Tag Archives: Newcrest Mining

K2fly’s RCubed hits new heights with Newcrest Mining SaaS agreement

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K2fly says it has signed an agreement with Newcrest Mining to implement its RCubed resource governance software as a service (SaaS) solution.

The agreement covers the rollout of the RCubed software solution across the reporting lines of Newcrest for its resources and reserves in its global gold operations across seven sites in Australia, Indonesia and Papua New Guinea.

The deal follows closely on the heels of K2fly signing a similar SaaS pact with Glencore Canada. It is also less than six months since K2fly acquired the RCubed software through the acquisition of Prodmark Pty Ltd.

RCubed software generates resource and reserve reports that support reporting codes such as JORC, NI-43-101 and SAMREC across the major stock exchanges – including NYSE, LSE, TSX, ASX and JSE. It assists mining and resource companies in complying with their regulatory reporting obligations.

This is a three-year SaaS based software contract and, with implementation costs, is worth more than A$150,000 ($100,145) in the first year, according to K2fly. Implementation is to commence immediately, and there will be recurring revenues on an annual basis. The initial total contract value is over A$330,000, K2fly said.

As with all RCubed implementations, each operation and all relevant data is captured at a base level and involves comprehensive governance data capture and reporting, the company said.

Nic Pollock, K2fly Chief Commercial Officer, said: “Newcrest is the largest gold producer listed on the ASX and a top 10 global producer and adds to the growing momentum we are seeing within the mining industry and its acceptance of RCubed as a resource governance reporting solution.”

Newcrest, Epiroc and Volvo weigh up new underground mining system

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Newcrest Mining, in collaboration with Epiroc and Volvo, is working on a potential new system of mining to improve the safety and efficiency of underground load and haul involving the use of a Häggloader, haul truck and LHD.

The proof of concept trial with Newcrest Mining has already seen testing in Sweden at the Epiroc Kvarntorp mine and at SweRock’s Atle quarry, which saw Newcrest, Epiroc and Volvo contributing equipment and personnel, Epiroc said. This saw an Epiroc Häggloader and Scooptram ST18 interact with a Volvo truck.

Tony Sprague, Group Manager Technology & Innovation, Newcrest Mining, Australia, said: “As mines are getting deeper, and with escalating energy and haulage costs, mining companies must be constantly on the lookout for better ways to work.

“The goal with this proof of concept trial was about setting a baseline on what can be achieved with Häggloader, Volvo trucks and Scooptram ST18.”

The team came together to observe the Häggloader, Volvo trucks and Scooptram ST18 in action both underground (Kvarntorp) and on surface (Atle). Data was collected and improvements were identified by the team, according to Epiroc.

Sprague continued: “We will now move onto the next phase which involves working with Epiroc and Volvo to progress the system to higher productivities and efficiencies.

“Newcrest is setting a rapid pace of technology and innovation change to improve our mining operations. Without the collaborative support from our selected partners, we will not move fast enough, or be as successful. And we select our partners based on their attitude and culture towards innovation. In Epiroc and Volvo, both two great Swedish success stories, we see like-minded companies willing to work together to achieve great outcomes for our people, companies and the environment.”

He concluded: “We are looking for win-win outcomes where all parties involved stand to gain – that’s the best way to drive effective collaborations. With the Häggloader, Epiroc has a unique system of loading that has not been widely utilised into the global mining industry, and Newcrest is keen to help change this.”

Telstra LTE solution improving communications at Newcrest’s Lihir gold mine

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Telstra Mining Services says it has implemented Papua New Guinea’s first private 4G LTE (Long-Term Evolution) mobile network at Newcrest’s Lihir gold mine.

The next generation wireless communications platform will allow for greater levels of safety, remote operation and automation, according to Telstra, which worked with Newcrest to provide design, staging, site deployment and testing of the network.

Every kind of production vehicle asset, including trucks, drills, excavators, dozers, shovels and barges have now been connected and operationally proven over LTE. This process has revealed significant performance improvements in terms of reliability, speed and latency, according to Telstra. “The network has been able to resolve challenges with existing Wi-Fi connectivity and is making Newcrest’s safety and productivity systems more effective,” Telstra said, adding that fleet efficiency and real-time visibility have benefited from an 80% improvement in communications reliability on LTE-enabled assets.

The gold deposit at Lihir is within the Luise Caldera, an extinct volcanic crater that is geothermally active, and is one of the largest known gold deposits in the world, according to Newcrest. Most of the ore is refractory and is treated using pressure oxidation before the gold is recovered by a conventional leach process.

In the financial year ending June 30, 2018, Lihir produced 955,156 oz of gold. Since production commenced in 1997, the site has produced more than 10 Moz of the yellow metal.

Dr Jeannette McGill, Head of Telstra Mining Services, said Newcrest’s decision to invest in Private LTE technology further validates it as a dependable and scalable networking platform for the mining industry and one that enables mining houses to digitally transform.

“We’ve provided Newcrest with a tailored platform that will underpin its safety and digital mining ambitions and will help improve productivity and deliver new value and efficiencies to the business,” she said. “They’ll be using it to further modernise the mine site to enable the use of current and future mining applications, including tele-remote and autonomous systems, more extensively.”

The platform is completely independent from public mobile networks, according to Telstra, with Newcrest having been provided with its own dual-frequency base stations, LTE core and SIM cards, with the network’s configuration and coverage designed and implemented to meet the Lihir mine’s safety strategy and long-term mine plan.

Telstra Mining Services’ solution also includes ‘HetNet’ functionality that allows the Newcrest vehicle fleet to seamlessly switch between LTE and existing Wi-Fi networks without impacting critical mining applications.

Newcrest complemented the LTE technology solution by implementing new towers, data centres and redundant power systems across the site, according to Telstra.

McGill added: “Newcrest and Telstra Mining Services took what has become a best-in-class preliminary deployment approach with the network. Designing it for full production but initially deploying at two sites allowed Newcrest to validate the design principles, implementation techniques and practical capabilities of LTE before scaling their investment.”

Newcrest’s pragmatic approach, combined with flexibilities in the solution from Telstra Mining Services, enabled the desired outcomes and learning to be achieved within a relatively short timeframe, despite the remoteness of the Lihir operation, according to Telstra. Future phases of the project will further enhance coverage in-line with Lihir’s 20-year mine plan, and provide for expansion of coverage and capacity across the mine, processing plant, port and camp.

Chris Jordaan, General Manager, Newcrest Lihir, said: “The Lihir mine extends 300 m into a volcanic crater and our workers can often be exposed to elevated temperatures. Tele-remote and autonomous mining technologies are fundamental to working the hot work areas that will become more dominant features of our operation in the future.

“The Private LTE network will be a great enabler for these technologies and, coupled with the existing in-pit Wi-Fi network, we have been able to create a heterogeneous network that covers the whole mining lease.”

Gavin Wood, Chief Information & Digital Officer at Newcrest, said: “Safety is Newcrest’s number-one priority and the network Telstra Mining Services has built with us at Lihir will enable safer and more efficient mining using new technologies. The success of this project was 100% driven by leadership and personal commitment of the Lihir’s OT/IT team working together with Telstra Mining Services.”

LTE is a future-ready platform for wireless communications in mining, providing dependable and scalable communications that the next generation of machines, systems and workforce applications will require. Having been proven in carrier networks, it’s now seen as the mining industry’s next step for connectivity.

Newcrest to apply ‘unique technical capabilities’ to copper-gold mine in BC, Canada

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Newcrest Mining has entered into an agreement to acquire a 70% joint venture interest in Imperial Metals’ Red Chris copper-gold mine and surrounding tenements in British Columbia, Canada, for $806.5 million.

The deal will see Newcrest become Red Chris operator, in charge of deciding how to exploit the copper-gold porphyry open-pit mine.

Newcrest said the acquisition of Red Chris was “a measured entry” into North America and aligned with its stated strategic goals of building a global portfolio of Tier 1 orebodies where Newcrest can “deliver value through application of its unique operating capabilities”.

Red Chris comes with a mineral resource of 20 Moz of gold and 5.9 Mt of copper. The acquired property comprises 23,142 ha of land with 77 mineral tenures, five of which are mining leases, and sits within the traditional territory of the Tahltan Nation.

Newcrest Managing Director and CEO, Sandeep Biswas, said: “We are delighted to add this asset into the Newcrest portfolio. Following due diligence, we believe we can bring our unique technical capabilities to unlock the full value potential of this orebody in one of the premier gold districts in the world.

“We have identified a clear pathway to potentially turn this orebody into a Tier 1 operation. The geology of Red Chris is similar to our Cadia orebodies in Australia and we will be applying our considerable experience in exploration, open-pit mining, caving and processing to maximise the value of Red Chris and the opportunities in the surrounding region. We look at this opportunity in the same way as we do with Cadia, where we have proven we can create significant value from deep underground porphyry orebodies.”

Following the intensive due diligence process Biswas mentioned, Newcrest said it has a two-stage plan to deliver value from the acquisition:

Stage one will see the company apply its “Edge transformation approach” to the existing Red Chris open-pit mine and processing plant.

“Newcrest believes it can add significant value to Red Chris by applying the same Edge mind-set and approach that has led to significant operating improvements across all Newcrest operations over the last five years,” the company said.

Examples of where successful changes have been implemented to safely accelerate cash maximisation include process plant optimisation (debottlenecking, recovery uplifts, process control, improving concentrate quality), mine optimisation (improving orebody knowledge, grade control, fleet management system, mine planning) and supply chain cost reduction, according to Newcrest.

As part of this stage, Newcrest said it will initiate an extensional drilling programme.

“Newcrest intends to optimise the current open-pit mine plan and pursue initiatives to improve operational productivities and milling recoveries,” Newcrest said.

The current open-pit mine has an existing 11 Mt/y processing plant and associated infrastructure which allows ‘brownfield’ expansion options in the future, it added.

Stage 2 will see the company apply “industry leading technology”.

The company said: “Newcrest believes it can add significant shareholder value by applying technology to Red Chris that it has successfully applied at its other operations.”

Examples include block caving – “Newcrest believes the orebody has the potential to become a high margin bulk underground block cave. Newcrest will accelerate the necessary drilling and studies. Newcrest intends to conduct studies and review the ore reserve of the Red Chris operation to allow for reporting in accordance with JORC 2012 to take into account the potential transition to a future block cave operation.”

Coarse ore flotation could also be considered, the company said.

“Having demonstrated the recovery benefits of coarse ore flotation at Cadia, Newcrest will look to apply this technology to Red Chris,” Newcrest said.

And, then there is the application of one of the most popular technologies today: ore sensing and sorting, of which Newcrest said: “Positive results from trials underway at Telfer may lead to this technology being deployed at Red Chris.”

In terms of exploration, Newcrest said it would apply its experience in deep underground brownfield and greenfield exploration on the existing orebody and the broader land package to potential uncover more tonnes of copper and ounces of gold.

“Newcrest has identified opportunities to expand Red Chris’s mineral resources along strike and at depth in areas where there has been limited deep drilling to date. Historical shallow drilling indicates that there is also potential for further deep discoveries to be made in the larger tenement package.

“Newcrest will be targeting prospective regions beyond the current mine looking for further porphyry centres including small footprint, higher-grade gold-rich porphyry systems leveraging knowledge gained from Cadia which has similar geological features,” Newcrest said.

Red Chris, on the northern edge of the Skeena Mountains, commenced construction in 2012 and was completed in November 2014 for a total cost of C$661 million ($492 million). Commercial production commenced in July 2015 and, in the first nine month of 2018, the mine produced 20,320 t of copper and 29,569 oz of gold.

Major miners join Mining3 and SMI for Cave Mining 2040

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Mining3 and the University of Queensland’s Sustainable Minerals Institute (SMI) have joined forces with Newcrest Mining, Vale, OZ Minerals, BHP and PT Merdeka Copper Gold to develop the Cave Mining 2040 initiative.

Cave Mining 2040 was originally proposed by Professor Gideon Chitombo (SMI) whose clear understanding of caving needs and his strong engagement with the mining industry was key to its successful formation, according to Mining3.

The international consortium will collaborate on projects aimed at developing new and improved cave mining methods that could help meet future demand for minerals, the company added.

Mining3’s CEO Paul Lever said: “Involving researchers, industry and government will accelerate the required innovations and information to transform cave mining, ensuring its longevity through viable and sustainable methods.”

Cave Mining 2040 aims to develop solutions to reduce lead times and capital investment while also improving viability, safety, cost, production, and societal and environmental acceptance, according to Mining 3.

SMI Director, Professor Neville Plint, said the agreement was important because it brings together two Queensland-based, world-class research organisations. “We are working collaboratively with industry to unlock complex orebodies that occur at depth and require advancements in cave mining technologies,” he said.

“We look forward to developing further partnerships to enhance Queensland’s and Australia’s reputation as a leader in research, technology and innovation.”

After initial consultation with established and future mine owners, mining equipment and technology services, original equipment manufacturers, and a range of other organisations a number of cave mining challenges have been identified.

The first phase of Cave Mining 2040, Horizon 1, is now underway comprising eight research areas – total deposit knowledge, cave engineering, cave establishment, mine design for new and emerging technologies, high stresses and major seismicity, macro-block design and sequencing optimisation, sublevel caving and open automation platform.

Cave Mining 2040 is a cornerstone activity within the Transforming Cave Mining initiative – a partnership between Mining3 and the SMI.

Jacobs to handle underground materials work for Cadia expansion study

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Jacobs has been awarded a contract by Newcrest Mining to provide underground materials handling services as part of the expansion feasibility study at Cadia, one of Australia’s largest gold mining operations.

This contract award builds on Jacobs mining and minerals business’ long history of working with Newcrest across the company’s Cadia Valley operations in New South Wales, Jacobs said.

Jacobs Mining, Minerals and Technology Senior Vice President, Andrew Berryman, said: “During the previous study phase, our mining and minerals experts helped identify a low capital intensity solution as part of an integrated team. By embracing an owners’ mindset and applying our experience in underground mining, materials handling and expansion projects, our integrated approach has the potential to deliver an impressive return on capital for Newcrest.”

The prefeasibility study on an expansion at Cadia envisaged the plant and underground materials handling upgrade costing A$58 million ($41 million). This was part of a bigger A$598 million project to incrementally increase throughput from the base case of 30 Mt/y to 33 Mt/y. Newcrest said that options to further debottleneck to 35 Mt/y would be assessed during the feasibility study.

Robotics and automation projects among latest METS Ignited funding recipients

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Australia’s Minister for Industry, Science and Technology, Karen Andrews, has announced seven mining supply businesses as the recipients of A$4.1 million ($2.9 million) in innovation funding under the METS Ignited Collaborative Project Funds.

The recipients of the funding will now be able to launch eight collaborative industry projects delivering highly-advanced solutions to a variety of mining challenges and contribute to the growth and capability of the METS sector, according to METS Ignited.

This funding is part of a four-year, A$15.6 million commitment made by the Australian Government to incentivise collaboration and address METS sector priorities. The funding established the METS Ignited Collaborative Project Funds, which support industry-led projects to improve the productivity, competitiveness and innovative capacity in the METS sector.

Today’s announcement at Mineral Technologies, on the Gold Coast of Australia, is the third tranche of funding. METS Ignited received 26 grant applications and has awarded the funds to businesses specialising largely in robotics and automation, data analytics, data platforms, Internet of Things and business and professional services. The recipients are: Mineral Technologies, Premron, Austmine, Roobuck, Process IQ, AMOG (x2) and Magotteaux.

Acting CEO of METS Ignited, Ian Dover, said: “Active collaboration across the ecosystem is core to accelerating commercialisation of innovation and has been lacking in the METS and mining sector, where historically relationships have been in the main transactional.”

“Facilitating such innovation is part of the mandate for METS Ignited. It’s vital we support the application of influential future technologies across the METS sector and maintain Australia’s competitiveness.”

Recipients of the Collaborative Project Funds are required to secure equal or greater investment from an industry partner. As a result, the total value of the eight projects is A$11 million.

The largest fund recipients were Queensland-based Mineral Technologies and Premron, awarded A$1 million each. Mineral Technologies’ automation of the Roy Hill Iron Ore beneficiation plant project automates the gravity separation spiral process used in the mine to optimise the concentration of lower-grade ore into higher value ore for export, METS Ignited said.

Roy Hill CEO, Barry Fitzgerald, said: “I am delighted the government is supporting our partnership with Mineral Technologies – a project that seeks to enhance the operational efficiency of our mine, delivering more high-grade product while reducing waste for the same operational cost.”

The automation of spiral control in the Roy Hill beneficiation plant will materially improve the concentration of ore into high value product for export, according to Roy Hill. More high-grade product and less waste will be produced for the same feed and processing cost, delivering value to both the environment and Roy Hill’s bottom line, the company said. Once proven effective at Roy Hill, the technology can be commercialised and rolled out at similar operations across the world.

“This innovation project will deliver a step-change improvement through real time control of our 720 spirals, enabling our processing plant to dynamically respond to the natural variability of the material it is treating,” Fitzgerald said.

Premron’s Continuous Haulage System (CHS) project, meanwhile, will revolutionise coal mining in underground mines, according to METS Ignited. It eliminates the use of shuttle cars, used to take the coal cut from the wall of the mine to a transfer point further away in the mine (dead time). CHS will see the coal go straight to a conveyor belt and out of the mine.

Other projects that received funding in this round include: sensor technology to monitor the location of people and equipment underground; artificial intelligence technology to emulate the role of a grinding expert; automated sensor detection for oversized rocks; a predictive analytics tool that pinpoints the best time for equipment descaling; a METS career pathway programme; and a device to give more detailed information on the chemistry inside the grinding mill while it is operating.

METS Ignited said: “Collectively, the projects will benefit the mining sector by optimising the value chain, increasing productivity for mining and mineral processing, supporting and enhancing environmental management, and improving operational safety.”

The project fund recipients include:

Automation of the Roy Hill Iron Ore beneficiation plant

  • Recipient: Mineral Technologies
  • Partners: Roy Hill
  • Collaborative project funds: A$1 million
  • Industry investment: A$1 million
  • This project automates the gravity separation spiral process used in the mine to optimise the concentration of lower-grade ore into higher value ore for export.

CHS

  • Recipient: Premron
  • Partners: Gauley Robertson Australia, Kestrel coal mine
  • Collaborative project funds: A$1 million
  • Industry investment: A$1.13 million
  • Continuous haulage will revolutionise coal mining in underground mines. It eliminates the use of shuttle cars, which are used to take the coal cut from the wall of the mine to a transfer point further away in the mine. CHS will see the coal go straight onto a conveyor belt and out of the mine.

Austmine METS career Pathway Program

  • Recipient: Austmine
  • Collaborative Project Funds: A$240,000
  • Industry investment: A$1.76 million
  • This project places university students as interns in METS companies around Australia, increasing the interest level and uptake of graduates into the METS sector

The OVERwatch Platform

  • Recipient: Roobuck
  • Partners: Redpine Signals, Northparkes Mines, University of Wollongong
  • Collaborative project funds: A$600,000
  • Industry investment: A$1.5 million
  • This project develops sensors and software to track the location of people and machinery working in underground mines and ensure that collisions are avoided. This is a complex project as there is limited communication options underground (eg no Wi-Fi).

Remote grinding optimisation and support centre

  • Recipient: ProcessIQ
  • Partners: Orway Mineral Consultants, Jamieson Consulting, Curtin University
  • Collaborative Project Funds: A$620,000
  • Industry investment: A$780,000
  • This project enables grinding experts to interact directly and in real time with grinding circuits on remote mine sites to ensure they are operating at their most productive levels. The project will develop automated artificial intelligence software to emulate the experts as there is very limited supply of this specialist expertise, leading to increased processing efficiency globally.

Automated Oversize Detection

  • Recipient: AMOG
  • Partners: Omniflex
  • Collaborative Project Funds: A$150,000
  • Industry investment: A$220,000
  • This project involves developing sensor equipment that alerts the mine when rocks are too big to process through the crushing and grinding equipment. Blockages in the crushing and grinding circuits are costly and time consuming. Haulage trucks with oversized rocks will be diverted to a separate location in the mine, which avoids stoppages.

Smooth Operator leach circuit process optimisation

  • Recipient: AMOG
  • Partners: Lithium Consultants
  • Collaborative Project Funds: A$220,000
  • Industry investment: A$220,000
  • This project involves developing a predictive analytics tool that allows copper and nickel mines to pinpoint when they should close equipment for descaling. Closing equipment too late or early is very costly. There is a very large global market for this product.

Commercialisation of pulp chemistry monitor for the mining industry

  • Recipient: Magotteaux
  • Partners: Hydrix, Manta Controls, Newcrest Mining
  • Collaborative Project Funds: A$250,000
  • Industry investment: A$310,000
  • This project involves developing a device to give more detailed information on the chemistry inside the grinding mill while it is operating. Grinding and flotation circuits use many chemical inputs in order to extract minerals from the ore. Getting the chemical balance right in the mill and the next stage of floatation is critical to removing as much of the valuable mineral as possible. The percentages of the yield vary between 85% and 95% and a 1% improvement in yield will deliver a very large financial benefit to the mine.

Newcrest looks to University of Queensland to help achieve sustainable mining goals

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The University of Queensland (UQ) and leading gold miner Newcrest Mining have agreed a new initiative providing funding for eight new PhD research projects at the institution.

The aim is to develop interconnected and systems-based solutions to transform the sustainability performance of mining operations, UQ said.

The opportunities will be targeted at high-calibre graduates from a range of disciplines including mining, chemical and civil engineering, as well as business and social science areas.

UQ Pro-Vice-Chancellor for Research Partnerships, Professor Mohan Krishnamoorthy (pictured on the left), said: “The alliance with Newcrest represents a strategic opportunity to co-develop the cutting-edge innovation necessary for a sustainable mining future.”

Newcrest Mining Head of Technology and Innovation, and UQ alumnus, Andrew Logan, said research into complex mining challenges was essential to sustainably produce the minerals needed for modern living.

“Newcrest relies on innovation to unlock complex orebodies and academic research, with practical outcomes, provides industry with the necessary understanding for sustainable and safe mineral development,” he said.

The students will be supported for four years by both organisations and work on inter-related projects focused on specifically identified mining challenges.

UQ staff from the Sustainable Minerals Institute and other faculties will work with Newcrest to support the group through additional development activities. As part of the funding arrangements Newcrest will offer competitive top-up scholarships and provide opportunities for on-the-ground experience in Newcrest operations and corporate offices.

This funding announcement is part of a five-year partnership agreement signed between UQ and Newcrest Mining in August.

Newcrest looks for real-time productivity improvements with Interlate partnership

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Interlate has partnered up with Newcrest Mining to provide expert decision support and near real-time productivity improvement services to the mining company’s operations in Australia and Papua New Guinea, the Australia-based service provider said.

The company’s productivity improvement service combines mining expertise, data science and Internet of Things-based technology. Interlate operates from its Operations Intelligence Centre in Brisbane, Australia.

Craig Jetson, Executive General Manager Lihir (PNG) and Cadia (Australia), said: “We are pleased to announce our partnership with Interlate to deliver their near real-time monitoring solution for our operations. Remote support that leverages advanced data analytics is a key part of our operational improvement strategy — Interlate’s SentinelTM service is the solution we were looking for, enabling those improvements to be sustained in the future.”

Jetson explained that the ability to rapidly identify significant value-adding initiatives was one of the reasons it signed an agreement with Interlate. “Given their experience in remote monitoring, their solution provides us a ‘safe on-ramp’ into this space, without closing the door on developing our own capabilities in this area internally in the future.”

David Meldrum, CEO of Interlate, said: “Working together, Newcrest and Interlate have already discovered significant productivity improvement opportunities in Newcrest’s operations, which could contribute millions of dollars in profit each year. This value will steadily increase as Newcrest realises further gains from the real-time productivity improvement services.”

In October, Interlate and Siemens signed a memorandum of understanding to help deliver productivity gains for the mining industry, by better leveraging data across the entire mining value chain.

Interlate says its Sentinel solutions plug into a SCADA system and pulls time-critical data into a Data Assimilation Node (DAN) sitting onsite. This DAN streams the data back to Interlate and its data centre.

In the data centre, Interlate conditions the information, display it so it makes sense and has a productivity supervisor monitor it. This supervisor has audio visual collaboration tools, which are connected to the supervisor on site so that both can communicate in real time about what they are seeing.

Wafi-Golpu Memorandum of Understanding signed

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Harmony Gold Mining Co and its Wafi-Golpu joint venture (WGJV) partner Newcrest Mining have signed a Memorandum of Understanding (MOU) with the Independent State of Papua New Guinea.

The MOU is an affirmation of the parties’ intent to proceed with the Wafi-Golpu project, subject to finalisation of the permitting process and Harmony and Newcrest board approvals. It establishes the framework for the parties to progress the permitting of Wafi-Golpu as quickly as practicable in accordance with applicable regulatory processes.

The MOU provides a framework of key terms to be included in the Mining Development Contract and other related agreements with the state, including provision for stability to underpin the significant long-term investment required to develop and operate the project.

The agreement also re-affirms the intention of the parties to complete the permitting process and achieve grant of a Special Mining Lease by 30 June, 2019.

“This MOU is an important step in progressing the permitting of the Wafi-Golpu project. I wish to thank Prime Minister O’Neill and his government for the constructive manner in which they have worked with the WGJV partners and for the commitment demonstrated in advancing this important project in the best interests of the people of Papua New Guinea and shareholders,” said Peter Steenkamp, Chief Executive Officer of Harmony.

He added: “Our joint understanding of the terms and timeline that we are working towards as set out in the MOU is central to the commencement of the initial work programme. Harmony is committed to make a meaningful contribution to the social and economic development of Papua New Guinea and we look forward to continue working with the government and people of Papua New Guinea to complete the permitting process.”

As a result of entering into the MOU, the WGJV is completing approval processes to commence a substantial work programme, including the establishment of underground access for further drilling of the Golpu deposit and the construction of a bridge over the Markham River, which is an integral feature of the proposed new Northern Access road from the Highlands Highway to the mine site.

The MOU recognises that development of the Wafi-Golpu project will be of major economic significance to the people of Papua New Guinea, and encourages the development of the project in a way which will contribute to the advancement of the social and economic welfare of the people of Papua New Guinea, while also providing a viable and stable foundation for the long term development of the Project by the WGJV.

The Golpu deposit is located approximately 65 km southwest of Lae in the Morobe Province of PNG, which is the second largest city in PNG and will host the Wafi-Golpu export facilities. The proposed mine site sits at an elevation of some 200 m above sea level in moderately hilly terrain and is located near the Watut River about 30 km upstream from the confluence of the Watut and Markham rivers.

The feasibility study update was released in March 2018. Project economics set out in that demonstrate significant free cash flow generation. Once in production, the asset has the potential of being one of the lowest decile cost copper-gold producers.

The WGJV submitted an Environmental Impact Statement for the project to the relevant PNG regulatory authority, Conservation and Environment Protection Agency in June 2018. Consultation with the regulatory authority, community and other stakeholders is ongoing.

The project has mineral resources estimated to contain 26 Moz of gold, 8.8 Mt of copper and 48 Moz of silver. This includes ore reserves for the Golpu deposit estimated to contain 11 Moz of gold and 4.8 Mt of copper.

Currently, the Wafi-Golpu project includes the Golpu copper-gold porphyry deposit, the Nambonga copper-gold porphyry deposit and the Wafi high sulfidation epithermal gold deposit.

Exploration activity to date has shown that the Wafi-Golpu tenements host one of the highest grade porphyry copper systems in southeast Asia (the Golpu deposit).

The Golpu deposit is one of several porphyry ore bodies identified along the 25 km long Wafi-Transfer. Newcrest and its joint venture partner are actively exploring this highly prospective terrain for additional deposits.

The plan is to develop the Nambonga decline and twin underground access declines to access the orebody in which three block caves and associated services and infrastructure will be developed, including a portal terrace, the Watut process plant, power generation facilities, laydown areas, water treatment facilities, wastewater discharge and raw water make-up pipelines, raw water dam, sediment control structures, roads and accommodation facilities. Block caving is the proposed mining method.

The project area comprises three main areas of proposed activity:

  • Mine area – The proposed mine area is located on the northern side of the Owen Stanley Ranges of PNG, approximately 65 km from the Port of Lae, in the foothills of the Watut River catchment. The elevation of the Mine Area ranges from about 100 m above sea level (mASL) to 380 mASL. Most of the area is steep and mountainous, and is covered by dense tropical rainforest.
  • Infrastructure corridor – The proposed corridor is situated on the floodplains of the Watut and Markham rivers and includes the Mine Access Road. The proposed 32 km long Northern Access Road connects the Mine Access Road to the Highlands Highway. A concentrate pipeline extends from the Mine Area to the Coastal Area.
  • Coastal Area – This includes the proposed Port Facilities Area and the proposed Outfall Area. The proposed location of the filtration plant and associated materials handling and ship loading facility is the Port of Lae and the Outfall System comprising the mix/de-aeration tank and associated facilities is located some 6 km to the east of the port, in close proximity to the Markham River estuary on the Huon Gulf.

Harmony and Newcrest each currently own 50% of Wafi-Golpu through the WGJV. The State of PNG retains the right to purchase, at a pro rata share of accumulated exploration expenditure, up to 30% equity interest in any mineral discovery at Wafi-Golpu, at any time before the commencement of mining. If the State of PNG chooses to take-up its full 30% interest, the interest of each of Harmony and Newcrest will become 35%.