expenditures for resource conversion and resource expansion drilling at the Ormaque and Parallel deposits, tailings management and electric underground trucks.

A spokesperson for the company confirmed the electric underground truck investment relates to the acquisition of two Sandvik TH550B battery-electric trucks.

These 50-t payload battery-powered trucks combine Sandvik’s 50 years of experience in developing loaders and trucks with Artisan™’s innovative electric drivelines and battery packs. The electric drivetrain delivers 560 kW of power and 6,000 Nm of total torque output, allowing for higher ramp speeds for shorter cycle times and an efficient ore moving process, according to the OEM. All of this comes with zero emissions.

These vehicles also come with fast and easy battery AutoSwap and AutoConnect functions that Sandvik has refined for battery swap processes that take only a few minutes.

The Eldorado spokesperson said: “We have purchased two units; the delivery for the first unit is in June and the second one in November 2023. The Lamaque Mine continues to perform as one of the lowest GHG-emitting gold mines in the world because of access to low-emission hydroelectricity in Québec and other site-based energy efficiency projects. Electrification of these underground vehicles has the benefit of reducing diesel usage on our site and, in addition, we can also be certain that we’re not passing on our direct Scope 1 emissions to Scope 2.”

The company’s sustainable focus at Lamaque goes beyond the acquisition of these two Sandvik vehicles.

Lamaque is expected to produce some 170,000-180,000 oz of gold at C1 cash operating costs of $670-$770/oz sold in 2023, the company says

Eldorado has recently eliminated 26 km of surface haulage and rehandling on public roads at Lamaque, reducing GHG emissions. It has also increased the operation’s energy efficiency, cut its ambient noise and reduced surface dust.

Lamaque is expected to produce some 170,000-180,000 oz of gold at C1 cash operating costs of $670-$770/oz sold in 2023, the company says.

Novamera concludes in-field demonstration of surgical mining, backed by Vale and OZ Minerals

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Novamera says it has completed an in-field demonstration of its surgical mining technologies, sponsored by Vale, OZ Minerals and a leading global gold producer, with the results set to be presented shortly.

The in-field demonstration, completed in late 2022, took place in Baie Verte, Newfoundland, and highlighted the technical capabilities of the proprietary guidance tool, the operational impact of real-time data in a production setting and the economic potential of surgical mining, according to Novamera.

Surgical mining, powered by Novamera’s proprietary technology, could unlock trillions in currently uneconomic narrow-vein mineral deposits to meet the increasing demand for metals, while also supporting environmental, social and governance (ESG) targets, the company says.

The Canada Mining Innovation Council (CMIC) has been steering a industry consortium of mining companies to trial Novamera’s near borehole imaging tool at various project sites, including this latest trial.

Novamera’s proprietary hardware and software seamlessly combine with conventional drilling equipment, allowing mining companies to surgically extract deposits while minimising dilution, Novamera explains. Real-time data, machine learning and production analytics drive the ‘surgical mining cycle’ to make extraction of complex, narrow-vein deposits not only viable but highly profitable. A low capital expenditure solution requiring minimal mine development, miners have a flexible, scalable mining method that can help get into ore quickly with small-scale deposits.

Working together with conventional drilling equipment and operations, the solution generates circa-95% less waste and less than half the greenhouse gas emissions of selective mining methods, according to the company. In addition, a closed loop system was created to minimise water discharge and real-time backfilling reduces environmental impact and tailings storage needs.

CMIC CEO, Carl Weatherell, said: “Novamera’s surgical mining solution supports our vision of transforming mining into a zero-waste industry. We are thrilled to be part of this new era of mining innovation that increases safety, efficiency, social licence and environmental stewardship, while providing greater financial returns for the industry.”

Dustin Angelo, CEO of Novamera, said: “The industry needs innovative new solutions. Consortiums and the participation of industry leaders like Vale and OZ Minerals are critical to enabling new technologies to enter the market. Using technology, we can now unlock thousands of smaller-scale deposits and zones within existing mines that were previously uneconomic, allowing the industry to quickly add to production – meeting the rapidly growing global demand for metals.”

Evolution Mining hits production milestone ahead of schedule at Cowal

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Evolution Mining says it has achieved a major milestone in its planned growth of getting the Cowal gold mine in New South Wales, Australia, to circa-320,000 oz in its 2024 financial year, with underground production commencing ahead of schedule.

The first underground stope has commenced being mined and processed this month, with continued ramp up of the underground expected over the remainder of this financial year (to end-June). This is three months ahead of the previously announced original schedule of the June 2023 quarter.

In 2021, the Evolution board and regulators approved the development of the Cowal Underground Mine, which is set to provide a higher-grade ore source that will be blended with the current open-pit operation and stockpile ore.

Perenti’s Barminco underground mining business has been conducting all underground development and production works for the project as part of a A$520 million, four-year agreement signed last year.

The project remains within the original A$380 million ($254 million) budget, according to Evolution, with the completion of the accommodation village and commissioning of the paste plant remaining on track for the June 2023 quarter.

Evolution’s Chief Executive Officer and Managing Director, Lawrie Conway, said: “We have achieved a major milestone at Cowal with the early commencement of production from the new underground mine. It is a credit to the project team to be able to commence production ahead of schedule and on budget in the current inflationary market conditions for project development and construction.

“We are now on the pathway to increase Cowal’s production from the current FY23 guidance of ~275,000 oz to FY24 outlook of circa-320,000 low cost ounces.”

Gold Fields and AngloGold Ashanti agree on deal to create Africa’s largest gold mine

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Gold Fields and AngloGold Ashanti have agreed the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa (pictured above) and AngloGold Ashanti’s neighbouring Iduapriem mines to create what they say will be the largest gold mine in Africa and one of the largest in the world.

The Tarkwa mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem mine is currently 100% owned by AngloGold Ashanti. Both mines are located near the town of Tarkwa in the country’s Western Region.

The parties have agreed in principle on the key terms of the proposed jv and have commenced with preliminary, high-level and constructive engagements with senior government officials in Ghana and will continue engaging with the GoG, relevant regulators and other key stakeholders, with a view to implementing the proposed jv as soon as practically possible. They have also agreed to mutual exclusivity during this engagement.

It is intended that the jv will be an incorporated joint venture, constituted within Gold Fields Ghana and operated by Gold Fields. AngloGold Ashanti will contribute its 100% interest in Iduapriem to Gold Fields Ghana in return for a shareholding in that company.

The companies do not anticipate that any material, additional capital injection will be required by either company to establish the proposed jv, and is expected to materially improve its capital intensity once operational.

Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%, or two-thirds, and AngloGold Ashanti will have an interest of 33.3%, or one-third, in the jv.

The Iduapriem mine is currently 100% owned by AngloGold Ashanti

The companies said: “The proposed jv would create the largest gold mine in Africa and one of the largest in the world. It will be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades.”

Operational synergies will be achieved by optimising mining of the combined orebodies and consolidating the infrastructure of the immediately adjacent mines for the long-term benefit of all shareholders and stakeholders, the companies said.

Martin Preece, Interim CEO of Gold Fields, said: “The proposed jv is an exciting opportunity to combine mining operations that are essentially part of the same mineral deposit and is something that Gold Fields and AngloGold Ashanti have discussed many times before over the years. The ability to optimise mining and the use of shared infrastructure across the combined operation will result in significant flexibility in mine planning, materially enhancing the economics of the mine and ensuring quality and scale of operation that will be world class. That unlocked value will underpin the proposed jv’s continued contribution to our host communities and Ghana for decades to come. For Gold Fields, it will also significantly enhance the overall quality of our portfolio.”

Alberto Calderon, CEO AngloGold Ashanti: “This combination puts together two parts of the same world-class orebody, allowing us to share skills and infrastructure to significantly enhance every aspect of this mining operation, from exploration and planning, to mining and processing. By creating one of the world’s largest open-pit gold operations, in a pre-eminent mining jurisdiction, we will create longer-term value not only for AngloGold Ashanti and Gold Fields, but for the combined stakeholders in our local host communities and for all of Ghana.”

The combined operation comes with an estimated life of at least 18 years, which could increase through an extension and optimisation plan to be considered under the proposed jv over the next three years, and which could also enhance envisaged production and cost parameters.

It would come with estimated average annual production (100% basis) of almost 900,000 oz over the first five years and average annual production in excess of 600,000 oz over the estimated life of operation. All-in sustaining costs (in 2023 terms) were expected to be less than $1,000/oz over the first five years and less than $1,200/oz over the estimated life of operation.

Rio Tinto and Mongolian Government ‘open’ Oyu Tolgoi Underground mine

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The Prime Minister of Mongolia, Luvsannamsrain Oyun-Erdene, today joined Rio Tinto Chief Executive, Jakob Stausholm, 1.3 km underground to celebrate the commencement of underground production from the Oyu Tolgoi copper mine in the Gobi Desert.

This was followed by a ceremony with Oyu Tolgoi employees and leaders, Government of Mongolia representatives, Oyu Tolgoi Board members and local suppliers to mark this milestone towards Oyu Tolgoi ramping up to become one of the world’s leading copper suppliers.

Since the agreement between the Government of Mongolia and Rio Tinto in January 2022 to reset the relationship and move the Oyu Tolgoi underground project forward, 30 drawbells have been blasted and copper is now being produced from the underground mine. Oyu Tolgoi is expected to become the fourth-largest copper mine in the world by 2030, operating in the first quartile of the copper equivalent cost curve, Rio Tinto says. Ore is currently being processed from Panel Zero in Hugo North Lift 1 and production will ramp up over the coming years.

A partnership between Rio Tinto and Mongolia, the Oyu Tolgoi open pit and concentrator have been succesfully operating for over a decade. The total workforce of Oyu Tolgoi is currently around 20,000 people, of which 97% are Mongolian. Oyu Tolgoi works with more than 500 national suppliers and has spent around $15 billion in Mongolia since 2010, including $4 billion of taxes, fees and other payments to the state budget, according to the mining company.

Developing the underground mine is an investment of over $7 billion, unlocking the most valuable part of the copper resource for the benefit of all stakeholders. Oyu Tolgoi is expected to produce around 500,000 t/y of copper on average from 2028 to 2036 from the open pit and underground, enough to produce around 6 million electric vehicles annually, and an average of around 290,000 t over the reserve life of around 30 years.

Oyun-Erdene said: “I am proud to celebrate this major milestone with our partner Rio Tinto as we look towards Mongolia becoming one of the world’s key copper producers. The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia’s ‘New Recovery Policy’ and Vision 2050 economic diversification strategy. Mongolia stands ready to work actively and mutually beneficially with global investors and partners.”

Stausholm said: “We would like to thank the Government of Mongolia for their commitment as our partner in achieving this remarkable milestone. We are starting underground production 1.3 km beneath the remote Gobi desert from an orebody that will be critical for global copper production and Mongolia’s ongoing economic development. The copper produced in this truly world class, high technology mine will help deliver the electrification needed for a net zero future and grow Rio Tinto’s copper business.”

Rio Tinto now has a 66% interest in Oyu Tolgoi LLC, the mine operating company, following its successful completion of the acquisition of Turquoise Hill Resources Ltd; with the Government of Mongolia retaining 34%.

First Quantum and Panama Government agree on draft contract for Cobre Panama

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First Quantum Minerals Ltd and its Panamanian subsidiary, Minera Panamá, S.A. (MPSA), have agreed and finalised the draft of a concession contract with the Government of Panamá related to continuing operations at the Cobre Panamá copper-gold mine.

The Proposed Concession Contract meets the objectives outlined by the Panamanian Government in January 2022 related to government revenues, environmental protections and labour standards, according to FQM. It also provides legal protections necessary to both parties to ensure durability and stability.

The contract is subject to a 30-day public consultation process and approvals by the Panamanian Cabinet, Comptroller General of the Republic and the National Assembly. The Proposed Concession Contract will have an initial 20-year term, with a 20-year extension option and additional extensions for the life of mine.

Additionally, the Panamá Maritime Authority has confirmed it will issue a resolution today for MPSA to resume concentrate loading operations at the Punta Rincón port. Loading operations were halted back in January with FQM saying the reason was tied to allegations its scale was improperly calibrated. Soon after this, First Quantum halted ore processing operations, saying the action was a result of the Panamá Maritime Authority’s refusal to permit copper concentrate loading operations at the mine’s port, Punta Rincón, in accordance. Ore processing is expected to resume and restore the mine to full production levels over the next several days.

The two companies have been engaged in a long-running contract dispute that hinges on disagreements over tax rates and royalties at the Cobre Panama mine.

The proposed contract will include the following principal economic terms once it takes effect:

  • Payment by MPSA of $375 million plus an additional $20 million to cover taxes and royalties up to the year-end 2022
  • Payment by MPSA starting in 2023 of an annual minimum contribution of $375 million in government income, comprised of corporate taxes, withholding taxes and a profit-based mineral royalty of 12 to 16 percent, with downside protections;
  • Downside protections to the annual minimum contribution under the following conditions:
    • Until the end of 2025, copper price below $3.25 per pound; and
    • From 2026 and beyond, a total tax contribution for that year of less than $300 million.
  • Applicable royalty rate (the operating margin and the effective royalty rate) at various operating margins as shown below:
    • 0-20% – 12%
    • >20-30% – 13%
    • >30-40% – 14%
    • >40-50% – 15%
    • > 50 – 16%
  • Application of the general regime of income tax, including deductions for depletion, and withholding taxes in Panamá.

Tristan Pascall, Chief Executive Officer, said: “After a lengthy and arduous negotiation process, the finalised Proposed Concession Contract outlines the basis for the future of Cobre Panamá for all stakeholders, including the government, our investors and the country of Panamá. I am pleased that we now have a pathway to continuing our ongoing substantial investments in the country. I wish to thank our Panamanian and international employees and their families and our suppliers for their patience and resilience during this time. We now await formal approval of the Proposed Concession Contract and look forward to a long and constructive partnership with the Government of Panamá for many years to come.”

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

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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.”

Perenti secures largest ever Australia surface mining contract at KCGM’s Fimiston mine

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Perenti Limited says its Ausdrill subsidiary has been awarded a new surface miningcontract at the Northern Star Resources-owned Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston open-pit gold mine in Kalgoorlie, Western Australia.

The new circa-A$160 million ($110 million), 60-month contract incorporates activities that commenced March 1, 2022, and will continue to March 2027.

Ausdrill has been contracted to provide up to 14 production blasthole drill rigs to support ongoing operations.

Given the scale and quality of its existing Ausdrill fleet, Perenti does not expect any new capital outlay to support this contract, it said.

Mark Norwell, Managing Director & CEO of Perenti, said “We continue to remain focused on supporting the families, friends, and colleagues of Trevor and Dylan following the tragic incident at the MMG-owned and Barminco-operated, Dugald River mine in Queensland last week. However, over the weekend Ausdrill executed a material contract and in-line with our disclosure obligations, we are providing the market with an update.

“We have secured our largest ever surface contract in Australia, which continues our relationship at one of Ausdrill’s first ever projects. We are very proud to be part of Kalgoorlie’s history and we look forward to continuing to deliver certainty and value for Northern Star, our employees and business partners.”

He added: “Since the release of our operational update on 19 December 2022, we have continued to deliver on our strategic objectives and while we have seen some strengthening of the Australian dollar relative to the US dollar, we have seen overall margin improvement and continued to win or extend existing contracts, positively resolve commercial negotiations and further simplify our business. Market conditions continue to remain favourable into the second half of financial year 2023 in support of further delivery against our 2025 strategy. We look forward to providing additional details when we release our first half 2023 results tomorrow.”

Paul Muller, President Contract Mining at Perenti, said “Ausdrill began with two drill rigs in 1987 at the Fimiston mine. Since then, Ausdrill has continued to expand its services to include blast hole and grade control drilling, utilising a fleet of drill rigs specifically designed and manufactured (in-house) to meet the unique specifications required by the Fimiston open-pit mine.

“We look forward to continuing to provide our value-add expertise to the KCGM operations while extending our long-standing relationship with our local and regional stakeholders.”