Tag Archives: Martin Horgan

Centamin to reestablish Sukari as tier one asset with new life of mine plan

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A new life of mine plan for the Sukari gold mine in Egypt will deliver long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions, according to owner Centamin.

The company announced the new plan today, flagging average gold production from Sukari of 506,000 oz/y for the next nine years (2024-2032); and 475,000 oz/y for life of mine (2024–2034), reflecting a 5% increase in life of mine gold production compared to 2022 (441,000 oz).

The main contributors to this increase was an improved open-pit schedule, which included a 40% improvement to the life of mine strip ratio (6.5 times) compared to full year 2022 (10.8 times); an increased underground schedule, including a 75% increase in average life of mine ore mining rates (1.4 Mt/y) compared to FY22 (800,000 t); and the integration of a gold gravity circuit to the processing plant, driving a 2% increase in life of mine gold recoveries (89.8%) compared to FY22 (88.2%).

When it comes to the cost and emissions outlook, Centamin flagged connection to the Egyptian national grid, which would deliver an estimated $41 million of annual cost savings based on current diesel prices. The company also flagged the potential for increasing the capacity of its existing solar power plant, going from the existing 30 MW to 45-50 MW.

The optimisation of the open pit involves several parts – the aforementioned strip ratio changes, deferred processing of stockpiles and an optimised fleet strategy. The latter will see Centamin purchase an additional five trucks in 2024 to support the life of mine plan, at an approximate cost of $13 million taking the Sukari fleet capacity from some 90 Mt/y to 110 Mt/y.

The gold gravity circuit, meanwhile, will be added to the processing facility to improve the recovery of the coarse gold found in the higher grade ore from both the underground and open pit. Construction of this is expected to be completed in the first half of 2025 for an estimated capital cost of up to $20 million.

Centamin also mentioned further upside opportunities to this life of mine plan, including an expansion of dump leach operations, further open pit and plant optimisation, and resource and reserve growth.

Martin Horgan, CEO, said: “Today’s new life of mine plan firmly reestablishes Sukari as a global tier one gold asset, with long-term production above 500,000 oz per annum at all-in sustaining costs below $1,000/oz, underscoring our dedication to maximising free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement.

“This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”

Centamin’s Sukari solar power plant performing ahead of expectations

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Centamin says the solar plant at its Sukari gold mine, in Egypt, has entered the final stages of commissioning and is delivering savings ahead of expectations.

Furthermore, it says continued progress has been made to assess the opportunity to use Egyptian grid power at Sukari.

The solar plant, which is made up of a 36 MW solar farm and 7.5 MW battery–energy storage system, has been consistently delivering 36 MW DC, converting to 30 MW AC of power, since early September, the company said. This reduction in exposure to volatile fuel pricing with commissioning is saving the company up to 70,000 litres per day of diesel and averaging a reduction in diesel consumption of 22 million litres per year, according to Centamin.

Based on current diesel prices, this means the plant has the potential to provide annual cost savings of $20 million, alongside an expected reduction in Scope 1 greenhouse gas (GHG) emissions of 60,000 t/y CO2 equivalent and a subsequent reduction in volume of diesel trucked to site.

Full commissioning of the solar plant is expected this quarter, the company added.

Centamin previously awarded the engineering, procurement and construction contracts for the 36 MW solar farm and 7.5 MW battery–energy storage system at Sukari to juwi AG and Giza Systems. juwi was contracted to design, supply and integrate the Sukari solar and battery plant into the current diesel power plant, while Giza Systems was contracted to install the Sukari solar plant. To maximise the total energy generation, the project is using bifacial solar photovoltaic modules and single axis tracking. juwi Hybrid IQ microgrid technology will enable the integration of the solar and battery system into the existing off–grid network and support the operation of the existing power station, according to the company.

On top of the solar plant news, Centamin revealed it is actively engaged with government and independent power providers to further reduce its reliance on diesel at Sukari. Its initial proposals to supply 30–50 MW AC of grid power to Sukari have been received and an internal evaluation is underway for potential integration from 2024, it said.

Fifty megawatts of AC grid power supply creates the potential to fully displace the use of diesel for power generation at Sukari, Centamin said. The minimum 30 MW AC of grid power, combined with the existing 30 MW AC of solar power, creates the potential to operate during daylight hours without using any diesel power generation and substantially offsetting diesel consumption during night time hours, it said.

The Egyptian grid power is generated from natural gas and a mix of renewables, such as hydro, solar and wind, creating the opportunity to further reduce Sukari’s GHG emissions. Further, the Egyptian industrial grid tariffs are significantly cheaper than the cost of power
generation using diesel fuel, Centamin said.

Martin Horgan, CEO of Centamin, said: “Delivery of this critical project is instrumental to our ongoing commitment to reduce our reliance on diesel fuel, minimise greenhouse gas emissions and realising material cost savings. The solar plant and potential to integrate grid power will contribute materially to our environmental stewardship philosophy and our strategic objective of maximising returns for all stakeholders.”

Centamin looks for partial diesel displacement with Cat DGB LNG trial

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Centamin is to trial Caterpillar’s Dynamic Gas Blending (DGB) technology at its Sukari gold mine in Egypt as part of a plan to reduce greenhouse gas emissions and lower costs.

The mine will trial the technology on three or four its haul trucks next year, Centamin CEO, Martin Horgan, told attendees at its capital markets webcast today.

The DGB conversion kits, available on Cat 785C and 793D haul trucks, are a dual-fuel technology that enables miners to substitute diesel fuel with LNG, according to Cat. The use of LNG has been proven to reduce emissions by up to 30%, as well as lower costs by up to 30%, Cat says.

Just last week, Gold Fields’ CEO Nick Holland told a panel at IMARC Online that the company would trial DGB technology on four of its haul trucks at its Tarkwa gold mine in Ghana.

While the use of DGB technology will partially displace Centamin’s use of diesel fuel with LNG, the company said it was also working on “full displacement” with LNG as part of its efforts to reduce greenhouse gas emissions.

The company has already committed to delivering a Stage 1 30 MW solar plant at Sukari, expected to replace 18–20 million litres of diesel consumption per year through operation during daylight hours.

In other areas of technology development, Centamin said it would soon be adding new Cat 6040 hydraulic face shovels to its existing fleet at Sukari, it had four “lightweight truck trays” currently operating at the mine, and it was trialling Metso Outotec Poly-Met mill liners on ball mills in its processing plant.

Capital to take on open-pit waste mining at Centamin’s Sukari gold mine

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Capital Limited has entered a conditional open-pit waste mining services contract with Sukari Gold Mines and has also expanded and extended its existing drilling contract with Sukari.

Sukari is the operating company for the Sukari gold mine, in Egypt, one of the largest gold mines in Africa and the principal asset of Centamin.

Collectively, the contracts are anticipated to deliver incremental revenues of $235-260 million over a four-year period, commencing January 1, 2021, representing the largest award of new business in the company’s history.

The 120 Mt open-pit waste mining contract at Sukari will see Capital provide load and haul and ancillary services over a period of four years. At the same time, the existing drilling contract at Sukari has been extended to December 31, 2024 (from September 30, 2023) and expanded by nine additional blasthole rigs, bringing the rigs operating at Sukari to 24 in total.

To date, Capital has spent $23.4 million towards equipment and has made strong progress with early works, key personnel hiring and advanced operational planning, it said. It has also signed an OEM facility with Sandvik for $8.5 million and an OEM facility with Epiroc is awaiting final credit approval with documentation in near final form.

Jamie Boyton, Executive Chairman, said: “The winning of the tender for the Sukari open-pit waste mining contract is a significant milestone for Capital – it is the largest contract win for the group since inception, adds substantial scale to our mining services division, as well as providing revenue diversification from our drilling services business.

“We are also pleased to have increased the scope and scale of our existing drilling contract. Having operated at the Sukari mine since 2005, which started commercial gold production over a decade ago, Capital is pleased to be deepening further its strong client relationship with Centamin in assisting with the generation of significant value to Centamin over the medium and longer term as the Sukari mine enters its next phase of gold production.”

Martin Horgan, CEO of Centamin, said: “With the focus on improving operational flexibility at Sukari, introducing contract mining over the next few years for waste stripping in the open pit is cost and time effective. Following a rigorous tender process, Capital was determined to be the best suited to deliver what is needed.

“Capital is a trusted contractor to the company, with a strong understanding of Sukari and the operating environment, including the employment of local workforce and established training programs, consistent with Centamin’s approach to local workforce development.”

As part of this increased open-pit waste stripping program, Centamin continues to use its existing owner operator fleet, which has capacity of 80-90 Mt/y total material moved (ore and waste). The company said it conducted an independent contract mining tender process to assess incremental contract waste stripping costs, and capacity, against the cost to expand the current owner-operator mining fleet.

Centamin added: “It was concluded that the optimal integration of contract mining was to isolate the waste stripping workstream on the East wall of the open pit, thereby limiting the day-to-day interaction with the operations and simplifying operational oversight and planning from a health, safety and logistical standpoint. The East wall waste stripping program will move material to a dedicated waste dump.”